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HomeMy WebLinkAbout9/2/2021 - City Council - Agenda -SpecialCity Council Special Meeting A G E N D A Thursday, September 2, 2021, 2:00 PM Council Chambers, City Hall, 114 North Broad Street, Salem, Virginia 24153 1.C all to Order A.Roll Call 2.New Business A.Discussion I tems Discuss and consider salaries for certain full-time, non-exempt positions. 3.Adjournment Item # 2A Date: 9/2/2021 AT A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SALEM, VIRGINIA HELD AT CITY HALL MEETING DATE: September 2, 2021 AGENDA ITEM: Authorize the City Manager to finalize and implement a market wage increase for full-time, non-exempt City employees in certain positions and utilize one-time bonus payments for certain positions due to proximity in relation to their classification maximum salary. SUBMITTED BY: Jay Taliaferro, City Manager SUMMARY OF INFORMATION: In order to address the significant market challenges in recruiting and retaining front line City employees, the following proposal is offered to Council for consideration. The proposal includes a wage increase effective September 5, 2021 of $2/hour ($4,160 annualized) for full-time, non-exempt employees excluding sworn Fire, Police, Sheriff, and certain Electric Department positions previously reclassified and receiving targeted market increases in the fiscal year 2022 budget and class plan list of positions adopted on May 24, 2021 and amended on June 28, 2021 by Council. Limitations are included on certain positions based on their current proximity to their position grade maximum salary and are demonstrated below. Proposed components of the plan include: 1.Applicable employees currently earning equal to or greater than $4,160 below their respective position grade maximum will receive the full $4,160 salary increase. 2.Applicable employees currently earning between $2,000 and $4,159 below their respective position grade maximum will receive a prorated salary increase to the maximum salary for their grade. 3.Applicable employees currently earning between $1,999 below and up to or exceeding their respective position grade maximum will receive a gross $2,000 impact through the combination of a salary increase up to the maximum salary for their grade and the remainder in the form of a one-time bonus. The examples below demonstrate how this would be applied based on hypothetical employees each with a current position grade maximum salary of $40,000: Example 1: Employee A is in a full-time, non-exempt, eligible position and is currently earning $35,000. Employee A would receive the full $4,160 salary increase as they are currently equal to or greater than $4,160 below their position grade maximum. Example 2: Employee B is in a full-time, non-exempt, eligible position and is currently earning $37,000. Employee B would receive a salary increase of $3,000 placing them at the maximum salary for their grade as they are currently earning between $2,000 and $4,160 below their position grade maximum. Example 3: Employee C is in a full-time, non-exempt, eligible position and is currently earning $39,000. Employee C would receive a salary increase of $1,000 placing them at the top of the maximum salary for their grade and a one-time, gross bonus amount of $1,000. Employee C receives a gross $2,000 impact through salary increase and a bonus as they are currently earning between $1,999 below and up to or exceeding their position grade maximum. Attachment A is an example listing of the eligible positions based on the data extracted August 2, 2021 utilized for estimated cost modeling projections. FISCAL IMPACT: The estimated annual and current fiscal year (based on 9/5/2021 implementation) impact by fund type is included as Attachment B. Staff proposes utilizing existing fiscal year 2022 funding budgeted for general fund capital items to provide the necessary current year prorated amount. Sufficient designated revenue recovery funds eligible for general government reimbursement are available from monies already received through the American Rescue Plan Act (ARPA) to subsequently reimburse general fund capital. Formal appropriation by Council for the reimbursement of these funds will occur at a later date when Council appropriates the full or substantial amount of ARPA funds already received. STAFF RECOMMENDATION: Staff recommends Council authorize the City Manager to implement a market wage increase for full-time, non-exempt employees in certain positions and utilize one-time bonus payments for certain positions due to their relation to their classification maximum salary effective September 5, 2021; and to utilize existing budgeted funds for the fiscal year 2022 prorated costs that are eligible for subsequent ARPA revenue replacement replenishment by Council as needed.