REPORT TO COUNCIL
SUBJECT
Title
Amend the Schedule of Pay of the Salary Resolution: Salary Adjustment for Pay Plan Category C (applies to Classified Public Safety Officers and Lieutenants) and Pay Plan Category D/E (applies to Public Safety Captains and Public Safety Deputy Chiefs) and Approve Budget Modification No. 27
Report
BACKGROUND
The 2006-2015 Memorandum of Understanding (MOU) with the Public Safety Officers' Association (PSOA) provides for salary adjustments for Public Safety Officers and Public Safety Lieutenants. Adjustments are to be based on the market survey data of total compensation for 12 Bay Area cities and require that the City "provide such increase as needed to adjust the wages of the Public Safety Officers and Public Safety Lieutenants eleven percent (11%) above" the survey average of the top eight agencies.
The July 1, 2013 through June 30, 2015 MOU with the Public Safety Managers' Association (PSMA) states that Public Safety Captains and Public Safety Deputy Chiefs are to receive the same percentage of salary increase as the Public Safety Lieutenant classification on the same effective date as the Public Safety Lieutenant and retroactive, if applicable.
EXISTING POLICY
The proposed increases are in accordance with the provisions of the current MOU between the City of Sunnyvale and the PSOA and current MOU between the City of Sunnyvale and the PSMA.
ENVIRONMENTAL REVIEW
N/A
DISCUSSION
As noted, when the current MOU was adopted, the previous MOUs with the PSOA established a wage formula based upon an annual market survey of total compensation for 12 Bay Area cities. The formula provides for total compensation for Sunnyvale classifications to be 11 percent above the survey average of the top eight surveyed agencies. Pursuant to the current MOU, the same methodology was used for this year's survey.
Based on the results of this year's survey, it is recommended that the Pay Plan Category C and D/E of the Schedule of Pay of the Salary Resolution be amended pursuant to the City's current MOUs with the PSOA and PSMA to reflect the new pay rates for the following classifications, increased by the indicated percentages, effective retroactive to July 6, 2014: 2.49 percent Public Safety Officer II, 2.36 percent Public Safety Lieutenant, 2.36 percent for Public Safety Captains and Public Safety Deputy Chiefs. Pursuant to the Salary Resolution, the classification of Public Safety Officer-in-Training is set at 10 percent below Public Safety Officer II. The classification of Public Safety Officer I is set at 5 percent above Public Safety Officer-in-Training.
FISCAL IMPACT
The FY 2014/15 Adopted Budget included a four percent increase for all sworn personnel. Additionally, the General Fund Long Term Financial Plan projects three percent increases per year through FY 2023/24 and four percent per year through the remainder of the plan. Because the survey resulted in actual increases less than budgeted, the General Fund will realize approximately $700,000 in savings in the current year and approximately $18.2 million over 20 years if the remaining salary assumptions hold.
While these survey results do lower the salary base going forward, there is significant uncertainty around future survey results. In past years, low survey results have been followed by high survey results. Over the last twenty years, the survey has resulted in an annual average increase of 4.1 percent. As the economy recovers and upward pressure is placed on salaries, it is possible that the survey will return a value higher than budgeted, thus negating the reduction in the base.
Staff is recommending that the FY 2014/15 Department of Public Safety budget be reduced to reflect the actual salary increases provided. These savings will help to absorb the cash flow needs of the General Fund related to accelerating public safety recruitment activities discussed in a separate staff report tonight. Budget Modification No. 27 has been prepared to reduce the Department of Public Safety's operating budget to reflect the lower than anticipated increase in salaries.
Budget Modification No. 27
FY 2014/15
|
Current |
Increase/ (Decrease) |
Revised |
General Fund |
|
|
|
Expenditures |
|
|
|
Program 471 - Police Services |
$29,231,828 |
($310,274) |
$28,921,554 |
Program 472 - Fire Services |
$26,880,869 |
($295,738) |
$26,585,131 |
Program 473 - Community Safety Services |
$4,101,921 |
($21,720) |
$4,080,201 |
Program 474 - Personnel and Training |
$1,807,557 |
($13,388) |
$1,794,169 |
Program 475 - Investigation Services |
$4,741,370 |
($46,787) |
$4,694,583 |
Program 477 - Public Safety Administrative Services |
$5,320,629 |
($13,274) |
$5,307,355 |
Reserves |
|
|
|
Budget Stabilization Fund |
$42,299,757 |
$701,181 |
$43,000,938 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
STAFF RECOMMENDATION
Recommendation
Amend Pay Plan Category C and D/E of the Schedule of Pay of the Salary Resolution to reflect the new pay rates pursuant to the City's current MOUs with the PSOA and PSMA, effective retroactive to July 6, 2014 and Approve Budget Modification No. 27.
Staff
Prepared by: Allison Suggs, Human Resources Manager
Reviewed by: Teri Silva, Director of Human Resources
Reviewed by: Grace K. Leung, Director of Finance
Reviewed by: Robert A. Walker, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. 10/15/14 PSOA Total Compensation Survey - Public Safety Officer
2. 10/15/14 PSOA Total Compensation Survey - Public Safety Lieutenant
3. Resolution for Pay Plan Category C with Exhibit A (Salary Schedule)
4. Resolution for Pay Plan Category D/E (Public Safety Captains and Public Safety Deputy Chiefs) with Exhibit A (Salary Schedule)