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BACKGROUND The management and confidential employee group is currently comprised of 72 classifications and 79 positions. Consistent with the City's practice each year, staff is presenting to the City Council recommendations regarding the compensation for the City's management and confidential employees. DISCUSSION In accordance with the Meyers-Milias-Brown Act, parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours and other terms and conditions of employment. As the management and confidential employees are not represented by a union, and therefore are not covered under a collective bargaining agreement, negotiations are not appropriate. Instead, staff is making the following recommendation for wage adjustments. Historically, two primary factors have been considered in wage adjustment discussions: market data obtained from neighboring agencies that are similar in size, and the consumer price index (CPI) which reflects the general cost-of-living increase in the San Francisco-Oakland-Hayward area. Staff's recommendation of a 4.25 percent increase is consistent with market data, CPI, and the City's internal equity with labor. This year, a comprehensive classification and compensation study was conducted by Bryce Consulting. All management and confidential job descriptions were reviewed and revised to reflect current responsibilities and requirements. The compensation portion of the study provided labor market analysis and evaluation of the City's internal alignment to identify any salary compaction within the reporting structure. The results from the study indicated that seven classifications require adjustments to the salary range to maintain appropriate internal alignment. Based on this, staff recommends adjusting the salary ranges for these seven classifications: Assistant City Manager, Assistant Director of Engineering, Fire Chief, Deputy Fire Chief, Director of Public Works, Utilities Division Manager, and Police Chief to remedy identified internal compaction as provided as Exhibit A in Attachment 1. In addition to the proposed control point adjustment of 4.25 percent, managers and confidential employees are eligible for a performance-based increase like other City employee groups. ubmitted by: Fiscal Review: Approved by: Veronica Thomas Susan Hsieh Gerry Beaudin Director of Human Resources/ Director of Finance City Manager Labor Relations Attachment: 1. Resolution Page 2 of 2