Consent Item 3p
STAFF REPORT
City Council Consent Item
DATE: May 19, 2025
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Establish and Authorize Supplemental Compensation and Benefits for Unrepresented Management, Confidential Employees, Resolution 2025-16, and Approve Supplemental Compensation for Regular Part-time Employees STAFF RECOMMENDATION:
Staff recommends the Council establish and authorize supplemental compensation and benefits for unrepresented management and confidential employees by adopting Resolution 2025-16 and approve supplemental compensation for regular part-time employees.
EXECUTIVE SUMMARY:
The City’s Management and Confidential employee classifications consist of both sworn (police) and general employees that are unrepresented, which means they have not engaged in collective bargaining with the City on matters related to wages, benefits and other terms and conditions of employment. As negotiations for Memorandum of Understandings (MOU’s) are reaching a conclusion for the represented employee groups, it is recommended that Council address wages, benefits and other terms and conditions of employment that pertain to the City’s unrepresented classifications as listed in the resolution and including the following positions:
• Human Resources Director/City Clerk
• Public Works Director
• Finance Director
• City Manager
• Police Chief
Although the Management and Confidential employees have not negotiated and therefore do not have an MOU, a Supplemental Compensation and Benefits Resolution has been drafted and is intended to operate in much the same way as an MOU and reflects the same benefits negotiated with the Fortuna Employees Association.
The attached resolution incorporates the summary of changes below for full-time unrepresented, management and confidential employees:
• For Fiscal Years 2025-26 and 2026-27, the City will provide a one-time $6,000 retention stipend to be paid in two equal lump sum installment payments of $3,000 – the first payment in the last pay period of July and the second payment in the first pay period of December. In order to receive the installment payment, an employee must be currently employed by the City and either scheduled for active shifts or be on paid leave as of the beginning of the applicable pay period referenced above.
Consent Item 3p
• Effective June 29, 2025, for a 24-month trial period, the normal, full-time workweek shall consist of thirty-four (34) hours with offices closed on Fridays. Upon the schedule change, a full-time equivalent (FTE) of 1.0 is equivalent to an employee who normally works thirty-four hours per week.
• During the 24-month trial period of the 34-hour work week hourly pay will be adjusted by 17.65% to ensure employees are earning the same weekly amount. • For unrepresented employees that are opting out of medical coverage the opt out payment option has been adjusted from a flat $500.00 per month to 75% of the employee-only medical premium, prorated and paid bi-monthly.
• The City will transition to a thirty-four (34) hour workweek with offices closed on Fridays.
Therefore, vacation accrual has been reduced from 80 hours of accrued vacation in a year to 68 hours. This adjustment still allows for two weeks of accrued time with Friday office closures. The chart below represents the changes for all years of service.
Full Years of Service
Completed by Employee
Number of Working Days of
Vacation Earned
Maximum Accumulated
Leave in Bank Allowed
1 through 5 years 68 Hours annually 160 Hours
6 through 10 years 102 Hours annually 240 Hours
11 years and Over 136 Hours annually 320 Hours
• The number of holidays has been reduced because of the 34-hour work week, and if the holidays shown below fall on a Friday unrepresented employees will not receive the holiday. Greater details on the changes to holidays are provided below.
Holidays Provided Effective June 29, 2025:
To ensure consistent services and continued operations while providing a 34-hour workweek, the City agrees to pay all full-time regular employees in the bargaining unit for the following eight (8) holidays per year:
• New Year's Day,
• The day observed as President’s Day,
• Memorial Day,
• Independence Day,
• Labor Day,
• Thanksgiving,
• Christmas Eve,
• Christmas Day.
However, if one of the eight (8) holidays referenced above is on a Friday, Saturday, or Sunday, employees will not receive the holiday.
Employees shall receive eight and a half (8.5) hours of pay for a holiday.
The Friday after Thanksgiving is now an additional floating holiday, for a total of three (3) floating holidays that will be available by July 1 each year.
At the completion of the 24-month trial period, unless otherwise extended by the City and the Association, holidays provided to full-time Association employees will revert back to the policies that existed prior to the trial period.
Consent Item 3p
• Trial Period: Effective June 29, 2025, as part of a 24-month trial period, the normal, full-time workweek shall consist of thirty-four (34) hours. Upon the schedule change, a full-time equivalent (FTE) of 1.0 is equivalent to an employee who normally works thirty-four hours per week. During this time, the Employer and Employees will evaluate the effectiveness of the schedule, including any impacts on productivity, morale, and work-life balance.
In addition to the unrepresented Management and Confidential employees, as part of the negotiations process, the Council agreed to a one-time stipend for regular part-time employees, including the following positions:
• Parks Maintenance Worker I (RPT)
• Bus Driver I (RPT) (Does not include retired annuitant) • Transit Dispatch / Office Assistant (RPT)
• Museum Curator (RPT)
• Administrative Assistant I (RPT)
• Community Services Officer I (RPT)
Regular part-time employees shall receive the following supplemental compensation:
• For Fiscal Years 2025-26 and 2026-27, the City will provide a one-time $3,000 retention stipend to be paid in two equal lump sum installment payments of $1,500 – the first payment in the last pay period of July and the second payment in the first pay period of December. In order to receive the installment payment, an employee must be currently employed by the City and either scheduled for active shifts or be on paid leave as of the beginning of the applicable pay period referenced above.
FISCAL IMPACT
Fiscal impacts associated with the terms of the MOU’s have been reviewed by Council during the negotiations process, in the budget workshop on May 1, and will be included in the Fiscal Year 2025-26 budget.
RECOMMENDED COUNCIL ACTION:
Establish and authorize supplemental compensation and benefits for unrepresented management and confidential employees by adopting Resolution 2025-16 and approve supplemental compensation for regular part-time employees. Consent agenda vote ATTACHMENTS:
• Resolution 2025-16; A Resolution Of The City Council Of The City Of Fortuna Establishing and Authorizing Supplemental Compensation and Benefits For Management and Confidential Employees Effective July 1, 2025, through June 30, 2027.