FROM:
Human Resources
SUBJECT:
Title
Adopt Resolutions Amending and Restating the Executive Management Benefits Schedule for the Executive Management Team and the Compensation Plan for Management/Confidential Employees
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-002, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Executive Management Benefits Schedule for the Executive Management Team
Adopt Resolution No. 2025-003, a Resolution of the City Council of the City of Fontana, California, Amending and Restating the Compensation Plan for Management/Confidential Employees
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Practice sound fiscal management by producing timely and accurate financial 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:
Executive Management Benefits Schedule
The Executive Management Benefits Schedule was adopted by the Fontana City Council on July 26, 2022. Since that time, several benefit programs and policies have been reviewed to ensure alignment with the City’s objectives, industry standards, and legal requirements. This review highlighted the need to update the Executive Management Benefits Schedule to incorporate changes that have occurred since the last update.
The proposed Executive Management Benefits Schedule includes amendments to existing provisions concerning salary adjustments, benefits, and other terms of employment. Key changes include:
• One-time, $2,000 payment for each employee as of December 10, 2024.
• On February 8, 2025, an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024), resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025).
• On July 12, 2025, a 4.0% base salary increase.
• On July 11, 2026, a 3.0% base salary increase.
• Increase to Floating Holidays, including the value of the Day after Thanksgiving and one (1) additional Floating Holiday.
These updates ensure the City continues to offer a comprehensive, competitive, and equitable benefits package to its Executive Management team.
Management/Confidential Employees
The City of Fontana has previously set forth the terms and conditions of employment for certain unrepresented management and confidential employees through a series of Confirmations of Understanding.
Going forward, the City proposes to set forth those terms and conditions of employment via a resolution passed by the City Council instead of in a Confirmation of Understanding. Such a resolution would better reflect the unrepresented nature of this group of employees.
In the past, the City has also met and consulted with impacted management and confidential employees with prior to finalizing the previous Confirmations of Understanding. The City has continued that practice with regard to the terms and conditions of employment contained in the proposed resolution. The proposed resolution is the result of those discussions, and will be effective retroactive to July 1, 2024.
In particular and as presented at the December 10, 2024 City Council meeting, this resolution will memorialize the following:
• One-time, $2,000 payment for each employee as of December 10, 2024.
• On February 8, 2025, an additional 1.0% base salary increase (3.0% was applied as of July 13, 2024), resulting in a net base salary increase of 4.0% for Year 1 (FY 2024-2025).
• On July 12, 2025, a 4.0% base salary increase.
• On July 11, 2026, a 3.0% base salary increase.
• Increase to Floating Holidays, including the value of the Day after Thanksgiving and one (1) additional Floating Holiday.
These updates ensure the City continues to offer a comprehensive, competitive, and equitable benefits package to Management/Confidential employees.
FISCAL IMPACT:
As presented at the January 28, 2025, City Council meeting, File #25-005, the total estimated budgetary financial impact associated with the approval of the Management Confidential contract is $2,026,530, plus an additional $215,080 related to the one-time, $2,000 payment for each employee.
The additional 1.0% base salary for Executives is $41,260 and it has been included as part of the FY24-25 Supplemental Budget. The total amount for the one-time payment for Executives is $26,380.
MOTION:
Approve staff’s recommendation.