AGENDA REPORT
TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF HUMAN RESOURCES
JULY 11, 2023
SUBJECT: RESOLUTION TO ADOPT A COMPENSATION PLAN FOR THE
UNREPRESENTED MID -MANAGEMENT AND MANAGEMENT EMPLOYEES
FISCAL
IMPACT: FISCAL YEAR 2023-24 $ 757,911 (Estimated)
FISCAL YEAR 2024-25 $ 381,233 (Estimated)
TOTAL $1,139,144
SUMMARY:
The City and the Placentia's full-time workforce consists of employees that are represented by bargaining groups including the Police and Fire Management, Police Officers, Firefighters, and general employees as well as unrepresented Mid -Management and Management employees.
While the Unrepresented employees are not a formal bargaining unit, a resolution to provide certain compensation and benefits consistent with the balance of the organization is appropriate and requires City Council approval. This action approves a resolution to provide a compensation plan to the members of the Unrepresented Mid -Management and Management Employees.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt Resolution R-2023-56 approving a compensation plan for the Unrepresented Mid -Management and Management Employees for the period of July 1, 2023, through June 30, 2025; and
2. Adopt Resolution No. R-2023-57, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
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July 11, 2023
City Council Agenda
July 11, 2023
DISCUSSION:
The Memorandums of Understanding (MOUs) between the City and the represented bargaining groups all expired on June 30, 2023. With City Council direction and cooperation from the Placentia Police Officers' Association (PPOA), the Placentia Firefighters' Association (PFA), and the Placentia City Employees' Association (PCEA), the negotiation process for these groups have been completed. The negotiation process is continuing with the Placentia Police and Fire Management Association (PPFMA). The remaining group of employees are the Unrepresented Mid -Management and Management employees. Mid -Management includes the positions of Management Analyst and above including Division Managers. Management employees include the Department Heads and the City Administrator.
The provisions of the resolution include, but are not limited to the following compensation and benefit adjustments:
1. Term: July 1, 2023 — June 30, 2025.
2. Mid -Management Employees Market Rate Adjustments: 5% market rate adjustments for Mid -Management classifications effective the full pay period of July 2023 and 4% effective the full pay period of July 2024.
3. One -Time Compensation: Mid -Management Employees in paid status as of the approval and adoption of the Compensation Plan will receive a one-time 5%, non-PERsable bonus, based upon adjusted wages as of July 2023.
4. Management Employees Market Rate Adjustments: 4% market rate adjustments for Management classifications effective the full pay period of July 2023 and 3% effective the full pay period of July 2024.
5. One -Time Compensation: Management Employees in paid status as of the approval and adoption of the Compensation Plan will receive a one-time 4%, non-PERsable bonus, based upon adjusted wages as of July 2023.
6. Holiday Closure: continue Holiday leave for the holiday closure for the term of the agreement.
7. Bereavement leave increased from 3 days to 5 days.
8. Management Employees will have an increase in Management Leave from 80 to 100 hours.
FISCAL IMPACT:
The total cost for the market rate adjustments is estimated to be:
Fiscal Year 23-24 Fiscal Year 24-25
Mid -Management Salary Increases s $317,544 $256,743
Mid -Management 5% One Time Payment
(Base rate) $151,451 ' $0
Management Salary Increases* $212,026 ' $124,490
Management 5% One Time Payment (Base $76,890 ' $0
rate)*
Total $757,9111 $381,233
*Includes City Administrator
City Council Agenda
July 11, 2023
Funding for wage increases included in the FY23/24 Adopted Budget. Funding for One-time payment proposed to come from unassigned fund balance.
Prepared by: Reviewed and approved:
Alice Burnett Jennifer Lamp man
Director of Human Resources Director of Finance
Reviewed and approved:
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Ronna Ramirez
Deputy City Administrator
Damien R. Arrula
City Administrator
Attachments:
1. Resolution No. R-2023-56
2. Compensation Plan
3. Resolution No. R-2023-57 Budget Amendment