FROM:
Human Resources
SUBJECT:
Title
Adopt a Resolution of the City Council of the City of Fontana, California, Adopting Updated Salary Tables for Executive and Management Confidential Employees.
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-001, a resolution of the City Council of the City of Fontana, California, adopting the updated Executive and Management/Confidential salary tables, effective February 8, 2025.
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Practice sound fiscal management by living within our means while investing in the future.
• Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.
• Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.
• Create and maintain a dynamic team by emphasizing staff development.
DISCUSSION:
On February 14, 2023, the City Council awarded an agreement to Public Sector Personnel Consultants (PSPC) to assess the competitiveness of the City’s current classification and compensation structure for all positions city-wide. A Classification and Compensation Study was conducted, and the findings were presented to the City Council during Closed Session on May 14, 2024. At that time, the City Council directed staff to develop a pathway toward competitive pay as part of their goal to address employee recruitment, retention, and stability.
Coinciding with these efforts, the Executive Management Benefits Schedule has not been updated since it’s creation in 2022. The City Manager has been engaged in discussions with the Executive Management Team, with the implementation plan outlined below incorporated into these discussions.
Executive Management Team Implementation Plan
Although the study found that the City was, on average, five percent (5%) ahead of market based on total compensation, many of our current salary ranges are below the market average for similar roles in comparable cities, which directly impacts recruitment and employee retention. Aligning salary ranges with the market average and wage adjustments moving forward are essential for maintaining a competitive and fair compensation structure. The implementation plan outlined below will address current pay disparities to be fair and equitable, support employee satisfaction, and enhance our ability to attract and retain top talent.
Effective February 8, 2025, salary ranges for Executive classifications identified as below market will be adjusted to the rate established in the Classification and Compensation Study. On average, Executive classifications are being adjusted by 6.9%, potentially unlocking future earning potential for the incumbent within their updated classification’s salary range.
In addition to the implementation of the Classification & Compensation Study, an updated Executive Management Benefits Schedule is being presented as a separate agenda item. One of the updated terms and conditions of employment is an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024) effective February 8, 2025, resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025). The updated salary ranges are below:
Management/Confidential Employees
At the December 10, 2024, City Council meeting, staff presented an Implementation Plan and Deal Points for Management/Confidential employees, which the City Council approved. As part of that approval, staff indicated that the respective salary tables would be presented at the January 28, 2025, City Council meeting. Those salary tables are now being presented for final review and consideration, effective February 8, 2025.
Further, the City Manager’s employment contract states “Employee will receive cost-of living adjustments equal in percentage to, and at the same time as, the Management/Confidential Unit.” In order to maintain this provision, staff is recommending adoption of the updated Executive Group salary table in which the maximum annual salary for the City Manager classification is increasing to $351,026.35, effective February 8, 2025.
Formal adoption of all City Salary Tables is in accordance with the guidelines provided by the California Public Employee Retirement System (CalPERS).
FISCAL IMPACT:
As presented at the December 10, 2024, City Council meeting, the total estimated budgetary financial impact associated with the approval of this item is $2,026,530
for Management/Confidential employees through June 30, 2027. Additionally, the cost associated with the 1% COLA for Executives and the City Manager for remainder of 2024-25 is $46,664.
MOTION:
Approve staff recommendation.