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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: October 28, 2024
Report #:2408-3429
TITLE
Adoption of Revised Management and Professional Compensation Plan and Revised Salary Schedules for Management and Professional and the Service Employees International Association Local 521 in Alignment with Position Changes in the FY 2025 Adopted Budget; CEQA Status - not a project
RECOMMENDATION
Staff recommends that the City Council:
1) Adopt revised salary schedules for the Unrepresented Management and Professional Compensation plan and the Service Employees International Association Local 521 in alignment with approved position changes adopted in the FY 2025 budget. 2) Adopt a revised Management and Professional Compensation plan to clarify the implementation of a change in benefits known as Flexible Compensation.
EXECUTIVE SUMMARY
In adopting the FY 2025 operating budget, the Council authorized net 27.17 FTE position additions and adjustments. These changes included deleting existing positions, reclassifying existing positions, and the creation of new job classifications within the City’s unrepresented and represented employee groups. While funding was allocated for these position changes as part of the FY 2025 Adopted Budget, the final approved salary range is not adopted until the appropriate processes are completed, which sometimes requires a meet and confer with impacted labor unions.
Adopting the revised salary schedules (Attachments A and B) approves the final salary range for positions that have completed the meet and confer process and allows the City to begin the recruitment process for these critical positions.
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On December 19, 2022 (ID #15004), Council approved changes to benefits offerings provided to unrepresented Management and Professional employees in which Medical Premium Reimbursements were held flat (no increase), and in lieu of those increases, a set dollar amount of 0.58 cents was added to hourly wage rates in 2023 and 2024. This employee benefit offset, or “Flexible Compensation,” was not incorporated into the Management and Professional Compensation Plan for Council Appointed Officers at that time. Adopting the revision to the Management and Compensation Plan (Attachment C) ensures parity between Council Appointed Officers and unrepresented management as is customary related to overall benefits packages.
BACKGROUND
Under the Meyers Milias Brown Act “MMBA”, organized labor groups have a right to meet and confer over the impacts of changes to wages, benefits, and working conditions applied to job classifications within their bargaining unit. The City has fulfilled its requirement to meet and confer with represented groups on changes included in the staff recommendation.
The California Public Employees Retirement System (“CalPERS”) requires that every classification in active use by an employer within their system have a publicly adopted salary schedule or range within which the member organization will compensate employees. This publicly adopted salary schedule or range is the official document utilized for any employee final compensation factored by CalPERS for future pension calculations or obligations.
The “Flexible Compensation” described above represents an incremental shift of compensation from City coverage of medical insurance premium increases to employee salary. This provides flexibility for employees to choose how best to apply this compensation. Council Appointed Officers have individual employment agreements that outline annual salary and any specifically negotiated compensation; however, each employment agreement establishes that benefits are to be governed and in alignment with the Management and Professional Compensation Plan.
When changes were made to the benefits section of the Management and Professional Compensation plan, they were done in a manner that inadvertently excluded Council Appointed Officers from receiving the change in benefit. This cleanup language ensures any future changes of this nature strictly for these employee benefits will be applied to Council Appointed Officers without requiring separate action by Council.
ANALYSIS
Staff have completed the required meet and confer process and/or internal position creation required for each of the positions brought before council tonight, and all actions have been accomplished within the FY2025 adopted operating budget amounts set aside for these position changes. Adopting the staff recommendation and revised salary schedules is an administrative step related to the Council's previous direction through the budget process. The classifications adjusted in this report include: Forensic Specialist, Forensic Coordinator, 5 3
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Assistant Director Information Technology, Management Fellow, Recruitment Division Manager, and Senior Program Manager. Additional classifications remain under way including a Plan Review Manager and Animal Caretaker
Changes to the Management and Professional Compensation Plan are at the sole discretion of the City and no meet and confer obligation exists.
FISCAL/RESOURCE IMPACT
There is no fiscal impact anticipated from the actions recommended in this report as these adjustments have been factored into the FY 2025 Adopted Budget.
STAKEHOLDER ENGAGEMENT
City staff will post the revised salary schedules and revised Management and Professional Compensation Plan on the City’s website after Council adoption for public access.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because adopting a revised salary schedules and compensation plan is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A: SEIU Salary Schedule 2023 - 2024 (FY25)
Attachment B: Management and Conf Salary Schedule Final 2023 - 2024 (FY25) Attachment C: Management Compensation Plan 2023-2025 2nd Revision of 2024 APPROVED BY:
Sandra Blanch, Human Resources Director