CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 14 Section Name: {{section.name}} Account Number: 10-1311 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: April 15, 2024
SUBJECT:
City Manager, City Attorney, Department Head and Deputy Director Compensation Plan – Amendment RECOMMENDATION:
Adopt a Resolution to amend the Compensation Plan to: 1) add Juneteenth, June 19th as an annual holiday; 2) increase the salary range for the Police Chief classification; and 3) increase the salary range for the Human Resources Director classification.
BACKGROUND:
Juneteenth, June 19th
On February 22, 2024, Juneteenth was recognized by City Council as an annual Citywide holiday beginning this year. The proposed resolution (Attachment 1) recommends updating the City Manager, City Attorney, Department Head and Deputy Director Compensation Plan to include Juneteenth, June 19th, as an additional holiday.
Police Chief and Human Resources Director Salary Increases The City Council determines the salary and benefits compensation for employees. The directors and deputy directors are not represented by a bargaining group, and their salary ranges are determined by the City Council. The department heads are at-will employees and serve at the pleasure of the City Manager. In February 2024, HR retained the services of Bryce Consulting to conduct a total compensation study of the director and deputy director classifications utilizing the market survey agencies listed in the City’s Management Association Memorandum of Understanding to set the top salary range.
Byrce Consulting determined that other department head and deputy director classifications in the City are also behind market/below median. Staff anticipates bringing those department head and deputy director compensation adjustment recommendations to the Council this fall, commensurate with the completion and outcome of negotiations with multiple labor groups.
The Police Chief classification last received an increase to its salary range on March 5, 2023. The compensation study showed the Police Chief salary range is 11.9% below market median. A review of the top salary steps between the Police Chief and the highest-level subordinate Police Captain, which belongs to the Management Safety bargaining group, shows a salary difference of 18%. With the upcoming 3% salary increase for Management Safety employees on June 23, 2024, the salary difference between the Police Chief and the Police Captain will be 15%. Based on the total compensation survey data and the salary compaction analysis, the proposed resolution recommends a twelve percent (12.0%) salary range increase for the Police Chief classification effective April 28, 2024. This salary range would be approximately 4.2% below the current salary for the City Manager, and 26.2% above the salary range of the highest-level subordinate, Police Captain.
The Human Resources Director classification last received an increase to its salary range on March 5, 2023. The compensation study showed the Human Resources Director salary range is 3.2% below market median. The recent executive search was unsuccessful as it did not result in a hire. Based on the total compensation survey and consistent
CITY OF SAN MATEO
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with the City’s compensation philosophy to pay competitive salaries in order to attract and retain highly qualified employees, the proposed resolution recommends a three and a half percent (3.5%) salary range increase for the Human Resources Director classification effective April 28, 2024.
Pursuant to City Charter Section 4.02, the City Council provides for the compensation of all officers and employees and salaries shall be fixed by resolution. Title 2 of the California Code of Regulations (CCR), Section 570.5, requires the City Council to adopt a full salary schedule, as a standalone document detailing the rates of pay for each City classification, and to maintain this salary schedule as a publicly available document for at least five years. CalPERS uses this salary schedule to determine the “compensation earnable” when calculating the monthly pension an individual will receive when they retire. “Compensation earnable” is defined by the Public Employees’ Retirement Law (PERL) Government Code Sections 20636, and 20636.1 as pay rate and special compensation as defined in the statutes.
BUDGET IMPACT:
There is no budget impact associated with the approval of Juneteenth, June 19th, as an additional holiday. Approval of the Police Chief’s salary increase will cost an estimated $8,300 in fiscal year 2023-24, which can be absorbed within the department’s operating budget. Beginning in fiscal year 2024-25, this salary increase will be built into the Police Department’s personnel budget. Approval of the Human Resources Director’s salary increase will have no budget impact in fiscal year 2023-24. Beginning in fiscal year 2024-25, this salary will be built into the Human Resources Department’s personnel budget.
ENVIRONMENTAL DETERMINATION:
This action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Resolution
Exhibit A - City Manager, City Attorney, Department Head, Deputy Director Compensation Plan Att 2 - Track Changes Exhibit A - City Manager, City Attorney, Department Head, Deputy Director Compensation Plan
STAFF CONTACT
Shawnna Maltbie, Interim Director of Human Resources
[email protected]
650.522.7276