HomeMy WebLinkAbout19-02 • •
RESOLUTION No. 19-02
A RESOLUTION OF
THE CITY COUNCIL OF THE TOWN
OF LOS ALTOS HILLS AMENDING THE TOWN'S
EMPLOYEE BENEFIT LISTING
WHEREAS, the City Manager recommends that the Employee Benefits be amended as
shown in the attached Exhibit A, including the following modification to current benefits:
Provide for a vision plan for each employee and that employee's dependents.
WHEREAS, the City Council has considered such recommendations and desires to
establish employee benefits in order to attract and retain a quality staff for the Town of
Los Altos Hills;
NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby
approve the employee benefits, presented as Exhibit A and attached hereto.
REGULARLY PASSED AND ADOPTED this 7th day of Feb; 2002.
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BY: I i
ayor Pr• Tern
l •
ut;u.)
City Clerk
TOW1\1 OF LtIS,. ALTOS- HILLS
EMPLOYEE BENEFITS
ADOPTED BY THE CITY COUNCIL
February 7, 2002
Employee benefits are not vested (with the exception of retirement benefits after five
years). The Town reserves the right to repeal, amend and add to any of these benefits as
deemed appropriate.
Vacation Leave
I. General Description
Vacation leave consists of paid time off for full time employees as well as some part time _.
employees (see "Eligibility below). Vacation leave is earned and accrued with each pay
period worked.
II. Eligibility
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Regular, full-time employeesand part-time employees who regularly work an average of
twenty hours per week or more are eligible for this benefit. Parttime employees who
work less than twenty hours per week, temporary employees and retired employees are
not eligible for this benefit. '
III. Benefit
The amount of vacation earned each year is determined by the length of time worked for ;
the Town. Vacation is accrued on a semi-monthly basis and is computed according to the
following schedule for full time employees:
Years of Service Annual Vacation Days Earned
0-5 12
6-10 15
11 and above 20
Part time employees who work twenty hours or more per week earn a pro-rated number of
vacation days based upon the average number of hours worked per week divided by 40.
IV. Method of Administration
The maximum number of vacation hours that may be accrued by an employee is 240. If
vacation hours are not used and the balance reaches 240 hours, no further vacation hours
are accrued until the balance drops to less than 240 hours. No provision shall be made for
"payout" of accrued vacation hours.
Use of vacation time must be requested in advance and approved by a Department Head
or City Manager. An employee may only use vacation hours which they have previously
accrued. Use of vacation time in increments of less than four hours is discouraged. If
employment with the Town is terminated for any reason, the employee will be paid for
the balance of their accrued vacation hours at their-current salary rate.
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Sick Leave
I: General Description
Sick leave is paid leave time which may be used when an employee is ill. Sick leave may '
also be used by an employee to care for an injured or sick member of their immediate
family.
U. Eligibility
employees Regular, full-time and part-time employees who regularly work an average of
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twenty hours per week or more are eligible for this benefit.. Part-time employees who
work less than twenty hours per week, temporary employees and retired employees are
not eligible for this benefit.
III. Benefit .
Full time employees earn 12 days (1 day/month).of paid sick leave for eachyearwith the
Town. Sick leave is earned on a pro-rated basis by regular part-time employees who
work more than twenty hours per week. Sick leave may be used to care for a sick or
injured member of an employee's immediately family,, or to .discharge..customary
obligations arising out of the death of a member of their immediate family. In the case of
a death in the immediate family, up to 3 days of bereavement leave may be granted by the
City Manager, which will not be subtracted from an accumulated sick leave balance.
IV. Method of Administration
To use sick leave, the employee must have their supervisor's approval. Employees must
contact their supervisor at the beginning of the work day during which they are ill. If an
employee is absent on sick leave for more than three days, a supervisor may request that
the employee submit a statement from their doctor. Earned sick leave hours can be
accrued without limit.
benefit is for the described uses for this benefitno payment value is
The sick leave only;
associated with sick leave hours accrued. Therefore, if employment is terminated with the
Town for any reason, no payment will be made to the employee for any balance of
accrued sick leave hours.
Compensatory Time Policy (Comp Time)
I. General Description .
Comp time is that time accrued by a non-exempt employee as a result of working
overtime approved by the supervisor.
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II. Eligibility
Regular, full-time employees are eligible for comp time if the work is determinedto be
"overtime work" and is approved by the employee's supervisor.
III. Benefit -
When a non-exempt employee is required to work "overtime" as defined in the Town's
Personnel Policy Manual, that employee shall be compensated for those hours worked,
either through overtime pay at a rate of one-and-one-half times the employee's regular
rate per hour, or through compensatory time off(comp time) at a rate of one-and-one-half
times the number of hours worked.
III. Method of Administration
Employees may bank comp time hours accrued, to be used as time off at a later date. Use
of comp time hours must be approved by their supervisor. A supervisor may deny the
request for use of comp time hours as time off if it is determined that use of said leave
time has a material negative impact on the operations of that department.
Employees may accumulate comp time hours during the course of the year, but may not
carry over a balance of more than 150 comp time hours from one fiscal year to the next.
This carry over requirement will be phased in such that the limit of comp time carry over
for the end of FY 1998/99 will be 240 hours and the carry over limit at the_end of FY
1999/2000 and thereafter will be 150 hours. Hours that can not be carried over will be
i current rate. If employment with the Town is terminated for
paid to the employee at their
any reason, the employee will be paid for the balance of their accrued comp time hours at
their current salary rate.
ADMINISTRATIVE LEAVE ,
I. General Description
Administrative'leave is any type of leave for which pay is received by management .
employees other than vacation, sick leave and holidays.
II. .Eligibility
The following positions are considered management employees:
• City Manager
• City Engineer/Public Works Director
• Planning Director -
• Public Works Manager
• Administrative Services Director
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III. Benefit
Administrative leave provides an additional number of leave hours for Department Heads
and the City Manager, who are not eligible to receive overtime pay. Department Heads
and Managers receive seven days of administrative leave per calendar year. The City
Manager'sadministrative leave is set by contract.
IV. Method of Administration
This benefit is earned and accrued with each pay period worked during the calendar year
at the rate of seven days a year. Use of administrative leave is at the discretion of the City
Manager, with no carryover from one year to the next.
Jury Duty
I. General Description
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Jury duty leave consists of paid leave for service as a juror.
II. Eligibility .
Regular, full-time employees and part-time employees who regularly work twenty hours
per week or more are eligible for this benefit. Part-time employees who work less than
twenty hours per week, temporary and retired employees are not eligible for this benefit.
III. Benefit
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Leave with pay is granted for jury duty service, however, an employee must pay to the
Town any compensation received for jury service. Mileage compensation for jury duty
service may be retained.
IV. Method of Administration .
Paid leave for jury duty is approved upon proof of service and surrender of compensation
for jury duty to the Town.
Leave Without Pay
Leave without pay is discouraged and is not considered a benefit. The City Manager may,
however, grant leave without pay for a limited time for urgent or substantial personal.
reasons. Leave accruals and other employee benefits will be suspended or pro-rated (if
applicable) during any period of leave without pay.
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Military
The provisions of the California Military and Veterans Codegovernsthe military leave of
the Town. This is not considered.a Town benefit.
Holidays
I. General Description
Thereare twelve holidays per year recognized by the Town for which employees receive
paid time off. Town Hall is closed on these days. Town employees receive twelve paid
holidays each year as shown below.
II. Eligibility •..
Regular, full-time employees and part-time employees who regularly work an average of
20 hours per week or more are eligible for this benefit. Part-time employees who work
less than twenty hours per week; temporary employees and retired employees are not
eligible for this benefit. .
III. Benefit
The holidays observed by the Town are as follows:
• New Year's Day ' - January I.
• Martin Luther King Day Third Monday in January
• Presidents'Day Third Monday in February
• Memorial Day Last Monday in May
• Independence Day July 4
• Labor Day First Monday in September
• Columbus Day Second Monday in October •
• Veterans'Day '. November 11
• Thanksgiving Day Fourth Thursday in November
• Day after Thanksgiving Fourth Friday in November
• Christmas Eve Day December 24 ,
• Christmas Day - December 25
IV. Method of Administration
Town Hall is closed on all holidays. Regular, full-time employees are paid their
equivalent salary for an eight hour work day for each Town holiday. Regular, part-time
employees who work twenty hours per week or more are paid a pro-rated amount for the
holiday. Holiday leave does not accrue. If a holiday falls on a Saturday, an employee
receives the preceding Friday off from work. If a holiday falls on a Sunday, the employee
receives the following.Monday off. When anemployee takes a vacation,during which a '
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holiday occurs, the employee will be compensated for the holiday using the holiday
benefit; compensation for the holiday is not charged against their accrued vacation time.
Health Plans
I. General Description
The cost of health insurance premiums is paid by the.Town for employees and their
dependents. Employees have the choice of several plans enabling them to seek the best
program for their family's needs.
II. Eligibility
Regular, full-time employees and their eligible dependents are covered by this benefit.
Part-timeemployees who regularly work 20 hours per week or more and their dependents
are eligible for a pro-rated share of payment of their health insurance premium payment:
This benefit continues for employees who retire directly from the Town, assuming that
the retiree enrolls for Medicare coverage, if eligible. The spouse of an eligible retiree,
also may receive this benefit.
III. Benefit
Through the California Public Employees Retirement System, employees are offered a
choice of Health Maintenance Organizations, Preferred Organizations and "Association"
plans. The list of health care providers is on file with the Finance Department and may
change in number and makeup over time. The cost of these plans varies, depending on
the employee's plan selection and the number of dependents insured. The Town
contributes an amount equal to the average amount of health insurance premiums offered
in each category of coverage (i.e. 1 person, 2 persons, and 3 or more persons) for each
employee's health insurance premium.
IV. Method of Administration
The Town's contribution toward an employee's health insurance premium is calculated
for -each category of coverage by determining the average premium amount for each
category. A new maximum contribution amount is calculated each time PERS adjusts
their premium rates, and is adopted by resolution of the City Council. If an employee
selects a health care plan with a premium amount higher than this maximum contribution,
the balance of the premium must be paid by the employee through payroll deductions.
During periods of paid leaves or leave covered by the Town's Family and Medical Leave
policy, the Town will continue it's maximum contribution toward an employee's health
insurance premium. If an employee is on leave without pay due to a non-job related
injury or a serious illness, that employee's health insurance premium will continue to be
paid by the Town to the extent that they are paid while the employee is on the job, until
90 days after the employee has been absent from service. This timeperiod corresponds to
Employee Benefits 7 02/07/2002 .
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the beginning of an employee's long term disability leave benefit. Payment of the
premium after that time is the responsibility of the employee.
Dental Plan
I. General Description
The Town's dental plan consists of direct payment or reimbursement for employee and
dependent dental costs, up to a defined maximum for each fiscal year.
II. Eligibility.
Regular, full-time employees are eligible for dental benefits. This benefit also covers
dental work'of the dependents of eligible employees. Dependents, for the'purposes of this
benefit, are defined as an employee's spouse and children (including children that the
employee is the legal guardian of) who are 18 years old or younger. Part-time employees
who regularly work twenty hours per week or more are eligible for a pro-ratedshare of the
maximum dental benefit. Part-time employees who regularly work less than twenty hours
per week, temporary and retired employees are not eligible for this benefit.
III. Benefit
Dental benefits.to Town employees consists of direct payment or reimbursement of dental
costs for employees and their dependents, for a maximum annual benefit of$800.
IV.Method of Administration
This benefit is administered on a.fiscal year basis. Employees may elect to pay for dental
care directly and seek reimbursement from the Town by submitting the required Town
dental forms to the Finance Department. An employee may also elect to have their dentist
bill the Town directly for dental care received. The Town tracks the amount each
employee has been reimbursed in a year, paying no more than the`maximum benefit
amount in any fiscal year. Newly hired.employees must work at leastsix months of a
fiscal year to be eligible for this.benefit. The benefit is then pro-rated for the number of
months worked in that fiscal year. However, the employee may receive reimbursement for
any eligible dental expenses incurred subsequent to his/her employment date. .
Vision Plan
I. General Description
The cost of vision insurance premiums is paid by the Town for employees and their
dependents. ,
Employee Benefits 8 -02/07/2002
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II.. Eligibility
Regular, full-time employees are eligible for this benefit. This benefit also covers vision
services for the dependents of eligible employees. Dependents, for thepurposesof this
benefit, are defined as an employee's spouse and children (including children thatthe
employee is the legal guardian of) who are 18 years old or younger. Part-time employees
who regularly work twenty hours per week or more are eligible for a pro-rated share of the
maximum vision benefit. Part-time employees who regularly work less than twenty hours
per week, temporary and retired employees are not eligible for this benefit.
III. Benefit
Employees are offered the vision plan through Vision Service Plan.
IV. Method of Administration
The Town's contribution toward an employee's vision insurance premium is calculated for. .
each category of coverage—employee or employee and family.
Life,and Accidental Death and Dismemberment Insurance
I. General Description
The Town provides employees with an. amount of life, insurance determined by. the -
employee's annual salary. Accidental Death and Dismemberment coverage is also;,
provided at no cost to the employee.
II. Eligibility
Regular, full-time employees and part-time employees who regularly work an average of
twenty hours per week or more are eligible for this benefit. Part-time employees who
work less than twenty hours per week, temporary and retired employees are not eligible
for this benefit. ,
III: Benefit
The Town pays the premium for regular full-time employees life insurance as well as
their accidental death and dismemberment insurance. Under these policies, each full-time
employee is provided coverage for the lump sum amount of the nearest one thousand.
dollar increment ,above an employee's yearly gross salary. The City Manager.'slife
insurance amount is set by contract.
IV. Method of Administration
The Finance Department calculates and pays the premiums for each-employee based on
their salary. Disbursement of the benefits are made by the insurance provider and would
Employee Benefits 9
02/07/2002
be paid to the beneficiary named by the employee at the time of hire or by any subsequent
notice.
Lone Term Disability Insurance
I. General Description
Long term disability insurance is an insurance policy for the protection of an employee's
salary in the event of a disabling event which prevents an employee from performing their
job..
II. Eligibility
Regular, full-time employees and part-time employees who regularly work an average of
twenty hours per week or more are eligible for this benefit. Part-time employees who
work less than twenty hours per week, temporary and retired employees are not eligible
for this benefit.
III. Benefit '
Employees are insured against long-term disability through third-party insurance which
"provides 60 percent of an employee's monthly earnings to a maximum benefit of
$5000.00 per month, in the event of a disability which occurs outside of the work place.
Workers Compensation insurance provides coverage for on-the-job injuries. Coverage
begins 90 days following a disabling event and continues to an end date determined by
your age.
IV.Method of Administration
This benefit is administered by the third party insurance provider. The Town pays the
insurance premiums. Benefit payments begin three months after a disabling event,
subject to the provisions of the policy.'
Family Medical Leave Act
Employees:of the Town are subject to the provisions of the Federal: Family Medical
Leave Act. This act is not considered a town benefit. Additional details of this Act are,
contained in the Personnel Policy Manual.
Workers' Compensation
I. General Description
Through worker's compensation, employees are insured against losses due to job-related
illness or injury.. Under this ABAG-administered program, medical expenses are paid
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and, while disabled, employees are eligible for weekly compensation basedon their
salary.
II. Eligibility
Regular, full-time employees and part-timeemployees and temporary employees are
eligible for this benefit. Retired employees are not eligible for this benefit.
III. Benefit
When an employee suffers an eligible workers, compensation injury, the employee is
eligible for receipt of 2/3 of his/her salary or $490 per week, whichever is lower, as well
as authorized health care costs, through the workers compensation claim. Employees on
workers' compensation leave may use accrued sick leave to supplement any monetary
difference between their normal rate of pay and workers compensation's temporary
disability benefits.
IV. Method of Administration.
Workers compensation claims are administered for the Town by ABAG. All on-the-job
_ _ injuries must be reported to, ABAG,immediately. When an employee makes, a workers
compensation claim, the claim must be submitted to the Town on the appropriate claim
form supplied by ABAG, and must be accompanied with verification of the injury by a
physician as well as the recommendation that the employee be absent from work for a
certain length of time to allow recovery from the injury. ABAG makes the determination
as .towhether, a claim is eligible for payment and which medical bills are eligible for
reimbursement.
Deferred Compensation
I. General Description
. Town employees are eligible to participate in approved deferred compensation .plans
through payroll deductions. These deductions are forwarded to the appropriate institution
by the Finance Department at the time that each payroll is issued.
II. Eligibility
Regular, full-time employees and part -time employees who regularly work twenty hours
per week or more are eligible for this benefit. Part-time employees who work less than
twenty hours per week, temporary and retired employees are not eligible for this benefit.
III. Benefit
The two companies that are approved by the Town to administer this benefit are the
Hartford Insurance Group and thea ICMA Retirement Trust Corporation. Deferred
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compensation is self-funded with no contribution from the Town unless otherwise
stipulated by contract. Employees who elect to participate have an amount deducted from
each paycheck deposited directly into their deferred compensation account. The
maximum annual contribution established by currentfederal law is $11,000 or 25% of an
employee's annual earnings, whichever is less.
IV. Method of Administration
Deferred compensation transactions are handled at the time that payroll is run.
Deductions from an employee's gross pay are deposited in the appropriate account and
are itemized on the employee's check stub. Taxable income at year end is based on an
employee's post-deduction, gross pay., Federal and State income taxes are not calculated
or withheld on amounts deposited in employee deferred compensation accounts, as they
are deferred until withdrawals from the account begins (usually upon retirement).
Credit Union
All Town employees are eligible to become members of the. Santa Clara County
Employee's Credit Union. The advantages of the programs offered to member employees
are typical of credit union membership, at no cost to the Town.
Employee Assistance Program
I. General Description
The Employee Assistance Program is a confidential referral service for help in dealing
with many kinds of personal problems that an employee may have. This program is an
effective manner to deal with employee issues that, while affecting employee
performance, are beyond the scope of management's. control. The services provided
would;include counseling, crisis intervention, training and consultation.
II. Eligibility
Regular, full time employees and part time employees who regularly work twenty hours .
'per week or more are eligible for this benefit. Part time employees who work less than
twenty'hours per week, temporary and retired employees are not eligible for this benefit.
III. Benefit
The Town provides an Employee Assistance Program called. CONCERN, through El
Camino Hospital. The program offers assessment, counseling, 24-hour crisis
intervention, child/elder care services, legal and financial resources, management
consultation, supervisor training and employee workshops.
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IV. Method of Administration
CONCERN offers a fee-for-service pay plan, where services are bundled into a case rate
which varies depending on how many free visits are offered to employees.. Employees
may confidentially use the services of CONCERN withoutprior approval of a Town
supervisor or City Manager. El Camino Hospital then bills the Town for the service
provided.
Uniforms
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I. General Description
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Public Works Crew members are supplied with Town uniforms and appropriate safet y
gear. The footwear necessaryfor work in varying terrain is also provided.
II. Eligibility
Regular, full-time,public works crew members are eligible for this benefit.
III. Benefit
Each crew member is provided with six clean shirts and six clean pairs of pants per week,
which serve as.uniforms. Crew members are also allotted one pair of work boots per year
which are charged to the Town's account.
IV. Method of Administration.
These items are budgeted for in the Public Works budget as supplies and are not included
in the benefits budget. Uniforms are purchased by the Town and are laundered weekly.
Shoes are purchased by each crew member from the Red.Wing:Shoe Company store no
more than once per year and are charged to the Town account.
Retirement
I. General Description
The Town's retirement program provides employees with compensation through their
retirement years in anamount which is based upon years of service, age of employee at
the beginning of their retirement and highest compensation during their tenure.
II. Eligibility
All regular, full-time and part-time employees who work twenty hours per week or more
are members of the Public Employees,Retirement System. Temporary employees may
also enroll in the PERS program, but must pay the employee's portion of the retirement
contribution.
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III. Benefit
The Town contributes an employer share of retirement contribution basedon the gross
salary for each eligible employee, and also pays the employee's share of the retirement
contribution. The employee's share is equal to 7% of their yearly gross salary. No
deduction is made from an employees ,earnings for this retirement benefit, unless a
temporary elects to participate in the PERS program. In that case, the employee would
make their own contribution to the plan. Employees of the Town do not pay into the
Social Security system.
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The Town's contract with CalPERS provides service retirement benefits under the "2% at
55" formula.; The formula uses a multiplier of x %, times the number of years service, to
determine retirement benefits at a given age. For example, under the 2% at 55 formula, a
retiree with 10 years of service retiring at age 55 would receive an annual retirement
benefit of 20% of his/her final (adjusted) annual salary. The earliest retirement date is
age 50, with at least 5 years of service. The table below shows the "benefit factor", or
• multiplier for the 2% at 55 plan.
2% @ 55
Retirement • Percent
Age Per Year
X .
50 1.426
51 1.522
52 1.628
53 1.742
54 1.866
55 2 000
56 2.052 '
57 2.104
58 2.156
59 2.210
60 2.262
61 2.314
62 2.366
63 and over 2.418
IV. Method of Administration
The Finance Department makes the appropriate payment to PERS (Public Employee
Retirement System) with each payroll cycle. PERS keeps detailed records of each
employees account and sends annual statements to all employees at the end of the fiscal
year. Once an employee retires, PERS administers the retirement benefit to the former
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employee. PERS offers many retirement planning workshops throughout the year to
assist employees with retirement planning decisions. Details regarding the accrual and
disbursement of retirement benefits can be discussed directly with a PERS representative.
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