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CONFIDENTIAL
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Council Meeting: August 23, 1983
TO: Mayor and City Council
FROM:
SUBJECT:
City Staff
Executive Pay Plan
Inroducton
Santa Monica, California
This report requests that Council adopt the attached Resolution
establishing an executive pay plan covering Department Heads and
certain members of the City Manager's staff.
Background
For the past six years, Department Heads have been covered by
Memoranda of Understanding that established their. wages and
benefits. The most recent MOU expired on June 3D. Early in his
tenure, the City--Manager discussed with the Department Heads his
preference far an Executive Pay Plan established by City Council
Resolution. The Department Heads agreed and a series of
discussions have been held by the City Manager and a committee
of Department Heads to develop such a plan. The results of
those discussions are presented below.
In addition to Department Heads, it is the desire of the City
Manager, as previously reviewed with Council, to include. certain
members of his staff in the Executive Pay Plan.
Individual staff members of the City Managers office are
currently represented buy one or another of three different
bargaining units (MEA, STA, and MTA). All harry out high
profile, sensitive assignments and are expected to work long
hours with no overtime. consideration. Several staff members
have expressed interest in representing themselves individually
rather than participating in the bargaining unit structure. To
standardize wages and benefits, for these individuals, extension
of the Executive Pay Plan provisions is appropriate. The
Department Heads are aware of the City Manager's intent and have
agreed.. Council took a first step in this direction in November
1982 when they authorized participation by the Manager's staff
in the merit pay pool for Department Heads instituted that July.
Provisions of The Executive. Pay Plan
The Executive Pay Plan elements arrived at in consultation with
the Department Heads include the following provisions:
1. A 4~ wage increase effective 7/1/83.
2. An increase in the merit pool from 48 to 4.5~ of total
salaries.
becomes compacted with subordinates due to exceptional increases
for their bargaining units or to maintain. other internal salary
relationships.
The health insurance concession
to that secured from the Library
negotiations. The reduction in
days for employees with 1'0
significant breakthrough which
negotiations with other--groups.
in the third year is identical
Units and UTU in just completed
sick leave earned from 24 to 12
>r more years of service is a
the City can use in upcoming
Financial Analysis
The cost of the Executive~ay Plan is $264,372 over the three
year period, a 17.9 increase. The costs are Retailed in an
attachment to this report. Funds for the current fiscal year
are budgeted in the Non-Departmental Account.
Comparison With Recent Settkements
First Year 8 Increase Three Year ~ Increase
Library Non-Pro 4.3~ 18.2
Library Guild 7.5~ 28,a~
UTU 7.3~ 12.9
Executive Pay Plan 6.3~ 17.9
3. A $75.00/month Deferred Compensation Match (an increase
of $5 over the current $25 match and $45 "optional
benefit".)
4. Along term disability plan.
5. Mental Health Insurance.
6. Continuation of current health and dental insurance
benefits for two years. An increase in the Blue Cross
deductible and a copayment provision €or HMO's in the
third year.
7. Clear exclusion of Executive Pay Plan participants from
overtime and compensatory- time provisions.
8. A reduction from 24 sick leave days per year to 12 sick
leave days per year for participants with ten. or more
years of service. An increase .from 9 days of unused
sick leave payoff annually to 12 days for participants
with 10 or more years of service.
The proposed duration of the Executive Pay Plan is three years.
In the second and third years, the wage increase will be by CPI
formula with a minimum of three percent and a maximum of five
percent.
The plan also provides that the City Manager may recommend that
Council adjust the wage formula for any participant whose salary