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HomeMy WebLinkAboutItem 4.09 Revisions to Personnel System CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: October 28, 1991 SUBJECT: Revisions to Personnel System (Prepared by: Lou Ann Texeira, Assistant to the City Manager EXHIBITS ATTACHED: 1 . Resolution Establishing a Salary Plan for Full- Time Personnel 2. Resolution Establishing a Benefit Plan 3 . Resolution Fixing Employer's Contribution under the Public Employees' Medical and Hospital Care Act and Rescinding Resolution No. 139-90 4. Contract Renewal Letter from Delta Dental dated July 15, 1991 RECOMMENDATION-- ■ Adopt Resolutions ■ Authorize City Manager to undertake all steps necessary to change Life Insurance and Long-Term Disability Insurance carriers ■ Authorize City Manager to take all steps necessary to renew the contract with Delta Dental pursuant to renewal letter dated July 15, 1991 and to extend Employee Only Coverage to Regular Part-Time Positions ■ Authorize City Manager to transfer funds (not to exceed $6, 000) from the Contingent Reserve into the appropriate accounts FINANCIAL STATEMENT: Sufficient funds have been included in the City's Contingent Reserve. DESCRIPTION: The City's Personnel System is governed by several documents. Each document addresses specific topics. The Staff Report will discuss changes to the system based on the resolution or document affected. As presented below, proposed adjustments to the City's Personnel System are based on a comprehensive survey of other agencies and on discussions with City employees. ESTABLISHING A SALARY PLAN Included in the City' s Personnel System are resolutions which establish salary ranges for both part-time and full-time personnel. The attached Salary Plan contains proposed salary ranges for all full-time positions. The proposed salary ranges are based on market conditions determined by a comprehensive survey of comparable positions in similar agencies. The recommended salaries are based upon the average of the agencies surveyed. the salary ranges also take into account the relationship of each position to others in the organization (e.g. , the relationship between Assistant, Associate and Senior Planner) . The salary , ranges provide a minimum and maximum salary to be paid for each position. All movement within the range is based on performance. The proposed modifications to the Salary Plan do not automatically increase actual salaries. Employees' salaries can only be modified upon completion of a satisfactory performance review. Thus, modifications to the salary plan will only impact current salaries at the time of a performance review. ---------------------------------------------------------------------- COPIES TO: ITEM No. CITY CLERK FILE 1 1 71D � D The City Manager and his Staff have met with all full-time employees to discuss the proposed salary ranges. Based on these discussions and on the results of the market survey, Staff recommends that the City Council adopt the attached resolution establishing a salary plan for full-time employees. ESTABLISHING A BENEFIT PLAN Background - The City's Personnel System Rules require the City Council to adopt a Benefit Plan. The Plan provides a summary of the City's Benefit Program including medical, dental, life and disability insurance, retirement, holidays, car allowance and travel expenses, and participation in deferred compensation and credit union programs. The City Manager has reviewed the current Employee Benefit Plan. In addition, the City Manager has discussed the proposed changes to the Plan with City employees. The following outlines sections of the Plan where change8 are proposed. All the remaining sections are as they exist in the current Benefit Plan. Section 2 - Medical Insurance - The City currently contracts with the Public Employees' Retirement System (PERS) for the provision of health insurance benefits. This allows the City a wide variety of insurance plans due to the number of participating agencies. PERS allows each participating agency to designate the amount to be contributed by the employer. Presently, the City contributes up to $385 per month per employee/retiree for medical insurance. As of August 1 , 1991 , the City experienced an increase in health plan premiums. Consequently, a number of health plans in which City employees are presently enrolled now exceed the City's maximum contribution. Staff recommends that the City Council increase its contribution to a maximum of $422 per month per employee to address the increase in medical premiums. There will continue to be plans offered which exceed the City's maximum contribution and this amount would be paid for through payroll deductions. In addition to amending. the City's Benefit Plan to provide for an increase in the City's contribution, it is also necessary to adopt a separate resolution increasing the employer's contribution under the Public Employee's Medical and Hospital Care Act. The attached resolution increases the City's current contribution from $385 to $422 per month and rescinds Resolution No. 139-90. The proposed increase is approximately 9.6% above the City's current contribution. Section 3 - Dental Insurance - The City currently contracts with Delta Dental for the provision of dental insurance benefits. The insurance company requires the City to pay the full family premium rate for eligible employees (and eligible dependents) including regular employees (who work 30+ hours per week) . The current family premium under the Delta Dental program is $81 .93/month. The City has contracted with Delta Dental since October of 1989; the premium has not increased since the program was implemented. However, effective October 11 1991 , the dental rates will increase by 17%. Thus, the family premium will increase to $95.86 per month. The contract would continue to require the City to contribute 100% of the premium payment and the rates would be fixed for two years. The City currently has two part-time positions regularly scheduled to work 20 hours per week. These positions do not presently , receive any dental insurance benefits. Delta Dental has indicated the possibility of the City offering "employee only" coverage to these positions, provided that the premium cost is paid for by the City. Staff concurs that this would be an appropriate approach towards providing pro-rated benefits to these regular part-time positions. Staff recommends that the City Council authorize the City Manager to renew the contract with Delta Dental pursuant to renewal letter dated July 15, 1991 . The amendment will also include extending coverage covering employee -2- only to part-time regular employees (employees who work between 20 and 29 hours per week) . Section 5 - Disability Insurance - The City currently provides Long-Term Disability (LTD) Insurance to employees regularly scheduled to work at least 30 hours per week. Staff recommends amending the City's policy to cover employees regularly scheduled to work 20 or more hours per week. In addition, City Staff has worked with the City's insurance broker to conduct a market survey of competitive LTD and life insurance carriers. Consequently, Staff has identified another insurance carrier to provide comparable LTD and Life Insurance. The proposed programs would result in an estimated annual cost savings to the City of approximately $2, 678. It is recommended that the City Council authorize the City Manager to pursue and execute any documents to change LTD and Life Insurance carriers. CONCLUSION Staff recommends that the City Council review the proposed modifications and adopt the necessary resolutions. a:1028pers.agenda#6 -3- RESOLUTION NO. - 91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN **************** ESTABLISHING A SALARY PLAN FOR FULL-TIME PERSONNEL IN ACCORDANCE WITH THE PERSONNEL RULES WHEREAS, the City Council has adopted a Salary & Benefit Plan pursuant to the Personnel System Rules; and WHEREAS, the City Council has adopted Resolution No. 68-91 which .establishes a Salary Plan for full-time personnel in accordance with the Personnel Rules; and NOW, THEREFORE, BE IT RESOLVED that the following salary provisions shall be established in accordance with the City of Dublin Personnel System Rules. BE IT FURTHER RESOLVED that any previous enacted salary provisions contained in Resolution No. 68-91 shall be superseded by this Resolution. ARTICLE I: SALARY PROVISIONS SECTION A: REGULAR EMPLOYEES EXEMPT FROM FAIR LABOR STANDARDS ACT (FLSA) OVERTIME PROVISIONS Employees covered under this Section shall be paid a monthly salary within the following ranges with the exclusion of any Performance Pay Adjustment granted in accordance with the Personnel Rules. In the event of a part- time appointment, the employee shall be compensated on an hourly basis. Monthly Monthly Hourly Hourly Minimum Maximum Minimum Maximum Administrative Assistant $3 , 135 $3 ,919 $18. 09 $22 . 61 Administrative Services/Finance $4,941 $6, 176 $28 . 51 $35 . 63 Director Assistant City Manager $5, 126 $6,408 $29 . 57 $36.97 Assistant to the City Manager $3 , 918 $4,898 $22 . 60 $28 . 26 Associate Planner $3 , 342 $4, 177 $19 . 28 $24 . 10 City Clerk $3,531 $4, 414 $20. 37 $25.47 Planning Director $4, 667 $5, 834 $26. 93 $33 . 66 Public Works Director/City $5,475 $6,844 $31. 59 $39 . 48 Engineer Recreation Director $4,925 $6, 156 $28 . 41 $35. 52 Recreation Supervisor $21935 $3 , 669 $16. 93 $21. 17 Secretary to the City Manager/ $2 , 838 $3 , 547 $16. 37 $20. 46 Deputy City Clerk Senior Civil Engineer $4,488 $5, 610 $25. 89 $32 . 37 Senior Planner $3 ,846 $4 , 807 $22 . 19 $27 .73 SECTION B: REGULAR EMPLOYEES COVERED BY OVERTIME PROVISIONS OF FLSA. Employees covered under this Section shall be paid hourly wages within the following ranges with the exclusion of any Performance Pay Adjustment granted in accordance with the Personnel Rules. The monthly salaries are shown for informational purposes only. Monthly Monthly Hourly Hourly Minimum Maximum Minimum Maximum Administrative Secretary $2,441 $3, 051 $14 . 08 $17 . 60 Administrative Aide $2, 685 $3 , 356 $15. 49 $19. 36 Assistant Planner $2, 874 $3 , 592 $16. 58 $20.72 Community Safety Assistant $2,874 $3 ,592 $16. 58 $20. 72 Engineering Technician $2, 823 $3 , 529 $16. 29 $20. 36 Finance Technician I $21219 $2 , 774 $12 . 80 $16. 00 Finance Technician II $2,441 $3 , 051 $14 . 08 $17 . 60 Management Assistant $2,850 $3 , 562 $16. 44 $20. 55 Office Assistant I $1,780 $2 ,224 $10. 27 $12 .83 Office Assistant II $1,958 - $2 ,447 $11. 30 $14 . 12 Public Works Inspector $3 , 118 $3 ,897 $17 .99 $22 . 48 Recreation Coordinator $2,453 $3 , 065 $14 . 15 $17 . 68 Secretary $2, 219 $2,774 $12 . 80 $16. 00 PASSED, APPROVED AND ADOPTED this 28th day ' of October, 1991. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk RESOLUTION NO. - 91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A BENEFIT PLAN IN ACCORDANCE WITH PERSONNEL RULES WHEREAS, the City Council adopts Personnel System Rules for employees of the City; and WHEREAS, the provision of employee benefits assists the City in attracting and retaining quality employees; and WHEREAS, the Personnel System Rules require the City Council to adopt a Benefit Plan; and WHEREAS, the identification of benefits in a single document will assist with the administration of the personnel system; and WHEREAS, the following benefit provisions shall be established in accordance with the City of Dublin Personnel Rules; and WHEREAS, the Benefit Plan was last amended by Resolution No. 75-89 in June of 1989 . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby adopt the following benefits as a Benefit Plan. Section 1 . Eligible Employees : All benefits shall apply to full-time employees of the City of Dublin, unless otherwise stated. The provision benefits outlined in this plan shall not apply to temporary employees . Section 2 . Medical Insurance: All City employees who are members of the Public Employees Retirement System (PERS) shall be eligible to select from plans administered by the Public Employees Medical and Hospital Care Act. Beginning with the November, 1991 premium, the City will contribute a maximum of $422 per month, exclusive of administrative charges towards medical insurance. If the cost of coverage exceeds the amount of the City contribution, the additional cost will be paid by the employee through payroll deductions or at the employee' s option to the extent allowed by Section 4 of the Benefit Plan. Section 3 . Dental Insurance: Beginning with the October 1991 premium, the City will contribute on behalf of each employee scheduled to regularly work at least 30 hours per week, a maximum of $95 . 86 per month to a dental insurance plan selected by the City. Beginning with the October 1991 premium, the City will contribute on behalf of each regular employee scheduled to work between 20 and 29 hours per week, a maximum of $29 . 69 per month to a dental insurance plan selected by the City. Y: ` g S Section 4 . Supplemental Dental/Vision/Health Care Reimbursement Trust Fund: a. Plan Limits : Full-time employees shall have a limit of $600 per plan year for eligible reimbursements. Employees regularly scheduled to work between 20 and 40 hours per week shall have a limit of $300 per plan year for eligible reimbursements. b. Plan Year: The "Plan Year" shall cover reimbursements for eligible expenses incurred between July 1st and June 30th of the City' s Fiscal Year. C. Eligible Claims : Employees eligible for this benefit may request reimbursement for the following expenses provided that they have not exceeded their Plan limit for the corresponding "Plan Year" . i . All reasonable uninsured expenses for dental care incurred by an employee or any of the employee' s qualified dependents, provided expenses are not paid either by the City provided dental insurance, or any dual coverage provided by an employee' s spouse. ii . Reimbursement to an employee for optical care and prescription optical appliances incurred by the employee or any of the employee' s qualified dependents, provided expenses are not paid either by the City provided dental insurance, or any dual coverage provided by an employee' s spouse. iii . Co-payments, deductibles, premiums, and uninsured medical expenses incurred by the employee or any of the employee' s qualified dependents, provided expenses are not paid either by the City provided dental insurance, or any dual coverage provided by an employee' s spouse. d. Administrative Rules : The reimbursement of any expenses pursuant to this section shall be contingent upon the fulfillment of requirements established by the City' s accounting procedures and other rules or policies established by the City Manager. Section 5 . Disability Insurance: The City will contribute on behalf of each regular employee scheduled to regularly work at least 20 hours per week, the total premium cost of a Long Term Disability Plan selected by the City. Section 6 . Life Insurance: The City will contribute on behalf of each full-time employee scheduled to regularly work at least 40 hours per week, the total premium cost of a $50, 000 Term Life Insurance Policy selected by the City. In addition, the City Manager shall be authorized to implement a supplemental life insurance program, which would allow -2- full-time employees to purchase additional term life insurance through payroll deductions, if such a plan is available. Section 7 . Retirement: The City will provide the California Public Employees Retirement System 2% at age 60 plan to all eligible employees . The City Council shall have the authority to amend the plan to include benefit options offered by the Public Employees Retirement System. The City shall contribute to the Public Employees' Retirement System (PERS) on behalf of all covered employees, seven percent (7%) of the employee contribution required by PERS. Contributions made pursuant to this section shall be reported as "employee contributions being made by the contracting agency. " Said contributions shall not apply in the case of temporary, provisional, or contract employees, unless the contract explicitly states that the City is to pay the employee' s contribution rate required by PERS. The aforesaid contribution shall not be considered as a part of an employee' s salary for the purpose of computing straight time earnings, compensation for overtime worked, or the City' s contributions to PERS; nor shall such contribution be taken into account in determining the level of any other benefit which is a function of or percentage of salary. The City will not treat these contributions as compensation subject to income tax withholding unless the Internal Revenue Service or Franchise Tax Board indicates that such contributions are taxable income subject to withholding. Each employee shall be solely and personally responsible for any federal, state, or local tax liability of the employee that may arise out of the implementation of this section or any penalty that may be imposed therefor. Section 8 . Credit Union: The City Manager shall have the authority to arrange with an appropriate credit union for membership to be offered to eligible employees. The credit union shall retain the right to define an eligible employee. Membership is currently offered in the City County Employees Credit Union. Section 9 . Deferred Compensation Plan: Participation in a deferred compensation plan(s) is offered. This shall be a voluntary program and the City will not contribute any funds on behalf of an employee. Participation is currently offered in a program administered by the International City Management Association. Section 10 . Holidays : The following days shall be deemed holidays in accordance with the Personnel System Rules : a) New Year' s Day January 1 b) Martin Luther King Jr. Day Third Monday in January -3- c) Washington' s Birthday Third Monday in February d) Memorial Day Last Monday in May e) Independence Day July 4 f) Labor Day First Monday in September g) Veteran' s Day November 11 h) Thanksgiving Day Fourth Thursday in November i) Day following Thanksgiving Day following above j ) Day preceding Christmas December 24 k) Christmas Day December 25 1) Day preceding New Year' s Day December 31 Section 11 . Education Reimbursement: Full-time and regular part-time employees shall be eligible to participate in an education reimbursement program. The City shall only reimburse the employee for courses undertaken which are job related. The employee must obtain prior authorization from the City Manager and reimbursement will only be provided upon submittal of proof of satisfactory completion of the courses undertaken with a passing grade when applicable. The City will reimburse an amount equal to one-half of the employees tuition and/or fees, ( including books) . For full-time employees, the amount reimbursed shall not exceed $500 per Fiscal Year; for employees scheduled to work between 20-40 hours per week, the amount shall not exceed $250 per Fiscal Year. The payment of any reimbursements shall be contingent upon the fulfillment of reporting requirements established by the City Manager. Section 12 . Car Allowance and Mileage Reimbursement: The following positions shall be eligible to receive the designated monthly allowance. The receipt of the car allowance pursuant to this section shall be full compensation for all operating costs excluding tolls, parking fees and out of area travel. a. Management Positions Receiving Monthly Allowance Eligible Positions Monthly Allowance Administrative Services/Finance Director $190 Assistant City Manager $190 Planning Director $190 Public Works Director/City Engineer $190 Recreation Director $190 b. Miscellaneous Employees Receiving Car Allowance The following position shall be eligible to receive the designated monthly car allowance. Eligible Position Monthly Allowance Public Works Inspector $100 C. Operating Costs Miscellaneous employees noted in Section (b) and employees whose services and compensation are provided for under separate agreement who receive a car allowance shall be eligible to receive 40 percent (rounded up to the nearest -4- cent) of the amount recognized by the Internal Revenue Service for the use of a private vehicle as an operating cost. d. Mileage Reimbursement For employees not receiving a car allowance, when traveling on City business, the City will reimburse the amount recognized by the Internal Revenue Service for the use of a private vehicle. e. Out of Area Travel Reimbursement When traveling out of the area on City business, the City will reimburse the amount recognized by the Internal Revenue Service for the use of a private vehicle, or, air transportation costs, whichever is less. f . Administrative Requirements The payment of any mileage reimbursements or car allowance shall be contingent upon the fulfillment of requirements established by the City' s accounting procedures and other rules and policies . Section 13 . This resolution shall supersede Resolution No. 138-90 and any previous resolutions adopted by the City Council which are in conflict. PASSED, APPROVED AND ADOPTED this 28th day of October, 1991 . AYES : NOES : ABSENT: Mayor ATTEST: City Clerk a:resolbenf.agenda #6 -5- RESOLUTION NO. - 91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN FIXING EMPLOYER'S CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AND RESCINDING RESOLUTION NO. 139-90 WHEREAS, Government Code Section 22825 . 6 provides that a local agency contracting with the Public Employees' Medical and Hospital Act shall fix the amount of the employer contribution at an amount not less than the amount required under Section 22825 of the Act; and WHEREAS, the City of Dublin is a local agency contracting under the Act; and WHEREAS, on November 13, 1990, the City Council adopted Resolution No. 139-90 fixing the employer' s contribution at $385 per month; and WHEREAS, various health plans offered by the Act have increased premiums significantly due to cost increases within the health care industry . NOW, THEREFORE, BE IT RESOLVED that the employer' s contribution for each eligible employee or annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her eligible family members, in a health benefit plan or ,plans, up to a maximum of $422 . 00 per month, plus administrative fees and Contingent Reserve Fund assessments . BE IT FURTHER RESOLVED that the contribution shall begin with the November 1 , 1991 premium and that Resolution No. 139-90 shall be rescinded. PASSED, APPROVED AND ADOPTED this 28th day of October, 1991 . AYES : NOES : ABSENT: Mayor ATTEST: City Clerk a:resomedi .agenda#6 Delta Dental Plan of California July 15, 1991 Jt 9 1991 M18LIN City of Dublin 100 Civic Plaza P. O. Box 2340 Dublin, California 94568 RE: City of Dublin, Delta Group #8767 We welcome this opportunity to acknowledge your two years with Delta Dental Plan of California. Your employees are among the more than six million Californians in over 2,000 employer groups who enjoy dental benefits from Delta. This renewal letter should be kept with your contract documents and serves as an amendment to your Delta contract, The renewal date for your contract is October 1, 1991. To renew your contract for two years, you need only begin paying the rates outlined below with the new contract term. Current Rates Renewal Rates One Party $ 25.38 $ 29.69 Two Party 48.36 56.58 Three Party + 81.93 95.86 In addition to vour renewal, sealants will be included as a standard benefit beginning with your program's renewal. Sealants will be covered at the same copayment level as Basic Benefits. See the attached insert for a description of the benefit and its limitations. A crucial assumption made by Delta in the calculation of your renewal rate is that all of your eligible employees are enrolled in your Delta program (or alternate dental program), and that no employee may choose not to have dental coverage. Please be aware that if you permit such a choice by your employees, Delta may adjust your rates. Your renewal rates are teased on the combined experience of more than 700 groups employing less than 100 employees each. Pooling experience has proven to be the most reliable method forecasting costs for groups of your size. Headquarters Office: P.O. Box 7736,San Francisco,California 94120•Delta Tower at 100 First Street, San Francisco,California 94105 •(415)972-8300 P.O. Box 3370, Cerritos, California 90703• 17785 Center Court Drivc, Suite 200, Cerritos, California 90701 •(213)403-4040 3655 Nobel Drive, Suite 430, San Diego, California 92122•(619)231-8665 1900 Gateway Boulevard, Suite 162, Fresno, California 93727•(209)251-7313 10 City of Dublin Page Two July 15, 1991 Your continued confidence in Delta Dental is appreciated. We are proud of our association with you and look forward to a long and mutually successful relationship in the future. Very truly yours, DELTA DENTAL PLAN OF CALIFORNIA Lynette Crosby Director of Marketing feaver resident, Operations LC:JW:vb cc: Candace Hirsch Important Notice: Contract Addition The following is an addition to your contract under Article 6. To acknowledge this addition to your contract, please read and return one signed copy. Delta's provision of Benefits is limited to the applicable percentages of dentist's fees or allowances specified in Article IV. The Eligible Person is responsible for paying the balance of any such fee or allowance, known as the "patient copayment". Applicant has chosen to require patient copayments under this program as a method of sharing the costs of providing dental Benefits between Applicant and Eligible Persons. If the dentist discounts, waives or rebates any portion of the patient copayment to the Eligible Person, Delta will be obligated to provide as Benefits only the applicable percentages of the dentist's fees or allowances as reduced by the amount of such fees or allowances that is discounted, waived or rebated. Delta Group #: Acknowledged: Name Title (Date) I IMPORTANT NOTICE: BENEFIT ADDITION r;ITY DUBLIN The following benefit will be added to all Delta Dental group programs effective or renewing on and after January 1, 1991. Delta's copayment for sealants will be the same as the Basic Benefit copayment. Sealants - topically applied acrylic, plastic or composite material used to seal developmental grooves and pits in teeth for the purpose of preventing decay. Sealant Benefits are limited as follows: 1) Sealants are available to Eligible Persons under the age of 14. 2) The benefit includes only the application of sealants to permanent posterior molar teeth with no caries (decay), with no restorations and with the occlusal surface intact. 3) Sealant benefits do not include the repair or replacement of a sealant on any tooth within three (3) years of its application.