HomeMy WebLinkAboutStaff Report 3.A 10/16/2017Agenda Item #3.A
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DATE: October 16, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Amy Reeve, Director of Human Resources
SUBJECT: Resolution Acknowledging Agreement between the City Council of the City of
Petaluma and All Unrepresented Unit 8 Employees and All Unrepresented
Executive Management Employees of the City to Contribute 3% toward the
City's Cost of Participation in the Public Employees Retirement System
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Acknowledging
Agreement between the City Council of the City of Petaluma and All Unrepresented Unit 8
Employees and All Unrepresented Executive Management Employees of the City to Contribute
3% toward the City's Cost of Participation in the Public Employees Retirement System.
BACKGROUND
To permit an Amendment to the Ca1PERS contract and classify employee contributions
appropriately, the attached Resolution and Executive Management Employee contract
Amendments must be submitted to Ca1PERS showing unanimous agreement on a contract
Amendment for unrepresented employees. These documents must be submitted prior to the
Amendment of the existing contract.
DISCUSSION
In recent years, the City has come to agreement with Units 4, 9 and 11 of the Petaluma
Professional and Mid - Managers Association ( PPMMA), and Units 1,2 and 3 of the American
Federation of State, County and Municipal Employees (AFSCME) on an increase in the amount
of contribution by individual employees to the PERS Employer Contribution. The change in
contribution is intended to combat rising retirement costs. The agreement with AFSCME and
PPMMA results in employees contributing 3% to the Employer Contribution, on top of the
amount contributed toward the Employee Contribution, for a total employee contribution of 10%
for Classic employees and 9.25% for PEPRA employees.
Following approval of the resolution, the City will request an amendment to the CalPERS
contract which will include an additional 3% employee contribution for Unit 8 (Department
Directors), and the three executive management employees under employment contracts with the
City. The amendment will also include Unit 10, Petaluma Public Safety Mid - Management
Association, which was previously approved by the City Council.
FINANCIAL IMPACTS
The estimated cost for Unit 8 (including the 3 executive contract employees) is $3,039.47.
The estimated cost for Unit 10 is $6,127.65. Although the City is providing a 3% salary offset in
exchange for the employee pick -up to PERS, the PERS amendment will bring a degree of
permanence to the cost sharing agreement and will help to control costs in the long -term.
ATTACHMENTS
1. Resolution
2. Exhibit A to Resolution: Acknowledgement of Agreement to Pay 3%
3. Exhibit B to Resolution: City Manager's Contract Amendment
4. Exhibit C to Resolution: City Clerk's Contract Amendment
5. Exhibit D to Resolution: City Attorney's Contract Amendment
N
Exhibit A
Resolution No. 2017 -XXX N.C.S.
of the City of Petaluma, California
Acknowledging Agreement between
the City Council of the City of Petaluma and All Unrepresented Unit 8 Employees
and All Unrepresented Executive Management Employees of the City to
Contribute 3% toward the City's Cost of Participation in the Public Employees
Retirement System
WHEREAS, the City and its employees have since October 18, 1959, participated in the
California Public Employees Retirement System ( "CalPERS ") pursuant to a contract between the
City and CalPERS ( "Contract ") in accordance with the State Public Employees Retirement Law
( "PERL "); and
WHEREAS, the unrepresented employees in Unit 8 and the unrepresented executive
management employees of the City have all agreed to pay 3% toward the City's employers' cost
of participation in CalPERS, in accordance with Section 20516 of the PERL; and
WHEREAS, all unrepresented Unit 8 employees and all unrepresented executive
management employees of the City have agreed to contribute the 3% cost share, irrespective of
whether such employees are designated as "Classic" or "PEPRA" participants in CalPERS, as
evidenced by a list of unrepresented Unit 8 employee signatures acknowledging the Unit 8
Compensation Plan and the signed executive management employment contract amendments,
which are attached to and made a part of this Resolution as Exhibit A;
NOW, THEREFORE, be it resolved by the City Council of the City of Petaluma as
follows;
1. The City Council hereby acknowledges the agreement between the City Council and
all unrepresented Unit 8 employees and all unrepresented executive management
employees to contribute 3% toward the City's cost of participation in CalPERS, as
evidenced by the employee signatures in Exhibit A.
2, The City Council hereby authorizes and directs the Human Resources Director or her
designee to request an amendment to the City's contract with CalPERS to reflect the
3% employee cost share for all unrepresented Unit 8 employees and all unrepresented
executive management employees, including all "Classic" and "PEPRA" employees.
Under the power and authority conferred upon this Council by the Charter of said City,
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the _ day of form:
2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
ATTEST:
City Clerk
Mayor
City Attorney
EXHIBIT A — Unrepresented Unit 8 Employees
Acknowledgment of Agreement to pay 3% toward City of Petaluma's PERS Cost
Scott Brodhun, Assistant City Manager
Jordan Forghani, Assistant City Attorney
William Mushallo, Director of Finance
Amy Reeve, Director of Human Resources
Kenneth Savano, Police Chief
Dan St, John, Director of Public Works & Utilities
Lisa Tennenbaum, Assistant City Attorney
Leonard Thompson, Fire Chief
Exhibit B
FIFTH AMENDMEN)[' TO TUF AT -WILL
AGREEMENT FOt.EMPLOYMENT OF CITY MANAGER
This Amendment is made and entered into this __��day of September 2017, by and between
the City of Petaluma, California, a charter city, ( "the CITY "') and John C, Brown ( "City ,
Manager "), The City and the City Manager do hereby agree to amend the Agreement as provided:
Section 9, "Compensation ", paragraphi (a), is amended to read as follows:
9. Compensation:
a._ Base Salary. City agrees to pay City Manager an annual base salary of $216,320,
payable in installments at the same time that the other-employees of the CITY are paid.
Effective the first payroll following the adoption of a contract amendment with CalPERS
and concurrent with City Manager paying an additional three percent (3 %) towards PERS
retirement, City Manager shall receive a 3% bash wage increase and shall be paid an
annual base salary of $222,810.
2. The introductory paragraph in Section 15, "Administrative Leave," and paragraph (a) in
that same section, are amended to read as follows:
15. Administrative Leave,
City Manager shall be credited with one hundred twelve (112) hours of administrative
leave each fiscal year.
a. Carry Forward of Leave. City Manager may carry forward up to forty (40) hours
of unused administrative leave into the next fiscal year. City Manager may not maintain
balances of more than one hundred and fifty two (152) hours in any fiscal year. Carry
forward administrative leave may only be taken as paid time off', has no cash value, and
shall not be, included in the totals suhiect to payment under Section � (d).
3. Section 18, Disability, Health; and Life Insurance, paragraph (c), is amended to read as
follows:
1.8. Disability, Health, and Life Insurance:
c. CITY agrees to have in force and make required premium payments for City
.Managee&4 adiieipadmi-in -t e- CITY- 's_ciurent_ group_- lisahilityqalarL-CuiTpiitl_yJ:hat Plan -is-
provided through CIGNA, and replaces 60% of annual earnings, to a maximum of $5,000
per month after being disabled, for sixty (60) days.
d. Section 19, "Retirement ", paragraph (f), is added to read as follows:
19. Retirement:
f. Effective the first payroll following the adoption of a contract amendment with
CalPERS, City Manager shall pay an additional three percent (3 %) towards PERS
retirement. The City Manager is a "Classic" employee, and this three pereent(3 %) is added
to the current seven percent (7 %) employee share, for a total contribution of ten percent
(10 %). The parties shall work collaboratively to expedite formal adoption of a contract
amendment with CaIPERS to reflect this cost - sharing agreement under which the
employee is paying a portion of the employer contribution to PERS, .
5, EXHIBIT 1, "HEALTH- RT;I.A'f'ED,BENEFITS ", Item 11, "Vision insurance" is amended
to read as follows:
11, Vision Insurance
CITY shall provide a vision plan for City Manager and eligible dependents, The cost shall
be paid for by the City. City Manager and his eligible dependents are eligible for eye
exams every twelve (12) months with a twenty -five ($25.00) deductible, Frames are
available every twelve (12) months with a maximum benefit of one - hundred- eighty
dollars ($180,00), standard lenses are available every twelve months at 100 percent of
cost, progressive lenses are available every'12 months with a $55 -175 co -pay, medically
necessary contact lenses are available every 12 months at' 100 percent of cost, and cosmetic
contact lenses are available every twelve (12) months up to a maximum allowance of one
hundred -eight dollars ($180)•
Except as otherwise stated herein, all other terms of the Agreement remain in full force and effect,
CITY MANAGER
John C, Brown, City Manager
•rTESr;
Claire (;Doper, city Clerl< --
APPROV AS C DORM:
Eric W. Danly, City ttorney�
CITY
By;
David Glass, Mayor
DATED; Po c�'lG
■
FIRST AMENDMENT TO THE FIFTH AMENDED AT -WILL
AGREEMENT FOR EMPLOYMENT OF CITY CLERK
This Amendment is made and entered into this 1811, day of September 2017, by and between the
City of Petaluma, California, a charter city, ( "the CITY ") and Claire Cooper ( "City Clerk "), The
City and the City Clerk do hereby agree to amend the Fifth Amended At -Will Agreement for
Employment of City Clerk ( "Agreement ") in accordance with the following;
1. Paragraph (a) of Section 9, "Compensation," Is amended to read as follows;
9, Compensation;
a. Base Salary. City agrees to pay City Clerk an annual base salary of $95,591.00,
payable in installments at the same time that the other employees of the CITY are paid,
Effective the first payroll following the adoption of a contract amendment with CalPERS
and concurrent with City Clerk paying an additional three percent (3 %) towards PERS
retirement, City Clerk shall receive a 3% base wage increase and shall be paid an
annual base salary of $98,458,73,
2. Paragraph (a) of Section 17, "Retirement," is amended to read as follows;
17. Retirement;
a, California Public Employees Retirement System. City has previously enrolled City
Clerk into the California Public Retirement System (PERS). City agrees to make all the
appropriate contributions on City Clerk's behalf for the employer share required. City
Clerk shall pay the entire contribution for the PERS employee share required. Effective
the first payroll following the adoption of a contract amendment with CaIPERS, City Clerk
shall pay an additional three percent (3 %) towards PERS retirement, The Parties shall work
collaboratively to expedite formal adoption of a contract amendment with CalPERS to
reflect this cost- sharing agreement under which the employee is paying a portion of the
employer contribution to PERS.
Except as otherwise amended hereby, all other terms of the Agreement remain unchanged arid
in full force and effect,
CITY CLERK
CITY
By: _
By:
Claire Cooper, City lerkj
DATED; _q/ ��0/ �,'
ATTEST;
John C, Brown
Deputy City Clerk
David Glass, Mayor
DATED;
APP ED T FORM;
Eric W, Danly
City Attorney
Exhibit C
Exhibit D
FIRST AMENDMENT TO THE FIRST RESTATED AT -WILL
AGREEMENT FOR EMPLOYMENT OF CITY ATTORNEY
This Amendment is made and entered into this 181h day of September 2017, by and between the City of
Petaluma, California, a charter city, ( "the CITY ") and Eric Danly ( "City Attorney "). The City and the City
Attorney do hereby agree to amend the First Restated At -Will Agreement for Employment of City
Attorney ( "Agreement ") in accordance with the following:
1. Paragraph (a) of Section 5, "Compensation," is amended to read as follows:
5. Compensatian:
U The City agrees to pay City Attorney an annual base salary of $192,920.00, payable In
installments at the same time that the other employees of the CITY are paid. Effective the first
payroll following the adoption of a contract amendment with CaIPERS and concurrent with City
Attorney paying an additional three percent (3 %) towards PERS retirement, City Attorney shall
receive a 3% base wage increase and shall be paid an annual base salary of $198,,707,60,
2. Section 11, "Retirement," is amended to read as follows:
11. Retirement:
a. City has previously enrolled City Attorney Into the California Public Retirement System
(PERS). City agrees to make all the appropriate contributions on City Attorney's behalf, for the
employer share required, and to contribute on behalf of City Attorney seven percent (7 %) of
City Attorney's base salary in accordance with Section 5 of the Agreement, as amended from
time to time, into the City of Petaluma 401 (A) Government Money Purchase Plan and Trust, City
Attorney shall pay the entire contribution for the PERS employee share required. Effective the
first payroll following the adoption of a contract amendment with CaiPERS, City Attorney shall
pay an additional three percent (3 %) towards PERS retirement. The parties shall work
collaboratively to expedite formal adoption of a contract amendment with CalPERS to reflect
this cost - sharing agreement under which the employee is paying a portion of the employer
contribution to PERS.
Except as otherwise amended hereby, all other terms of the Agreement remain unchanged and in full
force and effect.
CITY ATTOR
By: \_ s/
Eric Danly, fit Attornoy
DATED: — 6� -. - --
ATTEST:
Claire Cooper, City Clerk
CITY
By:
David Glass, Mayor
DATED:
APPRQYE f A8 VT1'ZORM:
Lisa Tenne aum
Assistant City Attorney