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BACKGROUND <br /> The management and confidential employee group is currently comprised of 63 <br /> classifications and 76 employees. Consistent with the City's practice each year, staff is <br /> bringing forward for Council consideration recommendations regarding the <br /> compensation and benefits for the City's management and confidential employees. <br /> DISCUSSION <br /> In accordance with the Meyers-Milias-Brown Act, parties are required to meet and <br /> confer in good faith over items covered within the scope of representation, including <br /> wages, hours and other terms and conditions of employment. As the management and <br /> confidential employees are not represented by a Union, and therefore not covered <br /> under a collective bargaining agreement, negotiations are not appropriate. Instead staff <br /> is making the following recommendation for wage adjustments and amendments to the <br /> Management/Confidential Employee Performance Compensation Plan: <br /> Wage Adjustments: Historically, the two primary factors considered in wage adjustment <br /> discussions are: market data obtained from neighboring agencies that are similar in size <br /> and the consumer price index (CPI), which reflects the general cost-of-living increase in <br /> the San Francisco-Oakland-San Jose area (approximately 3.9 percent in June 2018). <br /> The proposed control point adjustment of 3 percent is consistent with market, CPI and <br /> the City's internal equity with labor and also includes a pool of money to be made <br /> available as performance incentive pay. <br /> Benefits: Modifications to benefits include the following: <br /> The amended language, set forth in the Management/Confidential Employee <br /> Performance Compensation Plan for which Council approval is sought reads as <br /> follows: <br /> "9. Deferred Compensation <br /> The City shall provide a voluntary IRC 457 deferred compensation plan for <br /> management and confidential employees and a voluntary IRS 401A plan for <br /> management employees. <br /> The City may provide deferred compensation contributions for management and <br /> confidential employees. Any funds deposited in a deferred compensation plan <br /> under this provision belong to the employee, regardless of length of service or <br /> reason for separation. <br /> The City shall contribute one and one-half percent (1.5 percent) of the <br /> employee's base compensation into a 457 deferred compensation plan. Effective <br /> January 12, 2019, the City shall contribute an additional one-half percent (.5 <br /> percent) for a total of two percent (2 percent). City contributions are tax-deferred, <br /> and count towards the 457 annual maximum deferral as designated by the IRS. <br /> Employees without an existing 457 account with a City sponsored provider must <br /> Page 2 of 3 <br />