TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Lisa Jenkins, Human Resources Director
SUBJECT:Title
Consider Approving a Comprehensive Citywide Salary Schedule for all City Positions and Adjustments to Salary Ranges (Human Resources Director Jenkins).
ADOPT RESOLUTION NO. 19-0026
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 19-0026 approving a comprehensive Citywide salary schedule (attached), which includes a 2% adjustment to the salary schedule for unrepresented “Management/Confidential” employees, commensurate with the MOU increases recently provided to represented miscellaneous employees.
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FISCAL IMPLICATIONS
The recommended 2% salary schedule adjustment for management and confidential employees does not automatically increase any employee’s individual salary. The current budget includes salary adjustments for unrepresented employees at the City Manager’s discretion. Individual salary adjustments have already been budgeted for in the current budget. Any other salary schedule changes have already been accounted for through the budget adoption or Memorandum of Understanding (MOU) approval process.
BACKGROUND
Per the City’s personnel rules (Rule V, Section 11D), the City Manager shall periodically recommend to the City Council adjustments to salary ranges based upon cost of living, market indicators, and internal salary relationships. The City Manager is recommending a 2% cost of living adjustment (COLA) to the salary schedule for those unrepresented employees historically categorized as “Management/Confidential,” which includes confidential positions (e.g. those professional, technical and administrative employees in the City Clerk’s Office, Management Services, and Human Resources), managers who work in a confidential capacity, and department directors. The recommended adjustment is aligned with the most recently negotiated salary schedule adjustments for the City’s represented miscellaneous employee units, which include Teamsters and the Manhattan Beach Mid-Management Employees Association (MBMEA).
The attached resolution also fulfills California Public Employees Retirement System (CalPERS) requirements for a comprehensive publicly available salary schedule.
DISCUSSION
The represented employee group MBMEA received a 2% adjustment to their salary schedule effective January 1, 2019. This adjustment did not apply to management and confidential employees who are not represented. Teamsters Local 911 (Teamsters), which represents the majority of non-sworn employees in the City, negotiated a similar adjustment of 2% to their salary schedule effective March 16, 2019. At this time, the City Manager is recommending an adjustment to the salary schedules in order to provide a commensurate COLA adjustment of 2% to the salary schedules for all non-represented positions in the City.
In addition to providing COLA adjustments to the ranges for all unrepresented positions, the recommended adjustment will ensure similarly situated positions remain on equivalent pay schedules. By way of example, there are Management Analysts and Senior Management Analyst positions represented by MBMEA in various City Departments and Management Analysts and Senior Management Analyst positions who are unrepresented (primarily in the City Manager’s Office). Effective January 1, 2019, MBMEA received a 2% salary schedule adjustment. Without providing the same 2% adjustment for unrepresented employees, the salary schedule for represented Senior Management Analysts (e.g. in Public Works or the Police Department) would remain 2% higher than the Senior Management Analyst in the City Manager’s Office.
The attached salary schedule also includes salary range adjustments that were previously approved, either through the budget process or by independent Council action, as well as previous increases negotiated in collective bargaining agreements with the City’s employee associations.
The personnel rules also allow the City Manager to adjust the pay plan (salary steps) for part-time positions. Based upon the minimum wage increase effective January 1, 2019, the range for Recreation Leader I has been adjusted in order to continue to provide step progression for employees in this position. While this change is immediate to address the most recent minimum wage increase, staff intends to conduct a further review of the impacts of future state minimum wage increases, as well as an evaluation of the City’s current and future needs for its unrepresented part-time classifications. Following this review, additional changes to the part-time classification and compensation structure will likely be recommended, which would be included in a future salary schedule.
In addition to the adjustments, the attached salary schedule serves to comply with California Public Employees’ Retirement System (CalPERS) requirements that the City Council approve a publicly available salary schedule for all negotiated pay rate increases. These requirements are contained in Government Code § 20636 (b)(1) and California Code of Regulations (CCR) § 570.5. In order to meet CalPERS requirements, the City Council is required to adopt a comprehensive publicly available pay schedule independent from the salary schedules attached to the MOU or approved as part of the budget process.
POLICY ALTERNATIVES
The comprehensive Citywide salary schedule is being recommended to fulfill CalPERS regulations regarding adopting publicly available salary schedules, and there are no policy alternatives within this requirement. As an alternative to the 2% adjustment recommended for the unrepresented employee salary ranges, Council could direct an adjustment of a different amount, or no adjustment to these ranges.
PUBLIC OUTREACH/INTEREST
Staff determined public outreach was not required for this issue.
LEGAL REVIEW
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
Attachments:
1. Resolution No. 19-0026
2. Citywide 2019 Salary Schedule