REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Execute a Side Letter Agreement between the City of Sunnyvale and the Public Safety Managers Association (Pay Plan Category M) to Clarify Implementation of the Education Incentive Pay and Adopt a Resolution to Amend the City's Schedule of Pay to Implement that Side Letter by Adding Two New Salary Ranges for Pay Plan Category M
Report
BACKGROUND
In 2016, the City and Public Safety Managers Association (PSMA) negotiated a Memorandum of Understanding (MOU) effective July 1, 2015 to December 31, 2021. The MOU contains a provision for an education incentive effective July 1, 2016. The incentive is 2.5% in addition to an employee’s base hourly rate for possession of a graduate degree from an accredited college or university. The incentive was implemented as a separate pay. In September 2017, PSMA contacted the City and stated that it was their understanding that the incentive would be included on the salary table as part of base pay for eligible employees because a similar education incentive for the Public Safety Officers Association (PSOA) is included in salary table. PSMA requested that implementation of the education incentive be revised in that manner.
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
To include education incentive on the salary table, two new salary ranges need to be added to the salary table for Captain with graduate degree and Deputy Chief with graduate degree.
During the negotiation process in 2016, PSMA did not explicitly propose to include the education incentive on the salary table. Also, the City also did not explain the intent to implement the education incentive as a separate pay not on the salary table as is done with PSOA.
The parties have agreed to revise implementation of the incentive to include the applicable amounts in base pay on the salary table with a side letter agreement (Attachment 1) as follows:
1. Effective the first pay period following Council approval (April 22, 2018), the salary table will be revised to include pay range 19PSG (Public Safety Captain with Graduate Degree) and 20PSG (Deputy Chief Public Safety with Graduate Degree).
2. Employees currently receiving the educational incentive will be moved to the appropriate pay range.
3. All other provisions of the MOU remain in effect unchanged.
FISCAL IMPACT
The methodology of including education incentive pay on the salary table will increase the value of Paid Time Off (PTO), Administrative Leave, and Floating Holiday accruals, and the value of overtime pay for certain reimbursable deployments. Staff estimates that the impact is small due to the small size of PSMA and the small number of employees qualified for the incentive. The total impact is estimated to be approximately $6,000 per year in additional cost, or roughly $150,000 over a twenty year period.
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.
ALTERNATIVES
1. Authorize the City Manager to Execute a Side Letter Agreement between the City of Sunnyvale and the Public Safety Manager’s Association (Pay Plan Category M) to Clarify Implementation of the Education Incentive Pay and Adopt a Resolution to Amend the City's Schedule of Pay to Implement that Side Letter by Adding Two New Salary Ranges for Pay Plan Category M
2. Do not Authorize the City Manager to Execute a Side Letter Agreement between the City of Sunnyvale and the Public Safety Manager’s Association (Pay Plan Category M) and Do Not Adopt a Resolution to Amend the City's Schedule of Pay to Add Two New Salary Ranges for Pay Plan Category M
STAFF RECOMMENDATION
Recommendation
Alternative 1: Authorize the City Manager to Execute a Side Letter Agreement between the City of Sunnyvale and the Public Safety Manager’s Association (Pay Plan Category M) to Clarify Implementation of the Education Incentive Pay and Adopt a Resolution to Amend the City's Schedule of Pay to Implement that Side Letter by Adding Two New Salary Ranges for Pay Plan Category M.
Staff
Prepared by: Vienne Choi, Principal Human Resources Analyst
Reviewed by: Anthony Giles, Interim Director, Department of Human Resources
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Side Letter Agreement
2. Salary Table