HomeMy WebLinkAbout03/07/1989, C-10 - APPOINTED OFFICIAL AND MANAGEMENT COMPENSATION PLAN, FIVE-YEAR STRATEGY. MEETING DATE:
�����i��illuillllllllp� Il�Ill City of San tuffs OBISPO March 1989
COUNCIL AGENDA REPORT ITEM NUMBER: -/A
FROM: Toby Ross, Assistant City Administrative Officer
SUBJECT: Appointed Official and Management Compensation Plan,
five-year strategy.
CAO RECOMMENDATION: Approve a resolution which establishes salaries
and benefits for Appointed Officials and Certain Management Personnel
and supercedes previous resolutions in conflict.
GENERAL BACKGROUND:
The City of San Luis Obispo recognizes that its most valuable
resource is its human resource. The City, historically, has placed a
high priority on good employer-employee relationships and fair and
adequate compensation at each level of employee service, from
part-time personnel to Appointed Officials.
MANAGEMENT RESOLUTIONS
History
In 1982, Council approved Resolution No. 4936. This resolution was
one of the first attempts toward a comprehensive package for
managerial compensation. Explicit in Resolution No. 4936 is: the
desire for the City to remain competitive with the professional
marketplace and to promote merit and performance as the criteria for
individual salary determinations. In summary, it was a significant
step in establishing an approach and policies regarding compensation
for management positions.
In 1986, Appointed Officials were made a separate group (Res. No.
4936) and minor modifications were made in salary ranges for both
Appointed Officials and Management. Since 1982, little had been done
to either review or update policy or procedures.
During summer 1988, the Personnel Director conducted a survey of 11
comparable cities in order to determine how closely management
compensation in the City of San Luis Obispo compares to those of
similar cities. Those results supported amending the existing
appointed official and management compensation plans for the
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nia; COUNCIL AGENDA REPORT
remainder of 1988. The Council approved resolutions which provided
interim salary and benefit adjustments pending a more comprehensive
analysis. In addition, Council reaffirmed its commitment to five-year
compensation strategy.
In November 1988, the Council approved hiring THC Associates to
analyze the existing compensation plan and to develop strategy which
will guide appointed officials compensation structure through 1993.
COMPENSATION POLICY
The Charter of the City of San Luis Obispo states that compensation
of all City officials and employees shall be by salary and shall be
fixed by ordinance or resolution (Section 711) . It establishes the
City Council as the appointing authority for three positions (CAO,
City Attorney and City Clerk) , and the CAO for all other management
positions.
The Compensation Plan is designed to establish levels of pay and
benefits which reflect upon appropriate relationships among
classifications in the City service. (Municipal Code of San Luis
Obispo 2.36.130) . The Municipal Code further states that the
compensation plan should be consistent with the goals of adequately
compensating employees (officials) for their work and maintaining the
City's ability to attract and retain qualified applicants.
Association Representation
The Employer-Employee Resolution (No. 3405-77) , establishes the
framework for relations between the City and its employees. A key
factor of the resolution allows for the formation of employee
organizations for the purpose of representing employees in their
employment relations with the City. Currently, six employee
associations represent the interests of employees to the City:
General, Mid-Management, Police, Fire, Fire Battalion Chiefs and the
Police Staff Officers. A comparison of salary, health insurance,
retirement and miscellaneous benefits of the different employee
association agreements is shown as Exhibit "A".
Appointed Officials and Management do not belong to any formal
association.
Existing Management Compensation Policy
Existing management compensation policies are stated in Resolution
No. 6169 for Appointed Officials and Resolution. No. 6121 for Certain
Management Personnel. These resolutions were amended in September
1988 to provide for:
* Salary range increase of 6% effective July 1, 1988 for
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COUNCIL AGENDA REPORT
Management Employees.
* Increase in health benefit funding from $284 to $300 per
month effective December 8, 1988.
* Annual vacation leave up to 15 days for new managers.
THC Report
In November of 1988, Council approved the hiring of THC Associates, a
human resource management consultant firm to review current Appointed
and Management Compensation policies and procedures and to develop a
five-year compensation strategy. Results and recommendations of this
study are presented in THC's final report which was previously
distributed to the City Council and which may be summarized as
follows:
* The City provides for management salaries within 5% of the
average of the base salary marketplace (except for the CAO which
falls 9.5% below) , and for total compensation below average.
* Starting in 1990, the Appointed Officials and Management
Personnel salary should be adjusted as follows:
1990 = 5% range increase
1991 = 5% range increase
1992 = 4-6% based on a check of the marketplace
1993 = to be adjusted based on the results of 1992 survey
* Individual incumbent placement and movement through an
assigned salary range should be guided by performance.
* The Assistant to the CAO and Assistant City Attorney
positions would be more appropriately assigned to the mid-management
compensation plan.
* The City should consider offering supplemental life
insurance (at employee cost) .
Recommended Management Compensation Policy
The attached resolution incorporates several of the recommendations
made by THC. Among those recommendations are an adjusted Appointed
Official and Management. Salary Schedule, (Res. Exhibit "A")
Performance Guidelines, (Res. Exhibit "B") and a Salary Increase
Matrix. (Res. Exhibit "C") In addition, changes have been made in the
management fringe benefit packacje (Res. Exhibit "D") . The Assistant
to the CAO (or reclassified position as appropriate) and the
Assistant City Attorney positions will be transferred to the
mid-management unit administratively. Supplemental life insurance
will be addressed as part of a city-wide evaluation of insurance
city of San Luis osIspo
COUNCIL AGENDA REPORT
benefits scheduled for later this year.
FISCAL IMPACT
The total cost of salary changes, including salary related increases,
is approximately $50,000 for fiscal year 1989-90.
ALTERNATIVES
1. Council could adopt the recommended resolution establishing a
managerial compensation plan for appointed officials and certain
management personnel.
2. Council could refuse to adopt the recommended resolution and
direct staff to return with recommended changes.
3. Council could maintain the existing management compensation
policy with direction to staff.
RECOMMENDATIONS
Approve the recommended resolution which establishes salaries and
benefits for Appointed Officials and certain management personnel and
supercedes previous resolutions in conflict.
Attachments:
Comparison of Association Agreements
City of SLO Review of the Management Compensation Plan
Resolution No.
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C' COMPARISON OF ASSOCIATION AGREEMENTS 1988-1992 (1)
GENERAL MID-MGT/CONF POLICE ASSOCIATION
UNIT UNIT UNIT FBCA(2) PSOA(3) AVERAGE
------------------------------------------------------------------------------------------�_���_�_
SALARY (4)
1988 8.0% 5.0% 6.0% 6.0% 20%(SGT) 10%(LT) 12%(CPT)
1989 5.0% 6.5% 6.0% 11.0% 10.0% 7.7%
1990 5.0% 7.0% 6.0% 6.0% 6.0% 6.0%
1991 5.0% 7.0% 7.0% 7.0% 7.0% 6.6%
1992 4.5% 7.0% 7.0% 7.0% 7.0% 6.5%
HEALTH TOTAL AVERAGE = 6.7%(5)
INSURANCE
1988 $245 $250 $284 $248 $300 $265
1989 $255 $260 $300 $300 $300 $283
1990 $265 $270 5300 $300 $300 $287
1991 $275 $280 $325 $325 $325 $306
1992 $285 $290 $325 $325 $325 8310
TOTAL AVERAGE = $290
RETIREMENT 2% AT 2% AT 2% AT 2% AT 2% AT
60 YEARS 60 YEARS 50 YEARS 50 YEARS 50 YEARS
O MISC
1988 --- --- UNIFORM $600 --- UNIFORM E800
PER YEAR PER YEAR
1989 +5000 LIFE PERFORMANCE UNIFORM'$600 MGT DEV $750/YR
INSURANCE BONUS TOTAL - PER YEAR ADMIN LV IN LIEU OF OT
$12.00/M0 64 HAS ADMIN
LV IN. LIEU OF OT
1990 +5 PER DAY PERFORMANCE --- UNIFORM 5600
STANDBY BONUS TOTAL PER YEAR
$1300/MO
1991 --- PERFORMANCE ED BENEFITS END --- UNIFORM 8700
BONUS TOTAL PROGRAM ADDS 2 PER YEAR
$1400/MO STEPS TO,RANGE
1992 --- PERFORMANCE ---
BONUS TOTAL
$1500/MO
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1) FIRE UNIT DELETED PENDING NEGOTIATIONS
2) FBCA = FIRE BATTALION CHIEFS' ASSOCIATION
3) PSOA = POLICE STAFF OFFICERS' ASSOCIATION
4) PERCENTAGE INCREASE REFLECTS ADJUSTMENTS FOR COMPARABILITY BETWEEN ASSOCIATIONS
5) EXCLUDES FIRST YEARS OF CONTRACTS
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RESOLUTION NO. (1989 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO ESTABLISHING A MANAGERIAL COMPENSATION PLAN
FOR APPOINTED OFFICIALS AND FOR CERTAIN MANAGEMENT
PERSONNEL AND SUPERSEDING PREVIOUS RESOLUTIONS IN
IN CONFLICT
WHEREAS, the City Council desires to establish a
comprehensive Appointed Officials and Management Development and
Compensation policy; and
WHEREAS, the 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, the Council desires to maintain an Appointed
Officials and Management Compensation Plan which is consistent
with other compensation plans; and
WHEREAS, the Council is committed to a compensation plan
which reflects the differences between duties, responsibilities
and job requirements; and
WHEREAS; the Council determines that merit and performance
shall be the basis for Appointed Official and Management
compensation.
WHEREAS, consistent with Section 701 of the City
Charter, the City Council is the appointing authority for the
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City Administrative Officer, City Attorney and the City Clerk
(Appointed Officials) , and the City Administrative Officer is the
Appointing Authority for Management positions.; and
WHEREAS, The appointing authority is responsible for the
selection, evaluation and the level of compensation for the
appointed employee.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
San Luis Obispo as follows:
Section 1. An Appointed Official and Managerial salary plan
is an important component of a comprehensive compensation policy.
In order to remain competitive with the professional marketplace
Cand promote merit and performance as the criteria for individual
salary determinations, the following open-range Appointed
Officials and Management Personnel Salary Schedule (Exhibit A'-') is
authorized. The salary schedule shall be- adjusted as follows:
1890 - 5% range increase
1991 - 5% range increase
1992 - 4-6% increase based on compensation survey
conducted in January 1992 .
.1993 - to be adjusted based on the results of
1992 survey
The 1992 and 1993 changes in the salary schedule shall be
authorized by Council resolution.
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EXHIBIT "A"
APPOINTED' OFFICIALS AND MANAGEMENT SALARY SCHEDULE
1989
GROUP MANAGEMENT POSITION SALARY RANGE
MIN MID MAX
I CAO 5600 6400 7200
II ATTORNEY 4600 5250 5900
POLICE CHIEF
FIRE CHIEF
COMM.DEVELOPMENT
PUBLIC WORKS
UTILITIES DIR
ASSISTANT CAO
III CITY ENGINEER 4200 4800 5400
FINANCE DIR
IV PERSONNEL DIR 3800 4350 4900
RECREATION DIR
V CITY CLERK 3100 3550 4000
Section 2. The Appointing Authority, or City Administrative
Officer shall determine compensation within the designated range,
after evaluating performance using professional compensation
principles and the following guidelines (Exhibit "B") and salary
increase matrix (Exhibit "C") . Such determination shall reflect
merit and performance as the standard and basis for managerial
compensation. In addition, the appointing authority may reduce
compensation if performance is unsatisfactory.
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Exhibit "B"
PERFORMANCE GUIDELINES
First quartile of the salary range: promotional and initial
hiring range and learning curve on the job
Second quartile of the salary range: experienced level and
awl hiring; competent performance of the job after
completion of learning/adjustment curve after hire
Third quartile of the salary range: hiring exceptionally
qua�ifle , cons stently competent performance over time
Fourth quartile of the salary range: exceptional
performance over time; strives to excel in numerous areas
Exhibit "C"
SALARY INCREASE MATRIX
Performance Status: Quartile:
1st 2nd 3rd 4th
Probation (not adequately 0$ 0% 0% 0%
performed)
Fair 2-4 2-3 1-2 0%
Competent (expected 5-7 4-6 3-5 2-3
performance level)
Highly Competent 8-10 7-8 5-6 3-4
Exceptional 10-12 9-10 7-8 5-6
(To be used in 1989, 1990, and 1991. May require adjustment
in 1992 and 1993 depending on the results of 1992
compensation survey. )
Section 3 . The City Administrative Officer is responsible
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for and shall be held accountable to the Council for the
performance and evaluation of subordinate management staff. By
the end of April of each year, the City Administrative Officer
shall evaluate and determine salary levels for subordinate
management and staff. Salary level determinations may be
implemented by phases during each (12) month period (April
through March) .
Section 4. The salary determination within the approved
range for City Engineer shall be jointly determined by the Public
Works Director and the City Administrative Officer.
Section 5. By the end of April, the City Council shall
evaluate and determine salary levels for the Appointed Officials.
The salary level determinations may be implemented by phases
during each (12) month period (April through March) . The City
Council shall adopt individual employment agreements for
Appointed Officials.
Section 6. The City Council is authorized to grant one-time
Performance Awards of up to $750 to Appointed Officials. The
City Administrative Officer is authorized to grant one-time
performance awards of up to $750 to management personnel.
Performance Awards may be granted for either exceptional specific
performance or sustained outstanding performance.
Section 7 . The management fringe benefits attached hereto
as Exhibit "D" shall continue through 1993 . The City, shall
contribute a maximum of $300 per month through 1990 and $325 per
month. from 1991 through 1993 , for medical, dental and vision
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coverage. Should the City adopt a salary reduction plan,
equivalent amounts will be applied to that plan. 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.
On motion of seconded by
and on the following role call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was passed and adopted this day of
CJanuary 1989.
MAYOR RON DUNIN
ATTEST:
CITY CLERK Pamela Voges
APPROVED:
i
City Admi istrative Officer jPersornmnil Dire r
•
.1-City Atto ey
Fig_
r ance Director
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EXHIBIT "D"
MANAGEMENT FRINGE BENEFITS
1989 - 1993
SECTION A Medical, Dental. Eve Care
The City shall establish and maintain medical, dental and eye care insurance plans
for coverage by management employees and their dependents. Each management employee
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 Fringe Benefit
The City shall pay to each management employee as soon as practicable prior to
December 31, an annual lump sum payment (subject to appropriate taxation) for the
difference between the benefit amounts provided Management employees and any lesser
sum expended by the employee for medical, eye care, and dental coverage for the
calendar year.
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 employees
who elect to remain members 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 employees including the amendment permitting conversion of
unused sick leave to additional retirement credit, the 1959 survivor's benefit and
one year final compensation.
The police and fire chiefs shall receive the same retirement benefits as sworn
personnel in their department.
Effective 7-1-81 the City agrees to pay the employee's contribution 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 employee has no option to receive the contributed amounts directly
instead of 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.
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C' Management Fringe Benefits - 1989-1993
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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 up to a
maximum of twice the annual accrual rate. However, if the City Administrative
Officer determines that a management employee has been unable to take vacation due
to the press of City business, the City Administrative Officer may increase the
accrual limits or once annually authorize payment for one-half of the excess
accumulation up to a maximum of five (5) days. The City Administrative Officer may,
within two years of appointing a manager, increase the rate of vacation accrual to a
maximum of 15 days per year.
SECTION F Administrative Leave
Management employees shall accrue eight (8) days (64 hours) of executive leave per
calendar year. Management leave shall accrue at the rate of 5.333 hours per month.
Commencing January 1, 1987 management employees shall have the option of taking such
leave as additional paid leave or receiving cash for up to 64 hours at year end upon
the approval of the CAO.
SECTION Holidays
Management personnel shall receive 10 fixed + 2 floating holidays per year.
SECTION H, Sick Leave
Sick leave is governed by Section 2.36.420 of the Municipal Code. An employee 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 employee submits written verification of such
hospitalization.
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 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.
C An employee who is absent from duty because of on-the-job injury in accordance with
the state workers' compensation law and is not eligible for disability payments
under Labor Code Section 4850 shall be paid the difference between his 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.
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Management Fringe Benefits - 1989-1993
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SECTION Vehicle Assignment
For those management personnel 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 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.
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