1 STAFF REPORT
DATE: January 11, 2022
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Julianne Venturo, Assistant Management Services Director BY: Julie Chaidez, Administrative Analyst II
SUBJECT: Adoption of a Resolution of Compensation Plan for City Clerk and City Treasurer, Appointed Officials, Department Managers, and Unrepresented Mid-Managers.
RECOMMENDATION
1. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK
AMENDING AND RESTATING THE COMPENSATION PLAN FOR CITY CLERK
AND CITY TREASURER, APPOINTED OFFICIALS, AND DEPARTMENT MANAGERS.
2. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK
AMENDING AND RESTATING THE COMPENSATION PLAN FOR
UNREPRESENTED MID-MANAGEMENT EMPLOYEES.
3. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A CITYWIDE SALARY SCHEDULE.
BACKGROUND
There are currently two elected officials (City Clerk and City Treasurer) who are elected by Burbank residents, two Appointed Officials (City Manager and City Attorney) who are appointed by the City Council, and 11 Department Managers who report directly t o the City Manager and are each responsible for managing a department within the City of Burbank.
The Unrepresented Mid- Manager population consists of 84 employees out of approximately 1,300 employees citywide. Unrepresented Mid- Management employees hold various titles including Assistant Department Directors, Deputy Directors, and other
MANAGEMENT
SERVICES
2 titles that report directly to a Department Manager or are involved with confidential matters.
In accordance with Government Code Section 20636 and California Code of Regulations Section 570.5, the California Public Employees’ Retirement System (CalPERS) requires public agencies to post a publicly available salary schedule to determine earnable compensation that is approved by the City Council at a public meeting.
DISCUSSION
Staff proposes an increase in salary for City Clerk , City Treasurer, Appointed Officials, Department Managers, and Unrepresented Mid-Managers to bring them up to the market average. It is the City’s financial policy to compensate employees at a level commensurate with the average of Burbank’s relevant market to recruit and retain a well- qualified work force. Burbank’s relevant market includes comparable classifications within municipalities that provide similar services in Southern California , and consists of the following cities: Anaheim, Garden Grove, Glendale, Huntington Beach, Inglewood, Pasadena, Riverside, Santa Ana, Santa Monica, and Torrance.
To effectively achieve its goal to recruit and retain a well -qualified work force, the City must also consider internal equity among its employees citywide. Council has consistently used 2% for salary increases in the second and third years in recent contracts with other City labor groups. Additionally, s taff recently conducted a study of actual market movement since 2018 that confirmed the accuracy of using 2% per year to project market movement for each of its labor groups , including City Clerk, City Treasurer, Appointed Officials, Department Managers, and Unrepresented Mid-Managers.
City Clerk and City Treasurer, Appointed Officials, and Department Managers
Salary Adjustment
In 2021, a salary survey was conducted for valuation of relevant market salaries. Based on the results of the salary survey, s alaries for City Clerk , City Treasurer , Appointed Officials, and Department Managers are on average 3.65% below the market since July 1, 2021. Additionally, based on its recent study of actual market movement over the last four years, staff anticipates the market will move approximately 2% as of July 1, 2022.
Therefore, City Clerk, City Treasurer, Appointed Officials, and Department Managers would need a total salary increase of 5.65% (3.65% + 2%), on average, to get up to and stay with the market average as of July 1, 2022.
Staff proposes t hat the City Clerk, City Treasurer, Appointed Officials, and Department Manager classification salary ranges and incumbents receive a salary increase as listed in Column 3 of Attachment 1 (page 12). The increase provided would move the salary ranges for these classification titles halfway toward the average of the projected July 1, 3 2022 market salary survey , or 2.825% . The incr ease is proposed to be effective the beginning of the pay period immediately following City Council adoption. Staff also proposes an increase to the City Clerk, City Treasurer, Appointed Officials, and Department Manager classification salary ranges to move the ranges up to the projected July 1, 2022 market average, effective July 1, 2022. The July 1, 2022 proposed increase, as shown in Column 5 of Exhibit A (page 12), will not be provided automatically to the incumbents, but will apply to the respective classification salary ranges only; any increase for the incumbents will be performance- based and given only with an annual employee evaluation. However, because the City Clerk and City Treasurer classifications have a flat base salary (i.e. a single dollar a mount) instead of a salary range, any increases to those classifications’ salaries will also be granted to the incumbents. This two -phase approach is consistent with City Council’s actions two years ago when considering adjustments for this group.
Annual Sick Leave/Executive Leave Conversion
To align with agreements between the City and other bargaining groups regarding the conversion of accumulated leave to cash value, staff recommends lowering the threshold from 160 hours to 96 hours of total accumulated leave an employee must maintain after the annual conversion is processed.
Unrepresented Mid-Managers
Salary Adjustment
A salary survey of Burbank’s relevant market was also conducted for the Unrepresented Mid-Manager titles. The survey also showed salaries are on average 3 .36% below the market since July 1, 2021. Additionally, staff anticipates the market will move approximately 2% as of July 1, 2022. Therefore, Unrepresented Mid- Managers would need a total salary increase of 5.36% (3.36% + 2%) , on average, to get up to and stay with the market average as of July 1, 2022.
Staff proposes that the Unrepresented Mid- Manager classification salary ranges and incumbents receive a percentage increase as listed in Column 3 of Attachment 2 (pages 15-16). The increase provided will move the salary ranges for Unrepresented Mid- Managers halfway toward the average of the projected July 1, 2022 market salary survey, or 2.68% . This increase is proposed to be effective the beginning of the pay peri od immediately following City Council adoption. Staff also proposes an increase to the Unrepresented Mid-Manager salary ranges to move the ranges up to the projected July 1, 2022 market average, effective July 1, 2022. The July 1, 2022 proposed increase, as listed in Column 5 of Attachment 2 (pages 15-16), will not be provided automatically to the incumbents, but will apply to the respective classification salary ranges only; any increase for the incumbents will be performance- based and given only with an annual 4 employee evaluation. This two-phase approach is consistent with City Council’s actions two years ago when considering adjustments for this group.
Annual Sick Leave/Universal Leave Conversion
Staff recommends adding the Annual Sick Leave/Universal Leave Conversion section to the Mid-Manager resolution, which was inadvertently omitted. Staff proposes aligning the Annual Sick Leave and Universal Leave Conversion policy for Mid- Managers with the Annual Sick Leave/Executive Leave Conversion section of the City Clerk and City Treasurer, Appointed Officials, and Department Managers resolution, in keeping with the longstanding and consistent application of the policy across these employee groups.
Additional Changes
Additionally, the resolutions attached as Attachment 1 and Attachment 2 detail other miscellaneous changes and language clarifications. For ease of administration, the attached amended and restated resolution for the City Clerk , City Treasurer, Appointed Officials, and Department Managers, as well as the amended and restated resolution for Unrepresented Mid- Managers contain all aspects of compensation and benefits. The resolutions accurately reflect all compensation and benefits currently in existence.
FISCAL IMPACT
The Fiscal Year 20 21-22 cost for the proposed salary increase is $ 61,066 ($50,437 General Fund) for City Clerk, City Treasurer, Appointed Officials, and Department Managers and $194 ,126 ($145,663 General Fund) for Unrepresented Mid- Managers.
The proposed increases would achieve a savings of $52,087 ($40,026 General Fund) from the FY 2021- 22 budget, while still adhering to Council’s policy to compensate employees at a level commensurate with their relevant labor market. This savings has been incorporated into and improved the City’s five-year financial forecast.
Also, the fiscal impact for FY 2022- 23 will be incorporated into the FY 2022 -23 budget and the City’s five-year financial forecast.
CONCLUSION
The City’s financial policy states, “In order to recruit and retain a well-qualified workforce to provide exceptional services, we will compensate employees at a level commensurate with the average of Burbank’s relevant labor market.” Additionally, the City can achieve parity among its employees by implementing its financial policy consistently across every labor group. Adoption of the attached resolutions to increase salaries for City Clerk, City Treasurer, Appointed Officials, Department Managers, and Unrepresented Mid- Managers not only moves the City to closer alignment with its adopted compensation policy, but it also supports the City Council’s goal of operating the City government in a 5 fiscally responsible and prudent manner by achieving a savings of $52,000 over the FY 2021-22 budgeted amount.
ATTACHMENTS
Attachment 1 – Amended and Restated City Clerk and City Treasurer, Appointed Officials, and Department Managers Resolution
Attachment 2 – Amended and Restated Unrepresented Mid-Managers Resolution Attachment 3 – Resolution Approving the City’s Salary Schedule