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HomeMy WebLinkAbout10/11/1988, 3 - APPOINTED OFFICIALS EVALUATION MEETING AGENDA DATE oar 'I ITEM # To: Council Colleagues From: Fenny Q �L Re: Appointed Officials Evaluation I suggested that we discuss a process for our evaluation. The memo of 10/26/87 was a beginning'. but the Council never followed thru. I would like to suggest we formalize our process in a resolution to then be included in our Council Policies and Procedures book: (Section 2) . EVALUATION PROCESS - Closed Session MID YEAR INFORMAL REVIEW January -General discussion between Council and appointed employee. Update on any specific goals or immediate concerns. ANNUAL EVALUATION August -- September < Council to receive written report from appointed official 1 . Job description 2. Report Goals and Objectives from prior evaluation 3. Current activities 4. Evaluation form (Personnel Director supply) Short council only discussion on report Question/answer session with employee. Collective or individual comments. Review future Goals and objectives Council only consensus and evaluation for ranking purposes. These suggestions are for discussion purposes only. In order for the Council to feel comfortable with the process, maybe establishing a procedure will help . cc: John Roger Pam RECEIVE ® OCT 11 1 IM cr"C" BANLUISCHs PO.CA CcasE' N"iEETII`.�G AGENDA,�,E,s�o ���I�111��IIII���IIIIIIIIII � DATE gel „ 88 I i EM # City0 SAn W 1S OBISPO 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100 (805) 549-7140 October 5, 1988 MEMORANDUM To: Honorable Mayor and Councilmembers From: Roger Picquet, City Attorney Subject: Compensation Setting Process for Chief Administrative Officer, City Clerk, City Attorney John has asked that I provide you with a brief review of the law regarding process for the setting of compensation for appointed and a joint recom- mendation for the present. Up through 1983 compensation for the three appointed officials was handled in a routine closed session, usually in connection with the annual or mid-year performance review. In late 1983, the California appellate Court held that, although performance evaluations were clearly proper for closed session, salary or compensation setting was a matter for open session (San Diego Union v. City of San Diego (1983) 196 Cal . -Rptr. 45) . After a subsequent stab at legislative relief, the League of California Cities basically abandoned any state-wide effort to change that case. Individual cities have developed creative approaches in bringing this matter into closed session. Council has used a sub-committee process since 1984, but that method has not proven entirely satisfactory. Several years ago I advised that Council may revert to closed sessions to handle this subject. You have received John's memo of September 29. 1988, on merit pay and relevant guidelines. The three of us may choose to communicate to Council by memo any individual requests or concerns and then Council could consider all relevant factors in closed session. All three of us recommend this procedure for the October 11 , 1988 Council meeting. Given the fact that the performance evaluation has already been conducted, it is not anticipated that these items will take any signifi- cant amount of time. RP:cac cc : Chief Administrative Officer - " MEETING `r AGENDA� o cityDATE °�" adiTt�� #O sAn loll S spo"5 °' 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 �.— September 29, 1988 MEMORANDUM To: City Council From: John Du Subject: Reque f merit pay program for appointed officials After the performance reviews on Monday, Mayor Dunin asked that I develop a merit pay program for the appointed officials. To oversimplify a bit, our present pay program is a combination of "Cost-of-living adjustment" and "merit pay. " Pay adjustment is based on performance review within salary ranges and percentage guidelines. The present salary adjustment method effectively builds the salary increase into the new base. The Council has previously used "bonus pay, " a one-time bonus which is above the merit pay and which does not become part of the base pay. Bonus pay might be given for meeting special challenges of the past year, for performing above expectations generally or on a number of special assignments, or under particularly difficult circumstances (or for whatever other reasons are chosen by the Council ) . My recommendation to you, then, would be that you make a fair determination on merit pay, as this gets built into the permanent pay for the position, but that you additionally consider a one-time bonus for the appointed official(s) when this is deemed appropriate. Based on recent experience and practice, the merit pay increase could be in the 4-7% range, or as a guideline: Below Meets Exceeds Outstanding Standards Standards Standards 2-4% 4-6`k 5-7% 6-8% Attached are selected policy documents which the City Council has previously approved. Ideas for the one-time bonus pay are: 1 . Cash bonus A. As percentage of salary ( 1-3% suggested) B. As specified amount ($500 to $1200 suggested - amounts below or above could also be selected) Note: Once given as cash, the amount is taxable as regular income 2. Deferred compensation bonus (through City' s deferred compensation programs) : A. As percentage of salary (above) B. As specified amount (above) Note: Appointed official would be asked to specify program and options; this form of Compensation is not taxable until the money is later taken out of the system. Federal law limits total deferred compensation annually. 3. Retirement enhancements. It is best to either: A. Use City's deferred compensation program for this purpose B. If something other is desired, work with the appointed official , and obtain assistance of City Administrative Officer/Personnel Director 4. Other benefit changes: A. Generally. it is best to avoid making special provisions to the established management benefits program B. However, if that is desired, it is best to work with and through the City Administrative Officer/Personnel Director to make such charges compatible with the established management benefits program. The above has been reviewed by the Personnel Director, City Clerk, and City Attorney: they concur with it. The above thoughts and suggestions are based on an assumption , that the present pay levels and ranges for the positions are equitable. There is the possibility that the future management pay analysis may reveal inequities needing to be addressed, which would be outside the scope of these suggestions. If I may be of further assistance to you on this matter. I shall do so immediately upon request. JD:mp Attachments c. City Attorney City Clerk Several documents presently exist which may assist the Council in determining compensation: 1 . Resolution 6169 establishes the basis for compensation (Section 1) , lists criteria for setting salary (Section 2) and authorizes one-time performance awards (Section 4) . 2. Resolution 6500 amends the salary schedule (Section 1 ) and authorizes up to 6% total salary increases for the three positions with specific increases to be determined by the Council . 3. 1987 memo on Evaluation and Compensation which describes the process and schedule for evaluating appointed officials and assigns compensation. 4. Resolution 6121 describes how the City Administrative Officer is to evaluate management groups and assign compensation (Section 2, 3 and 6) . RESOLUTION NO. 6169 (1987 SERIES) FEB 2 5 10— I. A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING AN APPOINTED OFFICIALS COMPENSATION PLAN FOR CERTAIN MANAGEMENT PERSONNEL AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City Council is desirous of establishing a comprehensive Appointed Officials Development and Compensation policy; and WHEREAS, the Council is committed to a compensation policy that strengthens the recruitment and retention of well-qualified and effective appointed officials; and WHEREAS, the Council is desirous of maintaining an appointed Officials compensation plan which is consistent with other City compensation plans; and WHEREAS, the Council is committed to a compensation plan which reflects the differences between duties, responsibilities and job requirements; and WHEREAS, Council determines that merit and performance shall be the basis for Appointed Officials compensation. NOW. THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. An Appointed Officials salary plan is an important component of a comprehensive compensation policy. In order to remain competitive with the professional marketplace and promote merit and I performance as the criteria for individual salary determinations, the following open-range Appointed Officials Salary Schedule (Table "A") for fiscal years 1986-88 is authorized. Subsequent changes in any group salary range shall be authorized by Council resolution. I I I Resolution No. 61.69 (1987 Series) Page 2 TABLE "A" APPOINTED OFFICIALS SALARY SCHEDULE - FISCAL YEAR 1986-1988 Group Appointed Official Positions Salary Range I City Administrative Officer 54,900 - 6,200 II City Attorney $4,400 - 5,600 III City Clerk $2,900 - 4.000 Section 2. For individuals in Appointed Officials Groups I through III, the City Council shall determine compensation, including salary within the designated ranges, after evaluating performance, the management _profession,__and Punditconstraints. Section 3. The City Council shall adopt individual employment agreements for appointed officials in Groups I through III. Section 4. The City Council is authorized to grant one-time Performance Awards to employees in groups I through III for either exceptional specific performance or sustained outstanding performance. Section S. The appointed official benefits attached hereto as Exhibit "A" shall continue during fiscal years 1986-88. The City shall contribute.a-maximum..oL..i268.30 per....month_for -the_-■edicaL- dentaL. .and _ -.-.-.--.----.- -vision coverage.- The Management -Life- Insurance -and-Long-Term-D-isabii=i-Ey - insurance shall continue to be directly funded by the City. Section 6. The City Council shall be authorized to approve annual salary adjustments to employees in groups I through III for fiscal year 86/87 commencing July 1, 1986 and January 1. 1987 and for fiscal year 87/88 commencing July 1, 1987 and January 1 . 1988 consistent with Resolution No. 6169 Page 3 (1987 Series) performance, market considerations and adjustments granted other employee groups, within total funding parameters authorized by the City Council. Council review for fiscal year 87/88 adjustments shall be completed by September 1. 1987. Section 7. City Council authorizes the City Administrative Officer to approve one-time compensation awards to all Management Team members, including appointed officials, effective July 1. 1987, if all Management Team goals are completed or are on schedule. Such awards shall be contributions to either of the deferred compensation plans. Total funding available for such awards shall not exceed 1% of the total compensation of - - ---the—Management Team. e w I1 inform the Council when such awards are granted. On motion of Councilwoman Rappa , seconded by Councilman Settle and on the following roll call vote: AYES: Councilmembers Rappa, Settle and Dovey NOES: Mayor Pro-Tem Griffin ABSENT: Mayor Ron Dunin the foregoing Resolution was passed and adopted this 17th day of February, I987: MAYOR PRO-TEqROBER G FFIN ATTES CITY LERK PAMELA VOG I Resolution No. 6169 (1987 Series) Page 4 APPROVED: City 4Adm strati Officer City Att ey Finance Dire or Personnel_ Dicectar EXHIBIT "A" APPOINTED OFFICIAL FRINGE BENEFITS 1986-88 SECTION A Medical , Dental Eve Care The City shall establish and maintain medical, dental and eye care insurance plans for coverage by appointed officials and their dependents. Each appointed official shall carry medical , eye care, and dental for self. Dependent coverage shall be at the employee's option; however, all eligible dependents must be covered, and covered on all plans, if dependent coverage is desired. The City reserves the right to choose the method of insuring and plans to be offered. SECTION B Unexpended Prinee Benefit The city shall pay to each appointed official an annual lump sum payment (subject to appropriate taxation) for the difference between the benefit amounts provided appointed officials and any lesser sum expended by the employee for medical, eye care, and dental coverage for the calendar year. Payment shall be made at same time as all City employees. SECTION C Life and Disability The city shall provide the following special insurance benefits: 1. Long-term disability insurance providing 60% of gross salary to age 65 for any sickness or accident after a 90-day waiting period. 2. $50,000 term life insurance including accidental death and dismemberment. 3. One-half of employee's health insurance premium paid for retired appointed official who elects to remain as a member of the city's group health plan. (Medical Plan) SECTION D Retirement --The City agrees to provide the Public Employees' Retirement System's 2% at age 60 plan. to all .eligible-.appointed -off-icials, -including-the amendment permitting conversion of unused sick leave to additional retirement credit, the 1959 survivor's benefit and one year final compensation. Effective 7-1-81 the city agrees to pay the appointed officials' contributions to P.E.R.S. These amounts paid by the city are employee contributions and are paid by the city to satisfy the employee's obligation to contribute the current percentage of salary to P.E.R.S. An appointed official has no option to receive the contributed amounts directly (as opposed to having them paid by the city to P.E.R.S. on behalf of the employee) . It is further understood and agreed that the payment of the employee's P.E.R.S. contribution is made subject to I .R.S. approval and reporting procedures. SECTION E Vacation Vacation leave for appointed officials shall be 15 days per year and may be taken after the completion of the sixth calendar month of service with the city. Vacation leave shall be accrued at the rate of eighteen days per year upon completion of five years of continuous service and twenty vacation days upon completion of ten years. Appointed officials shall use every effort in scheduling vacation leave so as to minimize adverse impacts on city administrative functions. Vacation leave shall be accrued as earned each payroll period up to a maximum of twice the annual accrual rate. However, if the City Council determines that an appointed official has been unable to take vacation, due to the press of city business, the Council may increase the accrual limits, or once annually may authorize payment for one-half of the excess accumulation up to a maximum of five (5) days. SECTION F Administrative Leave Appointed officials shall accrue eight (8) days (64 hours) of executive leave per calendar year: This leave shall accrue at the rate of 5.333 hours per month. Commencing January 1, 1987 appointed officials shall have the option of taking such leave as additional paid leave or receiving cash for up to 64 hours at y armed,-Upon--the-approval -of'the - -- - y" ounce . SECTION G Holidays year.Appointed officials shall receive 10 fixed + 2 floating holidays per SECTION H Sick Leave Sick leave is governed by Section 2.36.420 of the Municipal Code. An appointed official may take up to two (2) days per year of sick leave if required to be away from the job to personally care for a member of his/her immediate family as. defined in Section 2.36.420. This may be extended to five (5) days per year if the family member is part of the employee's household, and to seven (7) days if a household family member is hospitalized and the empl.oyee_ submits written ..verification -of such hospitalization. Upon ter�ainatlQp."of-.employment-by-death or retirement, a percentage —. -- of the dollar value of the employee's accumulated sick leave will be paid to the employee, or the designated beneficiary or beneficiaries according to the following schedule: (A) Death - 25% (8) Retirement and actual commencement of PERS benefits: (1) After ten (10) years of continuous employment - 10% (2) After twenty (20) years of continuous employment - 15% SECTION I Workers' Compensation Leave An appointed official who is absent fro■ duty because of on-the-job " injury 1n accordance with the state workers' compensation law and 1s not eligible for disability payments under labor Code Section 4850 shall be paid the difference between the employee's base salary and the amount provided by workers' compensation law during the first ninety (90) business days of such temporary disability absence. Eligibility for workers' compensation leave requires an open workers' compensation claim. I SEP 2 8 1988 RESOLUTION 110. 6500 (1988 SERIES) A RESOLUTION OF THE CLOUNCIL OF THE CITY OF SRN LUIS OBISPO AMENDING RESOLUTION NO. 6169 BY ADJUSTING THE SALARY RANGES, SALARIES AND REALM BENEFIT FUNDING OF CERTAIN APPOINTED OFFICIALS BE IT RESOLVED by the council of the City of San Luis Obispo as follows: Section 1. The following open-range Appointed Officials Salary Schedule (Table "A") for fiscal year 1938-89 is authorized. TABLE "All APPOINTED OFFICIALS SALARY SCHELx1LE - FISCAL YEAR 1988-1989 Group Appointed Official Positions Salary Range 1988/89 I City Administrative Officer 5,194 - 6,572 II City Attorney 4,664 - 5,936 III City Clerk 3,074 - 4,240 Section 5. ADD: Effective December 1, 1988, the City shall contribute $300.00 a month for medical, dental and vision arra life coverage- Section.-6--ADD: Total salary increases for all employees in-groups I through III c=menoing July 1, 1988 shall not exceed 6% of current compensation for the group of positions, with specific increases for individual positions to be determined by the City Council. R6500 Resolution No. 050u (1988 Series) Page 2 On motion of Councilman Se[ L1c seconded by CuunciIwoman Kappa , and on the following roll call vote: AYES: CounciLmembers SeLLle , Kappa , Kinard , Reiss ancl ,PIayor Dunin NOES: None ABSFNr: None the foregoing Resolution was passed and adopted this 20th day of September, 1988. Mayor Ron Dunin AT=: City Jerk, Pamela V « « « « « « « « « « APPROVED: d City ' istrative Officer City A ey Finanoe Director Personnel Director ►viii►� i'�ilii;piu�i��►�i lilll C tof sAn l is oBispo i �� JS=fie' h 99;fs�;i,; 1N;i'r.'it �11 i;qk j I• 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403 8100 October 26, 1987 MEMORANDUM TO: City Council FROM: John Dunn Roger P c: Pam V SUBJECT: Evaluat on and Compensation Procedures and Process The following outlines a draft Appointed Officials Evaluation and , Compensation process. We suggest the Council consider this as a guideline document for reviewing performance and compensation. This is presented for your review and comment. We are available to meet at your convenience. There are two issues to be resolved by the Council: 1) Evaluation of Appointed Officials, and 2) the Compensation Process. Appointed Officials Evaluation Pursuant to our respective agreements, two performance reviews will be conducted annually for each appointed official . This process is outlined as follows: The first review will be the Annual Evaluation and will be considered the primary evaluation. It would be held following the budget process in approximately July or August but no later than September 30 of each year (this year is obviously an exception) . This will be held in Closed Session between the full Council and the individual appointed official . The Council will be provided with an Evaluation form. The appointed official will also provide a written report providing a status update of his/her goals and objectives and other supplemental comments to assist the official's performance review. The mid-year review should be held in January each year but no later than March. This review will not normally be to the same depth as the Annual Evaluation. It can take the form of a Council-Appointed Team Building, session, review of specific performance concerns, and/or review of supplementary information since the primary review. A more extensive team building/organizational development program is planned for January or February of 1988. Issues may be identified, agreed upon and incorporated into the program. Evaluation and Compensation Procedures and Process October 26, 1987 Page 2 Compensation Process This should be held in conjunction with the annual evaluation process, no later than September 30 each year (again, this year is an exception) . The ability to meet in closed session with an individual appointed official is still a gray area. However, until such time that the courts clarify the law in this area. closed session is the preferred means by which compensation should be reviewed. Compensation adjustments will be made in accordance with: 1) Resolution No. 6169, the Comprehensive Appointed/Management Plan; 2) individual appointed officials employment agreements; and 3) the recently adopted Human Resource Policy Statement. The Appointed Official may also recommend adjustments or amendments to his/her agreement or compensation package. In addition, consistent with scheduled compensation reviews for Management Team members, the City Administrative Officer shall review and recommend appropriate salary ranges for Apponted Officials in accordance with professional compensation principles. For purposes of making compensation adjustments, the Council may consider: 1. Salary adjustment within previously adopted salary range consistent with performance, market considerations and adjustments granted other employee groups. 2. One-time Performance Award for either exceptional specific performance or sustained outstanding performance. 3. Any other amendment to the adopted Management Fringe Benefit package deemed appropriate. PV/skj CLERKIA/evaluation RESOLUTION NO. 6121 (1986 SERIES) I A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ESTABLISHING A MANAGERIAL COMPENSATION PLAN FOR CERTAIN MANAGEMENT PERSONNEL AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City Council is desirous of establishing a comprehensive Management Development and Compensation policy; and WHEREAS, the Council is committed to a compensation policy that strengthens the recruitment and retention of well-qualified and effective managerial staff; and WHEREAS, the Council is desirous of maintaining a management ----compensa-ti-on--plan -whichis consistent with other City compensation plans; and WHEREAS, the Council is committed to a compensation plan which reflects the differences between duties, responsibilities and job requirements; and i WHEREAS, Council determines that merit and performance shall be the basis for managerial compensation; and WHEREAS, Council recognizes that under Section 701 of the City __. ..- Charter -the selection, development, evaluation and level Of com —satiOn of certain individual departmental managers and immediate management staff is the responsibility of the City Administrative Officer. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows : R 612.1 Resolution No. 6121 Page 2 (1986 Series) Section 1. A managerial salary plan is an important component of a comprehensive compensation policy. In order to competitive with the remain professional marketplace and promote merit and performance as the criteria for individual salary determinations, the ' following open-range g Management Salary Schedule (Table "All) for fiscal years 1986-87 and 1987-88 are authorized. Subsequent changes in any group salary range shall be authorized by Council resolution. TABLE "Alf MANAGEMENT SALARY SCHEDULE Mort. - FISCAL YEAR 1986-1988 Management Position Salary Range A 1986/87 1987/88 Public Works Director Community Development4 . 000-4, 700 4 400- i Assistant CAO Dir. 5, 200 Fire Chief Police Chief B City Engineer Utilities Manager 3 . 600-4, 300 Finance Director 3 , 900-4, 700 C Personnel Director Recreation Director 3 , 200-3 , 900 3 , 400-4 , City Attorney 2 E Assistant Cit Assistant to the CAO , 900-3X600 3 , 400-41000 2 , 200-2 , 900 2 , 400-3 , 200 Section 2 . The ' City Administrative Officer is responsible for and shall be held accountable to the evaluation of council for the performance and subordinate management staff. The City Administrative Officer shall evaluate and determine individual levels of salary for Resolution No. 6121 Page 3 (1986 Series) Positions within management groups A through E in accordance with professional compensation principles. Such determinations shall reflect merit and performance as the standard and basis for managerial compensation. Such determinations shall be within the respective monthly salary ranges specified in Section I and may include increases, no change or decreases in salary levels within the designated range. Further, the City Administrative Officer is authorized_ to..implemen.t_-se-lar - y level determinaCtions by phases during a fiscal year. Section 3 . The salary determination within the approved range for management employees in ranges A through £ who report to other management employees shall be jointly determined by the supervising manager and the City Administrative Officer. The Assistant City Attorney shall be evaluated .by the City Attorney. Salary determinations for the Assistant City Attorney shall be approved by the City Administrative Officer and be consistent with compensation determinations for other managerial employees. Section 4 . The City Administrative Officer is authorized to i grant one-time Performance Awards of $250-$750 to employees in ranges A through E for either exceptional specific performance or sustained outstanding performance. i I. Resolution No. 6121 Page 4 (1986 Series) Section 5 . The management fringe benefits attached hereto as i Exhibit "A" shall continue during fiscal years 1986-88 . The City shall contribute a maximum of $268. 30 per month for the medical, dental, and vision coverage. The Management Life Insurance and Long-Term Disability insurance shall continue to be directly funded by the City. Managerial employees working less than full time shall have all benefits and fringes pro rata. Section 6 . The City Administrative Officer shall be authorized to approve annual salary adjustments to employees in salary groups A through E for fiscal year 86/87 commencing July 1, 1986 and January 1, 1987 and for fiscal year 87/88 commencing July 1, 1987 and January 1, 1988 consistent with performance, market considerations and adjustments granted other employee groups, within total funding parameters authorized by City Council. Section 7. The total annual cost for salary and one time award changes for employees in Groups A through E for fiscal years 86/87 and 87/88 shall not exceed 6. 5.% of total compensation for all Positions for the previous fiscal year. ection '8 City Council authorizes the CAO to approve one-time compensation awards to all Management Team members, effective July 1, 19871 if all Management Team goals are completed or are on schedule. Such awards shall be contributions to either of the deferred compensation plans . Total funding available for such awards shall not exceed 1% of the total compensation of the Management Team. Resolution No. 6121 Page 5 (1986 Series) On motion of Councilwoman Dovev seconded. by Councilwoman Rappa and on the following roll call vote: / AYES: Councilmembers Dovey, Rappa, Griffin, Settle and Mayor Dunin NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 18th day of November, 1986. ATTEST: City lerk Pamela o es Resolution No. 6121 (1986 Series) Page 6 APPROVED: City Adnunistrative dffic City At rney Finance Direr r Personnel Director