EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: January 18, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: James Colin, Executive Assistant
SUBJECT: Approve Compensation Adjustments for Non-Bargaining, Unrepresented Confidential Restricted Classific
Recommendation
Adopt a Resolution:
1. Approving the 3% COLA adjustment effective the first full pay period following January 1, 2022, for Unrepresented Confidential Non-Bargaining Restricted Classifications;
2. Approving the third and final equity adjustment equal to 1/3 the percentage increase to achieve the target of 95% of market median for these unrepresented classifications; and
3. Appropriating $60,618 from General Fund vacancy and other salary savings within the Budget for Fiscal Year 2021-22.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 2: Enhance Economic Vitality
Priority No. 3: Increase Organizational Effectiveness and Efficiency Background
The majority of City staff are represented members of an organized labor association, such as Service Employees International Union (SEIU), Management Employees’ Association (MEA), and the Police Officers’ Association (POA). However, there are twenty-two (26) individual employee positions in eighteen (18) City classifications that do not belong to one of these organizations, and are therefore “Unrepresented,” and do not benefit from collective bargaining agreements.
The purpose of this staff report is to obtain City Council approval of compensation adjustments for Unrepresented staff. These proposed actions are consistent with compensation adjustments that have already been approved for staff that belong to the City’s bargaining units.
Cost-of-Living-Adjustments (COLA)
A cost-of-living-adjustment (COLA) is an increase in income (wages, salaries, and benefits) that allows employees to keep up with the cost of living, essentially compensating for the impacts of inflation. The City Council has already authorized COLA adjustments for bargaining units including MEA, POA, and SEIU accordingly:
Bargaining Unit, %
Increase
Effective Date
MEA, 3% First full payroll immediately following January 1, 2022 POA, 3% First full pay period in November 2021
SEIU, 3% First full payroll immediately following January 1, 2022 Equity Adjustments
Given that these employees are Unrepresented, the City does not negotiate compensation with these classifications, neither as individuals nor as a group. Thus, the City Council approves the compensation package necessary to attract and retain skilled employees. The City Manager and City Attorney, as agreed upon in their respective contracts, will have these discussions pertaining to their compensation with the City Council during their annual performance evaluation process.
In May and June 2019, Koff & Associates (K&A) was hired to conduct a comprehensive Total Compensation Study (Study) for the City. With the overarching goal of facilitating the City’s development of a competitive pay and benefit plan, the Study was driven by:
· Concern that the level and scope of an employee’s work should be acknowledged and compensated fairly and competitively, thus allowing the City to recruit and retain qualified staff; and
· Desire to ensure that City salaries are based upon objective factors and market data, resulting in equity across the City.
To establish the “benchmark market,” the Study analyzed compensation structures from jurisdictions that feature populations, staff, and operational budgets considered to be similar in size and scope as East Palo Alto. These include:
Albani, Belmont, Burlingame, El Cerrito, Foster City, Martinez, Millbrae, Newark, Pacifica, Pleasant Hill, San Bruno and San Pablo
In June 2020, staff and K&A presented the full details of the Study and City Council approved the compensation schedules and classifications for all City employees.
Analysis
Proposed Equity Adjustments for Unrepresented Employees The Study indicated that positions within 5% of market median are considered “at market.” City Council approved equity adjustments for those positions in the MEA and SEIU bargaining units, which remained below 95% of median. In parallel, staff proposed that Unrepresented positions, which remain below the 5% “at market” margin receive the same adjustment.
Through the Study, the proposed percentage adjustments for each of the eight (8) Unrepresented positions listed in Table 1 as detailed below have been reviewed and considered. City Council approved partial adjustments covering two (#1 and #2) of the three installments in December 2019, and January 2020, respectively. Therefore, only the third and last of the 1/3 equity adjustment remain unmet.
TABLE 1 RECOMMENDED EQUITY ADJUSTMENTS
Position/Classification Total Adjustment to
Achieve 95% of
Market Median
#1 (1/3)
As of Jan
12, 20220
#2 (2/3)
As of Jan
10, 2021
#3 (3/3)
Eff. First
full pay
period in
Jan 2022
Chief of Police 3.15% 1.05% 1.05% 1.05%
Community & Econ Dev. Director 5.43% 1.81% 1.81% 1.81%
Finance Director 6.56% 2.19% 2.19% 2.19%
Public Works Director 7.00% 2.33% 2.33% 2.33%
City Clerk 6.01% 2.00% 2.00% 2.00%
Police Commander 0.25% 0.08% 0.08% 0.08%
Human Resources Manager 0.97% 0.32% 0.32% 0.32%
Environmental Services Aid 7.00% 7.00% 6.41% 6.02%
Staff recommends that the third and final installment of the 1/3 equity adjustment be implemented effective the first full payroll immediately following January 1, 2022 to achieve the target of 95% within market median for these unrepresented classifications.
Fiscal Impact
If the City Council approves the COLA and equity adjustments as recommended above effective first full pay period following January 1, 2022, there is sufficient funding available within the approved FY2021-22 budget to accommodate apportionment of approximately $60,618 In the current fiscal year and $121,236 ongoing in future fiscal years.
Based upon the current employee count, current salary savings, projected costs, and general economic outlook for the city, the Finance Department anticipates this will be funded through a balance General Fund budget.
Environmental
The action being considered does not constituted a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachment
Resolution
Attachments
1. Resolution for Unrep adjustment