AGENDA

ITEMNO. 5

AGENDA STAFF REPORT

City of West Covina [ Office of the City Manager

DATE: September 19, 2017

TO: Mayor and City Council

FROM: Chris Freeland
City Manager

SUBJECT: POLICE CHIEF SALARY RANGE INCREASE & RETIREE MEDICAL

BENEFIT RETENTION

RECOMMENDATION:

It is recommended that the City Council adopt the following resolution to increase the salary range
of the Police Chief and to amend the Department Heads Summary of Benefits to allow the
suspension of retiree medical benefit for those Department Heads who come out of retirement to
serve the City.

RESOLUTION NO. 2017-77 - A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF WEST COVINA, CALIFORNIA, ADJUSTING THE
SALARY RANGE OF THE POLICE CHIEF AND AMENDING
DEPARTMENT HEADS SUMMARY OF BENEFITS.

BACKGROUND:

This item was carried over from the September 5, 2017, City Council Meeting.

DISCUSSION:

With the retirement of Police Chief Dave Faulkner on June 30, 2017, it is appropriate for the City
of West Covina to review the Police Chief salary range.

On May 2, 2017, the City Council approved the 2015-2019 Police Management Memorandum of
Understanding (MOU). Included in the MOU was the establishment of new salary ranges for
Police Management that reflected the elimination of overtime and specialty pays (i.e. education
incentive, longevity, uniform allowance, etc.).
Police Chief Salary Range Increase & Retiree Medical Benefit
2 of 2 -September 19, 20 I 7

As a result, the current salary range for Police Lieutenant is $139,259 to $188,000, and Police
Captain is $149,184 to $201,396. The current Police Chief salary range is $162,528 to $204,792.

Attached is a salary survey from eight market Cities that has been historically used by the City of
West Covina for salary comparisons (Attachment No. I). The average base salary range for Police
Chief, based on the survey is $175,098 to $230,931, with an average salary differential between
Captain/Deputy Chief and the Police Chief of 28%.

In order to address compaction in salary between the Police Chief and Police Captains, and to
provide a competitive salary, Staff is requesting the City Council establish a new salary range of
$162,528 to $211,999, which is below the average salary presented in the salary survey. This will
also provide for a 5% salary differential between the Police Captains and Police Chief.

In addition, the City has made a job offer to a candidate who had previously retired from the City
of West Covina. By bringing this former employee back, the City will be able to suspend his
retiree medical benefit and generate savings to the City. To realize this benefit, a change to the
Department Heads Summary of Benefits is needed to allow the suspension of the retiree medical
benefit, and reinstatement upon retirement from the City. To retain this benefit, the new Police
Chief must not break service and must retire from West Covina.

FISCAL IMPACT:

The Police Chief position is budgeted at a salary of $204,792 for Fiscal Year 2017-18. Increasing
the Police Chief salary range up to $211,999, will not impact the City's General Fund, as the new
Police Chief will generate approximately $172,000 in annual savings and reduced liabilities
(Suspension of Annual Pension and Retiree Medical Payments) by resuming service with the City.
With the increased salary and related pension costs, the net General Fund savings to the City is
approximately $160,000 per year.

Chris Freeland
City Manager

ATTACHMENTS:

Attachment No. I - Police Chief Salary Survey

Attachment No. 2 - Resolution 2017-77 - Police Chief Salary Adjustment
 ATTACHMENT NO. 1

Police Chief Salary Survey (September 2017)

Chief Deputy Chief/Captain

Monthly Yearly Monthly Yearly
% Greater
Population Step 1 Top Step Step 1 Top Step Step 1 Top Step Step 1 Top Step
Alhambra 85,474 $12,009 $ 16,941 $144,108 $ 203,292 $ 9,532 $12,474 $114,384 $ 149,688 36%
Burbank 105,033 $ 14,784 $ 19,441 $ 177,408 $ 233,292 $ 12,346 $ 16,235 $ 148,152 $ 194,820 20%
Costa Mesa 114,044 $ 13,310 $ 17,836 $ 159,720 $ 214,032 $ 11,474 $ 13,972 $ 137,688 $ 167,664 28%
El Monte 115,965 $ 13,060 $ 15,875 $ 156,720 $ 190,500 $ 11,768 $ 14,303 $ 141,210 $ 171,634 11%
Glendale 201,748 $ 14,932 $ 20,263 $ 179,184 $ 243,156 $ 12,375 $ 15,331 $ 148,500 $ 183,972 32%
Ontario 174,283 $ 15,848 $ 21,237 $ 190,176 $ 254,844 $ 12,407 $ 16,624 $ 148,884 $ 199,488 28%
Pasadena 143,333 $ 17,541 $ 21,927 $ 210,492 $ 263,124 $ 13,950 $ 17,438 $ 167,400 $ 209,256 26%
Pomona 155,306 $ 15,248 $ 20,434 $ 182,976 $ 245,208 $ 11,489 $ 14,033 $ 137,868 $ 168,396 46%

!Average Is 14,sgz Is 19,244 I Is 11s,09s I s 230,931 I I s 11,91s Is 1s,os1 I Is 143,011 I s 1so,G1s I 28%

Iwest Covina I 101,s41 Is 13,s44 I$ 11,066 I Is 162,s2s Is 204,192 I I$ 12,432 I$ 16,1s3 I I$ 149,184 I$ 201,396 I 2%

lwest Covina (Proposed} I$ 13,544 I$ 11,667 I I$ 162,s2s I$ 211,999 I I 5%

 ATTACHMENT NO. 2

RESOLUTION NO. 2017-77

RESOLUTION NO. 2017-77 A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,
ADJUSTING THE SALARY RANGE OF THE POLICE CHIEF
AND AMENDING DEPARTMENT HEADS SUMMARY OF
BENEFITS

WHEREAS, the City of West Covina has conducted a salary survey and approves the adjusted
salary range for the Police Chief;

WHEREAS, the City of West Covina has eliminated the retiree medical benefit for new
employees of the City of West Covina;

WHEREAS, the City of West Covina has preserved the retiree medical benefit for all City of
West Covina employees that had previously earned the benefit; and

WHEREAS, the City of West Covina wishes to allow a former West Covina employee that
previously earned the retiree medical benefit and is returning to service with the City of West Covina,
to be allowed to maintain the retiree medical benefit upon future retirement from the City of West
Covina.

NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY

OF WEST COVINA AS FOLLOWS:

SECTION 1. That the salary range for Police Chief of $162,528 to $211,999 per year is hereby
adopted.

SECTION 2. That Resolution 2016-57-Retiree Health Benefit (Public Safety) be amended to

read:

As of June 30, 2016, any newly hired Police Chief or Fire Chief, will no longer
receive retiree medical benefit above the Public Employees' Medical and
Hospital Care Act (PEMCHA) minimum, as established by the State, which is
afforded to other City employees.

Those public safety employees, hired prior to June 30, 2016, and continuously
employed by the City, that previously earned this benefit as a member of another
West Covina Public Safety Bargaining Group, are eligible to maintain this
benefit.

In addition. any West Covina retiree that returns to service with the City of West
Covina, and had previously earned this benefit as an employee of West Covina.
shall have the benefit suspended until their future retirement from the City of
West Covina, at which time it will resume at the same monthly rate.

SECTION 3. That this resolution shall become effective on July 1, 2017, to coincide with the
new Fiscal Year.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 19th day of September 2017.

Corey Warshaw
Mayor

APPROVED AS TO FORM ATTEST

Kimberly Hall Barlow Nickolas S. Lewis

City Attorney City Clerk

I, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof on the 19th day of September, 2017 by
the following vote of the City Council:

AYES:
NOES:
ABSENT:
ABSTAIN:

Nickolas S. Lewis
City Clerk