Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Michelle Kuka, Deputy Director, Human Resources
Subject: Resolutions Establishing Salaries and Benefits for the Unrepresented Management, and Attorney and Confidential Units
RECOMMENDATION:
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Adopt three resolutions establishing Salaries and Benefits for the Unrepresented Management Unit, the Unrepresented Attorney's Unit, and the Unrepresented Confidential Unit, for the term of December 8, 2024, through October 9, 2027.
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BACKGROUND:
The County concluded negotiations with American Federation of State,
County and Municipal Employees (AFSCME) and Service Employees International Union (SEIU) which resulted in recommended salary increases and other economic and non-economic changes for represented employees. The Memorandum of Understanding for AFSCME and SEIU employees is also being presented to the Board of Supervisors on December 3, 2024. Traditionally, the Board considers a similar wage and benefit package for unrepresented Management, Attorney and Confidential classifications after negotiations with bargaining units.
DISCUSSION:
These recommendations are in alignment with the County’s negotiations goals and strategies, which include fiscal sustainability, equity and consistency with other bargaining units and competitiveness with the Bay Area workforce market.
The recommended resolutions have the following major elements which is a high-level summary of the major changes, but is not a substitute for the attached resolutions and the detailed terms contained therein.
Term
December 8, 2024 through October 9, 2027, for a two-year, ten-month term.
Salary Adjustment
Salaries for those classifications within these resolutions will receive Cost of Living Adjustments (COLA) increases as follows: 5% effective December 8, 2024, 5% effective October 12, 2025 and 4% effective October 11, 2026. The October 2026 COLA shall be increased by an additional 1%, for a total COLA adjustment of 5% if legislation is signed to ensure that San Mateo County receives its full Vehicle License Fee Adjustment Amount under the Revenue and Taxation Code.
Equity Adjustments
Classifications in the Management Resolution that were determined to be below market based on salary surveys with our comparator agencies or internal alignment will receive an equity adjustment to bring their salaries to the median of the market. The equity adjustments are being recommended for thirty-seven classifications, including department head classifications such as the Chief of Health-Unclassified, Treasurer-Tax Collector (Elected), Controller (Elected) and Public Safety Communications Director-Unclassified, as well as the County Executive Officer which is recommended for a 9.6% equity adjustment to maintain its 10% gap from the Chief of Health as per contract.
Medical Plan changes
The County will increase the County’s contribution towards the Medical Plan premiums for the Aetna HMO plans by 5%, so the County’s contribution will now be 90% and the employee’s contribution will now be 10%. Additionally, from October 12, 2025 through October 9, 2027, the County will contribute $59 per month as a “Premium Only” contribution to each benefit-eligible employee’s Section 125 account to be used for premium expenses.
Other economic changes
Employees covered under these three resolutions will begin to receive two Wellness Days each fiscal year that they can use as floating holidays.
Employees will receive one additional paid holiday, Cesar Chavez Day, beginning in 2025. They will also receive three days of Winter Recess in December 2024, December 2025 and December 2026.
Confidential employees covered under the Confidential Resolution will receive an increase in bilingual pay from $70 per pay period to $90 per pay period.
Employees covered under the Management and Attorney Resolutions will accrue an additional hour of Management/Administrative Time Off each pay period.
The County Attorney has reviewed and approved the resolution as to form.
Financial Impact on County’s Retirement System
Government Code Section 31515.5 requires the County to provide the estimated financial impact that proposed benefit changes or salary increases would have on the funding status of SamCERA ‘s retirement fund, the County’s retirement system. As reflected in the attached letters from SamCERA’s actuary, Milliman, the proposed salary increases for the Management employees is estimated to be an increase in the Unfunded Actuarial Accrued Liability (UAAL) of $24,887,000. There is also estimated to be an increase in the annual employer contribution rate of 0.41% of total payroll. While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, is estimated to be lower by 0.30% because of these changes.
For Attorneys it is estimated that the proposed changes will increase the Unfunded Actuarial Accrued Liability (UAAL) in the amount of $2,095,000. There is also estimated to be an increase in the annual employer contribution rate of 0.04% of General member payroll (0.03% of total payroll). While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, is estimated to be lower by 0.02% because of these changes.
It is estimated that the proposed salary increases for the Confidential employees will increase the Unfunded Actuarial Accrued Liability (UAAL) in the amount of $1,169,000. There is also estimated to be an increase in the annual employer contribution rate of 0.03% of General member payroll (0.02% of total payroll). While the UAAL of SamCERA will be higher by this amount, the funded ratio, rounded to the nearest 0.01%, is estimated to be lower by 0.02% because of these changes. Note that this is the impact on SamCERA funding only, so it does not reflect the cost to the County of implementing the Resolution.
FISCAL IMPACT:
The cost of the salary and other changes for the unrepresented Management, Attorney and Confidential Resolutions will result in a net increase of approximately $21 million in the first year of the term.