REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City’s Salary Resolution and Schedule of Pay to Increase the Salary for Designated Pay Plan Category E Classifications (Employees Represented by the Sunnyvale Managers Association), Designated Pay Plan Category D Classifications (Confidential Unrepresented Classified Management Employees), and Designated Pay Plan Category K Classifications (Unclassified Management Employees appointed by the City Attorney)
Report
BACKGROUND
In 2024, the City undertook a citywide management classification and compensation study of the non-sworn current management classifications and pay ranges, consistent with industry best practices. The City contracted with Gallagher and Co., formerly Koff & Associates (“Gallagher/K&A”), to complete this study. Classification study results were adopted by Council in 2025, with the salary work continued.
In January 2026, the City undertook a citywide compensation study of non-sworn management pay ranges as a continuation of that study, as compared with the local comparable cities in our region. The compensation study results have been discussed with the Office of the City Manager, Department Directors, the Sunnyvale Managers Association (SMA), and all non-sworn management employees. The recommended changes being brought forward to Council are based on the compensation analysis work by staff and discussions with the bargaining unit.
EXISTING POLICY
Section 1104, entitled Pay Plan, of the City Charter states that amendments to the pay schedule may be adopted from time to time by City Council upon the recommendation of the City Manager.
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)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
The City of Sunnyvale is committed to recruiting and retaining public employees who deliver exceptional service to the community. One component of recruiting and retaining staff is maintaining competitive wages in the region. Human Resources conducted a compensation study of all non-sworn management classifications. Classifications were benchmarked against a group of local comparable agencies that have been previously agreed upon through the collective bargaining process. The study found that some management classifications earned wages 5% or more below the market median, the threshold used to determine whether a classification was outside of market. After reviewing placement in market, the City reviewed compaction between management classifications. Additionally, for any classifications where not enough market comparisons could be found, internal benchmarks were used to establish the appropriate salary range. As a result of these findings, the salary table attached to the draft resolution reflects the new proposed salary ranges after changes in salary ranges were applied for non-sworn management classifications based on the results of the market-informed equity adjustment.
SMA was provided with notice of these proposed changes and an opportunity to meet and confer on the proposed changes for the classifications they represent.
FISCAL IMPACT
The total fiscal impact of the recommended compensation study changes is estimated to be $794,569 in FY 2026/27 across all City funds, while the total twenty-year impact adjusted for inflation is approximately $28.1 million. The impact to the General Fund, which is approximately 44% of the total, is $352,913 in FY 2026/27 and approximately $12.5 million over twenty years. Given that the classification and compensation study began in 2025, the FY 2026/27 Adopted Budget assumed some level of potential compensation increases for impacted non-sworn management classifications in both the current year budget and 20-year Resource Allocation Plans. The City can absorb the impact within its adopted operating budget and will add future amounts in future year budgets.
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 City Hall 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.
RECOMMENDATION
Recommendation
Adopt a Resolution Amending the City’s Salary Resolution and Schedule of Pay to Increase the Salary for Designated Pay Plan Category E Classifications (Employees Represented by the Sunnyvale Managers Association), Designated Pay Plan Category D Classifications (Confidential Unrepresented Classified Management Employees), and Designated Pay Plan Category K Classifications (Unclassified Management Employees appointed by the City Attorney) Effective September 13, 2026.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
_x__ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Delanie LoFranco, Human Resources Manager
Reviewed by: Heather Ruiz, Director, Human Resources
Reviewed by: Matthew Paulin, Director, Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution