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Home My WebLink About21 - Salary Adjustments for Engineers and Building OfficialCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 21 Date: July 22, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Human Resources Department Barbara Ramsey, Human Resources Director 949 644 -3282, bramsevCcdcitv.newport- beach.ca.us SUBJECT: APPROVAL OF SALARY ADJUSTMENTS FOR MANAGEMENT ENGINEERS AND DEPUTY BUILDING OFFICIAL ISSUE: Should the City Council approve a salary adjustment for the following job classifications: Principal Civil Engineer, Assistant City Engineer, City Traffic Engineer, and Deputy Building Official, to maintain the appropriate salary differentials with the positions they supervise? RECOMMENDATION: 1. Increase the salary range for Principal Civil Engineer and Deputy Building Official classifications by 5 %. 2. Increase the salary range for the Assistant City Engineer and City Traffic Engineer classifications by 2.43 %. 3. Approve a budget amendment transferring $43,466 from the General Fund Balance: $23,686 to the Building and $19,780 to the Public Works departments for salaries and salary- related benefits accounts. DISCUSSION: The City Council approved the Memorandum of Understanding (MOU) between the City and the Professional and Technical Employees' Association (Prof Tech) on September 11, 2007. The approved MOU included an updated Certificate Pay program which enabled all classifications covered under the Prof Tech MOU to be eligible for the Certificate Pay benefit, provided that the required certificate for that classification is obtained. Previously, Certificate Pay was only offered to Inspectors in the Building and Public Works Departments. The City's two new Principal Engineer (Plan Check) positions in the Building Department and one Principal Civil Engineer in the Public Works Department are currently not eligible for certificate pay, because they are not in the Prof Tech bargaining unit. As a result, when subordinate employees in the Senior Engineer job classification receive certificate pay, a Principal Engineer and Deputy Building Official Salary Adjustment July 22, 2007 Page 2 of 3 compaction issue occurs and the salaries for the Senior Engineers become very close to the Principal Engineers, creating a pay inequity. It also creates a disincentive for Senior Engineers to apply for the Principal Engineer position. In addition to not receiving certificate pay, as exempt employees, they also are not entitled to overtime pay. To remedy the situation it is recommended the salary for Principal Civil Engineer be increased by 5 %. To confirm this recommendation, we conducted a brief salary survey for Principal Civil Engineer comparing the City of Newport Beach salary with comparable positions in other Orange County cities. The survey data shows that the current compensation for Principal Civil Engineer is slightly below the market mean. Granting a 5% increase in salary will position the City more competitively in the marketplace, bringing Newport Beach to just above the market mean. In addition, since the Building Department currently has two Principal Civil Engineer vacancies, an adjusted salary should improve the City's ability to attract and retain qualified candidates. In a recent meeting the Assistant City Manager had with representatives of the development community, the need for staff at a level that can make decisions and is more accessible to customers than the Building Director or Deputy Building Official was raised as an issue. It is important for the Department to fill these positions with quality individuals. To reduce the salary compaction between the Principal Engineers and the Deputy Building Official that would occur as a result of an adjustment to the Principal Engineer positions, it is recommended that the Deputy Building Official also receive a 5% salary adjustment. Similarly, pay compaction would occur between the Principal Engineer in Public Works and the Assistant City Engineer and City Traffic Engineer positions. To prevent this from occurring, it is recommended that the Assistant City Engineer and the City Traffic Engineer classifications receive a 2.43% adjustment, spreading the differential to 5 %. The following table illustrates the comparison between the affected positions Current Current % Proposed Proposed . Classification Monthly Cert °Pay Total Salary Difference Monthly Difference Salary (Max) (w /Cert:Pay) Between Salary: Between (Top Step) Ranges Ranges Building Department Senior Engineer' $9,710 $486 $10,196 -- $10,196 -- Principal Engineer $10,283 N/A $10,283 0.9% $10,789 5.9% Deputy Building Official $11,069 N/A $11,069 7.6% $11,622 7.6% Principal Engineer and Deputy Building Official Salary Adjustment July 22, 2007 Page 3 of 3 Position is eligible for overtime pay FUNDING AVAILABILITY: The anticipated cost to implement the proposed changes for the remainder of FY08 -09 is $43,466. Since we are at the beginning of a new fiscal year, the departments have indicated there are no funds in their current budgets to absorb the adjustment and are requesting a supplemental appropriation from the General Fund. Prepared and submitted by: Human Resources Director Current Current Proposed Proposed Classification Monthly Cert , Pay TotatSalary Difference Monthly Difference Salary (Max) IwlCert Pay► Between Salary Between (Top Step) Ranges Ranges Public Works Dept. Principal Engineer $10,283 NA $10,283 -- $10,789 — City Traffic Engineer $11,069 NA $11,069 7.6% $11,338 5% Assistant City $11,069 NA 11,069 7.6% $11,338 5% Engineer Position is eligible for overtime pay FUNDING AVAILABILITY: The anticipated cost to implement the proposed changes for the remainder of FY08 -09 is $43,466. Since we are at the beginning of a new fiscal year, the departments have indicated there are no funds in their current budgets to absorb the adjustment and are requesting a supplemental appropriation from the General Fund. Prepared and submitted by: Human Resources Director City of Newport Beach NO. BA- 09BA -001 BUDGET AMENDMENT 2008 -09 AMOUNT: $43,466.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance X Increase Expenditure Appropriations AND X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from General Fund unappropriated fund balance to increase the salary and benefits for the Principal Civil Engineer (3), Deputy Building Official (1), City Traffic Engineer (1), and Assistant City Engineer (2) job classes. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account Description 010 3605 General Fund - Fund Balance REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Division Number Account Number Account Number Account Number Account Number Account Number Description Description 2930 Building - Plan Check/Permits 7000 Salaries - Miscellaneous 7425 Medicare - Fringe 7373 Compensated Absence 7439 PERS Employee Contribution 7440 PERS Employer Contribution Amount Debit Credit $43,466.00 $18,981.00 $275.22 $664.34 $1,421.68 $2,344.29 Division Number 5100 Public Works - Engineering Account Number 7000 Salaries - Miscellaneous $15,854.00 Account Number 7425 Medicare - Fringe $229.88 Account Number 7373 Compensated Absence $554.89 Account Number 7439 PERS Employee Contribution $1,187.46 Account Number 7440 PERS Employer Contribution $1,953.52 Signed: Signed: Signed: Approval: Administrative Services Manager bate Date City Council Approval: City Clerk Date