SR-603-001 (3)
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council Meeting: August 9, 1988
AUG 9 1988
Santa Monica, California
TO: Mayor and city Council
FROM: city staff
SUBJECT: Executive Pay Plan Resolution
INTRODUCTION
This report requests that council adopt the attached Resolution
amending the Executive Pay Plan.
BACKGROUND
city Department Heads and the executive staff of the City
Manager's Office are not represented by bargaining units. Their
salary and benefit package is established by resolution.
The attached resolution provides for increases in:
1) salary;
2) the City's deferred compensation match; 3) management leave
day, and 4) the performance bonus pool.
The resolution also
makes certain equity adjustments.
RECOMMENDATION
It is recommended that Council adopt the attached resolution
amending the Executive Pay Plan.
Prepared By: Lynne C. Barrette, Assistant city Manager
Attachment: Resolution amending Santa Monica Executive Pay Plan
(execpay)
9/1
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AUG 9 1988
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VOTE: AffirmatIve:
Negative:
Abstain:
Absent: HIe 4-...."--e &-7~ n
PROOF VOTE.C: WI TH ANOTHER PERSON BEfoRE Al',1VTHING
vISTKIBUTlUN: ORIGINAL LO be signed, ~ealed and ~iled in Vault.
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BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # ~0 7~
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CouncIl Meeting Date
Agenda Item It
Was it amended?
FOR CTTY CfERK'S ACTION
ORDINANCE 1#
Introduced:
Adopted:
All'WlS PUBLISH AOOP1'ill OrolWlNCES*
*Cross out Attorney's approval
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NEWSPAPER PUBLICATION (Date: )
Pepartment originating staff report ( * )
*Ci ty Attorney does not ~t copies of his ordinances or resolutions.
Management SerVi.i-s:e~ Lynne Bar:rette - urdl.nances only ~
Agency mentIoned in document or staff report
(certifIed?)
Subject file (agenda packet) 1
Others: (Review for depa:r.l:i'n:~nts who need to kn.a.Y') .
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Airport
Parking Auth.
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Planning
Police (en-
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Library
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CODED SYSTEMS, Attn Peter Maclearie
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Av";" L YE;w Jersev _ 01717
SEND FOUR COPIES OF .ALL ORf1T\T..\'JC.FS .to:
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SANTA MONICA MUNICIPAL COURT
,1725 MAIN STREE't Room 118
SM1TA MONICA, CA 90401
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RESOLUTION NUMBER 7673(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AMENDING THE EXECUTIVE PAY PLAN
WHEREAS, the Executive Pay Plan adopted by Resolution No.
7487 (CCS) has been in effect for one year; and
WHEREAS, certain of its provisions require updating to
reflect organizational changes and to update compensation and
benefits provisions~
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1 :
The City council does hereby establish an
Executive Pay Plan which defines the wages and benefits of the
city's Department Heads and those members of the Executive Staff
of the City Manager's Office who choose to represent themselves
individually under Ordinance No. 801 (CCS).
SECTION 2: The elements of the Executive Pay Plan shall be
as follows:
A. participants. Participation in the Executive Pay Plan
shall be limited to the Assistant City Manager, Building Officer,
city Librarian, Director of community and Economic Development,
Director of Finance, Director of General Services, Director of
Personnel, Director of planning, Director of Cultural and
Recreation Services, Director of Recreation and Parks, Director
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of Transportation, Fire Chief, Police Chief, Director of
Municipal Airport, and Director of Information Services. In
addition, the City Manager's Office Administrator, Council Office
Administrator, Senior Management Analysts, Management Analysts,
and Risk Manager on the City Manager's staff may participate in
the Executive Pay Plan if they choose to individually represent
themselves under the terms of Ordinance No. 801 (CCS).
Members of the City Manager's Staff who choose to be individually
represented and become participants in the Executive Pay Plan
shall have the right to stop participation in the Executive Pay
Plan and to request representation by an appropriate unit Subject
to the approval of the City Manager. Individuals who exercise
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that right cannot again become participants in the Executive Pa~-
Plan during the term of this resolution.
B. July 1988 Wage Adjustments. Effective July 3, 1988, the
E-step salaries for the participants in the Executive Pay Plan
shall be adjusted by 5%, with the exception of the salaries f~r
Building Officer, Director of Community and Economic Development,
Director of the Municipal Airport and the Director of Personnel
which shall be adjusted by 7%.
C. January 1988 Wage Adjustments. Effective January 1,
1989, the E-step sal~ries listed above shall be increased by 2%.
D.
city Payment of Employee contribution to PERS.
All
participants in the Executive Pay Plan shall receive full City
payment of the employee contribution to PERS.
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E. Hours of Work and Overtime. Participants in the
Executive Pay Plan are exempt employees under the Fair Labor
standards Act, work during normal business hours of the city and,
in addition, devote whatever time is necessary to accomplish the
work of their offices without overtime compensation.
participants in the Executive Pay Plan may not accrue
compensatory time. However, the City Manager's Office
Administrator and the Council Office Administrator may receive
overtime pay when work performed outside the normal business
house of the City is also clearly outside the scope of their
assigned departmental responsibilities.
F. Performance Based Compensation. The city Manager or his
designee shall evaluate the performance of participants in the.
Executive Pay Plan annually. The evaluation shall be made no
later than 45 days following the end of the fiscal year. Said
evaluation shall include an assessment of general management
skills and specific accomplishments of each individual employee.
The city Manager or his designee shall meet with each individual
employee to discuss the evaluation and shall establish mutually
agreed upon performance criteria upon which the following year's
evaluation shall be based. The oral evaluation shall be followed
by a written evalua~ion within 10 working days if the employee so
requests or if the city Manager or his designee deems it
advisable.
When, in the opinion of the City Manager, the capabilities and
accomplishments of an individual employee have been exceptionally
meritorious, a cash payment of 1% to 10% of that employee's
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annual salary on June 30 of the fiscal year for which performance
is being evaluated shall be made. The bonus shall be paid no
later than 30 days following the date of the evaluation. Said
payments shall be regarded as one time bonuses and shall not
become part of the employee's base salary.
subject to retirement contributions.
Said payments are
A merit pool not to exceed 7% of the base salaries of the
participants in the Executive Pay Plan shall be established
annually from which any and all said payments shall be made.
Nothing herein shall be construed as requiring that all pooled
funds be distributed in any year.
If an employee recommended for a cash payment prefers, the Cit~:
Manager may provide paid time off in lieu of all or part of the
cash payment provided that the value of the above alternative
shall not exceed the cash payment originally proposed and the
Itmerit pooll! shall not be considered to be increased by virtue of
election of this alternative.
If, in the opinion of the City Manager, no cash payment or paid
time off incentive is warranted by an employee's performance, the
employee shall ~ave the opportunity to present, within 10 days of
notification that np payment is due, additional information that
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might alter the City Manager's decis ion.
The decision of the
city Manager, after consideration of any such additional
information, shall be final and no appeal may be taken therefrom.
It is expressly understood by participants in the Executive Pay
Plan that the performance-based payments described in this
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section do not constitute a generally granted increase under
Section 1100 of the City Charter and Section 2105E of the
Municipal Code, and that denial of such payments does not
constitute a demotion.
G. Oeferred Compensation. participants in the Executive
pay Plan who participate in the City'S Oeferred Compensation Plan
shall receive from the City an amount equal to the amount that
the employee is contributing toward the Deferred Compensation
Plan, to a maximum of $200.00 per month.
Effective July ~, 1988 on behalf of each participating employee
for whom the City contributes $200 to the Deferred Compensation
Plan, the city shall contribute an additional $125 per month t~:
the Plan without regard to any increased contribution by the
employee.
H. Annual Physical Exam. participants in the Executive Pay
Plan shall receive an annual physical examination at City
expense. Participants may use their own personal physician for
this physical provided that the cost does not exceed the cost of
the city-offered program.
I. Mental- Health Insurance. Participants in the Executive
Pay Plan shall receive mental health insurance coverage at city
expense.
J. Long Term Disability Insurance. Participants in the
Executive Pay Plan shall receive long term disability insurance
coverage at City expense. Subject to the usual provisions and
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exclusions of such insurance plans, the coverage shall be for 60%
of salary after a 60 day elimination period.
K. Heal th and Dental Insurance. The City shall pay the
full premium of existing fee-far-service or health maintenance
organization (HMO) coverage for participants in the Executive Pay
Plan and eligible dependents.
L. Life Insurance. Participants in the Executive pay Plan
shall receive $100,000 term life insurance at City expense.
M.
Retiree Medical Insurance.
participants in the
Executive Pay Plan whose combined retirement age and years of
City service equals or exceeds 70 shall be entitled to a
City-paid medical insurance plan upon retirement. For eligible'
retirees who are between ages 65 and 70, that plan shall be a
Medicare-supplement plan.
The City shall pay the premiums for the retiree only. Payments
shall cease when the retiree reaches age 70.
N.
Management Leave.
participants in the Executive Pay
Plan shall rec~ive 96 management leave hours per fiscal year.
Payment at the e~ployee's base salary rate for any unused
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management leave days shall be payable to the employee upon
termination or within 30 days from the end of the fiscal year in
which the leave days were earned but unused at the salary rate in
effect on June 30 of the year in which they were earned.
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o. Vacation Leave. participants in the Executive Pay Plan
shall receive vacation leave as provided in section 2104H of the
Municipal Code, provided, however, that they may accrue a maximum
of three times their annual accrual rate. In addition, the city
Manager may authorize the accrual of vacation beyond these limits
in individual cases where the employee has been unable to use
vacation due to work demands.
Each employee covered herein shall accrue vacation leave on the
following basis:
1) Following completion of the first six calendar months of
completed service, six working days.
2) Thereafter, up to and including five completed years of'
service, one working day for each completed calendar
month of service.
3) Thereafter, up to and including ten completed years of
serv ice, one and one-quarter ( 1.25) working days for
each completed calendar month of service.
4) Thereafter, up to and including fifteen completed years
of service, one and one-half (1.5) working days for each
completed ?alendar month of service.
5) Upon completion of fifteen years of service and
thereafter, one and three-quarters (1.75) working days
for each completed calendar month of service.
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P.
sick Leave.
participants in the Executive Pay Plan
shall earn sick leave as follows:
1) Upon completion of the first six calendar months of
completed service, six days.
2) Thereafter, one day per completed month of service.
other sick leave provisions shall be as contained in Section
21041 of the Municipal Code except that participants in the
Executive Pay Plan may elect annually to receive a payoff at
their base salary rate for unused sick leave as follows:
Less Than 10 Years Service
10 Or More Years of Service
sick Leave Days sick Leave Days
Used in Fiscal Days Used in Fiscal Days
Year Payable Year Payable
0 9 0 12
1 8 1 11
2 7 2 10
3 6 3 9
4 5 4 8
5 4 5 7
6 3 6 6
7 2 7 5
8 1 8 4
9 0 9 3
10 2
11 1
12 or more 0
A maximum accrual iimit of 130 days of sick leave is applicable
to any employee who has elected payoff at any time during his/her
employment.
Q. Bereavement Leave. Bereavement Leave of not more than
40 hours with pay shall be provided for absence from duty due to
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the death of a member of the employee's immediate family, meaning
spouse,
child,
brother,
sister,
parent,
step-parent,
step-brother,
step-sister,
parent-in-law,
son-in-law,
daughter-in-law, grandparent, grandchild or any relative living
in the same household.
R. ~olidays. The Director of Transportation shall receive
those paid holidays provided in the UTU MOU. The city Librarian
shall receive those paid holidays provided in the Library Guild
and Library Non-Professionals MOU. All other participants in the
Executive Pay Plan shall receive the following paid holidays:
New year's Day January 1
Martin Luther King'S
Birthday Third Monday in January
Lincoln's Birthday February 12
Washington's Birthday Third Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Thanksgiving Day Fourth Thursday in November
The Friday following Thanksgiving Day
The Half-Day Immediately Before Christmas Day
Christmas Day December 25
The Half-Day Immediately Before New Year's Day
One Floating Holiday
All Other Holidays Declared by the City Council
If the floating holiday is not taken off by June 30, it shall be
paid off in July of the new fiscal year at the rate in effect at
the end of the prior fiscal year.
S. Overpayment Remedy. Participants in the Executive Pay
Plan shall reimburse the City for any overpayment of wages or
benefits.
said reimbursement shall not be required until the
City notifies the affected employee in writing.
Reimbursement
may be accomplished by a lump sum deduction from the next payroll
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warrant issued to the employee following notification, or by
other reasonable repayment method mutually acceptable to the
employee and the City, except that lump sum deduction shall be
required if the next payroll warrant issued to the employee is
the final or termination warrant.
T.
Tuition Reimbursement.
The City will budget annually
sufficient funds to provide each permanent line-item employee of
the Executive Pay Plan tuition and required study material
reimbursement for career improvement or job enhancement courses
approved
by
the
City
Manager
or
authorized
designee.
Reimbursement shall equal the total cost of tuition (exclusive of
lodging and meals) and the total cost of required study.
materials, provided however, that:
A. The maximum annual amount of reimbursement per individual
employee shall not exceed one thousand dollars ($1,000).
B. The course of study must be approved in advance by the City
Manager or authorized designee.
C. The course must be directed to qualifications for an
employment position represented in the City work force or to
enhancement of current job skills.
D. The employee must exhibit some reasonable expectation of
qualifying for the new position upon successful completion
of the study course if that was the reason for the course.
E. Reimbursement shall be made upon successful completion of
the pre-authorjzed course and upon presentation of receipts
and proof of satisfactory course completion.
F. In no event shall the City'S reimbursement be reduced when
there is an outside source of aid except in those cases
where the aid from any outside source, plus the normal City
reimbursement, exceeds the cost of tuition and study
material for the approved study course.
G. only employees who have completed a probationary period with
the City shall be eligible for this program.
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H. Courses for which tuition reimbursement will be made must be
taken on the employee's time or on authorized vacation
leave.
SECTION 3:
This Resolution shall be effective for the
period July 1, 1988 to June 30, 1989.
SECTION 4: The City Clerk shall certify to the adoption of
this resolution and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
(execreso)
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Adopted and approved
th~. day of jJ;S ~
~ V7 clI' ,I /-
r~ . ~ayor
1988.
I hereby certify that the foregoing Resolution No.7673 (CCS)
was duly adopted by the city council of the City of Santa Monica
at a meeting thereof held on August 9, 1988, by the following
council vote:
Ayes:
Councilmembers: F1nkel, Jenn1ngs, A. Katz, Zane,
Mayor conn
Noes:
Councilmembers: None
Abstain:
Councilmembers: None
Absent:
Councilmembers: H. Katz, Reed
ATTEST:
'l,~I!J-
-;J ~ city Clerk