1 STAFF REPORT
DATE: September 12, 2023
TO: Justin Hess, City Manager
FROM: Betsy McClinton, Management Services Director
VIA: Ryan Sizemore, Assistant Management Services Director BY: Julie Chaidez , Senior Administrative Analyst
SUBJECT: Adoption of a Resolution of Compensation Plan for City Clerk and City Treasur er, Appointed Officials, and Department Managers ; Adoption of a Resolution of Compensation Plan for Unrepresented Mid-Managers ; Adoption of a Resolution to Approve a Citywide Salary Schedule; and Amendment of the Fiscal Year 2023- 24 Budget .
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 -MANAG EMENT EMPLOYEES.
3. Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING A CITYWIDE SALARY SCHEDULE.
4. Amend the Fiscal Year 2023- 24 Adopted Budget to appropriate $273,399 from revenue account 001.ND000.30010.0000.000000.00000 (General Fund, Non- Departmental, Unassigned Fund Balance) to expenditure account 001.ND01A.60018.0000.000000.00000 (General Fund, Non- Departmental, Salaries Holding).
2 BACKGROUND
There are currently two elected officials (C ity Clerk and City Treasurer) who are elected by Burbank residents, two Appointed Officials (City Manager and City Attorney) who are appointed by the Burbank Council, and 11 Department Managers who report directly to the City Manager and are each responsible for managing a department within the City of Burbank.
The Unrepresented Mid- Manager population consists of 87 employees out of approximately 1,500 employees citywide. Unrepresented Mid- Management employees hold various titles including Assistant Department Directors, Deputy Directors, and other 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 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.
To effectively achieve its goal to recrui t and retain a well -qualified work force, the City must also consider internal equity among its employees citywide. Based on salary surveys that revealed a competitive labor market for Fiscal Year (FY) 2022- 2023, with agencies providing higher than historical increases in compensation over the next two to three years , Council recently approved staff’s recommendation to increase salaries by 3% in the second and third years in contracts with the City’s other labor groups.
Salary
City Clerk and City Treasurer, Appointed Officials, and Department Managers Based on the results of a salary survey recently conducted by staff for valuation of relevant market salaries , the City Clerk, City Treasurer, Appointed Officials, and Department Managers are compensated, on average, 5.96% below the average of the market as of July 1, 2023 . Additionally, based on consistent findings from analyses of relevant market data, staff anticipa tes the market will increase approximately 3% as of July 1, 2024. Therefore, over the next two years, City Clerk, City Treasurer, Appointed 3 Officials, and Department Managers would need a total combined salary increase of
8.96% (5.96% + 3%), on average, to reach the anticipated market average as of July 1, 2024. Staff proposes to provide the total combined salary increase of 8.96%, on average, to the City Clerk, City Treasurer, Appointed Officials, and Department Manager s split evenly over the next two years, as described below.
Effective the beginning of the pay period following Council adoption, staff proposes to increase the classification salary ranges and incumbents’ salaries by 4.48%, on average, for the City Clerk, City Treasurer, Appointed Officials, and Department Manager s, as listed in Attachment 1, Exhibit A, Column 3. The proposed increases will move the salary ranges for the City Clerk, City Treasurer, Appointed Officials, and Department Managers halfway toward the total anticipated market average as of July 1, 2024.
Effective July 1, 2024, staff proposes to increase the salary ranges of the City Clerk, City Treasurer, Appointed Officials, and Department Manager classification s the remaining
4.48%, on average, to reach the total anticipated market average as of J uly 1, 2024, as listed in Attachment 1, Exhibit A, Column 5.
Unrepresented Mid-Managers
A salary survey of Burbank’s relevant market was also conducted for the Unrepresented Mid-Manager titles. The survey showed salaries are, on average , 4.13% below the average of the market as of July 1, 2023. Additionally, staff anticipates the market will increase approximately 3% as of July 1, 2024. Therefore, over the next two years, Unrepresented Mid- Managers would need a total combined salary increase of 7.13% (4.13% + 3%), on average, to reach the anticipated market average as of July 1, 2024.
Staff proposes to provide the total combined salary increase of 7.13%, on average, to Unrepresented Mid- Managers, split evenly for most titles over the next two years, as described below.
Effective the beginning of the pay period following Council adoption, staff proposes to increase the classification salary ranges and incumbents’ salaries 3.57%, on average, for Unrepresented Mid- Managers, as listed in Attachment 2 , Exhibit A , Column 3 . T he proposed increases will move the salary ranges for most Unrepresented Mid-Managers halfway toward the total anticipated market average as of July 1, 2024. To maintain internal relationships, certain Unrepresented Mid- Manager classifications will receive 100% of the increase needed to reach the July 1, 2023, market average; additionally, classifications and incumbent employees with top of the range salaries that are at or above the market average as of July 1, 2023, will not receive a salary increase immediately following Council adoption, as listed in Attachment 2, Exhibit A, Column
3. 4
Effective July 1, 2024, staff proposes to increase the salary ranges of the Unrepresented Mid-Manager classifications the remaining 3.57%, on average, to reach the total anticipated market average as of July 1, 2024, as listed in Attachment 2, Exhibit A , Column 5.
The July 1, 2024 , proposed increases for City Clerk and City Treasurer, Appointed Officials, and Depar tment Managers ( Attachment 1, Exhibit A , Column 5 ), and the Unrepresented Mid-Managers, (Attachment 2, Exhibit A, Column 5), 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 subject to release based on a mandatory annual employee evaluation. However, because the City Clerk and City Treasurer classifications have a flat base salary (i.e. , a single dollar amount) 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 the Council’s actions over the last four years when considering salary adjustments for these groups.
Medical
The City of Burbank is among other public agencies in Southern California who contract with CalPERS to provide medical insurance to its employees. Since the COVID -19 pandemic, CalPERS medical premiums have increased at a higher - than- expected rate, from an average of 3% -4% per year to an average of nearly 5% per year. In fact, CalPERS medical premiums increased on average 6.8% for calendar year 2023, As such, Council recently approved s taff’s recommendations to increase the City’s monthly maximum medical contribution for other City labor groups to keep pace with CalPERS’ 2023 increase and anticipated future increases of approximately 5% per year.
To achieve parity with other City labor groups, staff recommends increasing the City’s monthly maximum contribution, effective retroactively to December 1, 2022, as shown below in Table 1, Column 1, for the City Clerk, City Treasurer, Appointed Officials, and Department Manager s; and as shown in Table 2, Column 1, for Unrepresented Mid-Managers. This increase matches the CalPERS 2023 premium rate increase of 6.8%.
Further, to keep pace with staff’s estimation that CalPERS premium rates will continue to increase by an average of 5% per year, staff recommends increasing the City’s monthly maximum medical contribution an additional 5% per year effective December 1, 2024, and then again on December 1, 2025, as shown in Table 1, Columns 2 & 3, for the City Clerk, City Treasurer, Appointed Officials, and Department Managers; and as shown in Table 2, Columns 2 & 3, for Unrepresented Mid-Managers.
5 Table 1: Monthly Maximum Medical Contributions - City Clerk, City Treasurer, Appointed Officials, and Department Managers
Column 1 Column 2 Column 3
Effective 12/01/22 Effective 12/01/23 Effective 12/01/24 1 Party From $ 711.25 to
$711.25 (no incr ease)
From $ 711.25 to
$711.25 (no incr ease) From $ 711.25 to $730
2 Party From $1,2 40 to $1,324 From $1,324 to $1,390 From $1,390 to $1,459 Family From $1,6 10 to $1,720 From $1,720 to $1,805 From $1,805 to $1,895
Table 2: Monthly Maximum Medical Contributions – Unrepresented Mid-Managers Column 1 Column 2 Column 3
Effective 12/01/22 Effective 12/01/23 Effective 12/01/24 1 Party From $6 20 to $662 From $662 to $695 From $695 to $730 2 Party From $1,2 40 to $1,324 From $1,324 to $1,390 From $1,390 to $1,459 Family From $1,6 10 to $1,720 From $1,720 to $1,805 From $1,805 to $1,895
Additional Changes
The resolutions for the City Clerk, City Treasurer, Appointed Officials, and Department Managers (Attachment 1 ) and Unrepresented Mid- Managers ( Attachment 2) contai n additional revisions to benefits intended to elevate or align Burbank’s standing within its relevant market and to achieve parity among Burbank employees citywide ; these revisions include, but are not limited to:
• Six weeks of paid Parental Leave,
• Addition of Juneteenth National Independence Day as a holiday, • Universal Leave accrual rate increase for Unrepresented Mid- Managers , • Percentage- based match to PEPRA employees’ deferred compensation.
For ease of administration, the Amended and Restated City Clerk and City Treasurer, Appointed Officials, and Department Managers Resolution (Attachment 1), as well as the Amended and Restated Unrepresented Mid- Managers Resolution (Attachment 2) contain all aspects of compensation and benefits. The resolutions accurately reflect all compensation and benefits currently in existence.
ENVIRONMENTAL IMPACT
This activity has no potential for resulting in either a direct physical change in the environment, or a r easonably foreseeable indirect physical change in the environment, and such as, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs §15378.
6 FISCAL IMPACT
The FY 2023- 24 cost of the proposed compensation and benefit changes is $243,771 ($191,004 from the General Fund) for City Clerk, City Treasurer, Appointed Officials, and Department Managers and $828,277 ($618,086 from the General Fund) for Unrepresented Mid-Managers. Increases in compensation and benefits for Burbank Water & Power (BWP) employees account for approximately 6% of the total cost of $1,072,048 for both groups, or approximately $64K in FY 2023- 24 and will not result in further rate increases for BWP customers beyond those adopted by Council as part of the FY 2023- 24 budget.
Sufficient funds are available in the existing FY 2023- 24 General Fund budget to account for $535,691 of the total General Fund cost, leavi ng a balance of $273,399. To account for the balance of the General Fund cost, staff is requesting Council authority to amend the FY 2023- 24 Budget by appropriating the total amount of $273,399 from revenue account 001.ND000.30010.0000.000000.00000 (General Fund, Non -Departmental, Unassigned Fund Balance) to expenditure account 001.ND01A.60018.0000. 000000.00000 (General Fund, Non- Departmental, Salaries Holding).
The fiscal impact for FY 2024 -25 is $482,067 ($380,389 General Fund) for City Clerk, City Treasurer, Appointed Officials, and Department Managers and $1,526,317 ($1,134,144 General Fund) for Unrepresented Mid-Managers, which will be incorporated into the FY 2024-25 budget and the City’s five-year financial forecast.
CONCLUSION
The City can achieve parity among its employees by implementing its financial policy consistently across every labor group. Adoption of the attached resolutions would increase salaries and medical benefits for the City Clerk, City Treasurer, Appointed Officials, Department Managers, and Unrepresented Mid- Managers, ensuring the City can continue to recruit and retain well-qualified employees while maintaining parity among its employees.
ATTACHMENT S
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