DATE: May 5, 2025
TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
FROM: Diane Pitman, Administrative Services Director
DEPARTMENT: Administrative Services
SUBJECT: UPDATES TO THE MANAGEMENT GROUP COMPENSATION
AND BENEFITS PLAN EFFECTIVE MAY 1, 2025
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors (hereinafter referred to as “City Council”) adopt the attached resolutions approving a new Compensation and Benefits Plan, effective May 1, 2025, for the unrepresented Management employees.
EXECUTIVE SUMMARY
The City Council requested staff to review and update the current Compensation and Benefits Plan (CBP) for the unrepresented Management Employees based on the recent approval of a new Memorandum of Understanding (MOU) with the American Federation of State, County and Municipal Employees (AFSCME). The CBP was compared to the MOU’s for AFSCME and the Police Officer’s Association (POA). Staff has updated the Management Group CBP to align compensation and benefits to the negotiated AFSCME and POA MOU’s.
BACKGROUND/ANALYSIS
The Management Employee group is made up of 49 unrepresented employees of various positions including department heads, mid-management, and other professional classifications. The current CBP for the Management employees was approved on
June 20, 2023. The new CBP is recommended for City Council approval with a retroactive effective date of May 1, 2025. The retroactive date will allow the Management Employees to participate in a new pilot salary continuation program recently negotiated with AFSCME.
Attached is an updated CBP which includes the following revisions:
Wages:
•Effective July 1, 2026, an across-the-board increase based on the April-to-April CPI movement for the Bay Area with a minimum of 3% and a maximum of 5%. •Effective July 1, 2027, an across-the-board increase based on the April-to-April CPI movement for the Bay Area with a minimum of 3% and a maximum of 5%. •Effective July 1, 2028, an across-the-board increase based on the April-to-April CPI movement for the Bay Area with a minimum of 3% and a maximum of 5%.
Flexible Benefit Plan (Medical, Dental, Vision): Effective January 1, 2026, the City’s contribution towards the Flexible Benefit Plan will be increased by the percentage increase in the CalPERS Kaiser HMO Basic Premium Region 1 rate for Public Agencies. The CBP also states that the City’s contribution will be adjusted January 1, 2027, January 1, 2028, and January 1, 2029, using the same Kaiser plan increase.
Additional holiday: Juneteenth will be an observed holiday starting June 19, 2025.
Police management will have an adjustment to their holiday-in-lieu pay of 0.38% for a total of 5.78%. In addition, Police Captains will be added to the holiday-in-lieu section and work on holidays like other holiday-in-lieu staff.
Pilot Salary Continuation Program: Management Employees will be eligible to participate in the Foster City CARE leave two-year pilot program to provide salary continuation for employees with qualifying FMLA/CFRA leaves.
Sick Leave Accrual: Sick leave accrual will be increased to 8.666 per month starting July 1, 2025, to align with the AFSCME MOU.
Uniform Allowance: Effective July 1, 2025, the uniform allowance for Police Management will be increased from $722 to $900 a year to align with the POA contract.
Boot Allowance: Effective July 1, 2025 specific classifications that have a requirement to wear safety-toed footwear will receive a $300 boot allowance every other fiscal year or every three years. This is similar, but not as frequent, as the AFSMCE MOU.
Class B Driver’s License Incentive: Specific classifications that possess and maintain a commercial class B or higher driver’s license will be eligible for a $200 a year certification pay in alignment with the AFSCME MOU.
Service Recognition Leave: Management employees currently receive 40 hours of paid leave when they reach 10, 20 and 30 years of service. Effective May 1, 2025, this recognition will be revised to include years 15 and 25 to be similar to the AFSCME MOU.
Certification Pay: Effective July 1, 2025, specific classifications that have a unique certification that provides valued job and safety knowledge will be eligible for certification pay similar to the AFSCME MOU.
The above revisions will help with recruitment and retention of employees and supports the City Council’s goal of aligning benefits where appropriate between management employees and the negotiated AFSCME and POA MOU’s.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
The provisions proposed in the revised CBP that impact 2024-2025 can be absorbed in the current FY 2024-2025 budget. The cost-of-living adjustments for FY 2025-2026 were previously authorized and the appropriate adjustments will be made in the upcoming FY 2025-2026 budget accordingly. The impact of future wage adjustments will be reflected in the budgets of their respective fiscal years. No supplemental appropriation is needed at this time.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS:
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Compensation and Benefits Plan for unrepresented Management Employees effective May 1, 2025
Attachment 4 – Compensation and Benefits Plan for unrepresented Management Employees effective May 1, 2025 with red-lined edits