City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager |
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Date: |
March 30, 2026 |
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Subject: |
Classification and Total Compensation Study Reports |
Recommendation:
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Receive and file the City’s 2026 Final Classification and Total Compensation Study Reports.
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Background:
On May 6, 2025, the City Council approved a professional services agreement with Gallagher Benefit Services, Inc. ("Gallagher"), who was selected after a thorough RFP process. There were two phases under the scope of work of the contract: 1) Phase I- Classification Study; and 2) Phase II-Total Compensation Study.
Phase I
For several months beginning in May 2025, City staff, supervisors, managers and department heads worked with Gallagher consultants and Human Resources on updating City job descriptions. This phase included the review of 222 classifications which were completed at the end of 2025.
Phase II
Gallagher completed a total compensation study for 117 classifications. This included a collection of base salary, additional pay, and certain benefit data. City classifications were either benchmarked or recommended to be internally aligned with other job classifications for compensation.
Gallagher Results
Attached are the final Classification and Total Compensation study reports. It is important to note that the study was completed based on a snapshot in time from May 2025, and does not reflect any new classifications approved by Council since May 2025, including but not limited to positions added in the Fiscal Year 2025-26 budget, or the recent reorganization of Public Works Divisions which may impact proposed changes by Gallagher.
Below are high-level highlights:
• 25 job reclassifications (impacting 34 incumbents/employees)
• 20 new job classifications
• Some recommended job titles will be overridden by the City due to preference in job title (e.g. Utilities, Engineering, and IT Department had certain job title preferences)
• 16 Job Classifications are over the market median for total compensation
• 82 Job Classifications are under the market median for total compensation
• Proposed salary structure of minimum 10% compensation spread between classification levels to address compaction
• Proposed options for implementation including phased implementation approaches for affordability
Mike Harary, Project Manager with Gallagher, is attending the meeting remotely to provide an overview of the study.
Since successor MOU negotiations are underway, the City's goal is to utilize the Gallagher reports as a data reference point and tool to enhance recruitment and retention efforts at the City, while ensuring any successor agreements are affordable and sustainable for the City of Manteca.
We recognize that discussions surrounding classification and compensation are both important and, at times, challenging. As we move through this process and continue our broader contract negotiations, we understand that the outcomes may be received differently across our workforce. While not every change will align with each individual expectation, our commitment remains clear: to approach these decisions thoughtfully, transparently, and with a focus on fairness, equity, and the long-term sustainability of our organization.
City staff extends appreciation to each bargaining unit and their respective members for the time and effort they put into completing Position Description Questionnaires (PDQs), participating in meetings and interviews with Gallagher, and time spent with Human Resources as part of this study.
Fiscal Impact:
There is no direct fiscal impact associated with the recommended action to receive and file the reports. The study itself was completed under an existing professional services agreement previously approved by the City Council.
Implementation of any recommended classification adjustments, compensation changes, or salary structure modifications will be subject to future City Council approval and the outcome of ongoing labor negotiations. Any resulting fiscal impacts will be evaluated and presented at that time, including identification of funding sources and potential impacts to the General Fund and other affected funds.
At this time, the reports serve as an informational and planning tool to support recruitment, retention, and long-term financial sustainability.
Documents Attached:
1. Attachment 1 - Manteca 2026 Final Classification Study Report
2. Attachment 2 - Manteca 2026 Final Total Compensation Study Report
3. Attachment 3 - PowerPoint Presentation