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Report regarding a resolution to amend the wage and salary schedule for the City of South San Francisco for Fiscal Year 2022-2023 and approving budget amendment number 23.032 (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution to amend the wage and salary schedule to provide for a cost-of-living adjustment to part-time hourly employees and to establish the classifications of Deputy City Manager; Diversity, Equity and Inclusion Officer; Economic Development Manager; Housing Manager; and Payroll Specialist I/II; and approve budget amendment number 23.032.
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BACKGROUND/DISCUSSION
The City maintains a salary and wage schedule (“salary schedule”) for all positions of employment with the City, and any amendments to the schedule are subject to City Council approval. The salary schedule is typically updated at the beginning of each fiscal year, and as needed to implement negotiated rate increase or other recommended changes to job classifications and pay rates. The salary schedule was last amended and approved by Council on July 22, 2022 for the 2022-2023 fiscal year. Since that time, Council approved Memorandums of Understanding with each of the City’s recognized employee bargaining units, providing for a cost-of-living adjustment of six percent (6%) plus market equity adjustments based on a City-wide total compensation survey. The new rates have been incorporated into the salary schedule, along with the following proposed changes:
Cost of Living Adjustment for Hourly Positions
The City employs approximately 350 part-time hourly employees, who are not represented by a collective bargaining agreement. The majority of hourly positions work in the Parks and Recreation and Library Departments, and also serve in various temporary or part-time roles in administration, maintenance, public safety, and other direct service roles. Staff recommends that hourly positions receive a cost-of-living adjustment of six percent (6%) to maintain a competitive rate of pay in line with cost-of-living increases. This increase will also ensure that all positions maintain a starting rate of pay above the local minimum wage, which will increase by 5.7% effective January 1, 2023 based on the Bay Area Consumer Price Index (as of August, 2022).
New Classifications
Deputy City Manager (Executive Management)
The City Manager’s Office executive management team includes with an Assistant City Manager, an Assistant to the City Manager, a Communications Director, and a Capital Projects Director. The role of the Communications Director was initially developed to provide exclusive focus on internal and external communications, but has evolved to include a broader scope such as managing the Community Promotores program and overseeing staff implementation of the City’s Racial and Social Equity Plan. Considering the need for flexibility in current and future staffing, staff recommends the creation of a Deputy City Manager classification. A typical role for a Deputy City Manager is to focus on community relations and communications, intergovernmental relationships and projects, and oversee assigned cross-departmental functions and programs. The proposed new classification incorporates the roles of the current Communications Director, and provides for the possible expansion of scope and assignments.
A salary survey was conducted using nine benchmark cities historically used for executive and management employees. Staff recommends a salary control point of $238,836, with a total range of 10% above and below the control point ($217,128-$262,716). This range is equal to the Communications Director, Director of Capital Projects, and Human Resources Director), and is approximately four percent (4%) above the 60th percentile of the survey market. It is anticipated that this classification will replace the current Communication Director position, therefore there is no additional salary costs associated.
Diversity, Equity, and Inclusion Officer (Mid-Management, Teamsters Local 856)
In July, 2020, Council established a Commission on Racial and Social Equity to identify and recommend strategies, programs, and changes that the City could implement to improve social equity within the community and within all City programs and services. The Commission’s work culminated in a Racial and Social Equity Plan, that is now in the implementation phase. As a part of this plan, the Commission recommended that the City establish a Diversity, Equity and Inclusion Officer.
Positions of this nature tend to be varied in scope and responsibilities, and a salary survey did not identify a sufficient number of comparable positions within the City’s survey market for benchmarking. Based on available information, and considering internal alignment of positions within the City with similar qualifications and scope of responsibility, recommends salary range of $107,515 - $130,665 annually ($51.69-$62.82 hourly). This position will replace a vacant Management Analyst II position included within the City Manager’s Office budget, with an equivalent salary.
Economic Development Manager, Housing Manager (Mid-Management, Teamsters Local 856)
In January, 2022, the City’s Deputy Economic Development Director was appointed to the Department Head role of Director of Economic and Community Development. Previously, the Deputy Director served as the division manager over Economic Development and Housing administration. Given the expansion of City’s services and community needs in both of these areas, funds to create two division head positions, Economic Development Manager and Housing Manager. Having two separate division managers for these functions is a staffing structure common to cities of similar size and service level.
The recommended salary range for both positions is $149,427-$181,605 annually, which is equivalent to the City Planner classification. A salary survey was conducted for these classifications, and the recommended salary places both positions within 5% of the 60th percentile of survey cities. Funds for these positions were included in the fiscal year 2022-2023 Operating Budget.
Payroll Specialist I/II (Confidential Unit, Teamsters Local 856)
As part of a reorganization of the Finance Department, funds were included in the fiscal year 2022-2023 operating budget to replace the current, vacant position of Payroll Administrator with a Payroll Specialist, along with part-time support of an Accounting Technician. This classification more closely aligns with the duties and responsibilities of the role, and typical structure within full-service cities of comparable size. This classification will have an entry-level (Payroll Specialist I) and a journey-level (Payroll Specialist II) allowing for flexible staffing and opportunities for growth.
A salary survey was conducted, and the recommended range for a Payroll Specialist II is $39.10-$47.53 per hour, which is approximately two percent (2%) above the 60th percentile of the survey market. The Payroll Specialist I is set approximately 10% below (two steps below) the Payroll Specialist II.
FISCAL IMPACT
Funds were included in the fiscal year operating budget to allow for a cost-of living adjustment for hourly employees. However, with greater-than-expected inflation, additional funding is needed for the recommended increase. The recommended increases will result in cost of $62,700 for the remainder of fiscal year 2022-2023, and an ongoing cost of approximately $94,000 annually. The attached resolution includes budget amendment 23.032 to provide additional funds for this adjustment.
Budget for the newly established classifications was included in the current fiscal year operating budget, either as a placeholder for a proposed new position or as an existing classification with equivalent salary and benefits. Therefore, these additions to the salary schedule will not result in increase costs.
RELATIONSHIP TO STRATEGIC PLAN
This action supports City Council’s strategic priority of Workforce Development, by ensuring that the City maintains a competitive compensation package to attract and retain a high-performance workforce, and ensuring the necessary staffing structure to enable effective service to the community.
CONCLUSION
Staff recommends that Council approve a resolution to amend the wage and salary schedule to provide for a cost-of-living adjustment to part-time hourly employees and to establish the classifications of Deputy City Manager, Diversity, Equity and Inclusion Officer, Economic Development Manager, Housing Manager, and Payroll Specialist I/II.
ATTACHMENTS
1. Job Description for Deputy City Manager
2. Job Description for Diversity, Equity and Inclusion Officer
3. Job Description for Economic Development Manager
4. Job Description for Housing Manager
5. Job Description for Payroll Specialist I/II