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Home My WebLink AboutAgenda Report - December 3, 2014 I-01bAGENDA ITEM 3[wa 16 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving Revisions to Contracts for Lodi Executive Management (Excluding Council Appointees) for 2015 through 2017 and Appropriating Funds ($8,560) MEETING DATE: December 3, 2014 PREPARED BY: City Manager RECOMMENDED ACTION: Adopt resolution approving revisions to Contracts for Lodi Executive Management (excluding Council appointees) for 2015 through 2017 and appropriating funds ($8,560). BACKGROUND INFORMATION: The City Manager requests Council approval of revisions to Executive Management Contracts (Deputy City Manager, Electric Utility Director, Fire Chief, Library Director, Parks, Recreation and Cultural Services Director, Police Chief, and Public Works Director) as a partial restoration of prior concessions. The request calls for a 1.5 percent increase in base pay effective the first full pay period in calendar year 2015. The revisions are for a term of three years, covering January 1, 2015 through December 31, 2017. The agreement includes `trigger' language for calendar years 2016 and 2017 that may result in additional compensation for this group. In the event audited General Fund reserves exceed the Council's target'reserve level (16 percent of General Fund revenues) for either FY 2014/15 or FY 2015/16, the agreement calls for a base salary adjustment or a one-time, non-PERSable payment to the group not to exceed two percent of base salary. The trigger calculation is net of any reserves carried over to pay for committed amounts under the agreement. Lodi's employees agreed to voluntary decreases in total compensation in every year from 2009 through 2012. When the 2012 MOUs expired, Lodi's employees agreed to permanent reductions in total compensation of nine percent in safety and seven percent in miscellaneous. These voluntary employee reductions allowed the City to survive the Great Recession, stabilize its weak reserve and perform needed capital improvements. During this same period, the cost of living has increased by 11.8 percent (San Francisco -Oakland -San Jose CPI -U). Most City employees have not seen an increase in base pay since 2007/08 depending upon bargaining unit. The City is now in a position to grant a small increase in base pay as a result of increased revenues and prudent expense management. The base pay increase is structured in such a fashion that it is sustainable over the term of the agreement from current reserves in excess of the Council -approved General Fund reserve target. Potential increases in subsequent years of the agreement are also structured based upon available reserves over the reserve target. APPROVED�_- , City Manager Lodi certainly faces funding challenges ahead and must plan for them. It also faces continued fiscal stress to a work force that contributed significantly to addressing the fiscal impact of the Great Recession. Although the current excess over our reserve target could certainly be invested in other fashions, staff believes that investing in our employees is the most appropriate use of these funds. FISCAL IMPACT: Total cost of the proposed agreement is $61,790, of which $10,060 is applicable to FY 2014/15; $20,440 is applicable to FY 2015/16; $20,780 is applicable to FY 2016/17; and $10,510 is applicable to FY 2017/18. The FY 2014/15 component of this proposal is not included in the 2014/15 budget and will require an appropriation in the General Fund of $8,560. Funding is available from the General Fund dollars in excess of the 2013/14 reserve target and in the Electric Utility fund for the Electric Utility Director component of this item. FUNDING AVAILABLE: Funding for this item will be provided by funds in excess of the General Fund reserve target established by Council. Increased costs in the Electric Utility will be absorbed within existing appropriations. hwa aue —__ City Manager 1. BA# 2. JV# Internal Services Dept. - Budget Division =ROM: JJordan Ayers, Deputy City Manager 15. DATE: 12/3 )EPARTMENT/DIVISION: B. USE OF FUND # ORG # 10010000 71001 City Manager 100 10030001 71001 OBJ # ACCOUNT TITLE 100 AMOUNT A. 120 12000000 50001 Library Transfer in $ 1,050.00 SOURCE OF 200 20000000 50001 PRCS Transfer In $ 1,180.00 FINANCING 100 32205 Unreserved Fund Balance $ 8.560.00 B. USE OF 100 10010000 71001 City Manager 100 10030001 71001 Police FINANCING 100 10040001 71001 Fire 100 10050001 71001 Public Works 120 12090000 71001 Library 200 20070001 71001 JPRCS 100 10095000 76220 lGeneral Fund Transfer Out Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. 2014/15 contract changes for Executive Management If Council has authorized the appropriation adjustment, complete the following: Meeting Date: 12/3/14 Res No: Attach copy of resolution to this form. Department Head Signature: Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. 1,370.00 1,910.00 1,670.00 1,380.00 1,050.00 1,180.00 RESOLUTION NO. 2014-219 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING REVISIONS TO CONTRACTS FOR LODI EXECUTIVE MANAGEMENT (EXCLUDING COUNCIL APPOINTEES) FOR 2015 THROUGH 2017 AND APPROPRIATING FUNDS WHEREAS, City employees have seen a net pay decrease as a result of concessions agreed to during the Great Recession; and WHEREAS, most City employees have not seen an increase in base pay since 2008; and WHEREAS, the City is now in a position to grant a small base pay increase as a partial restoration of prior concessions; and WHEREAS, it is recommended that Council approve revisions to Executive Management employment contracts (Deputy City Manager; Electric Utility Director; Fire Chief; Library Director; Parks, Recreation and Cultural Services Director; Police Chief; and Public Works Director) as follows as a partial restoration of prior concessions: • 1.5% increase to base salary, effective the first full pay period in 2015; • Additional base salary or one-time payment in calendar years 2016 and 2017 based upon General Fund reserve levels in excess of General Fund Reserve Target requirements (16% of revenue), subject to a maximum of 2% of base salary. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the revisions to Executive Management employment contracts (Deputy City Manager; Electric Utility Director; Fire Chief; Library Director; Parks, Recreation and Cultural Services Director; Police Chief; and Public Works Director) as outlined above; and BE IT FURTHER RESOLVED that funds be appropriated as shown on the attached Appropriation Request Form. Date: December 3, 2014 I hereby certify that Resolution No. 2014-219 was passed and adopted by the Lodi City Council in a regular meeting held December 3, 2014, by the following vote: AYES; COUNCIL MEMBERS — Hansen, Johnson, Mounce, Nakanishi, and Mayor Katzakian NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NIFER ROBIS�N City Clerk 2014-219 1. BA# 2. JV# Internal Services Dept. - Budget Division =ROM: JJordan Ayers, Deputy City Manager 15. DATE: 12/3 )EPARTMENT/DIVISION: B. USE OF FUND # ORG # 10010000 71001 City Manager 100 10030001 71001 OBJ # ACCOUNT TITLE 100 AMOUNT A. 120 12000000 50001 Library Transfer in $ 1,050.00 SOURCE OF 200 20000000 50001 PRCS Transfer In $ 1,180.00 FINANCING 100 32205 Unreserved Fund Balance $ 8.560.00 B. USE OF 100 10010000 71001 City Manager 100 10030001 71001 Police FINANCING 100 10040001 71001 Fire 100 10050001 71001 Public Works 120 12090000 71001 Library 200 20070001 71001 JPRCS 100 10095000 76220 lGeneral Fund Transfer Out Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. 2014/15 contract changes for Executive Management If Council has authorized the appropriation adjustment, complete the following: Meeting Date: 12/3/14 Res No: Attach copy of resolution to this form. Department Head Signature: Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. 1,370.00 1,910.00 1,670.00 1,380.00 1,050.00 1,180.00