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HomeMy WebLinkAbout41-11 • ID RESOLUTION NO. 41-11 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS AMENDING THE EMPLOYEE CLASSIFICATION AND COMPENSATION PLAN WHEREAS, the Town of Los Altos Hills has received and responded to the 2009-2010 Santa Clara County Civil Grand Jury Report—Cities Must Rein In Unsustainable Employee Costs; and WHEREAS, the 2009-2010 Santa Clara County Civil Grand Jury Report recommends that cities adopt cost containment policies for employee medical care and pensions; and WHEREAS, the City Council of the Town of Los Altos Hills has discussed the Civil Grand Jury's recommendations and subsequently received a report from its Ad Hoc Committee on Employee Compensation; and WHEREAS, the City Council of the Town of Los Altos Hills now desires to amend the Employee Classification and Compensation Plan to.cap the Town's contribution to the Town's cafeteria plan for all employees effective January 1, 2012; and WHEREAS, the City Council of the Town of Los Altos Hills now desires to amend the Employee Classification and Compensation Plan to institute the 2% at 60 pension benefit formula for all newly hired employees on or after September 1, 2011; and WHEREAS, management recommends continuation of the grant funded Employee Wellness program for 2011-12; NOW THEREFORE,the City Council of the Town of Los Altos Hills does hereby approve and adopt amendments to the Employee Classification and Compensation Plan as set forth in Exhibit A attached hereto. The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 21st day of July, 2011 by the following vote: AYES: Summit, Larsen, Mordo, Radford, Waldeck. NOES: None ABSTAIN: None ABSENT: None BY: ,/ Gi4 nger /h it,l ayor ATTEST: Deborah Padovan, City Clerk Resolution No.41-11 Page 1 EXHIBIT "A" Town of Los Altos Hills Classification and Compensation Plan Classification and Compensation Plan Proposed July 21, 2011 1 Proposed July 21,2011 Resolution No.41-11 Page 2 • • Town of Los Altos Hills Classification and Compensation Plan Insert Resolution • • 2 Proposed July 21,2011 Resolution No.41-11 Page 3 • Town of Los Altos Hills Classification and Compensation Plan CLASSIFICATION AND COMPENSATION PLAN The purpose of the compensation plan is to outline the compensation package for eligible employees and their eligible dependents. Eligibility is determined by Section 7.7 of the Town's Personnel Rules and Regulations unless otherwise defined in the benefit description. 3 Proposed July 21,2011 Resolution No.41-11 Page 4 • • Town of Los Altos Hills Classification and Compensation Plan SECTION 1 AUTHORIZED CLASSIFICATIONS AND SALARIES 1.1 Monthly Salary Schedule by Permanent Employee Classification* Effective July 1,2011 ET. Annual Range Hourly Range I I ( Bottom I Top Bottom I Top . I City Manager' s Office City Manager Set by contract salary City Clerk $ 67,656 , $ 109,308 salary Public Safety Officer $ 53,532 $ 65,076 salary Administrative Services Director-Administrative Services $ 120,528 $ 162,780 salary Finance Manager $ 78,012 $ 94,824 salary Office Specialist I/II $ 42,516 $ 58,392 $20.4396 $28.0720 Planning,Building,Parks &Recreation Director-Planning&Building $ 120,528 $ 162,780 salary Senior Planner $ 78,012 $ 94,824 $37.5043 $45.5867 I Associate Planner $ 69,612 $ 84,612 .$33.4660 $40.6773 Assistant Planner $ 62,292 $ 75,720 $29.9469 $36.4024 Building Official $ 74,292 $ 90,300 $35.7159 $43.4118 Community Development Specialist $ 51,816 $ 67,656 $24.9106 $32.5258 Planning/Building Technician $ 51,816 $ 62,976 $24.9106 $30.2758 Community Services Coordinator $ 55,656 $ 67,656 $26.7567 $32.5257 Barn Manager $ 52,236 $ 63,492 salary Parks &Recreation Facility Aide $ 37,836 $ 45,984 $18.1897 $22.1068 Public Works Director-Public Works $ 120,528 , $ 162,780 salary Associate Engineer $ 75,492 $ 91,764 $36.2928 $44.1156 Assistant Engineer $ 64,968 $ 78,972 $31.2334 $37.9658 Engineering Technician $ 58,392 $ 70,980 $28.0720 $34.1237 Maintenance Superintendent $ 72,336 $ 87,924 $34.7756 $42.2695 Maintenance Worker III $ 52,236 $ 63,492 $25.1125 $30.5238 Maintenance Worker II $ 47,484 $ 57,720 $22.8280 $27.7489 I Maintenance Worker I $ 42,036 , $ 51,096 $20.2088 $24.5644 *See Section 1.2 for Meritorious Range 4 Proposed July 21,2011 Resolution No.41-11 Page 5 • S . Town of Los Altos Hills Classification and Compensation Plan 1.2 Meritorious Range At the City Manager's discretion, an employee at top salary on the Salary Range may be awarded a monthly salary of up to 5% above top salary in recognition of exemplary performance. Meritorious awards may be revoked by the City Manager, at any time and without cause, and automatically expire at the end of each fiscal year. 1.3 Temporary and Part-Time Employee Salaries Temporary and Part-Time employees are paid an hourly rate equivalent to the monthly rate for permanent employees in a like classification at a salary commensurate with the employee's experience. If there is no related permanent employee classification,the City Manager shall set a temporary rate not to exceed$25.00 per hour. 5 Proposed July 21,2011 Resolution No.41-11 Page 6 • Town of Los Altos Hills Classification and Compensation Plan SECTION 2 LEAVE Administrative Leave—See Section 6.11 Bereavement Leave—See Section 6.8 Catastrophic Leave—See Section 6.3 Compensatory Time (Comp Time)—See Section 6.6 Family and Medical Leave Act(FMLA)—See Section 6.12 Holidays—See Section 6.4 Jury Duty—See Section 6.7 Leave Without Pay—See Section 6.14 Military Leave—See Section 6.9 Pregnancy Disability Leave—See Section 6.13 Sick Leave—See Section 6.2 Vacation Leave—See Section 6.5 6 Proposed July 21,2011 Resolution No.41-11 Page 7 • • • Town of Los Altos Hills Classification and Compensation Plan SECTION 3 HEALTH AND WELFARE 3.1 Cafeteria Plan The 201lcafeteria plan provides plan participants with a flexible dollar amount equal to 110% of the average health premium, by level of coverage, offered in the Ca1PERS Public Employees Medical and Hospital Care Act (PEMHCA), Bay Area region. Effective January 1, 2012 and adjusted each January 1St thereafter, the cafeteria plan flexible dollar amount will be capped at the Kaiser premium, by level of coverage. as offered in the Ca1PERS Public Employees Medical and Hospital Care Act's (PEMHCA), Bay Area region, The flexible dollar may be used to select any of the PEMHCA medical plans available to the employee. Employees selecting a medical plan for which the cost is greater than the Town's flexible dollar amount shall pay the excess premium cost. Eligible employees with proof of insurance from another source may elect to receive an opt-out payment in-lieu-of Town paid medical. Opt-out payments are: Level of coverage Monthly opt-out payment Employee plus one $460.00 Employee plus two or more $600.00 3.2 Health Plan The Town contracts with PEMHCA for health insurance and pays the minimum monthly premium, as established by PEMHCA on an annual basis, for eligible employees, elected officials, and retirees. This benefit begins on the first day of the calendar month following the employee's hire date and terminates on the last day of the calendar month following the employee's separation date. 3.3 Dental Plan The Town contracts for dental insurance and pays the full premium for eligible employees, elected officials and their eligible dependents. This benefit begins on the first day of the calendar month following the employee's hire date and terminates on the last day of the calendar month following the employee's separation date. 3.4 Vision Plan • The Town contracts for vision insurance and pays the full premium for eligible employees, elected officials, and their eligible dependents. This benefit begins on the first day of the calendar month following the employee's hire date and terminates on the last day of the calendar month following the employee's separation date. 7 Proposed July 21,2011 Resolution No.41-11 Page 8 • • Town of Los Altos Hills Classification and Compensation Plan 3.5 Employee Wellness • Permanent full-time employees with at least one year of service to the Town are provided a $508$900 employee wellness allowance in 2010 112011-12 for programs,activities, and equipment that promote good health. Guidelines for the 2010 112011-12 program will be established by the City Manager. This benefit is made possible by a grant from the Town's Workers' Compensation insurer and is available only Y for 2010 112011-12. 3.6 Life and Accidental Death and Dismemberment Insurance The Town contracts for a term life insurance policy and pays the full premium for eligible employees. The benefit amount is equal to the employee's annual salary, with the exception of the City Manager's which is set by contract. This may be a taxable benefit to the employee. The Town also contracts for a.accidental death and dismemberment insurance policy and pays the full premium for eligible employees. The benefit amount varies based on each specific condition and is set by the policy document. 3.7 Long Term Disability Insurance d The Town contracts for a long term disability insurance policy and pays the full premium for eligible employees. Employees are insured against long-term disability through third-party insurance which provides sixty percent (60%) of an employee's monthly earnings to a maximum benefit of$5,000 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 ninety (90) days following a disabling event and continues to an end date determined by the employee's age. 8 Proposed July 21,2011 Resolution No.41-11 Page 9 • • Town of Los Altos Hills Classification and Compensation Plan 3.8 Workers' Compensation 3.8.1 General Description Through worker's compensation, employees are insured against losses due to job- related illness or injury. Under this program, medicalexpenses are paid and, while disabled, employees are eligible for weekly compensation based on their salary. 3.8.2 Eligibility Regular, full-time employees and part-time employees and temporary employees are eligible for this benefit. Retired employees are not eligible for this benefit. 3.8.3 Benefit When an employee suffers a workers' compensation injury, the employee is eligible for receipt of two-thirds (2/3) of his/her salary or the amount statutorily assigned by the State of California, 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. 3.8.4 Method of Administration Workers.compensation claims are administered for the Town by a third party administrator. All on-the-job injuries must be reported to the Finance Department immediately. When an employee makes a workers' compensation claim, the claim must be submitted to the Town on the appropriate claim form, 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. The third party administrator makes the determination as to whether a claim is eligible for payment and which medical bills are eligible for reimbursement. 9 `Proposed July 21,2011 Resolution No.41-11 Page 10 • Town of Los Altos Hills Classification and Compensation Plan 3.9 Employee Assistance Program 3.9.1 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 include counseling, crisis intervention, training and consultation. 3.9.2 Eligibility Regular, full time employees and part time employees who regularly work twenty (20) hours per week or more are eligible for this benefit. Part time employees who work less than twenty (20) hours per week and temporary and retired employees are not eligible for this benefit. 3.9.3 Benefit The Town provides an Employee Assistance Program through Magellan Behavioral Health, Inc (Magellan). The program offers assessment, counseling, 24-hour crisis intervention, child/elder care services, legal and financial resources, management consultation, supervisor training and employee workshops. 3.9.4 Method of Administration The cost of the Employee Assistance Plan is paid by the Town. Employees may confidentially use the services of Magellan without prior approval of a Town supervisor or City Manager. 3.10 Uniforms and Safety Gear Town employees who work in the field may be provided uniforms and safety gear necessary to protect the employee's well being and establish a consistent Town image. The City Manager shall determine which employee classifications are eligible for this benefit and what type of uniform or safety gear is appropriate. The Town's annual budget includes a line item for this benefit and purchases must be authorized by the employee's department head, under the general guidance of the City ' Manager. Uniforms and safety gear are replaced as deemed necessary by the department head. 10 Proposed July 21,2011 Resolution No.41-11 Page 11 • • Town of Los Altos Hills Classification and Compensation Plan SECTION 4 OTHER BENEFITS 4.1 Deferred Compensation 4.1.1 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 Town at the time that each payroll is issued. 4.1.2 Eligibility Regular, full-time employees and part-time employees who regularly work twenty (20) hours per week or more are eligible for this benefit. Part-time employees who work less than twenty (20) hours per week and temporary and retired employees are not eligible for this benefit. 4.1.3 Benefit The two companies that are approved by the Town to administer this benefit are the Hartford Insurance Group and the ICMA Retirement Trust Corporation. Deferred 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 amount of the maximum annual contribution is determined by federal and state regulations. 4.1.4 Method of Administration Deferred compensation transactions are handled as payroll deductions. 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 accounts begin(usually upon retirement). 11 Proposed July 21,2011 Resolution No.41-11 Page 12 • • Town of Los Altos Hills Classification and Compensation Plan 4.2 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. 4.3 Automobile Allowance 4.3.1 General Description The automobile allowance provides reimbursement for the maintenance and use of a management employee's personal vehicle for Town business. This benefit is in lieu of a Town provided vehicle. 4.3.2 Eligibility All management employees as defined by Section 5.2 are eligible for this benefit. 4.3.3 Benefit Management employees will receive a monthly allowance of two hundred fifty dollars and zero cents ($250.00) per calendar month as compensation for the use of their personal vehicle while conducting Town business. The City Manager's automobile allowance is set by contract. 4.3.4 Method of Administration This benefit is paid each pay period worked during the calendar year at the rate of two hundred fifty dollars and zero cents ($250.00)per calendar month. 4.4 Parks &Recreation Program Registration Fees The Town's non-resident surcharge for parks and recreation programs shall be waived for employees and their dependents. If the program reaches capacity, a non-resident employee or dependent will be required to pay the non-resident surcharge. 12 Proposed July 21,2011 Resolution No.41-11 Page 13 • • Town of Los Altos Hills Classification and Compensation Plan SECTION 5 RETIREMENT 5.1 Tier 1 -Pension 5.1.1 General Description The Town's retirement program provides employees with benefits through their retirement years in an amount which is based upon years of service, age of employee at the beginning of their retirement and the three highest years' compensation during their tenure. 5.1.2 Eligibility All regular, full-time and part-time employees who work twenty (20) hours per week or more are members of the California Public Employees Retirement System (Ca1PERS) hired prior to August 31. 2011. Temporary employees may also enroll in the Ca1PERS program, but must pay the employee's portion of the retirement contribution. 5.1.3 Benefit The Town contributes an employer share-of retirement contribution based on 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 employee's earnings for this retirement benefit, unless a temporary employee elects to participate in the PERS program. In that case, the employee would make their own contribution to the plan,. Employees of the Town eligible for this benefit do not pay into the Social Security system. The Town's contract with Ca1PERS provides service retirement benefits under the "2% at 55" formula. The formula uses a multiplier of x %, times the number of years of 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. 13 Proposed July 21,2011 Resolution No.41-11 Page 14 • 0 Town of Los Altos Hills Classification and Compensation 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 5.1.4 Method of Administration The Finance Department makes the appropriate payment to Ca1PERS with each payroll cycle. CaIPERS 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, Ca1PERS administers the retirement benefit to the former employee. Ca1PERS 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 Ca1PERS representative. 5.2 Tier 2 -Pension 5.2.1 General Description The Town's retirement program provides employees with benefits through their retirement years in an amount which is based upon years of service, age of employee at the beginning of their retirement and the three highest years' compensation during their tenure. 5.2.2 Eligibility All regular, full-time and part-time employees who work twenty (20) hours per week or more are members of the California Public Employees Retirement System (Ca1PERS) hired after August 31. 2011. 14 Proposed July 21,2011 Resolution No.41-11 Page 15 • • i Town of Los Altos Hills Classification and Compensation Plan 5.2.3 Benefit • The Town contributes an employer share of retirement contribution based on the • gross salary for each eligible employee. The employee's share is equal to 7% of their yearly gross salary and is deducted from the employee's earnings on a pre- tax basis for this retirement benefit. Employees of the Town eligible for this benefit do not pay into the Social Security system. The Town's contract with Ca1PERS provides service retirement benefits under the "2% at 60" formula. The formula uses.a multiplier of x %, times the number of years of service. to determine retirement benefits at a given age. For example. • under the 2% at 60 formula, a retiree with 10 years of service retiring at age 60 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 60 plan. 2%(1 60 Retirement Percent Age Per Year X_ 50 1.092 51 1.156 52 1.224 53 1.296 54 1.376 55 1.460 56 1.552 57 1.650 58 1.758 59 1.874 60 2.000 61 2.134 62 2.272 63 and over 2.418 5.2.4 Method of Administration The Finance Department makes the appropriate payment to CaIPERS with each payroll cycle. Ca1PERS 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, Ca1PERS administers the retirement benefit to the former employee. Ca1PERS 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 Ca1PERS representative. 15 Proposed July 21,2011 Resolution No.41-11 Page 16 • • Town of Los Altos Hills Classification and Compensation Plan 5.2-3 Retiree Medical Reimbursement 5.23.1 General Description The Town's retiree medical reimbursement program provides employees with benefits through their retirement years in an amount which is based upon the amount provided to active employees through the cafeteria plan. 5.23.2 Eligibility Employees of the Town who were eligible for medical benefits as of October 11, 2007 are eligible for this benefit upon retirement from the Town. Additionally, retirees of the Town as of October 11, 2007 are eligible for this benefit. 5.23.3 Benefit The Town shall reimburse retirees the amount deducted from their monthly pension provided by Ca1PERS up to the maximum amount provided in flex dollars to active employees, based on category of coverage. 5.23.4 Method of Administration The Town will pay the retiree on the first business day following January 1 and July 1 of each year an estimated six month premium deduction from the retiree's pension. If the estimate is less than the actual deduction, the Town will reimburse the retiree the difference upon receipt of written request for reimbursement from the retiree. If the estimate is more than the actual deduction, the Town will deduct the overpayment from the next scheduled reimbursement. All correspondence from the retiree to the Town shall be addressed. City Manager Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 16 Proposed July 21,2011 Resolution No.41-11 Page 17