SunnyvaleRTC

SUBJECT: Amendment to Salary Resolution: Category A (COA-Represented) and Category C (PSOA-Represented) and Budget Modification No. 17

This report recommends amending the Salary Resolution to reflect the new pay rates for the following classifications, increased by the indicated percentages, effective retroactive to July 6, 2003:

7.70% - Public Safety Officer-in-Training, Public Safety Officer I, and Public Safety Officer II

7.75% Public Safety Dispatcher-in-Training, Public Safety Dispatcher, and Senior Public Safety Dispatcher

The 1997-2006 Memorandum of Understanding (MOU) with PSOA provides for salary adjustments for Public Safety Officers and Public Safety Lieutenants. Adjustments are to be based on the market survey data of total compensation for twelve (12) Bay Area cities and require that the City "provide such increase as needed to adjust the wages of Public Safety Officers and Public Safety Lieutenants eleven percent (11%) above" the survey averages of the top eight (8) agencies for salaries going into effect retroactive to the first full pay period in July of each year.

The 1999-2003 MOU with COA provides that wages for employees represented by COA shall be set so that the 5th Step for Public Safety Dispatcher is 15.0% below the 5th Step for Public Safety Officer II, and that the wage for Step 5 of Senior Public Safety Dispatcher shall be set 14.5% above Step 5 of Public Safety Dispatcher. Further, wages for Public Safety Dispatchers and Senior Public Safety Dispatchers shall be adjusted at the same time as Public Safety Officer II wage adjustments are made during the period of the MOU.

The proposed increases are in accordance with the provisions of the Memorandum of Understanding (MOU) between the City of Sunnyvale and the Public Safety Officers Association (PSOA), and with the provisions of the MOU between the City of Sunnyvale and the Communication Officers Association (COA), and past practice.

The President of the Public Safety Officers Association has received the data on which the salary increases for the positions represented by PSOA are based. Employees represented by PSOA and COA will be notified by memorandum.

Because the City’s budget must be adopted before the salary surveys take place, the City must make assumptions regarding the results of the survey process to develop the budget. Based on data at the time of budget preparation, this year’s budget included the following increases for PSOA-represented employees: 6.19% for Public Safety Officers, 5.94% for Public Safety Lieutenants, and for COA-represented employees: 6.25%. Because the salary survey results are higher, the current FY 2003/2004 budget falls short of covering this adjustment by approximately $485,238 for PSOA salaries and $27,312 for COA salaries. Therefore, the total budgetary gap is $512,550. On an on-going basis, the budget shortfall is $576,001 annualized. The figure is higher due to increased retirement costs beginning FY 2004/2005 and salary adjustments increasing faster than the budgeted inflation rate.

City Council scheduled a special meeting to determine how to fund this on-going budgetary gap. Due to the timeframe for posting items on the agenda, the funding recommendations were not known at the time this report was prepared. A late addendum may be entered based on the results of this special meeting.

If the salary adjustments are approved, a budget modification is necessary to appropriate funds and adjust the salaries budgeted for all PSOA and COA job classifications. This will increase the budget for all programs containing these work hours. The results of the special meeting will be incorporated into the budget modification.

	Budget Modification No. 17
		Fiscal Year 2003/2004
Expenditures:			Increase (Decrease)
PSOA and COA Classifications – Salary accounts in various programs			$512,550

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office.

1. Amend the Salary Resolution to reflect the new pay rates, and approve Budget Modification No. 17.

Staff recommends adoption of Alternative #1; amend the Salary Resolution to reflect the new pay rates, and approve Budget Modification No. 17.