HomeMy WebLinkAboutReso 91-19 FY 2019-20 Budget adjustment for employee lump sum and equity paymentsRESOLUTION NO. 91-19
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING FISCAL YEAR 2019/20 BUDGET ADJUSTMENTS
FOR EMPLOYEE LUMP SUM AND EQUITY PAYMENTS
PER NEGOTIATED MEMORANDA OF UNDERSTANDING AND UNREPRESENTED
CONFIDENTIAL AND MANAGEMENT BENEFITS RESOLUTIONS, AND AUTHORIZING ONE-TIME
LUMP SUM PAYMENTS TO ALL QUALIFYING FULL TIME EMPLOYEES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City has entered into Memoranda of Understanding with the Morro Bay Peace
Officers' Association ("MBPOA"), Morro Bay Firefighters Association ("MBFFA") and Service
Employees International Union Local 620 ("SEIU"); and
WHEREAS, the level of compensation and benefits for the City's unrepresented confidential
employees and unrepresented management employees are established by Resolution Nos. 54-17 and
55-17, respectively; and
WHEREAS, it is the City's practice to extend salary benefits negotiated by SEIU to the City's
Executive Team, including Department Directors and City Manager, subject to the approval of the City
Council; and
WHEREAS, the City has entered into a side -letter agreement dated July 18, 2019 with
represented members of the Harbor Department to receive equity pay if Harbor operating fund
revenues exceed expenditures for FY 2018/19; and
WHEREAS, the Memoranda of Understanding and Resolution Nos. 54-17 and 55-17 prescribed
that if FY 2018/19 Year -End actual receipts for the five Major General Fund Revenue Sources of
Property Tax, Property Tax In -Lieu, Sales Tax, Proposition 172 Sales Tax and Transient Occupancy
Tax exceed forecasted stipulated amounts, 20% of the excess amount would be split evenly amount
full-time equivalent positions filled at the time of determination; and
WHEREAS, the five Major General Fund Revenue forecasted amounts totaled (to ,395,906 and
actual receipts for FY 2018/19 totaled $10,109,788 or $713,882 above previously forecasted amounts;
and
WHEREAS, twenty percent of $713,882 totals $142,776 in funds to be evenly distributed
amongst current full-time equivalent employees; and
WHEREAS, including Directors and the City Manager, there are currently 93 full-time equivalent
filled positions; and
WHEREAS, $142,776 divided among 93 currently filled full-time equivalent employees totals
non-PERSable lump -sum payments of $1,535.23 for each of the 93 full-time equivalents; and
WHEREAS, the $142,776 in lump -sum payments is to be paid to all full-time equivalent
employees out of the City's General Fund; and
WHEREAS, the Memoranda of Understanding with SEIU and MBFFA and Resolution Nos. 54-
17 and 55-17, prescribed that if FY 2017/18 Year -End actual receipts. for the five Major General Fund
Revenue Sources of Property Tax, Property Tax In -Lieu, Sales Tax, Proposition 172 Sales Tax and
Transient Occupancy Tax exceed forecasted stipulated amounts, 20% of the excess amount would be
split evenly amount full-time equivalent positions filled at the time of determination; and
WHEREAS, the FY 2017/18 year-end actual revenues were not reviewed in the prior years nor
were lump sum distributions made in accordance with the Memorandum of Understanding language
and the five Major General Fund Revenue forecasted amounts totaled $9,406,194 and actual receipts
for FY 2017/18 totaled $9,597,483 or $191,289 above previously forecasted amounts; and
WHEREAS, twenty percent of $1913289 totals $38,258 in funds to be evenly distributed
amongst current full-time equivalent employees in the SEIU and MBFFA and unrepresented
confidential employees and unrepresented management employees; and
WHEREAS, including Directors and the City Manager, 80 full-time equivalent currently filled
positions are eligible for a non-PERSable lump -sum payment based on the City's FY 2017/18 year-end
actual revenues; and
WHEREAS, $38,258 divided among 80 full-time equivalent .employees totals non-PERSable
lump -sum payments of $478.22 for each of the eligible 80 full-time equivalents; and
WHEREAS, the $38,258 in retroactive lump -sum payments are paid, to all full-time equivalent
employees out of the City's General Fund; and
WHEREAS, the Harbor Operating Fund Revenues over Expenditures exceed $16,000 for FY
2018/19 thereby permitting a one-time equity lump sum payment to the five affected Harbor employees
of $2,000 each for a total payout of $10,000 from the Harbor Accumulation Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
as follows:
1. The foregoing recitals and true and correct, and are incorporated herein by reference.
2. Based on year-end actual revenues for FY 2017/18, the City Council hereby authorizes anon-
PERSable lump -sum payment to the eligible 80 full-time equivalent employees in the amount of
$478.22 each for the payroll ending November 2, 2019. This payment is based on the following:
a. The requirements of the Memoranda of Understanding between the City and the MBFFA
and SEIU.
b. The requirements of unrepresented confidential employees benefits resolution
(Resolution 54-17) and unrepresented management employees benefits resolution
(Resolution No. 55-17).
c. For City department heads and the City Manager, the City Council's authorization for the
one-time lump sum payment described in this Section 2 is based on the City's practice to
extend salary benefits negotiated by SEIU to unrepresented Executive Directors and the
City Manager and its desire to encourage retention of its employees by doing so.
3. Based on year-end actual revenues for FY 2018/19, the City Council hereby authorizes anon-
PERSable lump -sum payment to 93 full-time equivalent employees in the amount of $1,535.23
each for the payroll ending November 2, 2019. This payment is based on the following:
a. The requirements of the Memoranda of Understanding between the City and the
MBPOA, MBFFA and SEIU.
b. The requirements of unrepresented confidential employees benefits resolution
(Resolution 54-17) and unrepresented management employees benefits resolution
(Resolution No. 55-17).
c. For City department heads and the City Manager, the City Council's authorization for the
one-time lump sum payment described in this Section 3 is based on the City's practice to
extend salary adjustments/ bonuses negotiated by SEIU to unrepresented Executive
Directors and the City Manager and its desire to encourage retention of its employees by
doing so.
d. Consistent with the requirements of the side -letter agreement on July 181 2019 between
the City and SEIU represented Harbor Department employees, including Harbor Patrol
Officers, Harbor Patrol Supervisor and Harbor Business Coordinator, the City Council
hereby authorizes a non-PERSable lump -sum equity payment to the 5 full-time
equivalent Harbor employees in the amount of $2,000 each for the payroll ending
November 2, 2019.
4. In order to effectuate the foregoing non-PERSable lump sum payments to City employees, the
City Council hereby authorizes the following budget adjustments for FY 2019/20:
a. to the General Fund Undistributed account in the amount of $181,034;
b. to transfer funds from the General Fund Emergency Reserve to the General Fund in the
amount of $181,034;
c. to the Harbor Operating fund in the amount of $10,000; and
d. to transfer $10,000 from the Harbor Accumulation Fund to the Harbor Operating fund.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 22"d day of October 2019, by the following vote:
AYES:
NOES:
ABSENT
ATTEST:
Headding, Addis, Davis, Heller, McPherson
None
None
A^AA '
DA A SWANSON, City Clerk