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HomeMy WebLinkAboutAgenda Report - December 7, 2022 H-07CITY OF CALIFORNIA AGENDA ITEM H "I COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Approving Revisions to Contracts for Lodi Executive Management Employees (Excluding Council Appointees) for the Period January 1, 2023 through December 31, 2025 MEETING DATE: December 7, 2022 PREPARED 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, 2023 through December 31, 2025. BACKGROUND INFORMATION: Representatives from the City of Lodi have been negotiating with the various bargaining units over the past twelve months and have successor agreements in place. Staff is requesting that the Executive Management employees be extended similar benefits and compensation as extended to all groups. Staff is requesting the following wage and benefit changes for all Executive Managers: • Fifteen percent (15%) wage adjustments as follows: o Six percent (6%) effective January 9, 2023; o Five percent (5%) effective January 8, 2024; and o Four percent (4%) effective January 6, 2025. • Increase to the City's contribution towards medical premiums and remain over the term of the contract: o $ 2,005.52 per month for family coverage; o $ 1,542.71 per month for employee plus one dependent coverage; and o $ 771.35 per month for employee only coverage. • Increase to the annual maximum dental benefit from $1,000 to $1,250 and the addition of orthodontia benefits for the employees and eligible dependents with a lifetime maximum benefit of $1,250. • Addition of one fixed holiday in observance of Juneteenth. Additionally, staff is recommending the following equity adjustments for positions that are more significantly under market median. These equity adjustments are necessary in order to retain the executive leadership talent within the City. Even with these increases, the wages remain below median of our comparative agencies. • Additional one percent (1%) effective January 9, 2023 for the Police Chief; • Additional one point six two percent (1.62%) effective January 9, 2023 for the Electric Utility Director; APPROVED: INov y,,:`;.:r•_ Stephen Schwabauer, City Manager Additional three point six two percent (3.62%) effective January 9, 2023 for the Parks, Recreational and Cultural Services Director; Additional five point eight one percent (5.81 %) effective January 9, 2023 for the Library Services Director; and Additional seven point one eight percent (7.18%) effective January 9, 2023 for the Community Development Director. Staff recommends that the Council approve the revisions to compensation and other benefits for the Executive Management employees. FISCAL IMPACT: The total long term annual cost of the proposed agreement is $320,000. The total cost of the term of the agreement is $718,000 as shown below. Calendar Year 2023 $ 153,000 Calendar Year 2024 $ 245,000 Calendar Year 2025 $ 320,000 Total Cost 3 ears $ 718,000 FUNDING AVAILABLE: Budget adjustments for these and other compensation increases for City employees may be needed at Mid Year Fiscal Year 2022/23. Vacancy savings are the first source for funding the increases for this and future employee contract changes in the coming Fiscal Year. These savings have been significant in the past three years allowing the City to b0d up substantial reserves. These reserves may be necessary to finance a portion of salary increases. Staff will first seek to prioritize Pension Stabilization Reserves held at PARS to pay eligible pension 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. Adele Post, Human Resources Manager Andrevi K( ys (Nov 17. 2022 17:1.5 PSTI Andrew Keys, Deputy City Manager RESOLUTION NO. 2022-306 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING COMPENSATION AND BENEFIT MODIFICATIONS FOR EXECUTIVE MANAGEMENT EMPLOYEES FOR THE PERIOD JANUARY 1, 2023 THROUGH DECEMBER 31, 2025 WHEREAS, the City has completed negotiations with all bargaining units; and WHEREAS, it is recommended that Council provide the same salary and benefit modifications to the Executive Management Employee contracts: • Six percent (6%) increase to base salary effective January 9, 2023; Five percent (5%) increase to base salary, effective January, 8, 2024; and Four percent (4%) increase to base salary, effective January 6, 2025; • Additional wage increase of one percent (1 %) effective January 9, 2023 for the Police Chief; • Additional wage increase of one point six two percent (1.62%) effective January 9, 2023 for the Electric Utility Director; • Additional wage increase of three point six two percent (3.62%) effective January 9, 2023 for the Parks, Recreation and Cultural Services Director; • Additional wage increase of five point one eight percent (5.81%) effective January 9, 2023 for the Library Services Director; • Additional wage increase of seven point one eight percent (7.18%) effective January 9, 2023 for the Community Development Director; • Increase to the City's contribution towards medical premiums and remain fixed over the term of the contract: o $ 2,005.52 per month for family coverage; o $ 1,542.71 per month for employee plus one dependent coverage; and o $ 771.35 per month for employee only coverage. • Increase to the annual maximum dental benefit from $1,000 to $1,250, and the addition of orthodontia benefits for the employees and eligible dependents with a lifetime maximum benefit of $1,250. • Addition of one fixed holiday in recognition of the Juneteenth holiday. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve compensation and benefit modifications to Executive Management Employee contracts. Date: December 7, 2022 I hereby certify that Resolution No. 2022-306 was passed and adopted by the Lodi City Council in a regular meeting held December 7, 2022, by the following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None CA�4VL�1� OLIVIA NASHED City Clerk 2022-306