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  Agenda Item   30.    
City Council Meeting
Meeting Date: 11/15/2022  
FROM: Bill Gallardo

Subject:
Approval of the Executive compensation plan as amended – Adopt a Resolution approving changes to Executive Compensation Plan.
RECOMMENDATION
Adopt resolution approving the Executive Compensation Plan salaries and benefit policy.
BACKGROUND/DISCUSSION
Executive compensation is established by City Council resolution and may be modified from time to time by additional resolutions.  Periodically the City Council updates the Executive Compensation Plan and Benefits Policy to reflect changes in salaries and benefits affecting our Executive employees. At times updates are implemented based on changes required by law or when circumstances come to the City’s attention that certain provisions can be restructured to the Executives benefit without financially impacting the City and/or based on adjustments made to agreements with represented city labor groups. The last salary adjustment for Executives was implemented in September 2021 and it reflected a cost of living adjustment (COLA) of 3%.
 
Pursuant to City Council policy, the City Council may consider annual adjustments to Executive salary ranges and benefits in recognition of changes in the cost of living, labor market conditions, and internal relationships and salary and benefit adjustments granted to other City employees.  However, Executives shall not be eligible for salary merit adjustments or performance awards until their next anniversary date.

In the attached executive compensation plan, a three percent (3%) cost of living adjustment to the salary range would become effective November 26, 2022.  This adjustment is consistent with what other bargaining groups received this year in July pursuant to agreements that were reached in 2021. In addition, the resolution also includes an update to compensation plan language on how Executives are able to use their maximum annual sick leave accruals of personal sick leave per calendar year to deal with medical and/or dental needs of immediately family members. This is consistent with same benefit available to all labor groups.  The resolution also includes clean up language on CalPERS retirement benefits to reflect current contributions by employer and employee. Other benefits will remain unchanged for this group.
 

FISCAL IMPACT/SUMMARY
This compensation adjustment is needed for the City to stay competitive in the current labor market if Brea is going to continue to attract and maintain quality executives. This action authorizes the City to implement salary adjustment to the salary ranges of Executives effective November 26, 2022. 

The net financial impact is $162,438 to the General Fund and $20,784 to the Non-General Fund for a total of $183,222. There is no fiscal impact to the adopted budget for FY 2022-23 due to built in budget projections. However, on-going costs related to this adjustment will be programmed in the FY 2023-24 budget projections as applicable. There are sufficient funds in revenues over expenditures projected to cover these costs.
 
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:Mario E. Maldonado, Human Resources Manager
Concurrence: Kristin Griffith, Administrative Services Director
 
Attachments
Resolution

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