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HomeMy WebLinkAbout1998-09-01; City Council; Resolution 98-248' ' I! 0 e 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 98-248 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA AMENDING THE MANAGEMENT SALARY STRUCTURE, ESTABLISHING A BASE PAY INCREASE MATRIX TO P:ROVIDE FOR BASE PAY INCREASES FOR ELIGIBLE MANAGEMENT EMPLOYEES, AND AN APPROPRIATION THEREFOR. ESTABLISHING THE INCENTIVE PAY MATRIX FOR FY 1998-99, AND MAKING WHEREAS, the City Council has authorized the City Manager to administer a Performance Management and Compensation Plan for employees in management classifications; and WHEREAS, the compensation program that has been designed provides for a market survey of eleven public agencies and a salary structure based on the market data gathered from the agencies in the survey market; and WHEREAS, the survey data gathered indicates that an adjustment to the management salary structure is justified; and WHEREAS, the City Council wishes to fund a base pay program for management employees which rewards the development and demonstration of competencies in the job; and WHEREAS, the City Council wishes to fund an incentive pay program which rewards the measurable achievement of specific goals; and WHEREAS, the City Council wishes to support a Performance Management and Compensation System for management employees in which all compensation increases granted (either in base pay or incentive pay) are based on perfixmance. i 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Carlsbad as follows: 1. That Resolution No. 97-676 dated November 18, 1997, is hereby superseded in its entirety. 2. That Exhibit 1, the Management Compensation and Benefits Plan, remains unchanged, except for its Attachment A, the Management Salary Schedule. 3. That the City Council hereby appropriates $325,000 from the contingency account of the general fund and other fund balances as appropriate to provide base pay increases for management employees for the six month transition period from January 1, 1998 through June 30, 1998, based on performance during the transition period, to be paid prospectively in accordance with the Management Compensation Plan. 111 Ill Ill Iff 1f1 Iff Iff Iff Iff Iff I1 .. 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. That the City Council hereby appropriates $450,000 from the contingency 1 account of the general hd and other fund balances as appropriate to grant incentive pay for management employees for the 1998/99 fiscal year. Any incentive payouts granted will be paid to management employees in July or August of 1999, in accordance with the Management Compensation Plan. I PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council, held on this lSt day of September , 1998, by the following vote, to wit: AYES: Council Members Hall, Kulchin, Nygaard, Finnila & Hall NOES: None ABSENT: None ATTEST: KAREN R. KUNDTZ, Assistant City Clerk (SEAL) JI !' 0 e EXHIBIT 1 MANAGEMENT COMPENSATION AND BENEFITS PLAN SECTION 1: INTRODUCTION This attachment constitutes the Management Compensation and Benefits Plan, which contains three parts: 1) an introduction, 2) a brief overview of how management performance will be evaluated and how compensation levels will be determined, and 3) a schedule of management benefits. A. Definitions 1. Management Employees - Management employees are defined as those employees whose classifications are listed on the Management Salary Schedule. 2. City Council Appointed Employees - The City Manager and City Attorney are hired by and responsible directly to the City Council. The salaries for these positions shall be set by the City Council. The City Manager and City Attorney will not be subject to the provisions of the Performance Management and Compensation program as outlined in Section 2 of this attachment. The schedule of management benefits (as outlined in Section 3 of this attachment) will apply to these positions, except as otherwise provided by the City Council. SECTION 2: PERFORMANCE MANAGEMENT AND COMPENSATION SYSTEM OVERVIEW The City Council has delegated its authority to the City Manager (and City Attorney, for management employees in the City Attorney's Office)' to administer a Performance Management and Compensation System for management employees under the following general guidelines. The system is comprised of two major components: Performance Management - emphasizing an employee development approach to performance appraisal, comprised of: 3 Alignment of individual contributions with organizational direction, 3 Development and demonstration of competencies in the job, and 3 Measurement of levels of accomplishment of goals ' Hereafter, all references to the City Manager include, with regard to management employees in the City Attorney's Office, the City Attorney. 1 0 0 Compensation - based on a market driven approach to compensation, comprised of: =, Market based salary structure 2 Base pay 3 Incentive Pay PERFORMANCE MANAGEMENT The Performance Management Cvcle The Performance Management Cycle coincides with the fiscal year and includes three separate phases: Performance Planning, Performance Update, and Performance Review. Maior Components of Performance Management The two major components upon which a management employee’s performance is based are: the development and demonstration of specific competencies, and 0 the accomplishment of goals. Management Competencies - All management employees are reviewed and evaluated based on how well they can develop and demonstrate specific competencies. Competencies are the knowledge, skills, abilities, and behaviors that are essential to the success of each management employee. Goals - Goals describe how the individual’s contribution links and aligns with their department’s goals and objectives and ultimately with those of the City Council. Goals are set at the beginning of the performance management cycle, and employees are evaluated at the end of the cycle as to how well they accomplished their assigned tasks for the year. Link to Compensation An employee’s performance, as evaluated against the selected competencies, is rewarded by a base pay adjustment. Base pay adjustments are ongoing and are added to the employee’s annual salary. An employee’s performance, as evaluated against the achievement of annual goals, is rewarded by an incentive award. Incentive payouts are one-time cash payments to an employee which do not recur automatically from year to year. Both the base pay increases and the incentive payments comprise the cash compensation available to management employees. 2 0 0 COMPENSATION The Performance Management and Compensation System is based upon a market based approach to compensation, comprised of: 0 A market based salary structure 0 A base pay program based on the development and demonstration of competencies 0 An incentive pay program based on the measurable achievement of specific goals Market Based Salarv Structure - Base Pay Promam The Management Salary Schedule, attached hereto as Attachment A, establishes a salary grade for each management classification. The City Manager is delegated authority to place new hires at any salary within the range, as determined by the appointee’s knowledge, skills and abilities. The area of the salary grade between the minimum and the bottom of the market range is intended for inexperienced new hires. The Human Resources Department will conduct an annual survey of a reasonable number of comparable agencies in San Diego County. Job content, job classification and salary information on each City of Carlsbad classification will be compared with appropriate classifications in the comparator group. The City Council delegates to the City Manager the authority to assign job classifications to a specific salary grade, based on both benchmark salary information and internal relationships within the organization. Changes to the “minimum” and “market range” of each salary grade within this structure shall be approved by the City Council. The City Council determines the budget amount to be spent on management base pay increases for each fiscal year, and the base pay increase percentages will be determined after all of the performance ratings have been determined. All base pay increases are prospective. Management employees whose current salary is above the maximum of the market range for their assigned salary grade shall continue to be paid at that base rate until their salary falls within the market range, and until such time shall not be eligible for base pay increases. INCENTIVE PAY PLAN The Incentive Pay plan is provided in addition to the Base Pay plan. All management employees are eligible for incentive pay, regardless of their position in the salary range. All management employees’ salary above base pay is unfixed and uncertain until 3 0 0 completion of the evaluation and award process annually, in which the incentive portion, if any, is determined for each management employee. Employees earn the incentive based on their achievement of goals established during the performance management process. For each goal, achievement is rated based on one of three performance levels: Threshold, Target or Optimum. Unlike base pay increases which are determined at the end of the performance management cycle, the potential incentive percentages will be made public at the beginning of the performance review cycle. Incentive awards are expressed as a percentage of base pay. The City Council will determine the mud amount to be budgeted for management incentive pay, and an Incentive Pay matrix will be distributed to all management employees. This matrix will change fiom year to year based on the City's economics, market data, and demographics. At the end of the fiscal year and upon completion of the review process, incentive awards will be granted to employees based on their level of goal accomplishment during the performance management cycle. No management employee shall be awarded incentive compensation in an amount greater than 10% of that employee's base salary. The City Manager will periodically provide the City Council with progress reports on the operation of the Performance Management and Compensation System. SECTION 3: SCHEDULE OF BENEFITS Life Insurance All management employees shall receive City paid life insurance in an amount equal to two times the basic yearly earnings. To determine benefits, the amount of insurance is rounded to the next higher $1,000 multiple, unless the amount equals a $1,000 multiple. Supplemental Life, at an amount equal to City paid life insurance, is available at the employee's cost. Dependent life is also available at the employee's cost. Former CMWD management employees shall receive Group Term Life Insurance, Accidental Death and Dismemberment, and Dependent Life Insurance as contained in their Individual Agreement. Retirement All management employees shall participate in the Public Employees' Retirement System. The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the PERS system. 4 e 0 Retirement Contribution All management employees shall have their portion of the retirement contribution to the Public Employees' Retirement System paid by the City. The specific retirement formula applied will be determined based on whether the position is deemed safety or miscellaneous. All positions not deemed eligible for safety retirement will be deemed miscellaneous under the PERS system. Management Leave Management employees, except Police Lieutenants, are exempt from overtime requirements under the Fair Labor Standards Act. Management employees in the City are paid on a salary basis versus an hourly basis. Pursuant to FLSA regulation 29 CFR Section 541 Sa, the City can make deductions from salary or leave accounts for partial day absences for personal reasons or sickness because the City has a policy and practice of requiring its employees to be accountable to the public that they have earned their salaries. A partial day absence is an absence of less than the employee's regular work day. Pursuant to FLSA regulation 29 CFR Section 541.1 18 (a)(2) and (a)(3), the City may make salary or leave reductions based upon full day absences. Partial day or full day absences shall be first charged against the exempt employee's vacation, sick, or executive leave account. In the event the exempt employee does not have sufficient time in hisher leave account to cover the absence, the time for the partial day absence will be charged against the employee's salary in the form of a negative balance. a Vacation All management employees shall earn vacation on the following basis: - Beginning with the first (1st) working day through the completion of five (5) full calendar years of continuous service - 80 hourdyeas (3.08 hours biweekly). - Beginning the sixth (6th) year of employment through the completion of ten (10) full calendar years of continuous service - 120 hourdyear (4.62 hours biweekly). - Beginning the eleventh (1 1 th) year of employment through the completion of eleven (1 1) full calendar years of continuous service - 128 hourdyear (4.92 hours biweekly). - Beginning the twelfth (12th) year of employment through the completion of twelve (1 2) full calendar years of continuous service - 136 hourdyear (5.23 hours biweekly). 5 0 0 - Beginning the thirteenth (1 3th) year of employment through the completion of thirteen (13) full calendar years of continuous service - 144 hourdyear (5.54 hours biweekly). - Beginning the fourteenth (1 4th) year of employment through the completion of fifteen (1 5) full calendar years of continuous service - 152 hourdyear (5.84 hours biweekly). - Beginning the sixteenth (1 6th) year of continuous employment, vacation time shall be accrued, and remain at a rate of 160 hours for every full calendar year of continuous employment thereafter (6.1 5 hours biweekly). Management employees with comparable service in local government agencies may be granted credit for such service for the purpose of computing vacation at the discretion of the City Manager. All management employees shall be permitted to accumulate up to and including forty (40) days of vacation. The City Manager shall be responsible for the granting of vacation to all management personnel, except in the case of the City Attorney’s Office, where the City Attorney shall be responsible for granting vacation. Former CMWD management employees shall earn vacation as contained in their Individual Agreement. This includes the carryover of unused vacation hours. 0 Executive Leave All management personnel, except former CMWD management employees and the position of Police Lieutenant, shall receive 56 hours per fiscal year for executive leave. Persons employed in the position of Police Lieutenant are not eligible to receive executive leave because they receive overtime at the rate of time and one-half for actual hours worked. The 56 hours will be credited at the beginning of each fiscal year to individual leave balances. This leave must be used within the same fiscal year. The City Manager is authorized to provide ten (10) additional hours of executive leave per year to any management employee who is required to work extended hours due to emergencies such as fires, storms, floods, or other emergencies. e Sick Leave Twelve (1 2) days of sick leave are accrued per year. Accumulation is unlimited (employees cannot receive payment for unused sick leave). 6 0 0 0 Bereavement Leave An employee may use up to an equivalent of three work days of paid leave if required to be absent from duty due to the death of a member of the employee’s immediate family. Additional time off may be authorized by the Department Head and charged to accrued vacation or treated as leave without pay. The “immediate family” shall be defined as: Spouse, child, parent, sibling, grandparents; the aforementioned either natural, step or in-law, or any person over which the employee acts as legal guardian, or a verifiable current member of the immediate household. The employee may be required to submit proof of relative’s death before final approval of leave with pay is granted. 0 Leave of Absence 1. Leave of Absence Without Pay A. General Policy Any employee may be granted a leave of absence without pay pursuant to the recommendation of hisher Department Head and the approval of the City Manager. A leave without pay may be granted for any of the following reasons: 1. Illness or disability. 2. To take a course of study which will increase the employee’s usefulness on return to hisher position in the City service. 3. For personal reasons acceptable to the City Manager and Department Head. B. Authorization Procedure Requests for leave of absence without pay shall be made upon forms prescribed by the City Manager and shall state specifically the reason for the request, the date when the leave is desired to 7 e e begin, the probable date of return, and the agreement to reimburse the City for any benefit premiums paid by the City during the leave of absence. The request shall normally be initiated by the employee, but may be initiated by hidher Department Head, and, upon written recommendation of the Department Head that it be granted, modified or denied, shall be promptly transmitted to the City Manager. A copy of any approved request for leave of Finance and Human Resources. C. Length of Leave and Extension absence without pay shall be delivered promptly to the Directors of A leave of absence without pay may be made for a period not to exceed six months, unless otherwise approved by the City Manager. The procedure for granting extensions shall be the same as that in granting the original leave provided that the request for extension is made no later than fourteen (1 4) calendar days prior to the expiration of the original leave. D. Return From Leave When an employee intends to return from an authorized leave of absence without pay either before or upon the expiration of such leave, he/she shall contact hidher Department Head at least fourteen (14) calendar days prior to the day he/she plans to return. The Department Head shall promptly notify the City Manager of the employee’s intention. The employee shall return at a rate of pay not less than the rate at the time the leave of absence began. E. Effect of Leave Without Pay An employee shall utilize all hisker vacation, and/or sick leave (if applicable) prior to taking an authorized leave of absence without Pay- A prorata reduction of normal annual vacation and sick leave accruals shall be applicable to an approved absence without pay. Any absence without pay constitutes a break of continuous service with the City. The granting of any leave without pay exceeding two full scheduled pay periods shall cause the employee’s salary anniversary date and calculation of full-time continuous service to be extended by the number of calendar days for which such leave has been granted less the first two full pay periods of such leave. 8 0 0 An employee’s accumulation of sick leave and vacation leave will cease after the completion of two (2) full scheduled pay periods in which the employee has not received compensation due to a leave of absence without pay. Accrual will be reinstituted beginning the first day of the first full pay period after the employee has returned to work. F. Leave Without Pay - Insurance Payments and Privileges An employee on leave without pay may continue hidher City insurance benefits by reimbursing the City for the costs of insurance on a monthly basis during the period of the leave. Failure to reimburse the City for such benefits during the term of a leave of absence will result in the employee’s coverage terminating on the first day following the month in which the last payment was received. An employee on leave of absence without pay shall not have all of the privileges granted to regular employees. e Pregnancy Disability Leave An employee disabled by pregnancy shall be allowed to utilize a combination of accrued sick leave and vacation time and leave without pay to take a leave for a reasonable period of time, not to exceed four months. An employee shall utilize all accrued leave prior to taking leave without pay. Reasonable period of time means that period during which the employee is disabled on account of pregnancy, childbirth, or related conditions. An employee who plans to take a leave pursuant to this article shall give the City reasonable notice of the date the leave shall commence and the estimated duration of the leave. e Family and Medical Leave of Absence (FMLA) An employee may be granted a FMLA of up to 12 weeks in a 12 month period for one or more of the following reasons: - for the birtwplacement of a child for adoption or foster care, - to care for an immediate family member with a serious health condition, or - to take medical leave when the employee is unable to work because of a serious condition. 9 0 0 FMLA may be paid or unpaid and may be granted concurrently and in conjunction with other leave and benefit provisions. Specific details regarding the provisions of this leave are available by contacting the Human Resources Department. 0 Military Leave Military leave shall be authorized in accordance with the provisions of State and Federal law. The employee must furnish satisfactory proof to hisher Department Head, as far in advance as possible, that he/she must report to military duty. 0 Jury Duty When called to jury duty, an employee, having provided at least five working days written notice, shall be entitled to hisher regular compensation. Employees released early from jury duty shall report to their supervisor for assignment for the duration of the shift. Employees shall be entitled to keep mileage reimbursement paid while on jury duty. A Department Head may, at hisker sole discretion, contact the court and request an exemption and/or postponement of jury service on behalf of an employee. Employees released early fiom jury duty shall report to their supervisor for assignment for the duration of the work day. At the discretion of the supervisor, an employee may be released fiom reporting back to work if an unreasonable amount of the work day remains in light of travel time to the job site after release. Health Insurance for Retirees Employees who retire from the City, either service or disability, shall be eligible to continue to participate in the City’s health insurance program. The cost of such health insurance for the employee, and eligible dependents, shall be borne solely by the employee. The City shall not charge the COBRA administrative cost to the retirees. In order to qualify for this benefit, the retiree must have a minimum of five (5) years of City service and be a minimum of fifty (50) years of age. The retiree must make arrangements with the City to prepay hisker monthly premiums and must keep such payments current to ensure continued coverage. A retiree who does not choose continued coverage upon retirement, or drops coverage, is not eligible to return to the City’s health insurance program. 10 0 0 Sick Leave Conversion Any management employee who has accrued and maintains a minimum of one hundred (100) hours of sick leave shall be permitted to convert up to twelve (12) days of sick leave and uncompensated sick leave to vacation at a ratio of three (3) sick leave days per one (1) day of vacation. The sick leave conversion option will be provided during the first week of each fiscal year, Conversion can only be made in increments of full day vacation days. Employees will not be allowed to convert sick leave to vacation if they are already above the allowed vacation accrual maximum of 40 days, or if such conversion would put them over the vacation accrual maximum. Former CMWD management employees per their Individual Agreement, have the option to sell back 100% of accumulated sick leave in excess of 250 hours at their current rate. The City, at its discretion, may purchase any accumulated sick leave from any of these referenced management employees at the current rate. Separation ComDensation All management employees involuntarily separated from the City service due to budget cutbacks, layoffs, contracting out of service or for other reasons not due to misconduct which would justify involuntary separation shall receive one month’s salary computed at the employee’s actual salary at the time of separation. Holidavs All management employees, except for the position of Police Lieutenant, shall be paid holidays in accordance with the schedule of eleven (1 1) holidays and one (1) floating holiday, as established by the City Council. Martin Luther King’s Birthday (MLK) will be commemorated by management employees as a floating holiday. If/when local government employers are required to commemorate MLK on a designated date, this floating holiday will convert to a scheduled holiday. Police Lieutenants shall receive holiday pay at the rate of time and one-half in lieu of receiving holidays off. The Lieutenant in charge of the police investigations division shall receive time and one-half for all holidays actually worked. The scheduled paid holidays that will be official City holidays shall be as follows: New Year’s Day Columbus Day Lincoln’s Birthday Veteran’s Day Washington’s Birthday Thanksgiving Day Memorial Day Thanksgiving Friday Independence Day Christmas Day Labor Day MLK (Floating Holiday) 11 0 0 Health Benefits Management employees can elect health insurance coverage under ReliaStar, Kaiser Permanente, or Sharp Health Plan. Health insurance contributions include the cost of medical, dental, and vision coverage (where applicable). Contribution rates will be determined for each calendar year and will be communicated to all management employees during the annual open enrollment period. Former CMWD management employees shall receive Medical, Dental and Vision, and Retiree Medical as contained in their Individual Agreement. Annual Phvsical Examination and/or Physical Fitness Testing All management employees, excluding former CMWD management employees, shall be eligible for reimbursement of up to the amount of four hundred fifty dollars ($450) during each fiscal year to pay the cost of an employee's annual physical examination and/or physical fitness testing. The annual physical examination may be completed by a physician of the employee's choice. Each employee claiming reimbursement shall be required to submit original receipts to the Human Resources Department in lieu of submitting them to the insurance company for payment. The annual physical examination offered to management employees provides physical fitness testing and information regarding lifestyle changes that promote optimum health. Program components include, but are not limited to: Computerized Heart Risk Profile, Complete Blood Profile, Nutritional Assessment, Diet Program, Body Measurements, Lung Assessment, Consultations, etc. Long-Term Disability Insurance (LTD) Long-term disability is available for all management personnel after 30 days of disability. The LTD premium cost is paid by the City. Former CMWD management employees shall receive LTD benefits as contained in their Individual Agreement. Accidental Death and Dismemberment This is a voluntary program available to any employee who chooses to participate. Employees may select among various levels of coverage which cover accidents and death. The City will pay one-third (1/3) of the cost, the employee pays two-thirds (2/3) and 100% of dependent coverage. 12 0 0 Deferred Compensation The City shall provide deferred compensation plan(s) which may be utilized by any management employee. The City reserves the right to accept or reject any particular plan and to impose specific conditions upon the use of any plan. Former CMWD management employees may voluntarily participate in the Deferred Compensation Plan as contained in their Individual Agreement. The City matches former CMWD employee contributions up to a maximum of 7.5% of the employee’s earnings. Drug and Alcohol Policy It is the policy of the City of Carlsbad to provide a work environment free from the effects of drugs and alcohol consistent with the directives of the Drug Free Workplace Act. This policy is applicable to all employees covered by the Management Compensation and Benefits Plan. A copy of this policy is available in the Human Resources Department. As a provision of this policy, the City provides a voluntary Employee Assistance Program (EAP) to assist employees who seek help for substance abuse or other personal problems affecting work or family life. This program is available to employees and their family members and offers 24- hour access to confidential professional EAP assistance for emergency or urgent situations. The toll free number is 800 999-7222. For more specific information, contact the Human Resources Department. 13 0 0 Attachment A Management Salary Structure (Base Pay) JOB TITLE I Administrative Services Director Assistant Citv Manaaer I w Community Development Director Fire Chief Police Chief Public Works Director I Assistant City Attorney Finance Director - - - 1 GRADE MINIMUM MARKET RANGE 8 $86.100 - $1 07.600 $75,300 7 8 8 8 8 8 $102,800 - $129,600 $89,400 ,. . ,. , I~ 71 I I I Fire Division Chief 171 I ~~ I I IGeneral Manager-Water 171 I ~ ~~~ I v I Human Resources Director Information Systems Director 7 7 Police Captain 7 Planning Director 7 Library Director 7 ~~~ ~ Assistant City Engineer 6 Assistant Library Director 6 Assistant Finance Director $71,300 - $90,000 $62,000 6 6 loperations Superintendent 6 Information Systems Manager 6 Housing & Redevelopment Director 6 Fire Battalion Chief 6 District Engineer 6 Assistant Planning Director ~~~ I’ I Police Lieutenant 161 I I Principal Building Inspector 6 PrinciDal Civil Enaineer 6 L w IRecreation and Park Dev Mar 161 I I w I ITraffic Engineer I 6 ¶ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x Revised: 7/21 198 Page 1 of 3 0 0 Management Salary Structure (Base Pay) JOB TITLE GRADE MINIMUM MARKET RANGE Revised: 7/21/98 Page 2 of 3 e e Management Salary Structure (Base Pay) JOB TITLE GRADE MINIMUM MARKET RANGE Revised: 712 1/98 Page 3 of 3 E H $3 c;l FI E w H a z 0 5 w 0 u a ta FI 2 3 E 53 8 5 H z 5 z 4 w u z E 8 0 2 w PC 0 Exhibit 2