EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: February 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Tomohito Oku, Finance Director
Ana Maria Torres, Management Analyst II
SUBJECT: Annual Classification Plan and Compensation Schedule for FY 2021-22 Recommendation
Adopt two Resolutions:
Adopting the FY 2021-22 Classification Plan; and
Adopting the FY 2021-22 Compensation Schedule.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 5: Improve Communication and Enhance Community Engagement Background
Compensation consisting of salary and benefits paid to employees of the City of East Palo Alto is governed by the City’s municipal code, personnel policies, negotiated and authorized memoranda of understanding with the three employee bargaining units (MEA, SEIU, POA), authorized compensation for unrepresented employees, and authorized contractual agreements with the City Manager and City Attorney. As a member of the California Public Employees’ Retirement System (CalPERS), the City also is subject to applicable provisions of the Public Employee Retirement Law (PERL) referenced in the California Government Code and the California Code of Regulations.
In accordance with East Palo Alto Municipal Code §2.8.110, and as further codified in the City’s Personnel Policies and Procedures approved by the City Council on August 28, 1985 (Resolution #00210) Rule 3.9.01 states that “annually, the City Council shall establish the pay range and steps assigned to each classification in the City service.” The City maintains a Classification and Compensation Schedule inclusive of all authorized employee classifications. This includes the salary ranges that depict salary steps associated with such authorized classifications.
The City is presenting for adoption of the Fiscal Year 2021-22 City of East Palo Alto Classification Plan and Compensation Schedule reflecting previously approved changes to employee classifications and to reflect previously authorized and budgeted compensation of approved classifications.
Analysis
In addition to local policy requirements, Title 2 of the California Code of Regulations (CCR) §570.5 requires the City adopt a publicly available pay schedule for purposes of determining the amount of “compensation earnable” pursuant to California Government Code §20630, §20636, and §20636.1. Generally, compensation earnable is calculated using employee payrate and special compensation earned while working for the contracting agency (the City).
It is paramount to have a properly adopted and administered pay schedule to assure both citizen transparency and the accuracy of employee retirement benefits.
The City’s Classification and Compensation Schedule is required to meet eight criteria contained in CCR §570.5. The governing body (City Council) must approve and adopt the pay schedule as a standalone document detailing the pay rates for each employee position. The schedule must be publicly accessible, and available for auditing purposes for at least 5 years. The schedule also is required to include the following: position title; payrate for each position (ranges or steps); the time base for how pay is calculated (i.e., hourly, bi-weekly, etc.); payrate effective date and any applicable revision dates; and, the schedule may not reference another document in lieu of disclosing the payrate.
During the year, Council approved four positions and compensation schedules noted below:
a. Position 1 (effective July 25, 2021): Implementation of Senior Management Analyst (7/20/21);
b. Position 2 (effective August 8, 2021): Implementation of Housing & Economic Development Manager (7/27/21);
c. Position 3 (effective August 8, 2021): Implementation of Recreation Programs Coordinator LTD (7/27/21);
d. Position 4 (effective September 12, 2021): Implementation of the part time Racial and Identity Profiling Act (RIPA) Management Analyst I (9/7/21).
The Human Resources Division is typically tasked with administering and assuring the annual adoption of the City Classification and Compensation Schedule. Due to the lack of personnel, and the extended and complex bargaining agreements with SEIU, MEA, and POA, the Finance Department is temporarily providing oversight and assurance over the Annual Classification and Compensation Schedules. To remain in compliance with City compensation ordinance, personnel policies, and CCR §570.5, staff is presenting the FY 2021-22 annual Classification and Compensation schedule.
FY 2021-22 Summary:
a. Implementation of approved Equity Adjustments for Management Employees’ Association (MEA) members effective the first full pay period following July 1, 2021 (effective July 11, 2021);
b. Implementation of approved COLA and Equity Adjustment for Police Officer’s Association (POA) members effective the first full pay period in November (effective November 14, 2021);
c. Implementation of approved Equity Adjustments for Service Employees International Union (SEIU) members effective the first full pay period following the completion of both Union Ratification and City Council Adoption (effective November 28, 2021);
d. Implementation of approved COLAs for Service Employees International Union (SEIU) members, Management Employees’ Association (MEA) members, nonrepresented, non-contractual classifications effective the first full pay period after January 1, 2021, including approved compensation changes on the following effective dates (effective January 9, 2022);
i. Effective January 9, 2022: Implementation of approved Equity Adjustments for non-represented, non-contractual classifications.
Fiscal Impact
No fiscal impact associated with approval of the schedules.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo County Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
Attachments
1. RESOLUTION for Classification Plan
2. Exhibit A Classification Plan
3. RESOLUTION for Compensation Schedule
4. Exhibit A FY 2021-22 Compensation Schedule