HomeMy WebLinkAboutAgenda Report - December 18, 2019 H-03AGENDA ITEM þ+3t-
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AGENDA TITLE:
MEETING DATE:
SUBMITTED BY:
Adopt Resolution Approving Revisions to Compensation and Other Benefits for
Confidential Mid-Management Employees for the Period January 1, 2020 through
December 31,2022
December 18,2019
Deputy City Manager
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RECOMMENDED ACTION: Adopt resolution approving revisions to compensation and other
benefits for Confidential Mid-Management employees for the period
January 1,2020 through December 31,2022.
BACKGROUND INFORMATION: Confidential employees within the City are those employees who
are not represented by any bargaining group. These employees
preform work that requires a high level of skill and strict adherence
to standards of confidentiality to protect sensitive information
including information related to labor contract negotiations, legal matters and other employee related
issues within the City. Confidential Mid-Managers preform this work and often oversee employees who
preform similar functions.
Confidential Mid-Managers (CMM) do not bargain for benefits as a group, nor do they have the same
labor protections offered by association with a labor Union or Association. CMMs are "at-will" employees.
City staff is recommending similar treatment for this group as is being recommended for the Lodi City
Mid-Management Association (LCMMA). A summary of proposed changes to the compensation package
for these employees is as follows:
Salary increases of four percent (4%) effective the first full pay period in January 2020,1% effective
the first full pay period in July 2020, and 5o/o effective the first full pay period in January 2021, and
2022.
PERS cost sharing agreement totaling an additional3o/o pickup of the employer's share of the normal
cost as follows:.. 1o/o first full pay period in July 2020. 1o/o first full pay period in January 2021. 1o/o first full pay period in January 2022
City agrees to maintain a ten percent (10o/o) differential between the top step base salary of CMMs
and the top step base salary of their direct report.
A two (5% each) step range adjustment for the Human Resources Manager, Accounting Manager,
Budget Manager, and Risk Manager in the lnternal Services Division to address internal equities and
market com petitiveness.
Lodi continues to face funding challenges over the next several years and must plan for them while
providing modest salary increases for employees who have collaborated with the City to ensure the fiscal
health of the City. The proposed salary increases will provide competitive salaries to attract and retain
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APPROVED
Stephen Schwa ity Manager
the City's mid-managers who have continued to take on additional duties and responsibilities as the
workforce has shrunk over the past twelve years.
Staff recommends that the Council approve revisions to compensation and other benefits for confidential
mid-management em ployees.
FISCAL IMPAGT:City wide, the total long term annual cost of the proposed agreement is
estimated to be $159,000. The total cost of the term of the agreement is
$275,000.
ln the General Fund, total long term annual cost of the proposed agreement
is estimated to be $73,500. The total General Fund cost over the term of
the agreement is $127,000.
FUNDING AVAILABLE Budget adjustments for these increases will be needed at Mid Year Fiscal
Year 2019120. Vacancy savings are the first source for funding the
increases for this and future employee contract changes. These savings
have been significant in the past three years allowing the City to build up
substantial reserves. ln Fiscal Year 2018/19, the General Fund ended the
year with over $1.5 million above its 16% fund balance reserve target.
Vacancy savings and these reserves will likely be necessary to finance a
portion of salary increases. Staff will first seek to prioritize Pension
Stabilization Reserves held at PARS or OPEB stabilization reserves held in
separate trust at CaIPERS to pay eligible costs in order to preserve locally
held economic and catastrophic reserves should actual reserves be
needed. Staff will seek Council input prior to any use of reserves.
CITY WIDE COST (ALL FUNDS)
Calendar Year 2O2O $ 38,000
Calendar Year 2021 $ 78,000
Calendar Year 2022 $ 159,000
Total Gost (3 Year)$275,000
GENERAL FUND COST
Calendar Year 2020 $ 17,500
Calendar Year 2021 $ 36,000
Calendar Year 2022 $ 73,500
Total Gost (3 Year)$ 127,000
Andrew Keys, Deputy City Manager