June 20, 2023
Human Resources
DATE: June 20, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
Sharrone Taylor, Interim Director of Human Resources
Dave Aleshire, City Attorney
Jack Hughes, Lead Negotiator
Subject:
Resolution adopting the ratified contract amendment between the City and IFPTE Local 21 Executive Management
FINANCIAL IMPACT: The fiscal impact of the ratified contract amendment including implementation of the Segal Classification and Compensation study and other agreed upon increases is estimated as
follows:
Fiscal Year 23/24- $972,652. Fiscal 24/25- $1,050,586. Fiscal Year 25/26- $1,092,609
PREVIOUS COUNCIL
ACTION:
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STATEMENT OF THE
ISSUE:
City Council’s approval is required to adopt a resolution approving the ratified contract amendment between the City and IFPTE Local 21 Executive Management Bargaining Unit, providing for four agreed upon compensation enhancements to the parties’ Memorandum of Understanding, and
authorization of implementation of the Segal Classification and Compensation Study for IFPTE Local 21 Executive
Management Bargaining Unit.
AGENDA
REPORT
June 20, 2023
RECOMMENDED
ACTION:
ADOPT a resolution approving the ratified contract
amendment between the IFPTE Local 21 Executive
Management Bargaining Unit, providing for four agreed upon compensation enhancements to the parties’ Memorandum of Understanding, and authorization of implementation of the Segal Classification and Compensation Study for IFPTE Local 21 Executive Management Bargaining Unit – Human
Resources (Nickie Mastay/ Sharrone Taylor 510-620-6602).
DISCUSSION:
On April 21, 2020, the City entered into a contract with The Segal Group, Inc. to conduct a comprehensive City-wide classification and compensation study to yield recommended classification specifications and a proposed competitive salary structure.
The Segal Group, Inc. conducted an extensive salary survey, reviewed over 230 job titles, and received and analyzed job description questionnaires from approximately 330 employees. At the completion of the study, the Segal Group, Inc. recommended the establishment of a new salary structure and an overhaul of the job descriptions to ensure uniformity and modernization. In addition, several classifications were retitled to better describe the job duties being performed, and classifications deemed obsolete were recommended for removal.
The Human Resources Department negotiated in good faith with the IFPTE Local 21 Executive Management Bargaining Unit regarding the implementation of the recommendations of the study. The parties have come to an agreement about the implementation of the study via a contract amendment agreement. The agreement provides for:
Implementation of the Segal Classification and Compensation Study for the IFPTE Local 21 Executive Management Bargaining Unit as negotiated by the parties.
Four additional compensation enhancements to the Parties’ 2021-2025 Memorandum of Understanding (MOU):
1. Increase the value of the existing January 2024 base wage increase from four percent (4%) to five percent (5%);
2. Increase the value of the existing January 2025 base wage increase from four percent (4%) to five percent (5%);
3. Establish a City contribution to a deferred compensation account for each Executive in the amount of two percent (2%) of each employee’s semi-monthly base salary to occur each pay period starting July 2023 and;
4. Add longevity pay as described in the agreement starting July 2023
June 20, 2023
The Human Resources Department is bringing forth the ratified contract amendment for City Council’s approval of the four agreed upon compensation enhancements to the parties’ Memorandum of Understanding and implementation of the Segal Classification and Compensation Study for the IFPTE Local 21 Executive Management Bargaining Unit. The ratified contract agreement between the City and the IFPTE Local 21 amends the Executive Management Bargaining Unit’s Memorandum of Understanding (Attachment 1).
FINANCIAL IMPACT:
The estimated financial impact for the next three fiscal years is delineated below:
FY 2023-24 FY 2024-25 FY 2025-26
Segal Class & Comp Local 21 Executive
Management 470,483 489,302 508,874
2% City contribution to deferred
compensation, two 1% increases in base
wages, and longevity 502,169 561,284 583,735
TOTAL 972,652 1,050,586 1,092,609
RECOMMENDATION:
City staff recommends that the City Council approve the ratified contract amendment between the City and IFPTE Local 21 Executive Management Bargaining Unit.
Approval provides authority for the agreed upon compensation enhancements to the parties’ Memorandum of Understanding and authorizes implementation of the Segal Classification and Compensation Study for the IFPTE Local 21 Executive Management Bargaining Unit.
NEXT STEPS:
Upon approval of the resolution adopting the ratified contract agreement and authorization to implement the Segal recommendations, Human Resources staff will implement the two percent (2%) City contribution to deferred compensation effective July 1, 2023, for the employees in IFPTE Local 21 Executive Management Bargaining Unit. Additionally, Human Resources staff will continue to collaborate with the IFPTE Local 21 Union to finalize the Executive Management job descriptions and classification deletions and retitles. Following City Manager (or designee) approval of the changes, City staff will present to City Council the final salary schedule reflecting the study and equity changes for approval. City staff will bring back future amended wage scales shortly thereafter.
DOCUMENTS ATTACHED:
Attachment 1 – IFPTE Local 21 Executive Management ratified contract amendment
June 20, 2023
Attachment 2 – Resolution adopting the ratified contract amendment authorizing implementation of the study and the four compensation enhancements to the parties’ MOU