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HomeMy WebLinkAboutD-2 Staff Report - Implementation of Classification and Compensation Study OnlineSCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: TALIKA M. JOHNSON, DIRECTOR OF ADMINISTRATIVE SERVICES DATE: DECEMBER 4, 2023 SUBJECT: IMPLEMENTATION OF CITY-WIDE CLASSIFICATION & COMPENSATION STUDY BACKGROUND: In October 2022, the City Council awarded a contract to Transformance Consulting to conduct a Comprehensive City-wide Classification and Compensation Study (Study) to: 1) ensure the City’s job descriptions are: comprehensive and defensible; reflective of the work performed at the City of Azusa; properly allocated within a clear and systematic classification structure; and demonstrative of staff alignments, reporting relations and organizational structure, and 2) to ensure Azusa’s pay structure: offers competitive salaries as compared with the marketplace and is internally equitable; has the ability to attract, retain, and reward high quality performance; and has a sustainable system for the City’s current and future operational needs and economic environment. The recommended action approves the proposed changes to the Azusa’s city-wide classification and compensation plan based on the results to the Study. RECOMMENDATION: Staff recommends the City Council take the following action: 1)Adopt Resolution No. 2023-C74 adopting the revised City of Azusa Classification and Compensation Plan. ANALYSIS: The City hired Tranformance Consulting to perform a Comprehensive City-wide Classification and Compensation Study (Study). The scope of work included a comprehensive review of City’s current classification structure, organization charts, job descriptions, salary schedules, pay and salary allocation preferences and process for up to the City’s 231 full-time and part-time classifications. The last study performed was in 2016, however, due to the estimated cost to fully implement the recommendations Approved City Council December 4, 2023 Implementation of City-Wide Classification & Compensation Study December 4, 2023 Page 2 from that study and the City’s financial position at that time, most of the recommended changes were not implemented. Since, the City has made one-off adjustments to salaries and job specifications as needed for recruitment and retention, but the current job market requires a wholistic review to ensure the City is able to attract and retain highly competent staff to serve the Azusa community. There were two components of the Study: 1. Classification and 2. Compensation. Classification: The process commenced in November 2022 where all city employees were invited to participate in the Study by filling out a detailed position description questionnaire and being personally interviewed by the Consulting team to appropriately document their job duties, and to assess how job duties may have changed over time. Through this process and with review and concurrence by the City’s management team, labor groups, and impacted employees, several updates to job titles and job descriptions are being recommended. Compensation: The City’s labor bargaining groups were invited to provide input on which City of Azusa positions would be surveyed and which benchmark cities would be used to compare the City of Azusa salaries to. 14 Comparator cities were selected based on multiple factors:  proximity to Azusa  size and population of city compared to Azusa  services offered (such as electric and water utilities)  consideration of where former Azusa employees have recently transferred to The 14 comparator cities selected are as follows: 36 City of Azusa position classifications were surveyed based on recruitment and retention challenges and/or selection of mid-line positions in each Department and major Divisions in the City. The results were:  20 (56%) of the classifications show base salaries are below Market Median  16 (44%) of the classifications show base salaries are above Market Median Implementation of City-Wide Classification & Compensation Study December 4, 2023 Page 3 TABLE 1 – CITY OF AZUSA POSITION BENCHMARK RESULTS Assistant GM – Electric Operations 14,516.60$ 19,142.20$ 4 - 27.49%Below Assistant Planner 6,593.28$ 6,654.87$ 14 -0.93%Below Building Inspector II 7,542.60$ 7,221.24$ 10 4.35%Above Chief Deputy City Clerk 10,682.53$ 9,471.05$ 14 12.02%Above Community Improvement Inspector 5,601.13$ 6,385.00$ 13 -13.08%Below Customer Service Representative II 5,726.92$ 4,884.10$ 13 15.89%Above Electric Distribution Supervisor 13,895.31$ 14,458.56$ 4 -3.97%Below Family Services Manager 8,562.41$ 10,325.04$ 9 -18.66%Below HR-Risk Management Analyst 6,719.87$ 7,647.00$ 11 -12.91%Below Librarian 6,544.39$ 7,404.00$ 7 -12.33%Below Line Mechanic 10,487.58$ 10,821.13$ 4 -3.13%Below Park Maintenance Worker III 5,666.15$ 5,237.50$ 13 7.86%Above Police Dispatcher 5,944.01$ 6,082.62$ 13 -2.30%Below Police Officer 8,501.23$ 8,882.30$ 14 -4.38%Below Principal Civil Engineer 11,422.22$ 13,090.33$ 7 -13.61%Below Public Works Project Manager 8,955.11$ 9,478.00$ 9 -5.67%Below Purchasing Agent 7,237.98$ 8,223.77$ 8 -12.75%Below Senior Accountant 8,057.15$ 8,561.10$ 9 -6.07%Below Senior Administrative Technician 6,232.76$ 5,957.96$ 10 4.51%Above Senior Electrical Engineer 11,336.39$ 12,682.48$ 3 -11.21%Below Senior Electrical Test Technician 10,959.00$ 10,427.57$ 4 4.97%Above Senior IT Analyst 8,095.17$ 8,495.89$ 6 -4.83%Below Senior Management Analyst 7,298.36$ 8,559.03$ 12 -15.90%Below Senior Police Records Specialist 5,039.20$ 4,445.93$ 13 12.51%Above Senior Power Resources Planner 12,223.32$ 14,645.39$ 2 -18.03%Below Street Maintenance Worker II 5,258.11$ 5,086.25$ 10 3.32%Above Transportation Dispatcher 5,109.22$ 5,400.83$ 2 -5.55%Below Water Distribution Operator III 7,373.17$ 6,978.28$ 12 5.50%Above Water Distribution Supervisor 11,433.75$ 9,688.19$ 12 16.53%Above Water Systems Engineer 9,808.23$ 10,423.50$ 6 -6.08%Below Water Treatment Operator III 8,447.03$ 7,918.89$ 6 6.45%Above Bus Driver (PT)28.13$ 22.26$ 3 23.30%Above Library Aide (PT)19.14$ 18.24$ 9 4.82%Above Lifeguard (PT)19.14$ 18.63$ 8 2.70%Above Receptionist (PT)24.46$ 19.47$ 13 22.72%Above Recreation Leader (PT and FT)19.14$ 17.88$ 14 6.84%Above Azusa % Above or Below Median Azusa Above or Below Market MedianClassification Title Azusa Step 5 Salary Market Median # of Matches of the 14 Benchmarks The City had to consider several things in applying benchmark results across all 200+ classifications:  Internal alignment  Compaction  Affordability/sustainability  City (development and organizational) Growth Following extensive meet and confers with the City’s labor bargaining groups, on November 28, 2023, the Personnel Board received a comprehensive presentation and recommendations from Staff on the proposed changes to the City’s classifications/job descriptions and salaries for Full-time positions in accordance with Section 3. Position Classifications and Section 4. Compensation of the City of Azusa’s Implementation of City-Wide Classification & Compensation Study December 4, 2023 Page 4 Rules of the Civil Service System. In the attached documents, you will find the following summary of recommended changes for each of the City’s labor bargaining groups and unrepresented employees: A. Classification Title Changes B. Class Specification Revisions C. New Positions D. Reclassifications E. Salary Range Adjustments Also enclosed in each section are the entire set of Job Specifications for all Full-time positions within the City. Cost to implement the proposed changes, which also includes salary modifications for part-time positions which have a full-time equivalent position, are highlighted in Table 2 below: TABLE 2 - SUMMARY OF CITY-WIDE PERSONNEL COSTS Classification & Compensation Changes Fund Type FTE Allocation Budget % of Budget Cost % of Cost General Fund 213.78 26,883,233$ 58% 764,905$ 63% Major Enterprise Funds: Electric 39.61 6,477,942 14% 166,281 14% Water 45.94 6,434,606 14% 85,070 7% Sewer 9.00 1,255,568 3% 38,685 3% Internal Service Funds 11.75 1,603,444 3% 67,764 6% Special Revenue Funds 34.57 3,623,550 8% 85,263 7% Total Estimated Impact 354.65 46,278,344$ 100% 1,207,968$ 100% FY 2023/24 Personnel Summary Adoption of the attached Resolution updates in its entirety the City-wide Full-time Classification and Compensation Plan, and given the large amount of data, provides authorization to the Director of Administrative Services to make non-substantive/clerical edits when implementing the Plan. FISCAL IMPACT: The estimated fiscal impact of implementing the recommended classification and compensation changes is $1,207,968, of which 63% or $764,905 is allocable to the General Fund. Upon Council approval, Staff will amend the Fiscal Year 2023-24 Personnel Budget in accordance with Table 2. Prepared by: Reviewed and Approved: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Implementation of City-Wide Classification & Compensation Study December 4, 2023 Page 5 Attachments: 1. Resolution No. 2023-C74 2. ACEA Classification and Compensation Plan 3. AMMA Classification and Compensation Plan 4. APEA Classification and Compensation Plan 5. APMA Classification and Compensation Plan 6. APOA Classification and Compensation Plan 7. CAPP Classification and Compensation Plan 8. IBEW Classification and Compensation Plan 9. SEIU Classification and Compensation Plan 10. NON-REP Classification and Compensation Plan RESOLUTION NO. 2023-C74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA ADOPTING AN UPDATED EMPLOYEE HANDBOOK - POLCIEIS AND DELEGATING AUTHORITY TO THE CITY MANAGER TO MAKE PERIODIC CHANGES EMPLOYEE HANBOOK - POLCIEIS WHEREAS, In October 2022, the City Council awarded a contract to Transformance Consulting to conduct a Comprehensive City-wide Classification and Compensation Study (Study) to: 1) ensure the City’s job descriptions are: comprehensive and defensible; reflective of the work performed at the City of Azusa; properly allocated within a clear and systematic classification structure; and demonstrative of staff alignments, reporting relations and organizational structure, and 2) to ensure Azusa’s pay structure: offers competitive salaries as compared with the marketplace and is internally equitable; has the ability to attract, retain, and reward high quality performance; and has a sustainable system for the City’s current and future operational needs and economic environment; and WHEREAS, the City’s management team kicked-off the study in November 2022 by engaging all City of Azusa employees and the City’s eight labor bargaining groups; and WHEREAS, through extensive meet and confer meetings, the City and all eight bargaining groups have reached tentative agreements on the proposed changes to the City-wide Classification and Compensation Plan; and WHEREAS, such updates and changes will assist the City of Azusa attract and retain the most qualified employees; and WHEREAS, On November 28, 2023, the Personnel Board received a comprehensive presentation and recommendations from Staff on the proposed changes to the City’s classifications/job descriptions and salaries for Full-time positions in accordance with Section 3. Position Classifications and Section 4. Compensation of the City of Azusa’s Rules of the Civil Service System; and WHEREAS, the City Council, authorized the City-wide Comprehensive Classification and Compensation Study in recognition of the importance for the City of Azusa to have through and defensible Job Descriptions and to maintain competitive Salaries in order to attract and retain the most qualifies employees to serve the Azusa Community, and wishes to adopt the recommended changes resulting from the Study. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Azusa does hereby: SECTION 1: Rescind in its entirety all previously adopted Full-time employee Position Assignments, Job Specifications, and Salary Table(s) and adopt the enclosed Exhibits A-I City-wide Comprehensive Classification and Compensation Plan. SECTION 2: Authorize the Director of Administrative Services to make non- substantive/clerical adjustments to Job Specifications, Salary Schedule, and Incumbent assignments to a Classification as needed while implementing the Plan. Attachment 1 SECTION 3: Authorize Staff to amend the Fiscal Year 2023-24 Personnel Budget as shown in the Classification and Compensation section of the following table: ADOPTED AND APPROVED this 4th day of December 2023. ROBERT GONZALES, MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof on the 4th day of December 2023 by the following vote of Council: AYES: CITY COUNCIL MEMBERS: NOES: CITY COUNCIL MEMBERS: ABSENT: CITY COUNCIL MEMBERS: JEFFREY LAWRENCE CORNEJO, CITY CLERK Classification & Compensation Changes Fund Type FTE Allocation Budget % of Budget Cost % of Cost General Fund 213.78 26,883,233$ 58% 764,905$ 63% Major Enterprise Funds: Electric 39.61 6,477,942 14% 166,281 14% Water 45.94 6,434,606 14% 85,070 7% Sewer 9.00 1,255,568 3% 38,685 3% Internal Service Funds 11.75 1,603,444 3% 67,764 6% Special Revenue Funds 34.57 3,623,550 8% 85,263 7% Total Estimated Impact 354.65 46,278,344$ 100% 1,207,968$ 100% FY 2023/24 Personnel Summary EXHIBIT A ACEA Classification and Compensation Plan EXHIBIT B AMMA Classification and Compensation Plan EXHIBIT C APEA Classification and Compensation Plan EXHIBIT D APMA Classification and Compensation Plan EXHIBIT E APOA Classification and Compensation Plan EXHIBIT F CAPP Classification and Compensation Plan EXHIBIT G IBEW Classification and Compensation Plan EXHIBIT H SEIU Classification and Compensation Plan EXHIBIT I NON-REP Classification and Compensation Plan