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Home My WebLink About01/21/1997, C-9 - MANAGEMENT SALARY RANGE ADJUSTMENTScouncil "°"°` -21-1 j ac En as nepoiA CITY OF SAN LUIS OBISPO FROM: John Dunn, City Administrative Officer Prepared By: Ann Slate, Director of Personnel SUBJECT: Management Salary Range Adjustments CAO RECONEM"DATION Adopt a resolution adjusting management salary ranges and providing additional life insurance coverage. DISCUSSION In July of 1996, the City Council approved the management pay for performance system. As part of that system, the City Council is to periodically review and revise management salary ranges. Adjusting the ranges has no immediate effect on the individual management employee salaries, which can only be adjusted through the pay for performance system. Staff is recommending that the management salary ranges be increased by 3 %. Appointed Officials (the City Administrative Officer and the City Attorney), Department Heads, and all other management employees (excluding public safety mid - managers) would be affected by this change. This recommendation is based upon a number of factors. The recommendation is: • Consistent with what the Council has been granting other employee groups in across the board salary increases over the last two years. • Consistent with the Consumer Price Index which has been at the 3% range this past year. • Consistent with local data presented at the UCSB Economic Forecast which indicates that wage and salary income has been increasing over the last two years with average salaries rising slightly at 3.3% in 1995 and 2.7% in the first three quarters of 1996. Last year the City, with the assistance of consultant Sharon Brunner, conducted a major compensation survey which compared our department head salaries with management salaries elsewhere in both the public and private sectors. Based upon that survey, the Council increased department head salary ranges by 3.2 %. Because that data is still relatively current and recognizing that the private sector data is extremely difficult to obtain, staff decided that using the factors listed above was appropriate for justifying range increases at this time which is midway in our two year management compensation program. ]Manor adjustments to benefits are being recommended as well. Department Heads have had no adjustment to benefits since April of 1995. Although the other management positions received an increase in their long term disability benefit effective July 1996 as part of their agreement to disband their bargaining unit and become part of a larger unrepresented management group, they had previously not received benefit enhancements since January of 1994. Therefore, it is reasonable to recommend the following benefit adjustments: G� -9� Council Agenda Report - Management Salary Range Adjustments Page 2 • Life Insurance Increase the city paid life insurance benefit from $50,000 to $100,000 for department heads and from $25,000 to $50,000 for other management employees. The Appointed Officials received the increase to $100,000 last April in conjunction with their pay for performance increases. This increase in coverage would become effective in April of 1997 for Department Heads and July of 1997 for other management employees in conjunction with the pay for performance salary increases. • Employee Paid Member Contributions In recognition of the management employees' continued interest in enhancing the retirement benefit, staff is recommending that the City extend to them the same provision, at no cost to the City, that has been extended to the Police Officers' Association and the San Luis Obispo Employees' Association (SLOCEA). That provision, "Employee Paid Member Contribution," or EPMC, requires the City to report to PERS the employee's contribution to PERS (7%) as income which serves to increase the employee's compensation for purposes of calculating retirement. This bookkeeping change costs approximately .7% of salary . At the time the City implements the EPMC (estimated to be 1/1/98) salaries will be reduced by this cost to absorb this increased cost. FISCAL IMPACT There is no fiscal impact in adjusting salary ranges since individual salaries are not affected by range adjustments. As stated above, adjustments to salary are based solely on performance through the pay for performance system. The appointed officials and department heads will be eligible for pay for performance increases in April and all other management will become eligible in July. The increase in life insurance coverage results in an annual cost increase of $5,000 based upon current rates, which translates to 2 tenths of one per cent of total compensation. Since the increases will take effect in conjunction with the upcoming pay. for performance salary increases, the costs for year one are $700 and $5,000 in year two for a two year total of $5,700. As stated above, implementation of EPMC is cost neutral to the City. ALTERNATIVES Do not approve and/or modify the recommendation. This is not recommended as the salary range adjustment is in accordance with previously adopted Council policy and consistent with Council direction in a prior closed session. Attachments Resolution /!4r/_ RESOLUTION NO. (1997 Series) A RESOLUTION OF THE CITY COUNCIL OF SAN LUIS OBISPO ADJUSTING SALARY RANGES FOR APPOINTED OFFICIALS, DEPARTMENT HEADS AND OTHER MANAGEMENT PERSONNEL AND 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; and and WHEREAS, that system provides that the City Council annually may adjust the salary ranges; 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 sole basis for Appointed Official and Management compensation; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Luis Obispo hereby modifies the Management Pay for Performance System as follows: SECTION 1. The salary schedule for Appointed Officials, Department Heads and other Management Employees shall reflect a 3% increase in salary ranges as shown in Exhibit "A". SECTION 2. The Appointing Authority, or City Administrative officer shall determine compensation within the designated range, after evaluating performance in accordance with the Management Pay for Performance System. SECTION 3. The City shall continue to provide employees in those classifications listed in Section I certain fringe benefits as set forth in Resolution No. 8412 (1995 Series) and Resolution No. 8476 (1996 Series) and will increase the life insurance coverage for Department Heads to $100,000 and for all other management personnel to $50,000. SECTION 4. The City shall report to the Public Employees Retirement System (PERS) the 7' /o employee contribution as income for the purposes of calculating retirement benefits in accordance with the "Employer Paid Member Contribution" or EPMC option at no cost to the City. Upon motion of AYES: NOES: ABSENT: and on the following roll call vote: seconded by the foregoing resolution was adopted this day of 91997. � -y -3 ATMM APPROVED AS WIFORM: Mayor Allen Settle -- - -- — EXHIBIT A APPOINTED OFFICIALS AND MANAGEMENT SALARY SCHEDULE Salary Group Classifications City Administrative Officer II City Attorney III Assistant City Administrative Officer Community Development Director Finance Director Fire Chief Police Chief Public Works Director Utilities Director IV City Engineer Parks and Recreation Director Personnel Director V City Clerk VI Assistant City Attorney Development Review Manager Long Range Planning Manager Public Works Manager Wastewater Division Manager Water Division Manager VII Accounting Manager Chief Building Official Economic Development Manager Fire Marshall Information Systems Manager Natural Resources Manager Revenue Manager Supervising Civil Engineer Vlll Assistant to the CAD Parking Manager Principal Transportation Planner Risk Manager Transit Manager Wastewater Treatment Plant Supervisor Water Treatment Plant Supervisor Utilities Engineer Salary Ronne $7046 -9138 $6108 -7908 $5749 -7413 $5142 -6606 $4116 -5351 $4033 -5311 $3700 -5086 $3398 -4761 !ter Management Salary Schedule - Page 2 IX Administrative Analyst $3160 -4490 Fire Protection Specialist GIS Coordinator Industrial Waste Coordinator Neighborhood Services Manager Personnel Analyst Principal Recreation Supervisor Wastewater Collection Supervisor Water Distribution Supervisor Water Supply Supervisor X Accounting Supervisor $2922 -4144 Arborist Building Maintenance Supervisor Communications Supervisor Customer Services Supervisor Golf Course Supervisor Parks Supervisor Police Records Supervisor Police Support Services Manager Recreation Supervisor Streets Supervisor Supervising Mechanic Water Conservation Coordinator 0. 9-w