SR-092308-1O~_
~;LYof City Council Report
Santa Monica
City Council Meeting: September 23, 2008
Agenda Item: ! '~
To: Mayor and City Council
From: Karen Bancroft, birector of Human Resources
Subject: Resolution Authorizing the City Manager to Execute an Executive Pay
Plan
Recommended Action
This report requests that Council adopt the attached Resolution authorizing the City
Manager to execute a consolidated, updated and revised Executive Pay Plan (EPP) that
establishes the terms and conditions of employment for Department Heads and other
at-will employees who receive the EPP benefits as a part of their separate employment
contracts.
Executive Summary
Under our current practice, the initial Executive Pay Plan (EPP) Resolution has been
amended throughout the years through the adoption of EPP Resolution amendments.
This has resulted in it being difficult to easily determine which terms and conditions are
the most current. The establishment of a single document (Executive Pay Plan) would
consolidate the original Executive Pay Plan (EPP) Resolution and all subsequent
Resolutions amending the EPP Resolution, update provisions to bring those provisions
in line with City Memoranda of Understanding (MOU's) and make some additional
changes to the EPP to give employees parity with other City bargaining units. Going
forward, it will only be necessary to revise the Executive Pay Plan whenever a change
is made. The total on-going cost of the proposed additional changes would be $15,100.
Discussion
In addition to consolidating the initial Executive Pay Plan and its amendments into a
single document, the following changes would be made:
1) The participants of the Executive Pay Plari will be Department Heads, with the City
Clerk and the Risk Manager having the option to be participants of the Executive
Pay Plan and employees in at-will positions covered by a separate employment
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agreement still being eligible per the terms of their separate employment
agreements to receive the benefits provided by the Executive Pay Plan;
2) Add a severance pay provision that. would provide an employee with four (4)
months of severance pay if his or her separation from the City was .not the result
of: a) willful misconduct; b) conviction of a crime involving moral turpitude; or c)
consistent. poor performance in meeting specific objectives and/or performing the
duties and responsibilities of his or her position.
3) If an employee covered herein is required to work on acity-recognized holiday, he
or she will be able to take another regularly scheduled work day off with pay during
that fiscal year.
4) An employee would accrue two (2) non-cashable management leave days each
fiscal year, with the days being forfeited if not used by the end of the fiscal year.
5) An employee would accrue one (1) cashable management leave day at the
beginning of each fiscal year, which could be cashed out at the rate of eight (8)
hours of the employee's base pay if he or she does not use the leave day during
that fiscal year.
6) Change the current retiree medical insurance provision so that an employee who
retires under CaIPERS within 12 months of his/her separation from the City would
receive that benefit if he/she meets the applicable criteria. The effective date of
this change will be retroactive to January 1, 2008.
Financial Impacts & Budget Actions
The total on-going cost of the proposed changes to the Executive Pay Plan would be
$15,100 for the cashable management leave day, which would be subject to annual
cost of living adjustments. Any cost associated with severance pay could be covered by
salary savings by leaving the position vacant for a period of time. Provision was made
in the FY2008-2009 budget to accommodate the results of negotiations with employee
groups and no appropriation is necessary.
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Prepared by:
Karen Bancroft, Director of Human Resources
to Council:
Kafen Bancroft U P. Lyfi~ont ~H
Director of Human Resources Ci Manager
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Reference Resoluton No.
10343 (CCS)