REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase the Salary Ranges for Pay Plan Category F (Unclassified Department Directors)
Report
BACKGROUND
Unclassified department directors (Pay Plan Category F) are at-will employees, appointed by the City Manager. They are not organized and do not negotiate for any changes to their wages, hours, and/or other terms and conditions of employment. Instead, the City Manager makes recommendations to the City Council regarding such changes on behalf of this employee group.
In September 2017, a compensation program was approved by the Council (RTC No. 17-0872), that adjusted salary ranges for department director classifications to address gender equality pay, attract talent, retain highly qualified employees, and to resolve salary compaction with bargaining unit represented positions. In September 2019, the program was amended to include the Deputy City Manager, a classification that was added in June 2018. With the salary increases other bargaining units will receive in July, the salary ranges of department directors will become out of alignment with the compensation program and philosophy that was previously adopted by Council.
This report recommends adjustments to the salary ranges for unclassified department director classifications (Pay Plan Category F) to maintain a consistent differential with bargaining unit represented positions. Adjusting the ranges does not result in a direct compensation increase but enables increased compensation to be considered by the City Manager based on performance.
EXISTING POLICY
Council Policy 7.3.1 Legislative Management - Goals and Policies, Goal 7.3D: Maintain a quality work force, consistent with state and federal laws, City Charter, and adopted policies in order to assure that City services are provided in an effective, efficient, and high-quality manner.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
On September 12, 2017 (RTC No. 17-0872), the City Council approved a compensation philosophy for department directors that adjusted salary ranges and offered more salary growth opportunity based on performance. It also established a pre-determined differential between classifications to prevent compaction issues in the future as identified below:
• The minimum of the salary range of the Director of Public Safety shall be 12% above the maximum of the salary range of the Deputy Chief of Public Safety with education premium. The maximum shall be 20% above the minimum.
• The minimum of the salary range of the Assistant City Manager shall be 3% above the minimum of the salary range of the Director of Public Safety. The maximum shall be 20% above the minimum.
• The Chief Information Officer and the Directors of Public Works, Environmental Services, Community Development, Finance, Human Resources, and Library and Recreation Services shall be consolidated to a single salary range. The minimum of the salary range shall be 3% above the maximum of the salary range of the Deputy Chief with education premium. The maximum shall be 20% above the minimum.
• The Director of NOVA Workforce Services shall continue to have a separate salary range due to the salary cap of the Workforce Investment Act guidelines. The salary range shall remain at the current rate of $176,750 - $212,100.
• On September 24, 2019 (RTC No. 19-0940), the City Council approved the minimum of the salary range the Deputy City Manager should be 10% below the minimum of the salary range of directors. The maximum shall be 20% above the minimum.
The Deputy Chief of Public Safety classification is represented by the Public Safety Managers Association (PSMA). PSMA members received salary increases of 6.58% on July 9, 2023. With the increases for PSMA, the salary ranges for department directors are out of alignment from the compensation program approved in September 2017. Without adjustment, the minimum of the salary range of the Director of Public Safety will be 5.09% above the maximum of the salary range of the Deputy Chief with education premium. Under the 2017 compensation philosophy, the differential should be 12%.
Recommended Changes
In order to maintain the differential between the unclassified department directors (Pay Plan Category F) and bargaining unit positions, the amendments recommended by this report for unclassified department directors (Pay Plan Category F) are as follows:
• Adjust salary ranges for unclassified department directors (Pay Plan Category F) to maintain consistent differential with bargaining unit positions as stated in the compensation program approved in September 2017 and modified in September 2019.
Salary range changes will not automatically change an incumbent’s salary unless the incumbent’s salary falls below the new range minimum, or a merit increase is awarded.
FISCAL IMPACT
The FY 2022/23 Budget includes assumptions in total compensation, which include salaries, benefits, and retirement. The adjustments in salary will affect salary related benefits, including retirement and are in excess of what has been included in the Recommended Budget. The impact to total compensation for these adjustments is anticipated to be approximately $26,000 in FY 2023/24 and $648,000 over twenty years. These increases were included in the FY 2022/23 Budget that was adopted on June 20, 2023.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Adopt a Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Salary Ranges for Unclassified Department Director Positions (Pay Plan Category F) effective July 23, 2023.
2. Do Not Adopt a Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Salary Ranges for Unclassified Department Director Positions (Pay Plan Category F).
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Salary Ranges for Unclassified Department Director Positions (Pay Plan Category F) effective July 23, 2023.
Staff
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Resolution Amending the City's Salary Resolution and Schedule of Pay to Increase the Salary Ranges for Unclassified Department Director Positions (Pay Plan Category F)
2. RTC No. 17-0872 (without attachments)
3. RTC No. 19-0940 (without attachments)