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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 07/13/2022
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2223. A resolution of the Mayor and City Council of the City of San Luis, Arizona, approving and adopting a salary adjustment to the classified service; superseding any conflicting provisions of existing regulations, policies or procedures; providing for severability; and declaring an emergency. (Lizandro Galaviz, Acting City Manager)
(6 votes in favor are required to pass immediately as an emergency measure per A.R.S. § 19-142)
(6 votes in favor are required to pass immediately as an emergency measure per A.R.S. § 19-142)
SUMMARY:
Background: The City of San Luis Council approved the classified service salary classifications and a pay grade schedule by Resolution No. 2051-A on July 9, 2018. Over the past four (4) years, the city has incrementally increased the pay rate within budgetary and statutory constraints to meet the pay-rate goals of that plan to get all employees to at least the recommended starting pay.
The citizen initiative Proposition 206 passed an incremental annual increase in the minimum wage through the year 2020, and further increases in year 2021 and 2022 by state law which created the need to update the City's pay grade schedule.
The experts at CPS HR, who previously created the city's salary classifications and pay grade schedule, updated the City's pay grades to adjust for the state minimum wage changes. The pay grades in the revised schedule average a 5% increase. To continue the City's efforts to provide employees competitive salaries, staff is proposing a salary adjustment that is attempting to bring employees to the recommended pay rate considering years in position, and to implement the new pay grade schedule.
How the salary adjustment works: The salary adjustment is NOT an increase across the board; instead, it considers time in position and pay rates in the new pay grade schedule.
1. adjusts salaries in the classified service for the reasons described above;
2. amends the contracts of the contracted employees to allow for adjustments they would receive if they were in the classified service;
3. authorizes staff to implement the above changes; and
4. allows the Finance Department, with the approval of the City Manager, to make budget transfers for any budget shortfall for the salary adjustment.
5. retains Sections 10 and 11 of Resolution No. 2051-A (which adopted the salary plan) to preserve the integrity of the salary adjustment under this Resolution No. 2223. Resolution No. 2051-A is added to the attachments.
After the posting of this Agenda Item, it was suggested that staff should offer alternative motions for City Council to consider whether or not the contracted employees should be included in the salary adjustment.
The citizen initiative Proposition 206 passed an incremental annual increase in the minimum wage through the year 2020, and further increases in year 2021 and 2022 by state law which created the need to update the City's pay grade schedule.
The experts at CPS HR, who previously created the city's salary classifications and pay grade schedule, updated the City's pay grades to adjust for the state minimum wage changes. The pay grades in the revised schedule average a 5% increase. To continue the City's efforts to provide employees competitive salaries, staff is proposing a salary adjustment that is attempting to bring employees to the recommended pay rate considering years in position, and to implement the new pay grade schedule.
How the salary adjustment works: The salary adjustment is NOT an increase across the board; instead, it considers time in position and pay rates in the new pay grade schedule.
- Probationary and recently-promoted employees: Their salary only adjusts if needed to meet the recommended minimum rate of their respective grade.
- Employees reclassified within the last six (6) months: Their salary adjusts only if needed to meet the recommended minimum rate of their respective grade.
- Employees who have completed more than one (1) year and their pay rate is higher than the recommended rate: Their salary adjusts at a 1.5% increase.
- Employees who have completed more than one (1) year and not in the above categories: Their salary adjusts between 2% to 12% depending upon their pay grade, time in position, and the recommended adjustment.
1. adjusts salaries in the classified service for the reasons described above;
2. amends the contracts of the contracted employees to allow for adjustments they would receive if they were in the classified service;
3. authorizes staff to implement the above changes; and
4. allows the Finance Department, with the approval of the City Manager, to make budget transfers for any budget shortfall for the salary adjustment.
5. retains Sections 10 and 11 of Resolution No. 2051-A (which adopted the salary plan) to preserve the integrity of the salary adjustment under this Resolution No. 2223. Resolution No. 2051-A is added to the attachments.
After the posting of this Agenda Item, it was suggested that staff should offer alternative motions for City Council to consider whether or not the contracted employees should be included in the salary adjustment.
RECOMMENDATION / SUGGESTED MOTION:
Alternative motion options suggested:
1. I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2223 TO INCLUDE CONTRACTED EMPLOYEES IN THE SALARY ADJUSTMENT AND DECLARE AN EMERGENCY.
OR
2. I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2223 WITHOUT CONTRACTED EMPLOYEES IN THE SALARY ADJUSTMENT AND DECLARE AN EMERGENCY.
1. I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2223 TO INCLUDE CONTRACTED EMPLOYEES IN THE SALARY ADJUSTMENT AND DECLARE AN EMERGENCY.
OR
2. I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2223 WITHOUT CONTRACTED EMPLOYEES IN THE SALARY ADJUSTMENT AND DECLARE AN EMERGENCY.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $870,000
- BUDGETED AMOUNT:
- See fiscal impact statement
- AVAILABLE AMOUNT TO TRANSFER:
- See fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We budgeted $705,000 in the FY 2023 budget, hence there is a shortfall of $165,000. Department heads are in support of this proposal, and they have confirmed that they will find the necessary budget within their departments to make the salary implementation possible. We are asking approval to council to authorize Finance to make the necessary transfers with authorization of City manager and approval of department heads.
Attachments
- Resolution No. 2223 - Option #1
- Resolution No. 2223 - Option #2
- Resolution No. 2051-A
- Pay Grade Schedule