EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: November 15, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Sandra Floyd, Human Resources Manager
SUBJECT: Classification Plan and Salary Schedule Update Recommendation
Adopt two Resolutions:
1. Approving the FY 2022-23 Classification Plan; and
2. Approving the FY 2022-23 Compensation Schedule.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
· Priority #3: Increase Organizational Effectiveness and Efficiency · Priority #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 provided in the City’s Personnel Policies and Procedures approved by the City Council on August 28, 1985 (Resolution No. 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.
Human Resources is presenting for adoption the Fiscal Year 2022-23 City of East Palo Alto Classification Plan and Compensation Schedule reflecting previously approved changes to employee classifications as well as previously authorized and budgeted compensation for approved classifications. Minimum wage salaries for Recreation Leader I and Temporary classifications are being updated to reflect the City’s minimum wage rate.
Analysis
Implementation of approved COLAs for Management Employees’ Association (MEA) members, Police Officer’s Association (POA) members, Service Employees International Union (SEIU) members, non-represented, non-contractual classifications the first full pay period following adoption by City Council on July 19, 2022 (effective July 24, 2022); In addition to local policy requirements and employee agreements, Title 2 of the California Code of Regulations (CCR) §570.5 requires the City to 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 entity. It is paramount to have a properly adopted and administered pay schedule to assure both public 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 City Council must approve and adopt the pay schedule as a standalone document detailing the payrates 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 June 7, 2022): Implementation of Planning Permit Technician (7/19/22);
b. Position 2 (effective June 7, 2022): Implementation of Part-Time Reserve Officer (7/19/22);
c. Position 3 (effective June 7, 2022): Implementation of Assistant to the City Manager LTD (07/19/22);
d. Position 4 (effective July 19, 2022): Implementation of Public Works Supervisor (07/24/2022).
To remain in compliance with City compensation ordinance, personnel policies, State requirements and CCR §570.5, staff is presenting the FY 2022-23 annual Classification and Compensation schedule.
Fiscal Impact
No fiscal impact associated with approval of the schedules.
Environmental Impact
The proposed actions are administrative decisions that will not have an effect on the environment and are statutorily exempt from the California Environmental Quality Act (CEQA).
Attachments
A. Classification Plan FY 2022-23 Position and FTE by Department B. Resolution for Classificaton
C. Resolution for Compensation Schedule
D. Compensation Schedule FY 2022-23_TO 11.7.22