REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the City's Salary Resolution and the Schedule of Pay to Increase the Salary Range for the Director of NOVA Workforce Services
Report
BACKGROUND
Unclassified department directors (pay plan category F) are at-will employees, appointed by the City Manager. They are not organized into a collective bargaining unit 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 to this employee group. The exception is the Director of NOVA Workforce Services who has a separate salary range due to the salary cap of the Workforce Innovation and Opportunities Act (WIOA) guidelines.
At the May 7, 2024 Council meeting, the City Council approved setting the minimum of this range at 10% below the Federal Cap and the maximum at 20% above the Federal cap. Setting the cap above the federal maximum allows the City Manager to approve compensation beyond the federal cap if other sources of grant funding are available and eligible to be used to fund the Director salary, which would help minimize compaction with bargaining unit represented management subordinates and to narrow the salary range gap with other department directors.
The 2025 Federal guidelines have recently been released, increasing the cap applicable to the NOVA director position to $225,700. Consequently, staff is recommending increasing the salary range from $201,727 - $266,280 to a new range of $205,182 - $270,840.
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
Although NOVA Workforce Services is a City Department, it is a nonprofit, federally funded agency that provides workforce development services to a consortium of eight jurisdictions, composed of the County of San Mateo, and the Santa Clara County cities of Cupertino, Los Altos, Milpitas, Mountain View, Palo Alto, Santa Clara, and Sunnyvale.
Since NOVA is a federally funded program, the Director of NOVA Workforce Services classification has a separate salary range determined by WIOA guidelines and City Council policy. The City’s salary table is updated as changes are implemented by the federal government salary schedules. The 2025 Executive and Senior Level Pay Tables have been announced with Level 2 set as $225,700. The City is proposing to increase the maximum salary for the Director of NOVA Workforce Services to the new federal cap plus 20%, or $270,840, and set the minimum salary at 10% below the federal cap or $205,182, effective February 4, 2025.
FISCAL IMPACT
The salary for the Director of NOVA Workforce Services is included in the City’s budget. Adjusting the salary range does not result in a direct compensation increase but enables increased compensation to be considered by the City Manager based on performance and availability of funds for any portion of salary that exceeds the 2025 federal cap of $225,700.
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 Range for the Director of NOVA Workforce Services.
2. Do Not Adopt a Resolution Amending the City’s Salary Resolution and Schedule of Pay to Increase the Salary Range for the Director of NOVA Workforce Services.
3. Provide alternative direction to staff.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Adopt a Resolution Amending the City’s Salary Resolution and Schedule of Pay to Increase the Salary Range for the Director of NOVA Workforce Services.
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*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Kristin Armbruster, Human Resources Manager
Reviewed by: Tina Murphy, Director, Human Resources
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Resolution