AgdaPkt 2012-12-03 - Laserfiche WebLink

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6.2.A. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er December 3, 2012 SUBJECT Amendment to the Executive Management/Confidential Summary of Benefits and Salary Plan RECOMMENDATION 1) By resolution, amend the Executive Management/Confidential Summary of Benefits dated July, 2011 to increase cost-sharing for retirement contributions effective January 1, 2014, implement freeze of salary ranges for 2013, and update covered classifications to reflect newly established and abolished classifications. 2) By resolution, amend the salary plan for Executive Management classifications to correct certain salary ranges to conform to the July 2011 salary survey. 3) By motion, implement a salary freeze for the Council-appointed positions of City Manager, City Clerk, and City Attorney for Fiscal Year 2012-2013. BACKGROUND As required by the Executive Management/Confidential Summary of Benefits Plan, on an annual basis the City performs salary surveys of the executive level and confidential classifications in the plan. The last survey that was conducted was to establish the annual salary ranges for the July 2011 fiscal year. Also in 2011, the City began its 3-prong budget balancing approach with one prong being labor concessions. As such, members of the executive group agreed to begin paying an additional 2.5% towards the California Public Employees Retirement System (CaIPERS) in 2012 and then an additional 2.5% toward CaIPERS in 2013. They also agreed to contribute more to the City sponsored health plans. The group did receive salary increases in the last fiscal year after two previous years of salary freezes. All of these efforts helped the City achieve its overall goal of $5.6 million in labor concessions over a 3 year period. ANALYSIS In consideration of the fact that the CaIPERS retirement system remains underfunded and future rate increases are highly volatile and unpredictable, the executive and confidential group has agreed to pay an additional 2% towards the CaIPERS system effective January of 2014. This will bring the total increase to the employee contribution to 7% over a 3 year period.