HomeMy WebLinkAboutAgenda Report - March 21, 2012 C-08AGENDA ITEM C
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CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution Approving Benefit Modifications for Council Appointees and
Executive Management and authorizing the execution of agreements with
Council Appointees and Executive Management incorporating the benefit
modifications; and Further Authorizing Outside Counsel to Draft Council
Appointee (City Attorney) Employment Agreement
MEETING DATE: March 21,2012
PREPARED BY: Human Resources Manager
Deputy City Attorney
RECOMMENDEDACTION: Adopt resolution approving benefit modifications for Council
Appointees and Executive Management and authorizing the
execution of agreements with Council Appointees and Executive
Management incorporating the benefit modifications; and further
authorizing outside Counsel to draft Council Appointee (City
Attorney) employment agreement.
BACKGROUND INFORMATION: Based on direction of Council, staff recommends continuation or
modification to the current salary and benefits of Council
Appointees and Executive Management, as follows:
• Council Appointees and Executive Management will continue to pay 7 percent of the employee's
share of retirement benefits (originally approved by Council as a concession on June 1, 2011).
• Council Appointees and Executive Managementwill pay 100 percent of the change in medical costs
beginning January 1, 2013. Baseline will be the January 2012 lowest cost PERS HMO for the
employee's family category (Family, $1,587.14; Employee+1, $1,220.88; Single, $610.44).
• City will eliminate the employee co -pay for medical insurance (currently $80 and $104 for employee
+ 1 and family coverage, respectively) beginning the first pay period 14 days after Council approval
of the proposed resolution.
• City will restore a match, up to a maximum of 3 percent of salary, to the Deferred Compensation
contributions made by Council Appointees and Executive Management effective June 25, 2012.
• City will restore the ability of Council Appointees and Executive Management to cash -out up to 40
hours of Administrative Leave effective January 1, 2013.
• City will standardize sick leave accrual in the amount of 3.70 hours per pay period for all Council
Appointees and Executive Management.
• City will standardize vacation leave accrual for those Council Appointees and Executive Managers
currently accruing vacation leave at 4.62 hours per pay period as follows: Vacation leave will
accrue at 4.62 hours per pay period (equivalent to five full years of service), with future leave to be
accrued according to the Executive Statement of Benefits, with the employee's sixth year of service
equal to the 12"' year, the ninth year of service equal to the le year, and so on, as set forth in the
Executive Statement of Benefits.
Bartlam, City Manager
Authorization is also sought authorizing the drafting and execution of agreements with Council
Appointees (City Manager and City Clerk) and Executive Management incorporating the foregoing
benefit modifications.
Further, authorization is sought to retain outside counsel, namely, Kronick, Moskovitz, Tiedemann &
Girard, to draft the City Attorney's employment agreement for the purpose of avoiding any conflict of
interest.
FISCAL IMPACT: It is estimated that these benefit modifications will save the City $220,500 over
the next two calendar years.
FUNDING AVAILABLE: Necessary funding will be included in each fiscal year budget.
Jordan Ayers;
Deputty Manager/ to nal Se ices Director
Dean Gualco
Human Resources Manager
a 'ce D. Ma ich
Dep ttorney
RESOLUTION NO. 2012-26
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
BENEFIT MODIFICATIONS FOR COUNCIL APPOINTEES AND
EXECUTIVE MANAGEMENT EMPLOYEES AND AUTHORIZING
THE DRAFTINGAND EXECUTION OF EMPLOYMENT
CONTRACTS; AND FURTHER AUTHORIZING OUTSIDE
COUNSEL TO DRAFT COUNCIL APPOINTEE (CITY ATTORNEY)
EMPLOYMENTAGREEMENT
WHEREAS, it is recommended that Council approve the continuation or
modification to current salary and benefits for Council Appointees (City Attorney, City
Manager, City Clerk) and Executive Management employees (Public Works Director,
Library Director, Chief of Police, Fire Chief, Deputy City Manager, Parks & Recreation
and Cultural Services Director, and Electric Utility Director) as follows:
• Council Appointees and Executive Management will continue to pay
7 percent of the employee's share of retirement benefits (originally approved
by Council as a concession on June 1, 2011);
• Council Appointees and Executive Management will pay 100 percent of the
change in medical costs beginning January 1, 2013. Baseline will be the
January 2012 lowest cost PERS HMO for the employee's family category
(Family, $1,587.14; Employee+1, $1,220.88; Single, $610.44);
• City will eliminate the employee co -pay for medical insurance (currently $80
and $104 for employee + 1 and family coverage, respectively) beginning the
first pay period 14 days after Council approval of this resolution;
• City will restore a match, up to a maximum of 3 percent of salary, to the
Deferred Compensation contributions made by Council Appointees and
Executive Management effective June 25, 2012;
• City will restore the ability of Council Appointees and Executive Management
to cash -out up to 40 hours of Administrative Leave effective January 1, 2013;
• City will standardize sick leave accrual in the amount of 3.70 hours per pay
period for all Council Appointees and Executive Management; and
• City will standardize vacation leave accrual for those Council Appointees and
Executive Managers currently accruing vacation leave at 4.62 hours per pay
period as follows: Vacation leave will accrue at 4.62 hours per pay period
(equivalent to five full years of service), with future leave to be accrued
according to the Executive Statement of Benefits, with the employee's sixth
year of service equal to the 12th year, the ninth year of service equal to the
15th year, and so on, as set forth in the Executive Statement of Benefits.
WHEREAS, it is recommended that the Lodi City Council authorize the drafting
and execution of Employment Agreements with Council Appointees (City Manager and
City Clerk) and Executive Management employees incorporating the foregoing benefit
modifications: and
WHEREAS, in order to avoid a conflict of interest, it is further recommended that
the City Attorney's employment agreement be drafted by outside counsel, namely,
Kronick, Moskovitz, Tiedemann & Girard.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve the continuation or modification to the current benefits for Council Appointees
and Executive Management employees as outlined above; and
BE IT FURTHER RESOLVED that the Lodi City Council hereby authorizes the
drafting and execution of Employment Agreements with Council Appointees (City
Manager and City Clerk) and Executive Management employees incorporating the
foregoing benefit modifications; and
BE IT FURTHER RESOLVED that the law firm of Kronick, Moskovitz,
Tiedemann & Girard be retained to draft the employment agreement for Council
Appointee (City Attorney), incorporating the foregoing benefit modifications.
Date: March 21, 2012
I hereby certify that Resolution No. 2012-26 was passed and adopted by the Lodi
City Council in a regular meeting held March 21, 2012, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Katzakian, and
Nakanishi
NOES: COUNCIL MEMBERS— Mayor Mounce
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
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R.ROBISON
Assistant City Clerk
2012-26