TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Monica Espinoza, Human Resources Director
1. Subject
title
A Resolution of the City Council of the City of Orange relating to the classification, compensation, and terms of employment of Executive Management and Senior Management employees. Resolution No. 11269.
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2. Summary
Resolution No. 11269 amends the compensation and terms of employment for the City’s Top Management employees for the period of July 1, 2020, through June 30, 2021. Details of this agreement are provided under Section 6, “Discussion and Background” below.
3. Recommended Action
recommendation
Approve Resolution No. 11269. A Resolution of the City Council of the City of Orange relating to the classification, compensation, and terms of employment of Executive Management and Senior Management employees and repealing Resolution No. 11175 and all amendments thereto.
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4. Fiscal Impact
Originally, the budget for this item was $506,000 of which $370,000 is General Fund. The revised budget is $77,000 of which $56,000 is General Fund, resulting in a savings of $429,000 overall and $314,000 in the General Fund.
5. Strategic Plan Goals
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. Discussion and Background
The City’s Top Management employees are not formally recognized as an employee bargaining unit, but are covered by a City Council-adopted Resolution that provides for employee compensation and benefits. The Top Management Resolution covers the City’s department heads, division managers, and other executive management-level employees. There are currently 67 employees covered by this Resolution.
The proposed 2% salary increase and associated 2% increase in employee PERS contribution is consistent with recent amendments to agreements with other miscellaneous bargaining groups. The approval of this Resolution results in a cost savings of $429,000 for FY 21.
If approved, the new Top Management Resolution will reflect the following provisions:
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Provision |
Description |
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Term of Resolution |
July 1, 2020 through June 30, 2021. |
|
Salary |
Across the board base salary increase of two percent (2%) effective August 30, 2020. Monthly Salary Range Tables are attached as Appendices A and B. |
|
Vacation Conversion |
For Fiscal Year 2020-21 only, the vacation conversion shall be suspended except for those employees that will reach their vacation maximum accrual in the following pay period, in which case the employee shall be permitted to convert up to 50% of the vacation leave the employee would normally accrue in that fiscal year. |
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Health Insurance |
Effective the first pay period starting in January 2020, the City’s contribution toward medical insurance benefits per employee shall increase by $120.00 per month to be commensurate with other management labor groups. New Medical Waiver Provision: 1) Employees who were members of Top Management on or before December 31, 2020, OR have a hire date prior to July 1, 2019 (with the exception of the Police Chief and Fire Chief), shall receive the amount designated in Section 22(B) towards the Flexible Benefit Plan. 2) Employees in the classifications of Police Chief or Fire Chief with a hire date prior to March 29, 2020, shall receive the amount designated in Section 22(B) towards the Flexible Benefit Plan. 3) For employees that do not meet the criteria of Sections 1 or 2 above, Executive Management shall receive $750.00 per month, and members of Senior Management shall receive $500.00 per month. |
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Long Term Disability Insurance |
Increase Long Term Disability Insurance benefit to $12,000.00 per month (from $8,000.00) for Executive Management, and a maximum of $8,000.00 per month (from $6,000.00) for Senior Management employees. |
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Retirement Cost Sharing |
Effective the pay period beginning August 30, 2020 through August 28, 2021, Top Management employees shall temporarily pay an additional two percent (2%) of pensionable compensation, on a pre-tax basis, towards the City contribution pursuant to the cost sharing arrangement set forth in California Government Code 20516(f). |
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Language Changes |
Implement language clean-up to conform Resolution to current practices or agreements. |
7. ATTACHMENTS
• Resolution No. 11269