Staff report Non bargaining EEs 3-26-13
CITY OF ATLANTIC BEACH
CITY COMMISSIONER MEETING
STAFF REPORT
AGENDA ITEM: Non bargaining employees’ benefits
SUBMITTED BY: Jim Hanson
DATE: March 26, 2013
STRATEGIC
PLAN OBJ: Goal # 1 Union Negotiations From 2012-13 Strategic Plan
BACKGROUND: The agenda for the special meeting on April 8th includes two subjects; resolving the impasse
with the LIUNA Union and making a decision on the pension and benefits for non-union employees. Benefits for the third group, the Police Union, have already been resolved by the approval
of the contract with the PBA. This staff report is to address the non-union employees.
One of the Strategic Plan Objectives for 2012/2013
is to provide a balance of pension plans and other employee benefits that are fair to existing employees, and enable the City to recruit highly qualified applicants to provide the necessary
services, and that are sustainable from a cost standpoint in the long term. Like many cities in Florida, the City of Atlantic Beach has experienced declining revenues and increasing
costs. Ad valorem tax revenues have declined over many years while pension costs and the unfunded liability have risen.
Keeping in mind the City’s financial positions and the commission’s
directions as established through several SHADE meetings, these are the recommended changes to the non bargaining employees’ benefits.
Personal Leave:
The maximum number of personal
leave hours which may be accrued and carried forward to the following fiscal year should be set at 680 hours. Within thirty (30) calendar days from the effective date of the commission
decision, any employee who has exceeded the limit of 680 hours will receive a buyout of accrued personal leave for all hours that exceed the new maximum accrued limit of 680 hours.
Thereafter, the maximum number of personal leave hours which may be accrued and carried forward to the following fiscal year should be 680 hours. Employees should make every attempt
to schedule and use their personal leave prior to the end of each fiscal year. Failure to use their personal leave time will result in forfeiture on October 1 of each fiscal year of
any time that exceeds the 680 hour limit. The City Manager should have the authority to waive this limit when it was not possible for employees to take their leave due to scheduling
constraints imposed by the City. For example, an employee who was denied approval to take some time off near the end of the year because of other vacancies that they had to cover for
should not be penalized.
Bi-annual leave sell back will be eliminated. Eligible employees who resign with at least two (2) weeks’ prior written notice of resignation to the City Manager, are laid off, or
who retire should be paid for up to 680 unused personal leave hours as follows:
Employees hired by the City before April 8, 2013, with ten (10) or more years of completed service
on the date their employment ends shall be paid out 100% of the personal leave hours accrued (up to a maximum of 680 hours).
Employees hired by the City before April 8, 2013, with less
than ten (10) years of completed service on the date their employment ends should be paid out 50% of personal leave hours accrued (up to a maximum of 680 hours).
Employees hired by
the City on or after April 8, 2013, should be paid out 50% of personal leave hours accrued (up to a maximum of 680 hours).
A proposed amended personal leave accrual schedule is
attached.
Longevity:
Eliminate Longevity Pay. Effective 04/27/2013 longevity pay should be eliminated as a benefit; however, employees receiving longevity pay on such date should
have their base pay enhanced by a prorated amount of $5.00 per month per each year of completed service up to a maximum amount of $100 per month for twenty (20) or more completed years
of service.
Pension:
Increase contribution rates to defined benefit retirement (“DBR”) plan to 6% for those employees hired before September 1, 2008.
Move all employees
hired on or after September 1, 2008, and all new employees to a defined contribution (“DC”) plan with the City putting an amount equaling twice their employee contribution to date, with
interest, into the new DC plan in their name. In the future, provide that the City match up to 6% during the first 10 years of service, and thereafter the City provide an additional
4% contribution (non-matching); and further provide that the employees covered by the defined contribution plan shall be vested at 5 years of service.
BUDGET: If approved, funding
for this action will be included in a future budget modification as necessary. Cost estimates for these benefit levels for all general employees, both union and non-union, have been
provided to the commission in recent months.
RECOMMENDATION: That the City Commission approve the above recommended changes to the non bargaining employees’ benefits and authorize
the City Manager to make the related necessary changes to the Personnel Manual.
REVIEWED BY CITY MANAGER: _________________________________________
PROPOSED PERSONAL LEAVE ACCRUAL SCHEDULE
Years of Service
Hrs. Per Pay Period
Total Annual Hours
1st
Year
4.62
120.00
1 yr. 1 day thru 3rd year
5.54
144.00
4 yrs. 1 day thru 5th year
6.15
160.00
6 yrs. 1 day thru 7th year
6.77
176.00
8 yrs. 1 day thru 10th year
7.69
200.00
1
1 yrs. 1 day thru 12th year
8.31
216.00
13 yrs. 1 day thru 14th year
8.92
232.00
15 years or more
9.54
248.00