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HomeMy WebLinkAboutReso - CC - 151-2023RESOLUTION NO. 151-2023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING CHANGES TO THE DEPARTMENT HEAD AND UNREPRESENTED EMPLOYEES COMPENSATION AND BENEFIT PLAN, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE PLAN ON BEHALF OF THE CITY WHEREAS, the Department Heads and Unrepresented Employees Compensation and Benefit Plan was last updated on August 21, 2023; and WHEREAS, the City has tried to maintain equity with salary and benefit changes among the miscellaneous groups; and WHEREAS, due to the current economic uncertainty, the City believes it prudent to only proceed with a one-year adjustment; and WHEREAS, the proposed changes are in alignment with the City’s financial sustainability goals; and WHEREAS, staff recommends that the City Council authorize an amended plan to include a 4.5% salary increase effective the first pay period in January 2024. NOW, THEREFORE, BE IT RESOLVED, 1. The changes in existing salary and benefits of the employees listed in the Department Head and Unrepresented Employees Compensation and Benefits Plan, as attached, are approved. 2. The City Manager is authorized and directed to execute the Department Head and Unrepresented Employees Compensation and Benefits Plan. ____________________________ Michael Brownrigg, Mayor I, MEAGAHN HASSEL-SHEARER, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 18th day of December, 2023, and was adopted thereafter by the following vote: AYES: COUNCIL MEMBERS: BEACH, BROWNRIGG, COLSON, ORTIZ, STEVENSON NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ____________________________ Meaghan Hassel-Shearer, City Clerk DocuSign Envelope ID: CABB76D3-2970-4AA0-AC01-1F1354B32A5F COMPENSATION & BENEFITS PLAN FOR THE CITY OF BURLINGAME DEPARTMENT HEAD & UNREPRESENTED CLASSIFICATIONS Effective January 1, 2024 2 This Compensation and Benefit Plan covers the City of Burlingame (City) Department Head and Unrepresented Group (DH/UR). 1. RECOGNITION 1.1 Positions Covered The positions covered by this agreement include all Department Head and Unrepresented classifications that work under the direction and at the will of the City Manager. These positions are all “executive” or "confidential" classifications based on the nature of their work. The classifications that are covered by this compensation and benefit plan are as follows: Department Head Classifications: City Clerk City Librarian Community Development Director Finance Director Human Resources Director Parks & Recreation Director Police Chief Public Works Director Unrepresented Classifications: Assistant Public Works Director/City Engineer Assistant to the City Manager Chief Building Official Code Compliance Officer and Senior Risk Analyst Deputy/Assistant City Attorney Deputy Director of Public Works Operations Deputy Finance Director Financial Services Manager Executive Assistant Human Resources Technician Human Resources Analyst II Parks Superintendent/City Arborist Planning Manager Senior Human Resources Analyst The City Manager and City Attorney are not included as part of this compensation and benefits plan but receive the same benefits as the City of Burlingame Department Head and Unrepresented Group (DH/UR) unless specifically noted in their employment agreements. 3 2. SALARY 2.1 Salary Adjustments 4.5% increase effective the first pay period containing January 1, 2024 2.2 Work out of Class Pay and Temporary Upgrade Pay (TUP) When an employee is assigned in writing to work out of class and temporarily replace another employee in a higher classification for five (5) consecutive workdays or more, the employee shall receive a 5.0% salary differential. In accordance with the California Code of Regulations (CCR) section 571a and b, Temporary Upgrade Pay is compensation to employees who are required to work in a vacant upgraded position/classification of limited duration. Assignment to an upgraded position is accepted voluntarily. 2.3 Deferred Compensation The City will maintain a matching contribution to deferred compensation of $45 per bi- weekly pay period. Deferred compensation is part of the total salary and will be included as such for future salary market analysis. 2.4 Post-Employment (Retiree) Health Reimbursement Arrangement (HRA) The City shall contribute one percent (1%) of base salary per pay period into the retiree HRA plan. Employees in the unit shall contribute two percent (2%) of base salary per pay period into the retiree HRA. Fees will be paid in accordance with the Plan Document. Employees in this unit may elect to contribute a set amount of salary to the retiree HRA and/or contribute separation pay to the retiree HRA. The City shall be notified of any such election sixty (60) days prior to the effective date. All employee separations occurring between January 1, 2024, and December 31, 2024 shall be handled in the following manner:  At the time of separation from City merit employment, separation pay arrangements shall be as follows: o 50% of administrative and vacation leave balances shall be contributed to the employee's HRA account. 3. BENEFITS 3.1 Health Insurance Coverage 3.1.1 No Plan Employees who demonstrate they have medical insurance through another source will receive $350 per month in lieu of health insurance. This is subject to normal taxation. 3.1.2 Flexible Benefit Plan 4 Under the Flexible Benefit Plan, the City’s monthly contribution to PERS to provide health insurance benefits for the individual and the employee’s eligible dependents shall be $157.00 per month effective January 1, 2024, and shall adjust in accordance with the Minimum Employer Contribution (MEC) established by the Public Employees Medical and Hospital Care Act. In addition, the City shall offer an Internal Revenue Code Section 125 Plan that contains the components of benefit allowance, premium conversion, health care reimbursement account, and dependent care reimbursement account. The City shall contribute the below-listed amount per month toward each employee’s Section 125 Plan benefit allowance components. All contributions listed below include the PERS required Minimum Employer Contribution (MEC).  Employee Only: 92.5% of the selected medical plan premium up to a maximum of 92.5% of the third highest plan CalPERS Bay Area premium rate for Employee only  Employee plus one: 92.5% of the selected medical plan premium up to a maximum of 92.5% of the third highest plan CalPERS Bay Area premium rate for Employee plus one  Employee plus two or more: 92.5% of the selected medical plan premium up to a maximum of 92.5% of the third highest plan CalPERS Bay Area premium rate for family coverage An employee that enrolls in a medical plan that has a higher premium than the City's contribution as stated above will pay the difference via pre-tax payroll deductions. 3.2 Retiree Medical 3.2.1 Retiree Medical for Employees Hired Prior to March 31, 2008 who Retire prior to January 1, 2015 (Tier 1) Employees hired prior to March 31, 2008 who retire prior to January 1, 2015 with a minimum of five (5) years of service with the City will receive a retiree medical benefit equivalent to the amount necessary for actual enrollment in single, two-party, or family coverage, up to a maximum dollar amount of the Kaiser family premium rate. 3.2.2 Retiree Medical for Employees Hired Prior to March 31, 2008 and Retire on or after January 1, 2015 (Tier 1a) Effective January 1, 2015, employees hired prior to March 31, 2008 who retire on or after January 1, 2015 with a minimum of five years of City service will receive a retiree medical benefit as follows: 5  The City will contribute up to the Bay Area Region premiums for the third highest Employee Only plan for single retirees, the third highest Two-Party plan for retiree plus one, or Kaiser Family for retiree plus two or more.  Eligible retirees who are 65 years of age or older must enroll in Medicare. The City will contribute up to the Medicare supplement plan (or Medicare Combination plan, as applicable to enrollment) premium for the third highest Employee Only plan for single retirees, the third highest Two-Party plan for retiree plus one, or Kaiser for retiree plus two or more. 3.2.3 Retiree Medical for Employees Hired Between March 31, 2008 and October 31, 2011 (Tier 2) Employees hired between March 31, 2008 and October 31, 2011 who retire with a minimum of five years of service with the City will receive a retiree medical benefit based upon years of service as follows: Years of City Service Monthly Contribution (tied to Basic, Combination, or Medicare plan, as applicable to enrollment) 0 to the end of 9th year of service Minimum monthly amount as governed by the CalPERS Health System. 10 years to the end of the 14th year of service 100% of the lowest medical premium provided through CalPERS approved medical providers for employee only. 15 years to the end of the 19th year of service 75% of the lowest medical premium provided through CalPERS approved medical providers for employee +1 dependent. 20 years of service or more 100% of the lowest medical premium provided through CalPERS approved medical providers for employee +1 dependent. 3.2.4 Retiree Medical for Employees Hired On or After November 1, 2011 (Tier 3) Employees hired on or after November 1, 2011 will receive the following contributions to a Post-Employment (Retiree) Health Reimbursement Arrangement (HRA), based on years of service with the City. Years of Service Monthly Contribution 0- to the end of the 4th year of service 2.0% 5 years of service to the end of the 19th year of service 3.0% of base pay 20 years of service or more 5.5% of base pay 3.3 Dental and Vision Plans 6 3.3.1 Dental Plan Effective January 1, 2016, and each calendar year thereafter, the City will reimburse up to $1900 per year per employee for dental-related expenses. In addition, all enrolled eligible dependents will receive a maximum combined benefit of $1800 of reimbursable dental expenses per calendar year. Effective January 1, 2020, and every calendar year thereafter, the City will reimburse up to $2,500 per year per employee for dental expenses and $1,500 per dependent per year, not to exceed $3,000 cumulative per year for all eligible dependents. 3.3.2 Vision Plan Effective January 1, 2020, and each calendar year thereafter, the maximum reimbursement for an employee for vision eligible expenses is one thousand dollars ($1,000) annually, not including an eye examination. If an eye examination is performed, the maximum reimbursement is twelve hundred dollars ($1,200) per calendar year. The maximum cumulative reimbursement for vision eligible expenses for eligible dependents shall not exceed six hundred dollars ($600) per calendar year, including eye examinations. 3.4 Long Term Disability (LTD) The City agrees to provide Long-Term Disability (LTD) coverage to Department Heads and Unrepresented classifications. The coverage is 60% of covered earnings with a maximum monthly benefit of $8,000. If the Police Chief elects to obtain LTD coverage through his or her respective professional organizations, the City agrees to pay the premium of such LTD coverage. 3.5 Life Insurance The City agrees to provide a term life-insurance policy in the amount of $250,000 for the Department Head group, and $100,000 for the Unrepresented group. 3.6 Regular Part-Time Benefitted Employee Benefits Insurances and Other Benefits Regular part-time employees shall be entitled to insurance coverage and other benefits as follows, pro-rated accordingly:  Medical Insurance (including Retiree Health) - City payment of medical insurance premiums as provided in the Insurance and Other Benefits section of the MOU, pro-rated.  Life Insurance - The City will provide life insurance coverage in the same amount as full time employees in the unrepresented unit.  Health Reimbursement Arrangement (HRA) – Regular part-time employees are eligible to the same benefit as regular full time employees, pro-rated. 7  Deferred Compensation (457) – Regular part-time benefitted employees receive a matching City contribution of $30 per pay period. Employees are automatically enrolled in the benefit at the City matching amount.  Voluntary Coverages – Regular part-time benefitted employees may enroll in the City's long term disability insurance, supplemental life insurance, dental plan, vision plan and/or the Section 125 plan. Voluntary coverage enrollment is subject to plan provisions. The employee must request in writing to the employer his/her desire to enroll and pay applicable premiums.  Leaves – Accrual, Limits and Adjustments - The City provides all regular part-time benefitted employees with the same vacation, sick leave, holiday leave and accrual limits that apply to regular full time employees, pro-rated. Holidays are paid as the holiday occurs, in the same manner as regular full time staff. Two Floating Holidays per calendar year are pro-rated according to each employee’s budgeted percentage of full-time employment. The City will stop all paid leave accruals when an employee goes on an unpaid status; unless otherwise provided by law. 4. RETIREMENT 4.1.1 Retirement Formula  Effective 03/31/2008, the City amended its contract with CalPERS to provide for the 2.5% at 55 retirement formula for all miscellaneous employees.  Miscellaneous employees hired after January 1, 2013, who are not considered “classic employees,” shall receive the 2% @ 62 retirement benefit and are subject to the PEPRA rules.  The Police Chief who is considered a “classic employee” shall receive the 3% @ 50 retirement benefit afforded to other sworn Police Personnel. A Police Chief who is new to the PERS system shall receive the 2% @ 57 retirement benefit. 4.1.2 Retirement Contribution  Department Head and Unrepresented employees who are considered “classic employees” by CalPERS will contribute 1.50% of the employer’s contribution to PERS retirement via payroll deduction on a pre-tax basis. The City shall “pick-up” the employer contribution amount that is being paid by the employees through a payroll reduction under IRS Code Section 414(h)(2). Department Head and Unrepresented employees who are considered “PEPRA” employees are exempt from this contribution. 4.2 Final Compensation  Classic employees, who are those employees hired prior to January 1, 2013, shall receive the One-Year Final Compensation Benefit (GC Section 20042). Miscellaneous employees hired after January 1, 2013 who are not “classic employees” are subject to the average of the last three years of final compensation 8 for retirement calculations. 4.3 Military Buy Back for Creditable Service  The City contracts with CalPERS to provide for Military Service Credit (GC 21024). 4.4 Pre-Retirement Optional Settlement 2 Death Benefit  The City’s contract with CalPERS provides the Pre-Retirement Optional Settlement 2 Death Benefit (GC 21548), which gives the surviving spouse of a retirement-eligible active employee the highest possible retirement benefit as though the employee had retired the day before death and selected the option. 5. VACATION 5.1 Vacation Accrual Vacation Accrual rates will change on an employee’s anniversary date as follows: Biweekly Additive Maximum Length of Service Accrual Rate Amount Accrual 0-4 years 3.08 160 5 4.62 +40 240 11 4.93 +8 256 12 5.24 +8 272 13 5.54 +8 288 14 5.85 +8 304 15 6.16 +8 320 16 6.47 +8 336 17 6.78 +8 352 18 7.09 +8 368 25 7.39 +8 384 Note: The maximum vacation accrual for the Police Chief is 448 hours. 5.2 Vacation Accrual Maximum An employee shall not be allowed to have an accumulation of more than two years' credit at any time. 6. SICK LEAVE 6.1 Sick Leave Accrual Employees will accrue 3.69 hours of sick leave per pay period. 6.2 Sick Leave Conversion Upon retirement, employees with sick leave balances may convert all sick leave hours to CalPERS credible service per GC Section 20965, with the exception of the Police Chief, who will receive the same sick leave conversion benefit as granted to the Police 9 Administrators. The Police Administrators can elect to have all sick leave hours converted to CalPERS credible service, or they can elect to be compensated for up to 600 hours of accumulated sick leave. Any remaining sick leave hours can then be converted to CalPERS credible service. 6.3 Maximum Accrual The maximum sick leave accrual is 2,000 hours, except that the maximum accrual for the Police Chief is 2,080 hours. 7. HOLIDAY PAY 7.1 Holidays for Regular Full-time Employees Regular full-time employees shall be entitled to observe all authorized holidays at full pay, not to exceed eight hours for any one day. 7.2 Holidays Listed The following are the authorized holidays: New Year’s Day January 1st Martin Luther King’s Birthday 3rd Monday in January Washington’s Birthday 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4th Labor Day 1st Monday in September Indigenous Peoples’ Day 2nd Monday in October Veteran’s Day November 11th Thanksgiving Day 4th Thursday in November Day after Thanksgiving 4th Friday in November Christmas Eve December 24th, ½ day Christmas Day December 25th New Year’s Eve December 31st, ½ day Two floating holidays per calendar year 7.3 Holiday Observance If a holiday falls on a Sunday, such holiday shall be observed on the Monday following. If a holiday falls on a Saturday, such holiday shall be observed on the preceding Friday. 7.4 Vacation on Holiday In the event any of the holidays specified above occurs while an employee is on vacation, the holiday shall not be charged to vacation. 8. ADMINISTRATIVE LEAVE 8.1. Department Head Classifications Department Head classifications shall be granted 80 hours of administrative leave per year. Administrative Leave accrues on a bi-weekly basis. The City Manager may approve up to 10 an additional 40 hours of administrative leave for Department Heads when warranted (any additional contribution to a leave bank does not change accrual rates). 8.2. Unrepresented Classifications All unrepresented classifications, with the exception of the HR Technician and Executive Assistant, shall be granted 80 hours of administrative leave per year. Administrative Leave accrues on a bi-weekly basis. With the consent and recommendation of the Department Head, an employee may request that the City Manager authorize additional administrative leave up to a maximum of 40 hours per calendar year (any additional contribution to a leave bank does not change accrual rates). This additional leave may be granted based on: Excessive hours worked; The value of the extraordinary effort, and The performance of the employee The City Manager has full discretion in deciding whether to grant additional leave. This provision does not increase the amount of administrative leave time that may be paid out. The HR Technician and Executive Assistant positions are considered FLSA non-exempt positions and are not eligible for administrative leave. 8.3 Administrative Leave Payout Employees eligible for administrative leave may have a maximum of one year of administrative leave on the books and may request administrative leave pay out at any time by submitting the payout request on the timesheet. When administrative leave balances exceed the one-year maximum (80 hours), hours that exceed the one-year maximum will automatically be paid out. 8.4 Separation Pays Accumulated Leave Allowance For Separated Employees Employees who separate shall be paid the straight-time, base pay, salary equivalent in a lump sum for all eligible accrued leave earned (vacation, administrative leave, holiday, eligible sick leave). 9. PROFESSIONAL DEVELOPMENT & ALLOWANCES 9.1. Professional Development Department Head classifications are eligible to receive up to $2,500 per fiscal year for professional development expenses. For details, refer to the Professional Development Policy. 9.2 Auto Allowance Department Head classifications are eligible to receive auto allowance as enumerated below. This is subject to normal taxation. 11 Classification Monthly Amount Finance Director $200 City Clerk $200 Community Development Director $200 Human Resources Director $200 City Librarian $200 Parks & Recreation Director $350 Public Works Director $350 9.3. Uniform Allowance The Police Chief will receive an annual uniform allowance the same as granted to the Association of Police Administrators. 9.4 POST Certificate Pay The Police Chief shall be eligible to receive $1,034.50/month upon obtaining the POST Executive Certificate.