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  Agenda Item   29.    
City Council Meeting
Meeting Date: 09/21/2021  
FROM: Bill Gallardo

Subject:
Approval of the Executive and Part-Time Employees’ compensation plans as amended – Adopt Resolution No. 2021-056 approving changes to Executive Compensation Plan and Adopt Resolution No. 2021-057 approving changes to the Part-Time Employment and Benefits Policy.
RECOMMENDATION
Adopt resolutions approving the Executive and Part-Time salaries and benefit policies.
BACKGROUND/DISCUSSION
Periodically the City Council updates the Executive and Part-Time Employment and Benefits Policies to reflect changes in salaries and benefits effecting our Executive and Part-Time 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 employee’s benefit without financially impacting the City and/or based on adjustments made to agreements with represented city labor groups.   
   
Part-Time Policy
The attached Part-Time policy contains a salary increases of three percent (3%) for fiscal years 2021/22 and 2022/23 for regular part-time hourly employees and adjustments for eligible positions that are tied to the State of California minimum wage laws. In addition, the policy also contains a one-time lump sum payment in the amount of $1200 per part-time employee who was furloughed for less than six (6) months and worked at minimum a total of 200 hours in the previous twelve-month period from the date the City Council adopts this policy and $600 for eligible part-time employees who were furloughed for less than six (6) months and worked less than a total of 200 hours in the previous twelve-month period from the date the City Council adopts this policy. Effective January 1, 2022 the new state minimum wage will be $15.00 an hour. This will mark the end of the scheduled yearly minimum wage increases that began in 2017.  The other updates to the Part-Time Policy include clean up language that removes out-of-date provisions to reflect current practices and past changes that are now in place.  There are no substantial changes associated with these updates. 
 
Executive Compensation Plan 
In the attached executive compensation plan, a three percent (3%) cost of living adjustment in salaries is scheduled for July 10, 2021 and a one-time non-PERSable lump sum in the amount of $2,400 per employee is offered upon approval of this resolution.  Other benefits will remain unchanged for this group.
 
FISCAL IMPACT/SUMMARY
These compensation adjustments are needed for the City to stay competitive in the current labor market if Brea is going to continue to attract and maintain quality executives and part-time employees. This action authorizes the City to implement salary adjustment through June 30, 2023. The estimated net financial impact of adopting these compensation plans for FY 20-21 through FY 22-23 are as follows:

Part- Time -  $258,667
Executives - $99,242

The net financial impact is $311,879 to the General Fund and $99,242 to the Non-General Funds for a total of $357,909.  The adopted budget for FY 2021-22 and the projected budget for FY 2022-23 already include, $119,788 and  $16,416 for the General Fund and non-General Funds, respectively for a total of $136,204.  The remainder of $221,705 will be included in the FY 2021-22 First Quarter Budget Adjustments and programmed in the FY 2022-23 projections as applicable.  There are sufficient funds in revenues over expenditures projected to cover the these costs.  
    
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Mario E. Maldonado, Human Resources Manager
Concurrence: Cindy Russell, Administrative Services Director
 
Attachments
Resolution -Part Time
Exhibit A-Part Time Policy
Resolutions - Executives

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