Administrative
Report
H.9., File # 22-3777 Meeting Date: 3/1/2022
To: MAYOR AND CITY COUNCIL
From: DIANE STRICKFADEN, DIRECTOR OF HUMAN RESOURCES
TITLE
APPROVE AN UPDATED PAY AND BENEFITS PLAN FOR THE MANAGEMENT AND
CONFIDENTIAL EMPLOYEE GROUP TO INCORPORATE AMENDMENTS ASSOCIATED WITH
RECENT CITY COUNCIL, ADMINISTRATIVE, AND CALPERS ACTIONS ADOPT BY TITLE ONLY RESOLUTION NO. CC-2203-011, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, UPDATING THE PAY AND
BENEFITS PLAN FOR MANAGEMENT AND CONFIDENTIAL EMPLOYEES
EXECUTIVE SUMMARY
Recently, it has become necessary to execute revisions to the Management and Confidential Pay Plan to incorporate updates that correspond with approved City Council, administrative and CalPERS actions. The proposed Pay and Benefits plan, if adopted, will provide covered employees with all of the same terms and conditions of employment as in the existing plan, with the exception of the following items:
City Manager’s Office Reorganization - Assistant to the City Manager Position On December 7, 2021, the City Council approved a re-organization to staffing in the City Manager’s Office by creating two new Assistant to the City Manager positions. With this reorganization, the Council approved an updated Assistant to the City Manager salary range of $9,000 - $11,500 per month effective January 2022. The attached Pay Plan incorporates this change into the salary tables of Section 1.
Change of Employee Bargaining Group for the Deputy Director of Public Works Position The Deputy Director of Public Works oversees department operations, and serves as a second in command for the operations/logistical side of Public Works. In addition, the Deputy Director has traditionally been an unclassified, at-will position similar to the positions assigned to the City’s management and confidential employee group. The Deputy Director position is a member of the Professional and Supervisory Association (PSA), but by organizational structure is required to supervise other members of the PSA group.
Staff recently met and conferred with the PSA group regarding a request to move the Deputy Director of Public Works position into the Management and Confidential employee group, and PSA agreed.
This move will align the Deputy Director more closely with the City Engineer position and serve as a “second in command” over operations in the same way the City Engineer serves as a “second in command” over engineering. In addition, it will remove any potential conflicts that may arise from
H.9., File # 22-3777 Meeting Date: 3/1/2022
command” over engineering. In addition, it will remove any potential conflicts that may arise from supervising other members of the same association. The proposed Pay Plan includes the Deputy Director of Public Works position as a member of the Management and Confidential group. A Resolution to modify the PSA MOU to remove the position from the PSA group will be returned at a later date.
Update to Sections 8 and 9 “Longevity Pay” to Comply with CalPERS Regulations For many years, Longevity Pay has been included as an additional benefit (and recruitment tool) for Management and Confidential employees with multiple years of public agency service. Depending on the employee’s classification, longevity pay is currently provided after the below number of years of public service:
• Executive employees - 10 years of public service;
• Non-executives - 19 years of service;
• Fire Division Chiefs - 15 years of service.
When established, the provision was intended to be classified as special compensation and considered reportable compensation to CalPERS.
Recently a CalPERS audit indicated that the language in the existing Pay and Benefits Plan is not in total conformance with the California Public Employees Retirement Law statute regarding special compensation, which is listed in Title 2, Section 571 of the California Code of Regulations (CCR). In order for the Longevity Pay to continue to be reportable to CalPERS, it can be provided for any length of time over five years, as determined by the agency, but must also be for service in the same public agency or job classification.
Staff has updated the Longevity Pay language in the proposed Pay and Benefits Plan to conform with this requirement and ensure that CalPERS continues to recognize this benefit as Special Compensation under CCR Section 571. It should be noted that in each section, the language has not been adjusted to shorten the amount of time required to qualify for longevity pay, but rather has just been updated to include the requirement that at least five years be in the City of Redondo Beach, or in the same job classification.
BACKGROUND
As described above, attached for City Council review is an updated Pay and Benefits Plan for the Management and Confidential employee group which amends Section 1 regarding Salaries and Sections 8 and 9 regarding Longevity Pay. The specific red-lined pages of the Plan are also attached to the report to provide for an easier review of the changes. The Management and Confidential Group has 31 employees and represents classifications such as Fire Division Chief, Payroll Manager, Human Resources Analyst and the various Department Directors.
COORDINATION
The Pay and Benefits Plan was prepared by Human Resources in cooperation with the City Attorney’s Office.
FISCAL IMPACT
There is no fiscal impact associated with the proposed Plan updates.
APPROVED BY:
H.9., File # 22-3777 Meeting Date: 3/1/2022
Mike Witzansky, City Manager
ATTACHMENTS
Resolution with Pay and Benefits Plan
Redlined Pages