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HomeMy WebLinkAbout14 SALARY RESOLUTION FOR UNREPRESENTED PART-TIME~`~ ~ ~ r~F,;; L ~~;~ t t r:~';~ `''~~~~~ ~~-' AGENDA REPORT Agenda Item 14-_ Reviewed: City Manager Finance Director MEETING DATE: MAY 18, 2010 TO: WILLIAM HUSTON, CITY MANAGER FROM: KRISTI RECCHIA, DIRECTOR OF HUMAN RESOURCES SUBJECT: SALARY RESOLUTION FOR UNREPRESENTED UNREPRESENTED PART- TIME NON-BENEFITTED EMPLOYEES AND ESTABLISHMENT OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) FOR EMPLOYEES WHO ARE MEMBERS OF CALPERS SUMMARY Adoption of the attached Resolutions will authorize compensation adjustments for unrepresented Part-Time Non-Benefitted 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: 1. Resolution No. 10-53 amending the City's Classification and Compensation Plans for unrepresented Part-Time Non-Benefitted employees; and 2. Resolution No. 10-54 establishing Employer Paid Member Contributions of 1.5% for all employees in the unrepresented Part-Time Non-Benefitted unit who are members of the California Public Employees' Retirement System. FISCAL IMPACT Cost savings of approximately $5,000 over the 2010-11 fiscal year. BACKGROUND AND DISCUSSION A "part-time" position is a position that 1) has a work week of fewer hours than the full work week established for afull-time position and 2) is compensated on an hourly basis. The City has two (2) types of part-time employee classifications: regular part-time employees and Part-Time Non-Benefitted employees. Regular part-time classifications are semi-permanent budgeted positions that receive benefits in accordance with the bargaining unit or employee group to which they belong. Part-Time Non-Benefitted employees are hourly, temporary and seasonal part-time employees who are not represented by an association or labor organization and are not entitled to benefits, City Council Agenda Report May 18, 2010 Salary Resolution for Part-Time Non-Benefitted Employees and Establishment of EPMC Page 2 unless otherwise mandated by law. This Resolution applies only to unrepresented employees in the Part-Time Non-Benefitted unit. In accordance with federal law, all part-time employees must be enrolled in Social Security or another "qualified" retirement plan. Since the City does not participate in Social Security, most part-time employees are enrolled in the City's IRS Section 457 deferred compensation plan. Employees are required to contribute 5.5% of salary to the deferred compensation plan every pay period and the City contributes an additional 2% of salary, for a total contribution of 7.5%. The City's contract with the California Public Employees' Retirement System (CaIPERS) states that persons compensated on an hourly basis may be excluded from the retirement system. Nevertheless, in rare circumstances apart-time employee may be enrolled in the CaIPERS retirement plan. Effective with the implementation of this Resolution, for any Part-Time Non-Benefitted employee enrolled in CaIPERS, the City will contribute 1.5% of the employee's contribution (Employer Paid Member Contribution) and the employee will contribute 5.5%. The attached Resolution follows the City Council's direction for this uni adoption of this Resolution ensures that Part-Time Non-Benefitted treated appropriately within the City's organizational structure in light budget situation. Kristi Recchia Director of Human Resources Attachments: t. Staff believes employees are of the current 1. City Council Resolution No. 10-53 2. City Council Resolution No. 10-54 RESOLUTION NO. 10-53 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN RELATING TO COMPENSATION FOR UNREPRESENTED PART-TIME NON-BENEFITTED EMPLOYEES WHEREAS, the employees covered by this Resolution constitute part-time non- benefitted personnel; and WHEREAS, the City Council has consulted with the City Manager and 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: Section 1: Classifications A "part-time" position is a position that 1) has a work week of fewer hours than the full work week established for afull-time position and 2) is compensated on an hourly basis. Part-Time Non-Benefitted employees are not represented by an employee association and are not entitled to benefits, unless otherwise mandated by law. Classifications in the Part-Time Non-Benefitted unit are listed in Appendix A. Section 2: Effective Dates The effective date of each section is June 21, 2010, unless otherwise stated herein. Section 3: Salary The hourly salaries for employees covered by this Resolution are hereby incorporated and listed in Appendix A. Section 4: Retirement In accordance with federal law, all part-time employees must be enrolled in Social Security or another "qualified" retirement plan. Since the City does not participate in Social Security, part-time employees will be enrolled in the City's IRS Section 457 deferred compensation plan. Employees are required to contribute 5.5% of salary to the deferred compensation plan every pay period. The City will contribute an additional 2% of salary, for a total contribution of 7.5%. Resolution 10-53 Page 1 of 3 ' The City's contract with the California Public Employees' Retirement System (CaIPERS) states that persons compensated on an hourly basis may be excluded from the retirement system. Nevertheless, in rare circumstances apart-time employee may be enrolled in the CaIPERS retirement plan. For any part-time employee enrolled in CaIPERS, 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 1.5% of the employee's contribution (Employer Paid Member Contribution) and the employee will contribute 5.5%. Passed and adopted at a regular meeting of the Tustin City Council held on the 18t" 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. 10-53 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18t" day of May 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Resolution 10-53 Page2of3 APPENDIX A -PART-TIME NON-BENEFITTED HOURLY SALARY RANGES Effective June 21, 2010 Classification ~ A B C ~ Q ~ E ~ ! F G Administrative Intern - PT 12.01 12.63 13.28 13.96 14.67 n/a n/a Information Technolo Intern - PT 12.63 13.28 13.96 14.67 15.42 n/a n/a Maintenance Aide PT 10.24 10.76 11.31 11.89 12.50 n/a n/a Master Reserve Officer - PT 30.04 31.57 33.19 34.89 36.68 n/a n/a Office Assistant - PT 16.09 16.91 17.78 18.69 19.65 n/a n/a Police Cadet - PT 10.01 10.52 11.06 11.63 12.23 n/a n/a Police Communications Officer II - PT 26.51 27.87 29.30 30.80 32.37 n/a n/a Police Reserve Officer L1 - PT 22.71 n/a n/a n/a n/a n/a n/a Police Reserve Officer L2 - PT 17.00 n/a n/a n/a n/a n/a n/a Police Reserve Officer L3 - PT 14.74 n/a n/a n/a n/a n/a n/a Rece tionist - PT 10.14 10.66 11.20 11.78 12.38 n/a n/a Recreation Facilities Assistant - PT 15.12 15.89 16.70 17.56 18.46 n/a n/a Recreation Leader - PT 9.41 9.89 10.39 10.93 11.49 12.07 12.69 Recreation Leader B - PT 11.12 11.69 12.29 12.92 13.58 14.31 15.04 Recreation Pro ram Assistant - PT 13.21 13.89 14.60 15.34 16.13 n/a n/a Resolution 10-53 Page 3 of 3 RESOLUTION NO. 10-54 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 PART-TIME NON- BENEFITTED EMPLOYEES WHO ARE MEMBERS OF CALPERS WHEREAS, the City's contract with the California Public Employees' Retirement System (CaIPERS) states that persons compensated on an hourly basis may be excluded from the retirement system; and WHEREAS, in rare circumstances apart-time hourly employee may nevertheless be enrolled in the CaIPERS retirement plan; and 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 Part-Time Non-Benefitted unit who are members of CaIPERS. B. This benefit shall consist of paying one and one-half percent (1.5%) 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 18th day of May 2010. Resolution 10-54 Page 1 of 2 JERRY AMANTE Mayor 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. 10-54 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18t" day of May 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER City Clerk Resolution 10-54 Page 2 of 2