Study spurs city of Santa Fe to consider raising workers' pay

Mar. 1—Santa Fe officials say they hope a proposed change to the city's pay plan for employees will help boost recruitment and retention, a perennial problem in recent years.

Mayor Alan Webber introduced a resolution Wednesday to update the pay schedule, increasing the minimum, midpoint and maximum pay for workers at each classification. The plan also considers the length of time employees have been with the city and in their roles when considering compensation, which Webber described in an interview as a "hybrid parity plan."

The pay plan would increase the city's entry level pay to $16.47 an hour — almost $2 higher than the new mandated minimum wage for all employers in Santa Fe.

The City Council in December received the results of a class and compensation study that found the city's pay range is about 20% below the market average and recommended an overhaul.

"The purpose behind it all is to continue to work on making sure that the city pays people what they're worth, competes in the marketplace for talented employees and gives people who worked for the city a career ladder," Webber said.

The resolution is scheduled to be reviewed by all three City Council committees before facing a final vote March 13. The pay increases would need to be approved by unions that represent city workers, including police and fire personnel, before taking effect.

Webber said he hopes that will happen by this fiscal year's fourth quarter.

The consultant that conducted the study, Evergreen Solutions LLC, reached out to the state and nearby local governments for pay data as well as cities it deemed comparable to Santa Fe, including Boulder, Colo.; Austin, Texas; Reno, Nev.; Flagstaff, Ariz.; and Provo, Utah, the mayor said.

If the resolution is approved by the council and the union, it will immediately increase the minimum pay for 56 nonunion and 474 union employees.

Several councilors said they needed more time to dig into the details of the proposal but were cautiously optimistic.

"My hopes are that this will provide for an equitable compensation plan all the way from our frontline employees to upper management," said Councilor Michael Garcia, noting he plans to meet with Human Resources Director Bernadette Salazar to talk about the proposal.

Councilor Jamie Cassutt said supporting city employees is her biggest priority for the upcoming budget year.

Councilor Alma Castro — who said after her election victory in November she viewed her role on the council as an advocate for city workers — said her focus will be the proposed pay plan's effect on entry-level workers.

"I'm hoping that this is going to help us recruit new folks rather than just incentivize folks who are already here to stay," she said.

Councilors said nonfinancial incentives are important as well, with Cassutt noting the city has a generous benefits package, and she wants to be sure it stays that way. Garcia said employees need to have opportunities for career growth and advancement.

The city pays 76% of the premiums for health and dental insurance, which Webber said is not changing.

The city is in many instances competing for employees with other nearby entities, including Santa Fe County, various state agencies, Los Alamos County and Los Alamos National Laboratory.

"It's a very competitive market right now," Garcia said.

The region's 800-pound-gorilla is LANL, which outpays virtually all surrounding employers.

"They compensate much higher than we ever could," Cassutt said.

She said it's important to look at other things that make the city an attractive employer, such as a shorter commute or more work-from-home options. Many people who work in local government are "mission-driven," which she said is important for the city to recognize and value.

Louis Demella, vice president of the American Federation of State, County and Municipal Employees Local 3999, which represents more than 600 city workers, said the union expects to get clearer details from the city during negotiations. He added he has questions about the "hybrid parity" plan, which he said appears designed to push most people toward the midpoint of their classification's pay range.

The union's position is that as workers accrue years with the city, they should move closer to the midpoint in pay, and by retirement age they should be at or near the maximum, he said.

He also questioned whether the pay increases for the lowest-paid employees would move the needle.

Demella said minimum pay of $16.47 an hour is still far from adequate to draw people to the city.

"No one is going to jump over to the city for $16.47 an hour to be a custodian when they can do that same work in the private sector for 20 bucks," he said.

The city's lower-paid positions, including park workers and bus drivers, have been some of the hardest to fill. A report for July showed the Public Works Department with a vacancy rate of 34% and half of transit positions vacant.

City representatives did not respond to repeated requests for more current staff vacancy reports, such as those for January or February.

It's unclear why the city refused to provide more recent data. City senior adviser Bernie Toon, who has been serving as the city's spokesman following the abrupt resignation of the communications director in December, said he was not authorized to comment. City Manager John Blair was on personal leave for the week and did not comment.

Demella said vacancies for some departments remain high, which shows a need for higher pay.

"What we get for our people directly affects the public," he said.