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HomeMy WebLinkAbout04/04/2006, C5 - MANAGEMENT EMPLOYEES' (INCLUDING APPOINTED OFFICIALS') COMPENSATION council D� b(a agcnba Report lu." k. cs CITY OF SAN LUIS OBISPO FROM: Monica Irons, Director of Human Resources SUBJECT: MANAGEMENT EMPLOYEES' (INCLUDING APPOINTED OFFICIALS') COMPENSATION CAO RECOMMENDATION Adopt a resolution approving management compensation through December 31, 2006. DISCUSSION The current management compensation package and Pay for Performance System was extended by resolution through December 31, 2005. A Management Compensation Committee was formed in January 2006 to propose overall adjustments to management compensation. The committee received parameters from Council that are in line with bargaining groups currently in negotiations. Based upon the committee's input, staff is recommending the following action apply to all management and department heads during the calendar year 2006. (1) A Cost of Living Adjustment (COLA) of 2%effective January 12, 2006. (2) A Cost of Living Adjustment (COLA) of 2%effective July 13, 2006. (3) A$25 increase in the cafeteria contribution to $635 per month effective April 6, 2006. Cost of Living Increase A cost of living increase adjusts salary ranges and maintains an individual's position within the range. These adjustments are necessary to keep wages abreast with changes in the economy. The Consumer Price Index (CPI) for the Western United States increased 3.6% from January 2005 to February 2006. The increase was due primarily to higher prices in the transportation and housing indices, which rose 1% and .3%, respectively. The proposed cost of living increase is modest in light of a median home sales price, as of January 2006, of approximately $550,000 in San Luis Obispo County. The proposed cost of living increase does not address what may be a larger issue: wage competitiveness. The City produced a report in January 2006 titled "Measuring Our Performance". This report compared the City's financial performance and service levels to eight "like" cities. The analysis also included a comparison of wages for ten benchmark positions which indicated the City's salary ranges may be lower than average. A more comprehensive study, planned for 2006, is necessary to "size" the issue and base future compensation recommendations. D Management Employees' Compensation Page 2 Pay for Performance System The Management Pay for Performance System was developed and adopted by Council in 1996. The system was designed to recognize and reward excellent performance by management employees and to provide an incentive for continuous improvement and sustained high performance. Based on performance evaluation ratings, an employee may be eligible for a pay for performance increase between 0% and 5% that moves an individual's salary within a salary range. The system includes a feature that provides the recommended performance increase to be converted to a lump sum if an employee is at the top of a salary range. This feature has been suspended for the past two years and will be suspended again during 2006. Suspension of this feature affects 60% of the managers and therefore, staff recommends evaluating the effectiveness of the overall pay for performance system in 2006. Cafeteria Contribution Staff recommends increasing the cafeteria contribution from $610 to $635 per month effective April 6, 2006 for all management employees. This increase in cafeteria contribution meets some of the priorities of the management group as well as keeps the contribution comparable to other associations within the City. FISCAL IMPACT The proposed compensation package is within the Council parameter. The total annual compensation for the management group is $8,451,200. The cost of the program as outlined above is approximately $254,000. Funding for the package has been set aside and is available as part of the current two-year financial plan. ATTACHMENT 1. Resolution with Exhibit"A" Salary Schedule and Exhibit`B"Fringe Benefits ;t s G:\agenda reports\2006 Management Employees'Compensation.DOC C J� �`-� D Attachment 1 Page 1 of 2 RESOLUTION NO. (2006 Series) A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO REVISING MANAGEMENT COMPENSATION AND THE PAY FOR PERFORMANCE SYSTEM FOR APPOINTED OFFICIALS AND MANAGEMENT PERSONNEL SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City Council is committed to a comprehensive policy that strengthens the recruitment and retention of well qualified and effective appointed officials and management personnel; and WHEREAS, in 1996 the City Council established the Management Pay for Performance System,which has included periodic reviews and updates; WHEREAS, the City Council wishes to provide an appropriate compensation package for its management personnel; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby revises management compensation and Management Pay for Performance System as follows: SECTION 1. The management compensation package and the Management Pay for Performance System will continue for a one-year term commencing January 1, 2006. SECTION 2. The City agrees to increase the salaries of management employees with a 2% cost of living adjustment (COLA) effective January 12, 2006 and a 2% COLA effective July 131 2006 and to adjust management salary ranges accordingly as shown in Exhibit"A". SECTION 3. The City agrees to increase the cafeteria contribution to $635 per month effective April 6,2006. SECTION 4: The Pay for Performance feature providing lump sum payments continues to be suspended for those employees at the top of their salary range. SECTION 5. The City shall continue to provide employees in those classifications listed in Exhibit"A"certain fringe benefits as set forth in Exhibit`B", fully incorporated by reference. SECTION 6. The Director of Finance and Information Technology shall adjust the appropriate accounts to reflect the compensation changes. AI Attachment I Page 2 of 2 Resolution No. (2006 Series) Upon motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of , 2006. ATTEST: Audrey Hooper, City Clerk Mayor David F. Romero APPROVED AS TO FORM: City'Aw6ey Jonathan Lowell G:RESOLUTIONS AND ORDINANCES\ManagementComp2006.DOC D Attachment 1 EXHIBIT"A" Page 1 of 4 APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE Effective January 12,2006 Exhibit "A" Salary Group Position Title Range Low Range High I City Administrative Officer $9,693 $12,117 II City Attorney $8,851 $11,061 III-A Police Chief $8,095 $10,122 III Assistant City Administrative Officer $8,009 $10,014 III Director of Finance and Information Technology $8,009 $10,014 III Fire Chief $8,009 $10,014 III Public Works Director $8,009 $10,014 IV Director of Community Development $7,638 $9,549 IV Utilities Director $7,638 $9,549 V Director of Human Resources $7,231 $9,041 V Parks and Recreation Director $7,231 $9,041 VI Deputy Director of PW/City Engineer $6,650 $8,312 VII Assistant City Attorney $6,332 $7,914 VII City Clerk $6,332 $7,914 VII Deputy Director of CD-Development Review $6,332 $7,914 VII Deputy Director of CD-Long Range Planning $6,332 $7,914 VII Deputy Director of Utilities/Wastewater $6,332 $7,914 VII Deputy Director of Utilities/Water $6,332 $7,914 VII Deputy Public Works Director $6,332 $7,914 VII Finance Manager $6,332 $7,914 VII Information Technology Manager $6,332 $7,914 VIII Chief Building Official $5,671 $7,087 VIII City Traffic Engineer $5,671 $7,087 VIII Economic Development Manager $5,671 $7,087 VIII Natural Resources Manager $5,671 $7,087 IX Construction Eng Manager $5,434 $6,789 IX Fire Marshall $5,434 $6,789 IX Supervising Civil Engineer $5,434 $6,789 IX Telecommunications Supervisor $5,434 $6,789 X Neighborhood Services Manager $5,083 $6,354 X Parking Manager $5,083 $6,354 X Principal Administrative Analyst $5,083 $6,354 X Principal Civil Engineer $5,083 $6,354 X Principal Transportation Planner $5,083 $6,354 X Public Works Administrative Services Manager $5,083 $6,354 X Recreation Manager $5,083 $6,354 X Risk Manager $5,083 $6,354- X Transit Manager $5,083 $6,3354 G:\agenda reports\Mgtranges2006 1 ^\ Attachment 1 EXHIBIT"A" Page 2 of 4 APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE Effective January 12,2006 Exhibit"A" Salary Group Position Title Range Low Range High X Utilities Engineer $5,083 $6,354 X Water Projects Manager $5,083 $6,354 X Water Treatment Plant Supervisor $5,083 $6,354 X WRF Plant Supervisor $5,083 $6,354 XI Accounting Supervisor $4,793 $5,994 XI Customer Services Supervisor $4,793 $5,994 XI GIS Supervior $4,793 $5,994 XI Human Resources Analyst II $4,793 $5,994 XI Industrial Waste Coordinator $4,793 $5,994 XI Senior Administrative Analyst $4,793 $5,994 XI Senior Planner $4,793 $5,994 XI Utilities Conservation Coordinator $4,793 $5,994 XI Wastewater Collection.Supervisor $4,793 $5,994 XI Water Distribution Supervisor $4,793 $5,994 XI Water Supply Supervisor $4,793 $5,994 XII Facilities Maintenance Supervisor $4,424 $5,529 XII Fleet Maintenance Supervisor $4,424 $5,529 XII Golf Course Supervisor $4,424 $5,529 XII Human Resources Analyst I $4,424 $5;529 XII Parks and Urban Forest Supervisor $4,424 $5,529 XII Program and Project Coordinator $4,424 $5,529 XII Recreation Supervisor $4,424 $5,529 XII Streets Maintenance Supervisor $4,424 $5,529 XIII Administrative Analyst II $4,228 $5,284 XIV Administrative Analyst I $3,843 $4,800 XIV Ranger Services Administrator $3,843 $4,800 G:lagenda reportsNgtranges2006 (, C:� Attachment 1 EXHIBIT"A" Page 3 of 4 APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE Effective July 13,2006 Exhibit"A" Salary Group Position Title Range Low Range High I City Administrative Officer $9,888 $12,361 II City Attorney $9,028 $11,282 III-A Police Chief $8,257 $10,325 III Assistant City Administrative Officer $8,168 $10,215 III Director of Finance and Information Technology $8,168 $10,215 III Fire Chief $8,168 $10,215 III Public Works Director $8,168 $10,215 IV Director of Community Development $7,790 $9,739 IV Utilities Director $7,790 $9,739 V Director of Human Resources $7,375 $9,222 V Parks and Recreation Director $7,375 $9,222 VI Deputy Director of PW/City Engineer $6,782 $8,478 VII Assistant City Attorney $6,458 $8,073 VII City Clerk $6,458 $8,073 VII Deputy Director of CD-Development Review $6,458 $8,073 VII Deputy Director of CD-Long Range Planning $6,458 $8,073 VII Deputy Director of Utilities/Wastewater $6,458 $8,073 VII Deputy Director of Utilities/Water $6,458 $8,073 VII Deputy Public Works Director $6,458 $8,073 VII Finance Manager $6,458 $8,073 VII Information Technology Manager $6,458 $8,073 VIII Chief Building Official $5,784 $7,229 VIII City Traffic Engineer $5,784 $7,229 VIII Economic Development Manager $5,784 $7,229 VIII Natural Resources Manager $5,784 $7,229 IX Construction Eng Manager $5,543 $6,924 DC Fire Marshall $5,543 $6,924 IX Supervising Civil Engineer $5,543 $6,924 IX Telecommunications Supervisor $5,543 $6,924 X Neighborhood Services Manager $5,185 $6,482 X Parking Manager $5,185 $6,482 X Principal Administrative Analyst $5,185 $6,482 X Principal Civil Engineer $5,185 $6,482 X Principal Transportation Planner $5,185 $6,482 X Public Works Administrative Services Manager $5,185 $6,482 X Recreation Manager $5,185 $6,482 X Risk Manager $5,185 $6,482 X Transit Manager $5,185 $6,482 GAagenda reports\Mgtranges2006 G -- C Attachment I EXHIBIT"A" Page 4 of 4 APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE Effective July 13,2006 Exhibit"A" Salary Group Position Title Range Low Range High X Utilities Engineer $5,185 $6,482 X Water Projects Manager $5,185 $6,482 X Water Treatment Plant Supervisor $5,185 $6,482 X WRF Plant Supervisor $5,185 $6,482 XI Accounting Supervisor $4,889 $6,113 XI Customer Services Supervisor $4,889 $6,113 XI GIS Supervior $4,889 $6,113 XI Human Resources Analyst II $4,889 $6,113 XI Industrial Waste Coordinator $4,889 $6,113 XI Senior Administrative Analyst $4,889 $6,113 XI Senior Planner $4,889 $6,113 XI Utilities Conservation Coordinator $4,889 $6,113 XI Wastewater Collection Supervisor $4,889 $6,113 XI Water Distribution Supervisor $4,889 $6,113 XI Water Supply Supervisor $4,889 $6,113 XII Facilities Maintenance Supervisor $4,513 $5,640 XII Fleet Maintenance Supervisor $4,513 $5,640 XII Golf Course Supervisor $4,513 $5,640 XII Human Resources Analyst I $4,513 $5,640 XII Parks and Urban Forest Supervisor $4,513 $5,640 XII Program and Project Coordinator $4,513 $5,640 XII Recreation Supervisor $4,513 $5,640 XII Streets Maintenance Supervisor $4,513 $5,640 XIII Administrative Analyst II $4,312 $5,390 XIV Administrative Analyst I $3,921 $4,895 XIV Ranger Services Administrator $3,921 $4,895 GAagenda reportsNgtranges2006 �-�' Attachment 1 EXHIBIT "B" Page 1 of 5 APPOINTED.OFFICIALS AND MANAGEMENT FRINGE BENEFITS 2006 Section A Medical,Dental, Eve Care The City shall establish and maintain medical, dental and eye care insurance plans for coverage by department head and management employees and their dependents. The City reserves the right to choose the method of insuring and:plans to be offered. The City has elected to participate in the CalPERS Health Benefit Program with the"unequal contribution option"at the PERS minimum contribution rate, currently$64.60 per month for active employees and $16.26 per month for retirees. The City's contribution toward retirees shall be increased by 5%per year of the City's contribution for the active employees until such time as contributions for employees and retirees are equal. Employees with proof of medical insurance elsewhere are not required to participate in the medical insurance plan and may receive the unused portion of the City's contribution(after dental and vision insurance is deducted) in cash in accordance with the City's cafeteria plan. Those employees will be assessed $16.00 per month to be placed in the Retiree Health Insurance Account. This account will be used to fund the City's contribution toward retiree premiums and the City's costs for the Public Employees' Contingency Reserve Fund and Administrative Costs. However, there is no requirement that these funds be used exclusively for this purpose, nor any guarantee that they will be sufficient-to fund retiree health costs, although they will be used for employee benefits. Employees will be required to participate in the City's dental and vision plans at the employee- only rate. Should they elect to cover dependents in the City's dental and vision plans, they may do so, even if they do not have dependent coverage for medical insurance. Employees shall participate in term life insurance of$4,000 through payroll deduction as a part of the cafeteria plan. Section B Cafeteria Plan Contribution The City shall contribute $635 per month for cafeteria plan benefits for each regular, full-time employee covered by this resolution. Less than full-time employees shall receive a prorated share of the City's contribution. The City agrees to continue its contribution to the cafeteria plan for two(2) pay periods in the event that an employee has exhausted all paid time off due to an employee's catastrophic illness. Section C Life and Disability Insurance The City shall provide the following special insurance benefits in recognition of management responsibilities: ex Attachment 1 Resolution No. (2006 Series) EXHIBIT `B" Management Fringe Benefits 2006 Page 2 of 5 1. Long-term disability insurance providing 66 2/3% of gross salary(maximum benefit $5,500 per month) to age 65 for any sickness or accident, subject to the exclusions in the long-term disability policy, after a 30-day waiting period. 2. In addition to $4,000 term life insurance purchased by the employee through the cafeteria plan, $100,000 term life insurance for department heads and$50,000 term life insurance for management employees, including accidental death and dismemberment. Section D Retirement The City shall provide the California Public Employees' Retirement System's (Ca1PERS) 2.7% at 55 plan to all eligible employees including the amendments permitting conversion of unused sick leave to additional retirement credit,the 1959 survivor's benefit (Level Four), one year final compensation, and pre-retirement Option 2 death benefit. The Police and Fire Chiefs shall receive the same retirement benefits as sworn personnel in their departments. The City agrees to pay the employee's contribution to Ca1PERS (8%for miscellaneous, 9% for safety). 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 Ca1PERS. An employee has no option to receive the contributed amounts directly instead of having them paid by the City to Ca1PERS on behalf of the employee. It is further understood and agreed that the payment of the employee's Ca1PERS contribution is made subject to I.R.S. approval and reporting procedures. The City shall report as salary all Employer-Paid Member Contributions (EPMC) to Ca1PERS for the purposes of retirement credit in accordance with Government Code Section 20636 (c) (4). Section E Suoolemental Retirement The City shall contribute 1% of salary for management employees and 2% of salary for department heads to a defined contribution supplemental retirement plan established in accordance with sections 401 (a) and 501 (a) of the Internal Revenue Code of 1986 and California Government Code sections 53215-53224. Section F Vacation Vacation leave is governed by section 2.36.440 of the Municipal Code, except that it may be taken after the completion of the sixth calendar month of service since the benefit date. Vacation leave shall be accrued as earned each payroll period provided that not more than twice the annual rate may be carried over to a new calendar year. G:\agenda reports\MgtComp2006ExhbtB.doc Attachment 1 Resolution No. (2006 Series) EXHIBIT"B" Management Fringe Benefits 2006 Page 3 of 5 However, if the City Administrative Officer determines that a department head has been unable to take vacation due to the press of City business, the City Administrative Officer may approve a two-month extension of maximum vacation accrual. The City Administrative Officer may, within two years of appointing a department head, increase the rate of vacation accrual to a maximum of 120 hours per year. Vacation schedules for management employees shall be based upon the needs of the City and then, insofar as possible,upon the wishes of the employee. A department head may not deny a management employee's vacation request if such denial will result in the loss of vacation accrual by the employee, except that, a department head may approve a two-month extension of maximum vacation accrual. However, in no event shall more than one such extension be granted in any calendar year. Department Head and management employees are eligible, once annually in December, to request payment for up to 40 hours of unused vacation leave provided that an employee's overall performance and attendance practices are satisfactory. Section G Administrative Leave Department heads shall be granted up to 80 hours of administrative leave per calendar year. Department heads shall have the option of taking such leave as additional paid leave or receiving cash for up to 80 hours at year end upon approval of the City Administrative Officer. Management employees shall be granted up to 48 hours of administrative leave per calendar year. Administrative leave hours shall be pro-rated when a department head or management employee is appointed or leaves employment during the calendar year. The employee's final check will be adjusted to reflect the pro-rated hours. Department Heads and Managers are considered exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and not eligible for overtime payment. In general,management employees are expected to work the hours necessary to successfully carry out their duties and frequently must return to work or attend meetings and events outside their normal working hours. However, when specifically authorized by the department head due to extraordinary circumstances, a management employee may receive overtime payment of time and one-half for hours worked above and beyond what would be considered normal work requirements during an emergency event lasting at least eight (8)hours. Section H Holidays Department heads and management employees shall receive 11 fixed plus 2 floating holidays per year. The floating holidays shall be accrued on a semi-monthly basis and added to the vacation accrual. G:\agenda reports\MgtComp2006ExhbtB.doc `� // Attachment 1 Resolution No. (2006 Series) EXHIBIT`B" Management Fringe Benefits 2006 Page 4 of 5 Section I Sick Leave Sick leave is governed by section 2.36.420 of the Municipal Code. An employee may take up to 16 hours 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 40 hours per year if the family member is part of the employee's household and to 56 hours if a household family member is hospitalized and the employee submits written verification of such hospitalization. If the family member is a child,parent or spouse, an employee may use up to 48 hours annually to attend to the illness of the child,parent or spouse,instead of the lesser maximums above, in accordance with Labor Code Section 233. In conjunction with existing leave benefits, department head and management employees with one year of City service who have worked at least 1,280 hours in the previous year may be eligible for up to 12 weeks of Family/Medical Leave in accordance with the federal Family and Medical Leave Act and the California Family Rights Act. Sick leave may be used to be absent from duty due to the death of a member of the employee's immediate family as defined in Section 2.36.420,provided such leave shall not exceed forty working hours for each incident. The employee may be required to submit proof of relative's death before being granted sick leave pay. False information concerning the death or relationship shall be cause for discharge., Upon termination 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% (B) Retirement and actual commencement of Ca1PERS benefits: (1) After ten years of continuous employment— 10% (2) After twenty years of continuous employment— 15% Section J Workers' Compensation Leave An employee who is absent from duty because of on-the-job injury in accordance with State. workers' compensation law and is not eligible for disability payments under Labor Code Section 4850 shall be paid the difference between his/her 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. Section K Vehicle Assignment For those department heads who require the use of an automobile on a regular 24-hour basis to perform their normal duties, the City will, at City option,provide a City vehicle or an appropriate G:\agenda reports\MgtComp2006ExhbtB.doc Attachment 1 Resolution No. (2006 Series) EXHIBIT `B" Management Fringe Benefits 2006 Page 5 of 5 allowance for the employee's use of a personal automobile. The use of a personal automobile for City business will be eligible for mileage reimbursement in accordance with standard City policy. Section L Layoffs In accordance with Section 2.36.320 of the Personnel Rules; the City Council of San Luis Obispo shall determine when and in what position classifications layoffs are to occur. Section M Appointed Officials The fringe benefits outlined in this exhibit for department heads apply to appointed officials, except where they have been modified by council resolution. G:\agendareports\MgtComp2006ExhbtB.doc