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HomeMy WebLinkAboutCC Report for Unrepresented Employees 11 2 11 meeting FINALPage 1 of 2 SARATOGA CITY COUNCIL MEETING DATE: November 2, 2011 AGENDA ITEM: DEPARTMENT: City Attorney CITY MANAGER: Dave Anderson PREPARED BY: Deanna Mouser DIRECTOR: Catherine Engberg Attorney, Chief Negotiator Acting City Attorney SUBJECT: Council Resolution to Approve Employment Policy for Unrepresented Regular, Benefited Full-Time Non-Management, Mid-Management, and Management Employees (Amended November 1, 2011) RECOMMENDED ACTION: Approve the terms and conditions contained in said Resolution for Employment Policy for Unrepresented Regular, Benefited Full-Time Non-Management, Mid-Management, and Management Employees which is attached hereto and made a part hereof. BACKGROUND: The City’s unrepresented classifications are unrepresented, which means incumbents do not engage in collective bargaining with the City on matters related to wages, benefits and other terms and conditions of employment. Unrepresented employees are those employees who after completion of the City’s mandatory 12- month probationary period become regular, benefited full-time employees. Unrepresented employees are subject to the City’s Personnel Rules and Policies adopted by the City Council and are subject to the terms and conditions in said Resolution. Subsequent modifications to the City’s personnel rules and policies and resolutions adopted by the City Council are applicable to such unrepresented, regular, full-time employees. The following is a summary of short and long-term key issues that unrepresented employees are subject to: Retirement: Effective July 1, 2011, unrepresented employees will contribute 7% of his/her compensation on a pre-tax basis for the employee’s seven (7) percent fixed share of the CalPERS defined benefit retirement program. Pension reform includes a 2-tier retirement plan for employees hired after the City completes the PERS-required process. These employees will be provided a 2%@60 defined benefit retirement formula with a three (3) year average of salary as part of the retirement calculation. Page 2 of 2 Medical Insurance Premiums: Medical insurance premium costs for employees continue to grow year after year at rates that exceed the city’s revenue growth. For employees hired 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). Elimination of Longevity Pay: For employees hired after July 1, 2011, the performance incentive compensation program rewarding longevity will be eliminated. Paid Time Off (PTO) Cap: The City will enforce its PTO cap. Public Accountability: Administrative Leave and PTO will be taken by exempt (salaried) employees and tracked in increments of one hour or more in a workday. FISCAL IMPACTS: In Fiscal Year 2011-12, the annual savings is approximately $9,756.66. These savings are cumulative and additional savings will be realized in future years. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: Current terms and conditions of employment for unrepresented employees would remain unchanged. ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): 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