PREPARED BY: ALICIA PLATT DATE OF MEETING: 07/15/2024
SUBJECT:
TITLE
CONSIDER ADOPTING A RESOLUTION AMENDING THE CITY’S CLASSIFICATION AND COMPENSATION PLAN FOR FY 2024-25 BY: (1) CREATING AND ADDING ONE (1) NEW FULL-TIME DIVISION MANAGER CLASSIFICATION OF ECONOMIC DEVELOPMENT AND HOUSING MANAGER IN THE CITY MANAGER’S OFFICE, AND (2) DELETING THE CLASSIFICATION AND REPLACING THE IMMINENT VACANCY OF ONE (1) FULL-TIME DIRECTOR OF ECONOMIC DEVELOPMENT, HOUSING AND SUSTAINABILITY POSITION WITH ONE VACANT FULL-TIME ASSISTANT CITY MANAGER POSITION IN THE CITY MANAGER’S OFFICE, AND (3) AUTHORIZING ONE FULL-TIME SENIOR ADMINISTRATIVE CLERK POSITION IN THE PUBLIC WORKS DEPARTMENT, WITH A TOTAL APPROPRIATION NOT TO EXCEED $180,000 FROM FY 2024-25 CITY MANAGER OPERATING CONTINGENCY RESERVE (FUND 190)
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2023-25 Council Priority Workplan Compliance Statement
This item is not in the City’s Priority Workplan but is essential to meet critical operational needs and workload demands in the City Manager’s Office and Public Works Department.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA.
BACKGROUND
Under the City of San Pablo’s Personnel Rules adopted by Resolution 2014-031, Section 2.03 establishes the authority of the City Manager to prepare and make revisions to the City’s Classification Plan (hereafter referred to as “the Plan”). The Plan includes an Employee Allocation List, Salary Range Schedules, and Class Specifications.
FY 2024-25 Class and Comp Plan Approval
On June 17, 2024, the San Pablo City Council approved the City Manager’s recommended Classification and Compensation Plan (Plan) for the FY 2024-25 period via adopted Resolution 2024-079, effective July 1, 2024. In the adopted Plan, following recent budget deliberations for the FY 2025 - 2026 period, there were a total of six (6) FTE vacancies which remained vacant and frozen as a one-time budget balancing measure, and deferred to FY 2024-25 until additional budget resources could be identified during the Adopted FY 2025-26 Two-Year Biennial GF Budget period.
Recent CMO Resignation and Vacancies
On July 1, 2024, the City’s Director of Economic Development, Housing, and Sustainability Projects tendered his resignation to the City Manager, with his last day of City employment as of July 25, 2024. As a result, there now exists two (2) critical FTE vacancies in the City Manager’s Office that need to be addressed immediately:
• Assistant City Manager (1.0 FTE Vacant)
• Director of Economic Development, Housing and Sustainability (1.0 FTE Vacant)
With current budgetary resources available for FY 2024-25, the City Manager has indicated that there is a critical operational need to fill the vacant Assistant City Manager position as an immediate priority for the City’s Administration, day-to-day operations and service delivery. The City Manager planned to initiate an executive recruitment for the existing Assistant City Manager position in September 2024. However, with the imminent departure and vacancy of the Director of Economic Development, Housing and Sustainability, the City Manager has determined that a recruitment must be expedited immediately, with professional executive recruiter services already retained under the City Manager’s budget authority to conduct the Assistant City Manager recruitment which commences on July 16, 2024, with a future appointment targeted for November 1, 2024.
Concurrently, there is also critical operational priority on maintaining the City’s focus on generating new economic development and housing investments and implementing programs due to the City’s current fiscal condition, and need to develop new fiscal and revenue capacity for City service delivery for the future. Therefore, the City Manager will need to fill both vacant FTE positions for critical operational necessity under this proposed Plan amendment.
Public Works Department - Administrative Support
To meet current and expanded operational needs and administrative workload demands in the Public Works Department, the proposed Plan amendment will also authorize budget allocation for FY 2024-25 to backfill the current FTE vacant Senior Administrative Clerk in the PW Department.
Therefore, the City Manager proposes the following Plan Amendment for meeting City operational necessity during FY 2024-25 period, as follows:
Proposed Plan Amendments
I. CREATING A NEW CLASSIFICATION OF ECONOMIC DEVELOPMENT AND HOUSING Manager and adding one fULL-TIME POSITION
Employee Group: Division Manager (Non-represented)
This proposed amendment is necessary due to the resignation of the Director of Economic Development, Housing, and Sustainability Projects to meet the operational needs of the City Manager’s Office (CMO) to focus on the City’s critical need for economic diversification, new economic and housing investments, new revenue generation, and program implementation of the City’s new Economic Development Strategy Plan based on the City’s new Financial Condition as of December 13, 2023. Additionally, the proposed classification will administer the current responsibilities of the Local Successor Agency and Housing Successor Agency to meet State of California requirements regarding the dissolution of the City’s former redevelopment agency.
This new position, under broad policy guidance from the City Manager and Assistant City Manager, manages and supervises economic development activities, programs and projects, and facilitates new affordable and market rate housing investments and projects within the City. The proposed salary range for this newly proposed classification is $12,466 - $15,153 per month is being established at same range as the Human Resources/Risk Manager classification in the CMO to ensure internal equity, and recognize a high-level of responsibility. The new Division Manager classification reflects the managerial and supervisorial responsibilities in a program manager role given the nature of the critical management-level duties and responsibilities in the CMO, and reports directly to the Assistant City Manager position.
Once the newly Division Manager classification is established, the current Director of Economic Development, Housing and Sustainability classification will be deleted under the proposed Plan Amendment for the remainder of FY 2024-25 period. The proposed Economic Development and Housing Manager job description is attached as Exhibit B. (See Attachment)
II. DELETE and replace ONE FULL-TIME DIRECTOR OF ECONONMIC DEVELOPMENT, HOUSING AND SUSTAINABILITY with one FULL-TIME ASSISTANT CITY MANAGER
Employee Group: Executive Management (Non-represented)
The City Manager planned to initiate an executive recruitment for the existing Assistant City Manager position in September 2024; however, with the resignation and the current budgetary resources available for FY 2024-25, the City Manager indicates there is a critical operational need to fill the vacant Assistant City Manager position as an immediate priority for the City’s Administration, day-to-day operations and service delivery.
III. AUTHORIzing one fULL-TIME SENIOR adminstrative clerk
Employee Group: Operating Engineers, Local 3 (Represented)
This proposed amendment is critical to meet the operational needs and workload demands in the Public Works Department. The Senior Administrative Clerk is a frozen/vacant existing classification in the Plan for FY 2024-25 as indicated above. The City Manager recognizes the critical operational need for PW administrative support in PW Administration, and to forego the continued reliance since FY 2023-24 on current contract labor services when an existing contract expires on December 31, 2024.
Employee Labor Groups
The proposed FY 2024-25 Plan amendments regarding the creation and authorization of the Economic Development and Housing Manager position and deletion of the Director of Economic Development, Housing and Sustainability classification falls within the non-represented Division Managers and Executive Management employee groups. Therefore, no meet and confer obligations are triggered by these proposed amendments for FY 2024-25.
The Senior Administrative Clerk position is an existing classification in the Plan and currently assigned to OE3 represented employee labor group. There is no meet and confer obligation associated with authorization of the one FTE position for FY 2024-25.
Subsequent HR Recruitments
If Council approves the Plan Amendment, City staff will conduct a competitive recruitment and selection process immediately for the newly created Economic Development and Housing Manager classification during FY 2024-25. Similarly, City HR staff would conduct a competitive recruitment and selection process in September 2024 for the existing and vacant Senior Administrative Clerk position, with a target start date of January 1, 2025.
FISCAL IMPACT
Economic Development and Housing Manager - Cost Impact
Total salary and benefit cost of this new Division Manager position is approximately $210,000 annually (benchmarked at Step C). With an anticipated appointment date of November 1, 2024, total net fiscal impact is anticipated at $140,000 annually for the remainder of FY 2024-25 (Note: All FY 2024-25 total benefits and salary costs of the Assistant City Manager appointment on or around 11/01/24 will be covered by the current vacancy of the Director of Economic Development, Housing and Sustainability on July 25, 2024).
Senior Administrative Clerk - Cost Impact
Total salary and benefit cost of this existing FTE vacancy is approximately $78,000 annually (benchmarked at Step C). With an anticipated appointment date of January 1, 2025, total net fiscal impact is anticipated at approximately $40,000 (benchmarked at Step C) for the remainder of the FY 2024-25 period.
Funding Source: FY 2024-25 City Manager Operating Contingency Reserve (Fund 190) for both allocations not to exceed a net increase of $180,000 to cover all associated salary and benefit expenses for the remainder of FY 2024-25 period to be expended in the CMO Departmental and PW Departmental Budgets. (Note: The City Manager may supplant the $180,000 allocation from the FY 2024-25 CM Contingency Reserve (Fund 190), with future audited fund balance following future completion of the ACFR for period ending June 30, 2024 which will require future budget appropriation from the FY 2024-25 GFDR Fund Balance via adopted Resolution by the City Council).
Attachments:
Att A - FY 2024-25 Class and Comp Plan Amendment Resolution 2024-###
Att B - Proposed Economic Development and Housing Manager
Att C - Revised FY 2024-25 Organizational Chart (effective July 15, 2024)
Att D - Revised Division Managers Salary Schedule