HomeMy WebLinkAboutReso 41-24 Compensation-Benefits for Confidential Employees (FY24-25 - FY26-27)RESOLUTION NO. 41-24
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AMENDING AND RESTATING THE PREVIOUSLY ADOPTED
COMPENSATION AND BENEFITS FOR THE UNREPRESENTED CONFIDENTIAL
DESIGNATED EMPLOYEES OF THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Section 36506 of the California Government Code requires the City
Council to fix the compensation of all appointive officers and employees by resolution or
ordinance; and
WHEREAS, Morro Bay Municipal Code Section 2.20.020 also provides the salaries
and compensation of officers and employees of the City of Morro Bay ("City") shall be as
fixed and determined by resolution of the City Council, except as specifically fixed in
Chapter 2.20 of the Morro Bay Municipal Code; and
WHEREAS, the City has established a system of classification for all positions within
the City service with descriptive occupational titles, used to identify and distinguish
classifications and/or positions from one another, based on job duties, essential functions,
knowledge, skills, abilities and minimum requirements; and
WHEREAS, the Meyers-Milias-Brown Act ("MMBA") (Government Code sections
3500 etseq.)' governs labor relations between local government employers and employees
and Section 3507.5 thereof permits a public agency to adopt local rules and regulations
providing for the designation of the "confidential" employees of the public agency and
restricting such employees from representing any employee organization, which
represents other employees of the public agency, on matters within the scope of
representation; and
WHEREAS, the City's Employer -Employee Relations Resolution, Resolution No. 08-
17, represents the City's adoption of local rules and regulations for the administration of
employer -employee relations, including but not limited to the designation of "confidential"
employees, defined as meaning those employees who are "privy to decisions of City
management affecting employer -employee relations;" and
WHEREAS, the City has designated such "confidential" employees as more fully
identified and listed herein below; and
WHEREAS, the "confidential" employees identified and listed herein are
"unrepresented," meaning that they are not part of any City Council -determined
appropriate bargaining unit nor represented by any recognized employee organization as
defined by the City's Employer -Employee Relations Resolution and the MMBA; and
WHEREAS, the City Council deems it is in the best interest of the City to adjust the
compensation of the unrepresented confidential employees, whose titles are listed herein,
1 Unless otherwise stated, references to Sections will be to the Government Code.
Resolution No. 41-24
Page 2 of 12
by a Cost of Living Adjustment (COLA) salary increase established by City Council for these
employees for FY 2024/2S, FY 2025/26, and FY 2026/27; and
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby
adopt this Resolution, amending and restating the previously adopted and amended
schedule of compensation and benefits for the City of Morro Bay's unrepresented
confidential employees and superseding and replacing any prior compensation and
benefits resolutions, contracts, agreements or memorandum for such employees,
including but not limited to Resolution No. 34-17 as follows:
A. POSITION LIST
The following is a list of the authorized confidential positions:
Executive Assistant/Deputy City Clerk
Fiscal Analyst
Human Resources Analyst I
Human Resources Analyst II
Senior Accounting Technician
B. NORMAL WORK HOURS
Confidential employees work eight hours per day, five days per week, consistent
with City business hours (unless participating in an alternative work schedule) and
are subject to overtime compensation.
C. COMPENSATORY TIME OFF ("CTO" J
Confidential employees may take CTO in lieu of paid overtime. CTO may be accrued
up to a maximum of sixty (60) hours. Once the maximum accrual is reached, excess
overtime is paid at the time it is incurred, until the CTO accrual balance falls below
the maximum accrual limit. CTO must be approved in advance by the employee's
Department Director.
D. ADMINISTRATIVE LEAVE
Confidential employees receive up to forty-five (4S) hours in paid administrative
leave annually in a lump sum accrual at the beginning of each fiscal year. The
administrative leave bank may never accrue more than sixty-nine (69) total hours,
limiting the number of hours credited to the employee's administrative leave bank
on July 1st of each year.
New confidential employees will be provided a pro-rata share of the annual forty-
five (45) hour accrual of administrative leave upon employment.
Administrative leave time must be taken off on an hour -for -hour basis equaling
employee actual time off, regardless of accumulation rates. Administrative leave is
a compensable leave, and any remaining hours in the employee's bank will be paid
out upon separation from City service, at the employee's current hourly rate of pay.
Resolution No. 41-24
Page 3 of 12
E. VACATION LEAVE
Confidential employees accrue vacation, based on the schedule below:
Entitlement
Service Years
in Days
1 thru 2
10
3 thru 4
11
5 thru 6
12
7 thru 8
13
9 thru 10
14
11 thru 12
15
13 thru 14
16
15 thru 16
17
17 thru 18
18
19 thru 20
19
21 or more
20
Confidential employees are subject to a maximum leave accumulation of two
hundred twenty (220) hours. Any hours exceeding the maximum accumulation as
of November 1st of each year will be paid out in the pay period including December
1st.
Confidential employees will be provided an option to convert up to 40 hours of
vacation into compensation per calendar year, subject to meeting the following
requirements, provided that at the time of the conversion request at least 20 hours
of vacation time remains in the employee's vacation bank. To be eligible for cash
out of accrued vacation leave, an employee must pre -elect the number of vacation
hours they will cash out, up to a maximum of 40 hours, by December 15 of the
preceding calendar year. The election will apply only to vacation hours accrued in
the next calendar year. The election to cash out vacation hours in each designated
year is irrevocable. Confidential employees who elect to cash out vacation leave
hours must cash out the number of accrued hours pre -designated on the
irrevocable election form provided by the City. Employees who pre -designate cash
out amounts may request a cash out at any time in the designated calendar year by
submitting a cash out request at least 30 days in advance to Human Resources.
Human Resources will confirm the cash out amount has accrued and is consistent
with the amount the employee pre -designated, then forward to payroll to complete
the cash out request. If the full amount of hours designated for cash out is not
Resolution No. 41-24
Page 4of12
available at the time of cash out request, the maximum available will be paid.
For Confidential employees who have not requested payment of the elected cash
out amount by November 1 of each year, payroll will automatically cash out the pre -
designated amount in a paycheck issued on or after the payroll date including
November 1. Additionally, the City may, prior to the end of the calendar year,
automatically cash out the vacation leave accrued each pay period by an employee
such that the vacation leave cash out is consistent with the employee's pre -elected
number of vacation leave cash out hours for that year.
Employees who do not pre -designate vacation leave cash out hours or who decline
the cash opt option by the December 15 deadline will be deemed to have waived
the right and will not be eligible to cash out any vacation leave in that year.
Vacation accrual is a compensable leave; any hours remaining in the employee's
vacation bank will be paid out upon separation from City service, at the employee's
current hourly rate of pay.
Vacation leave time must be taken off on an hour -for -hour basis equaling employee
actual time off, regardless of accumulation rates.
F. HOLIDAYS
The following days are paid holidays for confidential employees:
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
New Year's Day
Martin Luther King, Jr. Day
Spring Break Holiday
Washington's Birthday
Memorial Day
J u neteenth
Floating Holiday
Floating Holiday
July 4th
lst Monday in September
November llth
4th Thursday in November
Friday after Thanksgiving
December 25th
January 1st
3rd Monday in January
Observed the Friday before Easter weekend
3rd Monday in February
Last Monday in May
June 19th
Varies
Varies
Any holiday, which falls on a Saturday or Sunday, will be officially designated as a
"HOLIDAY" on the prior Friday (if Saturday) or Monday (if Sunday).
For confidential employees, one holiday equals eight hours unless the employee is
working the 9/80 alternative work schedule, in which case one holiday may equal
eight or nine hours depending on whether the normally scheduled work day is an
eight- or nine -hour work day for that employee.
When a holiday is proclaimed by the Mayor of the City, each employee shall be
Resolution No. 41-24
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granted time off in the same number of equivalent hours. Such time off shall be
authorized by the Department Head.
Floating holiday hours are recorded in a bank in July of each fiscal year and may be
carried over to the next fiscal year, to a maximum accumulation of forty-eight (48)
hours of holidaytime. Hours of holidaytime accumulated over forty-eight (48) hours
will be paid out in December.
Floating holiday pay is a compensable leave, and any remaining hours in the
employee's bank will be paid out upon separation from City service, at the
employee's current hourly rate of pay.
G. SICK LEAVE
All employees accrue ninety-six (96) hours per year in a sick leave bank to be used
for employee illness, forty-eight (48) hours of which may be used in the care of the
employee's family member for illness or for any other reason mandated by law.
Upon retirement from City service, remaining unused sick leave converts to time
served under the applicable contract between the City and the California Public
Employees' Retirement System ("CaIPERS"), if any.
Based on individual utilization of paid sick leave in the preceding calendar year,
confidential employees may convert unused accumulated sick leave into paid
vacation leave once per calendar year, pursuant to the formula below:
Sick Leave
Utilization
0 hours
.25 to 8 hours
8.25 to 16 hours
16.25 to 25 hours
Over 25 hours
Maximum
Sick Leave Conversion to
Vacation Leave
96 hours
72 hours
48 hours
24 hours
0 hours
48 hours
36 hours
24 hours
12 hours
0 hours
At least one hundred sixty (160) accrued hours must remain in the confidential
employee's sick leave bank for an employee to be eligible for conversion or for a
conversion to be authorized. In addition, the right to convert does not carry over or
rollover from calendar year to calendar year; failure to request conversion in any
calendar year eliminates the right to do so for that calendar year.
Upon the Service Retirement of a confidential employee, who has more than ten
years of service with the City, said employee shall be entitled to receive payment for
up to the first ninety days of their accrued sick leave at twenty-five percent of the
employee's rate of pay, as of the date of service retirement. Unused sick leave
converted to service credit for CaIPERS purposes cannot be compensated
(converted to dollars). Service Retirement is defined as service retirement from both
the City and CaIPERS. Voluntary separation or termination actions are excluded
from this benefit.
Resolution No. 41-24
Page 6 of 12
H. RETIREMENT BENEFITS
All employees enrolled in the CaIPEPS retirement system bear the risk of payment
of any increases in the employee contribution above the current percentage made
bythe action of CaIPEPS, the California Public Employees Pension Reform Act of 2013
("PEPPA") or related legislation, and/or the State Legislature.
All employee CaIPEPS contributions are paid to CaIPEPS, based upon tax treatment
currently permitted by the State Franchise Tax Board and the Internal Revenue
Service ("IRS").
The following is descriptive information on City CalPERS-contracted Miscellaneous
retirement plans:
CaIPEPS Miscellaneous Plans
All employees pay100% of the employee contribution to CaIPEPS, which is currently:
1. Tier 1 Classic members = 8%
2. Tier 2 Classic members= 7%
3. Tier 3 PEPRA members = one-half the normal cost of retirement (currently
6.75%)
Tierl: All employees, who were hired prior to December10, 2011, receive the following
CalPERS retirement formula and optional benefits (existing Tier I employees,
promoted to another position within the City, will not be considered new hires, with
respect to retirement formulas):
1. 2.7% @ SS formula (Section 21354.5)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation I Year (Section 20042)
S. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 2: All employees, who were hired on or after December 10, 2011, but before
January 1, 2013, and those hired on or after January 1, 2013, who meet the CalPERS
definition of classic member as determined by CaIPEPS under PEPPA and related
legislation receive the following CaIPEPS retirement formula and optional benefits:
1. 2% @ 60 formula (benefit factor increases to 2.418% @ 63+) (Section 21353)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 3 Years (Section 20037)
S. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
Tier 3: All employees, who were hired on or after January 1, 2013, and meet the
definition of new member, as determined by CalPERS under PEPPA and related
Resolution No. 41-24
Page 7 of 12
legislation pursuant to PEPRA, receive the following CalPERS retirement formula
and optional benefits:
1. 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty percent of the expected normal cost rate,
which is currently 13.5% (6.75% is employee's portion)
4. Unused Sick Leave Credit (Section 20965)
5. Military Service Credit (Section 21024 and 21027)
6. 1959 Survivor Benefit, Level 4 (21574)
7. Pre -Retirement Option 2W Death Benefit (Section 21548)
Employee Cost Sharing: CalPERS Classic Member Tier 1 & 2 employees shall make a
1% cost sharing contribution to the employer's contribution to CalPERS effective the
first full payroll period after City Council approval of a CalPERS Contract Amendment
providing for such payment commencing FY 23/24, but in no event sooner than the
pay period including July 1, 2023.
1. HEALTH/LIFE/VISION/DENTAL INSURANCE
All employees receive the following contribution toward the purchase of CaIPERS
health insurance, which includes the required CalPERS monthly contribution:
City will pay an amount equal to 100% of Employee -only premium, 90% of Employee
+ one premium, and 89% of Employee + two or more (family coverage) premium for
the lowest -cost PPO plan offered by CaIPERS.
For calendar years 2024 and 2025, City will contribute 100% of the dental and vision
premiums for Employees and their dependents.
City will pay up to a 5% increase in premiums for calendar year 2026 and up to a 5%
increase for calendar year 2027 through the end of the 2027 calendar year.
Employees will pay for any increase beyond 5%.
Life insurance is provided at $50,000 per employee.
For retired employees, City contributes the required CalPERS monthly contribution
towards CalPERS health plans, as selected by retiree.
J. DEFERRED COMPENSATION PROGRAM
Confidential employees receive a matching contribution up to $1,500, per calendar
year, paid to employee's deferred compensation plan, or approved retiree medical
savings plan. City matching contributions are paid on a 2:1 basis (e.g., employee
contributes $2, City matches $1).
K. LONGEVITY INCENTIVE
Once annually, for employees who have been continuously employed with City for
ten (10) years of full-time employment, City shall contribute to the employee's
Resolution No. 41-24
Page 8 of 12
deferred compensation plan (Section 457 account) $25 per year for each whole year
of continuous full-time employment with City, plus an additional $25 per year for
each whole year of continuous full-time employment completed after ten (10) years.
For example:
If an employee has been employed full-time with the City for 10 years, the City will
contribute $250 that year ($25 for each year of continuous full-time employment).
If an employee has been employed full-time with the City for 14 years, the City will
contribute $350 that year ($25 for each year of continuous full-time employment).
Whole years of full-time employment shall be determined on September 1=t of
each year.
Fractions of a year will be rounded down to the nearest whole year.
Deposits into the deferred compensation plan shall be made in one lump sum no
later than the second pay period in September.
L. EDUCATION INCENTIVE
City will reimburse its confidential employees for costs associated with job -related
and job -required certifications, correspondence courses, and/or licenses (except
Class III driver's license), upon successful completion of the examination or course
by the employee. Written authorization, from the employee's Department Director,
is required in advance. Reimbursement includes application fees, examination fees,
and certificate fees. Renewal fees may be paid in advance by City. This provision
does not apply to continuing education requirements.
City will provide a City vehicle, when available, for required transportation, and will
permit paid time for employee to take examinations, scheduled during normal
working hours. If no City vehicle is available, employee may take their personal
vehicle; however, no mileagepayments are authorized of the use of personal
transportation. Time spent, outside normal working hours, shall not be
compensated.
M. COLLEGE DEGREES
Confidential employees, hired on or after January 1,1998, shall not be eligible for this
incentive.
For confidential employees, hired prior to January 1,1998, City will pay the following
education incentives, on base salary, for an Associate of Arts ("AA") or Bachelor's
degree, unless the employee's job description requires an AA or Bachelor's degree,
or the employee is promoted to a position requiring an AA or Bachelor's degree:
1. AA degree = $600 annually
2. Bachelor's Degree = $1,200 annually
N. COMPENSATION ADJUSTMENTS
Resolution No. 41-24
Page 9 of 12
Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given
to confidential employees, as recommended by the City Manager and approved by
the City Council; though neither is guaranteed.
1. Effective the pay period including July 1, 2024, City shall provide a 5% COLA
increase to base salaries for all confidential employees (see Exhibit A updated
salary table).
2. Effective the pay period including July 1, 2025, City shall provide a 5% COLA
increase to base salaries for all confidential employees (see Exhibit B updated
salary table).
3. Effective the pay period including July 1, 2026, City shall provide a 5% COLA
increase to base salaries for all confidential employees (see Exhibit C updated
salary table).
O. SPECIAL PAY
Confidential employees, who are required by their supervisor to attend meetings,
outside the normal work schedule, for the purpose of taking minutes of said
meetings, shall be paid a minimum of four (4) hours at time and one-half, without
regard for hours actually worked during the workweek. Minutes, taken at meetings
during regular work hours, shall be included in employee's regular rate of pay, and
not compensated beyond that.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a
regular meeting thereof held on the 25t" day of June 2024, by the following vote:
AYES:
Wixom, Barton, Edwards, Ford, Landrum
NOES:
None
ABSENT:
None
ABSTAIN:
None
RECUSE:
None
CAR IXOM, Mayor
ATTEST:
NA SWANSON, City Clerk
Resolution No. 41-24
Page 10 of 12
ATTACHMENT A
CONFIDENTIAL PAY SCHEDULE
EFFECTIVE 3ULY 1, 2024
I HOURLY PATES I
POSITION
STEP
1
STEP
2
STEP
3
STEP 4
STEP
5
HUMAN RESOURCES ANALYST 1
31.96
33.56
35.24
36.99
38.84
EXECUTIVE ASSISTANT/DEPUTY
CLERK
34.34
36.06
37.85
39.75
41.74
SENIOR ACCOUNTING TECHNICIAN
35.69
37.47
39.35
41.32
43.39
FISCAL ANALYST
38.43
40.35
42.37
44.49
46.71
HUMAN RESOU RCES ANALYST I 1
38.43
40.35
42.37
44.49
46.71
Resolution No. 41-24
Page 11 of 12
ATTACHMENT B
CONFIDENTIAL PAY SCHEDULE
EFFECTIVE JULY 1, 2025
I HOURLY RATES
POSITION
STEP
1
STEP
2
STEP
3
STEP
4
STEP
5
HUMAN RESOURCES ANALYST 1
33.56
35.24
37.00
38.84
40.78
EXECUTIVE ASSISTANT/DEPUTY CLERK
36.06
37.86
39.74
141.74
43.83
SENIOR ACCOUNTING TECHNICIAN
37.47
39.34
41.32
� 43.39
4536
FISCAL ANALYST
40.35
42.37
44.49
46.71
49.05
HUMAN RESOURCES ANALYST II
140.35
1 42.37
44.49
46.71
[ 49.05
Resolution No. 41-24
Page 12 of 12
ATTACHMENT C
CONFIDENTIAL PAY SCHEDULE
EFFECTIVE DULY 1, 2026
I HOURLY PATES i
POSITION
STEP
1
STEP
2
STEP
3
STEP
4
STEP
5
HUMAN RESOURCES ANALYST 1
35.24
37.00
38.85
40.78
42.82
EXECUTIVE ASSISTANT/DEPUTY CLERK
37.86
39.75
41.73
43.83
46.02
SENIOR ACCOUNTING TECHNICIAN
39.34
41.31
43.39
45.56
47.84
FISCAL ANALYST
42.37
44.49
46.71
49.05
51.50
HUMAN RESOURCES ANALYST II
42.37
44.49
46.71
49.05
51.50