HomeMy WebLinkAbout2011 CC RESO 2011-15 CDCRESOLUTION 2011 — 15
RESOLUTION OF THE RESOLUTION OF THE COMMUNITY
DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY (CDC)
IN RECOGNITION OF CONCESSIONS MADE BY EXECUTIVE AND
MANAGEMENT EMPLOYEE GROUPS IN THE FORM OF A FULL
8% EMPLOYEE PAID CONTRIBUTION TO RETIREMENT, A TWO -TIERED
RETIREMENT FORMULA AND A VACATION ACCRUAL CAP OF
THREE TIMES THE ACCRUAL RATE, A RESOLUTION AUTHORIZING
A ONE-TIME PERFORMANCE AND RETENTION INCENTIVE PAYMENT
OF 3% FOR ELIGIBLE EMPLOYEES IN THE EXECUTIVE AND
MANAGEMENT GROUPS (EXCEPT THE CDC'S GENERAL COUNSEL)
IN LIEU OF INCREASES IN BASE SALARY, AND APPROVING
THE TRANSFER OF $18,923 FROM THE TAX INCREMENT FUND TO
THE PERSONNEL COMPENSATION FUND FOR SAID PAYMENT
WHEREAS, in recognition and support of the Community Development
Commission of the City of National City's (CDC's) efforts to control on -going expenses related to
employee salaries and benefits, employees serving in the Executive and Management groups
agreed to make employee contributions to the Public Employees Retirement System (PERS)
and to forego salary increases, with one salary increase granted over a ten year period; and
WHEREAS, on July 1, 2011, the percentage of the employee contribution to
PERS for the executive and management groups will increase to 8%, which is the full employee
contribution as allowed under PERS; and
WHEREAS, given fiscal constraints, staffing levels have been reduced, and
programs and departments have been consolidated. Throughout, executives and managers
have continued to provide a high level of service to the residents of National City while striving
to create efficiencies, achieve cost savings, and generate new sources of revenue; and
WHEREAS, since calendar year 2002, employees of these two groups have
received one cost of living adjustment with a commitment to no additional salary increase over a
ten year period; and
WHEREAS, a one-time performance and incentive payment of 3% is requested
in recognition of the efforts of the employees represented by the Executive and Management
group, excepting the CDC's General Counsel; and
WHEREAS, a transfer of funds in the amount of $18,923 from the Tax Increment
Fund to the Personnel Compensation Fund is necessary to fund said payment.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the following transfer of funds:
FROM:
TO:
Account No. 511-409-000-099-0000
Tax Increment Fund
Account No. 212-00000-3999
Personnel Compensation Fund
Resolution No. 2011 — 15
Page 2
TOTAL AMOUNT: $18,923
PURPOSE:
To fund a one-time performance and retention incentive
payment to eligible employees of the Executive and
Management Employee Groups.
BE IT FURTHER RESOLVED that a one-time performance and retention
incentive payment is hereby granted to eligible employees in the Executive and Management
Groups, as set forth in the attached Exhibit "A".
PASSED and ADOPTED this 25th day of January, 2 11.
Ron Morrison, Chairman
APPROVED AS TO FORM:
is G. Silv
General Cou
CITY OF NATIONAL CITY
MEMORANDUM
DATE: January 25, 2011
TO: Honorable Chairman and Commissioners
FROM: Chris Zapata, City Manager
SUBJECT: Staff Report: Resolution of the Community Development of the City of National
City: in recognition of concessions made by Executive and Management
employee groups in the form of a full eight percent employee paid contribution to
retirement, a two tiered retirement formula and a vacation accrual cap of three
times the accrual rate a resolution authorizing a one-time performance and
retention incentive payment of three percent to eligible employees in the
Executive and Management groups (excepting the City Attorney) in lieu of
increases in base salary, and approving a transfer of $18,923 from the Tax
Increment Fund to the Personnel Compensation Fund for said payment.
In recognition and support of the City's efforts to control on -going expenses related to employee
salaries and benefits, employees serving in the Executive and Management groups agreed to
make employee contributions to the Public Employees Retirement System (PERS) and to forego
salary increases, with one salary increase granted over a ten (10) year period.
Given the City's fiscal constraints, staffing levels have been reduced, and programs and
departments have been consolidated. Throughout, executives and managers have continued to
provide a high level of service to the residents of National City while striving to create
efficiencies, achieve cost savings and generate new sources of revenue. In keeping with these
principles and practices, salaries for these two groups have held relatively constant. Since
calendar year 2002, employees of these two groups have received one cost of living adjustment,
with a commitment to no additional salary increases over a ten year period.
In addition to salary freezes, other concessions made by the Executive and Management groups
include the following:
• The 34 employees comprising the Executive and Management groups contribute six
percent (6%) and five percent (5%), respectively of the employee contribution to PERS,
totaling savings of $180,000, annually.
Exhibit A
Honorable Chairman and Commissioners
Staff Report: Resolution to Authorize a One -Time Stipend for Executives and Managers
January 25, 2011
Page 2
• On July 1, 2011, the percentage will increase to eight percent (8%), which is the full
employee contribution as allowed under PERS. As such, these will be the first two
groups, along with the elected officials to reach the full employee contribution. In total,
the Executive and Manager contributions to PERS will result in on -going savings of more
than $260,000 ($180,000 in fiscal year 2010/2011 and an additional $80,500 in fiscal
year 2011/2012, rounded).
• On January 11, 2011, the City Council took action to create a second tier retirement
formula for miscellaneous employees, including Executives and Managers. Under the
second tier, employee hired into the City on or after the change is effected will receive a
retirement benefit of 2% @ 60, instead of the current 3% @ 60. With that, new
Executives and Managers will pay the full eight percent (8%) retirement contribution and
receive a lesser retirement benefit.
• As a next step, a vacation accrual cap will be established for members of the Executive
group. All other employee groups have vacation leave accrual caps, including the
Management group. Vacation accrual caps serve to control the City's unfunded liability.
Vacation time can be cashed out periodically each year and/or cashed out at separation.
Vacation may be accrued at one rate of pay and, by the. time the employee cashes it out, it
may have increased in value as it is cashed out at the employee's current rate of pay. The
accrual caps limit the City's fiscal exposure. The Executive group cap will be equal to
three times the accrual rate or 360 hours in the first ten years of employment and 480
hours after ten years.
Recommendation:
In light of the above, the City Manager requests City Council approval of a two percent (2%)
stipend for 2011 and a one percent (1%) stipend for 2012, for a total three percent (3%) one time
stipend for an eighteen month period, effective immediately for members of the Executive and
Management groups, excepting the City Attorney. Stipends have been used by the City of
National City as an effective means of recognizing and retaining personnel without creating on-
going fiscal obligations for the City.
Passed and adopted by the Community Development Commission of the City of
National City, California, on January 25, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secr:(jY�""' ity Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-15 of the Community Development Commission of the City of
National City, California, passed and adopted on January 25, 2011.
Secretary, Community Development Commission
By:
Deputy