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SR-11-24-2015-3I City Council Report City Council Regular Meeting: November 24, 2015 Agenda Item: 3.I 1 of 3 To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Adoption of Resolution authorizing the City Manager to execute a revised Executive Pay Plan amending the salary and retirement benefits for the classification of Fire Chief Recommended Action Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a revised Executive Pay Plan amending the salary and retirement benefits for the classification of Fire Chief. Executive Summary In anticipation of initiating the recruitment process for a new Fire Chief, staff has reviewed the salary and retirement benefits for the Fire Chief classification as outlined in the Executive Pay Plan document that applies to the City's Department Dire ctors. The changes proposed align the retirement benefits and contributions paid by employees towards their retirement benefits with the other sworn fire bargaining units. Background The salary and benefits for the classification of Fire Chief are specified in the Executive Pay Plan (EPP) along with those of all of the City’s Department Directors. As the City prepares to initiate the recruitment for a new Fire Chief, staff has reviewed the salary and benefits for the Fire Chief classification and is proposing changes as specified below to align retirement benefits and contributions paid by the employee towards their retirement benefits with the other sworn Fire bargaining units; the Santa Monica Firefighters Association, Local 1109 (1109), and the Fire Executive Management Association (FEMA). The changes proposed for the Fire Chief classification are also consistent with how the retirement benefits and employee contributions for the Police Chief are aligned with those of the sworn police bargaining unit (SMPOA). Discussion 2 of 3 The proposed changes in retirement benefits and retirement contributions paid by the employee occupying the classification of Fire Chief are as follows:  The employee will contribute 11.5% of his/her salary towards the cost of his/her retirement benefits. Effective July 1, 2016 that contribution shall be increased by 1.5%.  Elimination of the Employer Paid Member Contribution (EPMC), which is an optional enhanced retirement benefit, the cost of which has been paid by the employees. The above changes are consistent with those contained in the existing memorandum of understanding with 1109 and FEMA. The salary range for the classification is recommended to be set at $18,331-$22,631 per month. This rate maintains the existing salary differential between the Fire Chief and the classification of Deputy Fire Chief. Financial Impacts and Budget Actions The cost of the proposed changes is estimated to be $18,863 annually. The appropriation will be included in the FY 2015-16 Midyear Budget for Council approval. Prepared By: Donna Peter, Director Approved Forwarded to Council Attachments: 3 of 3 A. Resolution City Council Meeting: November 24, 2015 Santa Monica, California RESOLUTION NUMBER ___ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO EXECUTE A REVISED EXECUTIVE PAY PLAN TO MAKE CERTAIN CHANGES TO THE CLASSIFICATION OF FIRE CHIEF WHEREAS, the City has established an Executive Pay Plan governing the salary and benefits of Department Directors and certain other employees working under separate employment agreements; and WHEREAS, amendments to the Executive Pay Plan are presented to the City Council of the City of Santa Monica for consideration consistent with the requirements of Regulation 570.5 of Title 2 of the California Code of Regulations; and WHEREAS, in preparation for the recruitment of a new Fire Chief, the City has reviewed the salary and benefits for the classification of Fire Chief; and WHEREAS, the City desires to align retirement benefits and contributions paid by the Fire Chief towards his or her benefits with other City sworn fire bargaining units and to set a salary range commensurate with such benefits; and WHEREAS, the City now desires to make certain revisions to the Executive Pay Plan related to the salary and retirement benefits for the classification of Fire Chief. 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Santa Monica hereby approves and authorizes the City Manager to execute a revised Executive Pay Plan (FY2015-2016) to make the following changes in salary and benefits for the classification of Fire Chief: 1. The salary range shall be revised to an amount equal to $18,331 - $22,631 per month; 2. Employee contribution to retirement benefits shall be equal to 11.5% of the employee's reportable compensation, with an increase of an additional 1.5% effective on July 1, 2016; and 3. Employer Paid Member Contributions shall be eliminated. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: 2 Reference:    Resolution No. 10925  (CCS)