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SARATOGA CITY COUNCIL
MEETING DATE: July 6, 2011 AGENDA ITEM:
DEPARTMENT: City Attorney CITY MANAGER: Dave Anderson
PREPARED BY: Deanna Mouser DIRECTOR: Richard Taylor Chief Labor Negotiator City Attorney
SUBJECT: Unrepresented Regular Employee (Human Resources Manager)
RECOMMENDED ACTION: Adopt resolution and authorize the Mayor to sign the voluntary compensation and benefits
waiver agreement signed by the Human Resources Manager.
BACKGROUND:
The Human Resources Manager position is a regular, single incumbent position. The position is
unrepresented due to the nature of the position being confidential based on its role on the City’s
labor negotiations team and its ongoing labor relations responsibilities and duties performed on behalf of the City.
Recognizing that the City is still enduring a period of difficult economic conditions and
recognizing that significant structural changes to employee benefits are necessary for the long-
term fiscal health of the City, the Human Resources Manager has voluntarily agreed to the following items for long-term savings and short-term savings:
Long-term:
• For employees hired into confidential Human Resources positions after July 1, 2011, the
City’s contribution for medical insurance will be a specific amount set for each tier of coverage, with the employee paying the amount above the City’s contribution level. ($600
for employee only, $1200 for employee and one dependent, and $1500 for employee and two
or more dependents).
• For employees hired into confidential Human Resources positions after the City completes the PERS-required process, the retirement plan will be a second tier plan of 2% at age 60
plan using a three-year average compensation to determine retirement benefits.
• Elimination of the longevity steps (performance incentive compensation) (impacting both the
incumbent HR Manager and future hires).
Short-term:
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• Effective July 1, 2011, the Human Resources Manager will contribute 7% of her
compensation on a pre-tax basis for the employee share of the CalPERS retirement program.
• These items will remain in place for 4 years and will continue thereafter unless negotiated otherwise.
• Council ratification of the attached agreement is an agreement that this agreement is
sufficient to address the HR Manager’s portion of the budget shortfall and further reductions
will not be sought from the HR Manager.
The Human Resources Manager made this offer voluntarily and was not asked to do so by any
City representative or member of the City Council.
FISCAL IMPACTS:
In FY 2011-12, there will be a savings of approximately $9,300.00. In addition, there will be
ongoing cumulative savings.
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The Human Resources Manager would continue to receive existing benefits.
ALTERNATIVE ACTION(S):
N/A
FOLLOW UP ACTION(S):
Payroll schedule will be adjusted to deduct the employee portion of the CALPERS contribution in the amount of 7% from the gross salary of the Human Resources Manager. In addition,
payroll and human resource divisions will remove the position of Human Resources Manager as
an eligible position for Performance Incentive Compensation (Longevity) effective July 1, 2011.
The future scheduled longevity pay for the current Human Resources Incumbent will be
cancelled.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda
item and was included in the packet made available on the City’s website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library
each
Monday in advance of the Council meeting.
ATTACHMENTS:
1. Resolution
2. Voluntary Agreement by Human Resources Manager Incumbent