DATE: June 28, 2016
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adoption of a Resolution Approving the Modifications and Extensions of Employment Agreements with the City Manager, City Attorney, and City Clerk for Fiscal Year 2017; and Authorizing the Mayor to Execute the Agreements on Behalf of the Council
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RECOMMENDATION
Recommendation
That the City Council adopts the attached Resolutions authorizing modifications and extension of employment agreements between the City of Hayward and the City Manager, City Attorney, and City Clerk for Fiscal Year 2017 and authorizing the Mayor to execute those agreements on behalf of the Council.
Body
BACKGROUND/DISCUSSION
The current employment agreements with the City Manager, City Attorney, and City Clerk will expire on June 30, 2016, unless renewed on or before that date. The performances of the City Manager, City Attorney, and City Clerk were recently reviewed. Based on these performance reviews, the Council has expressed a desire to extend the terms of employment for the City Manager, City Attorney, and City Clerk through June 30, 2017.
On June 23, 2015, the City Council approved a Resolution to extend the employment agreements with the City Manager, City Attorney, and City Clerk through June 30, 2016. At that time, the Council delayed discussions related to compensation pending the completion of total compensation surveys for the Council Appointed Employees and resolution of salary matters with the City’s bargaining groups. Following completion of the compensation survey, which demonstrated that the Council Appointed Employees are substantially below mid-market by as much as 30% and the resolution of the salary matters with the City’s bargaining units, on September 22, 2015, the City Council approved equity adjustments for the Council Appointed Employees, consistent with those they approved for the Unrepresented Executives, which are capped at fifteen percent applied in equal installments of 7.5% in FY 2016 and FY 2017.
In addition to the equity adjustments, the employment agreements maintain employee contributions toward the cost of their benefits in order to help the City address its structural deficit and provide long-term financial stability, while preserving quality benefit packages for employees. The Council Appointed Employees continue to pay the full 8% employee share of retirement, contribute 20% toward medical and dental and 50% toward vision premiums. In FY 2016, they also agreed to pay 3% of the employer share of retirement benefits, phased in over three years beginning in FY 2016. The FY 2017 employment agreements reflect an additional 1%, bringing the current cost share contribution to 2%. There were no other changes made to the employment agreements.
FISCAL IMPACT
The cost of the changes to the employment agreements for the City Manager, City Attorney, and City Clerk are approximately $45,000, which has been reflected in the proposed FY 2017 Operating Budget.
Staff contact
Prepared and Recommended by: Nina S. Collins, Director of Human Resources
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Approved by:
Barbara Halliday, Mayor
Attachments:
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Attachment I |
Resolution Approving the Extension and Modification of the City Manager’s Employment Agreement and Authorizing the Mayor to Execute the Agreement on Behalf of the Council |
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Attachment II |
Resolution Approving the Extension and Modification of the City Attorney’s Employment Agreement and Authorizing the Mayor to Execute the Agreement on Behalf of the Council |
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Attachment III |
Resolution Approving the Extension and Modification of the City Clerk’s Employment Agreement and Authorizing the Mayor to Execute the Agreement on Behalf of the Council |