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HomeMy WebLinkAboutReso 63-20 Unrepresented Management EmployeesRESOLUTION NO. 63-20 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ESTABLISHING COMPENSATION AND BENEFITS FOR THE UNREPRESENTED MANAGEMENT DESIGNATED EMPLOYEES OF THE CITY OF MORRO BAY AND RESCINDING RESOLUTION NO. 33-17 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 et seq.)1 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 `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 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 "management" employees, summarized in brief from that 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 to hire, discipline, promote, discharge; assign, or transfer other employees or who have responsibility to use independent judgment to direct such employees, adjust their grievances, or recommend personnel action; 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 by any recognized employee organization as defined by the City's Employer -Employee Relations Resolution and the MMBA; and WHEREAS, on June 27, 2017, the City Council of the City adopted Resolution No. 33-17, establishing the compensation and benefits for the City's unrepresented management employees; and 1 Unless otherwise stated, references to Sections will be to the Government Code. Resolution No. 63-20 Page 2 of 10 WHEREAS, on April 28, 2020 in response to COVID-19 pandemic, the City Council adopted Resolution No. 37-20 implementing a five percent (5%) base salary reduction effective May 2, 2020 through December 31, 2020; and WHEREAS, on November 29, 2018, due to restructuring of the City Clerk's Office to include supervision of Risk Management and Human Resources, the City Council approved the new job description and the City Clerk was reclassified as City Clerk/Human Resources Manager on December 1, 2018; and WHEREAS, effective March 21, 2020, the City's former Public Works Director was reclassified to the position of City Engineer, which was initially intended to be a temporary position, and the City Council approved an employment contract between the City and the City Engineer memorializing the terms and conditions of his employment as City Engineer for a minimum term of six months ('City Engineer Employment Agreement"). The City Council now desires to add the position of City Engineer to the list of management classifications included in this resolution, such that the position of City Engineer would no longer be temporary the terms and conditions of the City Engineer's employment with the City would be consistent with other management classifications, and the compensation and benefits for the position of City Engineer would be as set forth in this resolution rather than the City Engineer Employment Agreement; and WHEREAS, the City Council of the City desires, through this resolution, to rescind Resolution No. 33-17 and revise the City s resolution regarding the compensation and benefits for the City's unrepresented management employees to do the following: i) update the management classification salary scheduled attached as Attachment "A' to reflect the five percent (5%) base salary reduction effective through December 31, 2020; ii) update the classification list to include the revised "City Clerk/ Human Resources Manager" job title; iii) update the classification list to add City Engineer; and iv) update the health, life, vision and dental insurance contributions to reflect the current amounts. NOW, THEREFORE, BE IT RESOLVED the Morro Bay City Council does hereby adopt this Resolution, establishing compensation and benefits for the City of Morro Bay s unrepresented management employees and rescinding and replacing any prior compensation and benefits resolutions, contracts, agreements or memorandum for such employees, including, but not limited to Resolution No 33-17: A. CLASSIFICATION/POSITION LIST The following are the authorized management positions: 1 Police Commander 2. Utility Division Manager 3 City Clerk/Human Resources Manager 4 Capital Projects Manager 5. City Engineer 6 Consolidated Maintenance Superintendent 7. Information Systems Technician 8 Environmental Programs Manager 9 Tourism Manager 10. Budget/Accounting Manager 11. Senior Planner 12. Recreation Services Manager 13. Management Analyst 14. Support Services Manager Resolution No. 63-20 Page 3 of 10 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. EXEMPT 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. ADMINISTRATIVE LEAVE Management employees 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. With each fiscal year end, up to twenty-four hours of unused administrative leave from the prior fiscal year may be carried over to the next fiscal year by written request of the employee. The administrative leave bank may never accrue more than ninety-six hours (72 + 24). New management employees will be provided a pro-rata share of the annual seventy -two-hour administrative leave bank upon employment. 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. VACATION LEAVE Management employees accrue vacation, based on the schedule below: Service Years Entitlement in Days 1 thru 2 10 3 thru 4 11 5 thru 6 12 7 thru 8 13 9thru 10 14 11 thru 12 15 13thru 14 16 Resolution No. 63-20 Page 4 of 10 15 thru 16 17 17 thru 18 18 19 thru 20 19 21 or more 20 Management employees are subject to a maximum leave accumulation of three hundred hours. Any hours, exceeding the maximum accumulation, will be paid out in December of each fiscal year unless the management employee has a specific need to retain the hours beyond the 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, 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 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 bank will be paid out upon separation from City service, at the employee's current hourly rate of pay HOLIDAYS The following days are paid holidays for management employees: Independence Day July 4 Labor Day 1st Monday in September Veteran's Day November 11 Thanksgiving Day 4th Thursday in November Day after Thanksgiving Friday after Thanksgiving Christmas Day December 25 New Year's Day January 1 Martin Luther King, Jr. Day 3rd Monday in January Lincoln's Birthday February 12 Washington's Birthday 3rd Monday in February Memorial Day Last Monday in May Floating Holiday Varies Floating Holiday 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 management employees, one holiday equals eight hours, unless the employee is working the 9/80 alternative work schedule where one holiday shall equal nine hours. Resolution No. 63-20 Page 5 of 10 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 -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 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 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 under the applicable contract between the City and the California Public Employees' Retirement System ("CaIPERS"), if any Sick leave converted to service credit for CaIPERS purposes cannot be 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: Sick Leave Utilization 0 hours 25 to 8 hours 8 25 to 16 hours 16.25 to 25 hours Over 25 hours Sick Leave 96 hours 72 hours 48'hours 24 hours 0 hours Maximum Conversion to Vacation Leave 48 hours 36 hours 24 hours 12 hours 0 hours At least one -hundred sixty accrued hours must remain in the management 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 management 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 seven hundred twenty hours of his/her accrued sick leave at thirty-five percent of the employee's rate of pay, as of the date of service retirement. Service Retirement is defined as service retirement from both the City and CaIPERS. Voluntary separation or termination actions are excluded from this benefit. H. 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 Resolution No. 63-20 Page 6 of 10 CaIPERS, 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 = 8% 2. Tier 2 Classic members = 7% 3. Tier 3 PEPRA members = 6.75% Tier 1: All employees who were hired prior to December 10, 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. 2.7% @ 55 formula (Section 21354.5) 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 December 10, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the CaIPERS definition of classic member, as determined by CaIPERS under PEPRA and related legislation, receive the following CaIPERS 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) 5. 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 CaIPERS under PEPRA and related legislation, receive the following CaIPERS 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) Resolution No. 63-20 Page 7 of 10 7. Pre -Retirement Option 2W Death Benefit (Section 21548) CaIPERS Safety Plans All employees pay 100% of the employee contribution to CalPERS, which is currently: 1. Tier 1 and Tier 2 Classic members = 9% 2. Tier 3 PEPRA members - 12% (50% of the normal contribution rate) Tier 1: All employees, who were hired prior to September 17, 2011, receive the following CalPERS 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) 3. Military Service Credit (Section 21024 & 21027) 4. Final Compensation 3 Years (Section 20037) 5. 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 CaIPERS under PEPRA and related legislation, receive the following CaIPERS 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) HEALTH/LIFENISION/DENTAL INSURANCE Effective January 1, 2018, all employees receive the following contribution toward the purchase of CalPERS health insurance, which includes the required CaIPERS monthly contribution: Employee only - up to $715/month or cost of insurance, whichever is less Resolution No. 63-20 Page 8 of 10 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 only. Effective January 1, 2020, all employees receive the following contribution toward the purchase of Life, Vision and Dental insurances: Life Vision Dental EE Pays Total Bank $8.70 $ 8.73 $ 56.68 $ 74.11 $ 71.18 $ 2.93 Emp oyee only $8.70 $416.40', $156 84 $181.94 $17019 $11,75 Employee + 1 $8.70 $ 23.34 $156.84 $188.88 $176.67 $12.21 Emp oyee + 2+ For retired employees, City contributes the required CaIPERS monthly contribution towards CaIPERS health plans, as selected by retiree J. 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 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). L. SPECIAL PAY Management employees may receive up to $150 reimbursement per fiscal year, to purchase steel -toed shoes as required in the performance of their job duties. Proof of purchase is required, and reimbursement is based on price paid, not to exceed $150 per fiscal year. Once purchased, footwear must be worn while working. M. COMPENSATION ADJUSTMENTS Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to management employees, as determined by the City Manager and approved by the City Council; neither is guaranteed. Pursuant to Resolution No. 37-20, the City Council implemented a five percent (5%) base salary reduction effective May 2, 2020 through December 31, 2020. Management employee salaries effective through December 31, 2020 are reflected in Attachment N EDUCATION REIMBURSEMENT City will reimburse its management 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 Resolution No. 63-20 Page 9 of 10 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 23rd day of June 2020, by the following vote: AYES* Headding, Addis, Davis, Heller, McPherson NOES* None ABSENT: None ATTEST: NA SWANSON, City Clerk JOHN H &(45DOING, Mayor Resolution No. 63-20 P age 10 of 10 ATTACHMENT A MANAGEMENT SALARY SCHEDULE (Effective May 2, 2020 through December 31, 2020) POSITION P olice Commander Utility Division Manager City Engineer City Clerk/Human Resources Manager Consolidated Maintenance Supt Information Systems Tech Capital Projects Manager Tourism Manager Environmental Programs Manager Budget/Accounting Manager S enior Planner Recreation Services Manager Management Analyst S upport Services Manager ANNUAL COMPENSATION RANGE 1 108,585 96,718 95,573 74,605 63,795 58,033 2 114,300 101,808 100,603 78,532 67,153 61,087 3 120,015 106,898 105,633 82,458 70,510 64,142 4 126,015 112,243 110,914 86,581 74,036 67,349 5 132,316 117,856 116,460 90,910 77,738 70,716