AgdaPkt 2017-06-26 Closed and Joint SA PFA

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Executive Management In order to address increasing pension costs, the City previously implemented increased employee contributions towards the cost of pensions. Based on compensation survey data, the City’s pension contributions for executives are substantially higher than other Bay Area cities, which may put the City at a competitive disadvantage in recruitment efforts. Additionally, subordinate personnel typically have lower pension contributions, which can discourage advancement into executive-level positions. In 2016, Council adopted a change to the Executive Management Summary of benefits to reduce the pension contribution for employees in pension tiers 1 and 2 (also known as “classic” CalPERS members) by 3% of salary, in lieu of providing these employees with a cost- of-living salary adjustment similar to that given to subordinate employees. Currently, the total contributions for classic CalPERS members are 18% of salary for public safety employees, and 16-17% of salary for non-safety members. In order to achieve better market alignment with subordinate groups and survey market comparators, the proposed amendments will reduce the pension contributions for non-safety employees by an additional 2% of salary. The total pension contribution for employees in pension tier 3 (also known as “new members” under the Public Employees’ Pension Reform Act) will remain the same. Under the proposed salary plan, all executive management positions will receive a 1% cost-of-living salary adjustment effective July 9, 2017. For equity purposes, employees in the tier 3 pension plan will receive an additional cost-of-living adjustment based on the cost equivalent of the pension contribution reduction given to other pension tiers. The cost-of-living adjustments will be granted at a rate of 4.2% of salary for those hired prior to July 1, 2015, and 1.7% for those hired between July 1, 2015 and June 30, 2016. In order to maintain consistent alignment within the executive salary plan, these adjustments will be made within the existing salary ranges where possible. Minor salary range adjustments (in the amounts ranging from 0.5%-1.35%) are recommended where necessary to accommodate this salary increase. In addition, adjustments to the classifications of Police Chief, Deputy Police Chief, and Police Captain are recommended to reduce compaction between these positions and their subordinates. Reclassification of GIS Coordinator to GIS Manager The GIS (Geographic Information System) Coordinator classification was first established in 2012, as a result of the need for dedicated support for the City’s GIS program. Since that time, the GIS system has grown in scope and complexity, and additional technical support staff have been added to support this function. As a result, the technical and administrative responsibilities of the GIS Coordinator have increased. Human Resources staff conducted a salary and classification study to determine 8.C. - Page 2