REPORT TO THE CITY COUNCIL FROM: MARISSA J. SANCHEZ, Director Personnel Services Department BY: VANESSA PERALES, Human Resources Manager Personnel Services Department SUBJECT ..Title ***RESOLUTION - Adopt the Twentieth Amendment to FY 2022 Salary Resolution No. 2021-176, amending Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA) to modify the salary ranges for Engineer I and Engineer II classifications, effective June 13, 2022 (Subject to Mayor's Veto) ..Body RECOMMENDATION It is recommended that Council approve the Twentieth Amendment to the FY22 Salary Resolution No. 2021-176 effective June 13, 2022, to modify the salary ranges for Engineer I and Engineer II classifications in Exhibit 3, Unit 3, Non-Supervisory White Collar (FCEA). EXECUTIVE SUMMARY In collaboration with the respective City departments that are experiencing recruitment and retention challenges affecting the unlicensed Engineer I and Engineer II classifications, Personnel Services has modified the salary ranges for these classifications to offer a more competitive salary to attract qualified applicants and improve employee retention to avoid delays in the completion of City engineering projects. This action will not require an increase in total positions in the Public Works, Public Utilities or Planning and Development Departments. To implement these actions, it is necessary to approve the Twentieth Amendment to FY 2022 Salary Resolution No. 2021-176. BACKGROUND The Personnel Services Department continues to work collaboratively with City departments that are experiencing recruitment and retention challenges for the unlicensed Engineer I and Engineer II classifications. These departments have encountered difficulty recruiting and retaining qualified Engineers which has resulted in project delays due to consistent staff hiring and turnover. Experienced staff provide continuity through a systematic and organized approach to identify the necessary functions at the lowest cost. This is accomplished through value engineering where experienced staff are knowledgeable about the community and project need, can identify critical path items, mitigate utility conflicts or design issues. Project delays due to consistent staff turnover often result in increased expenses especially during times of inflation that affect the ongoing cost of materials, time and labor in addition to concerns from constituents on the timely completion of critical infrastructure issues. Through discussion with the Department of Public Works and Public Utilities, it was determined that salary was a significant factor in attracting qualified applicants and retaining experienced employees who have resigned to pursue more competitive wages offered through the State of California and other municipalities. While the departments continue to make every effort to hire and retain qualified applicants, the current average years of service in the City of Fresno for 15 of 22 Engineer I/II incumbents is approximately 2.5 years. Retaining experienced staff ensures continuity, value engineering and timely completion within the initial budgeted cost in the overall design and construction phases for each project. In an effort to attract and retain qualified Engineer I and Engineer II applicants and incumbents, a salary increase of 14% is recommended at the Engineer I level and a salary increase of 17% is recommended at the Engineer II level to offer a competitive salary based on a focused labor market review with other agencies. In addition to this recommended salary increase, the Engineer I and II classification will continue to receive scheduled salary increases consistent with the FCEA MOU. Current employees in these respective classifications shall be adjusted to their same relative step in the new salary range, and such adjustment shall not alter the employee's anniversary date for purposes of future step increases in the class, per Salary Resolution, SECTION 2. Salary Step Plan (K). The City provided notice to the respective bargaining unit regarding the modified salary ranges and has concluded its meet and confer obligation. The City Attorney's Office has approved the Twentieth Amendment to Salary Resolution No. 2021-176 as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno. FISCAL IMPACT Revising the salary ranges for the Engineer I and II classification in Exhibit 3 will result in increased salary and benefit expenses of approximately $3,339 to the General Fund and $8,666 to All Funds in Fiscal Year 2022; and approximately $173,613 to the General Fund and $450,632 to All Funds in ongoing costs for Fiscal Year 2023. The additional expenses do not require additional appropriations for the respective departments. Attachments: Resolution: Twentieth Amendment to FY22 Salary Resolution No. 2021-176 Salary Table: Twentieth Amendment to FY22 Salary Resolution No. 2021-176 - Redline Salary Table: Twentieth Amendment to FY22 Salary Resolution No. 2021-176 - Final