DATE: OCTOBER 22, 2024
DEPARTMENT: ADMINISTRATION/HUMAN RESOURCES
FROM: RENÉ MENDEZ
BY: MARINA HORTA-GALLEGOS
TITLE: AMENDMENTS TO THE EMPLOYMENT AGREEMENT WITH THE CITY ATTORNEY; AMENDMENTS TO THE COMPENSATION PLANS FOR DEPARTMENT DIRECTORS, CONFIDENTIAL MANAGEMENT, AND CONFIDENTIAL NON-MANAGEMENT RECOMMENDED MOTIONS:
A motion approving an amendment to the employment agreement with the City Attorney.
A motion approving amendments to the Compensation Plans for Department Directors, Confidential Management, and Confidential Non-Management.
EXECUTIVE SUMMARY:
The proposed amendment to the employment agreement with the City Attorney is to extend the term for two years, to February 9, 2029.
Proposed changes to the Compensation Plans for Department Directors, Confidential Management, and Confidential Non-Management include the following:
increase wages by 6% in January 2025 and by 3% in January 2026, increase base wages for the Chief of Police and Public Works Director to avoid compaction, decrease the City’s contribution on health cost sharing (at the maximum contribution of 90% of the premium cost for the Platinum plan) for Department Directors and Confidential Management, maintain the City’s contribution on health cost sharing (at the maximum contribution of 95% of the premium cost for the Platinum plan) for Confidential Non-Management, increase the amount of deferred compensation for Department Directors to a maximum of $23,000, increase the annual uniform allowance from $650 to $1,200 for the Fire Chief, Chief of Police, and Assistant Chief of Police, increase the annual cash out amount from 80 hours to 120 hours for Department Directors, and revise language on severance pay for Department Directors to be consistent with at-will employment.
BACKGROUND:
Extension of City Attorney’s Employment Agreement
City Attorney Christopher A. Callihan has worked for the City of Salinas in the Office of the City Attorney since September 2003 and as City Attorney since January 2014. The City Council has completed the annual public employee performance evaluation process for Mr. Callihan. As part of this process, the parties desire to amend Mr. Callihan’s employment agreement to reflect an extension of two years, to February 9, 2029.
Compensation Plans for Department Directors, Confidential Management, and Confidential Non-Management Groups The proposed changes to wages and benefits in the compensation plans maintain parity with similar employee groups and support recruitment and retention.
The change to deferred compensation for Department Directors reflects the Internal Revenue Service’s increase in the maximum benefit for 2024. The uniform allowance is updated due to the rising costs of uniform replacement and maintenance for public safety. The increase in annual leave cash out limits for Department Directors is a response to Directors’ concerns about inability to use accrued leave due to their departments being short-staffed. The language on severance pay for Department Directors is revised to be consistent with the at-will nature of their employment.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
The proposed actions meet the Effective and Culturally Responsive Government Council goal within the 2022-2025 Strategic Plan and are expected to improve employee recruitment and retention.
DEPARTMENTAL COORDINATION:
Administration coordinated with the Human Resources Department, the Finance Department, and the Office of the City Attorney.
FISCAL AND SUSTAINABILITY IMPACT:
The projected cumulative total for the three Compensation Plan adjustments is approximately $414,605 for Department Directors, $460,141 for Confidential Management, and $233,462 for Confidential Non-Management over a two-year period. FY 24-25 costs for all three plans, equal to half of the year one total (January – June 2025), are $217,988.48 and shown by fund below.
Fund
Appropriation
Appropriation
Name
Total Appropriation
Amount for recommendation
FY 24-25 Operating Budget Page
Last Budget Action (Date, Resolution)*
1000 - General Fund
61.1100 – 61.9992
Salaries & Benefits
$54,877,612.41
$163,915.32
13 06/11/2024, 22979
1100 - Measure E
61.1100 – 61.9992
Salaries & Benefits
$8,050,144.67
$8,414.24
13 06/11/2024, 22979
1200 - Measure G
61.1100 – 61.9992
Salaries & Benefits
$12,385,036.04
$20,970.32
13 06/11/2024, 22979
6100 - Municipal Airport
61.1100 – 61.9992
Salaries & Benefits
$674,561.42
$990.46
15 06/11/2024, 22979
6200 - Industrial Waste
61.1100 – 61.9992
Salaries & Benefits
$898,910.35
$990.46
15 06/11/2024, 22979
6400 - Sewer
61.1100 – 61.9992
Salaries & Benefits
$1,876,552.65
$990.46
15 06/11/2024, 22979
6500 - Storm Sewer (NPDES)
61.1100 – 61.9992
Salaries & Benefits
$775,272.11
$494.98
15 06/11/2024, 22979
6801 - Downtown Parking District
61.1100 – 61.9992
Salaries & Benefits
$31,974.24
$197.89
15 06/11/2024, 22979
6900 - Permit Services
61.1100 – 61.9992
Salaries & Benefits
$2,645,017.99
$2,298.45
15 06/11/2024, 22979
7103 - Worker's Comp Self-Insurance
61.1100 – 61.9992
Salaries & Benefits
$276,141.43
$8,388.99
15 06/11/2024, 22979
7104 - General Liability Self-Insurance
61.1100 – 61.9992
Salaries & Benefits
$386,985.88
$10,336.89
15 06/11/2024, 22979
* The FY 24-25 Adopted Budget was adopted on June 11, 2024.
ATTACHMENTS:
Resolutions
City Attorney Employment Agreement; Amendment to the Employment Agreement Amendment No. 2 to City Attorney Employment Agreement
Department Directors Compensation Plan
Confidential Management Compensation Plan
Confidential Non-Management Compensation Plan
Classification-Salary Schedule
2025 CalPERS Health Premiums
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SALINAS AND CHRISTOPHER A. CALLIHAN WHEREAS, on February 15, 2022, the Salinas City Council approved the Employment Agreement between the City of Salinas and City Attorney Christopher A. Callihan; and WHEREAS, the City Council approved an amendment of the Employment Agreement effective in November 2023; and WHEREAS, the City Council and City Attorney have completed the annual public employment performance evaluation process; and WHEREAS, the City of Salinas desires to extend the term of the Employment Agreement, to February 9, 2029; and NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council authorizes the Mayor to execute the attached Amendment No. 2 to the Employment Agreement.
PASSED AND APPROVED this 22nd day of October 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
____________________________________ Kimbley Craig, Mayor ATTEST:
______________________________
Patricia M. Barajas, City Clerk
RESOLUTION NO. _________ (N.C.S.)
A RESOLUTION OF THE SALINAS CITY COUNCIL APPROVING AMENDMENTS TO THE COMPENSATION PLANS FOR DEPARTMENT DIRECTORS, CONFIDENTIAL MANAGEMENT, AND CONFIDENTIAL NON-MANAGEMENT BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS that the Compensation Plans for Department Directors, Confidential Management, and Confidential Non-Management are amended with the following changes: (1) increase wages by 6% in January 2025 and by 3% in January 2026, (2) increase wages for the Chief of Police and the Public Works Director, as shown, following approval, (3) decrease the City’s contribution on health cost sharing (at the maximum contribution of 90% of the premium cost for the Platinum plan) for Department Directors and Confidential Management, (4) maintain the City’s contribution on health cost sharing (at the maximum contribution of 95% of the premium cost for the Platinum plan) for Confidential Non-Management, (5) increase the amount of deferred compensation for Department Directors to a maximum of $23,000 per year, and (6) make other changes as shown.
PASSED AND APPROVED this 22nd day of October 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN: APPROVED:
____________________________________ Kimbley Craig, Mayor ATTEST:
______________________________
Patricia M. Barajas, City Clerk
Page | 3
Page | 1
CITY OF SALINASCOUNCIL STAFF REPORTCITY OF SALINASCOUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT
CITY OF SALINAS
COUNCIL STAFF REPORT