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HomeMy WebLinkAboutCity Council Resolution 23-064, Unrepresented Employees Compensation RESOLUTION N0. 23-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPROVING COMPENSATION AND TERMS OF EMPLOYMENT FOR UNREPRESENTED EMPLOYEES WHEREAS, certain City job 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; and WHEREAS, Unrepresented Employees are those employees in unrepresented job classifications who are either at-will upper management employees (Directors and Assistant City Manager) or who after successful completion of the City's mandatory 12-month probationary period (if applicable), become regular, benefited full-time employees; and WHEREAS, Unrepresented Employees are subject to the City's Personnel Rules and Policies adopted by the City Council and are subject to the terms in this Resolution (except as modified by subsequent personnel rules and policies and resolutions, if any, applicable to such an unrepresented, regular, full-time employee); and WHEREAS, this Council finds that the compensation and terms of employment attached (Exhibit A) to this Resolution are 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 compensation and terms of employment attached to said Resolution for Unrepresented Employees is hereby adopted, become effective on July 1, 2023, and supersede the terms in Resolution No. 19-039. The above and foregoing resolution was passed and adopted by the Saratoga City Council at a regular meeting held on the 21 st day of June 2023, by the following vote: AYES: COUNCIL MEMBERS AFTAB, PAGE, WALIA, VICE MAYOR ZHAO, MAYOR FITZSIMMONS NOES: NONE ABSENT: NONE ABSTAIN: NONE ��. (,���,(�, -�-i��\���� Kookie Fitzsimmons, Mayor ATTES�: '� �..� �._'��c,�z�.; Ci�,.�J. Britt Avrit, MMC, City Clerk Resolution 23-064 Page 2 EXHIBIT A CITY OF SARATOGA UNREPRESENTED CLASSIFICATIONS COMPENSATION AND TERMS OF EMPLOYMENT I. INTRODUCTION This Resolution establishes the compensation and other terms for benefited regular full-time unrepresented job classifications that are not included in a collective bargaining agreement, memorandum of understanding,or employment contract. Unrepresented classifications are subject to the City's Personnel Rules and Policies adopted by the City Council and are subject to the terms in this Resolution(except as modified by subsequent personnel rules and policies and resolutions, if any, applicable to such an unrepresented, regular, full-time employee). The terms in this document, once adopted by the City Council, supersede the terms in Resolution 19-039. IL UNREPRESENTED JOB CLASSIFICATIONS Administrative Services Director Assistant City Manager Chief Building Official City Clerk Community Development Director Facility Maintenance Manager Finance Manager Human Resources Manager Human Resources Analyst IT Manager Parks Division Manager Public Information Officer Public Works Director Streets and Fleets Division Manager Any other job classification determined not appropriate to be included in a represented bargaining unit. III. COST OF LIVING ADJUSTMENT (FOR UNREPRESENTED EMPLOYEES WHO ARE NOT AT-WILL) Effective in the first full pay period that begins after July 1, 2023, each employee who is unrepresented and not an at-will employee shall receive an annual cost-of-living adjustment (COLA) percentage wage increase based upon Resolution 23-064 Page 3 the annual average for the 12-month period of January to December 2022 of the U.S. Department of Labor, Bureau of Labor Statistics, "All Urban Consumers (CPI-U)" for the "San Francisco-Oakland-Hayward" region, which is 5.6%. Effective in the first full pay period that begins after July 1, 2024, each employee who is unrepresented and not an at-will employee shall receive a COLA percentage wage increase of 2.39%. For each subsequent year effective in the first full pay period that begins after July 1, each employee who is unrepresented and not an at-will employee shall receive an annual COLA percentage wage increase of 1.0%. IV. EMPLOYEE BENEFITS A. Health and Dental Premium Contributions The City's contributions for medical insurance are inclusive of the City's payment of the statutory minimum Public Employees' Medical and Hospital Care Act (PEMHCA) contribution, which are set by California Public Employees' Retirement System (Ca1PERS) Health Program, and which may change from time to time. The PEMHCA minimum contribution for calendar year 2023 is $151.00 per month. This amount is established annually by Ca1PERS and is the minimum amount the City must pay on behalf of eligible employees for medical insurance based on the PEMHCA law. In addition to the PEMHCA minimum contribution, the City shall provide additional contributions to eligible active employees to offset the cost of participation in the City sponsored medical benefits available through an Internal Revenue Code Section 125 cafeteria plan (Additional Contribution). The additional contribution is based on the employee's medical plan participation level. The PEMHCA Minimum Contribution, when added to the Additional Contribution, will equal the City's total monthly contribution toward an employee's medical election (Total Contribution). The City will pay all administrative fees imposed by benefit providers. In accordance with PEMCHA Health Benefits, eligible retirees shall receive the PEMCHA Minimum Contribution as equal to and no greater than the statutory minimum required by law,if they elect to continue health insurance benefits with Ca1PERS after they retire from Saratoga. The PEMHCA minimum contribution for calendar year 2023 is $151.00 per month. Retirees pay the remaining balance of the health insurance premium. Effective January 1, 2023, the City will provide a monthly health insurance contribution for each employee's selected level of coverage as follows in the chart below: Emplovee Emplovee Plus One Emplovee Plus Two (Familv) $917.00 $1,835.00 $2,386.00 Resolution 23-064 Page 4 Effective January 1, 2024, the City's monthly health insurance contribution (Total Contribution) will be adjusted annually for each employee's selected level of coverage and will be based upon the COLA percentage in Section III based on the preceding year, subject to the annual maximum caps. The COLA percentage in Section III. effective 7/1/23 sets the percent increase in the City's contribution in 2024, and the COLA percentage effective 7/1/24 sets the percent increase in the City's contribution in 2025. For each subsequent year starting on 1/1/26, the City's contribution will increase 2.5% at the start of the calendar year. The adjusted City contribution for each level of coverage for the next calendar year will be provided to the employees prior to the beginning of open enrollment period and become effective on January 1 of each year. The cost of the employee- selected plan that exceeds the City-paid contribution amount will be paid by the employee via payroll deduction, pre-tax. The City contributes 100% of the dental premium for regular, full-time employees. B. Health and Dental -In-Lieu Pavments 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 $400.00 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 as additional taxable wages. C. Deferred Compensation (457 Plan� The City provides employees the opportunity to contribute toward an IRS Section 457 deferred compensation plan. Employees may contribute an amount up to a federally mandated maximum per calendar year on a pre-tax basis. For unrepresented employees that are not at-will, the City will contribute $50.00 per month to the employee's 457 Plan, which does not require the employee match that amount. In addition, for unrepresented employees that are not at-will, the City will Resolution 23-064 Page 5 contribute up to $100.00 per month to the employee's 457 Plan,matching the employee's contribution of up to $100.00. V. PTO CASH-OUT OPTION PTO Cash-Out Requirement Effective onlv for Calendar Year 2023: A PTO Cash-Out will not be made other than at the time of termination, except for the required PTO cash-out plan for 2023 described as follows: Effective July 1, 2023, for calendar year 2023 only, each employee's PTO hours that are accrued that exceed 350 hours of PTO as of December 31, 2023, and that are not scheduled to be used by December 31, 2023, will be paid out on the last payday of December 2023. This provision is effective July 1, 2023, and is expressly agreed to terminate and sunset in its entirety as of December 31, 2023, and will not continue in effect for future years. The following provision for 2024 supersedes this 2023 provision. PTO Cash-Out Option Effective Calendar Year 2024: 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: Effective for cash out of PTO beginning in calendar year 2024, if an employee has used the required minimum of 80 accrued hours of PTO in the current calendar year ("year 1"), the employee is eligible to cash out up to the maximum number of hours of PTO that is the employee's annual PTO accrual rate as of 12/31 of year 1 (with that PTO actually being earned and accrued in the following calendar year - "year 2") if, by December 31 of year 1 (which means the first election is by 12/31/23),the employee makes an irrevocable election to cash out some or all of year 2's PTO accrual. The elected cashed-out PTO will be paid in year 2 in the first full pay period of December. An employee must maintain a minimum balance of 200 hours of accrued PTO after the cash out. For example, if(1) an employee uses 80 or more accrued hours of PTO in 2023 (year 1), (2) the employee has 200 or more accrued hours of PTO by 12/31/23 (so the minimum accrued PTO balance remains 200 hours or more after the cash out is paid in 2024), and (3) the employee will accrue 160 PTO hours in 2023 (year 1), then the employee can make an irrevocable election by 12/1/23 to cash out up to 160 PTO hours that will be earned in 2024 (year 2), which will be paid on or before 12/31/24. Payment of any amount of cashed out PTO is income and subject to federal and state tax withholdings and deductions. Resolution 23-064 Page 6 PTO Accruals: Effective September 1, 2011, the PTO accrual cap of 600 hours 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. VI. 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 Paid Time Off (PTO). Use of administrative leave is a privilege and is provided in recognition that City business often requires exempt employees to devote whatever hours are necessary, irrespective of a regular scheduled workweek, to fulfill the obligations of the job. The number of Administrative Leave hours granted to an exempt position are twenty (20), forty(40), or sixty-five (65) and is based on the level of responsibility of the position within the organization and the expectation of the incumbent in the position to observe their regular work schedule and perform further hours needed to satisfactorily execute the duties and responsibilities of their positions. The number of Administrative Leave hours granted to exempt positions are determined by the City Manager at the time the exempt classification and job description is established, because of a reclassification,or before a vacant classification is re-filled. Sixty-five (65) hours of Administrative Leave is granted to the following exempt classifications, which is prorated based on FTE if the position is not full-time: Administrative Services Director Assistant City Manager Chief Building Official City Clerk Community Development Director Facility Maintenance Manager Finance Manager Human Resources Manager Human Resources Analyst IT Manager Parks Division Manager Public Information Officer Public Works Director Streets and Fleets Division Manager Resolution 23-064 Page 7 Administrative leave cannot be carried over from year to year and must be used by June 30th of the fiscal year in which it was provided. Administrative Leave must be exhausted prior to using PTO. VII. RETIREMENT (PERS) The City is a contracting agency of the California Public Employees Retirement System (PERS). Regular employees become members immediately upon employment and become vested after five years of full- time service. Tier 1: Ca1PERS Retirement Plan of 2%(a�55 for Emplovees Hired Before July l,2011: The City, through its contract with PERS, provides for retirement benefits for any employee hired before July 1, 2011 as defined by the 2%@55 retirement plan formula (contract effective date: September 1, 1999). The City's 2%@55 contract with PERS includes Government Code 20042 - the final compensation is the average full-time monthly pay rate for the highest 12 consecutive months. As of July 1, 2011, each employee covered by the 2%@55 retirement plan formula will pay 7% of the employee's compensation on a pre-tax basis for the employee's 7% fixed share of the Ca1PERS defined benefit retirement program. Tier 2: Ca1PERS Retirement Plan of 2%(a�60 for Employees Hired July 1, 2011 Throu�h December 31, 2012: Each employee covered by the 2%@60 plan will pay 7% of the employee's compensation on a pre-tax basis. New Hire Ca1PERS Retirement Plan For Employee Hired January I, 2013 and After: Any employee hired on or after January 1, 2013, who does not meet the exceptions as specified in state law to be a "classic" member of PERS, will receive the following 3rd tier retirement option: a) A retirement plan of 2% at 62 as required by state law(PEPRA). b) Each employee will pay on a pre-tax basis 100% of the employee's contribution as determined by PERS toward the Ca1PERS 2%@62 retirement plan. An employee hired after January 1, 2013 who meets an exception under state law to be a "classic" member of PERS will receive the second tier plan of 2% at 60 noted above. VIII. 7-STEP SALARY RANGE TABLE An employee who has received a cumulative rating of "meets expectations" or greater during the fiscal year employee performance evaluation will be eligible to receive a pay increase of five percent (5%) (1 step) above their existing pay while progressing from Step 1 to Step 5. Resolution 23-064 Page 8 The employee shall advance to Step 6 after four (4) additional years of satisfactory service in the same classification at step 5, contingent on the recommendation of the Department Director. The employee shall advance to Step 7,the top of the range,after another additional four(4)years of satisfactory service in the same classification at step 6, contingent on the recommendation of the Department Director. Even though the Personnel Rules currently provide for a salary survey and wage adjustment every other year, that salary survey and related wage adjustment will not apply to and will not occur for employees until after June 30, 2027, if it is reinstated thereafter. IX. WORKING CONDITIONS The City operates on a 9/80 work schedule determined by the City Manager where a full-time work week, constitutes forty (40) hours within seven consecutive 24 hour workdays, 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 second workweek begins in the fifth hour of the employee's 9-hour workday (Monday) following the off-Friday. For example, the standard 9/80 work schedule is as follows: Sunda Monda Tuesda Wednesda Thursda Frida Saturda Off Off 9 9 9 9 Off 4 (end) 8 Off 5 (start) 9 9 9 Off Off Off 9 9 9 9 Off 4 (end) Off 9 g 5 (start) 9 9 Off The City Manager has discretion to require Unrepresented 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 (earned paid time off or earned compensatory time), if applicable. Employees that utilize unpaid leave due to an insufficient leave balance shall maintain regular benefit status. Employees may not utilize unpaid leave prior to exhausting their Resolution 23-064 Page 9 available balances. X. AT-WILL EMPLOYEE WAGES AND BENEFITS The following positions are at-will and serve at the pleasure of the City Manager: Assistant City Manager Community Development Director Administrative Services Director Public Works Director A. Severance Should the City Manager choose to terminate an at-will employee, the following severance provisions apply and will be made available to the employee if the separated employees 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, employee 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 employee's anniversary date up to a maximum of six (6) months' severance pay and benefits. At the discretion ofthe employee 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 an employee selects bi-weekly payments, the employee 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 employee's then monthly salary. Severance benefits will be provided as follows: Health Insurance: The employee must enroll in COBRA, directly through their existing health plan provider, for extended health insurance. The employee 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 forreimbursement. Resolution 23-064 Page 10 Dental Insurance: The City is able to directly enroll the employee in COBRA, through the City's carrier, for extended dental insurance. The employee 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 employee a letter detailing all of the above instructions, and providing the necessary paperwork in a timely fashion, sufficient to ensure that the employee does not become ineligible for continued coverage. B. Cost of Livin�justment for At-Will Emplo,� Effective in the first full pay period that begins after July 1, 2023, each at-will employee shall receive an annual cost-of-living adjustment(COLA) of 4.95%. Effective in the first full pay period that begins after July 1, 2024, each at-will employee shall receive a COLA percentage wage increase of 2.00%. For each subsequent year effective in the first full pay period that begins after July 1, each at- will employee shall receive an annual COLA percentage wage increase of 1.0%. C. Deferred Com�ensation (457 Plan� The City will match at-will employee contributions to a deferred compensation account up to a maximum of$250.00 per month. D. Car Allowance Each at-will employee shall receive a monthly $275.00 car allowance.