CC - Item 5B - Approval of First Amendment to City Manager Employment AgreementROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: RACHEL RICHMAN, CITY ATTORNEY
DATE: FEBRUARY 26, 2019
SUBJECT: APPROVAL OF FIRST AMENDMENT TO CITY MANAGER
EMPLOYMENT AGREEMENT
SUMMARY
The City and the City Manager entered into an Employment Agreement ("Agreement") on
January 16, 2018. Section 3 of the Agreement permits the City Council to conduct performance
evaluations and grant increases in salary. Pursuant to Section 3 (a)(ii) of the Agreement, the City
Council conducted the City Manager's performance evaluation. The City Manager received a
"substantially exceeds expectations" review with a 5 rating. A substantially exceeds
expectations review entitles the City Manager to a 5% salary increase. A 5% increase would
bring the City Manager's total annual salary to $199,500.
The City Council is also being asked to consider an additional 3.5% salary increase to the City
Manager's salary to help close the gap between her current salary and the current labor market.
In 2017, a salary survey was conducted in which results indicated that the City Manager's
compensation is 17.3% behind the labor market. An additional 3.5% increase this year would
bring the City Manager's total annual salary to $204,487.50.
STAFF RECOMMENDATION
1. That the City Council consider approving the First Amendment to the City Manager
Employment Agreement granting a 5% salary increase to the City Manager; and
2. That the City Council consider approving an additional 3.5% salary increase this year
and an additional 3.5% increase next year to the City Manager's salary as a step to
begin to make her current salary more reflective of and competitive with the labor
market for city managers.
ANALYSIS
The purpose of the annual 'salary and benefits resolutions is to ensure transparency and to
implement modifications to the City's compensation system. On August 8, 2017, the City
AGENDA ITEM NO. 5.13
City Council Meeting
February 26, 2019
Page 2 of 2
Council reviewed the annual salary survey results and adopted salary and benefits resolutions,
which resulted in the amendments to the Memorandum of Understanding and resolutions that
also included salary range adjustments for various classifications. In that same survey conducted
additional changes were noted and reviewed by the City Council. One of the survey results
indicated that the City Manager's compensation was 17.3% behind the labor market.
In addition to the 5% salary increase that resulted from the City Manager's performance
evaluation, the City Council is being asked to consider bringing the City Manager's
compensation closer to what the labor market is by approving an additional 3.5% salary increase
this year and a 3.5% additional salary increase in 2019 to begin after her annual performance
evaluation is conducted.
Staff has conducted an informal salary survey of City Managers' compensations from the
following agencies:
Alhambra
$243,980
Diamond Bar
$215,250
Duarte
$237,187
El Monte
$183,277
La Puente
$215,004
Montebello
$225,000
Monterey Park
$218,000
Pico Rivera
$237,491
San Dimas
$225,324
San Gabriel
$210,000
Temple City
$196,860
STRATEGIC PLAN IMPACT - None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Rachel Richman, City Attorney
Attachments:
A. Amendment to City Manager Employee Agreement
B. Staff Report dated August 8, 2017
LA 44850-6470-3036 v
Attachment A
Amendment to City Manager Employee Agreement
FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF ROSEMEAD AND GLORIA MOLLEDA
AMENDMENT NO. 1
This First Amendment (the "First Amendment") is made and entered into effective February 26,
2019, by and between the City of Rosemead, California, a municipal corporation (the "City")
and Gloria Molleda, an individual (the "City Manager"). The City and the City Manager are
sometimes individually referred to as a "Party" and collectively as "Parties."
RECITALS
A. The Parties entered into an Employment Agreement (the "Agreement") on January 16,
2018.
B. Section 3 of the Agreement permits the City Council to conduct performance evaluations
and grant increases in salary based on that evaluation.
C. Pursuant to Section 3 of the Agreement, the City Council conducted the City Manager's
performance evaluation. The City Manager received a "substantially exceeds
expectations" review which establishes a 5% increase.
D. The City Council desires to implement a 5% increase in the City Manager's annual salary
to a total of 199,000.
E. The Parties now desire to amend the Agreement to reflect the increase in the City
Manager's annual salary.
OPERATIVE PROVISIONS
1. AMENDMENT
Section 3(a)(i)(1) of the Agreement is hereby amended to read as follows:
The annual salary for the position of City Manager shall be $199,500.
2. REMAINDER UNCHANGED
Except as specifically modified and amended in this First Amendment, the Agreement
remains in full force and effect and binding upon the parties.
3. INTEGRATION
This First Amendment constitutes the entire understanding and agreement of the parties
and supersedes all negotiations or previous agreements between the parties with respect
to all or any part of the transaction discussed in this First Amendment.
4.
5
b.
EFFECTIVE DATE
This First Amendment shall not become effective until the date it has been formally
approved by the City Council and executed by the Parties.
APPLICABLE LAW
The laws of the State of California shall govern the interpretation and enforcement of this
First Amendment.
REFERENCES
All references to the Agreement include all their respective terms and provisions. All
defined terms utilized in this First Amendment have the same meaning as provided in the
Agreement, unless expressly stated to the contrary in this First Amendment.
IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date
first indicated above.
City City Manager
CITY OF ROSEMEAD Gloria Molleda
A Municipal Corporation An Individual
go
Steven Ly
Mayor
ATTEST:
By:
Ericka Hernandez
City Clerk
APPROVED AS TO FORM:
Bv:
Rachel H. Richman
City Attorney
OA
Gloria Molleda
City Manager
Attachment B
Staff Report dated August 8, 2017
ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER,*'
DATE; AUGUST 8, 2017
SUBJECT: ANNUAL SALARY SURVEY RESULTS AND ADOPTION OF SALARY
AND BENEFITS RESOLUTIONS
SUMMARY
The City Council will consider approval of five salary and benefits Resolutions: General Service
Unit; Middle Management, Professional, and Confidential Service Unit; Management Service
Unit; Part -Time Salary Schedule; and a Comprehensive City-wide Salary Schedule for all City
Classifications.
The purpose of the annual salary and benefits resolutions is to ensure transparency and to
implement modifications to the City's compensation system. Amendments to the Memorandum
of Undexsta.nding (MOU) and Resolutions also include salary range adjustments for various
classifications as a result of the annual compensation survey in accordance with City policy and
above referenced Resolutions.
STAFF RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2017-38 for General Service Unit;
Resolution No. 2017-39 for Middle Management, Professional, and Confidential Service Unit;
Resolution No. 2017-40 for Management Service Unit; Resolution No. 2017-41 for Part -Time
Salary Schedule; and Resolution No. 2017-42 for Comprehensive City-wide Salary Schedule for
all Regular Full-time City Classifications.
ANALYSIS
The existing MOU with the Rosemead Employee Association (REA) is current and will expire
on June 30, 2018. The MOU, as well as City policy, defines an agreed upon process for the
maintenance of the compensation plan, including an annual survey of "base" pay, as compared to
defined comparable agencies. The agencies included in the survey are: City of Alhambra, City
of Diamond Bar, City of Duarte, City of El Monte, City of La Puente, City of Montebello, City
of Monterey Park, City of Pico Rivera, City of San Dimas, City of San Gabriel and City of
Temple City according to established policies and procedures. Employees eligible for an annual
ITEM NUMBER. 5_
City Council Meeting
August 8, 2017
Page 2 of 5
merit increase,may receive a merit salary adjustment of up to 5% during the term of the
agreement.
The annual salary survey included a review of "base salary" as well as a review of "total
compensation" which includes quantifiable benefits. The results below compare the "base
salary" survey data to that of the "total compensation" survey data. The results are as follows:
SAL�tY WRVU.; SULTS
JiT1YE
SERVICE # of Base Salar Surve Results Total Com SurveyResults
UNIT Classes # of Classes # of Classes # of Classes # of Classes
Below Above Below Above
Market Market Market Market
Executive
2
1 0
1
Management
5
- 2
1
Mid-Mgmt., Prof,
16
6 1
6
2
& Confidential
General
13
1 1 3
2
3
Total
36
-
8 6
22.22% 16.66%
9
25%
6
16.66%
Total as a
Percentage
Below/Above
Market
Total
-
22 out of 36 Job Classifications
21 out of 36 Job Classifications
Classifications
are within +/- 5% of the labor
are within +/- 5% of the labor
within Labor
market,
market.
Market
Percentage of
61.11% of Job Classifications
58.33% of Job Classifications
Classifications
are within the Labor Market
are within the Labor Market
witbin Labor
(Base Pay)
(Total Compensation)
Market
As a result of the survey, a total of nine (9) classifications, of which eight (8) are proposed for
increase, and one (1) proposed to decrease, are included in the various Resolutions. The
recommendations are summarized below:
Recreation Coordinator (General Unit) — The Recreation Coordinator classification has
historically been linked to the Office Specialist classification. The recommendation is to
"unlink" the Recreation Coordinator, as the survey results demonstrate that the City's rate
of pay is significantly behind the labor market. The current salary range is $2,795-3,858.
The recommended range based on the survey is $3,645 - $4,931. This represents an
increase of 27.82%.
City Planner (Mid -Management, Professional and Confidential Unit) — The City Planner
classification current salary range is $5,805 - $8,011. The recommended range based on
the survey is $6,999 - $9,469. This represents an increase of 18.20%.
City Council Meeting
,August 8, 2017
Page 3 of 5
DMuty Cily Clerk (Mid -Management, Professional and Confidential Unit) — The Deputy
City Clerk classification current salary range is $3,900 - $5,382. The recommended
range based on the survey is $4,502 - $6,091. This represents an increase of 13.18%.
Executive Assistant to the Cjjy Mana er (Mid -Management, Professional and
Confidential Unit) — The Executive Assistant to the City Manager classification current
salary range is $3,955 - $5,458. The recommended range based on the survey is $4,365 -
$5,906. This represents an increase of 8.21%.
Finance Services Su ervisor (Mid -Management, Professional and Confidential Unit) —
The Finance Services Supervisor classification current salary range is $4,202 - $5,916,
The recommended range based on the survey is $5,354 - $7,244. This represents an
increase of 22.44%.
Public Safety Su ervisor (Mid -Management, Professional and Confidential Unit) - The
Public Safety Supervisor classification current salary range is $5,342 — $7,373. The
recommended range based on the survey is $5,874 - $7,947. This represents an increase
of 7.79%.
Public Works Manager (Mid -Management, Professional and Confidential Unit) — The
Public Works Manager classification current salary range is $6,049 - $8,348. The
recommended range based on the survey is $6,884 - $9,314. This represents an 'increase
of 11,57°/x.
Human Resources Manager (Mid -Management, Professional and Confidential Unit) --
The Human Resources Manager classification current salary range is $6,930 - $9,564.
The recommended range based on the survey is $6,229 - $8,427. This represents a
decrease of 11,89°/x. The position is currently vacant, and there no impact to an
employee.
In addition to the changes noted above, the "base salary" survey results indicate the following:
• The City Manager's compensation is 17.3% behind the labor market; no change is
recommended as the City Manager's compensation is established by the City Council.
+ The Director of Public Works classif cation is 5.64% above the labor market; and the
Director of Parks & Recreation is 8.84% above. No changes are recommended as the
Director salaries have historically been linked, and the City's practice is to compensate
all Director's at the same rate of pay.
• The Senior Accounting Specialist survey results indicate that the classification is 16.15%
above the labor market, however no change is recommended. This class has an
established linkage to Accounting Specialist, at 25% above. The Accounting Specialist
survey was found to be at market rate, with no changes recommended.
City Council Meeting
August 8, 2017
Page 4 of 5
+ The Maintenance Worker classification survey results indicate that the classification is
8.67% above market, and the Lead Maintenance Worker at 10.44% above market. No
changes are recommended. The City desires to retain current levels of compensation for
these positions due to the wide variety of specialized maintenance services performed,
including facility maintenance involving trades skills. Further, the City has historically
not reduced compensation for current employees as a result of the survey process.
• Numerous other job classifications had small variances; however any results showing less
than 5% were not recommended for an increase in accordance with City policy.
The salary survey process also included the review of Part -Time classifications. It was found
that the City's current rates are significantly behind the labor market, which impacts the City's
ability to attract and retain qualified personnel to staff important community and recreational
programs.
• Out of the twelve (12) job classifications included in the survey, nine (9) of the twelve
(12) or 75% were found to be behind the labor market by 5% or more.
P One (1) classification is currently paid above market.
The low salaries for Part -Time staff became evident in the summer hiring this year where staff
found difficulties attracting qualified candidates. Part -Time salaries have increased within
comparable agencies due to the rise in the State of California's minimum wage, currently at
$10.50 per hour, and will continue to occur over.the next few years, until the minimum wage
reaches $15.00 per hour. The proposed Part -Time Resolution includes a new salary schedule that
will bring all ranges in compliance with the minimum wage, and provide rates that are
competitive with the labor market and salary survey results,
Amendments to the Rosemead Employee Association (REA) MOU include an update to the
Ca1PERS language in Article 3, reflecting that Classic Members are now paying their full share,
as of July 1, 2017. Amendments to the Management Services Unit Resolution and the Mid -
Management, Professional and Confidential Services Unit Resolution also reflect the same
Ca1PERS language update.
Lastly, a Comprehensive City-wide Salary Schedule is presented for adoption and approval by
Resolution which meets transparency and Ca1PERS requirements, and has been recommended by
the City's legal counsel for compliance purposes. The Comprehensive City-wide Salary
Schedule includes the recommended salary adjustments, which have been augmented to include
a two percent (2%) increase above the rates determined via the salary survey process to the
ranges effective July 1, 2017. The 2017 increase in CalPERS contributions and salary offset
was agreed upon in the established resolutions for 2016. As of July 1, 2017, all Classic Member
employees will be paying their full share of the employee contribution of the Ca1PERS costs in
compliance with PEPRA (Public Employees' Pension Reform Act).
City Council Meeting
August 8, 2017
Page 5 of 5
FISCAL IMPACT
The total estimated net cost to implement the terms and conditions of the Resolutions have been
factored into the City's adopted budget for 2017-18 fiscal year. There is a net savings in the
General Fund of approximately $15,600 associated with the proposed resolutions.
STRATEGIC PLAN IMPACT - None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Brad McKinney, Assistant ity Manager
Attachments:
A. Resolution No, 2017-38 General Service
B. Resolution No. 2017-39 Middle Management, Professional, and Confidential Service
C. Resolution No. 2017-40 Management Service
D. Resolution No. 2017-41 Part -Time Service
E. Resolution No. 2017-42 City -Wide Comprehensive Salary Schedule