Administrative
Report
H.17., File # 23-7405 Meeting Date: 12/19/2023
To: MAYOR AND CITY COUNCIL
From: MIKE WITZANSKY, CITY MANAGER
TITLE
APPROVE AN UPDATED PAY AND BENEFITS PLAN FOR THE MANAGEMENT AND
CONFIDENTIAL EMPLOYEE GROUP
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2312-137, 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
As the City has reached agreements on successor multi-year Memorandums of Understanding with the majority of the City’s employee associations, it is appropriate to execute a corresponding update to the Pay and Benefits Plan for Management and Confidential Employees. The Management and Confidential Employee Group is unrepresented by a union, and the group does not negotiate for their pay and benefits.
The proposed Pay and Benefits Plan, if adopted, will provide covered employees with all of the same terms and conditions of employment as the existing Plan, with the following changes:
1) Effective the first full pay period in January 2024, a 5% increase to base salary 2) Conversion of the Plan’s “Management Incentive Pay” range/provision into the base salary range, with a corresponding termination of Management Incentive Pay 3) In January 2024, a one-time increase to monthly health insurance contributions consistent with other city bargaining groups
4) Increases to the ability to cash out vacation pay from 60 hours per year to 80 hours per year, along with corresponding IRS “constructive receipt” language 5) Continuation of the December “holiday closure” (three additional paid holidays in December 2024)
6) Pay and Benefit Plan Clean Up - Incorporation of the June 2023 City Council approved side letter with the Redondo Beach Firefighters’ Association and inclusion of the September 2022 City Council approved Human Resources Manager job classification.
The projected cost of the agreement for the current fiscal year is $216,553. The Management and Confidential Group has 31 active employees and includes many diverse job classifications such as City Engineer, Chief Building Official, Deputy Public Works Director, Payroll Manager, Human Resources Analyst, Deputy City Attorney, Fire Chief and other appointed Department Heads and Assistants.
H.17., File # 23-7405 Meeting Date: 12/19/2023
BACKGROUND
The previous update to the wages and terms of conditions of employment for the Management and Confidential Pay Plan took place in January 2021. That plan offered employees a 1% base salary increase in January 2022, and a 2% base salary increase in 2023, along with increases to City health insurance contributions and continuation of the City’s “holiday closure” through 2023 (three additional December holidays between Christmas and New Year’s Day during each year of the Agreement).
The attached plan, if approved, will provide covered employees with all of the same terms and conditions of employment as the existing plan, with the following changes:
Salaries: Covered employees will receive a 5% increase to base salary effective the first full pay period in January 2024. In addition, the Plan’s “up to 25%” Management Incentive Pay provision will cease, and base salary ranges will increase by the corresponding 25%. This conversion will not affect or change current employee take home pay, but will increase transparency regarding salaries and should help boost the City’s recruitment and retention of management and executive level employees. There is a minimal cost to this conversion, as Longevity Pay (which is capped at 12% of salary) is indexed to base pay rather than total compensation.
Health Contributions: In January 2024, represented employees will receive a $50, $100, or $150 per month increase to their monthly health insurance contributions, for employee, employee plus one, and family coverages. This is consistent with what other bargaining units are receiving in 2024.
Vacation Cash Out: Consistent with recent changes to other bargaining group MOUs, employees will be able to cash out up to 80 hours of vacation leave annually, 20 hours more than the previous limit of 60 hours annually.
Holiday Closure: Employees will receive three additional paid holidays in December 2024, between Christmas and New Year’s Day. City Hall offices will be closed during this time, as has occurred for the past several years.
Pay Plan Clean Up: The new Plan incorporates the June 2023 City Council approved side letter with the Redondo Beach Firefighters’ Association agreeing that the Fire Division Chief classification will be represented going forward by the Redondo Beach Firefighters’ Association. Additionally, it includes the September 2022 City Council approved Human Resources Manager job classification.
The projected cost of the agreement for the current fiscal year is $216,553. As mentioned, the Management and Confidential Group has 31 active employees and includes many diverse job classifications such as City Engineer, Chief Building Official, Deputy Public Works Director, Payroll Manager, Human Resources Analyst, Deputy City Attorney, Fire Chief and other appointed Department Heads and Assistants.
Elected officials also have benefits tied to the Management and Confidential Pay Plan and will receive the same changes to their health insurance contributions as employees. However, it should be noted that salary increases in the Plan do not apply to the City Manager, Councilmembers, or other elected officials. The City Manager’s salary is set by a separate contract, and salaries for the City’s elected officials are set by ordinance.
H.17., File # 23-7405 Meeting Date: 12/19/2023
COORDINATION
This report was prepared by the Human Resources Department. The Resolution was approved as to form by the City Attorney’s Office.
FISCAL IMPACT
The cost of the Plan in Fiscal Year 2023-24 is $216,553. The total ongoing annual cost of the Plan is $433,106. Funding for the proposed salary and benefit increases was appropriated in the adopted Budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - Updating the Pay and Benefits Plan for Management and Confidential Employees and Pay Plan, with Exhibit A - Pay Plan