DATE: July 11, 2017
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Salary Resolution Amendments
RECOMMENDED ACTION(S):
TITLE
1. Approve salary adjustments for Unrepresented (excluding confidential classifications covered by Footnote “y”) and Management (excluding Deputy County Counsel I/II/III/IV/Senior) classifications, effective July 3, 2017, as reflected on Appendix B.
2. Approve administrative salary adjustments of 3% for Senior Management classifications (excluding Department Heads and Elected Officials), effective July 3, 2017.
3. Approve Amendment to the Salary Resolution modifying Annual Leave IV plan to include employees designated under Unrepresented, Management, Senior Management, and Department Heads, effective July 3, 2017, as reflected on Appendix B.
REPORT
The recommended salary adjustments are comparable with recent salary increases negotiated for many represented employees. The estimated cost associated with Recommended Action Nos. 1 and 2 is approximately $2,679,875 and includes $648,799 in Net County Cost (NCC), which will be included within the impacted departments’ FY 2017-18 Recommended Budgets. Recommended Action No. 3 would modify the Annual Leave program to address inconsistencies between represented and unrepresented employees by moving Unrepresented (UNR) / Management (MGT) / Senior Management (SMG) and Department Heads (HDS) classifications from the Annual Leave V plan with a maximum accrual cap of 550 hours to the Annual Leave IV plan with a maximum accrual cap of 600 hours.
ALTERNATIVE ACTION(S):
If the Board were not to approve Recommended Action Nos. 1 and 2, salaries would remain unchanged. If the Board were not to approve Recommended Action No. 3, the Annual Leave plans would remain unchanged and a disparity regarding maximum annual leave accrual caps between unrepresented and most represented classifications would continue.
FISCAL IMPACT:
The total estimated cost of Recommended Action Nos. 1 and 2 for FY 2017-18 is approximately $2,679,875 with $648,799 in NCC, which includes the related retirement costs. Sufficient appropriations and estimated revenues will be included in the impacted departments’ recommended budgets, and will be included in future budget requests. The fiscal impact of Recommended Action No. 3 is difficult to quantify due to a number of variables that could potentially affect the cost; however, it is anticipated that any potential fiscal impact would be minimal.
DISCUSSION:
Recommended Action No. 1 excludes Confidential classifications denoted within Footnote “y” because these classifications were adjusted on July 14, 2015, as parity was re-established with their non-confidential equivalent classifications. That action included the salary adjustment on July 4, 2016, and a July 3, 2017 increase. Additionally, Deputy County Counsel I/II/III/IV/Senior classifications are also excluded from this recommended action because salary parity between these classifications and their represented counterparts (i.e. Deputy District Attorneys/Child Support Attorneys and Defense Attorneys) was established effective September 28, 2015, including a July 4, 2016 salary adjustment. Recommended Action No. 2 excludes Department Heads and Elected Officials because these classifications were addressed and adjusted accordingly.
The recommended salary adjustment for UNR, MGT, and SMG classifications is comparable with recent salary increases negotiated for many represented employees. An additional equity adjustment is recommended for the Senior Public Health Microbiologist classification after an analysis revealed that its salary is no longer competitive in the local labor market. The last increase for UNR and MGT classifications was effective July 18, 2016. The last increase for SMG classifications was effective July 18, 2016, as well as a compaction adjustment to the salary bands, effective March 27, 2017. The recommended salary increase associated with SMG classifications will be completed administratively due to placement in respective bands of the Senior Management Compensation Plan.
Additionally, employees hired on or after October 10, 1983, who are designated under UNR, MGT, SMG, and HDS are currently enrolled in the Annual Leave V plan. Recommended Action No. 3, regarding the modification of the Annual Leave IV plan to include employees designated under UNR, MGT, SMG, and HDS, would address inconsistencies in annual leave caps between represented and unrepresented employees. The Annual Leave V plan has an accrual maximum of 550 hours, whereas the Annual Leave IV plan has an accrual maximum of 600 hours. Enrolling existing Annual Leave V plan participants into the Annual Leave IV plan would correct disparity between represented and unrepresented employees in the annual leave program. If the recommended action were approved, the Annual Leave V plan would be deleted from the Salary Resolution, as reflected in Appendix B, and all participants in the Annual Leave V plan would be moved to the Annual Leave IV plan. Additionally, all new employees in the UNR, MGT, SMG, and HDS designations would be enrolled in the Annual Leave IV plan.
REFERENCE MATERIAL:
BAI #34, March 28, 2017
BAI #41, July 12, 2016
BAI #42, July 12, 2016
BAI #24, September 1, 2015
BAI #41, July 14, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
Appendix B
CAO ANALYST:
Sonia De La Rosa