95
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
SUBJECT:
August 6, 2012
2012-13 Managers’ Compensation Proposal
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 4
C.8
BACKGROUND:
This document supersedes the March 28, 2012, compensation proposal from Managers/
Administrators that went to the May 2012 Governing Board meeting as an information item.
FISCAL IMPACT:
See following page.
RECOMMENDATION:
It is recommended that the Governing Board approved the proposal as presented.
Administrator Initiating Item:
Brian King
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
Approved
96
To:
President King and Members of the Cabrillo Governing Board
From:
Cabrillo’s Management Team
Date:
July 19, 2012
Subject:
Compensation for 2012-13
(This document supersedes the March 28, 2012, compensation proposal from Managers/
Administrators that went to the May 2012 Governing Board Meeting. [pp. 119-120])
In recognition of the ongoing financial crisis and to assist in reducing the structural deficit, the
managers and administrators at Cabrillo College agree to the following:
Permanent, Ongoing Structural Proposal
Benefits: Effective with the completion of the 2012-13 benefits’ enrollment periods and
ongoing, we will share with the District the cost increase of the benefit stipend on a 50%-50%
basis. That is, we will split the cost of the increase in the benefits stipend (medical, dental, life
and disability insurance) for managers/administrators evenly with the District. In the interest of
consistency and simplicity of administration of the plan, our intent is to match the benefits
agreement reached between CCFT and the District, once there is an approved agreement. We
encourage other employee groups to do the same. Accordingly, we reserve the right to
reconsider the above should the final agreement on benefit stipend increase cost-sharing
between CCFT and the District reflect a different structure or different benchmark to
determine the cost increase.
Using the District’s figure of $38,420 as the cost of 1% of the total salary for the management
group, this concession equates to a 0.35% salary decrease for 2012-13. Although the initial
savings this year is low, we expect that benefits costs will escalate in subsequent years, and
understand that the cost- sharing plan is cumulative, making our future contribution
significantly higher.
→ Savings for the district in 2012-13: $13,416
1
97
One-Time, 2012-2013 Only
Salary Reduction with Work Day Reduction (Closure of Campus):
We propose a five-day closure of the campus (January 2-4, 2013, with two additional nonwork days to be determined). We realize that there may be a department(s) that will need to
select alternate dates, but our intent is to close as much of the campus operation as possible
over the same dates to obtain maximum energy savings, and to select dates that will have the
least impact on students.
→ Savings of 5/225 = 2.22% annual or $85,378 (plus savings in energy and salaries of other
affected groups)
Considerations:
•
If other groups working during this time period do not agree to the five non-work days
closure of the campus, the College would still close: this would result in energy savings
and staff would be assigned to take vacation days or contract days off, to the extent
possible, as staff could not work without managers present.
•
Should the tax initiatives fail in November 2012, the savings resulting from the loss in
salary of administrative employees will become one-time money available to the
District to assist in offsetting additional mid-year reductions. In June 2013, we will reevaluate this one-time commitment for possible continuation should the structural
deficit continue at the current level or increase.
•
If the tax initiatives pass in November, the closure of the campus will still occur
resulting in the same amount of salary reduction for administrative personnel; however,
these funds will be applied to the 2013-14 managers/administrators’ 50% portion of the
incremental rate increase in the benefits stipend .
→ Total Savings: $13,416 + $85,378 = $98,794
→ Total One-Time Salary and Ongoing Benefits Concession: 2.57%
(Dollar amounts and percentages are annual figures and percentages have been rounded.)
2
98
NOTE: These concessions are offered with the expectation that when the fiscal situation
improves and new funds become available, the management group will receive increased
compensation. In addition, we request that the study of internal compensation compression,
salary alignment inequities and compensation levels for managers/administrators that was
postponed when the current fiscal crisis began, be undertaken to determine the amount of total
annual compensation that is appropriate. It is also noted that the loss of positions, both in
management and staff, have resulted in increased workload, increased work hours, and increased
responsibility for administrative employees.
Additional Points To Consider:
• The Administrative/Management employee group understands that the structural budget
problem facing the District is due to uncapped benefits, including:
--Health Benefits (affects all employee groups)
--District payment of employee PERS contribution (does not affect management
employees)
--Compounded Longevity Payments (does not affect management employees)
•
According to figures reflected in the Cabrillo College Preliminary Budget for 2012-13,
the number of administrative/management positions has decreased by 14 FTE (42%)
since the Fall Semester of 2000. (This significant decrease in management staffing is of
particular concern given the recent warnings issued to San Francisco City College.)
•
The Administrative/Management employee group "went first" with concessions in 2009
as well, agreeing to the lower cost HMO and withdrawing our request for the
compensation & salary compression study.
3