Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 22, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Karla Mattocks, Human Resources Officer
SUBJECT: Resolution to Amend Executive Management and Management and Confidential Employee Compensation for 2024-2027
RECOMMENDATION
Adopt the Resolution amending the Classification and Compensation Plan for Executive Management and Management and Confidential employees for a three-year term of 2024- 2027.
BACKGROUND
The Executive Management and Management and Confidential employees are management-level employees across multiple City departments. Executive Management employees are department directors along with the City Manager while Management and Confidential employees are mid-management/confidential employees in the City Manager’s Office, Administrative Services, Community Development, and Public Works departments.
There is a separate employee group for Police Department Management and Confidential employees.
In May through July 2024, the City Manager met with the Executive Management and Management and Confidential employees to discuss compensation and benefits interests.
These discussions were occurring concurrently with formal bargaining sessions between the City and the City’s two labor unions, the Police Officers Association (POA) and Service Employees International Union (SEIU) on developing updated MOUs. Management employees shared numerous interests with regards to cost-of-living adjustments, health insurance premiums, and other items.
The FY 2024-25 budget maintains current service levels and continues to make targeted investments while adhering to the Council’s policy of maintaining reserves of at least 25% of the operating budget. Given this fiscal outlook, the City Manager is recommending an adjustment in the compensation and benefits structure for both the Executive Management and Management and Confidential employees to keep these positions competitive with comparable cities.
These recommended adjustments would provide Executive Management and Management and Confidential members with an annual cost of living salary adjustment of 4% on August 5, 2024, 3% on July 1, 2025, and 3% on July 1, 2026, as well as an increase to the City’s healthcare contribution to equal 100% of the lowest-cost healthcare plan for the employee. These recommendations are equivalent to recommendations for Police Management and Confidential employees and Service Employees International Union employees in separate Staff Report: Executive Management and Management and Confidential Resolutions 2024-2027 Page 2 July 22, 2024
items on this agenda. In addition, the City’s matching contribution for deferred compensation will be increased to $200 per month for the Management and Confidential employees.
FISCAL IMPACT
This amended compensation and benefits structure is projected to cost $210,445 and is included in the FY 2024-25 budget.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the Resolution amending the Classification and Compensation Plan for Executive Management and Management and Confidential employees; or
2. Provide alternate direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Executive Management and Management and Confidential Resolution Exhibit A – Executive Management and Management and Confidential Agreements 2024- 2027
Exhibit B – Management and Confidential Agreement and Executive and Management and Confidential Salary Schedules.
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, APPROVING THE PROPOSED ADJUSTMENTS WITH
EXECUTIVE MANAGEMENT EMPLOYEES AND MANAGEMENT AND
CONFIDENTIAL EMPLOYEES FOR THE PERIOD OF AUGUST 5, 2024 THROUGH JUNE 30, 2027
WHEREAS, Section 37206 of the California Government Code requires the City Council to prescribe the time and method of paying salaries and wages of employees of the City; and
WHEREAS, the City Manager, and/or designated representative(s), have met with the Executive Management and Management and Confidential groups to discuss the amended compensation and benefits structure set forth in Exhibits A and B; and WHEREAS, the City Council has reviewed the terms and conditions set forth therein.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby:
1. Approve the new amended compensation and benefits structure for Executive Management employees;
2. Authorizes the City Manager and/or Mayor to execute any necessary agreements to institute the approved compensation and benefits structure.
On motion by Council Member _____, seconded by Council Member ____, and on the following roll-call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
RECUSED: Council Members –
the foregoing Resolution was PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of the City of Grover Beach, California this 22nd day of July, 2024.
KAREN BRIGHT, MAYOR
Attest:
WENDI B. SIMS, CITY CLERK
Attachment 1
**DRAFT**
Executive Management Employee Compensation & Benefits
August 5, 2024 to June 30, 2027
COLA
Cost of living increase of 4% on August 5, 2021, 3% on July 1, 2025 and 3% on July 1, 2026.
Salary
Salaries have been established by range as shown in attached salary schedule.
Regular Pay
Base Pay plus Incentive Pay
Uniform
Any employee required to wear uniforms will be provided with them. Police Executive Management Employees will receive a Uniform Allowance of $1,400 per year (pro-rated on each paycheck.) The cost of required safety equipment such as steel-toed boots and safety glasses is reimbursable.
Administrative Leave
Exempt employees receive 88 hours of Administrative Leave in January of each year. If hired during the year, the leave shall be pro-rated. Administrative Leave may be used at the discretion of the employee with the approval of the City Manager. Any unused balance existing at the end of the calendar year will be permitted to be carried over into the next calendar year.
Vacation
0 – 1 year of service 10 days per year 38 days of maximum accumulation 1 – 2 years of service 11 days per year 38 days of maximum accumulation 2 – 3 years of service 12 days per year 38 days of maximum accumulation 3 – 4 years of service 13 days per year 38 days of maximum accumulation 4 – 5 years of service 14 days per year 38 days of maximum accumulation 5 – 7 years of service 15 days per year 43 days of maximum accumulation 7 – 9 years of service 16 days per year 43 days of maximum accumulation 10 or more years of service 20 days per year 79 days of maximum accumulation The employee, through the payroll system portal, has access to their leave bank summaries and shall manage their leave times and requests based on the standards set in this MOU. If for any reason an employee accrues Vacation Leave to the maximum accrual permitted by this MOU, the employee will cease accruing Vacation Leave until such time as their accumulated leave balance is reduced to a level below the maximum. The City Manager may approve limited exceptions to accumulations in excess of the maximum accrual permitted as long as the employee has submitted a written plan on how to reduce their leave accumulation to below the maximum accrual limit.
An employee may exchange vacation leave hours for cash. Upon request, the City shall buy back vacation leave hours accumulated in excess of sixty percent (60%) of the Employee’s maximum authorized accrual amount. The payment for these vacation leave hours shall be at one hundred percent (100%) of the employee’s regular hourly pay rate.
Exhibit A
The employee’s request shall be in writing, and may be made once annually during the last two months of the calendar year. No employee may receive payment under the provisions of this section for more than eighty (80) hours of vacation leave in any one calendar year. a. In accordance with the IRS constructive receipt doctrine, in order to buy-back vacation leave, an employee must make a prior year irrevocable election. The election form will be provided by the City so that employees can make their election in November or December of the calendar year.
Holidays
The employee shall receive 14 paid holidays per year. Lincoln’s Birthday, shall be observed on the 2nd Monday in February if all other employee groups agree. Otherwise observance of Lincoln’s Birthday holiday shall be on the actual day of February 12th. With approval of this agreement, all employees in this group are being given an additional half day on Christmas Eve and New Year’s Eve.
Sick Leave
The employee shall accrue 12 Sick Leave days per year. The Sick Leave Accrual limit is 2,000 hours. Sick Leave may be applied to a retiring employee’s CalPERS service credit within compliance of existing PERS policies and applicable laws. If the sick Leave is not applied toward the retirement credit, only 672 hours of accrued Sick Leave will be paid upon retirement, or when an employee with over 20 years of service leaves City employment.
Retirement
The City belongs to the Public Employees Retirement System (CalPERS).
CalPERS Miscellaneous 2.5% at Age 55 with One-Year Final Compensation is provided for non-safety Executive Management employees, who qualify as “Classic Employee” under CalPERS. Miscellaneous employees shall pay the full portion of the employee’s retirement contribution under CalPERS.
Employees hired after January 1, 2013 fall under Public Employees’ Pension Reform Act, or “PEPRA”, CalPERS Miscellaneous 2% at age 62 retirement Plan with Three-Year Final Average Salary Compensation for Non-Safety Executive Management employees and shall pay the full portion of the employees’ retirement contribution under CalPERS.
CalPERS Local Safety 3% at Age 55 with One-Year Final Compensation is provide for Sworn Public Safety Executive Management employees, who qualify as a “Classic Employee” under CalPERS. Sworn Safety employees shall pay the full portion of the employee’s retirement contribution under CalPERS.
Employees hired after January 1, 2013 fall under Public Employees’ Pension Reform Act, or “PEPRA”, CalPERS Local Safety 2.7% at Age 57 Retirement plan with Three-Year Final Average Salary Compensation. Each Public Safety Executive Management employee shall pay the full employee portion of CalPERS.
All employees pay member contributions on a pre-tax basis (IRS 414(h)2). The City also is part of the Social Security System. Employees pay their share of Social security as a payroll deduction.
Group Insurance
City pays full medical, vision, dental and life insurance ($125,000 policy for employee + 5,000 for eligible spouse and $2,000 per eligible child) for employees, and contributes towards dependent coverage for family members only in the following amounts:
Employee + 1 Dependent: $ 601.90
Employee + Full Family: $1,011.25
The City provides the benefits of the Public Employees Medical and Hospital Care Act (PEMHCA) to all eligible employees at a contribution level equivalent to the cost of the PERS Select PPO plan for medical coverage. Employee Only coverage will be paid at the PERS Select PPO rate.
The City’s payment amount will include the amount set forth in the CalPERS Health Care Resolution. If an employee elects to upgrade to a different plan, the employee will pay the difference (via payroll deduction) between the plan and the PERS Select PPO. The City will continue to contribute on a monthly basis up to the maximum of the amounts shown above toward the cost of dependent care coverage for health insurance.
Cafeteria Plan
In accordance with IRS Code Section 125, active employees participating in the City’s full flex cafeteria plan receive a monthly flex dollar allowance to purchase benefits. The allowance is listed above under group insurance.
The monthly flex dollar allowance may be used in accordance with the terms of the cafeteria plan to purchase benefits such as medical, dental, and vision insurance coverage, or any other benefits the City may offer from time to time, or may be converted to taxable income as listed below:
If an employee has health, dental and vision insurance coverage through a spouse, dependent, or a former employer and provides proof of other coverage to the Human Resources Department, the employee may elect to waive the City’s health insurance coverage and elect to use flex dollars, equal to $500.00 per month which when elected is taxable income.
Employee Assistance Program
The City shall pay the Employee Assistance Program premium with a minimum of three clinical consultations per incident.
Deferred Compensation
The City will contribute up to $200 per month maximum for employees who participate in one of two existing deferred compensation plans, matched on a dollar-for-dollar basis.
Long-Term Disability
City paid premium.
Short-Term Disability
Employee paid California State Disability Insurance (SDI) as a payroll deduction.
Management & Confidential
Employee Compensation & Benefits
August 5, 2024 to June 30, 2027
COLA
Cost of living increase of 4% on August 5, 2024, 3% on July 1, 2025 and 3% on July 1, 2026.
Salary
Salaries have been established by range as shown in attached salary schedule.
Regular Pay
Base Pay plus Incentive Pay. Shall not include Standby Pay, Call-Out Pay, or Overtime Pay.
Education Incentive
Education incentive pay is provided for certificates or degrees over and above what is required for the position with approval from the City Manager. 2.5% for a Master’s Degree. In no instance shall Education Incentive pay exceed 2.5%.
Education Reimbursement Program
Up to $2000 in educational expenses is available per fiscal year upon satisfactory completion of preapproved college-level classes.
Uniform
Any employee required to wear uniforms will be provided with them. The cost of required safety equipment such as steel-toed boots and safety glasses is reimbursable.
Administrative Leave
Exempt employees receive 88 hours of Administrative Leave in January of each year. If hired during the year, the leave shall be pro-rated. Administrative Leave may be used at the discretion of the employee with the approval of the Department Director. Any unused balance existing at the end of the calendar year will be permitted to be carried over into the next calendar year.
Vacation
0 – 1 year of service 10 days per year 38 days of maximum accumulation 1 – 2 years of service 11 days per year 38 days of maximum accumulation 2 – 3 years of service 12 days per year 38 days of maximum accumulation 3 – 4 years of service 13 days per year 38 days of maximum accumulation 4 – 5 years of service 14 days per year 38 days of maximum accumulation 5 – 7 years of service 15 days per year 43 days of maximum accumulation 7 – 9 years of service 16 days per year 43 days of maximum accumulation 10 or more years of service 20 days per year 79 days of maximum accumulation The employee, through the payroll system portal, has access to their leave bank summaries and shall manage their leave times and requests based on the standards set in this MOU. If for any reason an employee accrues Vacation Leave to the maximum accrual permitted by this MOU, the employee will cease accruing Vacation Leave until such time as their accumulated leave balance is reduced to a level below the maximum. The City Manager may approve limited exceptions to accumulations in excess of the maximum accrual permitted as long as the employee has submitted a written plan on how to reduce their leave accumulation to below the maximum accrual limit.
An employee may exchange vacation leave hours for cash. Upon request, the City shall buy back vacation leave hours accumulated in excess of sixty percent (60%) of the Employee’s maximum authorized accrual amount. The payment for these vacation leave hours shall be at one hundred percent (100%) of the employee’s regular hourly pay rate.
The employees request shall be in writing, and may be made once annually during the last two months of the calendar year. No employee may receive payment under the provisions of this section for more than eighty (80) hours of vacation leave in any one calendar year. a. In accordance with the IRS constructive receipt doctrine, in order to buy-back vacation leave, an employee must make a prior year irrevocable election. The election form will be provided by the City so that employees can make their election in November or December of the calendar year.
Holidays
The employee shall receive 14 paid holidays per year. Lincoln’s Birthday, shall be observed on the 2nd Monday in February if all other employee groups agree. Otherwise observance of Lincoln’s Birthday holiday shall be on the actual day of February 12th. With approval of this agreement, all employees in this group are being provided an additional half day on Christmas Eve and New Year’s Eve.
Sick Leave
The employee shall accrue 12 Sick Leave days per year. The Sick Leave Accrual limit is 2,000 hours. Sick Leave may be applied to a retiring employee’s CalPERS service credit within compliance of existing PERS policies and applicable laws. If the sick Leave is not applied toward the retirement credit, only 672 hours of accrued Sick Leave will be paid upon retirement, or when an employee with over 20 years of service leaves City employment.
Employees who have accumulated 672 hours of sick leave may request to be reimbursed in November of each year for ½ of any sick leave in excess of 672 hours up to a maximum of 48 hours. (i.e. 96 hours will be deducted from total sick accruals in exchange for 48 hours cashed out.) Retirement
The City belongs to the Public Employees Retirement System (CalPERS).
CalPERS Miscellaneous 2.5% at Age 55 with One-Year Final Compensation is provided for non-safety Executive Management employees, who qualify as “Classic Employee” under CalPERS. Miscellaneous employees shall pay the full portion of the employee’s retirement contribution under CalPERS.
Employees hired after January 1, 2013 fall under Public Employees’ Pension Reform Act, or “PEPRA”, CalPERS Miscellaneous 2% at age 62 retirement Plan with Three-Year Final Average Salary Compensation for Non-Safety Executive Management employees and shall pay the full portion of the employees’ retirement contribution under CalPERS.
CalPERS Local Safety 3% at Age 55 with One-Year Final Compensation is provide for Sworn Public Safety Executive Management employees, who qualify as a “Classic Employee” under CalPERS. Sworn Safety employees shall pay the full portion of the employee’s retirement contribution under CalPERS.
Employees hired after January 1, 2013 fall under Public Employees’ Pension Reform Act, or “PEPRA”, CalPERS Local Safety 2.7% at Age 57 Retirement plan with Three-Year Final Average Salary Compensation. Each Public Safety Executive Management employee shall pay the full employee portion of CalPERS.
All employees pay member contributions on a pre-tax basis (IRS 414(h)2). The City also is part of the Social Security System. Employees pay their share of Social security as a payroll deduction.
Group Insurance
City pays the employee’s portion of CalPERS medical. Vision, and dental insurance costs for plans provided by the city are paid by the employee. The City shall pay for group life insurance coverage ($100,000 policy for employee + 5,000 for eligible spouse and $2,000 per eligible child) for employees.
The City contributes towards dependent health insurance coverage for family members only in the following amounts:
Employee + 1 Dependent: $ 601.85
Employee + Full Family: $1,011.20
The City provides the benefits of the Public Employees Medical and Hospital Care Act (PEMHCA) to all eligible employees at a contribution level equivalent to the cost of the PERS Select PPO plan for medical coverage. Employee Only coverage will be paid at the PERS Select PPO rate.
The City’s payment amount will include the amount set forth in the CalPERS Health Care Resolution. If an employee elects to upgrade to a different plan, the employee will pay the difference (via payroll deduction) between the plan and the PERS Select PPO. The City will continue to contribute on a monthly basis up to the maximum of the amounts shown above toward the cost of dependent care coverage for health insurance.
Cafeteria Plan
In accordance with IRS Code Section 125, active employees participating in the City’s full flex cafeteria plan receive a monthly flex dollar allowance to purchase benefits. The allowance is listed above under group insurance.
The monthly flex dollar allowance may be used in accordance with the terms of the cafeteria plan to purchase benefits such as medical, dental, and vision insurance coverage, or any other benefits the City may offer from time to time, or may be converted to taxable income as listed below:
If an employee has group health, dental and vision insurance coverage through a spouse, dependent, or a former employer and provides proof of other coverage to the Human Resources Department, the employee may elect to waive the City’s health insurance coverage and elect to use flex dollars, equal to $500.00 per month which when elected is taxable income.
Employee Assistance Program
The City shall pay the Employee Assistance Program premium with a minimum of three clinical consultations per incident.
Deferred Compensation
The City will contribute up to $200 per month maximum for employees who participate in one of two existing deferred compensation plans, matched on a dollar-for-dollar basis.
Long-Term Disability
City paid premium.
Short-Term Disability
Employee paid California State Disability Insurance (SDI) as a payroll deduction.
Exhibit B
City of Grover Beach
STAFFING DETAIL & SALARY SCHEDULE
Executive Job Classifications
Executive Management MIN MAX
City Manager * 21,599
Police Chief * 14,436 15,158 15,916 16,711 17,547 18,424 Assistant City Manager * 13,354 14,022 14,723 15,459 16,232 17,043 Administrative Services Director * 12,240 12,852 13,495 14,169 14,878 15,622 Community Development Director * 12,180 12,789 13,428 14,100 14,805 15,545 Public Works Director/City Engineer * 12,180 12,789 13,428 14,100 14,805 15,545 City of Grover Beach
STAFFING DETAIL & SALARY SCHEDULE
Management and Confidential
Job Classifications
Management &
Confidential A B C D E F
Senior Engineer * 8,643 9,075 9,529 10,005 10,506 11,031 Capital Improvement Project Manager * 8,403 8,823 9,264 9,728 10,214 10,725 Human Resources Officer * 8,420 8,841 9,283 9,747 10,235 10,746 Finance Manager * 8,375 8,794 9,233 9,695 10,180 10,689 Public Works Superintendent * 8,124 8,530 8,957 9,405 9,875 10,369 Senior Planner * 8,108 8,513 8,939 9,386 9,855 10,348
City Clerk/Executive Assistant * 7,946 8,343 8,760 9,198 9,658 10,141 IT Specialist * 7,395 7,765 8,153 8,561 8,989 9,438
Associate Engineer * 7,282 7,646 8,028 8,430 8,851 9,294 Public Works Supervisor * 6,402 6,722 7,058 7,411 7,782 8,171 Community Services Supervisor * 6,308 6,623 6,955 7,302 7,667 8,051 Management Analyst * 6,104 6,409 6,730 7,066 7,419 7,790 Administrative Analyst (Confidential) 5,242 5,504 5,779 6,068 6,372 6,690 Accounting Specialist 5,398 5,668 5,951 6,249 6,561 6,889 Deputy City Clerk/Administrative
Specialist (Conf) 4,854 5,097 5,352 5,619 5,900 6,195