HomeMy WebLinkAbout11 - PH-1 - Civic Openness in Negotiations (COIN) - 4/18/2017CITY COUNCIL AGENDA REPORT
MEETING DATE: April 18, 2017
ITEM NUMBER: PH -1
SUBJECT: CIVIC OPENNESS IN NEGOTIATIONS (COIN) ORDINANCE SECOND PUBLIC
HEARING OF THE ADOPTION OF THE SALARY & BENEFIT RESOLUTION BETWEEN
THE CITY OF COSTA MESA AND THE COSTA MESA DIVISION MANAGERS
ASSOCIATION (CMDMA), SALARY & BENEFIT RESOLUTION FOR UNREPRESENTED
EXECUTIVES, AND SALARY & BENEFIT RESOLUTION FOR CONFIDENTIAL
EXECUTIVE EMPLOYEES AND ADOPT THE EMPLOYER PAID MEMBER
CONTRIBUTION (EPMC) SAFETY EXECUTIVE RESOLUTION.
DATE: April 5, 2017
FROM: CITY MANAGER'S OFFICE/HUMAN RESOURCES DIVISION
PRESENTATION BY: TAMARA S. LETOURNEAU, ASSISTANT CITY MANAGER
FOR FURTHER INFORMATION CONTACT: LANCE M. NAKAMOTO AT (714) 754-5172
RECOMMENDATION:
Staff recommends that the City Council:
1. Hold the second public hearing as required by COIN.
2. Adopt Resolution Number 17-25 (Attachment 1), which implements salary range
increases for Unrepresented Executive employees.
3. Adopt Resolution Number 17-26 (Attachment 11), which implements salary range
increases for CMDMA represented Executive employees.
4. Adopt Resolution Number 17-27 (Attachment III), which implements salary range
increases for Confidential Executive employees.
5. Adopt Resolution Number 17-28 (Attachment VI), for reporting the value (0%) of
Employer Paid Member Contribution (EPMC) relating to Safety Executive
employees.
BACKGROUND:
The City has not increased the salary ranges for the Department Executive and Division
Management positions since 2008. In fact, in 2012, these two groups volunteered to
increase the contributions to CalPERS without a salary increase, which resulted in a pay
reduction. The compensation packages for these positions creates challenges in
recruiting and retaining top talent.
1
At that point in time, the City's Division Managers were not recognized as a bargaining
unit. Since then, the non -sworn Division Managers have become recognized as the Costa
Mesa Division Managers Association (CMDMA) and other division managers are now
designated as Confidential. The Confidential Management classifications are the
Assistant to the City Manager, Assistant Finance Director, City Clerk and Human
Resources Manager.
Adhering to the COIN Ordinance, collaborative and productive meetings between the
City's designated negotiator and CMDMA members were held, which resulted in the
agreement to the City's proposed changes in salary and benefits, including, but not
limited to employee increased contributions to CalPERS retirement, reduction of the
vacation maximum and accruals, and the City's monthly contribution to a new Technology
Allowance Program. Similar changes are being proposed for Unrepresented Executives
and Confidential Managers. These changes are reflected and included in the respective
salary resolutions as Attachments I, II, and III.
The City Council held the first public hearing regarding the salary and benefit adjustments
agreed upon between the City and the classifications represented by the CMDMA at its
April 4, 2018 City Council meeting.
ANALYSIS:
The following are the key provisions for all groups:
• Salary: Salary Ranges will be adjusted between 2.00% to 15.88%. The salary
range adjustments are reflected in the respective salary resolutions as
Attachments I, II, III.
The methodology for the salary range increases were determined based upon
Council direction to adjust all the ranges so that the ranges are 5% below the
average of the total compensation for the survey cities (Fountain Valley,
Huntington Beach, Irvine, Newport Beach and Santa Ana). In the event a salary
range was within the 5% range, the adjustment was equal to that of the
corresponding CalPERS increase contribution so the result would be no pay
reduction.
The following tables are the proposed salary range increases:
EXECUTIVE CITY CLASSIFICATIONS
Salary Range Adjustment within
5% of the Range
City Manager
9.33%
Assistant City Manager
15.88%
Economic Dev Services Director
2.33%
Finance Director
9.29%
I.T. Director
6.62%
Public Services Director
5.99%
Fire Chief
2.00%
Police Chief
3.55%
it
DIVISION MANAGERS
CITY CLASSIFICATIONS
Salary Range Adjustment within
5% of the Range
Assist. Development Svs Director
3.38%
Assistant Finance Director
15.76%
Building Official
2.00%
City Clerk
14.45%
City Engineer
9.21%
Human Resources Manager
12.63%
Legislative & Public Affairs Mgr
2.00%
Maintenance Services Manager
2.08%
Recreation Manager
10.92%
Sr. Center Program Administrator
11.02%
Transportation Services Manager
6.27%
• Retirement: Employees will contribute additional cost towards CaIPERS upon
adoption of the respective salary resolution:
o Classic Tier 1 (2.5%@55 / 3%@50 formula) members will pay an
additional 1.531 % towards CaIPERS from 10.469% to a total of 12%
o Classic Tier 2 (2%@60 / 2%@50 formula) members will pay an additional
1-2% towards CaIPERS from 8-9% to a total of 10%
o PEPRA Tier 3 (2%@62 / 2.7%@57 formula) members will pay an
additional 1.25% towards CaIPERS for a total of 9%.
o In conjunction with the agreed upon increased employee contributions by
the Police and Fire Chiefs, the City is documenting the EPMC amounts as
0% by resolution (Attachment VI). Non -sworn executive employees 0%
EPMC has already been documented via a separate resolution.
• Vacation: Reduce the vacation maximum cap from 424 hours to 320 hours and
lower vacation accruals as follows:
1. Vacation Accrual Implementation and Ceiling- Effective six (6) months
after adoption by the City Council, the accrual of vacation hours will be
capped at the following maximum levels based upon an employee's years
of service as follows:
Years of Service
Annual Accrual 40 -Hour
Maximum Accrual 40 -Hour
1-2
92.0
184.0
3-4
116.0
232.0
5-9
140.0
280.0
10-14
164.0
320.0
15-19
188.0
320.0
20+
212.0
320.0
• Executive Leave: Reduce Executive Leave from 80 hours to 40 hours annually.
3
• Technology Allowance: Establish a technology allowance of $75 per month for
approved technology reimbursement.
• Car Allowance: Increase the car allowance from $477 to $575 per month for
Executives.
FISCAL REVIEW:
The Fiscal Impact Analysis (Attachment IV) prepared for the COIN Ordinance
recognizes annual cost increases of $153,667 for represented CMDMA and
Confidential employees and $209,056 annually (Attachment V) for unrepresented
Executive employees respectively.
LEGAL REVIEW:
The City Attorney has reviewed the documents and approved them as to form.
CONCLUSION:
Since the first public hearing was held at the April 4, 2017 City Council meeting, the
second public hearing at the April 18, 2017 City Council meeting will satisfy the COIN
Ordinance's requirement that there be at least two City Council meetings at which the
public has an opportunity to review and comment on the matter. Following the public
hearing, staff recommends that the City Council approve and adopt the attached
resolutions.
LANCE M. NAKAMOTO
Human Resources Manager
STEPHEN DUNIVENT
Interim Finance Director
DISTRIBUTION: City Manager Office
City Clerk
TAMARA S. LETOURNEAU
Assistant City Manager
THOMAS P. DUARTE
City Attorney
ATTACHMENTS: I Executive Salary Resolution 17-25
II CMDMA Salary Resolution 17-26
III Confidential Management Resolution 17-27
IV CMDMA/Confidential Fiscal Analysis
V_ Executive Fiscal Analysis
VI EPMC Resolution — Safety Executives 17-28
M
ATTACHMENT 1
RESOLUTION NO. 17-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, REVISING THE
EXECUTIVE COMPENSATION PLAN AND EXECUTIVE
SALARY SCHEDULE.
The City Council of the City of Costa Mesa does hereby resolve, determine and
order as follows:
SECTION 1. The Costa Mesa City Council previously established the Executive
Compensation Plan to: 1) promote maximum commitment by City executives to
objectives and standards of the City Council and City Manager; 2) establish a system in
which compensation serves as an effective device for promoting better job
performance; 3) foster the identification of an executive employee group and recognize
the distinct character of executive jobs; and, 4) improve the City's ability to attract and
retain outstanding executives.
SECTION 2. The following job classifications, placed under the Executive Salary
Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay
specified, effective the pay period beginning April 16, 2017. The rate of pay for
individual executives may be anywhere within the monthly minimum and maximum
salary steps.
Class
Class Title
Grade
Step
Code
1
2
3
4
5
6
7
0091
Administrative Services
775
$10,444
$10,966
$11,514
$12,090
$12,694
$13,329
$13,995
Monthly
Director
$125,328
$131,592
$138,168
$145,080
$152,328
$159,948
$167,940
Annual
$60.25
$63.27
$66.43
$69.75
$73.23
$76.90
$80.74
Hourly
0075
Assistant City Manager
810
$13,249
$13,911
$14,607
$15,337
$16,104
$16,909
$17,754
Monthly
$158,988
$166,932
$175,284
$184,044
$193,248
$202,908
$213,048
Annual
$76.44
$80.26
$84.27
$88.48
$92.91
$97.55
$102.43
Hourly
0076
City Manager
840
$15,537
$16,314
$17,130
$17,987
$18,886
$19,830
$20,822
Monthly
$186,444
$195,768
$205,560
$215,844
$226,632
$237,960
$249,864
Annual
$89.64
$94.12
$98.83
$103.77
$108.96
$114.40
$120.13
Hourly
0080
Economic & Development
850
$11,821
$12,412
$13,033
$13,685
$14,369
$15,087
$15,841
Monthly
Services Director
$141,852
$148,944
$156,396
$164,220
$172,428
$181,044
$190,092
Annual
$68.20
$71.61
$75.19
$78.95
$82.90
$87.04
$91.39
Hourly
0069
Finance Director
772
$11,428
$11,999
$12,599
$13,229
$13,890
$14,584
$15,313
Monthly
$137,136
$143,988
$151,188
$158,748
$166,680
$175,008
$183,756
Annual
$65.93
$69.23
$72.69
$76.32
$80.13
$84.14
$88.34
Hourly
0223 Fire Chief
793
$13,023
$13,674
$14,358
$15,076
$15,830
$16,621
$17,452
Monthly
$156,276
$164,088
$172,296
$180,912
$189,960
$199,452
$209,424
Annual
$75.13
$78.89
$82.83
$86.98
$91.33
$95.89
$100.68
Hourly
0049 Information Technology
851
$11,133
$11,690
$12,275
$12,889
$13,533
$14,210
$14,921
Monthly
Director
$133,596
$140,280
$147,300
$154,668
$162,396
$170,520
$179,052
Annual
$64.23
$67.44
$70.82
$74.36
$78.08
$81.98
$86.08
Hourly
0306 Parks & Community
735
$11,133
$11,690
$12,275
$12,889
$13,533
$14,210
$14,921
Monthly
Services Director
$133,596
$140,280
$147,300
$154,668
$162,396
$170,520
$179,052
Annual
$64.23
$67.44
$70.82
$74.36
$78.08
$81.98
$86.08
Hourly
0207 Police Chief
792
$13,310
$13,975
$14,674
$15,408
$16,178
$16,987
$17,836
Monthly
$159,720
$167,700
$176,088
$184,896
$194,136
$203,844
$214,032
Annual
$76.79
$80.63
$84.66
$88.89
$93.33
$98.00
$102.90
Hourly
0117 Public Services Director
791
$11,656
$12,239
$12,851
$13,494
$14,169
$14,877
$15,621
Monthly
$139,872
$146,868
$154,212
$161,928
$170,028
$178,524
$187,452
Annual
$67.25
$70.61
$74.14
$77.85
$81.74
$85.83
$90.12
Hourly
SECTION 3. The City of Costa Mesa has contracted with the California Public
Employees Retirement System (CaIPERS) to provide retirement benefits to eligible City
employees.
3.1 CaIPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of
new member" under the California Public Employees' Pension Reform Act of
2013 (PEPRA) (those unit members shall be referred to as "classic members")
are enrolled in either the CaIPERS retirement plan provided for by Government
Code § 21354.4, and commonly referred to as the 2.5% at age 55 retirement
plan ("tier 1"), or the 2% at 60 formula provided for by Government Code
§ 21353 ("tier 2").
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier
2 (2% @ 60) unit members will be 10% of compensation earnable,
inclusive of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below
Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62)
unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
3.2 CalPERS - Safety Police Members
Employees covered by this resolution who do not meet the definition of
"new member" under the California Public Employees' Pension Reform Act of
2013 (PEPRA) (those unit members shall be referred to as "classic members")
are enrolled in the CalPERS retirement plan provided for by Government Code §
21362.2, and commonly referred to as the 3% at age 50 retirement plan ("tier 1 ").
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (3% @ 50) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below
Effective April 16, 2017, the total contribution for PEPRA tier 2 (2.7% @
57) unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
3.3 CalPERS — Safety Fire Members
Employees covered by this resolution who do not meet the definition of
"new member" under the California Public Employees' Pension Reform Act of
2013 (PEPRA) (those unit members shall be referred to as "classic members")
are enrolled in either the CalPERS retirement plan provided for by Government
Code § 21362.2, and commonly referred to as the 3% at age 50 retirement plan
("tier 1 ") or the 2% at 50 formula provided for by Government Code § 21362 ("tier
2"
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (3% @ 50) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier
2 (2% @ 50) unit members will be 10% of compensation earnable,
inclusive of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below
Upon adoption of this resolution by the City Council, the total contribution
for PEPRA tier 3 (2.7% @ 57) will be 9% of pensionable compensation,
inclusive of statutory employee contributions and cost sharing.
3.4 THE CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT OF
2013 (PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given
full force and effect. PEPRA includes, but is not limited to, the provisions
described below:
Members hired on and after January 1, 2013, deemed to be a "new
member" as defined in Government Code § 7522.04, shall individually pay an
initial Member CALPERS contribution rate of 50% of the normal cost rate for the
Defined Benefit Plan in which said "new member" is enrolled, rounded to the
nearest quarter of 1%, or the current contribution rate of similarly situated
employees, whichever is greater.
Members who are "new members" on and after January 1, 2013, shall be
enrolled in the PEPRA provided for 2% @ 62 retirement formula for
miscellaneous employees (Govt. Code § 7522.20), or 2.7% @ 57 for safety
employees (Govt. Code § 7522.25(d)).
Members who are "new members" on and after January 1, 2013, shall
have "final compensation" measured by the highest average annual pensionable
compensation earned by the member during a period of at least 36 consecutive
months (Section 7522.32.), and their retirement benefits shall be calculated
based on "pensionable compensation" (Section 7522.10) rather than
"compensation earnable" (Section 20636).
SECTION 4. The following classifications shall be provided with a City vehicle or
monthly automobile allowance:
Assigned City Vehicle: Fire Chief, Police Chief
650 Monthly Automobile Allowance: City Manager
$575 Monthly Automobile Allowance: Administrative Services Director, Assistant
City Manager, Economic and Development Services Director, Finance Director,
Information Technology Director, Parks and Community Services Director, Public
Services Director
In all situations, the City Manager has the sole discretion to grant, modify or deny
use of a City vehicle or grant an allowance for employees covered by this resolution.
SECTION 5. Employees covered by this resolution shall be provided with a $75
monthly technology allowance. The City Manager has the sole discretion to grant,
modify or deny an allowance for employees covered by this resolution.
SECTION 6. With exception of the City Manager, a pay -for -performance
evaluation and compensation system will be utilized for all employees in executive job
classifications. All compensation increases for executives will be based upon continued
meritorious service to the City. Though the City Manager may receive labor marketplace
salary adjustments, annual performance evaluations for this position will be conducted
in the fall of each year by the City Council.
SECTION 7. The Fire Chief and Police Chief are eligible to participate in the
Management Certification/Education Program based upon the following achievements
and criteria:
Certification/ Degree
P.O.S.T. Executive Certificate
National Fire Academy -
Executive Fire Officer
Master's Degree
Eligible Classification Award
Police Chief 5.0%
Fire Chief 2.50%
Fire Chief 2.50%
Awards are based on a percentage of base salary. The maximum cumulative
award payable to any employee shall not exceed 5.0% of base salary. These awards
shall be reported to PERS as "compensation earnable" and will be included as an
element of total compensation in the annual calculation.
An award may be granted, rejected or removed at any time. The City Manager
may review and update this program on a periodic basis to ensure its vitality and
relevance.
SECTION 8. The City shall contribute an amount toward the executive flexible
benefit plan bucket for the payment of premiums for affected employees and
dependents based upon the following criteria:
• Full family coverage for the PERS Choice medical plan under the California
Public Employees' Retirement System (CALPERS) health insurance
programs
• Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• Long Term Disability premium will be based upon the top step salary of the
highest -salaried Department Director within the classified service
Any amounts necessary to maintain benefit premiums in excess of the City
contribution specified above shall be borne entirely by the executive employee.
SECTION 9. Effective October 15, 2017, employees covered by this resolution
shall accrue vacation leave at the following rates and shall be capped at the following
maximum levels:
Years of Service Annual Accrual 40 -Hour Maximum Accrual 40 -Hour
1-2
92
184
3-4
116
232
5-9
140
280
10-14
164
320
15-19
188
320
20+
212
320
Vacation Leave Cash -Outs — Each fiscal year, employees will have the following
cash -out options: 1) One eighty (80) hour cash -out any time during the fiscal year,
regardless of the employee's maximum accrual and regardless of the employee's
Vacation Leave usage; and, 2) Up to four cash -outs per fiscal year, any time during the
fiscal year (irrespective of quarter), based on a "2 for 1" usage ratio, up to a maximum
of 80 -hours for each cash out. For example, if an employee uses 10 hours of Vacation
Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an
employee to cash -out the maximum of 80 -hours Vacation Leave, the employee would
need to use 40 hours of Vacation Leave.
All employees who are at the Maximum Accrual Level or who may reach the
Maximum Accrual Level shall utilize the "Cash -Out" and/or "Vacation Leave" options so
as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based
upon City and/or Departmental needs as approved by the City Manager, there will no
other cash -out of Vacation Leave time beyond the Maximum Accrual rates that have
been established.
SECTION 10. Effective December 24, 2017, the City shall grant Executive Leave
to management personnel not to exceed forty (40) hours per year. The City Manager
may grant an additional sixty (60) hours of Executive Leave.
SECTION 11. Pursuant to the Executive Professional Development
Reimbursement Program, the City agrees to reimburse Department Directors up to
$2,000 per fiscal year for activities, materials, equipment or fees that will aid in their
individual professional development. The intent of this program is to encourage and
recognize executive staff for pursuing educational, professional or community -oriented
activities, enhancing job skills and expertise, and/or purchasing materials/equipment,
which improve the executive's performance. These activities, materials, equipment or
fees are intended to be beyond what is budgeted for individuals through the annual
budget cycle. The reimbursement options available include the following:
• Professional memberships, licenses and certificates that are job-related
• Professional conferences that are job-related including fees and other
expenses while attending
• Membership dues in community organizations relevant to the executive's job
assignment
• Purchase of job-related professional journals, periodicals, books or other
written materials which further knowledge or improvement of effectiveness in
performance of duties
• Education fees that exceed the City's annual $1,250 tuition reimbursement
limit
• Direct purchase of qualifying computer equipment defined in Administrative
Regulation 2.29
The Assistant City Manager must approve participation in the activities and/or
purchase of the materials/equipment in advance. Claims for reimbursement must be
accompanied by documentation that an eligible expense has been incurred during the
fiscal year for the executive employee only. Any portion of the reimbursement amount
not incurred within the fiscal year shall remain City funds unless prior approval has
been received by the City Manager. Requests to carry forward unencumbered amounts
to the next fiscal year must receive approval by the City Manager prior to the end of the
fiscal year. All payments will be in the form of reimbursement and no executive
employee will directly receive cash for this benefit. Reimbursements, which are subject
to taxation, will be processed through the payroll system. The Finance Department shall
administer this program in accordance to the stated purpose and will provide the
appropriate forms and procedures. This reimbursement program does not prohibit
individual departments from continuing to budget funds for executive staff attendance at
professional conferences and seminars, for the payment of professional membership
dues, and/or for the purchase of books, journals and written materials that are job-
related and will enhance an executive's knowledge or expertise.
SECTION 12. The 401(a) deferred compensation plan provides executives with
another tax-deferred savings plan for future financial planning. The City will provide a
0.5% per pay period employer contribution for any executive whose management group
elects to participate in the 401(a) plan. The employer contribution will be reflected in
that executive's annual total compensation calculation. However, the City will not
provide an employer contribution to the current 457 deferred compensation plan and
the executive must make all 457 contributions.
SECTION 13. All resolutions and parts of resolutions in conflict herewith are
hereby rescinded.
PASSED AND ADOPTED this 18th day of April, 2017.
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
Katrina Foley, Mayor
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 17 --and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 18th day of April, 2017, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19th day of April, 2017.
BRENDA GREEN, CITY CLERK
(SEAL)
ATTACHMENT 2
RESOLUTION NO. 17-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, REVISING THE
COMPENSATION PLAN AND SALARY RANGES FOR
CLASSIFICATIONS REPRESENTED BY THE COSTA
MESA DIVISION MANAGERS ASSOCIATION.
The City Council of the City of Costa Mesa does hereby resolve, determine and
order as follows:
SECTION 1. The following job classifications are hereby revised to reflect the
salary ranges and monthly rates of pay specified, effective the pay period beginning
April 16, 2017. The rate of pay for individual classifications may be anywhere within the
monthly minimum and maximum salary steps.
Class
Title
Grade
Step
Code
1
2
3
4
5
6
7
0143
Assistant Building Official
854
$8,282
$8,696
$9,130
$9,587
$10,066
$10,570
$11,098
Monthly
$99,384
$104,352
$109,560
$115,044
$120,792
$126,840
$133,176
Annual
$47.78
$50.17
$52.67
$55.31
$58.07
$60.98
$64.03
Hourly
0157
Assistant Development
761
$9,848
$10,340
$10,857
$11,400
$11,970
$12,569
$13,197
Monthly
Services Director
$118,176
$124,080
$130,284
$136,800
$143,640
$150,828
$158,364
Annual
$56.82
$59.65
$62.64
$65.77
$69.06
$72.51
$76.14
Hourly
0059
Budget & Research
740
$8,128
$8,534
$8,961
$9,409
$9,880
$10,374
$10,892
Monthly
Officer
$97,536
$102,408
$107,532
$112,908
$118,560
$124,488
$130,704
Annual
$46.89
$49.23
$51.70
$54.28
$57.00
$59.85
$62.84
Hourly
0142
Building Official
754
$9,751
$10,239
$10,751
$11,289
$11,853
$12,446
$13,068
Monthly
$117,012
$122,868
$129,012
$135,468
$142,236
$149,352
$156,816
Annual
$56.26
$59.07
$62.03
$65.13
$68.38
$71.80
$75.39
Hourly
0112
City Engineer
751
$9,348
$9,815
$10,306
$10,821
$11,362
$11,930
$12,526
Monthly
$112,176
$117,780
$123,672
$129,852
$136,344
$143,160
$150,312
Annual
$53.93
$56.63
$59.46
$62.43
$65.55
$68.83
$72.27
Hourly
0047
Information Technology
741
$7,937
$8,334
$8,751
$9,188
$9,648
$10,130
$10,636
Monthly
Manager
$95,244
$100,008
$105,012
$110,256
$115,776
$121,560
$127,632
Annual
$45.79
$48.08
$50.49
$53.01
$55.66
$58.44
$61.36
Hourly
0451
Maintenance Services
733
$8,454
$8,877
$9,321
$9,787
$10,276
$10,790
$11,329
Monthly
Manager
$101,448
$106,524
$111,852
$117,444
$123,312
$129,480
$135,948
Annual
$48.77
$51.21
$53.78
$56.46
$59.28
$62.25
$65.36
Hourly
0160
Neighborhood
719
$7,753
$8,140
$8,547
$8,975
$9,423
$9,894
$10,389
Monthly
Improvement Manager
$93,036
$97,680
$102,564
$107,700
$113,076
$118,728
$124,668
Annual
$44.73
$46.96
$49.31
$51.78
$54.36
$57.08
$59.94
Hourly
0097
Police Administrative
756
$9,802
$10,292
$10,807
$11,347
$11,914
$12,510
$13,135
Monthly
Services Commander
$117,624
$123,504
$129,684
$136,164
$142,968
$150,120
$157,620
Annual
$56.55
$59.38
$62.35
$65.46
$68.73
$72.17
$75.78
Hourly
0077
Public Affairs Manager
140
$8,630
$9,062
$9,515
$9,991
$10,491
$11,016
$11,567
Monthly
$103,560
$108,744
$114,180
$119,892
$125,892
$132,192
$138,804
Annual
$49.79
$52.28
$54.89
$57.64
$60.53
$63.55
$66.73
Hourly
0305
Recreation Manager
893
$8,426
$8,847
$9,289
$9,753
$10,241
$10,753
$11,291
Monthly
$101,112
$106,164
$111,468
$117,036
$122,892
$129,036
$135,492
Annual
$48.61
$51.04
$53.59
$56.27
$59.08
$62.04
$65.14
Hourly
0303
Senior Recreation
725
$6,145
$6,452
$6,775
$7,114
$7,470
$7,843
$8,235
Monthly
Program Administrator
$73,740
$77,424
$81,300
$85,368
$89,640
$94,116
$98,820
Annual
$35.45
$37.22
$39.09
$41.04
$43.10
$45.25
$47.51
Hourly
0236
Telecommunications
894
$8,048
$8,450
$8,873
$9,317
$9,782
$10,272
$10,785
Monthly
Manager
$96,576
$101,400
$106,476
$111,804
$117,384
$123,264
$129,420
Annual
$46.43
$48.75
$51.19
$53.75
$56.43
$59.26
$62.22
Hourly
0113
Transportation Services
745
$9,231
$9,693
$10,178
$10,687
$11,221
$11,782
$12,371
Monthly
Manager
$110,772
$116,316
$122,136
$128,244
$134,652
$141,384
$148,452
Annual
$53.26
$55.92
$58.72
$61.66
$64.74
$67.97
$71.37
Hourly
SECTION 2. The City of Costa Mesa has contracted with the California Public
Employees Retirement System (CaIPERS) to provide retirement benefits to eligible City
employees.
2.1 CaIPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of
new member" under the California Public Employees' Pension Reform Act of
2013 (PEPRA) (those unit members shall be referred to as "classic members")
are enrolled in either the CaIPERS retirement plan provided for by Government
Code § 21354.4, and commonly referred to as the 2.5% at age 55 retirement
plan ("tier 1"), or the 2% at 60 formula provided for by Government Code
§ 21353 ("tier 2").
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier
2 (2% @ 60) unit members will be 10% of compensation earnable,
inclusive of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 2.2 below
Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62)
unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
2.2 THE CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT OF
2013 (PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given
full force and effect. PEPRA includes, but is not limited to, the provisions
described below:
Members hired on and after January 1, 2013, deemed to be a "new
member" as defined in Government Code § 7522.04, shall individually pay an
initial Member CALPERS contribution rate of 50% of the normal cost rate for the
Defined Benefit Plan in which said "new member" is enrolled, rounded to the
nearest quarter of 1%, or the current contribution rate of similarly situated
employees, whichever is greater.
Members who are "new members" on and after January 1, 2013, shall be
enrolled in the PEPRA provided for 2% @ 62 retirement formula for
miscellaneous employees (Govt. Code § 7522.20).
Members who are "new members" on and after January 1, 2013, shall
have "final compensation" measured by the highest average annual pensionable
compensation earned by the member during a period of at least 36 consecutive
months (Section 7522.32.), and their retirement benefits shall be calculated
based on "pensionable compensation" (Section 7522.10) rather than
"compensation earnable" (Section 20636).
SECTION 3. Employees covered by this resolution shall be provided with a $75
monthly technology allowance. The City Manager has the sole discretion to grant,
modify or deny an allowance for employees covered by this resolution.
SECTION 4. The City shall contribute an amount toward the flexible benefit plan
bucket for the payment of premiums for affected employees and dependents based
upon the following criteria:
• Full family coverage for the PERS Choice medical plan under the California
Public Employees' Retirement System (CALPERS) health insurance
programs
• Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• Long Term Disability premium will be based upon the top step salary of the
highest -salaried Division Manager within the classified service
Any amounts necessary to maintain benefit premiums in excess of the City
contribution specified above shall be borne entirely by the executive employee.
SECTION 5. Effective October 15, 2017, employees covered by this resolution
shall accrue vacation leave at the following rates and shall be capped at the following
maximum levels:
Years of Service Annual Accrual 40 -Hour Maximum Accrual 40 -Hour
1-2
92
184
3-4
116
232
5-9
140
280
10-14
164
320
15-19
188
320
20+
212
320
Vacation Leave Cash -Outs — Each fiscal year, employees will have the following
cash -out options: 1) One eighty (80) hour cash -out any time during the fiscal year,
regardless of the employee's maximum accrual and regardless of the employee's
Vacation Leave usage; and, 2) Up to four cash -outs per fiscal year, any time during the
fiscal year (irrespective of quarter), based on a "2 for 1" usage ratio, up to a maximum
of 80 -hours for each cash out. For example, if an employee uses 10 hours of Vacation
Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an
employee to cash -out the maximum of 80 -hours Vacation Leave, the employee would
need to use 40 hours of Vacation Leave.
All employees who are at the Maximum Accrual Level or who may reach the
Maximum Accrual Level shall utilize the "Cash -Out" and/or "Vacation Leave" options so
as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based
upon City and/or Departmental needs as approved by both the Department Director
and the City Manager there will no other cash -out of Vacation Leave time beyond the
Maximum Accrual rates that have been established.
SECTION 6. Effective December 24, 2017, the City shall grant Executive Leave
to management personnel not to exceed forty (40) hours per year. The City Manager
may grant an additional forty (60) hours of Executive Leave.
SECTION 7. Pursuant to the Executive Professional Development
Reimbursement Program, the City agrees to reimburse Division Managers up to $1,000
per fiscal year for activities, materials, equipment or fees that will aid in their individual
professional development. The intent of this program is to encourage and recognize
executive staff for pursuing educational, professional or community -oriented activities,
enhancing job skills and expertise, and/or purchasing materials/equipment, which
improve the executive's performance. These activities, materials, equipment or fees are
intended to be beyond what is budgeted for individuals through the annual budget
cycle. The reimbursement options available include the following:
• Professional memberships, licenses and certificates that are job-related
• Professional conferences that are job-related including fees and other
expenses while attending
• Membership dues in community organizations relevant to the executive's job
assignment
• Purchase of job-related professional journals, periodicals, books or other
written materials which further knowledge or improvement of effectiveness in
performance of duties
• Education fees that exceed the City's annual $1,250 tuition reimbursement
limit
• Direct purchase of qualifying computer equipment defined in Administrative
Regulation 2.29
The Department Director and Assistant City Manager must approve participation
in the activities and/or purchase of the materials/equipment in advance. Claims for
reimbursement must be accompanied by documentation that an eligible expense has
been incurred during the fiscal year for the executive employee only. Any portion of the
reimbursement amount not incurred within the fiscal year shall remain City funds unless
prior approval has been received by the City Manager. Requests to carry forward
unencumbered amounts to the next fiscal year must receive approval by the City
Manager prior to the end of the fiscal year. All payments will be in the form of
reimbursement and no executive employee will directly receive cash for this benefit.
Reimbursements, which are subject to taxation, will be processed through the payroll
system. The Finance Department shall administer this program in accordance to the
stated purpose and will provide the appropriate forms and procedures. This
reimbursement program does not prohibit individual departments from continuing to
budget funds for executive staff attendance at professional conferences and seminars,
for the payment of professional membership dues, and/or for the purchase of books,
journals and written materials that are job-related and will enhance an executive's
knowledge or expertise.
SECTION 8. The 401(a) deferred compensation plan provides executives with
another tax-deferred savings plan for future financial planning. The City will provide a
0.5% per pay period employer contribution for any executive whose management group
elects to participate in the 401(a) plan. The employer contribution will be reflected in
that executive's annual total compensation calculation. However, the City will not
provide an employer contribution to the current 457 deferred compensation plan and
the executive must make all 457 contributions.
SECTION 9. All resolutions and parts of resolutions in conflict herewith are
hereby rescinded.
PASSED AND ADOPTED this 18th day of April, 2017.
Katrina Foley, Mayor
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 17 --and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 18th day of April, 2017, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19th day of April, 2017.
BRENDA GREEN, CITY CLERK
(SEAL)
ATTACHMENT 3
RESOLUTION NO. 17-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, REVISING THE
COMPENSATION PLAN AND SALARY SCHEDULE FOR
JOB CLASSIFICATIONS WITHIN THE CONFIDENTIAL
MANAGEMENT UNIT.
The City Council of the City of Costa Mesa does hereby resolve, determine and
order as follows:
SECTION 1. Employer -Employee Organization Relations Resolution No. 95-63,
as authorized under the California Government Code (Section 3500, et seq.), defines
"Employee, Confidential" as any employee whose normal duties would give the
employee access to decisions or the decision-making processes of the City concerning
any matters relating to employer-employee relations; and said Resolution sets forth the
"Policy and Standards for Determination of Appropriate Units", including the provision
that confidential responsibilities are determining factors in establishing appropriate
units. Accordingly, specific positions have been determined by the City Manager
(Employee Relations Officer) as having access to or preparing confidential materials
and/or information and/or recommendations on behalf of the City in matters relating to
employer-employee relations and are included in this Confidential Management Unit.
SECTION 2. The following job classifications are hereby revised to reflect the
salary ranges and monthly rates of pay specified, effective the pay period beginning
April 16, 2017. The rate of pay for individual classifications may be anywhere within the
monthly minimum and maximum salary steps.
Class
Title
Grade
Step
Code
1
2
3
4
5
6
7
0068
Assistant Finance
750 $9,881
$10,375
$10,894
$11,439
$12,011
$12,612
$13,243
Monthly
Director
$118,572
$124,500
$130,728
$137,268
$144,132
$151,344
$158,916
Annual
$57.01
$59.86
$62.85
$65.99
$69.29
$72.76
$76.40
Hourly
0023
City Clerk
892 $8,724
$9,160
$9,618
$10,099
$10,604
$11,134
$11,691
Monthly
$104,688
$109,920
$115,416
$121,188
$127,248
$133,608
$140,292
Annual
$50.33
$52.85
$55.49
$58.26
$61.18
$64.23
$67.45
Hourly
0090
Human Resources
748 $10,382
$10,901
$11,446
$12,018
$12,619
$13,250
$13,913
Monthly
Manager
$124,584
$130,812
$137,352
$144,216
$151,428
$159,000
$166,956
Annual
$59.90
$62.89
$66.03
$69.33
$72.80
$76.44
$80.27
Hourly
SECTION 3. The City of Costa Mesa has contracted with the California Public
Employees Retirement System (CaIPERS) to provide retirement benefits to eligible City
employees.
3.1 CaIPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of
"new member" under the California Public Employees' Pension Reform Act of
2013 (PEPRA) (those unit members shall be referred to as "classic members")
are enrolled in either the CaIPERS retirement plan provided for by Government
Code § 21354.4, and commonly referred to as the 2.5% at age 55 retirement
plan ("tier 1"), or the 2% at 60 formula provided for by Government Code
§ 21353 ("tier 2").
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier
2 (2% @ 60) unit members will be 10% of compensation earnable,
inclusive of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.2 below
Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62)
unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
3.2 THE CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT OF
2013 (PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given
full force and effect. PEPRA includes, but is not limited to, the provisions
described below:
Members hired on and after January 1, 2013, deemed to be a "new
member" as defined in Government Code § 7522.04, shall individually pay an
initial Member CALPERS contribution rate of 50% of the normal cost rate for the
Defined Benefit Plan in which said "new member" is enrolled, rounded to the
nearest quarter of 1%, or the current contribution rate of similarly situated
employees, whichever is greater.
Members who are "new members" on and after January 1, 2013, shall be
enrolled in the PEPRA provided for 2% @ 62 retirement formula for
miscellaneous employees (Govt. Code § 7522.20).
Members who are "new members" on and after January 1, 2013, shall
have "final compensation" measured by the highest average annual pensionable
compensation earned by the member during a period of at least 36 consecutive
months (Section 7522.32.), and their retirement benefits shall be calculated
based on "pensionable compensation" (Section 7522.10) rather than
"compensation earnable" (Section 20636).
SECTION 4. Employees covered by this resolution shall be provided with a $75
monthly technology allowance. The City Manager has the sole discretion to grant,
modify or deny an allowance for employees covered by this resolution.
SECTION 5. The City shall contribute an amount toward the flexible benefit plan
bucket for the payment of premiums for affected employees and dependents based
upon the following criteria:
• Full family coverage for the PERS Choice medical plan under the California
Public Employees' Retirement System (CALPERS) health insurance
programs
• Full family coverage for the Dental Indemnity plan
• Full premium payment for Life Insurance
• Long Term Disability premium will be based upon the top step salary of the
highest -salaried Division Manager within the classified service
Any amounts necessary to maintain benefit premiums in excess of the City
contribution specified above shall be borne entirely by the executive employee.
SECTION 6. Effective October 15, 2017, employees covered by this resolution
shall accrue vacation leave at the following rates and shall be capped at the following
maximum levels:
Years of Service Annual Accrual 40 -Hour Maximum Accrual 40 -Hour
1-2
92
184
3-4
116
232
5-9
140
280
10-14
164
320
15-19
188
320
20+
212
320
Vacation Leave Cash -Outs — Each fiscal year, employees will have the following
cash -out options: 1) One eighty (80) hour cash -out any time during the fiscal year,
regardless of the employee's maximum accrual and regardless of the employee's
Vacation Leave usage; and, 2) Up to four cash -outs per fiscal year, any time during the
fiscal year (irrespective of quarter), based on a "2 for 1" usage ratio, up to a maximum
of 80 -hours for each cash out. For example, if an employee uses 10 hours of Vacation
Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an
employee to cash -out the maximum of 80 -hours Vacation Leave, the employee would
need to use 40 hours of Vacation Leave.
All employees who are at the Maximum Accrual Level or who may reach the
Maximum Accrual Level shall utilize the "Cash -Out" and/or "Vacation Leave" options so
as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based
upon City and/or Departmental needs as approved by both the Department Director
and the City Manager there will no other cash -out of Vacation Leave time beyond the
Maximum Accrual rates that have been established.
SECTION 7. Effective December 24, 2017, the City shall grant Executive Leave
to management personnel not to exceed forty (40) hours per year. The City Manager
may grant an additional forty (60) hours of Executive Leave.
SECTION 8. Pursuant to the Executive Professional Development
Reimbursement Program, the City agrees to reimburse Division Managers up to $1,000
per fiscal year for activities, materials, equipment or fees that will aid in their individual
professional development. The intent of this program is to encourage and recognize
executive staff for pursuing educational, professional or community -oriented activities,
enhancing job skills and expertise, and/or purchasing materials/equipment, which
improve the executive's performance. These activities, materials, equipment or fees are
intended to be beyond what is budgeted for individuals through the annual budget
cycle. The reimbursement options available include the following:
• Professional memberships, licenses and certificates that are job-related
• Professional conferences that are job-related including fees and other
expenses while attending
• Membership dues in community organizations relevant to the executive's job
assignment
• Purchase of job-related professional journals, periodicals, books or other
written materials which further knowledge or improvement of effectiveness in
performance of duties
• Education fees that exceed the City's annual $1,250 tuition reimbursement
limit
• Direct purchase of qualifying computer equipment defined in Administrative
Regulation 2.29
The Department Director and Assistant City Manager must approve participation
in the activities and/or purchase of the materials/equipment in advance. Claims for
reimbursement must be accompanied by documentation that an eligible expense has
been incurred during the fiscal year for the executive employee only. Any portion of the
reimbursement amount not incurred within the fiscal year shall remain City funds unless
prior approval has been received by the City Manager. Requests to carry forward
unencumbered amounts to the next fiscal year must receive approval by the City
Manager prior to the end of the fiscal year. All payments will be in the form of
reimbursement and no executive employee will directly receive cash for this benefit.
Reimbursements, which are subject to taxation, will be processed through the payroll
system. The Finance Department shall administer this program in accordance to the
stated purpose and will provide the appropriate forms and procedures. This
reimbursement program does not prohibit individual departments from continuing to
budget funds for executive staff attendance at professional conferences and seminars,
for the payment of professional membership dues, and/or for the purchase of books,
journals and written materials that are job-related and will enhance an executive's
knowledge or expertise.
SECTION 9. The 401(a) deferred compensation plan provides executives with
another tax-deferred savings plan for future financial planning. The City will provide a
0.5% per pay period employer contribution for any executive whose management group
elects to participate in the 401(a) plan. The employer contribution will be reflected in
that executive's annual total compensation calculation. However, the City will not
provide an employer contribution to the current 457 deferred compensation plan and
the executive must make all 457 contributions.
SECTION 10. Amendments made pertaining to the fringe benefits, City Rules
and Regulations and other employment conditions for employees represented by the
Costa Mesa Division Managers Association shall also apply to "Confidential"
unrepresented management employees unless specifically excluded. Any positions that
may qualify to be part of this unrepresented unit shall be added as part of the process
of adoption of salary schedules after consultation with the bargaining unit and
employees.
SECTION 11.
hereby rescinded.
All resolutions and parts of resolutions in conflict herewith are
PASSED AND ADOPTED this 18th day of April, 2017.
ATTEST:
Brenda Green, City Clerk
Katrina Foley, Mayor
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 17 --and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 18th day of April, 2017, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19th day of April, 2017.
BRENDA GREEN, CITY CLERK
(SEAL)
ATTACHMENT IV
Fiscal Impact Analysis for COIN Ordinance
Manager Group
Based on Fiscal Year 2016-17 Budgeted Casts
John Stephens, Counal Member
Notes
(1)-6.04%is a calculated rate per employee is based on the Annual Required Contribution amount calculated as of June 30, 2014
by Nyhan. an independent actuary for CASE 45 compliance.
Existing net unfunded liability is 101.4% of covered payroll based on the June 2014 Nyhad report.
(2)- Prorated using amounts from PERS Valuations for Miscelaneous Employees as of June 30, 2014 and June 30, 2015.
(3)- Estimated based on FV 15-16 actual payouts out for this group.
Value of
Proposal
Existing
Picjected
Existing
Projected
Pay/
Budgeted FY 16.17
February 1 017
Unfunded
Unfunded
Funded
Funded
Benefit
Cost to Cay
ion 2
Liability
Liabllav
Uability
Liability
Base Salary
$1,805,698
92
Pension/ Retirement Benefits
2.5%@55
603,815
618,357
66,999,128 (2)
7,672,242
$16,286,040 (2)
16,097,376
and 3 other plans
Cefetena Plan Benefits
521,504
301,056
301,056
Bilingual Pay
5.00%
7,687
7.805
Bilingual Pay
2.50%
0
0
Class A / B License Pay
6700
0
0
Emergency Med Dispatch Pay
5.00%
0
0
MedlCare
1.45%
26,425
28,110
Shift DifferentaaPM Pay
3.75%
0
0
Shift Differential Pay
5.00%
0
0
Shit DlBeranlial/AM Pay
10.00%
0
0
Shorthand Pay
2.50%
0
0
401A Plan
0.50%
9.028
9,606
Technology Pay
0
12,600
Estimated Costs:
Retiree Medical (1)
6.04%
109,064
116.040
1,630,978
Overtime
0
0
Excess Accrual Payoff /Cashouls
28,319 (3)
29.995
Total
52.691,092
53,044,760
5 153,667
5.3%
Total Number of Employees
14
14
John Stephens, Counal Member
Notes
(1)-6.04%is a calculated rate per employee is based on the Annual Required Contribution amount calculated as of June 30, 2014
by Nyhan. an independent actuary for CASE 45 compliance.
Existing net unfunded liability is 101.4% of covered payroll based on the June 2014 Nyhad report.
(2)- Prorated using amounts from PERS Valuations for Miscelaneous Employees as of June 30, 2014 and June 30, 2015.
(3)- Estimated based on FV 15-16 actual payouts out for this group.
Fiscal Impact Analysis
Executive Group
Based on Fiscal Year 2016-17 Budgeted Costs
Notes:
ATTACHMENT V
Existing
Value of
Existing Projected
Proposal
Unfunded
Pay/
Budgeted FY 16-17
February 14, 2017
Liability Liability
Benefit
Cost to City
Option 2
Base Salary
$1,681,854
1,817,093
Pension / Retirement Benefits
2.5%@55
571,550
612,907
and 4 other plans
Cafeteria Plan Benefits
$21,720
195,264
195,264
Bilingual Pay
5.00%
0
0
Bilingual Pay
2.50%
0
0
Class A / B License Pay
$700
0
0
Emergency Med Dispatch Pay
5.00%
0
0
MediCare
1.45%
24,509
26,480
Professional Development
$1,000
Shift Differential/PM Pay
3.75%
0
0
Shift Differential Pay
5.00%
0
0
Shift Differential/AM Pay
10.00%
0
0
Shorthand Pay
2.50%
0
0
401A Plan
0.50%
8,409
9,085
Executive Car Allowance
$477/month
51,516
62,100
Technology Allowance
0
8,100
Estimated Costs:
Retiree Medical (1)
6.04%
101,584
109,752
Overtime
0
0
Excess Accrual Payoff / Cashouts
26,512 (3)
29,473
Total
$2,661,198_
$ 2,870,254
Increase/Decrease
$ 209,056
Percent
7.9%
Total Number of Employees
9
9
Notes:
ATTACHMENT V
Existing
Projected
Existing Projected
Unfunded
Unfunded
Funded Funded
Liability
Liability
Liability Liability
$6,619,885 (2)
7,256,527
$15,403,592 (2) 15,225,151
1,705,400
(1) - 6.04% is a calculated rate per employee is based on the Annual Required Contribution amount calculated as of June 30, 2014
by Nyhart, an independent actuary for GASB 45 compliance.
Existing net unfunded liability is 101.4% of covered payroll based on the June 2014 Nyhart report.
(2) - Prorated using amounts from PERS Valuations for Miscellaneous Employees as of June 30, 2014 and June 30, 2015.
(3) - Estimated based on FY 15-16 actual payouts for this group.
ATTACHMENT 6
RESOLUTION NO. 17-28
A RESOLUTION OF THE CITY COUNCIL OF COSTA MESA,
CALIFORNIA FOR PAYING AND REPORTING THE VALUE OF
EMPLOYER PAID MEMBER CONTRIBUTION (EPMC) RELATING
TO SAFETY EXECUTIVE EMPLOYEES.
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS
FOLLOWS:
WHEREAS, the governing body of the CITY OF COSTA MESA has the authority to
implement Government Code Section 20636(c)(4) pursuant to Section 20691;
WHEREAS, the governing body of the CITY OF COSTA MESA has a written agreement
which specifically provides for the normal member contributions to be paid by the employer,
and reported as additional compensation;
WHEREAS, one of the steps in the procedures to change Section 20691 is the adoption
by the governing body of the CITY OF COSTA MESA of a Resolution for paying and reporting
the value of said Employer Paid Member Contributions (EPMC); pursuant to CCR title 2
section 571(a)(1).
WHEREAS, the governing body of the CITY OF COSTA MESA has indentified the
following conditions for the purpose of its election to pay EPMC;
• This benefit shall apply to all Safety Executive employees.
• This benefit shall consist of paying 0% of the normal contributions as EPMC, and
reporting the same percent (value) of compensation earnable (excluding Government
Code Section 20636 [c][41) as additional compensation.
• The effective date of this Resolution shall be April 16, 2017.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the CITY OF
COSTA MESA elects to pay and report the value of EPMC, as set forth above.
PASSED AND ADOPTED this 18th day of April, 2017.
Katrina Foley, Mayor
ATTEST:
Brenda Green, City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
Thomas Duarte, City Attorney
I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above
and foregoing is the original of Resolution No. 17-_ and was duly passed and adopted by the
City Council of the City of Costa Mesa at a regular meeting held on the 18th day of April, 2017,
by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa
Mesa this 19th day of April, 2017.
BRENDA GREEN, CITY CLERK
(SEAL)