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HomeMy WebLinkAbout06. Approve a salary adjustment of 13-percent for the Finance Manager classification Page 1 of 4 Item 6. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: FEBRUARY 17, 2022 SUBJECT: APPROVE A SALARYADJUSTMENT OF 13 PERCENT FOR THE FINANCE MANAGER CLASSIFICATION (M29, $6,344-$7,711.20 BI-WEEKLYTO M24, $7,178.40-$8,725.60 BI-WEEKLY) SUBMITTED BY: INITIATING DEPARTMENT: TEJI O'MALLEY, HUMAN RESOURCES AND OFFICE OF THE GENERAL MANAGER - ORGANIZATIONAL DEVELOPMENT HUMAN RESOURCES MANAGER Roger S. Bailey General Manager ISSUE Board approval is required for salary adjustments. BACKGROUND Due to the recent salary increases for many classifications as a result of the class study, Human Resources conducted an internal review of salaries to ensure internal parity between classifications with similar organization level, duties, responsibilities, and requirements. While the class study focused on whether individuals were appropriately classified and working within the scope of their current classification, this review was focused on whether or not classifications were appropriately paid compared to others with a comparable level of duties and responsibilities. During this review, the Finance Manager was identified as a class that should be further studied. There are currently twelve manager classifications, and the Finance Manager salary is the third lowest, above only the Program Manager and the Purchasing and Materials Manager. All of the classes above the Finance Manager are paid at the same salary level (M24). A chart of all manager's salaries can be found in Attachment 1. February 17, 2022 Regular Board Meeting Agenda Packet- Page 37 of 72 Page 2 of 4 The Finance Manager position plays a crucial and pivotal role in the operations of the entire District. Additionally, since this is an at-will represented position, the performance of the incumbent, Mr. Kevin Mizuno, can also be taken into consideration when determining whether or not a salary adjustment is warranted. Mr. Mizuno has been responsible for accomplishing the following objectives: • Instrumental in identifying and implementing solutions to issues associated with the Enterprise Resource Planning (ERP) implementation • Designed and implemented many procedural and policy improvements in various finance processes • Developed improved financial reports to meet Board and public needs • Worked effectively with Internal Auditor in reassessing and improving internal controls and processes • Played key role in cost savings initiatives such as the UAAL (unfunded actuarial accrued liability) paydown and OPEB (other post-employment benefits) budgeting • Managed complex budget issues to meet goals of financial plan Based on the complexity and criticality of the position as well as the incumbents exceptional performance, a salary adjustment is warranted. Human Resources is recommending a 13 percent increase for this classification, which would move the salary range from M29 to M24. For a visual reference and cost impacts, please refer to Attachment 2. ALTERNATIVES/CONSIDERATIONS Deny or propose an alternative adjustment. FINANCIAL IMPACTS If approved, the annual cost would be $30,704.65 and is summarized in Attachment 2. COMMITTEE RECOMMENDATION The Administration Committee reviewed this matter at its February 1, 2022 meeting and recommended approval. RECOMMENDED BOARD ACTION Approve the recommended 13 percent increase for the classification of Finance Manager, which would move the salary range from M29 to M24. Strategic Plan re-In GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management GOAL FOUR: Workforce Development Strategy 1—Proactively plan for future operational staffing needs ATTACHMENTS: 1. Current Manager Salaries 2. Cost Sheet February 17, 2022 Regular Board Meeting Agenda Packet- Page 38 of 72 Page 3 of 4 Attachment 1 Current Manager Salaries Class Title Max Annual Salary Current Grade Capital Projects Division Manager $226,865.60 M24 Collection Sytems Operations Division Manager $226,865.60 M24 Environmental and Regulatory Compliance Division Manager $226,865.60 M24 Finance Manager - PROPOSED $226,865.60 M24 Human Resources and Organizational Development Manager $226,865.60 U24 Information Technology Manager $226,865.60 M24 Planning and Development Services Division Manager $226,865.60 M24 Plant Maintenance Division Manager $226,865.60 M24 Plant Operations Division Manager $226,865.60 M24 Communications and Government Relations Manager $200,491.20 M29 Finance Manager $200,491.20 M29 Program Manager $181,729.60 M33 Purchasing and Materials Manager $172,931.20 M35 February 17, 2022 Regular Board Meeting Agenda Packet- Page 39 of 72 Attachment 2 Finance Manager Salary Increase Cost Sheet Annual Cost #of Current Proposed per Annual Current Class Proposed Class incumbents Salary Range Salary Range incumbent* Total Cost FINANCE MANAGER FINANCE MANAGER 1 M-29 M-24 $30,704.65 $30,704.65 OVERALL COST $30,704.65 * calculated with top step annual salary plus benefits February 17, 2022 Regular Board Meeting Agenda Packet- Page 40 of 72