Meeting Date: May 7, 20 13 Prepared by: Susan Paul

City Council Agenda Item Summary

Name: Consideration of a Resolution adopting compensation changes for the City of Carmel by-the-Sea Ambulance Paramedic/Firefighter employees.
Description: Adoption of this Resolution will provide for certain changes in compensation

for the City's Ambulance Paramedic/Firefighter employees including a market based salary adjustment and the establishment of a one-time retention incentive.
Compensation Salary adjustments:

Paramedic/Firefighter- 15% Base sala ry adjustment effective April 1, 2013. Retention Incentive- A one-t ime, non re-occurring $5000 retention incentive paid to employees employed by the City of Carmel by-the-Sea on May ih, 2013 working as a Paramedic/Firefighter. Employees accepting the retention incentive will be required to execute a retention incentive agreement (Attachment II).

Overall Cost: City Funds: FY 12/13 - $27,884 (remainder of Fiscal Year) FY 13/14 - $78,656

No additional funding is proposed at th is t ime.

Staff Recommendation: Adopt Resolution

Reviewed by:

Jason

~ ~Qty

Administrator

Date

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CITY OF CARMEL-BY-THE-SEA STAFF REPORT

TO: FROM: PREPARED BY: SUBJECT:

Honorable Mayor Burnett and City Council Members Jason Stilwell, City Administrator Susan Paul, Administrative Services Director ADOPTION OF A RESOLUTION ADJUSTING THE SALARIES FOR CITY OF CARMEL-BY-THE-SEA PARAMEDIC FIRE FIGHTERS AND ESTABLISHING A ONE-TIME, NON RE-OCCURRING RETENTION INCENTIVE

RECOMMENDATION: It is recommended that the City Council: (1) Review and adopt a Resolution (Attachment I} adjusting Paramedic Fire Fighter salaries by 15%, and (2) Establish a one-time, non re-occurring retention incentive for City-of Carmel Paramedic Fire Fighters employed with the City on May 7, 2013. SUMMARY: The Carmel Regional Fire Ambulance Authority (CRFA), which formerly provided ambulance services for the City of Carmel, dissolved in December 2011. On January 1, 2012 the City of Carmel-by-the-Sea took over ambulance services for City residents. The ambulance service is staffed with six (6) full-time Paramedic Firefighters. Staffing is supplemented by per-diem employees. Since the City took over the ambulance service three (3) employees have left to work for other jurisdiction(s) with salary being a primary factor in the decision to leave the City. Staffing shortages are typically filled with per-diem employees provided they are available and primarily with City of Monterey Fire Fighters on an overtime basis whose salaries are substantially higher than that of the City's Paramedic Fire Fighters. Staff has conducted a salary comparison of the Paramedic Fire Fighter position with eight (8) surrounding entities. Not all jurisdictions had Fire Fighter services; however, of those who did including Monterey, Marina, Salinas, Seaside and LaSelva Beach and the City's salary for this position fell below market by an average of approximately 12%. With respect to just a comparison with the City of Monterey who the City has loss staff to, Carmel's pay lags 17% behind. In order to provide the most

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consistent services to the residents of Carmel with the most highly trained individuals staff is recommending a 15% base salary adjustment and a $5,000, one-time, non-re-occurring retention incentive for the City Paramedic Firefighter employees.
DISCUSSION:

The City of Carmel by-the-Sea assumed the responsibility of the ambulance service on January 1, 2012. Since taking over the service three (3) employees have left the City for a higher paying job with the City of Monterey. Ambulance employees are highly trained individuals typically possessing an associates degree in fire science, six (6) to eight (8) week attendance at a fire academy and 100 (one hundred) hours of training to earn required certifications. Paramedic certification calls for approximately 1,300 (thirteen hundred) hours of advanced training as well as training in advanced medical skills through college or a technical school. Because of the costs associated with the various training the investment in these employees is extensive. Therefore, it is in the City's interest to retain the individuals hired into these positions. The City's ambulance service is typically staffed with six (6) full-time Paramedic Fire Fighters supplemented by per-diem employees when necessary. Most often, the City's vacancies have been filled with City of Monterey Fire Fighters at an overtime rate of pay which is much higher than the City's pay for the job. As a result of the turnover in the Paramedic Fire Fighter position staff conducted a market survey to determine whether or not the City's salary for the position was competitive and within the market for the job. The survey showed that the City's salary lagged behind comparable jurisdictions on average by 12% and 17% behind the city of Monterey. In order to provide the most consistent services to the residents with the best qualified individuals, staff is recommending adjustments to the City's compensation for the position. One component of the adjustment is a proposed 15% salary adjustment effective April 1, 2013. This adjustment will place the City's salary within the market. Future adjustments to pay should be connected to a changed pay system that is tied to performance, goal achievement and other success factors designed to ensure the best possible service to the residents of Carmel. The second recommended compensation change is a one-time non-re-occurring $5,000 retention incentive for Paramedic Fire Fighters employed with the City on May 7, 2013. Retention incentives are used to retain employees in critical jobs and during times of economic recovery when organizations compete aggressively for talent. Turnover is costly and directly impacts the performance of the service. The retention incentive will require employees to stay with the City through 2016 or pay the incentive back on a pro-rata basis.
FISCAL IMPACT:

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Funding for the recommended changes in FY 2013-14 will be absorbed in the current operating budget. FY 2013-14 changes will be included in the proposed operating budget. The costs for the associated changes are $27,884 for the remainder of the fiscal year 2012-13 and $78,656 beginning in FY 2013-14.

STAFF RECOMMENDATION: Adopt Resolution .

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ATTACHMENT I
CITY CCOUNCIL CITY OF CARMEL-BY-THE-SEA RESOLUTION 2013A RESOLUTION OF THE OTY COUNOL OF THE OTY OF CARMEL-BY THE-SEA APPROVING COMPENSATlON CHANGES FOR OTY OF CARMEL-BY-THE-SEAAMBULANCE PARAMEDIC/FIREFIGHTER EMPLOYEES INQUDING A BASE PAY INCREASE AND A ONE-TlME NON RE-OCCURRING RETENTlON INCENTlVE

WHEREAS, the City of Carmel-by-the-Sea's Paramedic/Firefighter salary range is below market for the position; and WHEREAS, the City of Carmel-by-the-Sea has lost staffing as a result of the compensation for the position; and WHEREAS, the City's ambulance service is a critical City service staffed by highly trained Paramedic/Firefighter's; and WHEREAS, the City has determined that in order to provide the best, most consistent and reliable service to the residents, the City will adjust Paramedic/Fire Fighter's salaries and is providing a one-time, non re-occurring retention incentive. THE CITY COUNCIL OF THE CITY OF CARMEL-BY-TH E-SEA DOES RESOLVE AS FOLLOWS:

1.

Approve a 15% base salary adjustment for City of Carmel-by-the-Sea Paramedic/Firefighters effective Aprill, 2013. Approve a $5,000 one-time, non re-occurring retention incentive for City of Carmel-by-the-Sea Paramedic/Firefighter employees, pursuant to receiving an executed agreement between the City and individual employees.

2.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA on this 7th day of May 2013 by the following roll call vote: AYES : NOES: ABSENT: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: NONE NONE SIGNED:

JASON BURNETT, MAYOR ATTEST:

Heidi Burch, City Clerk

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Attachment II

City of Carmel by-the-Sea Retention Incentive Agreement

This Retention Incentive Agreement (Agreement) is made and entered into effective _ _ _ _ _ _ between , (Employee) and the City of Carmel by-the-Sea (City). The ambulance service is a critical City service staffed by highly trained Paramedic/Firefighters. In order to provide the best possible and consistent services to the residents of Carmel, the City has determined a retention incentive for employees who continue their employment with the City would be beneficial. This incentive will provide residents with stable services benefitting the community. 1. Period of this Agreement. This Agreement will commence effective as of _ _ _ _ _ _ _ and will end on July 1, 2016 ("Agreement Period"). This Agreement is not renewable. It does not guarantee your employment for any specific period of time. The City reserves the right to terminate you at any time and for any or no reason.
2. Retention Incentive Payment. Subject to the terms and conditions of this Agreement,

the City will provide you with a retention incentive ("Retention Incentive") in the gross amount of $5,000, as a one-time non-reoccurring incentive. 3. Should the employee leave the City during the contract period, the employee will be responsible for reimbursement to the City on a pro-rated basis for a portion of the $5,000. The Retention Incentive is subject to regular tax with holdings and other authorized deductions.

City: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date:_ _ _ _ _ _ _ _ _ _ __

Employee:--- - - - - - - - - - - - - - - D a t e : - - - - - - - - - - - -

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