Report Prepared by: Scott McBride, City Manager
Title
SUBJECT: Approval of Resolution of the City of Merced City Council Regarding Certain Terms and Conditions of Employment for the Merced Executive Unit, Unrepresented Employees’ Unit, and Public Safety Managers Unit
REPORT IN BRIEF
Considers approving a Resolution of the City of Merced City Council regarding certain terms and conditions of employment for the Merced Executive Unit, Unrepresented Employees’ Unit, and Public Safety Managers Unit.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Resolution 2024-100, a Resolution of the City Council of the City of Merced, California, approving the terms and conditions of employment for the Merced Executive Unit, Unrepresented Employees’ Unit, and the Public Safety Managers Unit; and,
B. Authorizing the City Manager to make non-substantive modifications subject to City Attorney approval as to form and execute the necessary documents; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments and move positions into different funding sources if determine necessary.
Body
ALTERNATIVES
1. Approval, as recommended by staff; or,
2. Take no action; or
3. Refer back to staff with instructions
AUTHORITY
The City Manager, on behalf of the City Council, is designated to meet with non-represented employees regarding wages, hours, and terms and conditions of employment.
CITY COUNCIL PRIORITIES
As provided in the 2024-25 Adopted Budget.
DISCUSSION
The City Manager along with Chief Negotiator Michael Jarvis met with the unrepresented employees with the intent to establish a compensation package for the non-represented employees. During these meetings, it was decided it would be beneficial to separate the management employees into three different management groups, as opposed to one unrepresented management group as had historically been the case.
The management employees will be grouped into an Executive Management Unit. This group will consist only of department head level management. A second Unrepresented Employees’ Unit will be made up of employees categorized as management confidential middle management, and management supervisory. A third group will be established as the Public Safety Managers Unit. This group will consist of Police Lieutenants, Police Captains, Fire Battalion Chiefs, and Fire Deputy Chiefs.
The terms and conditions of employment for the groups is consistent with City Council direction. A summary of benefits is as follows:
Executive Management Unit
• Term: The term of this agreement will be effective August 5, 2024, and will remain in effect through June 30, 2027.
• Wages: Base wage increases will be effective August 5, 2024, for the current fiscal year and will increase as follows: year one (2024) increase in base including 3% equity due to elimination of premium pay, year two (2025) 4%, and year three (2026) 4%.
• Equity Adjustment: Effective June 23, 2025, Deputy City Manager will receive 2.5% equity adjustment.
Effective June 22, 2026, Deputy City Manager will receive 2.5% equity adjustment.
• Longevity Pay: Pay is as follows: 10 year 1.5%, 15 year 1.5%, 20 year 1.5% and 25 year 1.5%. Pay is stackable for a total of 6%.
• Vacation Cash Out: Increase from 20 to 40 hours.
Unrepresented Employees Unit
• Term: The term of this agreement will be effective June 24, 2024, and will remain in effect through June 30, 2027.
• Equity Adjustment: Effective June 23, 2025, the PWS - Parks/Trees classification will receive a 6% equity adjustment, the PWS-Sewers/Storm Drains classification will receive a 5% equity adjustment, the PWS-Water and PWS-Streets classifications will receive a 2% equity adjustment and the PWS-Solid Waste classification will receive a 1% equity adjustment.
Effective June 22, 2026, the PWS - Parks/Trees classification will receive a 5% equity adjustment, the PWS-Sewers/Storm Drains classification will receive a 5% equity adjustment, the PWS-Water and PWS-Streets classifications will receive a 2% equity adjustment and the PWS-Solid Waste classification will receive a 1% equity adjustment.
• Wages: Base wage increases will be effective June 24, 2024, for the current fiscal year and will increase as follows: year one (2024) 3% plus additional 3% equity due to elimination of premium pay, year two (2025) 4%, and year three (2026) 4%.
• Longevity Pay: Pay is as follows: 10 year 1.5%, 15 year 1.5%, 20 year 1.5% and 25 year 1.5%. Pay is stackable for a total of 6%.
• Education Pay: Management Confidential employees who possess a Bachelor’s Degree will receive 3% of their base rate of pay.
• Vacation Cash Out: Increase from 20 to 40 hours.
Public Safety Managers Unit
• Term: The term of this agreement will be effective August 5, 2024 and will remain in effect through June 30, 2027.
• Sixth Step: a 6th step will be added for Police Lieutenants and Police Captains
• Wages: The Police Lieutenant’s top step will be benchmarked at 20% above the Police Sergeants top step, The Police Captain’s top step will be benchmarked 15% above the Police Lieutenant’s top step. The Fire Battalion Chief’s top step will be benchmarked at 21% above the Fire Captain’s top step and the Fire Deputy Chief’s top step will be benchmarked at 17.5% above the Fire Battalion Chief’s top step.
• Longevity Pay: Pay is as follows: 10 years 2.5%, 15 years 2.5%, and 20 years 2.5%. Pay is stackable for 7.5%.
• Post Pay: Employees who possess a POST Management Certificate will receive 5%.
• Education Pay: Employees who possess a Bachelor’s Degree will receive 3% of their base rate of pay, and 3% of their base rate of pay for a postgraduate degree.
• Vacation Cash Out: Increase from 20 to 40 hours.
IMPACT ON CITY RESOURCES
It is estimated that the first-year impact will be approximately $1.1 million and up to $3.1 million over the 3-year period. Personnel in the Executive Management, Unrepresented, and Public Safety management Units are funded throughout several City operating funds. The increase to labor costs was not included in the adopted FY 2024-25 budget. Once all bargaining group MOU’s have been approved Finance will need to determine if some positions need to switch funding sources depending on funding and best use of the funds. The recommendation allows staff to make the necessary additional appropriation for the current fiscal year. Future years will be included in the budget process.
ATTACHMENTS
1. Resolution 2024-100
2. Executive Management Terms and Conditions of Employment
3. Unrepresentative Management Terms and Conditions of Employment
4. Public Safety Managers Terms and Conditions of Employment