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HomeMy WebLinkAbout13 SALARY RESOLUTION FOR CONFIDENTIAL1 Agenda Item _]_3 'r~ ~~~ Reviewed.' ~~.e ' `' 1~V ~l r ~1-1 ~1 O~ 1 City Manager pi, ,. ~" ~~'~~ -~./ ~., Finance Director ~~ ~.r= MEETING DATE: MAY 18, 2010 TO: WILLIAM HUSTON, CITY MANAGER FROM: KRISTI RECCHIA, DIRECTOR OF HUMAN RESOURCES SUBJECT: SALARY RESOLUTION FOR UNREPRESENTED CONFIDENTIAL EMPLOYEES AND ESTABLISHMENT OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM SUMMARY Adoption of the attached Resolutions will authorize compensation adjustments for unrepresented Confidential employees and reduce the City's expenditures in accordance with previous Council direction. RECOMMENDATION It is recommended that the City Council adopt the following Resolutions: Resolution No. 10-51 amending the City's Classification and Compensation Plans for unrepresented Confidential employees; and 2. Resolution No. 10-52 establishing Employer Paid Member Contributions of 3.5% for all employees in the unrepresented Confidential unit. FISCAL IMPACT Cost savings of approximately $12,500 over the 2010-11 fiscal year. BACKGROUND AND DISCUSSION Pursuant to the Meyers-Milias-Brown Act (MMBA), a law that governs labor- management relationships in California local government, public agencies may designate as "confidential" employees those employees who are privy to information that affects employee relations. These employees are excluded from representation in an employee organization that represents other employees in the agency. The City's unrepresented Confidential unit currently consists of five (5) employees. While most City employees are represented by labor organizations for purposes of negotiating changes to wages, hours, and working conditions, Confidential employees have no such representation and rely on the City Manager to ensure they are City Council Agenda Report May 18, 2010 Salary Resolution for Confidential Employees and Establishment of EPMC Page 2 compensated in a fair and equitable manner. Pursuant to the City's Personnel Rules, the City Manager is responsible for preparing the City's Classification and Compensation Plans and for making recommendations to the City Council after considering prevailing rates of pay for comparable work in public and in private employment, current costs of living, suggestions of department heads, the City's ability to recruit and retain good employees, and the City's financial condition and policies. The Council directed staff to begin labor negotiations with the City's represented employees in January 2010 and discuss ways to address a portion of the City's budget shortfall via reductions in labor costs. As the primary mechanism to further reduce expenditures, the Council directed staff to implement an increase in the amount paid by employees towards the CaIPERS retirement plan. Similar in concept to the agreements reached with represented employees, this Salary Resolution provides the City with further reductions in expenditures via employee contributions to CaIPERS. CaIPERS allows contracting employers to pay all or a portion of the normal contributions required to be paid by members -this is called Employer Paid Member Contributions (EMPC). Commencing with the effective date of this Resolution, the City will reduce EPMC for Supervisory employees from the full 7% of salary to 3.5%, with the remaining 3.5% to be paid by employees. In order to implement this change, CaIPERS requires the adoption of a specific resolution, included as Resolution 10-52. Other revisions primarily involve clarification and minor adjustments to policies, procedures, and operational practices as well as a reorganization of the document to make it easier to read. The attached Resolution follows the City Council's direction for this unit. Staff believes adoption of this Resolution ensures that Confidential employees are treated appropriately within the City's organizational structure in light of the current budget situation. ~ ~~~~~~ Kristi Recchia Director of Human Resources City Council Agenda Report May 18, 2010 Salary Resolution for Confidential Employees and Establishment of EPMC Page 3 Attachments: 1. City Council Resolution No. 10-51 2. City Council Resolution No. 10-52 RESOLUTION NO. 10-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN RELATING TO COMPENSATION AND BENEFITS FOR UNREPRESENTED CONFIDENTIAL EMPLOYEES, AND SUPERSEDING RESOLUTION 07-90 WHEREAS, the employees covered by this Resolution constitute "confidential" personnel; and WHEREAS, the City Council has consulted with the City Manager and the Director of Human Resources concerning the proposed employment terms contained herein; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Tustin (the "City") authorizes staff to implement the provisions of this Resolution and modify the City's Classification and Compensation Plans to reflect the changes approved in this Resolution, and that the wages, hours and conditions of employment be adopted and set forth as follows: CHAPTER 1 -GENERAL PROVISIONS Section 1: Classifications A "confidential" employee is broadly defined as an employee who is privy to information that affects employee relations. The employees designated as "confidential" by the City of Tustin are those employees who, in the course of their duties, have access to information relating to the City's administration of the Meyers-Milias-Brown Act (MMBA) (Cal. Gov. Code §3500 et seq.). These employees are not represented by an association or labor organization. The Confidential unit consists of the classifications listed in Appendix A. Section 2: Effective Dates The effective date of each section is June 21, 2010 unless otherwise stated herein. CHAPTER 2 -COMPENSATION Section 3: Salary The monthly salaries for employees covered by this Resolution are hereby incorporated and listed in Appendix A. The attached salary ranges shall constitute the basic compensation plan consisting of five steps in each range. For all employees covered by this Resolution, the hourly rate of pay shall be the monthly rate multiplied by twelve (12) divided by 2080 annual hours. Resolution 10-51 Page 1 of 7 Section 4: Overtime Compensation Unit classifications designated as non-exempt under the Fair Labor Standards Act (ELBA) shall receive overtime compensation in accordance with the rules which govern non-exempt employees in the Tustin Municipal Employees Association (TMEA). Section 5: Bilingual Pay The City shall pay Bilingual Pay in the amount of one hundred dollars ($100) per month (paid bi-weekly) to employees in City-designated positions who demonstrate conversational skill in Spanish or another language approved by the Director of Human Resources as necessary for City business. To qualify for Bilingual Pay, the employee must 1) have a business need to speak Spanish or another City-approved language in the performance of his/her public contact duties on a frequent and recurring basis and 2) successfully pass aCity-sponsored examination for conversational skill. The Director of Human Resources may limit the number of employees receiving Bilingual Pay based on the needs of the City and may discontinue Bilingual Pay for any employee who no longer uses bilingual skills in the course of work. Individuals are eligible to receive Bilingual Pay at the beginning of the first pay period after the Human Resources Department receives the employee's passing test results. CHAPTER 3 -BENEFITS Section 6: Flexible Benefits Plan The City contracts with the California Public Employees Retirement System (CaIPERS) for the provision of medical insurance. All Confidential employees shall receive the minimum amount required under the Public Employees' Medical and Hospital Care Act (PEMHCA) ($105 for calendar year 2010 and $108 for calendar year 2011) as well as an additional amount which is provided under a Section 125 Flexible Benefits program. The amounts below include the minimum amount under PEMHCA. The monthly Flexible Benefits contribution per employee is as follows: Employee Only Employee + 1 Employee + 2 Dependent or more Dependents $750 $875 $1025 Employees who do not take medical insurance through the program offered by the City shall receive $300 per month as the Flexible Benefits Opt-Out contribution. As a condition of receiving such amount, the employee must provide evidence, satisfactory to the City, that he/she has medical insurance coverage comparable to coverage available Resolution 10-51 Page 2 of 7 through the City program. If the employee also opts out of the City's dental insurance, the employee must also provide evidence, satisfactory to the City, that he/she has dental insurance coverage comparable to coverage available through the City program. The Flexible Benefits contribution consists of mandatory and discretionary allocations which may be applied to City sponsored programs, including required payment towards employee medical insurance under the Public Employees' Medical and Hospital Care Act (PEMHCA). Employees may allocate the remaining amount among the following City-sponsored programs: 1. Medical insurance 2. Dental insurance 3. Additional life insurance 4. Vision insurance 5. Deferred compensation 6. Section 125 Flexible Spending Account programs (medical and/or dependent care reimbursement programs) 7. Eligible catastrophic care programs 8. Cash Discretionary allocations are to be made in accordance with program/City requirements including restrictions as to the time when changes may be made in allocations to the respective programs. The Flexible Benefits program is governed by Section 125 of the Internal Revenue Code (IRC). The City retains the right to change administrators. Participation in the Section 125 medical and/or dependent care reimbursement programs is voluntary and employee-funded. Section 7: Retirement The City has contracted with the California Public Employees' Retirement System (CaIPERS) for retirement benefits. Employees covered under this Resolution shall be members of CaIPERS and are subject to all applicable provisions of the City's contract with CaIPERS. The CaIPERS plan in effect for non-safety Miscellaneous employees is the 2% @ 55 formula for Local Miscellaneous members. The plan includes amendments for Section 21573 (Third Level of 1959 Survivor Benefits), Section 20042 (One-year Final Compensation), and Section 21024 (Military Service Credit as Public Service). The City's required contribution to CaIPERS includes both an employer and employee contribution. For Miscellaneous members, the employee contribution is 7% of an employee's wages; the City will contribute 3.5% of the employee's contribution (Employer Paid Member Contribution) and the employee will contribute 3.5%. Resolution 10-51 Page 3 of 7 The employee is required to pay the cost of the 1959 Survivor Benefits Premium. Section 8: Life Insurance The City will provide life insurance for each unit employee and pay the required premiums. The death benefit of said policy shall be the greater of $100,000 or 100% of the employee's base annual salary to the nearest multiple of $1,000, up to a maximum of $200,000. The City will also provide $1,000 per dependent of dependent life insurance and pay the required premiums. Section 9: Short-Term /Long-Term Disability Insurance The City shall provide unit employees with the same short-term disability/long-term disability (STD/LTD) program as is provided to employees in the Tustin Municipal Employees Association (TMEA). Section 10: Textbook and Tuition Reimbursement The City shall provide unit employees with the same textbook and tuition reimbursement benefit as is provided to employees in the Tustin Municipal Employees Association (TMEA). Section 11: Retiree Medical Insurance The City shall provide unit employees with the same retiree medical insurance benefit as is provided to employees in the Tustin Municipal Employees Association (TMEA). CHAPTER 4 -LEAVES OF ABSENCE Section 12: General Leave The City shall provide unit employees with the same paid General Leave benefit as is provided to employees in the Tustin Municipal Employees Association (TMEA). Regular and promotional probationary employees may request to be paid for a maximum of twenty (20) hours of accrued General Leave. Employee requests will be granted provided the employee has at least one-half of their maximum accrual of General Leave in their leave accrual bank. General Leave Cash Out will be paid annually in the first pay period in November. Section 13: Compensatory Time Off Confidential employees are eligible to accrue and use Compensatory Time Off in the same manner as employees in the Tustin Municipal Employees Association (TMEA). Resolution 10-51 Page 4 of 7 Section 14: Holidays The following days shall be holidays for which all employees will receive compensation either in pay or paid time off: January 1 Third Monday in February Last Monday in May July 4 First Monday in September November 11 Thanksgiving Day Day following Thanksgiving Day December 24 December 25 December 31 New Year's Day Presidents' Day Memorial Day Independence Day Labor Day Veterans Day Thanksgiving Day Day after Thanksgiving Day Christmas Eve Christmas Day New Year's Eve Holidays shall be granted, paid and administered for unit employees in the same manner as holidays are provided to employees in the Tustin Municipal Employees Association (TMEA). Section 15: Bereavement Leave The City shall provide unit employees with the same Bereavement Leave benefit as is provided to employees in the Tustin Municipal Employees Association (TMEA). CHAPTER 5 -WORKING CONDITIONS Section 16: Alternate Work Schedules Confidential employees are eligible to participate in the City's Alternate Work Schedule program under the same terms and conditions as employees in the Tustin Municipal Employees Association (TMEA). Section 17: Rest Periods Confidential employees are entitled to rest periods under the same terms and conditions as employees in the Tustin Municipal Employees Association (TMEA). Resolution 10-51 Page 5 of 7 Passed and adopted at a regular meeting of the Tustin City Council held on the 18th day of May 2010. JERRY AMANTE Mayor PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 10-51 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18th day of May 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Resolution 10-51 Page 6 of 7 APPENDIX A -CONFIDENTIAL MONTHLY SALARY RANGES Effective June 21, 2010 Classification A B -- -- _ C D ~ -- E Executive Coordinator 4878.95 5128.78 5391.40 5667.47 5957.67 Executive Secreta 4252.90 4470.67 4699.60 4940.24 5193.21 Human Resources Anal st 5284.77 5555.38 5839.85 6138.88 6453.22 Human Resources S ecialist 4179.21 4393.21 4618.17 4854.64 5103.23 Senior Human Resources S ecialist 4854.64 5103.23 5364.54 5639.24 5928.00 Resolution 10-51 Page 7 of 7 RESOLUTION NO. 10-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ESTABLISHING EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) FOR UNREPRESENTED CONFIDENTIAL EMPLOYEES WHEREAS, the City Council of the City of Tustin, California has the authority to implement California Government Code Section 20691; and WHEREAS, the City Council has a written labor policy or agreement which specifically provides for a portion of the normal member contributions to be paid by the employer; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Council of a Resolution to commence said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council has identified the following conditions for the purpose of its election to pay EPMC: A. This benefit shall apply to all employees in the unrepresented Confidential unit. B. This benefit shall consist of paying three and one-half percent (3.5%) of the normal member contributions as EPMC. C. The effective date of this Resolution shall be June 21, 2010. NOW, THEREFORE, BE IT RESOLVED that the City Council elects to pay EPMC, as set forth above. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 18t" day of May 2010. JERRY AMANTE Mayor Resolution 10-52 Page 1 of 2 ATTEST: PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 10-52 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18th day of May 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Resolution 10-52 Page 2 of 2