Staff Report - Revised Compensation and Benefits Plan for Unrepresented Confidential Employee Group
STAFF REPORT
Meeting Date: March 25, 2025
Agency: City of Belmont
Staff Contact: Laura Kirby, Human Resources Management Analyst, [email protected] Agenda Title: Revised Compensation and Benefits Plan for Unrepresented Confidential Employee Group
Agenda Action: Resolution
Recommendation
Adopt a resolution approving revisions to the compensation and benefit plan for the unrepresented and confidential employee group.
Strategic Focus Area
Fiscal and Organizational Sustainability
Background
Established in November 2023, the benefits plan for the unrepresented and confidential employee group formalizes the compensation and benefits offered to those outside collective bargaining and employment agreements. A key provision ensures wage and benefit alignment with the Mid-Management Confidential employee group.
Analysis
The Mid-Management Confidential Employee Association recently concluded labor negotiations, resulting in a four-year labor agreement. As part of this agreement, wage adjustments include:
• 4% salary increase effective January 5, 2025.
• Annual wage adjustments in January 2026 and 2027, based on the Consumer Price Index (CPI), with a minimum increase of 3% and a maximum of 5%.
• Annual wage adjustment in January 2028, based on Consumer Price Index (CPI), with a minimum increase of 3.5% and a maximum of 5%.
• July 2028 adjustment: Following a December 2027 salary survey conducted by the City, any classification that remains more than 4% below the median after the January 2028 wage increase will be adjusted to within 4% of the median.
The proposed revisions to the Compensation and Benefit Plan for Unrepresented Confidential Employees are limited to these wage adjustments, ensuring continued parity with the Mid-Management Confidential Employee Association.
Revised Compensation and Benefit Plan for Unrepresented and Confidential Employees - Staff Report Alternatives
1. Provide staff with alternative direction in whole or in part
2. Take No Action
Attachments
A. Resolution
B. Compensation and Benefits Plan for the Unrepresented Confidential Employee Group Fiscal Impact
☐ No Fiscal Impact
☒ Funding Source Confirmed:
The financial impact of the revisions to the compensation and benefit plan have been analyzed. The budget for the current fiscal year had included an assumption of overall personnel cost increases across labor groups and is sufficient to cover for the wage increase for the remainder of the current fiscal year for the Unrepresented and Confidential Employee group; therefore, no supplemental budget appropriation in FY 2024-25 is
required. Subsequent revisions to the Compensation and Benefit Plan as outlined above will be incorporated into the FY 2025-26 budget and long-term financial plan.
Source: Purpose: Public Outreach:
Staff Statutory/Contractual Requirement Posting of Agenda
RESOLUTION NO. 2025 –
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELMONT REVISING
THE COMPENSATION AND BENEFITS PLAN FOR THE UNREPRESENTED AND
CONFIDENTIAL EMPLOYEE GROUP
WHEREAS, the Compensation and Benefits Plan for the Unrepresented and Confidential Employee Group was initially established in November 2023 via Resolution 2023-096; and,
WHEREAS, the plan provides wage and benefit parity with the City’s MidManagement Confidential Employee Association ; and, WHEREAS, revisions have been made to the plan to maintain wage equity with the Mid-Management Confidential Employee Association, incorporating wage adjustments consistent with those recently negotiated for that group.
NOW, THEREFORE, the City Council of the City of Belmont resolves as follows: The revised Compensation and Benefits plan for the Unrepresented and Confidential Employee Group is hereby adopted effective March 25, 2025.
* * *
ADOPTED March 25, 2025 by the City of Belmont City Council by the following vote:
Ayes:
Noes:
Absent:
Abstain:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM:
City Attorney
1 COMPENSATION AND BENEFITS PLAN FOR THE CITY OF
BELMONT UNREPRESENTED AND CONFIDENTIAL GROUP
The following represents the compensation and benefits granted to the unrepresented and confidential group as authorized and approved by the City Council effective January 1, 2025.
DEFINITIONS
“Unrepresented and Confidential” as used herein refers to a group of full-time employees without formal labor representation for purposes of negotiation of employment terms and conditions. “Employee” as used herein means the unrepresented group.
GROUP DESIGNATION
The following job classifications are included in the unrepresented group:
Deputy Planning and Community Development Director
Information Technology Business Systems Analyst
Information Technology Manager
Payroll Manager
Principal Management Analyst
Newly established unrepresented and/or confidential classifications will be included in this category unless explicitly outlined in a distinct compensation and benefits plan. .
SALARY
For the purposes of salary increases the group will be afforded the same salary adjustments as established in the current Memorandum of Understanding between the City of Belmont and the Mid-Management/Confidential Employees Association.
Monthly salary ranges effective January 5, 2025 (4% Increase):
• January 4, 2026 – 3% to 5% - Increase based on the percentage change in the Consumer Price Index (CPI-U) as determined by the Bureau of Labor Statistics in the San Francisco Area (previously SFOakland-Hayward), October 2024 to October 2025 with a minimum increase of three percent (3%) and a maximum increase of five percent (5.0%).
Position Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Deputy Planning and Comm Dev Director $ 14,786.72 $ 15,526.06 $ 16,302.36 $ 17,117.48 $ 17,973.36 $ 18,872.03 IT Business System Analyst $ 11,869.55 $ 12,463.03 $ 13,086.17 $ 13,740.48 $ 14,427.50 $ 15,148.88 Information Technology Manager $ 13,197.18 $ 13,857.04 $ 14,549.89 $ 15,277.38 $ 16,041.25 $ 16,843.31 Payroll Manager $ 9,276.52 $ 9,740.35 $ 10,227.37 $ 10,738.74 $ 11,275.68 $ 11,839.46 Principal Management Analyst $ 12,098.32 $ 12,703.60 $ 13,339.04 $ 14,005.68 $ 14,705.60 $ 15,440.88 Exhibit A
2 • First full pay period in January 2027 – 3% to 5% - Increase based on the percentage change in the Consumer Price Index (CPI-U) as determined by the Bureau of Labor Statistics in the San Francisco Area (previously SF-Oakland-Hayward), October 2025 to October 2026 with a minimum increase of three (3%) and a maximum increase of five percent (5.0%). • First full pay period in January 2028 – 3.5% to 5% - Increase based on the percentage change in the Consumer Price Index (CPI-U) as determined by the Bureau of Labor Statistics in the San Francisco Area (previously SF-Oakland-Hayward), October 2026 to October 2027 with a minimum increase of three and one-half percent (3.5%) and a maximum increase of five percent (5.0%). • First full pay period of July 2028 - Classifications that are more than 4% below median after January 2028 increases will be moved to 4% below median. Adjustments based on December 2027 salary survey conducted by the City.
BENEFITS
457 Deferred Compensation
The City will contribute $335 per month for each employee into an Internal Revenue Code Section 457 deferred compensation account.
Hospital/Medical Plans
The City will participate in the Public Employees' Medical and Hospital Care Act (PEMHCA) medical plans, as administered by PERS. The City will provide each eligible employee who participates in a City sponsored medical insurance plan with the minimum employer contribution towards the purchase of medical insurance benefits required under the Public Employees' Hospital and Medical Care Act (PEMHCA).
Flexible Benefits Plan
The City will offer an Internal Revenue Code Section 125 Plan which contains the components of premium conversion, health care reimbursement account, dependent care reimbursement account, and cash option.
An employee may use Flexible Benefit Plan funds toward the cost of employer-provided health insurance for the employee and eligible dependents.
An employee may use Flexible Benefit Plan funds that may be taken as cash in lieu of medical plan premium contributions for health care reimbursement account, dependent care reimbursement account, or cash option in accordance with Plan procedures.
An employee eligible for alternative group medical insurance may waive the City's medical insurance coverage and select such alternate plan upon proof of such alternate coverage.
City Contribution
3 City will contribute an amount up to the current CalPERS Region 1 Health Premium for Kaiser Permanente Subscriber & 2+ Dependents ("City Contribution") which may be used as provided in Flexible Benefit Plan option cited above.
Cash Option
Employees may elect to receive cash as an option as follows. (1) Employees hired before October 1, 2012 ("Tier 1 Employee"). a. Tier 1 Employees may elect to receive in cash the difference of the City Contribution minus the premium amount of any health insurance plan elected, if the difference is greater than zero, up to a maximum monthly amount of $1,137.00.
b. A Tier 1 Employee who changes coverage status (i.e., from waiver to coverage, coverage to waiver, or increase/decrease in level of coverage) may elect to receive in cash the difference of the City Contribution minus the premium amount of any health insurance plan elected, if the difference is greater than zero, up to a maximum monthly amount of $600.00.
(2) Employees hired on or after October 1, 2012 ("Tier 2 Employee") who waive medical insurance coverage as provided in Section 16.2.1 may elect to receive in cash $389.94 per month.
Dental Plan. The City will contribute the full cost of dental coverage under a dental plan on behalf of the employee. The employee may elect to cover eligible dependents at a cost of $5 per month for an additional dependent and $10 per month for family coverage.
Employees in this group will receive the same benefit plan design as the Mid-Management Confidential Employees Association.
Life Insurance. The City will provide basic life and accidental death and dismemberment insurance to department head classifications in the amount of $75,000.
Long Term Disability Insurance. The City will provide Long Term Disability Insurance Coverage at no cost to the employee. The amount of insurance shall be based on sixty-six and twothirds percent (66-2/3%) of the employee's basic monthly earnings, reduced by any deductible benefits. The employee will pay the actual month cost of the premium on an after-tax basis.
Commuter Program. Employees may elect to participate in an Internal Revenue Service 132 pretax commuter and transit benefit offered by the City.
Vision Plan. The City will contribute a maximum of thirty dollars ($30) per month per employee to VSP vision plan. Employees in this group will receive the same benefit plan design as the MidManagement Confidential Employees Association. 4 RETIREMENT BENEFITS
Employees will receive the pension benefits as provided in the agreement between the City and Public Employees’ Retirement System (PERS) as adopted by Ordinance No. 1068 on November 27, 2012.
Those benefits are as follows.
(a) Classic/Legacy employees hired before December 28, 2012, receive a PERS retirement plan that includes the 2% at 55 formula for miscellaneous employees and the 3% at 50 formula for safety employees with a one year highest salary for determination of benefits.
The plan also includes: Credit for Unused Sick Leave, Industrial Disability Retirement, and the Fourth Level of 1959 Survivor Benefits. Miscellaneous employees make a 7% employee retirement plan contribution on a before-tax basis, and safety employees make a 9% employee retirement plan contribution in accordance with Internal Revenue Code Section 414 (h)(2).
(b) Classic/Legacy miscellaneous employees hired on or after December 28, 2012, receive a PERS retirement plan that includes 2% at 55 formula with three year average of salary for miscellaneous employees and a 3% at 55 formula with three year average of salary for safety employees.
(c) Effective January 1, 2013, miscellaneous employees who qualify as “New members” as the term is defined by the California Public Employees’ Pension Reform Act of 2013 (PEPRA) receive the benefits that are required by PEPRA, which include: a 2% at 62 formula for miscellaneous employees and a 2.7% at 57 formula for safety employees, three year average final compensation, employee contribution to be determined by Government Code Section 7522.30, and stricter limits on reportable compensation (referred to as “pensionable compensation” under PEPRA.).
Retiree Health and Dental Benefits
Retiree Health
(a) Retirees with Five Years of Service. An employee who retires from the City of Belmont in accordance with PERS regulations after five years of continuous employment with the City of Belmont is eligible to participate in the PERS health care plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA). The City will contribute to PERS the required employer contribution for such health plan participation. (b) Employees Hired before January 1, 2013. An employee hired before January 1, 2013, who retires from the City of Belmont in accordance with PERS regulations after 12 years of continuous employment with the City of Belmont will receive monthly reimbursement of the expenses he or she incurs for hospital and medical care premiums for their individual coverage only, up to a maximum of the amount paid by the City of Belmont for Employee only coverage under the Kaiser Health Care Plan.
(c) Employees hired on or after January 1, 2012 An employee hired on or after January 1, 2013, will receive the following benefits:
5 The City will participate in the CalPERS Health Plan as governed by the Public Employees’ Medical and Hospital Care Act (PEMHCA), and provide the minimum PEMHCA contribution for retirees as required by law.
Additionally, the City will contribute the following to a Retirement Health Savings (RHS) account based on the years of service with the City.
Years of Service Monthly Contribution
1-5 $150.00
6-10 $200.00
11-15 $250.00
16 and thereafter $300.00
Employees shall be vested in the Retiree Health Savings Plan after 10 years of continuous service with the City.
Retiree Dental
A retiree is entitled to participate in the City’s dental plan at their own cost.
LEAVES
Hours of Work: The standard work week for employees occupying full-time positions consists of forty (40) hours per week unless otherwise specified by the City. An alternate work schedule (9/80 or 4/10) may be approved by the City Manager. An employee requesting such an alternate schedule must submit a plan to the department head describing in detail the specific schedule and the anticipated impact on the City's operations. An employee requesting such an alternate schedule must submit a plan to the department head describing in detail the specific schedule and the anticipated impact on the City's operations. The employee's request will be responded to in writing within thirty (30) days of the date of submittal. The City will remain open for business Monday through Friday from 8:00 AM until 5:00 PM and will continue to provide a high level of service to the citizens of Belmont.
Administrative Leave: In recognition of the demands placed upon employees in this group who are identified as FLSA exempt or Management personnel and are required to work outside of the normal work week, eighty (80) hours of administrative leave shall be granted to all such employees on January 1 of each calendar year. Administrative leave must be used in the calendar year in which it was granted and may not be earned over into a subsequent calendar year or paid out upon termination. Up to twenty-four (24) hours of unused administrative leave may be converted to vacation hours annually at the end of each calendar year. 6 Vacation Allowance
Regular full-time employees shall be entitled to vacation leave as follows:
Length of Service Days of Vacation Hours Accrued per
Month of Service
From hire to 4 years 10 days 6-2/3 hours
4 or more years 15 days 10 hours
5 or more years 16 days 10-2/3
6 or more years 17 days 11-1/3 hours
7 or more years 18 days 12 hours
8 or more years 19 days 12-2/3 hours
9 or more years 20 days 13-1/3 hours
14 or more years 22 days 14-2/3 hours
Vacation Accumulation
In the event an employee is unable to take all of the vacation leave to which the employee is entitled in a calendar year, the employee shall be permitted to accumulate the unused portion, provided that the accumulated time does not exceed two times the employee's annual allowance unless an extension is granted by the City Manager due to exceptional circumstances.
Employees who have reached their accrual limit will not accrue any additional vacation unless and until their accrued vacation is below their accrual limit.
Employees who leave City service shall be paid straight-time salary for all accrued vacation leave earned on or before the effective date of termination.
Sick Leave
Sick leave shall be earned at the rate of one (1) day of each calendar month of service. For purposes of computing sick leave, one (1) day shall be considered as eight (8) working hours.
Sick leave, with pay, shall be granted to all full-time regular and probationary employees. Sick leave shall not be considered as a right which an employee may use at his/her discretion but shall be allowed only in case of necessity and actual personal or family sickness or disability.
Employees may use sick leave in case of illness or injury to a employee’s immediate family member or designated person, in accordance with the California Family Rights Act ("CFRA"). Such usage may be subject to verification at the City's request.
Sick Leave Accumulation
Unused sick leave shall be accumulated to a total of not more than 200 days (1,600 hours). An employee who is off on sick leave will continue to accumulate authorized benefits. An employee who is on leave without pay shall not accumulate sick leave credits. 7 Pay for Unused Sick Leave Upon Retirement
Upon retirement from the City of Belmont, employees with an unused sick leave balance may exercise one or both of the following options. Once hours are applied to one option they may not be applied to the other.
• Convert all or a portion of their unused accrued sick leave days at the time of retirement to additional PERS service credit in compliance with PERS regulations. • Receive compensation for unused accrued sick leave days, up to a maximum of two hundred (200) days, based on years of service as follows:
Years of Service Percentage of Sick Leave Days
5 to 9 years 25%
10 or more years 50%
For the purposes of this section, retirement will be defined as receiving a PERS retirement benefit.
Bereavement Leave
The City will provide up to a maximum of 3 days of paid bereavement leave per year in the event an employee's presence is required elsewhere because of death affecting the employee's immediate family.
The immediate family shall consist of the spouse, children, parents, brothers, sisters, domestic partner or dependents of the employee. Employees can take additional bereavement leave by using other accrued paid time including sick leave, vacation and compensatory time.
ACTING PAY
An employee may be assigned in writing by the City Manager or their designee, to perform the duties of higher classification on an acting basis. Such assignments may be made to cover for an extended absence, a position vacancy, or other extenuating circumstances. An employee assigned to perform the duties of a higher classification on an “acting” basis for a period of 10 or more consecutive business days, shall receive “acting” pay retroactive to the first day of such assignment. Such payment shall be 5% more than his/her current pay.
PARITY PROVISION
If adjustments, enhancements, or modifications are made to the compensation and benefits of the MidManagement Confidential Employee group, and if these changes are applicable and relevant to the unrepresented group, the City commits to applying identical changes to the unrepresented group.