Memorandum — San Jose City Council, May 17, 2022

TO: HONORABLE MAYOR FROM: Jennifer Schembri

AND CITY COUNCIL

SUBJECT: SEE BELOW DATE: May 6, 2022

Approved Date
05/05/22

SUBJECT: TERMS OF SIDE LETTER AGREEMENTS BETWEEN THE CITY OF SAN JOSE, THE MUNICIPAL EMPLOYEES’ FEDERATION, AND THE

CITY ASSOCIATION OF MANAGEMENT PERSONNEL AND

AMENDING THE PAY PLAN

RECOMMENDATION

Adopt a resolution to:

A. Approve the terms of a Side Letter Agreement with the Municipal Employees’ Federation, AFSCME, Local 101 (MEF) to provide the following:

1. Provide employees in the Code Enforcement Inspector I (3938) classification with an approximate 4.60% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council;

2. Provide employees in the Code Enforcement Inspector II (3939) classification with an approximate 4.60% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council; and

B. Approve the terms of a Side Letter Agreement with the City Association of Management Personnel, IFPTE, Local 21 (CAMP) to provide the following:

1. Provide employees in the Code Enforcement Supervisor (3940) classification with an approximate 4.60% pensionable pay increase effective the beginning of the first full pay period after the Side Letter Agreement has been signed by all parties and has been approved by the City Council;

C. Amend the City of San Jose Pay Plan as follows:

1. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Code Enforcement Inspector I (3938) to $72,176.00 – $87,651.20, effective May 29, 2022;
COUNCIL AGENDA: 05/17/22
FILE: 22-695
ITEM: 2.10

HONORABLE MAYOR AND CITY COUNCIL
May 6, 2022
Subject: Terms of a Side Letter Agreements Between the City of San Jose and the Municipal Employees’ Federation, AFSCME, Local 101 (MEF), and the City Association of Management Personnel, IFPTE, Local 21 (CAMP)

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2. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Code Enforcement Inspector II (3939) to $83,595.20 – $101,608.00 effective May 29, 2022; and

3. Amend the City of San Jose Pay Plan to increase the annual salary range of the classification of Code Enforcement Supervisor (3940) to $94,640.00 – $115,398.40, effective May 29, 2022.

OUTCOME

Adoption of the resolution will approve a Side Letter Agreement between the City and MEF to allow for a pensionable pay increase for the of Code Enforcement Inspector I (3938) and Code Enforcement Inspector II (3939) classifications as provided in the table below:

Classification Pensionable Increase
Code Enforcement Inspector I (3938) 4.60%
Code Enforcement Inspector II (3939) 4.60%

Adoption of the resolution will also approve a Side Letter Agreement between the City and CAMP to allow for a pensionable pay increase for the Code Inspector Supervisor (3940) classification as provided in the table below:

Classification Pensionable Increase
Code Enforcement Supervisor (3940) 4.60%

Further, the City of San Jose’s Pay Plan will be amended to change the salary ranges for the classifications noted above in accordance with the terms of the Side Letter Agreements.

BACKGROUND

Code Enforcement Inspector I/II

The Code Enforcement Inspector I/II classification is responsible for various tasks, including, but not limited to, the inspection and enforcement of applicable ordinances pertaining to housing, blight, building construction, environmental codes, zoning, land use, solid waste facilities, signs, health and safety, and other related municipal codes.

As part of an overall agreement on a successor Memorandum of Agreement (MOA) in 2021, the City and MEF entered into a side letter agreement whereby the City agreed to conduct a review of the Code Enforcement Inspector series salaries due to recruitment and retention concerns in the classification series (Attachment A). During these discussions, the issue of a training pay

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was raised by MEF for those employees in the same classification who were taking part in the training/mentoring of new staff. With respect to the review of the Code Enforcement Inspector series salaries, Article 22 of the MEF MOA defines the marketplace of cities and counties for the purpose of identifying comparable classifications for salary survey purposes, and a survey of these Bay Area agencies was conducted in November 2021 and revealed that the City of San José salary ranges for the Code Enforcement Inspector series were slightly under Bay Area market for similar classifications.

On April 28, 2022, the City and MEF signed a subsequent side letter agreement that would bring the salary ranges of the Code Enforcement Inspector series to 100% of the market rate determined in the November 2021 survey. In addition, the parties agreed to roll the cost of a training pay into base pay in lieu of any training pay and make the increases uniform across the various classifications in order to maintain the differential between the classifications. This results in the following pensionable wage increases (Attachment B):

Classification Pensionable Increase
Code Enforcement Inspector I (3938) 4.60%
Code Enforcement Inspector II (3939) 4.60%

Classification
Current Pensionable
Salary Range
(Annual)
New Pensionable
Salary Range
(Annual)
Code Enforcement Inspector I (3938) $68,993.60 – $83,803.20 $72,176.00 – $87,651.20 Code Enforcement Inspector II (3939) $79,913.60 – $97,136.00 $83,595.20 – $101,608.00

As these classifications are represented by MEF, they will continue to receive a 5% ongoing non- pensionable compensation increase based on their pensionable rate of pay, per Article 12.1.1 of the MEF MOA.

In addition, changes are being made to the class specifications for the Code Enforcement Inspector series which will soon be submitted for adoption by the Civil Service Commission.

Code Enforcement Supervisor

Incumbents in the Code Enforcement Supervisor classifications are responsible for supervising assigned staff who enforce various codes and ordinances including but not limited to housing, building construction, zoning, solid waste, signs and health and safety. Code Enforcement Supervisors also perform administrative duties and other related work as required.

In order to maintain the current salary differential between the Code Enforcement Inspector Series and Code Enforcement Supervisor Classification (CAMP), which has additional management, policy, and strategic responsibilities, the following pensionable wage increases are also recommended (Attachment C):

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Classification Pensionable Increase
Code Enforcement Supervisor (3940) 4.60%

Classification
Current Pensionable
Salary Range
(Annual)
New Pensionable
Salary Range
(Annual)
Code Enforcement Supervisor (3940) $90,480.00 – $110,323.20 $94,640.00 – $115,398.40

As this classification is represented by CAMP, it will continue to receive a 5% ongoing non- pensionable compensation increase based on their pensionable rate of pay, per Article 10.1 of the CAMP MOA.

ANALYSIS

The following is a summary of the key provisions contained in the Side Letter Agreements. In the side letter agreement with MEF, they have agreed that these increases are in lieu of any training pay.

Code Enforcement
Inspector I Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Code Enforcement Inspector I classification shall receive a pensionable base pay increase in the amount of 4.60%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Code Enforcement Inspector I classification.

Code Enforcement
Inspector II Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Code Enforcement Inspector II classification shall receive a pensionable base pay increase in the amount of 4.60%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Code Enforcement Inspector II classification.

Code Enforcement
Supervisor Base
Pay Increase
Effective the first pay period after the agreement has been signed by all parties and has been approved by the City Council, employees in the Code Enforcement Supervisor classification shall receive a pensionable base pay increase in the amount of 4.60%. This will result in an increase to the top and bottom of the salary range in the Pay Plan for the Code Enforcement Supervisor classification.

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CONCLUSION

Due to the recruitment and retention issues in the Code Enforcement Inspector series, it is recommended that the City Council adopt the Administration’s recommendation outlined in this memorandum which would provide a pensionable base pay increase to the Code Enforcement Inspector I (3938) and Code Enforcement Inspector II (3939) classifications, as indicated above.

Additionally, it is recommended that the City Council adopt the Administration’s recommendation outlined in this memorandum which would provide a pensionable base pay increase to the Code Enforcement Supervisor (3940) classification, as indicated above.

Based on the recommended adjustments to the salary ranges of the various classification as set forth above, the City of San Jose’s Pay Plan will be amended to change the salary ranges for the classifications in accordance with the terms of the Side Letter Agreements.

EVALUATION AND FOLLOW-UP

No further follow-up with the City Council related to this action is anticipated at this time.

CLIMATE SMART SAN JOSE

The recommendation in this memo has no effect on Climate Smart San José energy, water, or mobility goals.

PUBLIC OUTREACH

This memorandum has been posted on the City Clerk’s website as part of the May 17, 2022, City Council Meeting Agenda.

COORDINATION

This memorandum was coordinated with the City Manager’s Budget Office, and the City Attorney’s Office.

COMMISSION RECOMMENDATION/INPUT

No commission recommendation or input is associated with this action.

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COST SUMMARY/IMPLICATIONS

The additional ongoing costs pertaining to the base pay increase for the Code Enforcement Inspector (3938), Code Enforcement Inspector II (3939), and Code Enforcement Supervisor (3940) classifications are approximately $400,000. Given the current level of vacancies, the increased costs for the remainder of 2021-2022 are anticipated to be absorbed within the Planning, Building, and Code Enforcement Department’s existing budget. If necessary, the Administration will bring forward any increases to the existing appropriation in 2021-2022 as part of the year-end budget process. With City Council approval of the recommended actions, these increased costs will be adjusted, as necessary, for 2022-2023 as part of a future budget process and will factored into the development of the 2023-2024 Base Budget.

CEQA

Not a Project, File No. PP17 008, General Procedure & Policy Making resulting in no changes to the physical environment.

JENNIFER SCHEMBRI
Director of Employee Relations
Director of Human Resources

The principal author of this memorandum is Carolyn Gibson, Senior Executive Analyst in the Office of Employee Relations. For questions, please contact Jennifer Schembri, Director of the Office of Employee Relations and Director of Human Resources, at (408) 535-8150.

Attachments

SIDE LETTER AGREEMENT

BETWEEN

THE CITY OF SAN JOSE
AND
THE MUNICIPAL EMPLOYEES’ FEDERATION, AFSCME, LOCAL NO. 101 (MEF) Classification Review – Code Enforcement Inspector Series The City and the Municipal Employees’ Federation (MEF) agree that the City will conduct a classification review for the Code Enforcement Inspector series.

Following this review, the City agrees to meet and confer with MEF over the results of this review, including classification changes and/or wage adjustments recommended as a result of the study. This shall not be construed as an agreement to change anything related to classification structure and applicable benefits for classifications represented by MEF.

This Agreement is considered part of the tentative agreement for a successor MOA between the parties. This Agreement shall become effective only as part of the overall tentative agreement for a successor MOA, when signed by all parties below, ratified by MEF and approved by the City Council.

The goal of the parties is to complete this classification review within nine (9) months of a successor MOA being ratified by MEF and approved by the City Council in open session.

FOR THE CITY: FOR THE UNION:

Jennifer Schembri Date Date
Director of Human Resources
Director of Employee Relations
John Tucker
Union Representative, AFSCME Local 101
Steve Solorio Date
MEF President, AFSCME Local 101
8/4/2021
8/6/2021

SIDE LETTER AGREEMENT

BETWEEN

THE CITY OF SAN JOSE
And
THE MUNICIPAL EMPLOYEES’ FEDERATION, AFSCME, LOCAL NO. 101 (MEF)

SPECIAL WAGE INCREASE – CODE ENFORCEMENT INSPECTOR I/II

Effective the first full pay period after this agreement is signed by all parties below and approved by City Council in open session , employees in the classifications listed below shall receive the following pensionable wage increase:

Classification Pensionable Increase
Code Enforcement Inspector I (3938) 4.60%
Code Enforcement Inspector II (3939) 4.60%

This will result in an increase to the top and bottom of the salary range of employees in the classifications noted above.

The parties further agree that:

1. The wage increases are in lieu of providing a training pay; and

2. The Code Enforcement Inspector I/II classification specification will be updated to provide that certain employees with access to the California Law Enforcement Telecommunications System (CLETS) may be required to go through backgrounding.

This side letter agreement shall become effective on the first full pay period after this agreement has been signed by all parties below and approved by City Council in open session.

FOR THE CITY: FOR THE UNION:

______________________________ __________________________________ Jennifer Schembri Date John Tucker Date
Director of Employee Relations Business Representative, AFSCME Director of Human Resources

__________________________________
Cindy Harlin Date
MEF President

4/28/2022
4/28/2022
5/5/2022
5/5/2022

San Jose City CouncilMay 17, 2022

San Jose City Council
May 17, 2022