Finance & Management Committee
July 11, 2023
AGENDA REPORT
TO: Jestin D. Johnson FROM: Ian Appleyard
City Administrator HRM Director
SUBJECT: Amendment to Ordinance No. 12187
C.M.S. (The Salary Ordinance) for
Mayor
DATE: June 11, 2023
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt An Ordinance Amending The Salary Schedule Of Ordinance No. 12187 C.M.S. (“Salary Ordinance”) To Increase The Salary Of The Mayor.
EXECUTIVE SUMMARY
Adoption of the proposed ordinance will ensure the accuracy of the City’s classification plan and Salary Schedule. This ordinance includes a routine action to modify the salary of the Mayor in accordance with a Charter-mandated salary adjustment.
BACKGROUND / LEGISLATIVE HISTORY
The Salary Ordinance (Ordinance No. 12187 C.M.S.) establishes salaries and classification titles of positions. The Ordinance is amended regularly to accommodate the City’s evolving classification needs. Pursuant to the Personnel Manual (Civil Service Rules), Section 3.04, components of the City’s Classification Plan shall be administered and maintained by the Personnel Director with the approval of the Civil Service Board.
As applicable regulations or departmental operations change, Human Resources Management (HRM) staff consults with departments regarding classification needs and mandated changes.
These changes require HRM to amend the Salary Ordinance to add, amend, or delete certain classifications. The proposed Salary Ordinance Amendment accompanying this report updates the salary schedule.
The Oakland City Charter Section 300 specifies the formula for setting the salary level for the Mayor. It states that the City Council shall set the salary as follows:
"The salary shall be set by the Council, which shall be not less than 70% nor more than 90% of the average salaries of City Managers/Chief Executive Officers of California cities within the three immediate higher and the three immediate lower cities in population to Oakland. The Mayor's salary shall be reviewed by the City Council in odd- numbered years and may be adjusted by the Council as provided for herein." Jestin Johnson (Jun 30, 2023 01:40 PDT)
Jun 30, 2023
Jestin D. Johnson, City Administrator
Subject: Salary Ordinance Amendment for Mayor
Date: June 11, 2023 Page 2
Finance & Management Committee
July 11, 2023
ANALYSIS AND POLICY ALTERNATIVES
As stated above, the proposed action is recommended to update the Salary Schedule of the Salary Ordinance.
Citywide Priorities include (1) holistic community safety, (2) housing, economic, and cultural security, (3) vibrant, sustainable infrastructure, and (4) responsive, trustworthy government. This is a charter-mandated salary adjustment process for this elected official position that prescribes as specific methodology for adjusting the salary, which is subject to City Council review and approval. HRM facilitates the implementation of salary modifications through the salary ordinance amendment process. The adoption of the proposed ordinance advances the Citywide Priority of responsive, trustworthy government. Trust and Compliance are prime components of this priority. Specifically, the City’s compensation structure should maintain a fair and equitable distribution of salaries for classifications in the same series and for those in a reporting relationship; reasonable differentials in salary should ensure proper alignment with duties and responsibilities. Therefore, this recommendation will contribute to a more reasonable salary differential for the Mayor position despite being lower than the maximum salary of the directly reporting positions.
The salary rates of the City Managers/Chief Executive Officers in the six cities were obtained by contacting the personnel department or City Manager’s Office of each city. The actual salary rates are listed in the table below.
City Job Title Population*
Actual
Annual
Salary
Fresno City Manager 545,567 266,796.00
Sacramento City Manager 528,001 400,652.00
Long Beach City Manager 451,307 329,954.33
Bakersfield City Manager 410,647 240,000.80
Anaheim City Manager 344,461 314,897.00
Stockton City Manager 321,819 300,863.50
Average Salary 308,860.61
70% of Average
Salary 216,202.42
90% of Average
Salary 277,974.54
Oakland Mayor 430,553 202,999.94
[1] The population data are from the 2022 Population Estimates Program and 2021 American Community Survey: www.california-demographics.com/cities_by_population. [2] Fresno and Oakland both function under a strong mayor form of government, while the remaining five cities have a council-manager form of government. The Fresno Mayor's salary is $266,796.00. [3] Based on changes in demographic/population trends, Stockton is being included for the first time.
Historically, Santa Ana was one of the three immediate lower cities by population.
Jestin D. Johnson, City Administrator
Subject: Salary Ordinance Amendment for Mayor
Date: June 11, 2023 Page 3
Finance & Management Committee
July 11, 2023
Based on the above survey data and City Charter Section 300 formula, the potential annual salary range for the Oakland Mayor is $216,202.42 (70% of the average) to $277,974.54 (90% of the average). The Mayor’s current annual salary is a flat amount of $202,999.94, and the City Council may set the Mayor’s salary within the range of the City Charter Section formula above.
This range exceeds the Mayor’s annual salary by approximately $13,202 to $74,975 per year.
Bay Area City Manager/Chief Executive Officer salaries are not considered under the City Charter-mandated salary formula. However, the Mayor’s salary is $21,973.86 annually less than the subordinate Special Assistant to the Mayor III. This is not a proper or equitable alignment between a department head with the responsibility for overseeing the City’s leadership.
Therefore, Staff recommends City Council adopt the salary at 90% of the average salaries of City Managers/Chief Executive Officers of California cities within the three immediate higher and the three immediate lower cities in population to Oakland, resulting in a new, flat annual salary of $277,974.54 ($23,164.55 monthly).
FISCAL IMPACT
The increase in salary for the Mayor classification is being accounted for in the department budget as part of the biennial budget planning for FY 2023-25.
PUBLIC OUTREACH / INTEREST
No public outreach was deemed necessary other than the required posting on the City’s website.
COORDINATION
Human Resources Management prepared this report in coordination with the City Attorney’s Office and the Finance Department Budget Bureau.
SUSTAINABLE OPPORTUNITIES
Economic: There are no economic opportunities associated with this report.
Environmental: There are no environmental opportunities associated with this report.
Race & Equity: There are no social equity opportunities associated with this report.
Jestin D. Johnson, City Administrator
Subject: Salary Ordinance Amendment for Mayor
Date: June 11, 2023 Page 4
Finance & Management Committee
July 11, 2023
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt An Ordinance Amending The Salary Schedule Of Ordinance No. 12187 C.M.S. (“Salary Ordinance”) To Increase The Salary Of The Mayor.
For questions regarding this report, please contact Ian Appleyard, Director of Human Resources Management, at (510) 238-6450.
Respectfully submitted,
IAN APPLEYARD
Director, Human Resources Management
Reviewed by:
Tina Pruett, Human Resources Manager
Recruitment & Classification Division
Prepared by:
Jaime Pritchett, Principal HR Analyst
Recruitment & Classification Division