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Home My WebLink About05/02/1995, C-8 - MANAGEMENT COMPENSATION II��Nl�ltllllll�ll U � MEDATE: � c� li► �� or san pais oBIspo -r- wo COUNCIL AGENDA REPORT ITEM NUMBER: /J Q FROM: John Dunn, City Administrative Office PREPARED BY: Ann Slate, Personnel Director SUBJECT: Management Compensation CAO RECOMMENDATION: Adopt a resolution establishing a management compensation plan for Department Heads and Appointed Officials DISCUSSION: Background: The Managerial Compensation Plan expired in April of this year and Council is now being asked to consider a new plan that provides adjustment to management compensation covering the year from April, 1995 to April, 1996. In accordance with City policy, staff has developed recommendations for a proposed management compensation plan that replaces the system that expired in April. The recommendations are consistent with the direction Council provided the City Administrative Officer previously in closed session on April 4, 1995. Council also directed staff to develop a longer range compensation strategy that would define adjustments in the future. That strategy is to include an analysis of the local labor market, both private and public sector. Staff will return to the Council within the next two months with a proposed process that outlines among other considerations an approach to surveying the local private sector. The Management Comoensation Plan Range Adjustment: No adjustments to the salary ranges are recommended at this time. Salary Adjustment: For several years, the City has based managerial pay increases on performance as indicated by a performance matrix. The Appointing Authority (Council for Appointed Officials and City Administrative Officer for Department Heads) is authorized to grant pay increases as indicated by the performance matrix. L•8"I city Of San LUIS OBISPO COUNCIL AGENDA REPORT Page 2 Health Insurance Contribution: The health insurance contribution shall be increased by $15, from $400 to $415 per month. Deferred Compensation: The City's contribution to deferred compensation shall be increased by one half per cent, making the total contribution 2.0% salary. No other changes to salary or benefits is recommended at this time. SUMMARY: The proposed Management Compensation Plan has been designed to maintain levels of pay and benefits which reflect appropriate relationships among classifications in the City service which is required by the City's Municipal Code Section 2.36.130. The Municipal Code further states that the compensation plan should be consistent with. the goals of adequately compensating employees for their work and maintaining the City's ability to attract and retain qualified applicants. FISCAL IMPACT: The total cost of the Management Compensation Plan is estimated to be $55,000. Funding for 1994-95 is available within existing budgets, and will be appropriated in the upcoming financial plan for costs incurred in FY1995-96. Attachment: Resolution RESOLUTION NO. (1995 SERIES) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO REVISING A MANAGEMENT COMPENSATION PLAN FOR APPOINTED OFFICIALS AND FOR CERTAIN MANAGEMENT PERSONNEL AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT WHEREAS, the City Council established a comprehensive Appointed Officials and Management Development and Compensation policy in 1994; 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; and WHEREAS, consistent with Section 701 of the City Charter, the City Council is the appointing authority for the 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: /7- 1 Resolution No. (1995 Series) Page 2 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 and promote merit and performance as the criteria for individual salary determinations, the following open-range Appointed Officials and Management Personnel Salary Schedule established in 1994 shall remain unchanged: APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE 1995 GROUP MANAGEMENT POSITION SALARY RANGE I City Administrative Officer $6629-8597 II City Attorney $5746-7440 III Assistant City Administrative Officer $5409-6974 Community Development Director Finance Director Fire Chief Police Chief Public Works Director Utilities Director IV City Clerk $4837-6215 City Engineer Parks and Recreation Director Personnel Director L-0 Resolution No. 0995 Series) Page 3 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 and salary increase matrix. 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. PERFORMANCE GUIDELINES First auartile of the salary range: promotional and initial hiring range and learning curve on the job Second quartile of the salary range: experienced level and lateral hiring; competent performance of the job after completion of learning/adjustment curve after hire Third auartile of the salary range: hiring exceptionally qualified; consistently competent performance over time Fourth auartile of the salary range: exceptional performance over time; strives to excel in numerous areas SALARY INCREASE MATRIX Performance Status: Quartile: 2nd 3rd 4th Probation (not adequately performed) 0% 0% 0% 0% Fair 0-2 0-1 0% 0% Competent (expected performance level) 3-5 2-4 1-3 0-1 Highly Competent 3-6 4-5 3-4 2-3 Exceptional 8-9 7-8 5-6 3-4 ��S S Resolution No. (1995 Series) Page 4 Section 3. The City shall continue to provide employees in those classifications listed in Section 1 certain fringe benefits including: a. A contribution for health insurance premiums as provided through PEMHCA of $415 per month. b. A contribution of 2.0% of salary into a deferred compensation plan. All other benefits currently available to the above referenced employees to remain in effect. Section 4. City staff shall develop a longer range comprehensive management compensation plan to be presented to Council for their approval to be used in establishing managerial compensation in the future. 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 May 1995. CI.�—lc Resolution No. (1.995Series) Rage.5. MAYOR ALLEN SETTLE ATTEST: DIANE GLADWELL, CITY CLERK APPROVED AS TO FORM: F G. O N FfN, CITY ATTORNEY Ganc96 4Y