FROM:
Human Resources
SUBJECT:
Title
Implementation of Classification and Compensation Study and Ratification of the 2024 - 2027 Memorandum of Understanding for the Fontana Police Benefit Association.
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-017, a resolution of the City Council of the City of Fontana, California, approving the Memorandum of Understanding and the updated salary table between the Fontana Police Benefit Association and the City to establish terms of employment.
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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:
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 Memorandum of Understanding (“MOU”) between the City and the Fontana Police Benefit Association (“PBA”) expired as of June 30, 2024. The City and the PBA have been negotiating in good faith since May 2024, with the implementation plan outlined below incorporated into these negotiations.
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. Specifically, PSPC identified classifications within the PBA as being an average of 3.5% below market. Aligning salary ranges with the market average and negotiated 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 March 22, 2025, salary ranges for PBA classifications identified as below market will be adjusted to the rate established in the Classification and Compensation Study, and the negotiated wage increase applied. On average, classifications are being adjusted by 4.7%. For the classifications identified as below market, incumbents will be moved to the next highest step within the new range, potentially unlocking future earning potential for the incumbent within their updated classification’s salary range.
Tentative Agreement
In addition to implementation of the Classification and Compensation Study, the City has concluded negotiations with the PBA, agreeing on terms and conditions of employment outlined in the attached MOU. Staff is recommending the formal ratification of the MOU.
The tentative agreement reached with the PBA spans a three (3) year period, ending June 30, 2027. Highlights include:
• A 4.0% base salary increase, effective March 22, 2025.
• A 3.3% base salary increase, effective July 12, 2025.
• A 3.3% base salary increase, effective July 11, 2026.
• A new Longevity Pay tier of $1,000 for employees with five (5) years but less than ten (10) years of service.
The updated salary table for the PBA is also being presented. Additionally, a one-time payment of $2,000 will be provided to all PBA employees as of March 11, 2025.
FISCAL IMPACT:
The total estimated budgetary financial impact associated with the approval of this contract is $785,290 through fiscal year 2026-27, for the remainder of FY24-25 the estimated salary adjustment is $94,980 plus an additional $170,400 related to the one-time, $2,000 payment for each employee. The FY24-25 salary adjustment was included with the Mid-Year Budget Report.
MOTION:
Approve staff recommendation.