HomeMy WebLinkAbout11 PART-TIME NON-BENEFITTED EMPLOYEES COMPENSATION AND BENEFITSDocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6 11
Agenda Item 96
Reviewed. WB
�J1 AGENDA REPORT City Manager
Finance Director 1
MEETING DATE: DECEMBER 5, 2023
TO: NICOLE BERNARD, ACTING CITY MANAGER
FROM: DERICK YASUDA, DIRECTOR OF HUMAN RESOURCES
SUBJECT: PART-TIME NON-BENEFITTED EMPLOYEES COMPENSATION AND
BENEFITS
SUMMARY
Adoption of the attached Resolution will authorize modified terms and conditions of
employment for unrepresented Part -Time Non-Benefitted employees as required by
State law.
RECOMMENDATION
Adopt Resolution No. 23-61 to update the Part -Time Non-Benefitted Employees Salary
Resolution.
FISCAL IMPACT
The additional cost to the City is estimated to be $8,000 for the remainder of Fiscal Year
2023-24 and approximately $16,000 per fiscal year going forward.
BACKGROUND AND DISCUSSION
The Part -Time Non-Benefitted employee group consists of a variety of part-time, at -will
positions that supplement the City's operations. In contrast with full-time positions, Part -
Time Non-Benefitted positions are budgeted by total dollars, not number of approved
positions, so staffing levels fluctuate throughout the year. At any given time, there are
approximately 133 Part -Time Non-Benefitted employees active in the payroll system.
The vast majority of these employees (typically 75% - 80%) work in the Parks and
Recreation Department supporting their recreation and human services programs.
Since this is an unrepresented employee group, there are no labor negotiations —
instead, the City Council establishes terms and conditions of employment after
consultation with the City Manager and Director of Human Resources. With the
proposed Resolution, staff is simply updating the Resolution to incorporate two changes
in compensation and benefits that are required by State law as of January 1, 2024.
First, the hourly salary rates for all job classifications that are now paid the current
minimum wage of $15.50 per hour will be increased to the new State minimum wage of
$16.00 effective January 1, 2024, as required by the State's minimum wage law.
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City Council Agenda Report
December 5, 2023
Part -Time Non-Benefitted Employees Compensation and Benefits
Page 2
Second, annual accrual of sick leave for all Part -Time Non-Benefitted employees will be
increased from 24 hours (or three work days) per year to 40 hours (or five work days)
per year, effective January 1, 2024, as required by SIB 616, which amended the
California's Healthy Workplaces, Healthy Family Act of 2014.
No other changes are proposed at this time, however staff intends to conduct further
research to determine if additional compensation adjustments are necessary based on
salary compaction, labor market conditions, or other factors.
F7Doc�_r
uSigned by:
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Iul�pVa a
Director of Human Resources
Attachment:
1. City Council Resolution No. 23-61
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RESOLUTION NO. 23-61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN RELATING
TO COMPENSATION FOR UNREPRESENTED PART-TIME NON-BENEFITTED
EMPLOYEES AND SUPERSEDING RESOLUTION 22-53
WHEREAS, the employees covered by this Resolution constitute part-time non-
benefitted personnel; and
WHEREAS, the City Council has consulted with the City Manager 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 a full-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 that are uniquely
assigned to the Part -Time Non-Benefitted unit are listed in Appendix A. The City may also
appoint a Part -Time Non-Benefitted employee to any job classification that has a full-time
counterpart in another employee group.
Section 2: Effective Dates
The effective date of each section is January 1, 2024, unless otherwise stated herein.
Section 3: Salary
The hourly salary rates for employees covered by this Resolution are hereby incorporated
and listed in Appendix A.
The hourly salary rate for Master Reserve Officer is equivalent to the hourly salary rate of
Police Officer Step A and will be automatically adjusted any time the hourly salary rate
for Police Officer Step A is adjusted.
The hourly salary rate for any Part -Time Non-Benefitted employee in a job classification
with a full-time equivalent (not listed in Appendix A) will be the same as the equivalent
step in the hourly salary range of the corresponding full-time job classification, as noted
in the applicable Memorandum of Understanding or Salary Resolution and will be
Resolution 23-61
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automatically adjusted any time the hourly salary range for the full time equivalent is
adjusted.
Employees in the classification of Temporary Employee may receive an hourly wage at
any level in the salary range. While the salary step for a Temporary Employee may be
adjusted, the hourly salary for an employee in this classification is not expected to
progress from one step to the next in the same manner as a full-time employee, as these
are not merit increase steps.
Section 4: Acting Pay
An employee assigned to temporarily work in a higher classification normally occupied by a
full-time employee will receive Acting Pay in an amount equal to 5% of the employee's base
pay. Acting Pay will be paid effective the beginning of the first full pay period in which the
employee serves in the Acting assignment.
Since the Public Employees' Pension Reform Act of 2013 (PEPRA) prohibits the City from
providing a CalPERS retired annuitant with any benefit, incentive, compensation in lieu of
benefits, or other form of compensation in addition to the hourly pay rate, CalPERS retired
annuitants are not eligible to receive Acting Pay.
If the employee is enrolled in a retirement plan through the California Public Employees'
Retirement System (CaIPERS), the monetary value of Acting Pay shall be reported to
CalPERS as Special Compensation for classic members as defined under the Public
Employees' Pension Reform Act (PEPRA) of 2013. The parties agree that Acting Pay
("Temporary Upgrade Pay") is described in Title 2 CCR, Section 571(a)(3) as a "premium
pay" — a type of reportable special compensation. This pay is not reportable as special
compensation for employees defined as "new members" under PEPRA. It is ultimately
CalPERS who determines whether any form of pay is reportable special compensation.
Section 5: Retirement
IRS Section 457 OBRA Deferred Compensation Plan
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 Non-Benefitted employees will be enrolled in the City's IRS Section
457 OBRA 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%.
Any employee who is required to enroll in the City's IRS Section 457 OBRA deferred
compensation plan has the option to make additional voluntary contributions to the plan
in addition to the mandatory employee contribution of 5.5% of salary. Part -Time
employees who are not required to enroll in the City's IRS Section 457 OBRA deferred
compensation plan (i.e., employees enrolled in the CalPERS retirement plan or CalPERS
Resolution 23-61
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retired annuitants) are not permitted to make any contributions to the OBRA deferred
compensation plan.
CalPERS Retirement Plan
The City's contract with CalPERS states that persons compensated on an hourly basis
are excluded from the retirement system, therefore Part -Time Non-Benefitted employees
will generally not be enrolled in the CalPERS retirement system. Nevertheless, a Part -
Time Non-Benefitted employee may be enrolled in the CalPERS retirement plan if the
employee is already an active member of the CalPERS retirement system or if the
employee has or will exceed 1,000 hours worked in a fiscal year.
Any Part -Time Non-Benefitted employee enrolled in the CalPERS Miscellaneous plan by
December 31, 2011 shall be enrolled in CalPERS 2% @ 55 plan in accordance with
Government Code Section 21354 for Local Miscellaneous members. The plan includes
both an employer and employee contribution. These employees are responsible for
paying the employee contribution of seven percent (7%) of the employee's wages through
a pre-tax payroll deduction. The City has adopted the CalPERS resolution in accordance
with IRS Code section 414(h)(2) to ensure that the employee contribution is made on a
pre-tax basis. The plan has been amended to include Section 21573 (Third Level of 1959
Survivor Benefits), Section 20042 (One -Year Final Compensation), and Section 21024
(Military Service Credit as Public Service). The employee is responsible for paying the
employee portion of the 1959 Survivor benefit premium.
Any Part -Time Non-Benefitted employee enrolled in the CalPERS Miscellaneous plan on
or after January 1, 2012, who is a "classic member" as defined by the Public Employees'
Pension Reform Act (PEPRA) of 2013 shall be enrolled in CalPERS 2% @ 60 plan for
Local Miscellaneous members. The plan includes both an employer and employee
contribution. These employees are responsible for paying the employee contribution of
7% of the employee's wages through a payroll deduction. The City has adopted the
CalPERS resolution in accordance with IRS Code section 414(h)(2) to ensure that the
employee contribution is made on a pre-tax basis. This plan provides retirement benefits
based on the highest annual average compensation earnable during the three
consecutive years of employment immediately preceding the effective date of his or her
retirement or as designated by the employee in accordance with Government Code
section 20037. The plan provides for 3rd level of 1959 Survivor benefits with the
employee paying the employee portion of the premium.
Any Part -Time Non-Benefitted employee enrolled in the CalPERS Miscellaneous plan
who is first employed by the City on or after January 1, 2013, and is defined as a "new
member" by the Public Employees' Pension Reform Act (PEPRA) of 2013, shall be
enrolled in the CalPERS 2% @ 62 plan for Local Miscellaneous members. These
employees are responsible for paying the employee contribution of one-half of the total
normal cost of the plan, as defined by CalPERS, through a payroll deduction. Effective
the pay period including July 1, 2021, the employee contribution is 6.25%. This amount
will be determined by CalPERS in the future. The City has adopted the CalPERS
Resolution 23-61
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resolution in accordance with IRS Code section 414(h)(2) to ensure that the employee
contribution is made on a pre-tax basis. This plan provides retirement benefits based on
the highest annual average compensation earnable during the three consecutive years
of employment immediately preceding the effective date of his or her retirement or as
designated by the employee in accordance with Government Code Section 7522.32(a).
The plan provides for 3rd level of 1959 Survivor benefits with the employee paying the
employee portion of the premium.
CalPERS Retired Annuitants
Pursuant to the Public Employees' Pension Reform Act of 2013 (PEPRA), the City is
prohibited from providing a CalPERS retired annuitant with any benefit, incentive,
compensation in lieu of benefits, or other form of compensation in addition to the hourly
pay rate. Accordingly, the City will not enroll retired annuitants in the IRS Section 457
OBRA deferred compensation plan. Further, since participation in a deferred
compensation plan is considered a benefit, retired annuitants are not permitted to
voluntarily enroll in any of the City's other Section 457 deferred compensation plans.
Section 6: Paid Sick Leave
All Part -Time Non-Benefitted employees, other than CalPERS retired annuitants, will be
provided with paid sick leave in accordance with California's Healthy Workplaces, Healthy
Family Act of 2014, as amended by SB 616 effective January 1, 2024. In accordance with
the California Public Employees' Pension Reform Act of 2013 (PEPRA), CalPERS retired
annuitants are not entitled to paid sick leave or any other compensation or benefits in
addition to the hourly base salary.
At the beginning of each fiscal year, on the pay period that includes July 1, the City will
credit each Part -Time Non-Benefitted employee with 40 hours (or five work days for any
employee whose regular work schedule exceeds eight hours per day) of paid sick leave
for use under the terms of this policy. Employees who are hired after the start of any given
fiscal year will also be credited with 40 hours (or five work days) of paid sick leave upon
initial employment. At the end of each fiscal year, any unused paid sick leave from the
previous 12-month period will expire and will not be carried over to the next 12-month
period.
An employee is eligible to begin using hours from his/her accrued paid sick leave bank
after 90 consecutive days of employment with the City of Tustin. If an employee separates
from the City of Tustin and is re -hired within one year from the employee's separation
date, the 90 days of service requirement may be satisfied cumulatively over the two
periods of employment.
Paid sick leave is not a privilege which an employee may use at his/her discretion. Paid
sick leave may only be used for the following reasons, in accordance with state law:
1. For the employee's own diagnosis, care, or treatment of an existing health
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condition or preventative care.
2. For the diagnosis, care, or treatment of an existing health condition or preventative
care for an employee's family member. For purposes of this policy, "family
member" includes an employee's child, spouse or registered domestic partner,
parent, grandparent, grandchild, or sibling.
3. With appropriate certification, to obtain relief or services related to being a victim
of domestic violence, sexual assault, or stalking, including: a temporary restraining
order or restraining order; other injunctive relief to help ensure the health, safety
or welfare of the employee or his/her children; medical attention for injuries caused
by domestic violence, sexual assault, or stalking; services from a domestic
violence shelter, program, or rape crisis center as a result of domestic violence,
sexual assault, or stalking; psychological counseling related to an experience of
domestic violence, sexual assault, or stalking; or safety planning and other actions
to increase safety from future domestic violence, sexual assault, or stalking,
including temporary or permanent relocation.
An employee may use no more than 40 hours (or five work days for any employee whose
regular work schedule exceeds eight hours per day) of paid sick leave per fiscal year and
must use paid sick leave in increments of no less than two (2) hours per day.
In order to use paid sick leave, an employee must notify his/her supervisor of the need
for such leave and its probable duration at least one hour prior to the scheduled start of
the employee's shift. Paid sick leave shall not be granted unless such advance notice has
been given; however, the department head may grant an exception to this policy when it
is determined that the employee's failure to notify his/her supervisor in a timely manner
was due to circumstances beyond the employee's control. A supervisor may require an
employee to confirm that the requested use of paid sick leave meets one of the purposes
specifically provided for in the law.
Employees will be compensated for any sick leave hours used under this policy at the
employee's regular rate of pay for the workweek in which the employee uses paid sick
leave (typically, this is simply the employee's base hourly rate of pay). Paid sick leave is
not considered hours worked for purposes of calculating overtime. For any employees
who are enrolled in the CaIPERS retirement system (due to previous CaIPERS member
status), paid sick leave hours are reportable to CaIPERS in accordance with Government
Code section 20630.
An employee is not entitled to compensation for any unused accrued paid sick leave upon
separation from employment. An employee who is promoted directly from a Part -Time
Non-Benefitted position to a full-time or part-time benefitted position will not carry over
any paid sick leave hours remaining at the time of promotion; instead, the employee will
be eligible for accrual and use of General Leave under the terms of the applicable
memorandum of understanding or salary resolution.
Section 7: At -Will Employment Relationship
Resolution 23-61
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Employment in a Part -Time Non-Benefitted position is at -will and based on continued
programmatic needs. No guarantees are made related to hours or longevity. Employment
may be terminated at any time, with or without cause. For all Part -Time Non-Benefitted
employees, hours worked will typically vary from week to week and will generally not exceed
1,000 hours per fiscal year (July 1 through June 30). For any CalPERS retired annuitants
employed as Part -Time Non-Benefitted employees, hours worked will not exceed 960 hours
per fiscal year.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 5th day of December 2023.
AUSTIN LUMBARD,
Mayor
ATTEST:
ERICA N. YASUDA,
City Clerk
APPROVED AS TO FORM:
DocuSigned by:
�" Z17
DA 8EF31ktENDIG,
City Attorney
Resolution 23-61
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STATE OF CALIFORNIA )
COUNTY OF ORANGE 1 SS
CITY OF TUSTIN
I, Erica N. Yasuda, 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. 23-61 was duly passed
and adopted at a regular meeting of the Tustin City Council, held on the 5t" day of
December 2023, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
ERICA N. YASUDA,
City Clerk
Resolution 23-61
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APPENDIX A - PART-TIME NON-BENEFITTED HOURLY SALARY RANGES
Effective the pay period that includes January 1, 2024
Classification
Step A
Administrative Intern PT
$
16.00
Graduate Intern PT
$
20.00
Maintenance Aide PT
$
16.00
Master Reserve Officer PT*
$
41.42
Office Assistant PT
$
19.00
Parking Control Officer PT
$
19.00
Police Cadet PT
$
16.00
Police Reserve Officer - Level I PT
$
24.00
Police Reserve Officer - Level 11 PT
$
19.00
Police Reserve Officer - Level II I PT
$
16.00
Recreation Facilities Assistant PT
$
18.00
Recreation Leader I PT
$
16.00
Recreation Leader II PT
$
17.00
Recreation Program Assistant PT
$
20.00
Classification
Step A
Step B
Step C
Step D
Step E
Step F
Temporary Employee
$ 16.00
$ 20.00
$ 25.00
$ 30.00
$ 35.00
$ 40.00
Step G
Step H
Step I
Step J
Step K
Step L
$ 45.00
$ 50.00
$ 55.00
$ 60.00
$ 65.00
$ 70.00
Step M
Step N
Step O
Step P
Step Q
Step R
$ 75.00
$ 80.00
$ 85.00
$ 90.00
$ 95.00
1 $ 100.00
Step S
Step T
Step U
Step V
$ 105.00
$ 110.00
$ 115.00
$ 120.00
Notes:
*The hourly salary rate for Master Reserve Officer is equivalent to the hourly salary rate of Police Officer Step A and will
be adjusted any time the hourly salary rate for Police Officer Step A is adjusted
**The hourly salary rate for any Part -Time Non-Benefitted employee in a job classification with a full-time equivalent (not
listed on this salary schedule) will be the same as the hourly salary rate of the full-time job classification, as noted in the
applicable Memorandum of Understanding or Salary Resolution for the full-time equivalent
Resolution 23-61 Exhibit
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