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HomeMy WebLinkAboutCC RESO 14,690RESOLUTION NO. 14,690 RESOLUTION APPROVING FISCAL YEAR 1985-86 COMPENSATION PLANS FOR EXECUTIVE, MID -MANAGEMENT AND CONFIDENTIAL PERSONNEL WHEREAS, the City Manager has presented the City Council with certain recommendations regarding Executive, Mid -management and Confidential Employees' compensation; and WHEREAS, the City Council has determined that the recommended compensation plan, together with any required modifications, should be implemented; NOW, THEREFORE, BE IT RESOLVED as follows: SECTION 1. The compensation plan for executive, mid -management and confidential personnel is hereby approved effective July 1, 1985; SECTION 2. The City Manager is hereby directed to reflect said compensation plan in the final budget for Fiscal Year 1985-86. A copy of said Compensation Plan shall be on file in the office of the City Clerk and reference is made thereto for all particulars contained therein. PASSED and ADOPTED this 9th day of July, 1985. ATTEST: IonejCampbell, City Ccierk APPROVED AS TO FORM: George H. er, III - City Attorney —...atemr,. 4y,.,ss=o. a C REPORT TO MAYOR AND COUNCIL EXECUTIVE, MID -MANAGEMENT AND CONFIDENTIAL EMPLOYEES SALARY AND BENEFIT STUDY Tom G. McCabe City Manager July 2, 1985 C C C City ot-1\rationai City Office of the City Manager 1243 National City Boulevard, National City, Ca. 92050-4397 (619) 477-1181 Tom G. McCabe —City Manager July 2, 1985 TO: Mayor and City Council FROM: Tom G. McCabe, City Manager SUBJECT: Executive, Mid -Management and Confidential Employees Salary and Benefit Study As in previous years, I am reporting on the status of compensation of City Executives, Mid -manager and Confidential Employees. As our elected leaders, you have once again challenged the administrators responsible to you to increase their effectiveness and performance in order to meet present and future needs of the citizens of the City of National City. It is a challenge that requires City government be able to recruit and retain professional administrators who are committed to constantly providing a higher quality and quantity of service without unduly straining governmental resources. The budget presentations for the 1985-86 fiscal year gave indications of many significant accomplishments during the last year by City staff in fulfilling the goals established by the Council; also, it indicated plans for meeting ongoing and unfilled needs. It is therefore in the best interests of the City that salaries and benefits are at a level consistent with the quality of service required. Improvements in salaries and benefits enacted last year by the Council undoubtedly were instrumental in the decrease in turnover in key positions during the last year. However, the need to hire one executive, five mid -managers, and three confidential employees during the last twelve months indicates the importance of offering salaries and benefits which are competitive not only with the local area employers but also the broader labor market from which it is necesary to recruit in order to obtain applicants qualified to meet the City's needs. It is in this spirit of responsibility to the City of National City that I submit the recommendations and information in this report. TGM:let c TABLE OF CONTENTS I SUMMARY OF RECOMMENDATIONS - EXECUTIVES & MID -MANAGERS A. SALARY BAND ADJUSTMENTS 1. Executives 2. Mid -managers B. BENEFITS 1. Executives 2. Mid -managers IL BASIS FOR RECOMMENDATIONS - EXECUTIVES & MID -MANAGERS A. SALARY BAND ADJUSTMENTS B. BENEFITS PROGRAM CHANGES IIL CONFIDENTIAL EMPLOYEES A. SALARY AND BENEFITS ADJUSTMENTS B. BASIS FOR RECOMMENDATIONS IV. APPENDIX A. Cost Analysis: Management Salaries and Benefits Program B. Salary & Benefits Surveys - 1984-85 C C C SUMMARY OF RECOMMENDATIONS A. RECOMMENDED SALARY BAND ADJUSTMENTS Note: Changes in salary bands do not automatically result in salary increases. All Salary Band amounts shown are Monthly. No recommendations are indicated for those executives who either are elected or report directly to the City Council. 1. Executive Salary Bands Assistant City City Attorney City Clerk City Engineer City Librarian City Manager Director of Director of Director of Director of Director of Fire Chief Police Chief Manager Building Finance Park & Recreation Planning Public Works & Safety 2. Mid -Management Salary Bands Administrative Assistant Assistant Finance Director Assistant to the City Mgr/Pers. Civil Engineering Associate Deputy Public Works Director Executive Assistant Fire Battalion Chief Principal Librarian Police Captain Principal Planner Purchasing Agent Senior Civil Engineer Present Proposed 7/1/84-6/30/85 7/1/35-6/30/85 $3260-4240 $3450-4480 3720-4840 2120-2750 3230-4180 3410-4420 2740-3560 2900-3760 4240-5510 2920-3790 3090-4010 2920-3790 3090-4010 2740-3560 2900-3760 2970-3860 3140-4080 2970-3860 3140-4080 3020-3930 3190-4150 3480-4530 3680-4790 2110-2740 2610-3390 2610-3390 2320-3010 2400-3120 1880-2440 2610-3390 2120-2760 2780-3610 2400-3120 2120-2760 2610-3390 2230-2900 No change 2760-3580 2450-3180 2540-3300 1990-2580 2760-3580 2240-2920 2940-3820 2540-3300 2240-2920 2760-3580 c C C I RECOMMENDATIONS (continued) B. BENEFITS 1. Executives BENEFIT PERS - City pay towards employee's share of cost PRESENT 796 PROPOSED No Change HEALTH INSURANCE - $160/mo. No Change Employee & Dependents $240/mo. for City Mgr. PERSONAL COMPENSATION $300/yr. No Change LIFE INSURANCE DENTAL INSURANCE DEFERRED COMPENSATION $25,000 No Change $60,000 for City Mgr. $8/mo. $14.02 Optional at No Change employee's expense EDUCATIONAL REIMBURSEMENT None $650/yr. I RECOMMENDATIONS (continued) B. BENEFITS 2. Mid-mana ement BENEFIT PRESENT PROPOSED PERS - City pay towards 796 No Change employee's share of cost HEALTH INSURANCE - $160/mo. No Change Employee & Dependents PERSONAL COMPENSATION $200/yr. No Change LIFE INSURANCE $20,000 No Change DENTAL INSURANCE disc: $8/mo. Misc: $14.02/mo. Safety: $14.02 Safety: No Change DEFERRED COMPENSATION Optional at No Change employee's expense EDUCATIONAL REIMBURSEMENT None $650/yr. C c II BASES FOR RECOMMENDATIONS A. SALARY BAND ADJUSTMENTS 1. RECOMMENDATION: A uniform adjustment of 5.7 per cent for the top of each salary band, except for that of Assistant to the Finance Director, is recommended. (Consistent with past practice no recommendation is made for City Attorney, City Clerk or City Manager.) In reviewing this recommendation please note that no administrator is recommended for an automatic salary increase. In contrast to the treatment of bargaining unit employees, executive and mid-managernent employees do not receive automatic "cost of living" increases in salary. The performance of each administrator is individually evaluated to determine what, if any, salary increase he or she might receive. A new management performance appraisal system has been implemented in order to clarify departmental goals and more effectively evaluate performance in accomplishing goals. Success in meeting goals has a direct impact on the level of salary increase, if any, within the salary band. The primary consideration in the establishment of salary bands is the prevailing rate of pay offered comparable positions. Important in this consideration are the total compensation (salary and direct benefits) levels established in the San Diego area by other cities. These data are reflected in the survey in the Appendix of this report. Please note that data for the City and County of San Diego, and the two smallest cities in the County (Del Mar and San Marcos) are included for information but are not included in computing the mean (average) salaries being paid. Also, important in order to assure the opportunity to hire and retain the best qualified persons available for these critical positions are salaries being paid over a larger geographic area than just the San Diego region. Although, it would be desirable to fill these positions from within the City service or at least from within the local area, it is often necessary to recruit over a larger area. Therefore, the California and Pacific Coast area survey data are included when relevant. Evaluation of the ---internal relationships between related positions is an important factor, also, in establishing appropriate salary bands. Therefore, evaluation of the relative levels of responsibility and difficulty of assigned responsibilities of city positions wereconsidered, also. This internal evaluation is particularly important when it is not possible to obtain external salary data on comparable positions. In almost all cases, consideration of internal relationships resulted in recommendations for smaller salary band increases than would be indicated by the surveys alone. A final factor considered in the salary band recommendations is the expectation of salary increases by other local cities. While other cities were not in a position to announce publicly their anticipated salary increases at the time this report was prepared, informal information indicates that it is probable that in all cases they will be granting their management employees salary increases of five per cent or more. No increase is recommended for the vacant position of Assistant to the Finance Director. Based upon the current responsibilities assigned it is anticipated that the current salary level is adequate. B. BENEFIT PROGRAM CHANGES Last year the Council approved significant improvements in fringe benefits for all employee groups including management. This year we are not recommending any major increases in benefit costs. However, we believe that this relatively modest increase in costs is warranted to overcome two significant deficiencies in the current benefits program. 1. RECOMMENDATION: The City reimburse executive and mid -management employees up to $650 per year for career -related credit courses taken at an accredited institution of higher education. This program will be beneficial to both the employee and the City.Courses for which reimbursement would be paid would be subject to the approval of the City Manager or his designee and evidence that the employee received a passing grade. In order to be eligible for reimbursement, the employee must indicate how the course is consistent with the needs of the City of National City. It is anticipated that a maximum of ten employees would take advantage of this program in the 1985-86 fiscal year. Either education expense reimbursement or educational incentive pay is offered for all other groups of permanent City employees. The MEA-unit employees are eligible for up to $400 per year. The POA-unit employees do not receive reimbursement for college courses but are eligible for educational incentive pay of up to $900/year. The FFA-unit employees may take up to twelve units of community college courses per year at City expense. Since management employees normally would be taking courses at the graduate level or at a four year college, we have based the requested reimbursement maximum on the fees charged by San Diego State University. At SDSU, it costs approximately $500 per year for required fees plus the cost of books and other materials. Those employees who due to commitments or other reasons must take courses at some other institution such as National University, would have to pay significantly higher fees. 2. RECOM.MENDATION: The City increase the monthly contribution for dental insurance to $14.02 per month for Executive and Mid -Management employees. Mid-managernent safety employees (Fire Battalion Chiefs and Police Captains) currently receive the recommended rate. However, all other mid - managers and the executives receive only $8.00 per month. The current City contribution rates for represented employees is: Firefighters' Association: Municipal Employees' Ass'n: Police officers' Ass'n: $14.02/mo. 9.00/rno. 14.02/mo. C C C III CONFIDENTIAL EMPLOYEES A. RECOMMENDATIONS 1. RECOMMENDATION: It is recommended that Confidential employees receive the same salaries and benefits as those described in the Memorandum of Understanding with the National City Municipal Employees Association. 2. RECOMMENDATION: In addition to the salaries and benefits described above, it is recommended that the Confidential Employees receive one additional floating holiday per year. B. BASES FOR RECOMMENDATIONS Because certain employees have prior access to highly confidential matters pertaining to City representatives' negotiations and other sensitive employee relations matters, State law allows a city to designate such employees as Confidential Employees and exclude them from the same bargaining unit as other employees. Under the provisions of the City's Employer -Employee Relations Resolution, four National City employees have been designated as "Confidential". Last year these employees were granted the same salary and benefits increases as those employees represented by the National City Municipal Employees' Association. The recommended additional floating holiday is intended to recognize the special responsibilities and status of these employees more adequately. It should be noted that consistent with City policies, a floating holiday must be taken in the fiscal year that it is earned. An employee is not entitled to additional compensation in lieu of using the floating holiday. Given the small number of employees involved, no increase in costs is budgetted for this benefit.