DATE: June 21, 2022
TO: Mayor and City Council
FROM: Assistant City Manager/Interim Director of Human Resources SUBJECT: Unrepresented Salary and Benefits: Adopt a Resolution Amending the Salary and Benefits Resolution for Unrepresented Executives, Management, City Manager, Human Resources, and City Attorney Employees
RECOMMENDATION
That the City Council adopts a Resolution (Attachment II) amending the Salary and Benefits Resolution for Unrepresented Executives, Management, City Manager, Human Resources, and City Attorney Employees.
SUMMARY
Following the completion of contract negotiations with its miscellaneous bargaining groups, the City has proposed modifications to the current Unrepresented Salary and Benefits Resolution which, if approved, would be substantially similar to the benefits recently negotiated in the miscellaneous groups’ contracts. The proposed Resolution would extend through June 30, 2024.
BACKGROUND AND DISCUSSION
Under the current Resolution, the City worked hard to achieve and maintain fiscal sustainability. Though the City continues to face the challenges of growing pension and retiree health liabilities, the City also recognizes it will need to provide competitive salary increases to maintain its ability to recruit and retain employees. In doing so, however, the City also sought to maintain its cost-sharing structure for major employee benefits, including health and retirement, to help mitigate those growing costs.
The proposed amendment to the Unrepresented Salary and Benefits Resolution includes a three percent (3%) COLA effective the pay period including July 1, 2022 (FY 2023), and a five percent (5%) COLA effective the pay period including July 1, 2023 (FY 2024).
The City and labor groups also agreed to a handful of operational, administrative, and legal updates to the miscellaneous bargaining unit agreements, which have generally been included in the proposed changes to the Unrepresented Resolution. Of note, the City will (a) modify the way in which employees may request vacation cash outs, (b) consistent with other non-exempt miscellaneous groups, count paid leave time towards the 40-hour threshold for the purpose of determining FLSA overtime eligibility, and (c) modify the health & wellness and professional development benefits. Key changes are summarized in Table 1 below.
Table 1: Key Proposed Changes
Resolution Term
Summary of Changes
Effective Date
Salaries
FY 2023 – 3% COLA
July 1, 2022
FY 2024 – 5% COLA
July 1, 2023
Overtime Compensation
Count paid leave hours towards 40-hour threshold in determining overtime eligibility for non-exempt staff Effective following Council adoption
Professional Development
Increase benefit for non-exempt employees from $350 annually to $500 consistent with exempt staff Effective following Council adoption
Health and Wellness
Maintain annual cap but allow employees to seek reimbursement in lump sums as opposed to monthly and expand items covered under reimbursement to include equipment, consistent with the City’s policy during the pandemic Effective following Council adoption
FISCAL IMPACT
If approved, the proposed Salary and Benefits Resolution as amended would result in an impact of approximately $109,000 to the General Fund spread across FY 2023 & FY 2024.
The proposed changes result in an estimated savings of approximately $822,000 in comparison to projections in the General Fund budget model over the MOUperiod (FY 2019-FY 2024). The proposed changes result in an estimated savings of approximately $822,000 in comparison to projections in the General Fund budget model over the MOUperiod (FY 2019-FY 2024).
STRATEGIC ROADMAP
This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
If adopted, Human Resources staff will finalize the Resolution and implement the above changes in coordination with Finance.
Prepared by: Kakshi Master, Acting Deputy Director of Human Resources Recommended by: Regina Youngblood, Assistant City Manager/Interim Director of Human Resources Approved by:
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Kelly McAdoo, City Manager