Report Prepared by: Stephanie R. Dietz, City Manager
Title
SUBJECT: Approval of the Compensation Plan for Management Employees with a Term of July 1, 2021 through June 30, 2024
REPORT IN BRIEF
Considers approving Compensation Plan for Management Employees with a term of July 1, 2021 through June 30, 2024.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Resolution 2021-78, a Resolution of the City Council of the City of Merced, California, adopting a compensation plan for the executive management, middle management, supervisory management, and confidential management employees; and,
B. Approving a Supplemental Appropriation from Fund 087-American Rescue Plan Act in the amount of $105,000 for Premium Pay in Fiscal Year 2021-22 and authorizing the Finance Officer to make necessary budget adjustments; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Deny; or
3. Refer back to staff with instructions.
AUTHORITY
Resolution No. 80-106 - Resolution of the City Council of the City of Merced establishing an Employer-Employee Organizations Relations Policy.
Meyers Milias Brown Act.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget
DISCUSSION
The Compensation Plan for Management Employees has been updated at the direction of the City Council and provides base wage increases and other benefits in accordance with the anticipated revenue forecast along with updating language to align with new state and federal laws. The City Manager recommends adoption of the Resolution approving the Compensation Plan.
A summary of the items agreed upon in this Compensation Plan are as follows:
• Term: Three years - the term of the agreement shall be effective July 1, 2021 and shall remain in effect through June 30,2024.
• Wages: Base wage increases will be effective the first pay period following City Council adoption and then the beginning of the fiscal year thereafter as follows - year one (2021) 3%, year two (2022) 3% and year three (2023) 3%.
• Equity Adjustment: An equity adjustment of 2% in year one (2021) and of 2% in year two (2022) will be provided the following classifications - Deputy City Attorney, Information Technology Manager, PWM - Operations, PWM - Tax Services, PWM - Water, Communications System Supervisor, Economic Development Associate, Fire Battalion Chief (56/40), Management Analyst, PWS - Solid Waste, WWTP Operations Supervisor, Director of Information Technology, and Director of Parks & Community Services.
• Premium Pay: Base wage increases related to essential worker designation will be effective the first full pay period after City Council adoption and then the beginning of the of the fiscal year as follows - year one (2021) 1%, year two (2022) 1%, and year three (2023) 1%. The aggregate of 3% will sunset at the conclusion of the Compensation Pay Plan, June 31, 2024. Employees will receive up to the allocated premium pay each year from the American Rescue Plan Act funding as long as it does not increase a worker’s total pay above 150% of their residing state’s average annual wage for all occupations, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, or the Merced County’s average annual wage, as defined by the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, whichever is higher, on an annual basis.
• Holidays: Two additional holidays have been added for citywide observance, Cesar Chavez Day and Juneteenth. In addition, the City Manager is provided the authority to implement new Federal Holidays as they are approved by the President.
• Retiree Health Access and Savings Account: Employees hired on or after July 5, 2006 who retire will now be eligible to access the City’s Health, Vision and Dental insurance at 100% employee cost. In addition, the Compensation Plan allow for the establishment of a Retiree Health Savings Account, at no cost to the City, to allow for employees to begin saving independently for retiree health costs.
IMPACT ON CITY RESOURCES
The total impact of the Compensation Plan on General Fund and other operating funds over three years is approximately $3,000,000. Most of the funding was included as part of the adoption of the FY 2021/22 City Budget. A Supplemental Appropriation for the 1% Premium Pay in the amount of $105,000 will need to be allocated from Fund 087-American Rescue Plan Act Fund. All future year funding will be included in the budget process
ATTACHMENTS
1. Resolution 2021-78
2. Compensation Plan for Management Employees