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CC - CONSENT ITEM: Adoption of a Resolution Ratifying Previously Approved and Adopted Salary Schedules for City Employees for Fiscal Years 2019-2020 through 2023-2024 in Accordance with CalPERS’ Directive.
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Meeting Date: June 24, 2024
Contact Person/Dept.: Mary Noller/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/19/2024)
Department Approval: Dana Anderson, Human Resources Director (06/18/2024)
Lisa Soghor, Chief Financial Officer (06/18/2024)
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RECOMMENDATION
Staff recommends the City Council adopt a resolution ratifying the previously approved and adopted salary schedules for City Employees for Fiscal Years 2019-2020 through 2023-2024 in accordance with CalPERS’ directive.
BACKGROUND / DISCUSSION
The City Council periodically adopts the salary schedule for City employees including Miscellaneous employees, Police Safety employees, Fire Safety employees, the City Manager and City Attorney via resolution. The resolution adopting the classification and salary plan (commonly and hereafter referred to as the “salary schedule”) for City employees is typically adopted by the Council as part of the budget process; however, staff may take an item to Council to adopt a resolution to revise the City’s salary schedule as needed throughout the year. The resolution, which is the authorizing document for the salary schedule, states and establishes the effective date of the salary schedule and the salary schedule in included as an exhibit to the resolution and incorporated therein by reference. The top of each page of the exhibit states the “Salary Schedule As of <MM/DD/YYYY>”. The appropriate MM/DD/YYYY is entered to match the effective date stated in the resolution.
The adopted salary schedules are used by the City to process payroll and by CalPERS to assist in the administration of retirement benefits. The adopted salary schedule is posted on the City’s website in compliance with CalPERS requirements. CalPERS has previously accepted the City’s salary schedules with no issue. The City was recently notified by CalPERS representatives that the City’s adopted salary schedule must state “Salary Schedule Effective Date MM/DD/YYYY” and since the City’s adopted salary schedules state “Salary Schedule As of MM/DD/YYYY,” they are not valid with the requirements of California Code of Regulations Section 570.5. City staff, with the concurrence of the City Attorney’s Office, disagrees with the recent CalPERS interpretation of the statute and its position, and is attempting to navigate a resolution with them.
In an abundance of caution to protect City retirees, staff is recommending the City Council adopt the proposed Resolution ratifying the previously approved and adopted salary schedules for Fiscal Years 2019-2020 through 2023-2024 in accordance with CalPERS request. Staff has revised all the City’s salary schedules adopted within the last five fiscal years to state “Salary Schedule Effective Date MM/DD/YYYY” per CalPERS instructions. CalPERS has stated that the City Council must approve and adopt the updated schedules.
In response to this issue surfacing recently, City staff did label the Salary Schedule for Fiscal Year 2024-2025 adopted by City Council on June 10, 2024, with “Salary Schedule Effective Date 07/01/2024.” Moving forward this language will be included on all future salary schedules.
Staff recommends that the Council adopt the proposed Resolution to incorporate this change and satisfy CalPERS’ most recent requirement.
FISCAL ANALYSIS
There is no fiscal impact associated with the recommended action.
ATTACHMENT
1. 2024_06_24_ATT 1_ Resolution Ratifying the Previously Approved and Adopted Salary Schedules for City Employees for Fiscal Years 2019-2020 through 2023-2024, in Accordance with CalPERS’s Request.
MOTION
That the City Council:
Adopt a Resolution ratifying the previously approved and adopted salary schedules for City employees for Fiscal Years 2019-2020 through 2023-2024, in accordance with CalPERS’ directive.