DATE: December 17, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Unrepresented Salary and Benefits: Adopt a Resolution Amending the Salary and Benefits Resolution for Unrepresented Employees
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) amending the Salary and Benefits Resolution for Unrepresented Employees (Attachment III).
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 (“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, 2027.
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 the following changes for all Unrepresented classifications, (a) increase the alternate benefits by one hundred dollars ($100.00) per tier, (b) addition of Juneteenth holiday, and (c) equity salary adjustments for classifications which were three percent (3%) or more under the market median based on a total compensation study completed in December 2023.
Cost-of-Living Adjustments (COLA) for the Unrepresented Non-Executive classifications include:
Five percent (5%) salary adjustment effective October 1, 2024.
Four percent (4%) salary adjustment effective July 1, 2025.
Three percent (3%) salary adjustment effective July 1, 2026.
Additionally, the City added Longevity Pay for all Unrepresented Non-Executive classifications.
All Unrepresented Executive classifications will receive the following COLA salary adjustments:
Four percent (4%) salary adjustment effective October 1, 2024.
Four percent (4%) salary adjustment effective July 1, 2025.
Four percent (4%) salary adjustment effective July 1, 2026.
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. Key changes are summarized in Table 1 below.
Table 1: Key Proposed Changes
Resolution Term
Summary of Changes
Effective Date
All Unrepresented Classifications
5.04 Alternate Benefits
Increase Alternate Benefits by one hundred dollars ($100.00) per tier as follows:
Employee only - $310.00/month
Employee plus one (1) dependent - $480.00/month
Employee plus two (2+) dependents - $600.00/month
July 1, 2024
7.01 Holidays Observed by the City
Add Juneteenth to the list of existing City observed holidays.
July 1, 2024
Unrepresented Non-Executive Classifications
6.13 Salaries
Positions that are three percent (3%) or more under the market median (based on total compensation) shall receive an equity adjustment that brings them to the total compensation median.
July 1, 2024
6.15 Salary Adjustments
FY 2024 - five percent (5%) COLA
October 1, 2024
FY 2025 – four percent (4%) COLA
July 1, 2025
FY 2026 – three percent (3%) COLA
July 1, 2026
NEW 6.17 Longevity Pay
Longevity Pay Tiers:
15 years – 2.5%
20 years – 2.5%
25 years – 2.5%
Maximum premium of 7.5%
July 1, 2024
Unrepresented Executive Classifications
6.13 Salaries
Positions that are three percent (3%) or more under the market median (based on total compensation) shall receive an equity adjustment that brings them to the total compensation median.
July 1, 2024
6.15 Salary Adjustments
FY 2024 - four percent (4%) COLA
October 1, 2024
FY 2025 – four percent (4%) COLA
July 1, 2025
FY 2026 – four percent (4%) COLA
July 1, 2026
FISCAL IMPACT
If approved, the proposed Salary and Benefits Resolution as amended would result in a fiscal impact of $2,704,250 for the term of the contract (FY 2025 - FY 2027).
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: Marisa Guerrero, Human Resources Manager Recommended by: Brittney Frye, Director of Human Resources Approved by:
____________________________
Dustin Claussen, Interim City Manager