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council Meeting: August 13, 1991
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, the executive staff of the city Manager's Office and
the city Clerk 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 PERS contribution for payments made to the City's deferred
compensation plan; 3) term life insurance; and 4) management leave days
subject to pay off. The resolution also deletes five (5) management leave
days not subject to payoff and makes certain equity adjustments.
RECOMMENDATION
It is recommended that Council adopt the attached resolution amending the
Executive Pay Plan.
Prepared By: Karen Bancroft, Director of Personnel
Attachment: Resolution amending Santa Monica Executive Pay Plan)
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BEFORE DISTRIBUTION CHECK CONTENT OF
~ISTRIBUTION OF RESOLUTION # P~J?~
Council f1eeting Date WO/~/
Agenda Item i /C?--LJ
Was it amended? No
ALL FO~ CITY CLERK.S ACTION
ORDINANCE #
Introduced:
Adopted:
ALWAYS PUBLISH ADOPTED ORDINANCES
Cross out Attorney's approval
VOTE: Affirmative:
Negative:
Abstain:
Absent: ~~
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to he signed, sealed and filed in Vault.
f)-/
.
NEWSPAPER PUBLICATION (Date: )
Department orig~nat~ng staff report( Laur~e L~eberman)
Ord~nances only for Attorney ( Claudla Thompson)
Management Serv~ces Lynne Barrette ORDINANCES O~Lt
Agency ment~oned ~n document or staff report
(certif~ed? )
2
1
SubJect f~le (agenda packet) 1
Counter f~le 1
\
Others: (Review for departments who need to know) .
Airport parJsing Auth.
Auditorium Personnel I
Building Dept. Planning
ClEO Police
Finance Purchasing
General Servo Recr/Parks
Library Transportation
Manager Treasurer
Fire
SEND FOUR COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS -4
120 Ma1.n Street
Avon, New Jersey 07717
SEND FOUR COPIES OF ALL ORDINANCES TO: 4
Debra Myrick
Santa Monica Municipal Court
1725 Ma~n Street, R00m 118
Santa Mon1.ca, CA 9040l Total Copies
-3
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RESOLUTION NUMBER 8283{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. 8094 (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,
the City Clerk 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 Development, Director of Finance, Director of General
Services, Director of Personnel, Director of Cultural and Recreation
Services, Director of Land Use and Transportation Management, Director of
Transportation, Fire Chief, Police Chief, Director of Municipal Airport,
Director of Information Services and city Clerk. In addition, the City
Manager's Office Administrator, council Office Administrator, Senior
Management Analysts, Management Analysts, and Risk Manager on the City
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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 that right cannot again become
participants in the Executive Pay Plan during the term of this resolution.
The benefits and privileges of employment other than compensation for the
Assistant city Attorney shall be the same as those that are provided or
extended in the Executive Pay Plan. The compensation schedule of the
Assistant City Attorney shall be the same as the compensation schedule
established for Chief Deputy city Attorneys employed in the Deputy city
Attorney III salary range pursuant to Memorandum of understanding between
the city and the Public Attorneys Union.
B. July 1991 Wage Adjustments. Effective July 1, 1991 the E-step
salaries for the participants in the Executive Pay Plan shall be adjusted
by a minimum of 4%, or, if higher, by an amount equal to the percentage
increase in the "cost-of-living" as measured by the Consumer Price Index
(for Urban wage Earners and Clerical Workers, 1967 = 100) for the Los
Angeles-Anaheim-Riverside, California, published by the U.S. Department of
Labor, Bureau of Labor statistics, for the base period of April, 1990 to
April, 1991. However, in no event shall said adjustment exceed 8%.
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In addition to the above adjustment, the-following classifications in the
Executive Pay Plan shall receive an equity adjustment in the amount
indicated:
Director of Finance
2.0%
Director of Cultural and Recreation Services
2.0%
Risk Manager
2.0%
C. 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.
D. 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 hours of the City is also clearly
outside the scope of their assigned departmental responsibilities.
E. 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
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performance criteria upon which the following year's evaluation shall be
based. The oral evaluation shall be followed by a written evaluation
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 lOt of that employee'S 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. said
payments are SUbject to retirement contributions.
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 City 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 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
have the opportunity to present, within 10 days of notification that no
payment is due, additional information that might alter the City Manager's
decision. The decision of the City Manager, after consideration of any
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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 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.
F. Additional or Deferred Compensation. The City shall establish and
maintain a qualified deferred compensation plan under rules and regulations
established pursuant to Section 457 of the Internal Revenue Code. Each
participant in the Executive Pay Plan, at his or her sole discretion, may
defer and have deposited into the city's plan a portion of his or her
compensation up to the maximum amount permitted by law.
Each participant in the Executive Pay Plan shall receive as additional
compensation an amount equal to the maximum yearly amount the participant
may legally defer into the City's deferred compensation plan as of July 1,
1991. This additional compensation shall be considered part of the
participant.s base salary and shall be prorated and paid bi-weekly to the
participant. The participant shall be responsible to pay for any taxes due
on this compensation except that the City shall pay for any PERS
contribution due on this compensation.
G. 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.
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H. Mental Health Insurance. Participants in the Executive Pay Plan
shall receive mental health insurance coverage at City expense.
I. 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 exclusions of such insurance plans, the
coverage shall be for 60% of salary, with said salary not to exceed $8,333
per month, after a 60 day elimination period.
J. Health and Dental Insurance. Effective July l, 1991, the City
agrees to pay up to a maximum $435 per month towards the cost of medical
insurance coverage for employees and eligible dependents provided that
employees covered herein participate in the CitY-Offered medical insurance
programs. The cost of medical insurance coverage will be set at the
beginning of each medical plan year and will be a "composite" monthly
insurance premium derived by dividing the total monthly premium for all
medical plans offered by the City, except the PERS PORAC medical plans or
any other PERS medical plans, by the total number of employees enrolled in
said medical plans as of the beginning of the medical plan year. Any extra
payment required to cover the cost of said medical insurance plans shall be
paid by the employee electing such coverage.
Dental insurance coverage shall be provided at no cost to employees and
their eligible dependents provided that employees covered herein
participate in the City-offered dental insurance programs.
K. Vision Care. The City agrees to provide vision care insurance, at
no cost, to employees covered herein. The City retains the right to select
the provider and to set the levels of coverage for said vision care
insurance. The City also retains the right to change the provider of said
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vision insurance plan and/or the level of benefits provided under that plan
without meeting and conferring.
L. Life Insurance. Each participant in the Executive Pay Plan shall
receive term life insurance at City expense with the amount of said
insurance to be two times the participant's annual salary, rounded to the
nearest one thousand, or $100,000, whichever amount is larger.
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
receive 160 management leave hours per fiscal year. Payment at the
employee's base salary rate for any unused 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.
For employees hired on or after July I, 1991, the management leave hours
will be accrued on a quarterly basis, with one-quarter of the total
allotment for the fiscal year accruing as of the first day of each quarter
of the fiscal year.
O. Vacation Leave. Participants in the Executive Pay Plan shall
receive vacation leave as provided in Section 2104H of the Municipal Code,
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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
service, one and one-quarter (l.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 calendar 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.
At the City Manager's descretion, a new participant in the Executive Pay
Plan, based on the terms and conditions of the participant's previous
employment, may be granted a vacation accrual rate which exceeds that
listed above.
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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.
At the city Manager's discretion, a new participant in the Executive Pay
Plan, based on the terms and conditions of the participant's previous
employment, may be granted a lump sum number of sick leave days upon
his/her employment with the city of Santa Monica.
The use of sick leave shall be defined as in section 2104I of the Santa
Monica Municipal Code, hereby incorporated as if set forth in full herein,
except as follows:
sick leave shall be defined as absence from duty because of the employee1s
illness or off-the-job injury, exposure of the employee to contagious
disease as evidenced by certification from an accepted medical authority,
or illness or injury of any member of the employee's household.
Participants in the Executive pay Plan may elect annually to receive a
payoff at their base salary rate for unused sick leave as follows:
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Less Than 10 Years Service
10 or More Years of Service
Sick Leave Days
Used in Fiscal
Year
sick Leave Days
Used in Fiscal
Year
Days
Payable
Days
Payable
o
1
2
3
4
5
6
7
8
9
9
8
7
6
5
4
3
2
1
o
o
1
2
3
4
5
6
7
8
9
10
11
12 or more
12
11
10
9
8
7
6
5
4
3
2
1
o
A maximum accrual limit to 130 days of sick leave is applicable to
anyemployee who has elected payoff at any time during his/her employment.
Q. Bereavement Leave. Bereavement leave of not more than five (5)
working days with pay shall be provided for absence from duty due to the
death of a member of the employee's immediate family, meaning spouse,
child, brother, sister, parent, parent-in-law, son-in-law, daughter-in-law,
step-brother, step-sister, grandparent or grandchild. In addition,
bereavement leave of not more than five (5) working days with pay shall be
provided for absence from duty due to the death of any member of the
employee's household.
R. Holidays. 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:
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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 4th
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. Sabbatical Leave. In recognition of the fact that the job demands
placed on participants in the Executive Pay Plan often preclude them from
engaging in endeavors that would contribute to career development and/or
personal development and would thus be of benefit to the city, participants
will be eligible to take a sabbatical leave for the purpose of said
developmental activities. In addition to being of benefit to both the City
and the employee, a sabbatical leave is viewed as a reward for good
performance and years of service with the city. Sabbatical leave cannot be
used for the following purposes: 1) parental leave; 2) engaging in an
income-generating activity; or 3) engaging in an outside activity that
would be prohibited by the Santa Monica Municipal Code.
An employee will be eligible for sabbatical leave at the conclusion of each
seven years of service with the City. A sabbatical leave shall he for a
three-month to six-month period of time. compensation for a sabbatical
leave will be as follows: three months at full salary; more than three
months up to six months at half salary. At the discretion of the City
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Manager, the sabbatical leave can be extended to nine months at half pay.
While on sabbatical leave, the employee shall remain on active status.
If an employee qualifies for a sabbatical leave by virtue of years of
service, the employee shall submit a written proposal to the City Manager,
outlining the purpose of said leave. If the operational needs of the
employee's department and the City can still be met and provided that the
employee's job performance is such that a sabbatical leave is merited, upon
the approval of the City Manager, the employee will be allowed to take the
sabbatical leave.
If a participant should leave the employment of the City during a
sabbatical leave, the employee shall reimburse the city for all salary and
benefits earned during the sabbatical leave up to the date of separation.
Upon return to work, the employee will be required to continue his/her
employment with the City for at least one year (twelve months) fOllowing
the conclusion of the sabbatical leave. If the employee should voluntarily
terminate hiS/her employment during the twelve months following the
conclusion of the sabbatical leave, the employee will reimburse the City
for the full amount of the salary and benefits earned during the sabbatical
leave. In addition, if it should later be determined that the sabbatical
leave was used for a purpose which is prohibited under these provisions,
the employee will reimburse the City for the full amount of the salary and
benefits earned during the sabbatical leave. Any exceptions to these
provisions will be at the discretion of the City Manager.
T. 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
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employee in writing. Reimbursement 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 is the final or
termination warrant.
U. 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-authorized 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.
H. Courses for which tuition reimbursement will be made must be taken on
the employee's time or on authorized vacation leave.
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SECTION 3: This Resolution shall be effective for the period July 1,
1991 to June 30, 1992.
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
Q-"-
(O:exec)
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Adopted and approved this 20th day of August, 1991.
a //A,
/lMayor
I hereby certify that the foregoing Resolution No. 8283(CCS)
was duly adopted by the City council of the City of Santa Monica
at a meeting thereof held on August 20th, 1991 by the following
Council vote:
Ayes: Councilmembers: Genser, Holbrook, Olsen, Vazquez,
Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Katz
ATTEST:
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