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HomeMy WebLinkAboutCity Council Resolution 11-070 RESOLUTION NO. 11- 070 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING MEMORANDUM OF UNDERSTANDING FOR THE SARATOGA MANAGEMENT ORGANIZATION (SMO) July 1, 2011 to June 30, 2015 WHEREAS, representatives of the City and SMO have reached agreement on matters relating to the employment conditions of said employees, as reflected by the written Memorandum of Understanding, which is attached hereto and made a part hereof; and WHEREAS, the Memorandum of Understanding was ratified by the SMO membership; and WHEREAS, this Council finds that the terms and conditions contained in said Memorandum of Understanding fair and proper and in the best interest of the City; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Saratoga the terms and conditions contained in said Memorandum of Understanding for the Saratoga Management Organization July 1, 2011 to June 30, 2015 attached as Exhibit A to this resolution are hereby adopted. The above and foregoing resolution was passed and adopted by the Saratoga City Council at a regular meeting held on the 2 day of November 2011, by the following vote: AYES: Council Members Manny Cappello, Emily Lo, Jill Hunter, Vice Mayor Chuck Page, Mayor Howard Miller NAYES: None ABSTAIN: None ABSENT: None L-1 61./ Howard A. Miller, Mayor ATTEST: i. .LIL DATE: 3 9 7 Ann ulhvan, City Clerk MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 I. INTRODUCTION This Memorandum of Understanding "MOU or "AGREEMENT" dated July 1, 2011, is between the City of Saratoga, through its designated representatives, hereinafter referred to as "CITY" and the Saratoga Management Organization, hereinafter referred to as "SMO The members of SMO are the persons holding the positions listed below in Section II. Members of SMO are referred to herein as "SMO members" and "employees." This MOU complies with the provisions of the Meyers -Milias-Brown Act, as contained in Section 3500, et seq., of the Government Code of the State of California in that the employer employee representatives noted herein did meet in good faith and did reach an understanding on those matters within the scope of representation. This MOU also complies with Resolution No. 509 -2 relating to employer- employee relations, and Resolution No. 489 -2, establishing the procedure for meeting and conferring with recognized employee organizations. II. POSITIONS REPRESENTED BY SMO Assistant City Manager Public Works Director Community Development Director Finance and Administrative Services Director Recreation and Facilities Director III. GENERAL CONDITIONS A. Total Agreement This Agreement sets forth the full and entire understanding of the parties for the period beginning July 1, 2011, and continuing through June 30, 2015. This Agreement shall remain in effect until a new Agreement is signed by both parties. This Agreement supersedes any prior understandings, representations, agreements or promises of any kind, whether written, oral, express, or implied between the parties (including all prior Memoranda of Understanding) with respect to the subject matter of the Agreement. No verbal statement or other amendments, except an amendment mutually agreed upon between the parties and in writing attached to this Agreement designated as an amendment to this Agreement, shall supersede or vary the provisions in this Agreement. If any provision of this Agreement is adjudged to be void or unenforceable, the remainder of the Agreement shall nevertheless remain in effect. The parties have reached agreement on terms for four years and have agreed that no further economic changes are anticipated to be needed. The parties can agree to change terms in the MOU if mutual written agreement is reached as stated in the prior paragraph. 1 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 Except as specifically provided in this Agreement, it is agreed and understood that SMO waives its right, and agrees that the CITY shall not be required to negotiate with respect to any subject or matter covered in this Agreement or with respect to any other matters within the scope of negotiations, during the term of this Agreement. The waiver of any breach, term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. B. City Council Approval City Council approved the terms of this MOU incorporated in Resolution No. 11 -070 adopted on November 2, 2011. C. Validity of Memorandum Should any article, section, or portion of this Agreement be held unlawful and unenforceable by any court of competent jurisdiction, the court's decision shall only apply to the specific article, section, or portion of this Agreement directly specified in the decision, and the remainder of this Agreement shall not be affected by the decision. IV. AT -WILL STATUS AND SEVERANCE All members of SMO are at -will employees as stated in the Personnel Rules and serve at the pleasure of the City Manager. Should the City Manager choose to terminate any SMO member, the following severance provisions apply and will be made available to the SMO member if the separated SMO member signs and agrees to be bound by a written general release agreeing not to sue and waiving claims and recovery against the City and all City representatives and agents. Starting on the one -year anniversary of the date of hire, SMO members shall be eligible for a general release agreement with (A) a severance payment equal to three (3) month's salary; and (B) Health Insurance -and Dental Insurance benefits specified in this agreement for a three (3) month period after termination. The severance payment and continuation of benefits listed above shall be increased by one (1) month for each year on the member's anniversary date up to a maximum of six (6) months' severance pay and benefits. At the discretion of the SMO member whose employment has been terminated, the severance payment shall be paid either in a lump sum, or in bi- weekly payments, beginning within ten (10) days of the effective date of termination or within ten (10) days of the effective date of the signed general release, whichever is later. If a SMO member selects bi- weekly payments, the SMO member may later choose to receive a lump sum payment for the balance of the monthly severance payments. The change from bi- weekly payments to a lump sum payment for the balance will be processed as soon as reasonably feasible and by no later than two weeks after the employee chooses to change to a lump sum payment for the balance. The severance payment shall be based on the SMO member's then monthly salary. 2 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 Severance benefits will be provided as follows: Health Insurance: The SMO member must enroll in COBRA, directly through their existing health plan provider, for extended health insurance. The SMO member must pay the health insurance premium directly to his/her provider and submit a copy of the premium invoice and proof of payment to the City for reimbursement. Dental Insurance: The City is able to directly enroll the SMO member in COBRA, through the City's carrier, for extended dental insurance. The SMO member must contact the Human Resources Division and complete any requested documents to activate acceptance of COBRA for dental insurance. The Human Resources Division will provide to the SMO member a letter detailing all of the above instructions, and providing the necessary paperwork in a timely fashion, sufficient to ensure that the SMO member does not become ineligible for continued coverage. V. SALARY ADMINISTRATION A. Salary Ranges Salary data for each position represented by SMO is periodically collected from the following list of comparable cities: Los Altos Menlo Park San Carlos Cupertino Los Gatos Morgan Hill Campbell The Department Directors and Assistant City Manager are internally aligned, as the incumbents concur that the complexity and level of responsibility in the work is similar, regardless of assigned department. When salary surveys are conducted, salary data is collected for each classification. The salary range is determined by taking the salary data average of the five classifications. The CITY will be adjusting the salary ranges administratively effective July 1, 2012, as a result of the FY 2011 -12 compensation study and administratively every two years thereafter according to salary survey compensation data, ensuring that the CITY pays the average of its comparable cities. 1. Adjustments to Salary Range as the result of a Salary Survey and Anniversary Date: Any salary range adjustments for a classification implemented by the CITY will not establish a new salary anniversary date for employees serving in that classification. 2. Adjustments to Salary Range as the result of a Salary Survey and Retention of Step: Whenever the schedule of compensation for a classification is revised, each incumbent in a position to which the revised schedule applies shall be paid at the same step in the revised range as the step at which the employee was paid in the previous range. See Attachment A: SMO 5 -Step Salary Range Table for FY2011 -2012 3 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 B. 5 -Step Salary Plan and Cost of Living Adjustment 1. Cost of Living Adjustment For fiscal year 2011 -12, each SMO member shall receive a cost -of- living adjustment of one and 37/100 percent (1.37 For each subsequent year of this MOU, each SMO member shall receive an annual cost -of- living adjustment of no less than one percent (1.0 and no greater than two and one -half percent (2.5 as based upon the annual average for the 12 month period of January 1 to December 31 of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI -U)" for the "San Francisco Oaldand -San Jose" region. If the annual average falls below one percent (1.0 each SMO member shall nevertheless receive a minimum one percent (1.0 cost -of- living adjustment; if the above Index increases above two and one -half percent (2.5 each SMO member shall nevertheless receive a maximum two and one -half percent (2.5 cost -of- living adjustment. 2. Base Salary Employees occupying a position in a classification covered by this Memorandum shall be paid a base salary within the range established for that position's classification. 3. Placement Within Range The CITY will determine salary placement consistent with the personnel rules. 4. Progression Within Range Each employee will be eligible to receive a salary increase to the next higher step within the range of their assigned classification upon the employee's anniversary date of hire. 5. Eligibility for Progression within Range All regular employees will be evaluated on an annual basis and will be eligible to advance in their salary range based on annual performance evaluation results. No increase in salary shall be automatic solely upon completion of a specified period of service. All increases shall be contingent upon a satisfactory annual evaluation of the employee's performance, and shall require recommendation of the City Manager. In the case that an employee receives a cumulative rating of less than three (3) points on the annual performance evaluation, indicating a cumulative rating less than "meets expectations the employee will not receive a salary increase other than an approved and budgeted cost -of- living increase. An employee who is denied an increase in salary may discuss such denial with the City Manager. The decision of the City Manager shall be final. An employee who has received a cumulative rating of three (3) points or greater during the annual employee performance evaluation will be eligible to receive a salary increase of five percent (5 (1 step) above their existing salary as of the employee's established anniversary date, until such time as the employee reaches the top of his/her salary range, at which time the employee shall not advance beyond the top of the established range. 4 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 VI. REVIEW AND APPRAISAL All SMO members will receive annual reviews, consistent with the CITY's performance review process. New employees shall be evaluated after six months and after one year of service. All appraisals will be in writing and will be signed by both the City Manager and the SMO member being reviewed. VII. EMPLOYEE BENEFITS A. Health and Dental Premium Contributions The CITY contributes 100% of the medical premium for regular, full -time employees who select either the Kaiser, Blue Shield, or PERS Choice plans. Each plan includes eligibility for employee only, employee 1 dependent, and employee 2+ dependents. For employees who elect to enroll in the PERS Care Plan, the CITY will contribute the amount equal to the Kaiser, Blue Shield, or PERS Choice plan premium, whichever is greater, depending on the plan choice (i.e. employee only, employee 1 dependent, or employee 2+ dependents). The CITY contributes 100% of the dental premium for regular, full -time employees. B. Health and Dental In -Lieu Payments Effective January 1, 2012 an employee who completes and submits required documents (1) to prove that the employee has other health insurance coverage and (2) to waive City provided health insurance coverage will receive a payment per month of $350.00 as additional taxable wages. The employee must complete and submit any required documents and provide proof of other health insurance coverage during open enrollment (in or around October) to be eligible for the cash -in -lieu payment beginning the following January 1. Only qualifying events as defined by law allow employees to make a change to their health, dental, and/or in- lieu enrollment elections during the year (outside of the annual open enrollment period). Any employee who declines to accept coverage in the Dental Plan, evidenced by signing a waiver form, shall receive a monthly in -lieu payment of $25.00. C. New Hire Medical Effective July 1, 2011, for any employee hired on or after July 1, 2011, the City will provide a monthly health insurance contribution as follows: $600.00 for employee -only coverage, $1200.00 for employee plus one dependent coverage, and $1500.00 for employee plus two or more (family) coverage. If an employee selects a health insurance plan with a monthly premium above the City contribution, the employee will pay the amount above the City contribution as a payroll deduction. D. Deferred Compensation The CITY provides employees the opportunity to contribute to an IRS Section 457 deferred compensation plan. Employees may contribute up to the maximum allowed by law. Contributions may come from employee's regular earnings through payroll deductions, or from any unused portion of their Benefits Allowance. 5 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 In addition, the CITY will match SMO members' contributions to a deferred compensation account up to a maximum of $200.00 per month. E. Car Allowance SMO members shall receive a monthly $275.00 car allowance. F. Life and Accidental Death and Dismemberment Insurance The City pays 100% of the premium cost for life and accidental death and dismemberment insurance coverage for SMO members in the amount of $150,000. G. Disability Coverage: The City provides disability coverage, consisting of Short Term Disability payments and Long Term Disability insurance, to provide each SMO member with income protection if he /she becomes unable to perform the functions of his position due to a serious health condition or disability. a. Short -Term Disability The City will pay 75% of each SMO member monthly salary after he /she has used all accrued PTO. Short Term Disability payments will commence only after 12 continuous working days during which he /she is totally disabled, or when all accrued PTO is exhausted, whichever is later. Short term disability payments are reported to PERS as salary earned. b. Long -Term Disability The City provides a Long Term Disability plan including a paid coverage plan design of 66.66% of salary to a maximum of $2,000 per month with a voluntary buy up option paid by SMO members to a maximum of $8,200 per month. Because these payments are made through a group policy, they are not reported to PERS as salary earned. VIII. LEAVE A. Annual Leave Accrual All SMO employees hired after July 1, 2011, will accrue annual leave (paid time off or PTO) at the following rate: First 60 months of employment 22 days (176 hours) per year 61st through 120th month 27 days (216 hours) per year 121st month and beyond 32 days (256 hours) per year Members of SMO hired prior to July 1, 2011, who began employment with more than five (5) years of public service experience (as employees of a City, County, State or District) shall begin accruing at the sixty -one (61) month rate. All employees begin accruing annual leave upon hire. New employees may not use annual leave during their first six months of employment except for illnesses and other circumstances approved by the City 6 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 Manager. Annual leave and/or administrative leave are to be used for all time off from work except for Jury Duty and Military leave. FY 2011 -12 PTO Cash -Out Option: For each employee with over 600 hours of accrued PTO, the City will allow a cash -out of accrued PTO down to 400 hours as a cash payment or tax deferred contribution to their deferred compensation account. Employees will be allowed to request the cash -out up to two times, to be paid out by June 30, 2012, at their own discretion. FY PTO Cash -Out Option Effective Fiscal Year 2012 -2013 through Fiscal Year 2014 -2015: A PTO Cash -Out Option will not be made other than at the time of termination, except for the optional PTO cash -out plan described as follows: If an employee has used the required minimum of 80 accrued hours of PTO in the prior fiscal year, the employee is eligible to cash out up to a maximum of 200 accrued hours of PTO per fiscal year on approximately September 1 and/or March 1. An employee must maintain a minimum balance of 200 hours of accrued PTO after the cash out. PTO Accruals: Effective July 1, 2012, the PTO accrual cap in the Personnel Rules will be enforced. Under no circumstances can an employee accrue more than the accrual PTO cap at any point in time. Once an employee reaches the accrual cap, no additional PTO will accrue until the employee uses his or her accrued PTO and reduces the balance to less than the accrual cap. Thereafter, PTO benefits will continue to accrue on a prospective basis only until the employee reaches the cap. No retroactive credit will be given for the time when accrued PTO was at the cap. PTO Increments: PTO must be taken by exempt employees only in increments of one hour or more in a workday. B. Administrative Leave CITY shall grant SMO members, on a fiscal year basis, 65 hours of administrative leave. Administrative leave is compensated time off given to regular, full -time exempt employees of the City. This leave shall be taken in a manner consistent with PTO. Use of administrative leave is a privilege and is provided in recognition that City projects often require employees to devote whatever hours are necessary, irrespective of a regular scheduled work week, to fulfill the obligations of the job. Employees are granted a specific number of hours per fiscal year, specified in each bargaining agreement. Administrative leave must be taken by exempt employees only in increments of one hour or more in a workday (29 CFR 541.710 Employees of Public Agencies). For example, where an employee leaves work for one hour or more early to take care of personal business. Administrative Leave cannot be carried over from year to year and must be used by June 30th of the fiscal year. Administrative Leave must be exhausted prior to using PTO. 7 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 IX. RETIREMENT (PERS) Effective July 1, 2011, each employee will pay 7% of the employee's compensation on a pre -tax basis for the CalPERS 2 @55 retirement plan. New Hire Ca1PERS Retirement Plan: Any employee hired on or after July 1, 2011, (and effective as soon as the City can complete the legally required process for this item) will receive the following 2nd tier retirement option: a) A retirement plan of 2% at 60 with a retirement benefit based on a calculation using a three year average compensation (as summarized in the PERS actuarial summary letter attached as Exhibit 1). b) Each employee will pay on a pre -tax basis 100% of the employee's contribution as determined by PERS toward the CalPERS 2 @60 retirement plan. X. TUITION REIMBURSEMENT All regular employees of the CITY who have been employed continually for at least three (3) months prior to the commencement of an approved or required course are eligible for the CITY's tuition reimbursement program. A. Coursework for Degree or Certificate If the course(s) taken is/are job related or in fulfillment of the requirements for a degree or certificate, one- hundred percent (100 reimbursement will be afforded for tuition, fees and books by the CITY up to a maximum of one thousand dollars ($1,000) per employee per fiscal year. For SMO members the City Manager will determine job relatedness. B. Coursework for Professional Development If the course(s) is /are not specifically related to the employee's current position, and does not fulfill the requirements for a degree or certificate, but does provide for professional development related to the worker's position of employment or a higher position in the CITY, reimbursement will be afforded for tuition, fees and books by the CITY at one hundred percent (100 up to a maximum five hundred dollars ($500) per employee per fiscal year. Reimbursement will be afforded after successful completion of the course(s) requirements. Successful completion is defined as a "C" grade or a "Pass" on a pass -fail system. 8 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 XI. WORIUNG CONDITIONS The CITY will continue to operate on a 9/80 work schedule to be determined, for SMO members, by the City Manager where a full -time work week, constitutes forty (40) hours within seven consecutive 24 hour days, also defined as one hundred sixty -eight (168) hours. Employees on a 9/80 schedule are scheduled to work 8 nine hour days, 1 eight hour day, and have one day off every two weeks. An employee's workweek begins in the middle of the employee's 8 hour day and the employee's day off is on the same day of the week in the following week. For example, the standard 9/80 work schedule is as follows: Sunday Monday Tuesday Wednesday Thursday Friday Saturday 4 (end) off 9 9 9 9 4 off (start) off (end) off 9 9 9 9 off off (start) 4 (end) off 9 9 9 9 4 off (start) off (end) off 9 9 9 9 off off (start) The City Manager has discretion to require some SMO employees to work a schedule different from the standard 9/80 schedule including a schedule that is not 9/80. Fridays when the CITY is not open for business are referenced as "off- Fridays." The work period (pay period) is the period encompassing two consecutive workweeks. A holiday furlough will exist whereby the CITY operations are closed from December 24 through January 1 of every year. Employees shall utilize their available balances (annual leave or administrative leave), if applicable. Employees that utilize unpaid leave due to insufficient leave balance shall maintain regular benefit status. 9 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SARATOGA AND SARATOGA MANAGEMENT ORGANIZATION (SMO) JULY 1, 2011 TO JUNE 30, 2015 XII. SCOPE OF AGREEMENT This MOU represents the entire and complete understanding reached between the representatives of the CITY and the representatives of SMO for the period designated, and applies to all positions represented by SMO. XVI. RATIFICATION This MOU was ratified by a majority vote of the members of the SMO on October 24, 2011. City Council approved the terms of this MOU incorporated in Resolution No. 11 -070 adopted on November 2, 2011. Representative of the Representative of the City of Saratoga: Saratoga Management Organization: Dave Anderson, City Manager Mich. el Taylor, ecreation d Facilities Director, SMO President Date: 2-Q Date: 11 F Attachment A: SMO 5 -Step Salary Range Table for FY2011 -2012 10 Attachment A Saratoga Management Organization (SMO) FY 2011/12 Salary Range Table SMO Positions Assistant City Manager Community Development Director Finance Administrative Services Director Public Works Director Recreation Facilities Director Pay Step 1 Step 2 Step 3 Step 4 Step 5 Schedule Bi Weekly 5,437.60 5,709.60 5,995.20 6,295.20 6,609.60 Annual 141, 377.60 148, 449.60 155, 875.20 163, 675.20 171, 849.60 Hourly 67.97 71.37 74.94 78.69 82.62