HomeMy WebLinkAboutItem 2b: Resolution No. 6863 - Ratifying Special Pay COLA .ROPER MINA
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DATE: March 19, 2013
TO: Honorable Mayor and City Council
STAFF REPORT
Administrative Services Department
FROM: Hue C. Quach, Administrative Services Director
By: Heather McDowell, Senior Human Resources Analyst
SUBJECT: RESOLUTION NO. 6863 CONFIRMING THE CITY COUNCIL'S PRIOR
APPROVAL OF COST OF LIVING INCREASES TO CERTAIN
SPECIALTY PAY ITEMS FOR CITY EMPLOYEES
Recommendation: Adopt
SUMMARY
The City of Arcadia has contracted with the California Public Employees' Retirement
System (CaIPERS) since 1945 to provide retirement benefits for eligible City
employees. In order to calculate what may be included under the Government Code as
reportable compensation for retirement benefits, CaIPERS looks at an employee's base
pay and special compensation.
After adoption of the City's labor agreements in 2011, it was determined that the
language failed to address certain reportable special compensation items that were
impacted by the annual cost of living increases (COLAs) in the agreements. On
October 4, 2011, the City Council met in closed session and directed staff to apply the
COLAs to certain special compensation items as well as base pay. Adoption of
Resolution No. 6863 would formalize this direction.
It is recommended that the City Council Adopt Resolution No. 6863 ratifying the City
Council's previous direction to apply COLA's to the various special pay categories.
DISCUSSION
Over the three year terms of the current Memorandums of Understanding (MOUs), all
City employees will transition from paying none of their own pension costs to paying the
full cost allowed under the CaIPERS system. It was the City Council's intention to
provide an "offset" that would have a net zero effect on take home pay for employees by
establishing an annual COLA increase in the MOUs. While this would not save the City
Resolution No. 6863
March 19, 2013
Page 2 of 3
any money in the short term, over time, it will create significant cost savings for the
organization. Due to an oversight, the adopted resolutions only established the COLA
increases for base salaries and did not include special pay items such as bilingual,
longevity, training, and uniform pay. It was the City Council's intention to include these
in the MOUs and employees are receiving COLAs on specialty pay items today based
on direction received at a Closed Session Meeting in October 2011. Adopting
Resolution No. 6863 will formalize this current practice. It is necessary and appropriate
to formally amend the MOUs to include the COLA on specialty pay so that there is an
accurate and transparent record of employee compensation in the City.
FISCAL IMPACT
Adoption of the resolution will not have an effect on the City's budget. Funding for the
additional special compensation amounts has previously been included in the adopted
FY 2011 -12 and FY 2012 -13 Budgets. The City Council previously approved COLAs to
City employees effective July 1, 2011, July 1, 2012, and July 1, 2013 at 2.34% for
Miscellaneous employees and 3% for Safety employees for bilingual, training and
uniform pay and 3% for longevity pay. The table below shows the total cost of the
benefits.
Cost Per Employee
Annualized Cost
Special Comp Items
Receiving Special
(assuming 3%
Compensation
increase)
Bilingual Pay
Per Pay Period:
FY2011 -12: $1,094
$34.62 ACEA/APCEA
ACEA/APCEA $0.81
FY2012 -13: $1,066
$46.15 APOA
APOA $1.38
FY2013 -14: $1,098
Longevity
Amounts based on years of service
$30 -60 annually
FY2011 -12: $9,354
FY2012 -13: $9,895
FY2013 -14: $10,192
Training Pay
$50 per pay period
Per Pay Period:
FY 2011 -12: $ 52
Non - Safety $1.17
FY2012 -13: $112
Safety $1.50
FY2013 -14: $115
Uniforms
Annual Increase:
Amounts vary based on bargaining unit
ACEA $ 2.34
FY 2011 -12: $2,479
and position
AFFA $18.00
FY2012 -13: $2,708
Fire Mgmt $36.00
FY2013 -14: $2,789
APOA $17.76
PD Mgmgt $22.50
APWEA $ 3.56
Total
FY 2011 -12: $12,979
FY 2012 -13: $13,781
FY 2013 -14: $14,194
Resolution No. 6863
March 19, 2013
Page 3 of 3
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 6863 confirming the City
Council's prior approval of cost of living increases to certain specialty pay items for City
employees.
Approved
Dominic Lazzare�t
City Manager
Attachment: Resolution No. 6863
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, CONFIRMING THE CITY COUNCIL'S
PRIOR APPROVAL OF COST OF LIVING INCREASES TO CERTAIN
SPECIALTY PAY ITEMS FOR CITY EMPLOYEES
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA DOES
SECTION 1. The City Council hereby approves application of the cost of living
increases provided to City Employees effective July 1, 2011 (2.34% Miscellaneous, 3%
Safety), July 1, 2012 (2.33% Miscellaneous, 3% Safety), and July 1, 2013 (2.33%
Miscellaneous, 3% Safety), to be applied to specialty pay items including Bilingual Pay,
Training Pay, and Uniform Allowances.
SECTION 2. The City Council approves application of a 3% cost of living
increase to be applied to Longevity Pay on July 1, 2011, July 1, 2012, and July 1, 2013.
The City Manager is hereby authorized and directed to execute side letter
agreements with the City's bargaining groups on behalf of the City in accordance
herewith.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
lassed, approved and adopted this day of 12013.
Mayor of the City of Arcadia
ATTEST:
City Clerk
"WANMEOWN
Stephen P. Deitsch
City Attorney