HomeMy WebLinkAboutReso 55-17 Comp and Benefits Management FY 18-20,.it 0 a oil :3 J1 I :OJ 11FOIYA As
i
ity of • • Bay, California
1
O%ompensation of all appointive officers
I of
d employees by resolution or ordinance; and
• p- • • • - employees • r ! • be -• . • determined
)y resolutionthe City Council,except •- • in Chapter1 of - Morro Bav Municlual
••- and
r- - • • • - -• • •- . • • 46,11V
• • •• •AUKmequirements; and
uties, essential functions, knowledge, skills, abilities and minimum
WHEREAS, the Meyers -Milian -Brown Act ("MMBA") (Government Code sections 3500 et seq.)
governs labor relations between local overnmentemployers and employees and Section 3507.5 thereof
permits a public agency to adopt local rules and regulations providing for the designation of the
"management" 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
including, but ! -• to,the designation of .•- - employees, summarized in brief from
resolution as generally defined as meaning those employees who are have significant responsibilities for
formulating and administering City policies and programs and the authority to exercise independent
judgment • hire, discipline, • • a - • •e; assign, or - other employees or •
have
responsibility to use independent judgment to direct such employees, adjust their grievances, or
recommend personnel acti• and
WHEREAS, the City has designated such "management" employees as more fully identified and
listed herein below; and
WHEREAS, the "management" employees identified and listed herein are "unrepresented,"
meaning that they are not part of any City Council determined appropriate bargaining unit nor represented
- -- --- -- A - --- -- I --- - - - -- - ---_- l'-- -- -1-r'__ 11_ i�_ 0 1% ' 1 Ir r 1 1 f 1 d•
)y any recognizea employee organization as aerinea Dy the city s cmpioyer-Cmpioyee Reiauons
Resolution and the MMBA; and
1 Unless otherwise stated, references to Sections will be to the Government Code.
,- • • •
:'age of
HERE , the City Council deems it is in the best interest of the City to adjust the compensation
of the unrepresented management employees, whose titles are listed herein, by a Cost of Living
Adjustment (COLA) established by City Council for these employees for FY 2017 through FY 2019.
Resolution, establishing compensation and benefits for the City of Morro Bay's unrepresente
nanagement employees and rescinding and replacing any prior compensation and benefits resolution
a agreements or memorandum for such employees, includ'ng, but not Imm"ted to Resolution N
33�1 70
The following - 117 through 2019 authorized ..- positions.
1. Police Commander
2. Utility Division Manager
3. City Clerk/Risk Manager
4. Capital Projects Manager
5. Consolidated Maintenance Superintendent
6. Information Systems Technician
7. Environmental Programs Manager
8. Tourism Manager
9. Budget/Accounting Manager
10. Senior Planner
11. Recreation Services Manager
12. Management Analyst
13. Support Services Manager
B. NORMAL WORK HOURS
Management employees are expected to work during normal City business hours and may be
required to work longer hours (more than an eight-hour day and more than five days per week),
but are not subject to overtime compensation, as they are considered exempt employees, within
the definition of FLSA. The occasional use of alternative work schedules can be implemented
upon approval of the City Manager.
C. EX
EMPT TIME OFF
As stated in B above, management employees are considered exempt employees. However, the
City provides various leave banks for employees' use, with accrual and use record-keeping being
required to properly maintain the leave banks.
Time off of less than two continuous hours in a day does not need to be recorded by exempt
employees. Abuses of this exception, such as daily use or random periods within a day, will not
be allowed; however, this exception is also not allowed to be combined with other leaves.
Managementemployees receive seventy-two hours annually in paid administrative leave in a lump
sum accrual at the beginning of each fiscal year. The City Manager, or designee, upon
recommendation by the management employee's Department Head, may grant additional
administrative leave to the management employee. All leave time (vacation, sick leave, holiday,
etc.) will be taken off on an hour -for -hour basis equaling employee actual time off from work during
normal business hours, regardless of accumulation rates.
wesoiuvon tito.
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12
91 LU L1j1Mj1r't: I JL' 'I 111t: llull
iscal year may be carried over to the next fiscal year by written request of the employee. The
dministrative leave bank may never accrue more than ninety�six hours (72 + 24)8
dministrative leave bank upon employment.
dministrative leave is a compensable leave, and any remaining hours in the employee's bank will
! paid out !in separation fromthe employee'current!. of •
Aanagement employees accrue vacation, based on the schedule below:
Entitlement in
Service Years Days
1 thru 2 10
3thru 4 11
5 thru 6 12
7 thru 8 13
9 thru 10 14
11 thru 12 15
13 thru 14 16
15thru 16 17
17thru 18 18
19 thru 20 19
21 or more 20
fiscal yea
maximum accumulation. This need must be written and approved by both the employee's
Department Head and the City Manager, or designee. All leave time (vacation, sickleave, holiday,
during
etc.) will be taken off on an hour -for -hour basis equaling employee actual time off from work d
normal business hours, regardless of accumulation rates.
Management employees may exercise the option to convert, into cash, a maximum of forty hours
of accrued vacation leave each fiscal year, at the employee's current hourly rate of pay.
Vacation accrual is a compensable leave, and any hours remaining in the employee's vacation
ON I it
bank will be paid out upon separation from City service, at the employee's current hourly rate of
r,
Nay
HOLIDAYS
The following days are paid holidays for management employees:
age 4 of 12
-•- ,- - �.
abor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day
New Year's Day
artin Luther King, Jr. Day
Lincoln's Birthday
ashington's Birthday
Memorial Day
Floating Holiday
Floating Holiday
July4
1st Monday in September
November 11
day after Thanksgiving
�cember 25
-
January 1
3rd Monday in January
February 12
3rd Monday in February
Last Monda
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).
40 nine notrs.
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 1 1 I of forty -eight -hours of holiday time. Hours of
holiday time accumulated over forty-eight hours will be paid out in December. All leave time
(vacation, sick leave, holiday, etc.) will be taken off on an hour -for -hour basis equaling employee
actual time off from work during normal business hours, regardless of accumulation rates.
G. SICK LEAVE
All employees accrue ninety-six hours per year in a sick leave bank to be used for employee
illness, forty' eight 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. All leave time (vacation, sick leave, holiday, etc.)
will be taken off on an hour -for -hour basis equaling employee actual time off from work during
normal business hours, regardless of accumulation rates.
Upon retirement from City service, remaining unused sick leave converts to time served underthe
applicable contract between the City and the California Public Employees' Retirement System
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compensated (converted to dollars).
Based on individual utilization of paid sick leave in the preceding calendar year, management
employees may convert unused accumulated sick leave into paid vacation leave once per
calendar year, pursuant to the formula below:
Ikesolution A, •
:'age
of
0 hours
.25 to 8 hours
8.25 to 16 hours
16.25 to 25 hours
ver 25 hours
Sick Leave
aximum Conversion
�I • . employee
soate► . be
• - o conversionI` conversion be authorized.
ddition,
right to
convert • . not carry over or rollover from calendar year to calendar year;
allure to request
•, -' i ai i calendar a! eliminates a right i do so for ,, calendar
_
Vith the City, said employee shall be entitled to receive payment for up to the first seven hundred
v enty hours of his/her accrued sick leave at thirty4ive percent of the employee's rate of pay, as of
r. date
i � i a defined
r a • _ retirement.
a � _ � � r, r _ + service
r irement
• both the,Ity and CalPERS. Voluntary separation or termination actions are excluded from this benefit.
I --I. RETIREMENT BENEFITS
All employees, enrolled in the CaIPERS retirement system, bear the risk of payment of any
increases in the employee contribution, above the current percentage, made by action of
CalPERS, the California Public Employees Pension Reform Act of 2013 ("PEPRA") or related
legislation, and/or the State Legislature.
All employee CaIPERS contributions are paid to CaIPERS, 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 CaIPERS-contracted retirement plans:
CaIPERS Miscellaneous Plans
All employees pay 100% of the employee contribution to CaIPERS, which is currently:
1. Tier 1 Classic members
2. Tier 2 Classic members
3. 8%
Tier 3 PEPRA members
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following CaIPERS
retirementformula and optional benefits (existing Tier 1 employees, promoted to anotherposition
within the City, will not be considered new hires, with respect to retirement formulas):
1. 2.7% @ 55 formula (Section 21354.5)
2. "Unused Sick Leave Credit (Section 20965)
�. military Service ureait (z5ection zwi UZ4 & Zwi UZ I)
4. Final Compensation 1 Year (Section 20042)
5. 1959 Survivor Benefit, Level 4 (Section 21574)
6. Pre -Retirement Option 2W Death Benefit (Section 21548)
:'age of J
rr.. •; r r •,.yt:. • •.. .•. 1.,. r ...r. r • r. •" • • • r . r 1 1
.'' ! • r - •. • • . r.. fir. •. T I • - •. r •11 • /.nember, as determined by CalPERS under PEPRA and related legislation, receive the followingalPERS retirement formula and optional benefits:
r Leave
Credit (Section
•••
CreditMilitary Service i
21027)
inal Compensation 3 Years (Section 20037)
1959 Survivor Benefit, Level 4 (Section 21574)
Pre�Retirement Option 2W Death Benefit (Section 21548)
ember, as determined by CalPERS under PEPRA and related legislation, receive the following
alPERS 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, w
currently 12.5% (6.25% 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)
Ca_IPERS Safety Plans
All employees pay 10010 of the employee contribution to CaIPERS, which is currently:
1. Tier 1 and Tier 2 Classic members = 9%
2. Tier 3 PEPRA members = 11.5% (50% of the normal contribution rate)
Tier 1: All employees, who were hired prior to September 17, 2011, receive the following.
CaIPERS retirement formula and optional benefits" (existing Tier 1 employees, promoted to
another position within the City, will not
be considered new hires, with respect to retirement
formulas):
1. 3% @ 50 formula (Section 21362.2)
2. Unused Sick Leave Credit (Section 20965)
3. Military Service Credit (Section 21024 & 21027)
4. Final Compensation 1 Year (Section 20042)
5. 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 September 17, 2011, but before January 1,
2013, and those hired on or after January 1, 2013, who meet the definition of classic member, as
determined by CaiPERS under PEPRA and related legislation, receive the following CaIPERS
retirement formula and optional benefits:
1. 3% @ 55 formula (Section 21363.1)
2. Unused Sick Leave Credit (Section 20965)
30 Military Service Credit (Section 21024 & 21027)
• • • •
:'age of
• it1959 Survivor Benefit, PrealloRetirement Option
YLe
ears (Section 20037)
vel 4 (Section 21574)
2W Death Benefit (Section 21548)
ember, as determined by CalPERS under PEPRA and related legislation, receive the following
..alPERS retirement formula and optional benefits:
1. 2.7% @ 57 formula
2. Final Compensation 3 Years (Section 20037)
3. Member contribution rate of fifty percent of the expected normal cost rate, which is
currently 23% (11.5% 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)
Effective January 1, 2017, all employees receive the following contribution toward the purchase of
CalPERS health insurance, which includes the required CalPERS monthly contribution:
I
Employee only - up to $715/month or cost of insurance, whichever is less
Employee up to $1,109/month or cost of insurance, whichever is less
Employee + family - up to $1, 421 /month or cost of insurance, whichever is less
Employee only - up to $715/month or cost of insurance, whichever is less
Employee + 1 — up to $1,135/month or cost of insurance, whichever is less
Employee + family - up to $1,460/month or cost of insurance, whichever is less
Life insurance is provided at $50,000, and is paid for by the City for the employee onlIj
y.
Life Vision Dental Total Bank EE Pays
Employee only $8.15 $ 8.86 $ 55.47 $ 72.48 $ 69.55 $ 2.93
Emalovee + 2+
$8.15 $ 22.59
$143.09 I $173083
For retired employees, City contributes the required CaIPERS monthly contribution towards
CaIPERS health plans, as selected by retiree. .
LONG-TERM DISABILITY ('(LTD)))
INSURANCE PROGRAM
Management employees do not participate in the California State Disability Insurance program.
City provides LTD to its management employees, and pays the cost for the plan.
K. DEFERRED COMPENSATION PROGRAM
i - • •
•r of
Management 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 contributes $1).
footwearManagement employees may receive up to $150 reimbursement per fiscal year, to purchase steel
toed shoes, as required in the performance of theirjob duties. Proof of purchase is required, an
reimbursement is based on price paid, not to exceed $150 per fiscal year. Once purchase
be •rn while working.
Annual Cost of • A• i ustments`) and/or e• • i ustmentsgiven to
management employees, as determined by the City Manager ! • approved • the City Council;
neither is guaranteed.
management employees' salary ranges, as reflected in Attachment A hereto, effective with the
`•ay period containing July 1, 2017.
2. Contingent upon satisfaction of the following financial terms and conditions, the CITY shall
provide a COLA increase to be effective July 1, 2018 to base salaries for all confidential
employees in the amount of two percent (2%) for the 2018/2019 fiscal year:
o Total major General Fund Revenues (Property Tax, Sales Tax and Transient Occupancy
Tax) meet or exceed the combined forecasted amount of $9,406,194 (matches 10 -year
forecast and FY 2017/18 budget adopted by Council). This figure shall be based on
current tax rates -(currently 1 % Property Tax, 1.0% CITY Sales Tax, 10% TOT). In the
event of increased tax rates, such increased rates would not count towards increased
revenue receipts for this purpose.
o The CaIPERS investment rate of return (i.e. "Discount Rate") to take effect in FY 2018/19
does not drop below the rates announced by CaIPERS on December 21, 2016, causing.:...
the CITY's contribution to CalPERS to increase more than $100,000 beyond the current
budgeted amounts for the General Fund.
o The CITY does not become responsible, during FY 2017/18, for any state/federally
imposed unfunded mandates from any external sources) that require significant
unplanned/ un -forecasted General Fund expenditure(s) of more than $300,000 in a fiscal
year, including significant natural disasters affecting the CITY. Any such expenditure( s),
cumulatively totaling $300,000 in a fiscal year or more, will be counted as a reduction in
the combined revenue amount discussed in this section on which the various conditions
are based, resulting either in a lower employee bonus or reduction in the intended COLA
increase to 1 % or 0%.
Contingencies in the event of a revenue shortfall for FY 2017/18:
o If total major General Fund Revenues are less than $71,000 below the forecasted
amount (i.e. more than $9,335,194), then the COLA will be 2%, effective July 1, 2018.
o If total major General Fund Revenues are between $71,000 and $141,999 below the
forecasted amount (i.e. between $9,264,195 - $9,335,193), then the COLA will
Ikesolution 11o,
:'age
• of
eI fective July 17 2018.
amount (i.e. less than $9,264,194), then there will be no COLA effective July 1, 2018w
reasonable to assume the combined receipts will meet or exceed the General Fund
revenue threshold, then the COLA will be effective as of July 1, 2018W
June 2018, then the parties agree to wait for actual receipts to be posted, which the
CITY anticipates will occur by the end of August. If the threshold is met at the time
actual r.
receipts
: ! I r received,
.r.r•,', r - CITY . gr r to
implement
r r j. �COLA
� retroactive r•.I,.-..
to July 1, , •
M 1
I
o If the conditions described above are satisfied, and total major General Fund
Revenues for FY 2017/18 are above forecast, then in addition to the 2% COLA, 20%
of the amount above the forecast amount will be divided equally by the number of full-
time equivalent (FTE) employees and such amount shall be distributed to
management designated Employees in the form of a one-time lump sum payment.
3. Contingent upon satisfaction of the following financial terms and conditions, the CITY shall
P1 ovide a COLA increase effective July 17 2019 to base salaries for all Unit classifications in
the amount of two percent (2%) for the 2019/20 fiscal year:
o Total major General Fund Revenues (Property Tax, Sales Tax and Transient Occupancy
Tax) meet or exceed the combined forecasted amount of $9,395,906 (matches 10 -year
forecast). This figure shall be based on current tax rates (currently 1 % Property Tax, 1.0%
City Sales Tax, 10% TOT). In the event of increased tax rates, such increased rates
would not count towards increased revenue receipts for this purpose.
o The CaIPERS investment rate of return (i.e. "Discount Rate") to take effect in FY2019/20
does not drop below the rates announced by CaIPERS on December 21, 2016, causing
the CITY's contribution to CalPERS to increase more than $100,000 beyond the current
budgeted amounts for the General Fund.
o The CITY does not become responsible, during FY 2018/19, for any state/federally
imposed unfunded mandates from any external sources) that require significant
unplanned/ un -forecasted General Fund expenditure(s) of more than $300,000 in a fiscal
year, including significant natural disasters affecting the CITY. Any such expenditure( s),
cumulatively totaling $300,000 in a fiscal year or more, will be counted as a reduction in
the combined revenue amount discussed in this section on which the various conditions
are based, resulting either in a lower employee bonus or reduction in the intended COLA
increase to 1 % or 0%.
Resolution No. 55-17
Page 10 of 12
Contingencies in the event of a revenue shortfall for FY 2018/19:
o If total major General Fund Revenues are less than $71,000 below the forecasted amount
(i.e. more than $9,322,906), then the COLA will be 2%, effective July 1, 2019.
o If total major General Fund Revenues are between $71,000 and $141,999 below the
forecasted amount (i.e. between $9,253,907 - $9,335,194), then the COLA will be 1
effective July 1, 2019.
o If total major General Fund Revenues are $142,000 or more below the forecasted amount
(i.e. less than $9,253,906), then there will be no COLA effective July 1, 2019.
Timing of July 1, 2019 COLA, if any:
o If the CITY determines, .based on revenues received as of June 1, 2019, that it is reasonable
to assume the combined receipts will meet or exceed the General Fund revenue threshold,
then the COLA adjustment will be effective as of July 1, 2019.
o If meeting the General Fund revenue threshold is not a reasonable assumption as of June 1,
2019, then the parties agree to wait for actual receipts to be posted, which the CITY
anticipates will occur by the end of August. If the threshold is met at the time actual receipts
are received, then the CITY agrees to implement the COLA retroactive to July 1, 2019.
Potential One -Time Lump Sum Payment in the event of revenue surplus for FY 2018/19
o If the conditions described above are satisfied, and total major General Fund Revenues for FY
2018/19 are above forecast, then in addition to the 270 COLA, 2070 of the amount above the
forecast amount will be divided equally by the number of full-time eq
and such amount shall be distri
one-time lump sum paymen.
t
bated to management designated E
equivalent
(FTE) employees
mpl
The threshold amounts for the COLA
oyees in the form of a
contemplated in Section 16.5, potentially occurring in the
2018/19 fiscal year, will be based on the CITY's adopted 2017/18 fiscal year budget. The
threshold amounts for the COLA contemplated in Section 16.6, potentially occurring in the
2019/20 fiscal year, will be based on the CITY's 10 -year budget forecast presented to City Council
on Feb 28, 2017. The threshold amounts referenced in this Section M are based on the following
calculations:
COLA Year Affected
FY18-19
FY19-20
Combined Receipts Forecast
FY17-18 Budkj
et
FY18-19 Forecast
Property Tax
2,
944,
306
310347754
Property Tax In -Lieu (VLFAA)
110041328
1,037,401
Subtotal Property Tax
31948,634
4,072,155
Sales Tax (local & triple -flip)
1
777
664
1
745
439
Sales Tax (Prop 172 -Safety)
1271345
1231525
Subtotal Sales Tax
119057009
178687964
Transient Occupancy Tax
375521551
314541787
Combined Total Threshold
$9,4067194
$9,3951906
Resolution No. 55-17
Page 11 of 12
N. EDUCATION REIMBURSEMENT
City will reimburse its management
employees for costs associated with job-related Cl"d job-
s
required certifications, correspondence courses, and/orlicense
(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, then City will reimburse mileage for the use of the management employee's personal
vehicle, at current IRS mileage rates.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting
thereof held on the 26th day of September 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Irons, Davis, Headding, Makowetski, McPherson
None
None
None
JAMI,�/L. IRONS, Mayor
ATTEST:
DANA SWANSON, City Clerk
kesolution Ro.
age 12 of 12
• __
ON 8
,ity Clerk/Risk
,� •
1097861 1157354
7, 855 1023747
75,482
79, 256
1217122 1273178 1337537
1885 113, 279 1187943
7988 967588 1017417
83, 219 87, 380 91, 749
64, 541 67, 768 71,156 74, 714 78,449
715 617651 64734 677970 717369