Loading...
HomeMy WebLinkAbout2012-11-13 - AGENDA REPORTS - HEALTH BENEFITS (2)Agenda Item: 15 CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval Item to be presented by: DATE: November 13, 2012 Joe Montes SUBJECT: HEALTH BENEFITS FOR CITY COUNCIL AND UNREPRESENTED EMPLOYEES DEPARTMENT: City Attorney's Office RECOMMENDED ACTION Adopt a resolution to clarify the intent of City Council with regard to the implementation of the two-tier cash in lieu benefits for unrepresented employees and Councilmembers based upon the Council's direction at the November 23, 2010 closed session. This resolution corrects and amends Resolution #10-92, which was adopted by the City Council on December 14, 2010. BACKGROUND The two-tier cash in lieu City benefit for employees, including Councilmembers, was the subject of a report at the October 23, 2012, regular City Council meeting. In brief, the report explained that pursuant to direction provided by the City Council at a closed session on November 23, 2010, the City Manager met with unrepresented employees, negotiated with Service Employees International Union (SEN), Local 721, for represented employees, and then implemented a reduced cash in lieu benefit for all employees (including Councilmembers) hired on or after January 1, 2011, and employees re -hired by the City after a break in service. The two-tier cash in lieu benefit has been consistently implemented since January 1, 2011. The October 23, 2012, report explained that City Councilmembers have historically been treated as employees entitled to the same benefits as other City employees under long standing City practice. As a result Councilmember Boydston received the lower cash in lieu benefit since he was the only Councilmember elected to the City Council after a break in service and after January 1, 2011. (He was appointed to fill out a Council term in December 2006, left the Council in April 2008, and was elected to the Council in April 2012). The October 23, 2012, report was agendized because Councilmember Boydston questioned the I1Yy��yy " 0® legality of the City's providing him with the second tier, reduced cash in lieu benefit instead of the higher amount available to Councilmembers who have been re-elected continuously without a break in service and whose initial term of office began prior to January 1, 2011. The State Fair Political Practices Commission advised Councilmember Boydston he had to recuse himself concerning the item due to a conflict, but he could address the City during public comment. At the end of the October 23, 2012, City Council meeting, the Council (of four remaining members) reaffirmed its intent to establish the two-tier benefit in the manner implemented by the staff since January 1, 2011, including that it applied to Councilmembers as well as employees. During the course of the October 23, 2012, City Council meeting, some members of the public expressed concern that the City Council in 2010 did not formally approve the cash in lieu two-tier benefit for unrepresented employees and Councilmembers at an open Council meeting as required by Government Code section 54957.6. A review of the resolution adopted by the Council on December 14, 2010, confirms that while other benefits were described in the resolution, the reduction in the cash in lieu benefit was not. Three of these benefit changes were outlined in Resolution #10-92, which was part of the Fiscal Year 2010-2011 mid -year budget; however, the change to the cash in lieu benefit was not included in this resolution since the reduction was for new employees or re -hired employees after a break in service and did not require an increase in budget. This omission was not a result of any action of the City Council, rather, City staff was not aware of the requirement to include all benefit changes in the December 14, 2010, resolution as the change to the cash in lieu benefit marked the first reduction to employee benefits. In the future all such changes to benefits will be included in a resolution taken to City Council for approval in a public meeting, Under Government Code section 54957.6, a provision of the Brown Act, the City Council may decide compensation and benefits relating to represented employees during a closed session, but must approve at an open session compensation and benefits related to unrepresented employees. While the Brown Act is technically suspended under the current State Budget Act, the City believes in the importance of the Brown Act, takes compliance seriously, and has continued to observe it. As a result, the City has reviewed the issues brought up at the October 23, 2012, Council meeting related to the Brown Act and agrees it should have included all benefit changes in the resolution and approved by the City Council during a public City Council meeting regardless of whether those changes represented an increase or decrease and regardless of whether they had a budget impact. For these reasons, an amending resolution is now being brought to the City Council. Under Government Code section 54960. 1, any individual claiming that action was taken in violation of the Brown Act and is null and void must present a complaint in writing to the legislative body within 90 days of the action if it was taken at a closed session. Notwithstanding that the changes in benefits were shared with the unrepresented employees on December 15, 2010, and implemented as of January 1, 2011, no such complaint was made to the City within 90 days of the November 23, 2010, closed session and thus there is no basis to claim that the action is null and void. Notwithstanding the foregoing, to demonstrate the City's commitment to both the spirit and the letter of the law, whether suspended or not and as a housekeeping matter, this report recommends M that the Council adopt a resolution amending the December 14, 2010, resolution, to ratify the implementation of the two-tier benefits for the unrepresented employees effective January 1, 2011, to reconfirm the City's longstanding practice that Councilmembers are entitled to the same benefits as other City employees on the same terms except as otherwise restricted by State law, and to amend Resolution #10-92 to add the two-tier cash in lieu benefit to the list of enumerated benefit changes, and reiterate the City's commitment to approve such future benefit changes via resolution in open session. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT None by this action. ATTACHMENTS Resolution - Clarifying the City Council's Intent Resolution #10-92 Providing Compensation of the Employees of the City and Amending the Classification Plan RESOLUTION 12- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, CLARIFYING THE CITY COUNCIL'S INTENT IN ADOPTING RESOLUTION #10-92 IN DECEMBER 2010 CONCERNING EMPLOYEE BENEFITS AND AMENDING SUCH RESOLUTION TO RATIFY CITY STAFF'S ACTIONS IN IMPLEMENTING THE TWO-TIER CASH IN LIEU BENEFIT AS IT RELATES TO UNREPRESENTED EMPLOYEES (INCLUDING COUNCILMEMBERS) OF THE CITY WHEREAS, as a longstanding matter of City practice, Councilmembers have received the same benefits as employees on the same terms and conditions, a practice that the City Council recently re -confirmed at a City Council meeting on October 23, 2012; and WHEREAS, such benefits have included a cash in lieu benefit when employees do not elect to enroll in certain health and welfare benefits; and WHEREAS, in the fall of 2010 City Management staff met with a workgroup of unrepresented employees to review and evaluate the benefit package offered by the City to its employees, including the cash in lieu benefit; and WHEREAS, thereafter at a closed session on November 23, 2010, the City Council provided direction to the staff concerning implementation of a two-tier benefits package which reduced certain benefits for newly hired employees or employees re-employed after a break in service; and WHEREAS, City staff thereafter presented a resolution to the City Council for adoption at the December 14, 2010, Council meeting as a budget -related resolution, and the City Council adopted it as Resolution #10-92, which included direction to complete negotiations with represented employees and enter into an agreement with same; and WHEREAS, the reduction in the cash in lieu benefit was not included in budget resolution #10-92 because it did not have any negative fiscal impact and because City staff was unaware of the need to have Council approve this benefit on the open session agenda with respect to unrepresented employees because it was the first occasion that City employee benefits had been decreased; and WHEREAS, the City Council was unaware of this inadvertent omission; and WHEREAS, City staff negotiated the benefit with represented employees and executed a side letter reflecting such changes; and WHEREAS, City staff met with unrepresented employees to implement such changes; WHEREAS, the reduction in this cash in lieu benefit has been consistently implemented for newly hired employees and former employees re -hired after a break in service since January v 1, 2011; and WHEREAS, no person asserted within 90 days of the City Council's action on the November 23, 2010, closed session agenda or the December 14, 2010, open session agenda that the City staffs action in implementing the benefit reduction in January 1, 2011, was null and void and thus there is no basis for making such a claim now; and WHEREAS, notwithstanding the fact that the time to challenge any such error has passed and the mandate to follow the Brown Act was suspended in this year's budget bill, the City has continued to follow all provisions of the Brown Act; and WHEREAS, the City Council wishes to reiterate its commitment to approving in open session all changes to unrepresented employee salary and benefits, even after the Council has given direction to its negotiators in this regard and has been assured by the City staff that all such actions relating to unrepresented employees will routinely be presented to the City Council at an open session for approval; and WHEREAS, the City Council wishes to avoid any misunderstanding as to whether the City staffs implementation of the two-tier cash in lieu benefit is authorized by the Council, and adopts this resolution to ratify those actions and to create a formal record of City Council approval; NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The Council hereby ratifies the City staff actions to implement a two-tier cash in lieu benefit program for City employees effective January 1, 2011, as follows: a. Freeze the cash in lieu (taxable cash) amount at $1,016.58 per month for current employees hired on or before December 31, 2010. b. Reduce the cash in lieu benefit for employees hired or re -hired after a break in service to a maximum of one-half of the lowest cost employee -only health plan, the amount which is $213.79 per month for 2011 and $214.62 for 2012. Cash in lieu is available to employees who do not enroll in city health insurance. SECTION 2. The City Council confirms and ratifies the City's longstanding practice of providing employee benefits to City Councilmembers on the same terms and conditions as other unrepresented employees, except to the extent City Council benefits are further restricted by state law as set forth in the October 23, 2012, Council report; and SECTION 3. Notwithstanding that the Brown Act has been suspended, the City Council reiterates its commitment to approving in open session all changes to unrepresented employee salary and benefits, and directs City staff to present all such actions relating to unrepresented employees to the City Council at an open session for approval. 2 SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 13th day of November, 2012. MAYOR ATTEST: INTERIM CITY CLERK DATE: I STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA) I, Arming Chaparyan, Interim City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of 2012, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: INTERIM CITY CLERK r RESOLUTION NO. 10-92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, PROVIDING FOR COMPENSATION OF THE EMPLOYEES OF THE CITY AND AMENDING THE POSITION CLASSIFICATION PLAN WHEREAS, Section 37206 of the Government Code requires the City Council to, prescribe the time and method of paying salaries, wages, and benefits for employees of the City; and WHEREAS, the City Council has authorized and directed, under provisions of the Municipal Code of the City of Santa Clarita, Section 2.080.060, the City Manager to prepare a proposed salary plan for all employees of the City, and it has authorized and directed under the provision of Ordinance 88-52, Section 3.d., the City Manager to prepare and revise a position classification plan. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The position classification plan is hereby amended to include the following changes effective January 1, 2011: Classification Graduate Management Intem Grade 32 Human Resources Analyst Grade 45 Management Analyst Grade 45 Pool Technician Grade 23 Assistant Planner II Grade 42 Change Administrative Clerk Grade 22 Communications Specialist Grade 39 Community Preservation Administrator (Title Change Only) Grade 45 Aquatics Specialist Grade 27 Administrative Analyst (Labor Compliance) Grade 39 A SECTION 2. The employee benefit program is hereby amended to include the following change for unrepresented employees, effective the first pay day in January 2011: oft In lieu of increasing cafeteria dollars for all regular employees, create Supplemental Benefit Dollars of up to $154.76 per month, which may be used only by those employees whose I cost of health, dental, and/or vision insurance exceeds the 2010 cafeteria dollars. SECTION 3. The benefit program is hereby amended to include the following change for unrepresented employees effective on January 1, 2012; Freeze retiree health care contributions at the 2010 rate for current retirees and employees hired prior to January 1, 2008, and who retire prior to January 1, 2012. Amend the retiree health care contribution for regular employees hired prior to January 1, 2008, but who retire on or after January 1, 2012, to the employee plus one dependent rate for the lowest cost health insurance plan offered by California Public Employees' Retirement System (PERS), and implement a vesting schedule so that the retiree health benefit provided is pro -rated based on years of 'service as a regular employee following this schedule: • 56% upon completing 5 years of service with the City of Santa Clarita • 75% upon completing 10 years of service with the City of Santa Clarita a 100% upon completing 15 years of service with the City of Santa Clarita SECTION 4. The City intends to implement a second-tier retirement formula through the California Public Employees' Retirement System for future hires. This item will be submitted to Council for consideration at a future date. , J SECTION 5. Pending the completion of negotiations between the City and Service Employees' International Union (SEIU) Local 721 and reaching substantially equal agreements on the items listed in Sections 2, 3, and 4, implement these changes for represented employees using the agreed upon effective dates. If substantially equal agreement is not reached a separate resolution will be presented to Council. SECTION 6. All prior resolutions and parts of resolutions in .conflict with this resolution are hereby rescinded. SECTION 7. The City Clerk shall certify to the adoption of this Resolution. c; PASSED, APPROVED AND ADOPTED this 14th day of December, 2010. r MAYOR ", u ATTEST: L DATE:_11_11= STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) 1, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 14th day of December, 2010, by the following vote: AYES: COUNCILMEMBERS: Weste, Kellar, Ender, McLean NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Ferry 3 /O