Fremont City Council Meeting: 10/01/24 07:00 PM
3300 Capitol Avenue Div/Dept: Human Resources
Fremont, CA 94538 Category: Labor Relations
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 5237) DOC ID: 5237
Updated: 9/27/2024 7:33 AM by Dina Lewis 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 Brian Stott
Title: Human Resources Director Assistant City Manager
Div/Dept: Human Resources City Manager's Office
Phone: 510-494-4652 510-494-4660
E-Mail: [email protected] [email protected]
Executive Summary: In order to ensure that the California Public Employees’ Retirement System (CalPERS) will appropriately consider City of Fremont employee compensation earnable (classic members) and pensionable compensation (new members) when calculating retirement benefits, the City of Fremont’s Employee Salary Schedule (or Pay Plan) is required to be identified on a publicly available pay schedule formally adopted by the City Council at a public meeting.
BACKGROUND: Fremont Municipal Code Section 2.25.210 (Salary Entitlement) outlines and 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). Per this authority, staff requests City Council approval to amend the current salary schedule consistent with classification and compensation changes and local minimum wage requirements. The City currently publishes its salary schedule on its publicly accessible website and the schedule is adjusted and reposted after each amendment.
DISCUSSION/ANALYSIS: The Public Employees’ Retirement Law (PERL) defines compensation earnable for classic members, and the Public Employees’ Pension Reform Act of 2013 (PEPRA) defines pensionable compensation for new members and in doing so require that pay rates be identified in publicly available pay schedules. (Gov. Code § 20636; Gov. Code § 7522.34.)
For a pay schedule to be considered publicly available, California Code of Regulations (CCR) Section 570.5 requires the City’s pay plan meet the following eight criteria:
(1) Be duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meeting laws;
(2) Identify the position title for every employee position; (3) Show the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range;
(4) Indicate the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually;
(5) Be 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;
Council Staff Report (ID # 5237) Meeting of October 1, 2024 Updated: 9/27/2024 7:33 AM by Dina Lewis Page 2
(6) Indicate an effective date and date of any revisions; (7) Be retained by the employer and available for public inspection for not less than five years; and
(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 schedule from time to time when substantial changes to the salary schedule are being implemented. Each adoption of the salary schedule will incorporate salary changes resulting from any changes implemented by the City Manager 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 Memorandums of Understanding (MOUs) approved in July 2022;
3) Implementation of salary increases for Unrepresented Fremont Officials (UFO), Unrepresented Management Employees (UME) and Confidential Employees; 4) 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 approved and implemented through bargaining and/or City Manager budgetary 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:
• 2024.10.01 - Draft Resolution Adoption of Salary Schedule • Salary Schedule for Regular Full-time _Part-time Employees • Salary Schedule for Temporary Employees
RECOMMENDATION: Adopt a resolution approving the City of Fremont’s Salary Schedule as established by the City Manager.