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Agenda Item 19.

City Council Meeting

Meeting Date:	05/04/2021
FROM:	Mario Maldonado

Subject:

Resolution Establishing the FY 2020-2021 City of Brea Master Employee Salary Schedule to Comply with CalPERS Regulations

RECOMMENDATION

That the City Council adopt Resolution No. 2021-026 establishing the 2020 City of Brea Master Employee Pay Schedule confirming the pay rates/ranges for all City of Brea established positions in order to comply with CalPERS Regulations.

BACKGROUND/DISCUSSION

The City Council approves all salary schedules which include classification titles and pay rates/ranges at the time a Memorandum of Understanding (MOU) for each bargaining unit is approved; when updates to the Employment and Benefit Policy for Unrepresented Employees are approved; or when specific wage and classification title adjustments are needed. The City has a longstanding practice of posting these approved salary schedules on the City website, www.cityofbrea.net, and the City’s internal website (Intranet), as well as having copies available in the Human Resources Division.

In addition, the City Council approves the employment agreements for the City Manager and the Executive Compensation Plan for department directors which include salaries. The City Manager and Executives’ salaries are also listed on the City’s website. The amount of monthly compensation the City Council receives is addressed in the Brea Municipal Code, Section 2.00.130, City Council Salaries, and is set in accordance with California Government Code Section 36516b.

The California Public Employees’ Retirement System (CalPERS) requires that the City Council regularly adopt a master pay schedule listing all of the pay rates/ranges for all City of Brea established positions, including the City Council, and City Manager. The City of Brea last adopted a master pay schedule in 2019 for Fiscal Year 2019-2020. The City has updated classifications and minimum wage law salaries which have resulted in changes to the wages of certain positions.

CalPERS requires that only compensation earned as defined under Government Code Section 20636 and corresponding regulations can be reported to CalPERS and considered in calculating retirement benefits. In order to determine the amount of compensation earnable, a member’s payrate is limited to the amount identified on a publicly available pay schedule. Per CCR Section 570.5, a pay schedule, among other things, must:

Be duly approved and adopted by the employer's governing body in accordance with requirements of applicable public meetings laws;
Identify the position title for every employee position;
Show the payrate as a single amount or multiple amounts within a range for each identified position;
Indicate the time base such as hourly, daily, bi-weekly, monthly, bi-monthly, or annually;
Be posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer's Internet website;
Indicate an effective date and date of any revisions;
Be retained by the employer and available for public inspection for not less than five years; and
Not reference another document in lieu of disclosing the payrate.

Anytime new MOU contracts are negotiated or when wage rate/range adjustments or classification title changes are approved, a staff report amending this master pay schedule will be prepared for City Council consideration.

In an effort to comply with CalPERS regulations, staff recommends that the City adopt the attached resolution establishing a City of Brea Master Employee Pay Schedule confirming the pay rates/ranges for all City of Brea established positions effective July 1, 2020.

FISCAL IMPACT/SUMMARY

The City Council of the Brea is required by CalPERS to adopt a resolution establishing a City of Brea Master Employee Pay Schedule confirming the pay rates/ranges for all City of Brea established positions for Fiscal Year 2020-2021.

There is no fiscal impact associated with the adoption of the City of Brea Master Employee Pay Schedule.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution
Brea Master Salary Schedule for FY 2020 - 2021