DATE: June 4, 2019
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Salary Resolution Amendments, County Health Premium Contributions for Plan Year 2020, for Unrepresented, Management and Senior Management Classifications
RECOMMENDED ACTION(S):
TITLE
1. Approve salary adjustments for Unrepresented (excluding Water/Wastewater Specialist II/III classifications and confidential classifications covered by Footnote “y”) and Management (excluding Deputy County Counsel I/II/III/IV/Senior) classifications, effective June 3, 2019, as reflected in Appendix “B”.
2. Approve administrative salary adjustments of 2% for Senior Management classifications (excluding the Chief Deputy District Attorney, Assistant District Attorney, Principal Deputy County Counsel, Chief County Counsel, Chief Defense Attorney, Assistant Public Defender, Department Heads and Elected Officials), effective June 3, 2019.
3. Approve the County Health Premium Contribution for Plan Year 2020 for Unrepresented and Management (including Senior Management) employees, effective December 16, 2019.
REPORT
Approval of the recommended actions would serve to increase salaries in an effort to remain attractive and competitive in the local labor market, while retaining a quality workforce. The estimated total cost associated with Recommended Action Nos. 1 and 2 ($2,071,375) includes $493,096 in Net County Cost (NCC). The estimated cost for Recommended Action No. 3 ($431,196) includes $99,031 in NCC. Sufficient appropriations will be included in the impacted departments’ FY 2019-20 requested budget and subsequent annual budget requests. This item is countywide.
ALTERNATIVE ACTION(S):
If your Board were not to approve Recommended Actions Nos 1 and 2, salaries would remain unchanged for the corresponding classifications. If the Board were not to approve Recommended Action No. 3, the existing County Health Premium Contribution would remain unchanged.
FISCAL IMPACT:
The total estimated cost for Recommended Action Nos. 1 and 2 for the remainder of FY 2018-19 is $158,900 ($37,827 in NCC). The estimated year over year cost for FY 2019-20 is approximately $1,912,475 ($455,269 in NCC), which includes related retirement costs.
The total estimated cost for Recommended Action No. 3 for the remainder of FY 2018-19 is $170,277 ($26,931 in NCC). The estimated year over year cost for FY 2019-20 is $260,919 ($72,100 in NCC).
Sufficient appropriations and estimated revenues will be included in the impacted departments’ recommended budgets, and will be included in subsequent budget requests.
DISCUSSION:
There are currently 856 employees who will be affected by the recommended actions.
Recommended Action No. 1: Excludes the following:
• Confidential classifications denoted within Footnote “y”, because they will receive a salary adjustment along with their non-confidential equivalent classifications.
• Chief Deputy District Attorney and Assistant District Attorney, because County representatives have begun successor Memorandum of Understanding (MOU) negotiations with Representation Unit 30, which will likely result in salary adjustments.
• Deputy County Counsel series, because salary parity between these classifications and their represented counterparts (i.e. Deputy District Attorneys/Child Support Attorneys and Defense Attorneys) was reestablished effective December 17, 2018.
• Water/Wastewater Specialist II/III and Supervising Water/Wastewater Specialist classifications, because these classifications received salary adjustments on July 2, 2018 and on January 14, 2019.
Recommended Action No. 2: Excludes Department Heads and Elected Officials, because these classifications were addressed and adjusted accordingly on November 14, 2017 and on October 22, 2018.
The recommended salary adjustments for Unrepresented (UNR), Management (MGT), and Senior Management (SMG) classifications are consistent with the County’s desire to remain competitive within the local labor market. The last increase for UNR, MGT, and SMG employees occurred on July 2, 2018.
Recommended Action No. 3: Increase the County’s Health Premium Contribution towards County sponsored Health Plans for Plan Year 2020 (including $110 or $115 for dependent coverage depending on the employee’s selection) by $25 per pay period, for Employee Only participants, as follows:
• Employee Only: $343
• Employee plus Child(ren): $453
• Employee plus Spouse: $453
• Employee plus Family: $458
Approval of this Agenda Item will continue to allow employees who are eligible to participate in the County’s Health Benefit Program (Program) to opt out of the Program during the next open enrollment period by providing written proof that they have medical coverage from another source.
REFERENCE MATERIAL:
BAI #35, March 26, 2019 - Salary Resolution Amendments
BAI #40, June 12, 2018 - Salary Resolution Amendments, County Health and Salary Steps
BAI #41, December 5, 2017 - County Health Premium Contributions, Plan Year 2018
BAI #35, November 14, 2017 - Elected and Department Heads
BAI #35, October 31, 2017 - County Health Premium Contributions, Plan Year 2018
BAI #45, July 11, 2017 - Salary Resolution Amendments
BAI #31.1, April 4, 2017 - Salary Adjustment for Appointed Department Heads
ATTACHMENTS INCLUDED AND/OR ON FILE:
Salary Resolution Amendment, Appendix “B”
CAO ANALYST:
Deborah Paolinelli