CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 22 Section Name: {{section.name}} Account Number: 10-2011 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: November 18, 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) increase salary ranges for City Attorney, City Manager, Department Heads, and Deputy Directors 2) increase executive leave to 80 hours for Department Heads and 3) adjust the deferred compensation and retirement health savings account (RHSA) language for the City Manager, City Attorney, Department Heads and Deputy Directors.
BACKGROUND:
The City Council determines the salary and benefits compensation for employees. The Department Heads and Deputy Directors are not represented by a bargaining group, and their salary ranges are determined by the City Council. The Department Heads are in at-will positions and serve at the pleasure of the City Manager. The Deputy Director classifications are in the competitive service as defined by Municipal Code Chapter 2.57.
The majority of Department Heads and Deputy Directors last received increases to their salary ranges on March 5, 2023.
The proposed Resolution recommends a 3 percent increase effective November 24, 2024 to the salary ranges for department heads and deputy directors, with a 5.9 percent increase for the Director of Information Technology classification, and a 2 percent increase for the Deputy Director of Finance classification since both were found to be behind the market median in the most recent total compensation survey. The proposed Resolution also provides for a 3 percent increase effective November 23, 2025, and a 3 percent increase effective November 22, 2026, for all Department Heads and Deputy Directors. The updated Resolution also gives the City Attorney and City Manager a 3 percent cost of living adjustment (COLA), the same amount at the same time as the unrepresented Department Heads, as outlined in their respective employment agreements dated February 5, 2024, and June 20, 2023.
In addition, the proposed Resolution increases the executive leave accrued by Department Heads from forty-eight (48) hours to eighty (80) hours starting the first full pay period following approval of the compensation plan. The Resolution also updates the deferred compensation and retirement health savings account (RHSA) language in the Compensation Plan to adjust how discretionary leaves are distributed upon separation from the City for the City Manager, City Attorney, and Misc. Department Heads. All other proposed changes to the Compensation Plan are clean up to outdated language.
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. The California Public Employees’ Retirement System (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’
CITY OF SAN MATEO
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 budgetary impact due to the compensation adjustments for department heads and deputy directors. The adopted FY 2024-25 budget assumed 3 percent salary range increases, and the additional proposed equity adjustments can be accommodated within existing departmental budget appropriations.
ENVIRONMENTAL DETERMINATION:
This plan 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
Abby Veeser, Deputy Director
[email protected]
(650) 522-7102