REPORT TO COUNCIL
SUBJECT
Title
Amend the Salary Resolution to Update the Schedule of Pay to Provide Salary Increases for Pay Plan Category G (Unrepresented Classified Confidential Employees) and Align Pay Plan Category G (Unrepresented Classified Confidential Employees) with Pay Plan Category B (Sunnyvale Employees Association) With Respect to Wages
Report
BACKGROUND
Unrepresented Classified Confidential (pay plan category G) employees are not organized and do not negotiate for any changes to their wages, hours, and/or other terms and conditions of employment.
Pursuant to the existing provisions of Salary Resolution Section 1.000, pay plan category G employees currently receive the same treatment as pay plan category B (SEA) employees for purposes of benefits and leaves, except for Paid Time Off (PTO) and floating holiday as defined in Sections 3.110 and 3.310. Prior to September 2016, category G employees received the same treatment as pay plan category B employees with respect to wages. The City Council took action in September 2016 to separate category G employees from category B employees on wages (3.5% increase effective Sept. 20, 2016; 3% increase of July 2, 2017; and 1.5% increase on July 1, 2018). This report recommends aligning category G and category B employees with respect to wages and to provide wage adjustments to pay plan category G employees to achieve the goal of maintaining consistent wages between represented and unrepresented employees of similar classifications.
The City and the Sunnyvale Employees Association (SEA) entered into a tentative agreement on May 1, 2017 for a successor Memorandum of Understanding (MOU) that includes wage increases for category B (SEA) employees. This successor MOU is also on the City Council agenda for May 23, 2017. The action outlined in this Report to Council provides for the same wage adjustments recommended for category B employees to be implemented for category G employees.
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)(5) in that it is a governmental, organizational or administrative activity that will not result in direct or indirect changes in the environment.
DISCUSSION
Staff has identified the following modifications to the Salary Resolution for pay plan category G employees. Benefits are the same as category B employees unless otherwise indicated. All changes shall be inclusive of the pay period of City Council approval unless otherwise indicated. All other category G benefits not addressed below will remain unchanged.
Wages
Salary adjustments
• Effective the first full pay period in July 2016: 5.5% across the board increase to be effective the pay period inclusive of Council approval. (Council previously approved a 3.5% salary increase on September 20, 2016. The cumulative 5.5% difference will be retroactive to July 2016.)
• Effective the first full pay period in July 2017: 4% salary increase (Council previously approved a 3% salary increase)
• Effective the first full pay period in July 2018: 2% salary increase (Council previously approved a 1.5% salary increase)
These increased salary adjustments bring category G employees into pay equity with category B employees. On September 20, 2016, Council approved a total wage adjustment of 8% over three years and authorized an additional 2% if needed to maintain pay equity with category B employees. The total wage increase recommended in this Report to Council is 11.5%.
Out-of-Class Pay for Special Assignment Work
This Report to Council also recommends approval of out-of-class pay for special assignment work in the amount of 5% more than an employee’s normal pay rate for category G employees.
FISCAL IMPACT
For the current fiscal year, the costs are mostly budgeted with the remainder being absorbed through expenditure savings primarily due to vacancies. The incremental cost of the additional salary increase is included in the FY 2017/18 Recommended Budget and totals approximately $1.3 million over twenty years.
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
Adopt the Resolution to Amend the Salary Resolution to Update the Schedule of Pay to Provide Salary Increases for Pay Plan Category G (Unrepresented Classified Confidential Employees) and Align Pay Plan Category G (Unrepresented Classified Confidential Employees) with Pay Plan Category B (Sunnyvale Employees Association) With Respect to Wages
Staff
Prepared by: Anthony Giles, Human Resources Manager
Reviewed by: Teri Silva, Director, Human Resources
Reviewed by: Walter C. Rossmann, Assistant City Manager
Approved by: Deanna J. Santana, City Manager
ATTACHMENT
1. Resolution to Amend Salary Resolution
2. Revised Salary Resolution
3. Revised Salary Table