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HomeMy WebLinkAboutAgenda Report - January 15, 2020 H-02AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION TM H-2 AGENDA TITLE: Adopt Resolution Approving Revisions to Contracts for Lodi Executive Management Employees (Excluding Council Appointees) for the Period January 1, 2020 through December 31, 2022 MEETING DATE: January 15, 2020 SUBMITTED BY: Human Resources Manager RECOMMENDED ACTION: Adopt resolution approving revisions to contracts for Lodi Executive Management employees (excluding Council Appointees) for the period January 1, 2020 through December 31, 2022. BACKGROUND INFORMATION- The City has successfully negotiated contracts with all of the Mid - Management bargaining units providing amendments to compensation and benefits through 2022. Staff is requesting that the Executive Management employees be extended similar amendments as extended to all Lodi Mid -Managers. Staff is requesting the following compensation and benefit changes for the Community Development Director (recruitment in progress), the Library Director, the Parks, Recreation and Cultural Services Director (recruitment in progress), and the Public Works Director: ■ Four percent (4%) salary adjustment, effective January 13, 2020; • One percent (1%) salary adjustment, effective July 13, 2020; ■ Five percent (5%) salary adjustment, effective January 11, 2021; • Five percent (5%) salary adjustment effective January 10, 2022; • Employees agree to additional cost-sharing of the employer's normal contribution toward CalPERS, pursuant to Government Code Section 20516 with a one percent (1%) contribution effective July 13, 2020, one percent (1%) contribution effective January 11, 2021, and an additional one percent (1%) contribution effective January 10, 2022. Staff is requesting the following compensation and benefit changes for the Deputy City Manager and the Electric Utility Director: • Seven percent (7%) salary adjustment, effective January 13, 2020; • One percent (1%) salary adjustment, effective July 13, 2020; • Five percent (5%) salary adjustment, effective January 11, 2021; • Five percent (5%) salary adjustment effective January 10, 2022; • Employees agree to additional cost-sharing of the employer's normal contribution toward CalPERS, pursuant to Government Code Section 20516 with a one percent (11%) contribution effective July 13, 2020, one percent (1%) contribution effective January 11, 2021, and an additional one percent (1%) contribution effective January 10, 2022. APPROVED: Stephen Schwa bauer, nager The slightly higher actions for these two positions are to maintain salary differentials with classifications reporting to the Electric Utility Director and to maintain existing parity between the Electric Utility Director and the Deputy City Manager. Staff recommends that the Council approve the revisions to compensation and other benefits for Executive Management Employees. FISCAL IMPACT: The total long term annual cost of the proposed revisions is $300,000, of which $55,000 is applicable to FY 2019/20; $100,000 is applicable to FY 2020/21; and $145,000 is applicable to FY 2021/22. FUNDING AVAILABLE: Budget adjustments for these increases will be needed at Mid Year Fiscal Year 2019/20. 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. In 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 CalPERS 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. Steve Sc wabau City Manager RESOLUTION NO. 2020-16 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING COMPENSATION AND BENEFIT MODIFICATIONS FOR EXECUTIVE MANAGEMENT EMPLOYEES, 2020 THROUGH 2022 WHEREAS, the City has completed negotiations with all Mid -Management bargaining units; and WHEREAS, it is recommended that Council approve the following compensation and benefit modifications to the Executive Management Employee contracts; 4% increase to base salary, effective January 13, 2020; 1% increase to base salary, effective July 13, 2020; 5% increase to base salary, effective January 11, 2021; and a 5% increase to base salary, effective January 10, 2022; for the positions of Community Development Director (recruitment in progress), Library Director, Parks, Recreation and Cultural Services Director (recruitment in progress), and Public Works Director; 7% increase to base salary, effective January 13, 2020; 1% increase to base salary, effective July 13, 2020; 5% increase to base salary, effective January 11, 2021; and a 5% increase to base salary, effective January 10, 2022; for the positions of Deputy City Manager and Electric Utility Director; Employee contribution (cost-sharing) of the employer's normal contribution toward CalPERS, pursuant to Government Code Section 20516 with 1% contribution effective July 13, 2020; 1% contribution effective January 11, 2021; and an additional 1 % contribution effective January 10, 2022; for the positions of Community Development Director, Library Director, Parks, Recreation and Cultural Services Director, Public Works Director, Deputy City Manager and Electric Utility Director. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve compensation and benefit modifications to Executive Management Employee contracts as specified above. Date: January 15, 2020 I hereby certify that Resolution No. 2020-16 was passed and adopted by the Lodi City Council in a regular meeting held January 15, 2020, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAIN: COUNCIL MEMBERS — None i PAMELA M. FARRIS Assistant City Clerk 2020-16