Laserfiche WebLink
7.1.E. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the Personnel Subcommittee <br /> February 10, 2014 <br /> SUBJECT <br /> Salary adjustment for the City Manager, City Attorney, and City Clerk <br /> RECOMMENDATION <br /> Approve by resolution a 3% salary adjustment for the City Manager, City Attorney, and <br /> City Clerk. <br /> BACKGROUND <br /> On January 13, 2014, Council approved amendments to the Executive Management <br /> Summary of Benefits, which included an increase in the employees' share of pension <br /> contributions, as well as updates related to the Public Employees' Pension Reform Act <br /> (PEPRA). As part of an effort to address the City's rising benefit costs in a sustainable <br /> manner, these amendments further increased the employees' contribution — paid from <br /> their salary — to the City's share of pension costs from the current rate of 7% to 12% by <br /> January, 2016. To meet the intentions of PEPRA, the recommendation to Council also <br /> included a plan to reduce and eliminate the 7% employer-paid member contribution <br /> (EPMC) over the course of three years. This will begin with an elimination of 2% of this <br /> contribution this fiscal year as soon as it is administratively feasible to amend the City's <br /> contribution structure with CaIPERS. As EPMC is included in the employee's salary, the <br /> elimination of this payment results in a reduction of both the employee's take-home pay <br /> and pension benefit. These recently approved additional employee contributions toward <br /> pension costs apply to all members of the Executive Management group, including the <br /> City Manager, City Clerk and City Attorney. <br /> In recognition of the reduction in take-home pay that results from increased employee <br /> pension contributions, Council approved a three percent (3%) increase to salary ranges <br /> effective July 1, 2013 for the classifications in the executive management salary plan <br /> reporting to the City Manager. Within these ranges, salary increases for individual <br /> employees are granted at the discretion of the City Manager. The salary range <br /> adjustment approved by Council on January 13 did not apply to the City Manager, City <br /> Clerk and City Attorney, whose compensation is determined by the City Council. <br /> ANALYSIS <br /> Salaries for Council-appointed positions, including the City Manager, City Attorney, and <br /> City Clerk, are determined individually by Council, typically after consideration of <br />