HomeMy WebLinkAboutReso 34-21 Confidential Employees Reso (cjt)RESOLUTION NO. 34-21
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 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
'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, by a Cost of Living
Adjustment (COLA) salary increase established by City Council for these employees for FY 2021/22; 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
1 Unless otherwise stated, references to Sections will be to the Government Code.
Resolution No. 34-21 - Page 2 of 9
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 are the FY 2021/22 authorized confidential positions:
1. Human Resources Analyst I
2. Human Resources Analyst II
3. Senior Accounting Technician
4. Executive Assistant/Deputy City Clerk
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")
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.
ADMINISTRATIVE LEAVE
Confidential employees receive up to forty-five (45) hours annually in paid administrative leave 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 which may limit 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.
E VACATION LEAVE
Confidential 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
9 thru 10 14
11 thru 12 15
13 thru 14 16
Resolution No. 34-21 - Page 3 of 9
15thru 16 17
17thru 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, based on the following options for those
excess hours, as selected by the employee:
1. Cash out;
2. Convert hours to sick leave on an hour -for hour basis;
3. Paid to deferred compensation account or
4. Any combination of the above.
Confidential employees may exercise the option to convert into cash a maximum of forty (40)
hours of accrued vacation leave each fiscal year, at the employee's current hourly rate of pay.
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 July 4th
Labor Day 1st Monday in September
Veteran's Day November 11 th
Thanksgiving Day 4th Thursday in November
Day after Thanksgiving Friday after Thanksgiving
Christmas Day December 25th
New Year's Day January 1st
Martin Luther King, Jr. Day 3rd Monday in January
Spring Break Holiday Observed the Friday before
Easter weekend
Washington's Birthday 3rd Monday in February
Memorial Day Last Monday in May
Floating Holiday Vanes
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)
Resolution No. 34-21 - Page 4 of 9
For confidential employees one holiday equals eight hours, unless the employee is working the
9/80 alternative work schedule where one holiday may equal eight or nine hours depending on
the normally scheduled work day being either 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 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 holiday time. Hours of
holiday time 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
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 (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.
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. 34-21 - Page 5 of 9
CaIPERS, the California Public Employees Pension Reform Act of 2013 ("PEPRA") or related
legislation, and/or the State Legislature.
All employee CalPERS 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 Miscellaneous 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 = one-half the normal cost of retirement (currently 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 CalPERS definition of classic
member as determined by CalPERS under PEPRA and related legislation receive the following
CalPERS 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 pursuant to PEPRA,
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)
7. Pre -Retirement Option 2W Death Benefit (Section 21548)
Resolution No. 34-21 - Page 6 of 9
I. HEALTH/LIFENISION/DENTAL INSURANCE
Effective July 1, 2021, all employees receive the following contribution toward the purchase of
CaIPERS health insurance, which includes the required CaIPERS monthly contribution:
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 only.
Effective July 1, 2021, all employees receive the following contribution toward the purchase of
Life, Vision and Dental insurances:
Life
Vision
Dental
Total
Bank
EE Pays
$ 8.73
$ 56.68
$ 74.11
$ 71.18
$
2.93
Employee
on
y
$8.70
$ 16.40
';
$156.84
$181.94
$170.19
$11.75
Employee
+ 1
$8.70
$ 23.34
$156.84
$188.88
$176.67
$12.21
Employee
+ 2+
$8.70
City will pay the remaining premium for life, vision and dental.
For retired employees, City contributes the required CaIPERS monthly contribution towards
CaIPERS health plans, as selected by retiree
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 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. Wntten 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 mileage payments
are authorized of the use of personal transportation. Time spent, outside normal working hours,
shall not be compensated.
L. 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
Resolution No. 34-21 Page 7 of 9
2. Bachelor's Degree = $1,200 annually
M. COMPENSATION ADJUSTMENTS
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. For fiscal year 2021/2022, City will provide a five percent (5%) COLA base salary increase to
the confidential employees' salary ranges as reflected in Attachment A hereto, effective with
the pay period containing July 1, 2021
2. Potential One -Time Lump Sum Payment. In recognition of the financial and overall sacrifices
made during the COVID-19 health emergency, contingent upon satisfaction of the following
financial terms and conditions, the City shall provide a non-PERSable one-time lump sum
payment of one thousand dollars ($1,000) to each unrepresented Confidential member
employed with the City of Morro Bay during the period May 2, 2020, through December 31,
2020, and who is still employed when the lump -sum payments are issued by the City after
verifying the following conditions precedent have been satisfied (anticipated to be around
October 1, 2021):
A. Total of three major General Fund Revenues (Property Tax, Sales Tax and Transient
Occupancy Tax) must meet or exceed the combined Fiscal Year 2020/21 forecasted
amount of $7,757,301 adopted by Council on June 23, 2020. This figure shall be based on
current tax rates (currently 1 % Property Tax, 1 % 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. Sales tax shall exclude any consideration of Measure Q,
Measure E and Cannabis Tax that is collected at any time during Fiscal Year 2020-21.
B. The CITY must not become responsible for any state or federally imposed unfunded
mandates from any external source(s) that require significant unplanned and/or un-
forecasted General Fund expenditure(s) of more than $125 000 above the projected use
of General Fund unassigned Reserves equal to $1,248 000 in the Adopted FY 2020-21
budget (page A-11). This shall include but is not limited to significant natural disaster(s),
worsening financial conditions related to the COVID-19 pandemic or a human -made
disaster affecting the City. Any such expenditure(s) cumulatively totaling $125,000 in a
fiscal year or more will be counted as a reduction in the combined revenue amount
discussed in this section on which the various conditions are based resulting in no one-
time lump -sum payment being awarded.
Resolution No. 34-21 - Page 8 of 9
N. SPECIAL PAY
Confidential employees, who are required by their supervisor to attend meetings, outside the
normal work schedule, for the purpose of taking minutes of said meetings, shall be paid a
minimum of four (4) hours at time and one-half, without regard for hours actually worked during
the work week. Minutes, taken at meetings during regular work hours, shall be included in
employee's regular rate of pay, and not compensated beyond that.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting
thereof held on the 22nd day of June 2021, by the following vote:
AYES. Headding, Addis, Barton, Davis, Heller
NOES. None
ABSENT: None
ABSTAIN: None
L
JOHN EA►IING, Mayor
ATTEST:
imo../Say.$trire-
DANA SWANSON, City Clerk
Resolution No. 34-21 Page 9 of 9
ATTACHMENT A
CONFIDENTIAL SALARY SCHEDULE EFFECTIVE 7/1/2021
POSITION
Human Resources Analyst II
Senior Accounting Technician
Executive Asst/Deputy City
Clerk
Human Resources Analyst I
ANNUAL COMPENSATION RANGE
1 2 3 4
69,053 72,506 76,131 79,938
64,141 67,348 70,716 74,252
61,703 64,788 68,028 71,429
5
83,935
77,964
75,001
57,425 60,296 63,311 66,476 69,800