Fremont City Council Meeting: 02/07/23 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4770) DOC ID: 4770
Updated: 2/2/2023 8:41 AM by Alberto Quintanilla Page 1 CITY OF FREMONT SALARY SCHEDULE ADOPTION - Consideration of a Resolution Adopting the City of Fremont's Salary Schedule Contact Persons:
Name: Tina Gallegos
Title: Human Resources Director
Div/Dept: Human Resources
Phone: 510-494-4652
E-Mail: [email protected]
Executive Summary: In order to confirm that the California Public Employees’ Retirement System (CalPERS) will appropriately consider established City of Fremont employee compensation earnable when calculating retirement benefits, the City of Fremont’s Employee Salary Schedule (or Pay Plan) is required to be formally adopted by the City Council in a public meeting. City Council approval of the overall pay plan is required for compliance with CalPERS compensation reporting requirements. This report does not seek Council action with respect to amounts of employee compensation, as such compensation has already been established via bargaining or under separate authority.
BACKGROUND: Fremont Municipal Code Section 2.25.210 (Salary Entitlement) codifies the City Manager’s authority to set, approve and amend employee pay ranges as part of a City-wide Salary Schedule. This authority is further outlined and defined in the City of Fremont’s Personnel Rules: Article VI (Compensation). In order to comply with CalPERS reporting requirements, staff requests, from time to time, that the City Council approve the current and most up-to-date salary schedule to reflect compensation changes that have been made under the City Manager’s authority since the City Council’s last approval. The salary schedule attached to this report reflects compensation rate changes made to comply with local minimum wage requirements; negotiated compensation increases (authorized during the bargaining process that concluded in July 2022), and various classification and compensation changes made to effect organizational compensation alignment, to incorporate market data and to maintain Fremont’s position as a desirable employer. The City Council last adopted the Citywide pay plan on September 7, 2021.
The City currently publishes its salary schedules on its publicly accessible website and the schedules are adjusted and reposted after each amendment.
DISCUSSION/ANALYSIS: The Public Employees’ Retirement Law (PERL) Government Code Section 20636 defines compensation earnable for State, School, and Public Agency members and in doing so requires that pay be outlined in publicly available pay schedules.
California Code of Regulations (CCR) Section 570.5 outlines eight criteria required to ensure that a pay plan is considered publicly available as follows:
(1) Has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws
(2) Identifies the position title for every employee position Council Staff Report (ID # 4770) Meeting of February 7, 2023 Updated: 2/2/2023 8:41 AM by Alberto Quintanilla Page 2 (3) Shows the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range
(4) Indicates the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually
(5) Is posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer’s internet website
(6) Indicates an effective date and date of any revisions (7) Is retained by the employer and available for public inspection for not less than five years
(8) Does not reference another document in lieu of disclosing the pay rate
The City’s Human Resources Department is responsible for ongoing compliance with CCR 570.5’s criteria (2) through (8). The City Council’s formal adoption of the pay plan will finalize compliance and further verify that City of Fremont employee salaries are to be considered “earned compensation” for the purposes of retirement/CalPERS reporting.
Human Resources staff will seek Council adoption of the City’s salary schedules from time to time when substantial changes to the salary schedules are being implemented. Each adoption of the salary schedules will incorporate salary changes resulting from any changes implemented by the City Manager as consistent with her authorities and responsibilities outlined in Municipal Code Section 2.25.210. The attached salary schedule reflects the following changes:
1) Implementation of the local required minimum wage increase; 2) Implementation of salary increases associated with successor Memorandum s of Understanding (MOU’s) approved in July 2022;
3) Classification and compensation changes resulting from organizational and/or market studies.
FISCAL IMPACT: This action is not seeking any specific change to employee compensation as such changes have already been implemented and their budgetary authority was coordinated via bargaining or City Manager authority.
ENVIRONMENTAL REVIEW: City administrative and personnel-related actions, and general policy and procedure making are not a “project” under CEQA, per CEQA Guidelines Section 15378(b)(2).
ATTACHMENTS:
• Draft Resolution
• Salary Schedule 1-1-23
• Temp Salary Schedule FINAL 7-1-2022
RECOMMENDATION: Adopt a resolution approving the City of Fremont’s Salary Schedules as established by the City Manager.