SR-603-001 (6)
6t/ 3-00/
1~ 4
7- '-1-- rfj
PE:SEM:p
CouncIl MeetIng: August 28, 1984
Santa MonIca, CalifornIa
TO:
Mayor and City CouncIl
FROM:
CIty Staff
SUBJECT:
ExecutIve pay Plan Amendment
INTRODUCTION
ThIS report requests that CounCIl amend the Executive Pay plan to
provlde an alternatIve to the performance IncentIve program
previously adopted.
BACKGROUND
Two years ago the CIty CounCIl adopted a performance-based
IncentIve program for members ot the ExecutIve Pay Plan. The
program prOVIdes a pool of funds eqUIvalent to 4.5% ot the base
salarIes of the Executive pay plan members from WhICh the Clty
Manager may recognIze exceptIonal merIt by grantIng a cash
payment of one to ten percent of each employee's annual salary.
Several Execut I ve Pay plan members have expressed Interest In
paid tIme off In lleu of all or part of the bonus recommended.
ThIS alternatIve benefIts the Interested employees In that theIr
performance reward IS reallzed In the most meaningful form. The
City benefIts from the paId tIme off alternatIve In that the PERS
paId on a cash bonus IS saved.
DependIng on the employee's
- 1 -
current
PERS
benefit
level,
savIngs
could
range
from
approxImately 14% to 41% of the cash value of the bonus.
The amended ResolutIon also corrects an error In the percentage
Increases for ASSIstant CIty Manager,
Director of General
SerVIces,
Director of Transportation and ChIef of polIce.
Al thouyh the percentages IndIcated were Incorrect, the monthly
salary amount shown In the orIgInal ResolutIon was correct and IS
not changed by the amendment.
RECOMMENDATION
It IS recommended that CouncIl adopt the attached ResolutIon
amending ResolutIon NO. 6886 (CCS), the ExecutIve Pay Plan, to
Include a paId time off alternatIve to the performance IncentIve
program.
Prepared By: Susan E. McCarthy ~.~
DIrector of Personnel
- 2 -
BEFORE DISTRIBUTION CHECK CONTENT OF ALL FO~ CITY C~ERK'S ACTION
DISTRIBUTION OF RESOLUTION # ! .J:--: ORDINANCE #
CouncIl Meeting Date y-L/
Agenda Item it r....1l G~~
~
.-
I
Was It amended?
,./YVV
E J r .R"L &-
-
,
VOTE' AffirmatIve'
Negative.
Abstain.
Absent:
(1~
ORIGINAL to be SIgned, sealed and filed In Vault.
1
-
)
~
"
..
.
"
~
)
DISTRIBUTION:
~EWSPAPER PUBLICATION (Date:
Introduced:
Adopted:
II ALWAYS Pl'BLISH ProPTED ORDINANCES
Cross out Attorney's approval
Do back sheet on Word Processor
)
)
Department originating staff report (
Management Serv~ces Lynne Barrette urdinances only
.v--
.'-
Agency mentIoned In document or staff report
(certIfIed?)
~
)
Subject fIle (agenda packet)
Counter file
Others:
AIrport
Parking Auth.
AudItorum
Personnel
BuildIng Dept.
Planning
EnVIron. Serv
PolIce (en-
forcement?)
FInance
PurchaSIng
FIre
Recr/Parks
General Servo
TransportatIon
LIbrary
Treasurer
Manager
".
)
.
SEi\D FOUP COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS, Attn Peter Maclearie
12 0 ~,l3.~n 'tvc:et
AV0~1 ~~w, Je~se~_07717_, ,
SEND FOUR COPIES OF Al.L ORfHNAN{;F~-TO:
PRESIDING JUDGE
S<\~TA \10~ICA ~1UNICIPAL COURT
1 725 ~fAIN STREET
SANTA MONICA, CA 90401
)
,
)
,
1
1
i
*Check code Sections before sendlng.
TOTAL COPIES
J
RESOLUTION NUMBER 6905(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.
6753 (Ces) has been In effect for one year; and
WHEREAS, certain of Its prOVISions reqUire updating to
reflect organizational changes and to update compensatIon and
benefit 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 Number 80l.
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, Deputy CIty
- 1 -
Manager,
BUIldIng offIcer,
CIty
EngIneer,
CIty
L1brarIan,
DIrector of CIVIC Auo1torlum, DIrector of CommunIty and EconomIC
Development, DIrector of FInance, DIrector of General SerVIces,
DIrector of
personnel,
DIrector
of
PlannIng,
DIrector of
RecreatIon and Parks, Director of TransportatIon, FIre ChIef,
PolIce
Chief,
Director
of
MuniCipal
AIrport,
and
MIS
Administrator.
In
add1tlon,
The
CIty
Manager's
OffIce
AdmInIstrator, CounCIl OffIce AdmInIstrator, ASSistant to the
City Manager, PublIC InformatIon Off1cer, CommunIty Liaison,
Budget AdmInistrator and Senior Admln1stratIve Analysts on the
CIty Manager's staff may partICIpate In the ExecutIve Pay Plan If
they choose to IndiVidually represent themselves under the terms
of Ord1nance No. 801.
Members of the CIty Manager's ExecutIve Staff who choose to be
IndIVIdually represented and become partiCIpants In the Execut1ve
Pay Plan shall have the r1ght to stop partICIpatIon In the
Executive
pay plan
and
to
request
representatIon
by an
approprIate unIt.
IndiVIduals who exerCIse that r1ght cannot
agaIn become partiCipants 1n the Execut1ve Pay plan dur1ng the
term of thIS Resolution.
B. July l, 1984 Wage AdJustments. EffectIve July 1, 1984,
the E-step salarIes for the part IC Ipants In the ExecutIve pay
Plan shall be adjusted as follows:
ASSistant CIty Manager
Deputy City Manager
BUildIng OffIcer
CIty EngIneer
CIty Librarian
DIrector of CIVIC AUGltorlum
DIrector of CommunIty & EconomIC Development
12.5%(to $5617)
3%
3%
3%
3%
3%
3%
- 2 -
DIrector of FInance
DIrector of Gene~al SerVIces
DIrector of Personnel
DIrector of PlannIng
DIrector of RecreatIon and Parks
Director of Transportatlon
FIre ChIef
Pol~ce Chief
Director of Mun~clpal AIrport
MIS Adm~nlstrator
CIty Manager's Office AdmInIstrator
CounCIl Office Adm~nlstrator
ASSIstant to the Clty Manager
PublIC Information OffIcer
CommunIty LIaIson
Budget AdmInistrator
SenIor AdmInIstratIve Analyst
3%
8.4%(to $5617)
3%
3%
3%
9.3%(to $5150)
3%
9.3%{to $5617)
3%
3%
3%
3%
3%
3%
3%
3%
3%
c.
Subsequent Annual Wage AdJustments.
EffectIve July 1,
1985, the E-step salarles of ExecutIve Pay plan particIpants
shall be adJusted by the percentage Increase In the ReVIsed
Consumer Prlce Index (For Urban Wage Earners and ClerIcal
Workers, 1967=100) for Los AngeleS-Long BeaCh-AnaheIm, publIshed
by the United States Department of Labor, Bureau of Labor
StatIstICS, from AprIl 1, 1984 to March 31, 1985, prOVIded,
however, that the percentage wage adJustment shall not be less
than three percent (3%) or greater than five percent (5%).
D.
CIty
Payment of
Employee
ContributIon
to PERS.
PartICIpants In the ExecutIve Pay plan who currently receive City
payment of the employee contributIon to PERS shall contInue to
receIve that benefIt.
E.
Hours of Work and OvertIme.
PartiCIpants In the
ExecutIve Pay Plan work durIng the normal bUSIness hours of the
CIty and, In addItIon, devote whatever tIme IS necessary to
accomplish
the
work
of
theIr
offIces
WIthout
overtIme
compensatIon.
Part iC Ipants In the Executive Pay Plan may not
- 3 -
accrue compensatory tIme. However, the City Manager I S Off Ice
AdmInIstrator and the Councll OffIce AdminIstrator may receIve
overtIme pay when work performed outSIde the normal bUSIness
hours of the CIty IS also clearly outSide the scope of theIr
assIgned Departmental responsIbIlItIes.
F. Performance Based Compensation. The CIty Hanager or
hIS desglnee 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 any fiscal year. SaId
evaluatIon shall Include an assessment of general management
SkIlls and specltlc accomplishments of each IndIVIdual employee.
The CIty Manager or hIS deSIgnee shall meet With each IndIVidual
employee to dlSCUSS the evaluatIon and shall establIsh mutually
agreed upon performance crIterIa upon WhICh the follOWIng year's
evaluatlon shall be based. The oral evaluatIon shall be followed
by wrItten evaluatIon WIthIn ten (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 capablll tIes and
accomplishments of an IndiVIdual employee have been exceptIonally
merI torlous a cash payment of one percent (1%) to ten percent
(10%) of that employee's annual salary on June 30 of the fiscal
year tor WhICh performance IS beIng evaluated shall be made. The
bonus shall be pald 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.
SaId payments are subject to retIrement contrIbutIons.
- 4 -
A mer~t pool not to exceed 4.5% of the base
partIcIpants In the ExecutIve pay Plan shall
annually from wh~ch any and all saId payments
Noth~ng hereIn shall be construed as reqUiring
funds be dIstrIbuted In any year.
salar les of the
be establ~shed
shall be made.
that all pooled
If an employee recommended for a cash payment prefers, the C~ty
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
"merIt pool" shall not be consldered 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 have the opportunI ty to present, WI thIn ten days
of notI f IcatIon that no payment IS due, add 1 t lonal InEormat~on
that mIght alter the CIty Manager's decISIon. The deCISIon of
the C~ty Manager, after consIderation of any such addItIonal
lntormatlon, 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 descr~bed ~n thIS
sectIon do not constItute a generally granted Increase under
SectIon 1100 of the CIty Charter and SectIon 210SE of the
MunICIpal Code, and that denIal of suCh payments does not
constItute a demotIon.
G. Deferred CompensatIon. partICIpants In the ExecutIve
pay Plan who partICIpate In the CIty'S Deferred CompensatIon plan
- 5 -
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 ~75.00 per month.
H. Annual PhysIcal Exam. partICIpants In the Executive
Pay Plan shall receive an annual physical examInatIon at CIty
expense.
I. Mental Health Insurance. partiCIpants In the ExecutIve
Pay Plan shall receive mental health Insurance coverage at CIty
expense.
J. Long Term DIsabIlIty Insurance. Part IC Ipants In the
Execut I ve pay Plan shall rece 1. ve long term dI sablll ty Insurance
coverage at City expense. SubJect to the usual proviSions and
exclUSIons of such Insurance plans, the coverage shall be for 60%
of salary after a 180 day elImInatIon perIod.
K.
Heal th and Dental Insurance.
The Cl ty shall pay the
full preml.um of eXIstIng fee for serVIce or health maintenance
organIzation (HMO) coverage for partiCipants In the ExecutIve Pay
Plan and eligIble dependents. In Fiscal Year 1985-86, the City
may raIse the tee for serVIce deductible to a maXimum of ~200 per
IndiVidual famIly member and may reqUIre that the employee
contrIbute the dIfference In premIum between co-payment HMO'S and
non-copayment HMO's.
plan
L. ManatJement
shall receive
Leave. PartiCIpants
SIX management leave
In the Executive Pay
days per fiscal year.
rate for any unused
Payment at the employee's base salary
- 6 -
management leave Gays shall be payable to the employee upon
termlnat10n or wlthln th1rty days from the end of the fIscal year
1n Wh1Ch the leave days were earned by unused.
M. Vacat~on Leave. PartICIpants 1n the Execut1ve pay Plan
shall rece1ve vacation leave as provIded in SectIon 2104H of the
Munl.cl.pal Code, provlded, however, that the City Manager may
authorize the accrual of vacatIon beyond the lImits of SectIon
2104H In Indlvldual cases where the employee has been unable to
use vacatIon due to work demands.
N.
SIck Leave.
Partlclpants 1n the Executlve Pay plan
shall earn sick leave as follows:
(1) Upon completion of SIX months at serVIce, SIX days.
(2) Thereafter, one day per completed month of serv~ce.
Other sick leave provlslons shall be as contained ln 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 Servl.ce
Sick Leave Days
Sick Leave Days
Used In Fiscal
Year
o
1
2
3
4
5
6
7
Days Payable
9
8
7
6
5
4
3
2
Used In FIscal
Year
o
I
2
3
4
5
6
7
- 7 -
Days Payable
12
II
lO
9
8
7
6
5
8
9
1
o
8
9
10
11
12 or more
.J
3
2
1
o
A maXImum accrual limIt of one-hundred and thIrty (130) days of
SICK leave IS applIcable to any employee who has elected payoff
at any time during hIS or her employment.
o. HOlIdays. The Director of Transportatlon shall recelve
those
paid
holldays
provIded
for
the
employees
of
the
Transportation Department.
The City LibrarIan shall receIve
those paid holldays provlded for the LIbrary GUIld and LIbrary
Non-ProfesSIonals.
All other partiCipants ~n the Executlve Pay
Plan shall receive the follOWIng paId holIdays:
New year's Day January 1
Martin Luther KIng's BIrthday January 15
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
ThanksglvIng 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 Oeclared by the CIty CounCIl
P. overpayment Remedy.
PartICipants In the ExecutIve Pay
Plan shall reImburse the Clty 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
warrant Issued to the employee follOWIng notltlcatlon, or by
other reasonable repayment method mutually acceptable to the
- 8 -
employee and the C1 ty, except that lump sum deductIon shall be
requIred If the next payroll warrant Issued to the employee IS
the fInal or termInatIon warrant.
SECTION 3.
Th~s resolut~on shall be effect1ve for the
period of July 1, 1984 to June 30, 1986. Effective July 1, 1986,
thiS ResolutIon shall be deemed repealled and of no further force
and effect.
SECTION 4.
ResolutIon Number 6753 and 6886 are hereby
repealled.
SECTION 5. The CIty Clerk shall certIfy to the adoptIon of
th1s ResolutIon and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO fORM:
R~M:~ ~
City Attorney
-
- 9 -
Adopted and approved this 4th day of September, 1984.
~-
--/ ff
___~S
Mayor
I hereby certify that the foregoIng ResolutIon No. 6905(CCS)
was duly adopted by the CIty Council of the City of Santa MonIca
at a meetIng thereof held on September 4, 1984 by the followIng
Councll vote:
Ayes: Councllmembers: EpsteIn, Jennings, Press, Reed,
Zane and Hayor Edwards
Noes: Councllmembers: None
Absent: Councllmembers: Conn
AbstaIn: CouncIlmembers: None
ATTEST:
~. ))J~
CIty Clerk