CITY OF COMMERCEAGENDA REPORTCITY OF COMMERCEAGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
CITY OF COMMERCE
AGENDA REPORT
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
SUBJECT: ADOPTION OF A Resolution of the city council of the city of commerce, california, APPROVING COMPENSATION AND FRINGE BENEFITS FOR UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEES.
Meeting Date: July 18, 2023
RECOMMENDATION:
Staff is recommending the City Council to adopt a resolution approving changes to the compensation and fringe benefits package for the Unrepresented Executive Management employees group and consolidating prior approved resolutions into one resolution.
BACKGROUND:
On January 17, 2017, the City Council approved a resolution 17-10 related to fringe benefits and compensation for Unrepresented Executive Management Employees.
September 17, 2019, the City Council approved resolution 19-119, which provides additional fringe benefits to Executive Management employees.
ANALYSIS:
The Executive Management respectfully requests Council to review and approve additional fringe benefits and compensation, which is included in the attached Updated Resolution. The attached resolution incorporates tentatively agreed provisions related to salaries, benefits, and other employment-related terms for Executive Management. These changes and requests are highlighted in yellow for Council’s review.
Staff is also recommending for Council to approve consolidating prior resolutions, 17-09 and 19-119, and attached herein, into one updated resolution for the purpose of efficiency and improved management of benefits and compensation considerations.
The requested provisions include the following:
1. Executive Management (including the City Manager and Assistant Manager) will receive a lump sum off-salary-schedule payment of 8%.
2. General Wage Increase (GWI) of 3.5% for fiscal year 2023-2024; GWI of 3.75% for fiscal year 2024-2025 and GWI of 4% for fiscal year 2025-2026.
3. Auto allowance/stipend of $500/monthly
4. Admin Time for Executive Management (including the City Manager and Assistant City Manager) will be eliminated and in lieu of this Admin Time benefit, Executive Management (including the City Manager and Assistant City Manager) will receive a one-time cash payment of 7.5% of the employee’s base salary.
5. Compaction Language related to salary schedules.*
FISCAL IMPACT:
The fiscal impact for the adoption of the FY 2023-24 related to the tentatively agreed provisions for Unrepresented Full-Time Executive Management employees is estimated to be $633,200. The cost of the three year package is approximately $851,750. A detailed breakdown is as follows:
FY 2023/24 FY 2024/25 FY 2025/26
Wage Increase $ 53,500 (3.5%) $ 57,750 (3.75%) $ 64,800 (4.0%) Signing Bonus (8%) $ 144,200
Auto Allowance $ 48,000 $ 48,000 $ 48,000
Admin Time Elimination (7.5%) $ 137,500
Class & Comp Implementation* $ 250,000
TOTAL $ 633,200 $ 105,750 $ 112,800
* this item will be discussed on the evening of the July 18th city council meeting ALTERNATIVES:
Approve Staff’s recommendation.
Disapprove Staff’s recommendation.
Provide staff with further direction.
RELATIONSHIP TO STRATEGIC GOALS:
This item is related to a specific 2016 Strategic Focus Area – City Organization as follows:
The City of Commerce is an organization and workplace that encourages innovation, attracts and retains employees through a supportive working environment with competitive salary and benefits.
Approved by: Ela Pappo, Director of Human Resources
Fiscal Impact reviewed by: Vilko Domic, Assistant City Manager Approved by: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager