SR-603-001 (7)
~--- ----~~---
~ '
.
~CJ3--.po/
COKFIDE~TIAL ITEM FOR DISCUSSIO~ DURIKG CLOSED SESSION.
~y G3)
f-rT
{; 50 d3
P E : S E r-l : p
CouncIl MeetIng: August 14, 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 PIan to
prOVIde
alternatIves
to
the
performance
IncentIve
program
prevIously adopted.
BACKGROUND
Two years ago the CIty CounCIl adopted a performance-based
IncentI ve program for members of the Execut 1. ve Pay Plan. The
program prOVIdes a pool of funds equl~alent to 4.5% of the base
salar les of the Executive Pay Plan members from WhICh the City
Manager may recognIze exceptlonal merIt by grantIng a cash
payment of one to ten percent of each employee's annual salary.
Several ExecutIve Pay plan members have expressed Interest In
non-cash al terna t 1 ves to the current plan, WhICh would benef I t
both the employee and the Clty. One alternative IS paId tIme off
In lieu of all or part of the bonus recommended.
Others have
expressed Interest In acqUIrIng HP 110's (the portable HP)
through the CIty In lIeu of an eqUIvalent cash bonus.
- 1 -
These alternat~ves benefIt the Interested employees In that theIr
performance reward IS realIzed In the form most meanIngful to
each.
The CIty benefIts from the paId time off alternatIve In
that the PERS paId on a cash bonus IS saved.
A determInation
regardIng whether PERS must be paId on a non-cash award such as
the HP1IO, must be made by the PERS system.
That rulIng wIll
take approximately a month to obtaIn.
DependIng
on the
employee's current PERS benefIt level, savIngs could range from
approxImately 14% to 41% of the cash value of the bonus.
An addItional benefit to the CIty from the HP 110 alternatIve 1S
the Increased sophIstIcatIon In the application of computer
technology to problem solVIng that wIll result from greater hands
on experIence by executive staff.
The amended ResolutIon also corrects an error in the pe~centage
Increases for AssIstant CIty Manager,
Director of Gene~al
SerVIces,
DIrector of TransportatIon and ChIef of PolIce.
Although the percentages IndIcated were Incorrect, the monthly
salary amount shown In the orIginal ResolutIon was correct and is
not changed by the amendnent.
RECOMt1ENDATION
It IS recommended that CounCIl adopt the attached ResolutIon
amendIng ResolutIon No. 6386 (CCS), the ExecutIve Pay Plan, to
Include alternatIves to the performance incentIve program.
Prepared By:
Susan E.
Dlrector
-" /7 /~
t' cCarth~---.kV'
~ /J
of Perso."1nel
- 2 -
RESOLUTION NUMBER
(CIty CounCIl Serles)
A RESOLUTION OF THE CITY COUNCIL
~
OF THE CITY OF SANTA MONICA
AMENDING THE EXECUTIVE PAY PLAN
WHEREAS, the ExecutIve pay Plan adopted by Resolutlon No.
6753 (CCS) has been In effect for one yeari and
WHEREAS, certdln of Its provISIons reqUlre updating to
reflect organIzatIonal changes and to update compensation and
beneflt provIslons.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SA~TA
MONICA DOES RESOLVE AS FOLL8~S:
SECTION 1:
The CIty Councll does hereby establIsh an
Executive Pay plan WhICh defInes the wages and benefits of the
CIty'S Department Heads and those members of the EXecutlve Staff
of the Clty Manager's Office who choose to represent themselves
IndIvIdually under OrdInance Number 801.
SECTION 2: The elements at the ExecutIve Pay Plan shall be
as follows:
A. partiCipants. PartlClpation In the ExecutIve pay Plan
shall be limIted to the ASSistant City Manager, Deputy CIty
- 1 -
Manager,
BUIldIng
OffIcer,
CIty
EngIneer,
CIty
LIbrarIan,
DIrector of CIVIC AudItorIum, DIrector of CommunIty and EconomiC
Development, DIrector of Finance, Director of General ServIces,
Director
of
personnel,
DIrector
of
PlannIng,
Director
of
Recrea t Ion and par~s, DIrector of Transportation, FIre Chle f ,
Police
ChIef,
DIrector
of
MunICIpal
AIrport,
and
HIS
AdmInIstrator.
In
addItIon,
The
CIty
Hanager's
OffIce
AdmInistrator, CounCil OffIce AdmInIstrator, ASSIstant to the
CIty Manager, PubliC I~formatlon Officer, CommunIty LIaIson,
Budget AdmInistrator and SenIor AdmInIstratIve 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 OrdInance No. 801.
Members of the City Manager's ExecutIve 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.
IndIVIduals who exerCIse that right cannot
agaIn become partICIpants In the ExecutIve Pay Plan durIng the
term of thIS ResolutIon.
B. Jul~ 1, 1984 wage AdJust~ents.
EffectIve July 1, 198~,
the E-step salaries for the partICIpants In the Executlve Pay
Plan shall be adjusted as follows:
ASSistant CIty Manager
Deputy City Manager
BUIldIng Officer
CIty EngIneer
Clty LibrarIan
DIrector of CIVIC AudItorIum
Dlrector of CommunIty & Econo~lc Development
12.5%(to $56l7)
3%
3%
3%
3%
3%
3%
- 2 -
Dlrector of FInance
DIrector of General SerVices
Dlrector of Personnel
DIrector of Plannlng
Dlrector of RecreatIon and Parks
Director of Transportatlon
FIre Chlef
Pollee C!nef
DIrector of MunIcIpal Alrport
MIS Administrator
C1ty Manager's office AdmInIstrator
CounCIl OffIce AdmInIstrator
ASs1stant to the Clty Manager
PublIC Informat1on OffIcer
CommunIty LIa1son
Budget AdmInIstrator
Senlor 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 salarIes of Executive pay Plan part1clpants
shall be aaJusted by the percentage Increase In the ReVIsed
Consumer PrIce Index (For Urban Wage Earners and Clerlcal
Wor~ers, 1967=lOO) for Los Angeles-Long Beach-AnaheIm, publIshed
by the UnIted States Department of Labor, Bureau of Labor
StatIst1cs, from AprIl 1, 1984 to March 3l, 1985, prOVIded,
ho\.,1ever, that the percentage wage adjustment shall not be less
than three percent (3%) or greater than fIve percent (5%).
D.
CIty
pa:;ment
of
Ernl2.loyee
Contrlbutlon
to PERS.
PartICIpants 1n the ExecutIve Pay plan who currently receIve CIty
payment of the employee contr1butlon to PERS shall contInue to
receIve that benefIt.
E.
Hours of Work and OvertIme.
Partlc1pants 1n the
ExecutIve Pay Plan work dur1ng the norillal bUSIness hours of the
Clty and, In addItIon, devote whatever time 1S necessary to
accomplIsh
the
work
of
theIr
offIces
WI thout
overtIme
compensatlon.
partICIpants In the ExecutIve Pay plan may not
- 3 -
accrue compensatory tIme. However, the Clty Manager's OffIce
Admlnlstrator and the Councll Office AdminIstrator may receIve
overtIme pay when work performed outSIde the normal bUSlness
hours of the CIty IS also clearly outSIde the scope of theIr
assIgned Departmental responslbIlltles.
F.
Performance Based CompensatIon.
The CIty Manager 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 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 crIterla upon WhICh the follOWIng year's
evaluatIon shall be based. The oral evaluation shall be followed
by wrItten evaluatIon WIthIn ten (lO) workIng days If the
employee so requests or If the CIty Manager or hIS deSIgnee deems
It adVIsable.
When, In the OpI nIon of the CI ty Nanager 1 the capabllI tIes and
accomplIshments of an IndIVIdual employee have been exceptIonally
mer I tor IOUS a cash payment of one percent (l % ) to ten percent
(10%) of that employee's annual salary on June 30 of the flSCctl
year for WhICh performance IS beIng evaluated shall be made. The
bonus shall be paId no later than 30 days tollowlng the date of
the evaluat~on. SaId paY'1lents shall be regaI:"ded as one tIme
bonuses and shall not become part of the employee's base salary.
SaId payments are subject to ret1rement contrlbutlons.
- 4 -
A mer 1 t pool not to exceed 4.5% of the base salarIes of the
partICIpants In the ExecutIve Pay Plan shall be established
annually from VlhICh any and all sa1.d 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 City
Manager may provIde the followIng In lIeu of all or part of the
cash payment:
(1) PaId tIme off
(2) Hewlett Packard Hardware and/or compatIble software.
The employee shall execute an approprIate release
IndIcatIng that the CIty has no responsIbIlIty for
warrantIes or repaIrs of such hardware or software.
provIded that the value of the above alternatIves shall not
exceed the cash payment orIgInally proposed and that the "merIt
pool" shall not be consIdered to be Increased by VIrtue of
electIon of these alternatIves.
If, In the opinIon of the CIty Manager, no cash paymen t or
alternatIve IncentIve IS warranted by an employee's performance,
the employee shall have the opportunIty to present, wIthIn ten
days
of
notIfIcatIon
that
no
paY'11ent
IS
due,
addItIonal
Information that mIght alter the CIty ~.lanager's deCISIon. The
deCISIon of the CIty fllanager, after conSIderatIon of any such
addItIonal lnformatlon, shall be fInal and no appeal may be taken
therefrom.
- 5 -
It IS expressly understood by partIcipants In the ExecutIve Pay
Plan that the performance-based payments descrIbed 1n thls
sectIon do not constl tute a generally granted Increase under
SectIon 1100 of the CIty Charter and SectIon 2l05E of the
...
MunlCIpal Code, and that denIal of such payments does not
constItute a demotion.
G.
Deferred compensatIon.
Part IC Ipants In the Executl ve
Pay Plan who partIcipate In the Clty'S Deferred 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 QaXlmUm of ~75.00 per month.
H.
Annual Phys~s:al ExaTI'.
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 Tern Dlsabl~ Insurance.
Part IC Ipants In the
ExecutIve Pay plan shall receIve long term dIsabilIty Insurance
coverage at CIty expense.
Subject to the usual provlslons dnd
exclUSIons of such Insurance plans, the coverage shall be for 60~
of salary after a 180 day 811ffiIoatlon perIod.
K.
Heal th and Dental Insurance.
The Cl ty shall pay the
fu II premlum of ex 1st 109 fee tor serv lee or heal th mal n tenance
organIzatIon (HMO) coverage for partICIpants In the Executlve Pay
- 6 -
plan and elIgIble dependents.
In FIscal Year 1985-86, the CIty
may raIse the fee for serVIce deductIble to a maXImum of S200 per
lndlvidual facrlly member and may reqUIre that the employee
contrIbute the dIfference In premIum between co-payment HMO's and
..
non-copayment HMO's.
L.
Man~gement Leave.
partICIpants In the ExecutIve pay
plan shall receIve SIX management leave days per fIscal year.
payment at the employee's base salary rate for any unused
management leave days shall be payable to the employee upon
termlnatlo~ or wlthln thIrty days from the end of the flscal year
In WhICh the leave days were earned by unused.
M. Vacatlon Leave. PartICIpants 1n the ExecutIve Pay plan
shall receIve vacatIon leave as prOVIded In SectIon 2104H of the
MunICIpal Code, provlded, however, that the CIty Manager may
au thorI ze the accrual of vacatIon beyond the llfn ts of Sect Ion
2104H In IndIVIdual cases where the eNployee has been unable to
use vacatIon due to work demands.
N .
Slck Leave.
partICIpants In the ExecutIve Pay Plan
shall earn SIck leave as follows:
(1) Upon completion of 51X months of serVIce, SIX days.
(2) Thereafter, one day per completed month of serVIce.
Other SIck leave prov IS Ions shall be as con ta 1 ned In Sect Ion
2l04I of the MuniCipal Code except that partlclpants In the
Execut 1 ve Pay Plan may elect annually to rece i ve a payoff at
theIr base salary rate for unused SIck leave as follows:
- 7 -
Less Than 10 Years SerVlce
10 or More Years SerVlce
Sick Leave Days
SIck Leave Days
Used In F1scal
Year ~
o
1
2
3
4
5
6
7
8
9
Used
1n Flscal
Year
o
1
2
3
4
5
6
7
8
9
10
11
12 or more
Days payable_
12
II
10
9
8
7
6
5
4
3
2
1
o
A maX1mum accrual llmlt of one-hundred and thIrty (130) days of
Days Payable
9
8
7
6
5
4
3
2
1
o
sick leave IS applIcable to any employee who has elected payoff
at any tIme durIng hlS or her employment.
those
pald
o. HOlIdays. The Dlrector of Transportatlon shall recelve
of
the
holIdays
provIded
for
the
employees
The Clty Llbrarlan shall receIve
TransportatIon Department.
Non-ProfesSIonals.
those paId ho11days provIded for the Llbrary GUIld and LIbrary
Plan shall rece:ve the followIng pald holIdays:
All other partlc IpClnts 10 the ExecutJ.. ve Pay
New Year's Day January 1
Martln Luther K1ng's BIrthday January 15
Llncoln's BIrthday February 12
Washlnyto~ls B1rthday Thlrd Monday In February
MemorIal Day Last Monday In May
Independence Day July 4
Labor Day F~rst Monday 1n September
Thanksglvlng Day Fourth Thursday In November
The FrIday follOWIng ThanksgIVIng Day
The half-day lmmedlately 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 Councll
- 8 -
<>
P.
Overpayment Remeqy.
partIcipants 1n the Executlve Pay
plan shall reImburse the CI ty for any overpayment of wages or
benefIts.
SaId reImbursement shall not be requIred unt1l the
CIty notlf1es the affected employee 1n wrItIng.
Re lInbursemen t
..
may be accomplIshed by a lump sum deductIon from the next payroll
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 1S
the fInal or terminatIon warrant.
Q.
RetIrement
BenefIt.
EffectIve
July
l,
1984
and
extendIng
through March 31,
1985,
any part1cIpant
In the
ExecutIve Pay Plan who has attaIned age fIfty (50) and who has
twe~ty(20) or more years of serVIce wlth the CIty and who takes a
serVIce retIrement durIng toe above noted perloa, shall be
el1g Ib1e for City payment of $137.20 per month to\7ard heal th
Insurance for the retIree and his/her elIgIble dependents for a
perIod of fIve years follOWIng the retIrement.
SaId pay~en t
shall be made to the CIty'S group Insurance carrIer If the
employee remaIns enrolled, or, upon presentatIon of proof of
alternate coverage, dIrectly to the employee, In Which case the
amount
contr1buted
by
the
City
shall
be
not
more
than
$137.20/rronth and shall not exceed the actual cost of Insurance
to the employee.
The declSion to retire must be voluntary and
the employee must receIve and acknowledge counsellIng regardIng
the effect of saId ret1re~ent on his/her retlrement benefIt
levels.
- 9 -
SECTION 3.
ThIS resolutIon shall be effectIve for the
perIod of July l, 1984 to June 30, 1986. Effectlve July 1, 1986,
thIS ResolutIon shall be deemed repealled and of no further force
and effect.
SECTION 4. Resolution Number 6753 IS hereby repealled.
SECTION 5. 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:
RUBERT I4. I'1YERS
Clty Attorney
- 10 -