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. 11575 and 11576 or Resolutions Nos. 11577 and 11578.
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2. Summary
A previous staff report was presented at the August 27, 2024 City Council meeting. The City Council directed staff to bring forward this item at the September 10, 2024 meeting and provide two options: Option 1 incorporates an effective date of June 30, 2024 and Option 2 incorporates an effective date of August 25, 2024.
3. Recommended Action
recommendation
Adopt option 1 or 2:
Option 1 (Cost of Living Adjustment effective date of June 30, 2024):
A. Adopt Resolution No. 11575. 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; and
B. Adopt Resolution No. 11576. 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; OR
Option 2 (Cost of Living Adjustment effective date of August 25, 2024):
A. 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; and
B. 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.
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4. Fiscal Impact
The total cost for Option 1 is $433,065 of which $298,461 is General Fund based upon an effective date of June 30, 2024, when the contract expired.
The total cost for Option 2 is $366,440 of which $252,852 is General Fund based upon an effective date of August 25, 2024.
These adjustments are currently included in the Fiscal Year 2024-2025 budget.
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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 department heads, division managers, and other senior management employees.
If approved, the new Top Management Resolution terms reflect the following provisions:
|
Provision |
Description |
|
Term |
July 1, 2024 through June 30, 2025. |
|
Salary |
Three percent (3.0%) cost of living adjustment to base salary for all Top Management Employees effective June 30, 2024 or August 25, 2024, incorporated into monthly salary tables as Appendices A and B. |
|
Health Insurance |
Effective January 1, 2025, increase the City’s contribution towards medical insurance benefits per employee by $100.00 per month. No increase for those employees who waive medical. |
|
Holiday Pay |
Increase Christmas Eve holiday pay from half-day to full-day, if December 24th falls on a Monday through Thursday. |
|
Bereavement Leave |
Increase bereavement leave from three (3) to five (5) days per incident. |
|
Language Changes |
Implement language clean-up to conform Resolution to current practices or agreements. |
7. ATTACHMENTS
• Resolution No. 11575
• Resolution No. 11576
• Resolution No. 11577
• Resolution No. 11578