SR 09-11-2018 3K
City Council
Report
City Council Meeting: September 11, 2018
Agenda Item: 3.K
1 of 3
To: Mayor and City Council
From: Donna Peter, Director, Human Resources Department
Subject: Resolution Authorizing the City Manager to Revise the Executive Pay Plan
(EPP)
Recommended Action
Staff recommends that the City Council:
1. Adopt the attached Resolution authorizing the City Manager to revise the
Executive Pay Plan (EPP).
2. Approve the attached revised salary schedule effective as a result of the
revisions made to the EPP.
Summary
The Executive Pay Plan (EPP) covers the City’s key management staff who are among
the few City staff not represented by a labor union. The EPP was most recently
updated for Fiscal Year 2016-2017. The changes recommended for the current Fiscal
Year will contain costs and minimize increases in pension obligations.
In line with the Compensation Philosophy recently adopted by the City Council, the
purpose of the Pay Plan is to recognize the contributions of the Executive team while
promoting and providing harmonious relations, cooperation, and understanding between
the City and the EPP members. The total cost of these proposed changes is
approximately $80,406 for FY 2018-19. The budget impact of these changes is less
than the projection included in the General Fund FY 2017-18 through the FY 2021-22
Five-Year Financial Forecast.
Discussion
The Executive Pay Plan (EPP) establishes terms and conditions of employment for
Department Directors and other at-will employees who receive EPP benefits as part of
their separate employment contracts. There is no specific expiration date for the EPP,
so terms are amended as needed and amendments typically occur as changes are
made to agreements with other employee bargaining units. In fiscal year 2017-2018
2 of 3
EPP received a 1% salary adjustment compared to the 1.7% received by other
miscellaneous bargaining groups.
Most of those covered by the EPP are among the top earners in City government. As
such, they recognize the importance of setting an example of fiscal responsibility. So
unlike the vast majority of City workers, they will not receive any cost-of-living increase
in their salaries this year. Instead, they would receive a lower percentage increase than
the rest of the workforce in the form of City contributions to deferred compensation.
Increasing deferred compensation rather than salaries has the advantage from the
City’s standpoint of not increasing pension benefits. This results in both short and long
term cost savings, since contributions to deferred comp are not subject to calculation as
part of pensionable pay.
Under the current terms of the EPP, however, the Police Chief and Fire Chief contribute
towards their retirement in amounts equal to the Santa Monica Police Officers
Association (POA) and Santa Monica Firefighters Association, Local 1109 (1109), both
of which have been increased. Those changes resulted in both Chiefs taking a
reduction in overall take-home salary based on a one percent increase in their
retirement contributions and no offsetting salary increase. In addition, an analysis was
conducted to determine whether compaction issues existed among those that they
supervise as a result of differences in salary adjustments provided to POA, 1109 and
the Fire Executive Management Association (FEMA). In addition, the salary range for
the Police Chief was lowered from that in effect under the Chief’s predecessor and
FEMA negotiated additional educational incentives further eroding the narrow difference
between the salaries of the Police and Fire Chiefs and those they directly supervise .
To rectify the compaction, staff recommends that the salaries for the Police Chief and
Fire Chief be increased by 2.5%, which is commensurate with the salary increases that
the POA and the 1109 members received. In addition, it is recommended that the Police
Chief and Fire Chief each receive a flat $500 per month education incentive for a POST
Executive Certificate or Master’s Degree for the Police Chief, and for a Chief Fire Officer
(CFO) or Master’s Degree for the Fire Chief.
The substantive terms of the revised EPP are summarized as follows:
The revised Pay Plan sets salaries for EPP-covered employees for a one-year period
from July 1, 2018, through June 30, 2019.
3 of 3
EPP participants will be receiving a contribution of $190 per month to a
deferred compensation plan.
The Police Chief and Fire Chief will each receive a 2.5% increase in base
salary.
An education incentive program will be established for the Police and Fire
Chiefs to each receive $500 per month.
Past Council Actions
Meeting Date Description
06/27/2017 Staff Report Authorizing Revisions to the EPP Pay Plan 2017-
2018
Financial Impacts and Budget Actions
The total cost of the changes contained in the revised EPP is approximately $80,406 for
FY 2018-2019. The budget impact of these changes was included in the FY 2017-18
through FY 2021-22 Five-Year Financial Forecast. Appropriations for all funds will be
included in the FY 2018-19 Midyear Budget for Council approval.
Prepared By: Sarah Rebensdorf, Senior Human Resources Analyst
Approved
Forwarded to Council
Attachments:
A. EPP RESO 9.11.18
B. EPP SALARY SCHEDULE Council Mtg 20180911 Chiefs
ATTACHMENT A
1
City Council Meeting: September 11, 2018 Santa Monica, California
RESOLUTION NUMBER _________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER
TO REVISE THE EXECUTIVE PAY PLAN
WHEREAS, in accordance with Government Code Section 3505.1, on September
11, 2018, a revised Executive Pay Plan was presented to the City Council of the City of
Santa Monica for consideration; and
WHEREAS, Government Code Section 3505.1 requires preparation of a written
Memorandum of Understanding between the City and the employee organization if a
tentative agreement is reached and adopted by the City Council; and
WHEREAS, the purpose of the Pay Plan is to promote and provide harmonious
relations, cooperation, and understanding between the City and Executive Pay Plan
participants;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Monica hereby approves and
authorizes the City Manager to execute a revised Executive Pay Plan (FY2018 -2019).
ATTACHMENT A
2
SECTION 2. 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:
_________________________
Lane Dilg
City Attorney
Executive Pay Plan (EPP)
Salary Schedule for September 11, 2018 City Council Meeting
Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate
Asst City Mgr/Ch Operating Off 0745 EPP 825 1 112.93 19,575.00 234,900.00 9,034.62
2 118.51 20,542.00 246,504.00 9,480.92
3 125.48 21,750.00 261,000.00 10,038.46
4 132.46 22,959.00 275,508.00 10,596.46
5 139.43 24,167.00 290,004.00 11,154.00
Asst to the City Manager 0882 EPP 011 1 57.23 9,919.00 119,028.00 4,578.00
2 60.05 10,409.00 124,908.00 4,804.15
3 63.58 11,021.00 132,252.00 5,086.62
4 67.12 11,634.00 139,608.00 5,369.54
5 70.65 12,246.00 146,952.00 5,652.00
Chief Communications Officer 0658 EPP 027 1 66.44 11,517.00 138,204.00 5,315.54
2 69.73 12,086.00 145,032.00 5,578.15
3 73.83 12,797.00 153,564.00 5,906.31
4 77.93 13,508.00 162,096.00 6,234.46
5 82.03 14,219.00 170,628.00 6,562.62
Chief Information Officer 0964 EPP 090 1 88.65 15,366.00 184,392.00 7,092.00
2 93.03 16,125.00 193,500.00 7,442.31
3 98.50 17,073.00 204,876.00 7,879.85
4 103.97 18,022.00 216,264.00 8,317.85
5 109.44 18,970.00 227,640.00 8,755.38
City Attorney 0615 EPP 880 1 122.83 21,290.00 255,480.00 9,826.15
2 128.89 22,341.00 268,092.00 10,311.23
3 136.48 23,656.00 283,872.00 10,918.15
4 144.06 24,970.00 299,640.00 11,524.62
5 151.64 26,284.00 315,408.00 12,131.08
City Manager 0640 EPP 950 1 164.80 28,565.00 342,780.00 13,183.85
Communications/Publ Affairs Of 0743 EPP 027 1 66.44 11,517.00 138,204.00 5,315.54
2 69.73 12,086.00 145,032.00 5,578.15
3 73.83 12,797.00 153,564.00 5,906.31
4 77.93 13,508.00 162,096.00 6,234.46
5 82.03 14,219.00 170,628.00 6,562.62
Deputy City Manager 0746 EPP 055 1 80.64 13,977.00 167,724.00 6,450.92
2 84.62 14,667.00 176,004.00 6,769.38
3 89.60 15,530.00 186,360.00 7,167.69
4 94.57 16,392.00 196,704.00 7,565.54
5 99.55 17,255.00 207,060.00 7,963.85
Dir of Community/Cultural Svs 0664 EPP 340 1 95.53 16,559.00 198,708.00 7,642.62
2 100.25 17,377.00 208,524.00 8,020.15
3 106.15 18,399.00 220,788.00 8,491.85
4 112.04 19,421.00 233,052.00 8,963.54
5 117.94 20,443.00 245,316.00 9,435.23
Dir of Finance(Contr/Ci Treas)0650 EPP 090 1 88.65 15,366.00 184,392.00 7,092.00
2 93.03 16,125.00 193,500.00 7,442.31
3 98.50 17,073.00 204,876.00 7,879.85
4 103.97 18,022.00 216,264.00 8,317.85
5 109.44 18,970.00 227,640.00 8,755.38
Dir of Housing & Economic Dev 0634 EPP 083 1 85.68 14,851.00 178,212.00 6,854.31
2 89.91 15,585.00 187,020.00 7,193.08
3 95.20 16,502.00 198,024.00 7,616.31
4 100.49 17,418.00 209,016.00 8,039.08
5 105.78 18,335.00 220,020.00 8,462.31
Executive Pay Plan (EPP)
Salary Schedule for September 11, 2018 City Council Meeting
Class Title Class Code BU Grade Step Hourly Rate Monthly Rate Annual Rate Bi-weekly Rate
Dir of Human Resources 0691 EPP 090 1 88.65 15,366.00 184,392.00 7,092.00
2 93.03 16,125.00 193,500.00 7,442.31
3 98.50 17,073.00 204,876.00 7,879.85
4 103.97 18,022.00 216,264.00 8,317.85
5 109.44 18,970.00 227,640.00 8,755.38
Dir of Library Svs/City Librn 0635 EPP 057 1 75.63 13,109.00 157,308.00 6,050.31
2 79.36 13,756.00 165,072.00 6,348.92
3 84.03 14,566.00 174,792.00 6,722.77
4 88.70 15,375.00 184,500.00 7,096.15
5 93.37 16,184.00 194,208.00 7,469.54
Dir of Planning &Community Dev 0660 EPP 340 1 95.53 16,559.00 198,708.00 7,642.62
2 100.25 17,377.00 208,524.00 8,020.15
3 106.15 18,399.00 220,788.00 8,491.85
4 112.04 19,421.00 233,052.00 8,963.54
5 117.94 20,443.00 245,316.00 9,435.23
Dir of Public Works 0625 EPP 790 1 108.16 18,747.00 224,964.00 8,652.46
2 113.50 19,673.00 236,076.00 9,079.85
3 120.18 20,831.00 249,972.00 9,614.31
4 126.85 21,988.00 263,856.00 10,148.31
5 133.53 23,145.00 277,740.00 10,682.31
Dir of Records & Election Svs 0620 EPP 058 1 77.00 13,346.00 160,152.00 6,159.69
2 80.80 14,005.00 168,060.00 6,463.85
3 85.55 14,829.00 177,948.00 6,844.15
4 90.31 15,653.00 187,836.00 7,224.46
5 95.06 16,477.00 197,724.00 7,604.77
Dir of Spec Proj Inform Svs 0665 EPP 090 1 88.65 15,366.00 184,392.00 7,092.00
2 93.03 16,125.00 193,500.00 7,442.31
3 98.50 17,073.00 204,876.00 7,879.85
4 103.97 18,022.00 216,264.00 8,317.85
5 109.44 18,970.00 227,640.00 8,755.38
Dir of Transit Services 0670 EPP 282 1 94.85 16,441.00 197,292.00 7,588.15
2 99.54 17,253.00 207,036.00 7,962.92
3 105.39 18,268.00 219,216.00 8,431.38
4 111.25 19,283.00 231,396.00 8,899.85
5 117.10 20,298.00 243,576.00 9,368.31
Fire Chief 0675 EPP 701 1 111.13 19,262.00 231,144.00 8,890.15
2 116.61 20,213.00 242,556.00 9,329.08
3 123.47 21,402.00 256,824.00 9,877.85
4 130.33 22,591.00 271,092.00 10,426.62
5 137.19 23,780.00 285,360.00 10,975.38
Police Chief 0690 EPP 855 1 117.73 20,406.00 244,872.00 9,418.15
2 123.54 21,413.00 256,956.00 9,882.92
3 130.81 22,673.00 272,076.00 10,464.46
4 138.07 23,932.00 287,184.00 11,045.54
5 145.34 25,192.00 302,304.00 11,627.08
Special Counsel/Chief of Staff 0045 EPP 800 1 109.85 19,041.00 228,492.00 8,788.15
2 115.28 19,981.00 239,772.00 9,222.00
3 122.05 21,156.00 253,872.00 9,764.31
4 128.84 22,332.00 267,984.00 10,307.08
5 135.62 23,507.00 282,084.00 10,849.38
REFERENCE:
Resolution No. 11137
(CCS)