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Consent
Item No. 5.
| MEETING DATE: 06/17/2024 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Gabriella Yap, Assistant City Manager |
| SUBJECT: | APPROVE RESOLUTIONS ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE PROFESSIONAL EMPLOYEES’ GROUP, AND APPROVE A RESOLUTION AMENDING RESOLUTION 6115 PERTAINING TO COMPENSATION FOR MANAGEMENT AND EXECUTIVE EMPLOYEES
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RECOMMENDATION:
That the City Council:
A. Consider and approve a Resolution adopting the Memorandum of Understanding between the City of La Habra and the Professional Employees’ Group;
B. Approve a Resolution amending Resolution No. 6115, pertaining to the compensation plan for Management and Executive employees; and,
C. Approve an appropriation of funds from the FY2023-2024 adopted budget cost of one-time lump sum pay adjustments.
B. Approve a Resolution amending Resolution No. 6115, pertaining to the compensation plan for Management and Executive employees; and,
C. Approve an appropriation of funds from the FY2023-2024 adopted budget cost of one-time lump sum pay adjustments.
DISCUSSION:
The City’s current labor agreement with the Professional Employees’ group will expire on June 30, 2024. Representatives from the bargaining group and City Administration have met and conferred in good faith regarding salary, benefits, and other terms and conditions of employment. Tentative agreements for a successor Memorandum of Understanding have been reached. The Professional Employees’ Group, which is comprised of employees funded from state child care grants, have agreed to a one-year contract term, starting on July 1, 2024, and ending on June 30, 2025, subject to City Council approval.
The City’s management and executive employees are not represented as a bargaining unit and receive any pay or benefit adjustments solely at the discretion of the City Council.
The key fiscal components for both groups are as follows:
REPRESENTED PROFESSIONAL EMPLOYEES’ GROUP
Contract Term
One year, starting on July 1, 2024, and ending on June 30, 2025
Base Salary Compensation
The City’s management and executive employees are not represented as a bargaining unit and receive any pay or benefit adjustments solely at the discretion of the City Council.
The key fiscal components for both groups are as follows:
REPRESENTED PROFESSIONAL EMPLOYEES’ GROUP
Contract Term
One year, starting on July 1, 2024, and ending on June 30, 2025
Base Salary Compensation
- 4% base salary adjustment effective on July 13, 2024
One-Time Compensation
- Prior to June 30, 2024, the City will provide a one-time lump sum pay adjustment of seven percent (7%) to all full-time employees.
- Employees must still be employed as of June 30, 2024
- Employees hired on or after June 15, 2024, will not be eligible for the lump sum payment.
- The calculation of the one-time pay adjustment will be as follows: base hourly rate x 2,080 hours x .07.
Bilingual Pay
- Effective July 13, 2024, the City will increase bilingual pay by $25 per month to $175 per month.
Cafeteria Insurance Contribution
- Effective December 1, 2024, the City will increase its current insurance contribution by $75 per month to a maximum of $1,725 per month on a use or lose basis.
- Effective December 1, 2024, the City will increase its current op-out contributions by $25 per month to a maximum of $325 per month.
NON-REPRESENTED MANAGEMENT, PUBLIC SAFETY MANAGEMENT, AND EXECUTIVE MANAGEMENT EMPLOYEES
Range Adjustments
- Adjust salary ranges to county average based on annual salary and benefits surveys.
One-Time Compensation
- Full-time management employees (excluding employees in the grant-funded WIOA program) who are on City payroll as of June 30, 2024, will receive a one-time lump-sum payment equal to two percent (2%) of base annual pay based on their salary in effect as of June 30, 2024.
Cafeteria Health Insurance Contribution
Management Classification Only
Management Classification Only
- Effective July 1, 2024, the City will increase its current insurance contribution by $150 per month to a maximum of $1,800 per month on a use or lose basis.
Administrative Leave
Management, Public Safety Management, and Executive Management
Management, Public Safety Management, and Executive Management
- Effective July 1, 2024, the City will provide an additional five hours to annual Administrative Leave banks on a use or lose basis.
Education Incentive: Public Safety Management Only
- Effective July 13, 2024, the City will provide Education Incentive pay to Public Safety Management of $100 a month for a Bachelor’s Degree or $125 per month for a Master’s degree.
FISCAL IMPACT/SOURCE OF FUNDING:
Cost Estimate of Negotiated Pay and Benefits for Professional Employees' Group
If approved, the total cost of the one-year MOU with the Professional Employees Group is estimated at approximately $135,818. Costs associated with salary, benefits, and other terms and conditions of employment with employees in this group are completely state grant-funded.
This estimated cost consists of both recurring costs and “one-time” costs apportioned to the Non-General Fund budget. The breakdown of these estimated costs and funding source, is as follows:
If approved, the total cost of the one-year MOU with the Professional Employees Group is estimated at approximately $135,818. Costs associated with salary, benefits, and other terms and conditions of employment with employees in this group are completely state grant-funded.
This estimated cost consists of both recurring costs and “one-time” costs apportioned to the Non-General Fund budget. The breakdown of these estimated costs and funding source, is as follows:
| SOURCE | FY24-25 | |
| Non-General Fund Grants | ||
| Recurring | $58,272 | |
| One-Time | $77,546 |
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| Non-General Fund Grants Total | $135,818 | |
Cost Estimate of Proposed Pay and Benefits for Non-represented Management, Public Safety Management and Executive Management
If approved, the total cost of pay and benefit increases for non-represented Management, Public Safety Management, and Executive Management is estimated to be approximately $418,101 over the next fiscal year. These costs include a 5 percent contractual adjustment to the City Manager’s annual base pay, totaling $13,910, subject to City Council approval.
This estimated cost consists of both recurring costs and "one-time" costs apportioned between the General Fund and Non-General Fund budgets. The breakdown of these estimated costs and funding sources, is as follows:
| SOURCE | FY24-25 | |||
General Fund |
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| Recurring | $157,923 | |||
| One-Time | $86,693 | |||
| General Fund Total | $244,616 | |||
| Non-General Fund | ||||
| Recurring | $110,065 | |||
| One-Time | $63,420 | |||
| Non-General Fund Total | $173,485 | |||
All Funds |
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| Recurring | $267,988 | |||
| One-Time | $150,113 | |||
| All Funds Total | $418,101 |
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GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
ED 9.1 – Balanced Fiscal Practices