To: Board of Supervisors
From: Human Resources
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
Approval of the Compensation Plan for Elected & Appointed Department Heads (Units 10 & 11) for the Term of Jan. 1, 2025, Though and Inclusive of Dec. 31, 2026
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the Compensation Plan for Elected & Appointed Department Heads (Units 10 & 11) for the term of Jan. 1, 2025, through and inclusive of Dec. 31, 2026 (Attachment 1); and
2. Adopt Resolution (Attachment 3) approving the Compensation Plan for Elected & Appointed Department Heads (Units 10 & 11), effective March 15, 2026.
Body
STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Workforce & Operational Excellence
Strategic Plan Category: 3001 - Support a well-trained workforce
DISCUSSION:
The County of Humboldt and Elected & Appointed Department Heads have agreed to the matters set forth in the attached Compensation Plan for the term of Jan. 1, 2025, through and inclusive of Dec. 31, 2026.
The attached compensation plan outlines agreed-upon amendments and includes the following:
1. Term: Jan. 1, 2025 to Dec. 31, 2026
2. Insurance Coverage: Effective the first full month following approval of this compensation plan and for the remainder of the 2026 health plan year, the County will increase its contribution to cover 100% of the increase in the lowest cost health insurance plan premium from calendar year 2025 to 2026. These increased employer contributions in 2025 and 2026 will apply to each of Employee Only, Employee Plus One and Employee Plus Two or More levels of eligibility. The County’s premium contribution will continue to include the $200.00 per month supplement that went into effect during the term of the Jan. 1, 2022, through Dec. 31, 2024, Compensation Plan.
3. Longevity Incentive Pay: Longevity language was revised to ensure compliance with CalPERS interpretation of California Code of Regulations (CCR) section 571 regarding the pensionable status of special compensation. The longevity pay provided in this section was changed from a designated set of ranges (as identified on the Humboldt County Salary Range Schedule) to a percentage. 10-year longevity will be paid as 5.25% rather than 10 salary ranges. 20-year longevity will be paid as an additional 5.25% above 10-year longevity (for a total of 10.5%).
4. Vacation Conversion: Vacation Conversion language was added to clarify changes to this section in compliance with the doctrine of constructive receipt codified in Internal Revenue Code (IRC) section 451. This revision outlines that employees covered by this compensation plan shall have the option to convert vacation accrual (limited to a designated amount) to cash when an irrevocable election is made in the preceding calendar year.
5. Wellness Reimbursement: This section was removed from the compensation plan following the cessation of the program effective June 30, 2023.
Additional updates were made to the compensation plan to delete language that was no longer operative.
SOURCE OF FUNDING:
All county funds that issue wages to appointed and elected departments heads.
FINANCIAL IMPACT:
|
Expenditures (Various) |
FY25-26 Projected* |
FY26-27 Projected* |
|
Health Insurance |
$3,451 |
$7,592 |
|
Total Expenditures |
$3,451 |
$7,592 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (Various) |
FY25-26 Projected* |
FY26-27 Projected* |
|
Various Funds |
$3,451 |
$7,592 |
|
Total Funding Sources |
$3,451 |
$7,592 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
Total costs from all funds for this compensation plan is estimated to be $11,042. As the increase is attributed to health insurance, this is an ongoing cost. You Board approved $5 million in the fiscal year (FY) 2025-26 budget in 1100-990, General Fund Contingencies, for labor negotiations. At the end of the FY, should budgets not be able to absorb the increase in costs from approval of this compensation plan, staff will return to your Board to request a budget adjustment to utilize these contingencies.
STAFFING IMPACT:
There is no impact to current staffing levels with the adoption of the Compensation Plan for Elected & Appointed Department Heads.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to adopt the resolution approving the Compensation Plan for Elected & Appointed Department Heads. However, this is not recommended, as the previous compensation plan expired on Dec. 31, 2024.
ATTACHMENTS:
1. 2025-26 Compensation Plan for Elected & Appointed Department Heads - Final
2. 2025-26 Compensation Plan for Elected & Appointed Department Heads - Red Line
3. Resolution-Adopt 2025-26 Compensation Plan for Elected & Appointed Department Heads
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A