HomeMy WebLinkAboutItem 4.13 PersonnelSystemRev
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 21, 2005
CITY CLERK
File # D~[gJ[(2]-r¥1[Q]
72..0-&0
SUBJECT:
Revisions to the Personnel System
Report Prepared by: Julie Carter, Assistant to the City Manager
ATTACHMENTS:
1. Resolution Amending the Personnel System Rules
2. Resolution Amending the Benefit Plan
3. Resolution Fixing Employer's Contribution Rate Under the
Public Employees' Medical and Hospital Care Act.
4. Resolution Fixing Employer's Contribution Rate Vesting
Requirement For Future Retirees Under the Public Employees'
Medical and Hospital Care Act.
RECOMMENDATION: ~1. Adopt Resolutions.
FINANCIAL STATEMENT:
Sufficient flmds have been included in tbe City's Fiscal Year 2005-
2006 budget to cover the cost associated with funding City provided
health and welfare benefits.
DESCRIPTION: The Fiscal Year 2005-2006 discussions with employees' regarding
wage and benefits, resulted in the City agreeing to take the necessary steps to amend its CalPERS
retirement contraet to include 2.7% at 55 formula effective August 20, 2005 (see Staff Report wIder
Public Hearing) and several other health and welfare benefits that are discussed in detail within this report.
In consideration for the collective health and welfare enhancements, City employees agreed to pay I % of
the 5% increase in CalPERS rates associated with implementing 2.7% at 55 and 1% from future salary
increases as described below in this report. The agreement between the City and City employees amounts
to the employees picking up 40% of the cost of the 2.7% at 55 retirement enhancement. The eost sharing
agreement with City employees will be permanent.
This Staff report identifies those proposed changes to the City's Benet1t Plan for City paid health benefit
as presented by the City's Labor Negotiator (the City Manager) and agreed to by Dublin City employees.
The proposed changes to the City's Benefit Plan are scheduled to be effective July I, 2005 unless
otherwise noted.
The Personnel System Rules
The City Cowlcil has adopted rules for the administration of the City's Personnel System. Based on the
market survey and on discussions with City employees, the following amendments to the Personnel
System Rules are proposed (Attachment 1):
COPIES TO:
l~1f
ITEM NO.A.1j
A. RULE XIV. COMPENSA nON A NO BENEFITS Section 6. "Method of Compensation"
Regular and probationary non-exempt employees, working in excess ofnorrnal 40-hour work
period, shall be paid at an hourly rate of one and one-half times the regular hourly rate.
Regular non-exempt and probationary non-exempt employees may choose to be compensated
for overtime work through compensatory time off (comp time) at the rate of one and one-half
hours eomp time per overtime hour worked instead of receiving cash payment. Comp time
may be accrued up to a maximum of 80 hours for regular and probationary non-exempt
employees. The City has agreed to increase the comp time bank from 24 to 80 hours.
B. RULE XV. SALARY ADJUSMENTS Section 1. "Market Rate Adjustments"
On July 1,2002, the City Manager adjusts all employees' salaries based upon on armual salary
survey as approyed by the City Council. The increasc in an employees' individual salary range
as approyed by the City Council is subjeet to a cap of 4%, which represents a 1% reduction
from prior years 5% cap. Employee haye agreed to a permanent I % future salary range
reduction in consideration of the City's Fiscal Year 2005-2006 health and weltàrc benefit
packagc.
The proposed amendments to the Personnel System Rules are shown in Attachment I; all-remaining
sections of this document would remain in tact.
The Benefit Plan
Thc City's Personnel System Rules requires the City Council to adopt a Benefit Plan. The Benefit Plan
proyides a summary ofthe 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. Based on the market survey and on discussions with City employees, the
following amendments to the Bencfit Plan arc proposed (Attachment 2):
Section 1. Eligible Employees: the amendment to Section I further defines City employees pursuant
to language rccommcndcd by the City Attorney's Office.
Section 2. Medical Insurance: the amendment to Section 2 increases thc City's health care premium
from the current $873.50 per month to $922.19 per month. This new amount represents the currcnt Kaiser
Family rate under the City's contract with CalPERS Public Employees' Medical and Hospital Care Act
(PEMHCA). The City agreed to increase the contribution to this amount effective July 1, 2005. City
employees agreed that beginning with the January 2006 PEMHCA rates, a 50/50 split on future medical
premiums would apply through Fiscal Year 2007-2008.
Section 7. Retirement: the amendment to Section 7 changes the City's retirement formula from 2% at
55 to 2.7% at 55 on August 20, 2005. The City agreed to implement 2.7% at 55 including paying and
reporting employee contribution by the contracting agency and Intcrnal Revenue Code (IRe) 414 (h) (2).
The actual implementation of the CalPERS retirement enhancement requires a Public Hearing. The Staff
Report located under the Public Hearing scction of the City Council's Agenda this evening provides
further details of how the City will implcment the 2.7% at 55 retirement formula. City employees have
agreed to cost share in the implementation of2.7% at 55 and will make a 1% direct payment to CalPERS
Q.~t..\
beginning with the pay period of August 20, 2005 in addition to the future salary reduction described
above.
Section 9. Deferred Compensation Plan: the amendmept to Section 9 provides for the addition of
other deferred compensation programs provided by the International City Management Association
(ICMA). The Citv makes no contribution to these voluntarv programs.
Section 11. Education Reimbursement: the amendment to Section 11 increases the amount the City
will make available to qualified employees for eligible courses takcn that are job related, or are part of a
job related course of study and/or degree program. City employees obtain prior authorization from the
City Manager and received reimbursement only after proof of satisfactory completion of the cOUfSe(s) is
undertaken with a passing grade. Currently, the City will reimburse an amount equal to 75% of the
employee's tuition and/or fees that shall not exceed $1,000 per Fiscal Year; the City agreed to increase the
Fiscal Year reimburscment amount to $1,400. The adjustment to this amount was supported by data
collected through the City's health and welfare benefit survey process.
The proposed amendments to the City's Benefit Plan are shown in Attachment 2; all-remaining sections of
this document would remain in tact.
Fixing EmDlover's Contribution Rate Under the Public Emplovecs' Medical and Hospital Care Act.
As described abovc, the City currently contracts with the California Public Employees' Retirement
System (CaIPERS) for the provision of health benefits as do a number of other public agencies. CalPERS
allows each participating agency to designate thc amount to be contributed by the employer. The City is
required by Ca1PERS to contribute the same premium amount for current (active) employees as it does for
retircd employees. Presently, the City contributes $873.50 per month per employee/retire for medical
insurance. Premium amounts that exceed thc City's maximum contribution are paid directly by the
emp10yee/retiree.
During the Fiscal Year 2005-2006 health and welfarc benefit discussions City employees agrecd to the
City Council's proposal to increase the City's current health contribution of $873.50 to the Kaiser Family
prcmium beginning July I, 2005 (or $922.l9/mo.) and further agreed that future premium increases
beyond $922.19 per month would be split 50/50 between City employees and the City starting with the
2006 calendar year CalPERS healtll premiums; continuing this arrangement for three fiscal years (through
Fiscal Year 2007-2008).
It is necessary for the City to amend the City's Benefit Plan establishing the maximum medical insurance
contribution at $922.19 effectivc July 1, 2005. Premium adjustments in future years will require the
adoption of rcsolutions based on the 50/50 City/Employee split formula and yet to be determined monthly
premIUms.
Attachment 1 amends the City's Benefit Plan effective July I, 2005, to a fixed ratc of $922.19 exclusive
of administrative charges, toward medical insurance. In addition to amending the City's Benefit Plan to
limit the City's contribution to $922.19, it is also necessary to adopt two separate CalPERS Resolutions
fixing thc employer's contribution under the Public Employees' Medical and Hospital Care Act
(PEMHCA). The attached resolutions (Attachment 3 and 4) increase the City's contribution from $873.50
per month to $922.19 for current (active) employees and current/future retirees.
-3004
The proposed increase is effective with the July I, 2005 premium statements rrom CaIPERS. Sufficient
funds will be established by the adoption of the Fiscal Year 2005-2006 Budget to cover City paid hcalth
and welfare benefits.
In summary, the Fiscal Year 2005-2006 discussions with employees' regarding wage and benefits,
resulted in the City agreeing to take the necessary steps to amend its CalPERS retirement contract to
include 2.7% at 55 formula effective August 20, 2005 and several other health and welfare benefits.
Inconsideration for the collective health and welfare enhancements, City employees agreed to pay I % of
the 5% increase in CalPERS rates associated with implementing 2.7% at 55 and 1% rrom future salary
increases as described below in this report. The agreement between the City and City employees amounts
to the employees picking up 40% of the cost ofthc 2.7% at 55 retirement enhancement. The cost sharing
agreement with City employees will be permanent.
Staff recommends that the City Council review the modifications to the City's Personnel System Rules
and Benefit Plan and adopt the necessary resolutions as attached to this report.
4ðQ~
RESOLUTION NO. - 2005
I ifb (P
A RESOLUTION OF THE CITY COUNCIL
OF TIlE CITY OF DUBLIN
*********
AMENDING THE PERSONNEL SYSTEM RULES
WHEREAS, the City Council is authorized to adopt rules for the administration of the City's
personncl system; and
WHEREAS, the City Council adopted Resolution 141-90 and subsequent amendments
establishing the Personnel System rules; and
WHEREAS, the objective of these rules is to facilitate efficient and economical services to the
public and provide for an equitable system of personnel management in municipal government.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby
amend the Personnel System Rules as follows:
RULE XIV. COMPENSAnON ANO BENEFITS
Section 6. "Method of Compensation": Regular and probationary non-exempt employees, working in
excess of normal 40 hour work period, shall be paid at an hourly rate of one and one-halftimes the regular
hourly rate. Regular non-exempt and probationary non-exempt employees may choose to be compensated
for overtime work through compensatory time off (comp time) at the rate of one and one-half hours comp
time per overtime hour worked instead of receiving cash payment. The decision to receive overtime pay
or comp time credit shall be made at the end of the pay period in which the overtime is worked.
Employees may not convert comp time to overtime pay except at termination of employment. Comp time
may be accrued up to a maximum of 80 hours for regular and probationary non~exempt employees. If an
employee has accrued any unused comp time at termination, the employee shall be paid for such unused
comp time at his/her regular rate of compensation at termination.
RULE XV. SALARY ADJUSTMENTS
Section 1. "Market Rate Adiustments ": All Market Rate Adjustments shall be based on an armual salary
survcy as determined by thc City Manager and approved by the City Council.
b. The Markct Rate Adjustments amount shall be established on an annual basis based on the
changc in the employcc's salary range from one Fiscal Year to the next and shall not exceed
4% unless an employee's actual salary falls more than 4% below the bottom ofthe new salary
range.
BE IT FURTHER RESOLVED that the changes contained herein shall be cffcctivc July 1,2005.
G,-21-oS 4-,13
Attachment I
PASSED, APPROVED ANO ADOPTED this 21" day of June, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
rJ'C(fÞ
Mayor
Attachment 1
81J&
RESOLUTION NO. - 2005
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
AMENDING THE BENEFIT PLAN
WHEREAS, the Persollilel System Rules requires the City Council to adopt a Bcncfit Plan; and
WHEREAS, the Bcncfit Plan prescribes the current benefits provided to employees by the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
amends Resolution 109-91 and subscqucnt amendments to include the following:
Section 1. Eligible Emplovees: All benefits shall apply to full-time employees of the City of Dublin,
unless otherwise stated. The benefits outlined in this plan shall not be provided to temporary, provisional
or contract employees, or to individuals who provide services to the City pursuant to contract unless the
contract explicitly provides for such benefits.
Section 2. Medical Insurance: All City employees who are members of the Public Employees Retirement
Systcm (PERS) shall be eligible to sclcct from plans administered by the Public Employees Medical and
Hospital Care Act.
Beginning with the July 1,2005 premium, the City of Dublin will contribute a maximum of up to
$922.19 per month premium, 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.
Scction 7. Rctircmcnt: The City will provide the California Public Employees Retirement System 2.7%
at age 55 (Section 21354.5 of the California Public Employees' Retirement System Plan), effective
August 20, 2005 and One Year Final Compensation (Section 20042 of the California Public Employees'
Retirement System 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 emp1oyees, seven percent (7%) of the enlployees' statutory contribution required
by PERS. Contributions made pursuant to this section shall be reported as "paying and
reporting employee contributions by the contracting agency." Said contributions shall not
bc provided to temporary, provisional, or contract employees or to individuals providing
services to the City pursuant to contract unless the contract explicitly states that the City is
to pay the employee's contribution rate required by PERS.
City employees shall pay 1% of the employees' contribution rate effective August 20, 2005.
The City shall apply the provisions of Internal Revenue Code (IRC) 414 (h) (2) to the
cligible payroll deductions for employee PERS contributions so long as such provision
remains available to the City.
Attachment 2
t.j "b (p
Section 9. Deferred Compensation Plan: Participation in a variety of deferrcd compensation plans is
offered. These shall be a voluntary programs and the City will not contributc any funds on behalf of an
employee. Participation is currently offered in programs administered by the International City
Management Association.
Section 11. Education Reimbursement: Full-time and regular part-time employccs shall be eligible to
participate in an education reimbursement program. The City shall only reimburse the employee for
courses Wldertaken which are job related, or are part of a job related course of study and/or degree
program. 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 Wldertaken with a
passing grade when applicable. The City will reimbursc an amount equal to 75% of the employee's tuition
and/or fees, (including books). For full-time employees, the amount reimbursed shall not exceed $1,400
per Fiscal Year; for employees scheduled to work between 20-39 hours per week, the amount shall be pro-
rated based on regularly scheduled hours. The paymcnt of any reimbursements shall be contingent upon
the fulfillment of reporting requirements established by the City Manager
PASSED, APPROVED AND ADOPTED this 21" dayofJune, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
...
City Clerk
Attachment 2
RESOLUTION NO. - 2005
5ð'ó~
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * .*
FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE
PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT
WHEREAS, Goyemment Code Section 22892(a) provides that a local agency contracting
under the Public Employees' Medical and Hospital Care Act shall fix the amoWlt of the employer's
contribution at an amount not less than the amount required under Seetion22893(l) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each employee or
annuitant shaH be the amOlmt necessary to pay the cost of his /her enrollment, including the ellfolhnent of
his/her family members, in a health benefit p1an, up to a maximum of$922.19 dollars per month plus
administrative fees and Contingency Rescrvc Fund assessments.
PASSED, APPROVED ANO ADOPTED this 21st day of June, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Attachment 3
~ff{)(P
RESOLUTION NO. - 2005
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
FIXING THE EMPLOYER'S CONTRIBUTION VESTING REQUIREMENT FOR
FUTURE RETIREES UNDER THE PUBLIC EMPLOYEES' MEDICAL
AND HOSPITAL CARE ACT
WHEREAS, Government Code Section 22892(a) provides that a local agency contracting
under the Public Employees' Medical and Hospital Care Act shall fix the amount of the employer's
contribution at an amount not less than the amount required under Section 2289 (1) of the Act; and
WHEREAS, the City of Dublin is a local agency contracting under the Act.
NOW THEREFORE BE IT RESOLVED that the employer's contribution for each active aod
retired employce first hired on or after April I, 2004 shall be the amount necessary to pay thc cost of
his/her enrollment, including the enrollment of his/her family members, in a hcalth benefit plan, up to a
maximum of $922_19 dol1ars per month plus administrative fees and Contingency Reserve Fund
assessments.
PASSED, APPROVED AND ADOPTED this 21" dayofJune, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Attachment 4