HomeMy WebLinkAboutCity Council Special Study Session Agenda Item No.2 CITY OF ,�
LAKE 6 LSINOR
E
DREAM EXTREME.,
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: THOMAS P. EVANS -.<t
INTERIM CITY MANAGER Q�, (/
DATE: JUINE 7, 2012 ��'
SUBJECT: REVIEW OF BENEFIT LEAVE ACCRUALS & PAYOUTS FOR
EXECUTIVE, MANAGEMENT AND OTHER NON -UNION EMPLOYEES.
Recommendation
It is recommended that the City Council adopt the following policy regarding benefit
leave for Executive, Management and Non -Union employees:
1. Adjust the maximum vacation accrual for Directors to agree with the 2011 -2013
Union MOU.
2. Sick leave policy for unused sick leave remains as currently stated.
3. Administrative leave policy remain as currently stated, with the exception that
unused administrative leave be forfeited at the end of the fiscal year.
4. The effective date of the recommendations be July 1, 2012, the beginning of the
next fiscal year.
Background
Council Member Melissa Melendez at the April 4, 2012 2011 -12 Mid -Year Budget
Review requested having a review of specific benefits (vacation, sick leave and
administrative leave) for Executive, Management and other non -union employees. Also
requested was to have Resolution No. 88 -1 ( "Compensation and Supplementary
Benefits for Executive Employees ") brought back to City Council for re- consideration.
Also requested at the April 24, 2012 City Council meeting related to these positions was
the following: (1) the current benefit leave accrual balances and (2) payouts made the
past five years for those who separated from City services. This information was
requested to be reported at the FY 2012 -13 budget study session.
AGENDA ITEM NO. 2
Page 1 of 19
Review of Benefits for Non -Union Employees
June 7, 2012
Page 2
Discussion
All full -time City of Lake Elsinore employees, except executives, management and other
non -union employees are represented by the United Public Employees of California,
LIUNA Local 777 ( "Union "). An agreement between the City Council and the employees
represented by the Union has been documented in a Memorandum of Understanding
(MOU) for the period of July 1, 2011 to June 30, 2013. Non -union employees are
covered by various resolutions, memorandums or side agreements. The City Manager
and City Clerk are non -union positions. However, they are chosen by the City Council
and the compensation and benefits of their positions are detailed in their employment
contract.
The positions which are considered "non- union" for this discussion are as follows:
Executives (Directors)
City Manager (Contract)
City Clerk (Contract)
Director of Administrative Services
Director of Community Development (Acting)
Director of Lake, Parks and Recreation
Director of Public Works
Management
Building and Safety Manager (Vacant)
Finance Manager (Vacant)
Lake, Parks and Recreation Manager (Vacant)
Planning Manager (Vacant)
Public Works Manager (Vacant)
Other Non -Union Positions
Human Resources Administrator
Public Works Superintendent
An accrual is recorded annually in the City's Comprehensive Annual Financial Report
(CAFR) at fiscal year -end for 100% of the vacation accrual and 50% of the sick accrual
for all employees as "Compensated absences" in the Tong -term liabilities classification.
The amount at June 30, 2011 was $608,894.
The vacation, sick leave and administrative leave benefits for the non -union positions
are as follows:
Page 2 of 19
Review of Benefits for Non -Union Employees
June 7, 2012
Page 3
Vacation
Directors
Resolution No. 88 -1, states that for Executive employees (Directors) "there shall be no
maximum vacation accrual." This resolution was adopted in January 1988. The current
maximum vacation accrual for Union employees is three years, which ranges between
288 hours to 528 hours based on years of service. The attached memorandum dated
August 20, 2009 discusses the maximum vacation accrual and the vacation days
earned based on years of service for Union employees.
Managers/ Other Non -Union Positions
Managers and all other non -union positions fall under the same maximum vacation
accrual as Union Employees.
All unused vacation accrual is paid out upon separation from the City for both non -union
and union employees.
Sick Leave
Directors, Managers & Other Non -Union Positions
Directors, managers and all other non -union positions have the same sick leave
benefits as union employees. Employees who end their employment with the City for
any reason shall be compensated in cash for unused sick leave at final rate of pay
based on the following:
0 to 2 years None
2to10years 50%
11 to 17 years 75%
17 or more years 100%
Administrative Leave
Directors
Directors receive 90 hours of administrative leave per year.
Managers/ Other Non -Union Positions
Managers and all other non -union positions receive 63 hours of administrative leave per
year.
Administrative leave is to be used before the end of each fiscal year. There is no
carryover accrual for unused leave time. However, directors, managers and non -union
employees are allowed to cash out any unused administrative leave before fiscal year
end. Administrative leave is normally provided to exempt employees in lieu of overtime
pay.
Page 3 of 19
Review of Benefits for Non -Union Employees
June 7, 2012
Page 4
Comparison with Nearby Cities
Staff contacted the cities of Perris, Murrieta and Temecula to compare their vacation,
sick leave and administrative leave policies. The results were as follows:
Vacation/ Annual Leave:
The cities of Murrieta and Temecula combine their vacation and sick leave and call it
annual leave. The city of Perris has separate vacation leave. All the cities had a
maximum accrual for their vacation or annual leave time. The maximum leave accrual
for all executive and management positions was between 336 hours and 644 hours
based on years of service. All unused vacation or annual leave is paid out upon
separation from the city
Sick Leave:
The policy for sick leave for the city of Perris follows the same pattern as the city of
Lake Elsinore, with cash payouts at separation based upon years of service.
Administrative Leave
All the cities listed above offer administrative leave to their executive and management
positions. The amount of leave time varied between 40 hours and 120 hours annually.
One city allows the unused administrative leave to be cashed out at the end of the fiscal
year. Another city allows the unused leave to be carried over with a maximum
administrative leave accrual between 340 and 420, based on position. In a third city, the
unused leave is forfeited at the end of the fiscal year.
Current Non -Union Position Benefit Leave Accruals & Payouts over Past 5 Years
The information related to the current non -union benefit leave accruals as well as the
payouts to those in non -union positions who separated from service with the City is
included as an attachment to this report.
Fiscal Impact
There is no direct fiscal impact from the recommendations in this report.
Prepared by: James Riley -... 4
Director of As, istrative Services
Approved by: Thomas P. Evans
Interim City Manager
Page 4 of 19
Review of Benefits for Non -Union Employees
June 7, 2012
Page 5
Attachments:
Resolution No. 88 -1 (Compensation and Supplementary Benefits for Executive
Employees) (January 12, 1988)
Memorandum re: Vacation Accrual Maximum Change (August 20, 2009)
Section 2 (Vacation) and Section 3 (Sick Leave) of Personnel Policy and
Procedures
Memorandum re: Administrative Leave (October 4, 1994)
Memorandum re: Administrative Leave Hours Correction (May 31, 2000)
Current Benefit Leave & Payouts Past 5 Years for Non -Union Employees
Page 5of19
Page 6 of 19
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RESOLUTION NO. 88 -
A RESOLUTION OF
THE'CITY COUNCIL OF THE
CITY OF LAKE ELSINORE, CALIFORNIA,.
SETTING .FORTH COMPENSATION AND' SUPPLEMENTARY BENEFITS '
FOR EXECUTIVE EMPLOYEES . •
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WHEREAS, RESOLUTION NO. 86 -47 set forth job titles, salary . ranges,
a salary schedule and supplementary benefits for Executive Employees of
the City of Lake Elsinore for Fiscal Year 1986 -7987; and
WHEREAS, City Council now wishes to amend said provisions in order
to provide for better compatibility with recent adjustments to such provisions
for Professional /Administrative Employees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lake
Elsinore does hereby find, declare and determine as follows:
1. That Resolution No. 86 -47 is hereby repealed.
January 1,
• 2. That the effective date of this Resolution shall be NKXN}pitXXXX
1988
X X that the provisions set forth herein shall remain in
effect until amended by actions of the City Council.
3. That the executive job titles subject to the provisions of this
Resolution are those job titles set forth in Exhibit `A' attached
hereto.
4. That the salary ranges for said job titles are those ranges also
set forth in said Exhibit `A'.
5. That the salary schedule for said salary ranges is -that schedule
set forth in Exhibit `B' attached hereto.
6. That said ranges shall be adjusted on January 1,1988, in an amount
equal to the across the board salary adjustment to be provided to -
Professional /Administrative Employees.
7. That executive positions shall be "exempt" from the provisions of
the Fair Labor Standards Act (FLSA) and, therefore, shall not be •
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eligible for overtime pay.
8. That the benefits package for the positions subject to this reso-
lution shall be those benefits set forth in Exhibit `C' attached
hereto.
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9. That effective January 1, 1988, the position of Assistant to the
City Manager shall be added to Exhibit "A" at Range 569 and that
said position shall be removed from the Professional /Administrative
~ Group and Resolution No. 87 pertaining thereto shall be amended
accordingly.
PASSED, APPROVED AND ADOPTED this 12th day of January , 1988,
on the following Roll Call vote:
AYES: COUNCILMEMBERS: DOMINGUEZ, MATSON., VERMILLION, WINKLER,
STRIGOTTE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTENTIONS: COUNCILMEMBERS: NONE
{ CITY OF LAKE ELSINORE
TRIGOT ° , MAYOR
ATTEST:
' + I Y, i KASAD, CITY LERK
CITY OF LA ELSINORE
APPROVED AS TO 'ORM AND LEGALITY: .. •
JPN R. ARPER, C. +TTO•
CITY OF LAKE ELSI +'
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A101
Page 8 of 19
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EXHIBIT g A"
EXECUTIVE EMPLOYEES
TITLE RANGE
Assistant City Manager 590
Public Services Director 585
Community Services Director 580
Administrative Services Director 570
Assistant to the City Manager 569.
(„)
Page 9 of 19
EXHIBIT 'B'
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( SALARY SCHEDULE
f..
In the following salary schedule each range is identified by a three -digit
number. The first two digits are listed in the first vertical column on'the
. left and the third digit is listed horizontally across the top of the matrix
and identifies the appropriate column. This three -digit range number locates
"A" step of the range. Steps B, C, D and E, are found in that column directly
below "A" step.
EXAMPLE: "A" step of Range 564 is found to be $3260 by
• moving down the left column to the number 56 : (the first two
digits of the range number), then horizontally to Column 4
• (the third digit of the range number). Thus Salary Range
564 is 3860 3423 - 3594 = 3774 - 3962.
0 1 2 3 4 5 6 7 8 9
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54- 2898 2912 2927 2942 2957 2972 2986 3001 3016 3031
. 55 3043 3058 3074 3089 3105 3120 3136 3151. 3167 3182
• 56 3195 3211 3227' 3244 3260 3276 3292 3309 3325 3341
' 57 3354 3372 3389 3406 3423 3440 3457 3474 3491 3508
58 3522 3540 3558 3576 3594 3.612 3630 3648 3666 3684 C.
59 3698 3717 3736- 3755 3774 3793 3811 3830 3849 3868
. 60 3883 3.903 3923 3943 3962. 3982 4002 4022 4042 4061 .
. 61 4077 4098 4119 4140 4161 • 4181 4202 4223 4244 4265
62 4281 4303 4325 4347 4369 4390 4412 4434 4456 4478
63 • 4495 4518 - 4541 4564 4587 4610 4633 4656 4679 4702
64 4720 4746 - 4768 4792 4816 4840. 4864 4889 4913 4937
65 4956 4981 5007 5032 .5057 5082 5108 5133 5158 5184
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EXHIBIT "C"
BENEFITS
1. -General .
• The benefits package provided.to.Executive.Employees sbal_1.-be.those_
benefits provided to the Professional/Administrative Employees of the
City except as amended or revised herein.
II. Supplementary Benefits
A. Leave
1. Vacation - There shall be no maximum vacation accrual.
2. Administrative Leave - Executive positions shall be
entitled to seven (7) days per year Administrative Leave.
B. Insurance
1. Life - Life Insurance coverage shall be in the amount of
Seventy. Thousand Dollars ($70,000).
2. Health /Wellness - The Health /Wellness benefit shall be
One Hundred Dollars ($100) per month.
(:° 3. Coverage - All insurance premiums for the employee and
his /her dependents shall be fully paid.
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
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". I, Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore,
DO HEREBY CERTIFY that the foregoing Resolution duly adopted by the
City Council of the City of Lake Elsinore at a regular meeting of said
Council on the 12th day of January, 1988, and that it was so adopted by
the following vote:
AYES: COUNCILMEMB RS: DOMINGUEZ, MATSON, VERMILLION,
WINKLER, STRIGOTTE
NOES: COUNCILMEMBERS NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
VI,�. . S 'D, I CLERK
CITY OF Al ELSINORE
i
'. (SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, Vicki Lynne Kasad, City Clerk of the City of Lake Elsinore,
DO HEREBY CERTIFY that the above and foregoing is a full, true and
Correct copy of Resolution No. 88 -1, of said Council, and that
the same has not been amended or repealed.
DATED: January 13, 1988
t ? KAS D, CITY CLERK
1' CITY OF A v ELSINORE
(SEAL)
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Page 12 of 19
c ry art`,Akt_...
LADE aLSINORL
DREAM EXTREME
MEMORANDUM
TO: Full Time Employees
FROM: Bob Brady
SUBJECT: Vacation Accrual Maximum Change
DATE: August 20, 2009
Due to recent changes, we have found it necessary to adjust our Vacation accruals from
a 2 year maximum to a 3 year maximum. This will ease the financial burden incurred on
the City for Vacation Buy -Outs when an employee has reached their maximum accrual.
This outlines the adjusted Vacation Accrual:
VACATION MAXIMUM BALANCE RECAP MAX
( *Based on an 8 hour day) BALANCES
2 YR 3YR
CODE DESCRIPTION DAYS YR ACCRUAL CURRENT NEW
AMT* EARNED MAX MAX
VA AT: 0 - 5 YRS 12 96 : 3.69 192 288
VB AT: 6 & 7YRS 13 104 4.00 208 312
VC AT: 8 & 9 YRS 14 112 4.31 224 336
VD AT: 10 YRS 15 120. 4.62 240 360
VE AT:,11 YRS 16 128 4.92 256 384
VF AT: 12 YRS 17 136 5.23 272 408
VG AT: 13 YRS 18 144 5.54 288 432
VH AT: 14 YRS 19 152 5.85 304 456
VI AT: 15 YRS 20 160 6.15 320 480
V.1 AT: 16 YRS 21 168 • 6.46 336 504
VK AT: 17 - 99 22 176 6.77 352 528
In addition, please keep in mind any Emergency Vacation Buy -Outs must have an
attached memo outlining a significant financial hardship and must be approved by your
Department Head in order to account for the deduction in their Department budget.
Thanks for your continued cooperation in this matter.
Page 13 of 19
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preceding and following a holiday in order to receive holiday pay.
SECTION 2. Vacations
The purpose of annual vacation leave is to enable each eligible employee
annually to return to their work mentally and physically refreshed. Each incumbent of a full -
time position shall accrue vacation leave with pay on the following basis:
A. Accrual Rate: Except as provided in Paragraph F, the following shall be
the annual accrual rate for full -time employees with one (1) through nine
(9) years of service.
Years of Service Working Days of Accrual Per Year
Employment date thru 5 12
6 thru 7 13
8 -thru 9 14
Employees with ten (10) or more years of service shall accrue one (1)
more working day of vacation for each additional year of employment
up to a maximum twenty -two (22) days per year.
B. Pay Period: A complete bi-weeldy pay period for which benefits herein
shall accrue is defined as a bi- weekly pay period in which the employee
has been in pay status for more than half of the working hours in that pay
period.
C. Full -Time: Full-time employment, for purposes of this Section, shall be
construed as the forty (40) hour week, regardless of the number of hours
actually worked in a week.
D. Scheduling: The arranging of vacation schedules shall be the
responsibility of the Department Head, primarily with particular regard
for the needs of the City and, secondly, insofar as possible, with the
wishes of the employee.
E. Unused Accrual: An incumbent who separates from the service of the
City shall receive payment for unused vacation leave to which he would
otherwise be entitled as of the date of separation.
F. Maximum Accrual: Vacation leave may be accumulated to no more than
two (2) year's accumulation. The vacation accrual rate for all employees
who have reached the maximum accrual amount allowed, shall be zero
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Page 14 of 19
days per year.
G. In -Lieu Compensation: It is the policy of the City to encourage employee
use of vacation time on a periodic basis to allow the employee a time of •
rest and recreation in order that he /she may return to the work place
physically and mentally refreshed. Compensation in lieu of vacation
shall not be granted except in those cases where an employee has earned
the maximum accrual and is prevented from taking vacation to reduce
the accrual because, in the opinion of the City Manager, the use of
vacation time by the employee at that time would make it difficult for
the City to provide essential services.
SECTION 3. Sick Leave
A. Accrual: Sick leave shall be accrued at the rate of one (1) day per month
for all full -time employees.
B. Use Allowed: Accrued sick leave is a conditional benefit and may only
be used in the event of the occurrence of one of the following:
• a bonafide illness or disability of the employee;
• a bonafide illness or disability of a member of the employee's
immediate family as defined herein which requires his/her
attention;
• being subject to quarantine or being exposed to a contagious
disease which may endanger the health of other employees;
• _ to attend an appointment for a medical, dental or optical
examination; or,
. • a comparable incident as so determined by the employee's
Department Head.
C. Abuse: The use of sick leave in a manner inconsistent with the above
parameters is not permitted. Misuse of sick leave including but not
limited to patterned or excessive use of sick leave is cause for
disciplinary action.
D. Extended Use: Evidence may be required in the form of the City
physician's certificate, or any other individual licensed to practice
medicine in the State of California, in determining the adequacy of the
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Page 15 -of 19
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reasons for any of the employee's absences during which sick leave time
is requested. Evidence will be required for any absence of a duration of
three (3) or more consecutive working days during which sick leave time
• is requested, unless waived by the Department Head.
At its discretion, City shall have the right to require an employee to
undergo, at City cost, a medical examination and tests related to an
employee's sick leave utilization and medical fitness for duty, as it
relates to the use of sick leave.
E. Release: An employee absent for a period of two consecutive work days
per month (Friday and the following Monday are considered to be
consecutive work days) clue to an illness or injury, may be required to
bring a release from the employee's physician stating the employee is
now capable of returning to active non - limited work. Requirement of
such release shall be at the discretion of the City.
F. Partial Day: Whenever any portion of a work day is taken as sick leave,
the amount of sick leave used shall be equal to the actual time taken off.
G. Incentive: In order to reduce lost time, the City provides this sick leave
incentive program to those employees who demonstrate • a good
attendance record. Each classified employee eligible for sick leave
accrual shall be credited an additional four and one half (4.5) hours
vacation leave for each quarter year (the maximum annual sick leave
incentive being eighteen (18) hours if sick leave was not used. Said
vacation leave credit, if and when earned, shall not affect sick leave.
H. Buy Back: City employees who end their employment with the City of
Lake Elsinore for any reason (i.e. layoff, voluntary quit, retire, death),
shall be compensated in cash for unused sick leave at filial rate of pay
based on the following:
0 to 2 yes None
2 to 10 years 50%
i
44,17 years 75%
17 or more years 1 00%
There shall be no maximum amount of sick leave eligible for cash
compensation subject to the foregoing schedule.
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All current employees as of the adoption date of these rules shall be
eligible for this benefit for the term of their employment,
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Page 16 of 19
CITY OF LAKE ELSINORE
MEMORANDUM
as
TO: :ob Bo.n Services Director
FROM: Ron M.lendyk, City Manager
DATE: • •.er 4, 1994
SUBJECT: Administrative Leave
Effective July 1, 1994, administrative leave will be calibrated to
the following; Executive Management will acquire ten (10) days,
Mid- Management will be receiving seven. (7) days. As in the past,
administrative days will not be carried over into the next fiscal
year. However, management will be allowed to buy back any unused
administrative leave, after the authorization of this office. Buy
backs will only be allowed just prior to the end of the fiscal
year.
Should you have any questions regarding this change, please feel
free to contact me.
RM: cs
cc: Assistant City Manager
Distribution
Payroll Clerk
Personnel Assistant
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C:\U P6 .0 \SASSOH£\MOLENDYK\HR94026.MEM
Page 17 of 19
CITY OF LAKE ELSINORE
MEMORANDUM
TO: Bob Boone, Administrative Services Director
FROM: Vicki Kasad, City Clerk/Human Resources
DATE: May 31, 2000
SUBJECT: Administrative Leave Hours Correction
As you are aware, we recently discovered that when we switched over to the
9/80 program, the Administrative Leave Hours were not corrected to reflect
the 9 hour days (vs. 8 hour days). The Benefit as granted is for 10 days
administrative leave for Department Directors and 7 days administrative
leave for Department Managers. The City went to the 9/80 program on July
1, 1996 and Administrative Hours should be corrected from that point
forward.
After hours have been corrected each employee should be provided with a
correction sheet.
cc: ; .::
City Manager
b 4 Z - /4 -[f beg. t - 90
A tc4 etu.c. - �3
Page 18 of 19
I 1 1 CITY OF LAKE ELSINORE _- - I
NON -UNION BENEFIT LEAVE - CURRENT & PAYOUTS OVER PAST 5 YEARS
JUNE 7 2012
CURRENT BENEFIT LEAVE TIME ACCRUALS FOR EXECUTIVE,
MANAGEMENT & OTHER NON -UNION POSITIONS }
Leave Time Available as of May 24, 2012
Time with Vacation Sick Administrative
Postions City (Yrs) Hours Accrual Hours Accrual Hours Accr
Total Directors & Managers 1,161.73 $ 74,002 1,926.80 $ 123,872 1 60.00 $ 3,201
Positions
City Clerk 1.5
Director of Admin Services 6
Director of Public Works 8
Director of Lake Parks & Rec. 18
Acting Director of Community Dev. 1
Total Other Non Union Positions 735.85 $ 36,532 1,322.38 $ 65,263 - -
Positions
Human Resource Administrator 21
Public Works Superintendent 6
PAYOUTS TO NON -UNION POSITIONS
Time w h FY 2007- FY 2008- FY 2009- FY 2010- FY 2011 -
City (Yrs) 2008: 2009: 2010: 2011: 2012:
Total Amount $ - $ 48,934 $ 52,422 $ 102,163 $ 313,444
Positions:
Director of Community Dev. 2 Laid Off
Director of Admin Services 5 Resigned
City Clerk 1 Resigned
Director of Parks & Recreation 2 Golden Handshake - -1
Director of Community Dev. 4 Resigned
City Clerk 9 mos. Resigned
- — fi
Information & Communication Mgr 10 Laid Off
Public Works Manager 24 Retired
City Manager 14 Terminated
Bldg & Safety Manager 24 - - I Retired
Page 19 of 19
2012 -13 Non -Union Leave Payout Report 6- 7- 12,6/1/2012,jrr Attachment