HomeMy WebLinkAboutHR Elected City Clerk & City Attorney Benefit AmendmentCITY ailzmwow::� Agenda Item No: 4. c
Meeting Date: September 21, 2015
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Management Services
Prepared by: Deirdre Dolan, HR Director City Manager Approval:
TOPIC: Compensation and Salary Range Changes
SUBJECT: ADOPT RESOLUTION APPROVING THE FOLLOWING PERSONNEL
ACTIONS:
1. Amend Resolutions 13741,13742, and 13743 Establishing the
Compensation and Working Conditions for the Executive
Management, Mid -Management, Elected City Clerk and Elected
Part -Time City Attorney Classifications to eliminate the
Management Allowance, and increase the respective salary
ranges by an equivalent amount; and
2. Increase the salary range for the Accounting Manager
classification
RECOMMENDATION: Adopt Resolution
BACKGROUND: This report seeks approval of two different personnel actions. First is a
recommendation that the existing Management Allowance provided to all Executive
Management and Mid -Management Employees, the Elected City Clerk, and the Elected Part -
Time City Attorney be eliminated, and an equivalent amount be added to the base salary for
each of these positions. This is in order to consolidate two separate categories of taxable
income into one for ease of administration. Second, the salary range for the Accounting
Manager classification is proposed to be increased due to salary compaction with other Finance
Department positions, as well as significant deviation from comparable labor market salary
survey results. This item was reviewed by the Finance Committee at its meeting of September
3, 2015.
ANALYSIS:
Conversion of Management Allowance to Base Salary
The City provides a Management Allowance to executive management employees, the elected
City Clerk and Part -Time City Attorney in the amount of 4.59% of base salary, and to mid -
management employees in the amount of 4.54% of base salary. Historically, employees had
FOR CITY CLERK ONLY
File No.: % 3 3 -0 -
Council Meeting: '41/.,g 10 o is
Disposition: 1140#q
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
been given the option to elect contribution of the Management Allowance into a 401 a plan on a
pre-tax basis, or to receive the Management Allowance as taxable income. At your August 3,
2015 meeting, Council took action to terminate the 401 a plan, such that all management
employees in these employee groups are now receiving the Management Allowance as taxable
income.
Since the Management Allowance is paid as taxable income in the same manner as base
salary, staff is recommending that the Management Allowance be eliminated, and that the
equivalent amount (4.59% or 4.54%, as applicable) be added to base salary, rather than
continue to pay both amounts as separate income. The advantages of combining the
Management Allowance into base salary include the following:
• Increased competitiveness in the labor market, as higher base salary rates will be more
attractive to potential candidates for management position recruitments;
• Increased transparency as the actual compensation paid to management employees will
be more directly stated;
• Streamlined reporting to MCERA, as both base salary and Management Allowance are
included in pension contributions and can be reported in one category;
• General ease of administration, as two categories of pay will be combined into one; and
• No significant increase in cost as both salary and Management Allowance are subject to
payroll taxes and MCERA contributions.
There will be a slight increase in the cost of Long Term Disability (LTD) insurance premiums,
which are calculated as a percentage of base pay, estimated to be $500 to $750 per month.
There will also be a minor increase in the cost of unused vacation payouts for retiring or
separating management employees, due to the resultant higher hourly rate of pay. This
additional cost is estimated to average less than $2,000 per year.
The proposed new salary ranges for management and mid -management employees,
representing the combination of current base salary and Management Allowance, are attached
as Exhibits A and B, respectively.
Accounting Manager Classification
The Accounting Manager is an exempt, mid -management position in the Finance Department
that oversees a broad scope of financial responsibilities including City-wide billing and
receivables, payroll processing, accounts payable, cash management, debt service,
accounting, annual implementation of the City's operating budget, internal tracking and
accounting for capital projects and special programs, and financial reporting. The position
supervises accounting assistants, a payroll technician, and professional accounting staff. The
Accounting Manager classification also acts as the Finance Director in his/her absence.
The Revenue Supervisor is a non-exempt Finance Department position in the SEIU bargaining
unit that is responsible for business tax collections and compliance, cash receipts and
collections on unpaid City accounts. The scope of responsibility is limited to one City-wide
revenue collection activity, a major cash receipts counter, and collections that are turned over to
Finance. The position supervises two accounting assistants and a business license examiner.
As a result of the revenue sharing provisions in the previous SEIU contract, the Revenue
Supervisor classification was among the Accounting Assistant benchmark positions that
received a 5.0% revenue sharing increase in January 2015. This placed the Revenue
Supervisor position at a higher salary range than the upper level Accounting Manager position.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
This imbalance came to light when the July 2015 3.0% salary increases were implemented in
both units. In addition, the Accounting Manager classification has been significantly below the
average of similar positions in comparable agencies; the latest salary survey placed the position
at 22% below the average of comparable positions in the City's labor market. Lastly, the
Accounting Manager position is the lowest paid position among the 24 active mid -management
classifications, a ranking that is unwarranted based on the scope and level of responsibility for
this position. The proposed salary increase would move the Accounting Manager position more
toward the middle of the salary ranges for the mid -management positions, which is a much
more appropriate placement for this position.
As a result of the internal compaction and labor market survey data, staff is recommending that
the salary range for the Accounting Manager classification be increased to 15% above the
Revenue Supervisor classification. The incumbent, who is currently at Step E of the Accounting
Manager salary range, would be moved to Step C of the new range. This would place the
incumbent at the next highest salary step above the top step of the Revenue Supervisor
classification, and provide for two more salary steps to reach the top of the new range. The
new salary range would also bring the Accounting Manager classification closer to the average
salary of the comparable agency positions, although still almost 9.0% below average.
Additionally, it would move the Accounting Manager position more toward the middle of the
salary ranges for the mid -management positions, which is a much more appropriate placement
for this position. The following charts illustrate the recommended changes:
Current Salary Range (compared to Revenue Supervisor):
Classification
Step A
Step B
Step C
Step D
Step E
Accounting
$6565
$6894
$7238
$7600
$7980
Manager*
Revenue
$6685
$7019
$7370
$7739
$8126
Supervisor
Proposed Salary Range (compared to Revenue Supervisor):
Classification Step A Step B Ste C Ste D Step E
Accounting $7688 $8073 $8476 $8900 $9345
Mana er*
Revenue $6685 $7019 $7370 $7739 $8126
Supervisor
*Does not include 4.54% Mid -Management Allowance that will be rolled -in as noted in Item I of this staff report
FISCAL IMPACT: The ongoing fiscal impact of adding Management Allowance to base pay is
relatively minor. The increase in the cost of the LTD premiums is estimated to be $500 to $750
per month, and the increased cost of unused vacation payouts for retiring or separating
management employees is estimated to average less than $2,000 per year. There are sufficient
funds in the General Fund to support these costs. The estimated cost to increase the
Accounting Manager salary range is approximately $7,700 in the current fiscal year. There are
sufficient funds appropriated in the Finance Department budget in the General Fund to support
the increase in salary range for the Accounting Manager position.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Approve the Resolution to implement the above recommendations.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
2. Adopt the resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Adopt Resolution to amend Resolutions 13741, 13742, and 13743 to eliminate the Management
Allowance, and add the equivalent amount to base salary for the Executive Management, Mid -
Management, Elected City Clerk and Part -Time City Attorney classifications, and increase the
salary range for the Accounting Manager classification.
ATTACHMENTS:
• Resolution
RESOLUTION NO. 14014
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AMENDING RESOLUTIONS
13741, 13742, AND 13743 TO ELIMINATE THE MANAGEMENT ALLOWANCE FOR
THE EXECUTIVE MANAGEMENT AND MID -MANAGEMENT EMPLOYEES, THE
ELECTED CITY CLERK AND THE ELECTED PART-TIME CITY ATTORNEY, AND
ADDING THE EXISTING MANAGEMENT ALLOWANCE PAYABLE TO THOSE
EMPLOYEES AND ELECTED OFFICIALS TO THEIR BASE SALARY; AND
INCREASING THE SALARY RANGE FOR THE ACCOUNTING MANAGER
CLASSIFICATION
WHEREAS, City Council Resolution No. 13741, which establishes the compensation
and working conditions for unrepresented Executive Management employees of the
City, provides for payment to those employees of an "Executive Management
Allowance"; and
WHEREAS, City Council Resolution No. 13742, which establishes the compensation
and working conditions for unrepresented Mid -Management employees of the City,
provides for payment to those employees of a "Management Allowance"; and
WHEREAS, City Council Resolution No. 13743, which establishes the compensation
and working conditions for the elected City Clerk and the elected Part-time City
Attorney, provides for payment to those elected officials of a "Management Allowance";
and
WHEREAS, the Management Allowances paid to the Executive Management and Mid -
Management employees, the elected City Clerk, and the elected Part-time City Attorney
pursuant to Resolutions 13741, 13742, and 13743 are currently paid to them as taxable
income; and
WHEREAS, eliminating the payment of a separate Management Allowance, and adding
the existing Management Allowance to the base salary of the Executive Management
and Mid -Management employees, the elected City Clerk, and the elected Part-time City
Attorney, is administratively beneficial and incurs no additional salary costs; and
WHEREAS, the salary range for the Accounting Manager position is below that of a
non -management position in the same department and significantly below comparable
labor market positions; and
WHEREAS, an increase in the salary range for the Accounting Manager is appropriate
to alleviate the salary compaction with a non -management position; and
WHEREAS, there is no additional salary cost to the addition of the Management
Allowance to the base salary of the Executive Management and Mid -Management
employees, the elected City Clerk, and the elected Part-time City Attorney, and the cost
of the proposed salary change for the Accounting Manager classification can be
accommodated in the current budget.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby approves the
following personnel actions:
1. Resolution No. 13741 is hereby amended by deleting therefrom Section 4(E),
entitled "Executive Management Allowance", and the existing Executive
Management Allowance is hereby added to the Base Salary for Executive
Management employees, to create the new salary ranges as listed in Attachment A
hereto, which is incorporated herein by reference.
2. Resolution No. 13742 is hereby amended by deleting therefrom Section 4(E),
entitled "Management Allowance", and the existing Management Allowance is
hereby added to the Base Salary for Mid -Management employees, to create the new
salary ranges as listed in Attachment B hereto, which is incorporated herein by
reference.
3. Resolution No. 13743 is hereby amended by deleting therefrom Section 3(d),
entitled "Management Allowance", and the existing Management Allowance is
hereby added to the respective Base Salaries for the elected City Clerk and the
elected Part-time City Attorney.
4. The salary range for the Accounting Manager classification is hereby increased to
$7688 to $9345 monthly, prior to the adjustment provided for in paragraph 2 above.
I, Esther Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the
San Rafael City Council held on September 21, 2015 by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER BEIRNE, City Clerk
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Esther Beirne
From: Deirdre Dolan
Sent: Thursday, October 01, 2015 12:14 PM
To: Esther Beirne; Rob Epstein
Subject: FW: New Salary Schedules
Attachments: Sep 2015 -Executives -salary schedule.pdf, Sep 2015_Mid-Mgmt_salary schedule.pdf
Lsto eii and Rob --
The Ibeio w apphes to your positiorus as w0, aithouugh we don't I'mve a san ary schedule for you. l.. owevcr here arc the
new sanlaries for your Ipositio ns:
MONTHLY SALARY
Effective Date City Attorney
City Clerk
1 -Jul -14 $9,411
$9,074
1 -Jul -15 $9,693
$9,347
9/16/15 w/4.599/2 $10,138
$9,776
Let me know if you Dave any questions.
Thai ks,
Deirdre
From: Deirdre Dolan
Sent: Thursday, October 01, 2015 12:07 PM
To: Lisa Goldfien; Cristine Alilovich; Paul Jensen; Carlene McCart; Doris Toy; Mark Moses; Chris Gray; Sarah Houghton;
Diana Bishop; Dean Allison; Van Bach; Henry Bankhead; Kevin McGowan; Leslie Blomquist; Tom Adams; Thomas Ahrens;
Eric Davis; Stephanie Lovette; Brian Auger; Gus Bush; Jim Myhers; Dave Davenport; Raffi Boloyan; Richard Landis; Karen
Chew; Rebecca Woodbury; Vinh Pham; Steve Mason; Rochelle Grechman-Dibley; Debbie Younkin; Kelly Albrecht; Matt
Smith
Cc: Jim Schutz
Subject: New Salary Schedules
To All Management and Mid -Management Employees:
I wanted to update you on an upcoming change to the Management and Mid -Management salary schedules. As you
know, the PARS 401a plan was recently eliminated and all management and mid -management employees are now
receiving the 4.5% Management Allowance as taxable cash. Rather than maintain two separate taxable payment
categories (base salary and Management Allowance), the Council at their meeting on September 21 approved
eliminating the Management Allowance, and adding the equivalent amount to base salary. As a result, effective with
the paycheck you receive on October 15, you will see a higher rate of base pay, reflecting the addition of Management
Allowance to base salary, and no further Management Allowance payments.
As stated in the staff report, the advantages of combining the Management Allowance into base salary include the
following:
General ease of administration, as two categories of pay will be combined into one;
Streamlined reporting to MCERA, as both base salary and Management Allowance are included in pension
contributions and can be reported in one category;
• Increased transparency as the actual compensation paid to management employees will be more directly
stated;
• Increased competitiveness in the labor market, as higher base salary rates will be more attractive to potential
candidates for management position recruitments; and
• No significant increase in cost as both salary and Management Allowance are subject to payroll taxes and
MCERA contributions. (There will be a slight increase in cost for LTD premiums, as they will be based on a higher
base rate of pay. Also, vacation payouts to departing or retiring employees will likewise be based on a higher
rate of pay.)
These changes will not affect future salary surveys for compensation review purposes, as the City consistently includes
all forms of compensation in the salary survey data.
The new salary schedules are attached.
Please feel free to contact me if you have any questions.
Thank you,
Deirdre Dolan
Human Resources Director
City of San Rafael
1400 Fifth Avenue, Suite 210
San Rafael, CA 94901
Tel: (415) 485-3069
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CITY OF SAN RAFAEL
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL /AGENCY.
SRRA / SRCC AGENDA ITEM NO. q, r"
DATE OF MEETING: September 21, 2015
FROM: Deirdre Dolan, Human Resources Director
DEPARTMENT: Human Resources / Management Services
DATE: September 11, 2015
TITLE OF DOCUMENT: RESOLUTION APPROVING THE FOLLOWING PERSONNEL ACTIONS:
1. Amend Resolutions 13741,13742, and 13743 Establishing the Compensation and Working
Conditions for the Executive Management, Mid -Management, Elected City Clerk and Elected Part -Time City
Attorney Classifications to eliminate the Management Allowance, and increase the respective salary
ranges by an equivalent amount; and
2. Increase the salary range for the Accounting Manager classification
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(LOWER HALF OF FORM FOR APPROVALS ONLY)
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NOT APPROVED
REMARKS:
APPROVED AS TO FORM:
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