TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Monica Espinoza, Human Resources Director
1. Subject
title
Executive Management and Senior Management employees’ classification, compensation, and terms of employment and Citywide Pay Schedule. Resolution Nos. 11577 and 11578.
body
2. Summary
Resolution No. 11577 amends the compensation and terms of employment for the City’s Executive Management and Senior Management employees for the period of July 1, 2024, through June 30, 2025.
Resolution No. 11578 amends the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2 Section 570.5.
3. Recommended Action
recommendation
1. Adopt Resolution No. 11577. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11480 and all amendments thereto and approving provisions relating to the classification, compensation, and terms of employment of Executive Management and Senior Management employees effective July 1, 2024, through and including June 30, 2025.
2. Adopt Resolution No. 11578. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11562 and amending the Citywide Pay Schedule in accordance with the requirements of the California Code of Regulations, Title 2, Section 570.5.
end
4. Fiscal Impact
The total cost is $366,440 of which $252,852 is General Fund. These adjustments are included in the Fiscal Year 2024-2025 budget.
end
5. Strategic Plan Goals
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
e: Attract, retain and develop quality employees dedicated to public service.
6. Discussion and Background
The City’s Top Management employees are not formally recognized as an employee bargaining group, but are covered by a City Council-adopted Resolution that provides for employee compensation and benefits. The Top Management Resolution covers the City’s executives, division managers, and other senior management employees who are deemed confidential employees and are exempt from overtime provisions of the Federal Labor Standards Act (FLSA).
Benefits:
Pursuant to City Council feedback received at the September 10th meeting, a Side Letter Agreement was established which incorporated three benefit terms consistent with what other bargaining groups have received. They include:
1. Adjusting bereavement leave from three to five days per incident;
2. Adjusting Christmas Eve holiday pay from half-day to full-day, if December 24th falls on a Monday through Thursday; and
3. Adjusting the City’s contribution towards medical insurance benefits per employee by $100.00 per month.
Cost-of-Living Adjustment:
Pursuant to City Council direction at the November 12 meeting, staff is bringing forward for consideration a three percent cost-of-living adjustment to base salary for all Top Management employees effective August 25, 2024, as incorporated into monthly salary tables as Appendices A and B. This consideration is in line with the Consumer Price Index (CPI) as reported by the U.S. Bureau of Labor Statistics, year-to-date average of 3.3%. This action is consistent with other City labor groups receiving cost-of-living adjustments during the last calendar year.
Language Changes:
The Resolution incorporates language clean-up that conforms to current practices; i.e. Update of the Public Employees’ Medical and Hospital Care Act statutory rate (adjusted annually by the California Public Employees’ Retirement System), medical insurance eligibility and waiver provisions, and Internal Revenue Service Constructive Receipt language.
7. ATTACHMENTS
• Resolution No. 11577
• Resolution No. 11578