Loading...
HomeMy WebLinkAbout2002-10-15; City Council; 16928; Amendment To Management Classification & Base PayCITY OF CARLSBAD - AGENDA BILL \B # 16,928 ATG. 10-15-02 TITLE: PERFORMANCE MANAGEMENT AND COMPENSATION IEPT. HR IECOMMENDED ACTION: SYSTEM FOR MANAGEMENT CLASSIFICATIONS - BASE PAY Adopt Resolution No. 2002-301 , establishing a Base Pay Increase Matrix to provide for base pay increases for eligible management employees. h ..a CITY MGR. ITEM EXPLANATION: Background On November 18, 1997, the City Council authorized the City Manager to administer a formal Performance Management and Compensation System for employees in management classifications. Consistent with the direction of the City Council, staff recommended a new system which is comprised of two major components: Performance ManaPement - emphasizing an employee development approach to performance appraisal through continuous coaching/feedback which is comprised of: 0 Alignment of individual contributions with organizational direction 0 Development and demonstration of competencies in the job, and 0 Measurement of levels of accomplishment of goals 0 Compensation - Established on a market-based approach to compensation comprised of: 0 Market based salary structure 0 A base pay program which rewards the development and 0 An incentive pay program which rewards the measurable achievement demonstration of competencies in the job, and of specific goals Any compensation increases granted under the program (either in base pay or incentive pay) are based on performance. One intent of the program is to align the goals of the City departments and individual management employees with the goals of the City Council, in conjunction with the City’s usual business cycle which operates on a fiscal year basis. Management Salary Structure: The key element of the employee base pay program is the base pay structure. Covering all management jobs, the base pay structure reflects competitive pay levels for jobs assigned to each pay grade and provides the basis for equitable pay decisions. Each year, the base pay structure is reviewed to ensure that salaries for management employees in the City of Carlsbad remain competitive with salaries paid by other local agencies. On October 1, 2002 ,the City Council adopted Resolution No. 2002-291 which adjusted the management salary structure by 5.5% to reflect the movement in the external salary market. These range adjustments are made before any base pay increases are calculated. page2 of# AB 16,928 Base Pay Increases: The City Council determines the budget amount for management base pay increases at the end of each fiscal year. Performance appraisals are completed for all employees, and each employee’s annual increase is determined by taking into consideration two factors: 1. Performance 2. Position in range Base pay increases are calculated using a Base Pay Matrix: FY 02-03 Budget Base Pav Matrix Position in Range Range Range Range Performance Rating Above Market Within Market Below Market Exceeds Expectations Achieves Expectations 0% B A 0% 0% 0% Needs Improvement 0% D C After all performance ratings are determined, the dollar amount approved by the City Council is spread appropriately to employees whose performance ratings and position in the range assigns them to cells A, B, C and D in the above Base Pay Matrix. Because the intent is to move high-performing employees who are paid below market range into the range as quickly as possible, the percentage granted to employees in cell A will be greater than the percentage granted to employees in cell B. Similarly, increases granted to employees rated in cell C will be higher than those granted to employees in cell D. The actual base pay salary adjustments to be given to management employees (in cells A, B, C and D) is not computed until all management performance reviews have been completed. However, at no time will the collective base pay increases granted to management employees exceed the budgeted amount authorized by the City Council. The amount of money used to fund the base pay matrix is set by the City Council on an annual basis and is based on the survey market data, the City’s economics and other factors as determined by the City Council. It is staffs recommendation that the City Council approve $570,000 to be used to fund the base pay matrix. This will result in individual base pay adjustments ranging from 0% to 8% (depending on an employee’s performance rating and position in the salary range), with an average base pay adjustment for management employees of 5.4%. Any base pay increases granted will be effective the pay period which includes July 1,2002. FISCAL IMPACT: The fiscal impact of the recommended Base Pay Matrix for management employees is approximately $570,000. Funding for this adjustment is included in the fiscal year 2002/2003 budget. EXHIBITS: 1. Resolution No. 2002-301 1 2 f 4 - Y c 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. 2002-301 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ESTABLISHING A BASE PAY INCREASE MATRIX TO PROVIDE FOR BASE PAY INCREASES FOR ELIGIBLE MANAGEMENT EMPLOYEES 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 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 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 performance. I!! I!! /I! 1 2 < 4 c c E 7 a 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 the City Council hereby authorizes $570,000 from the fiscal year 2002/2003 budget to be used to provide base pay increases for management employees effective July 1,2002, based on performance during the previous fiscal year, to be paid prospectively in accordance with the Management Compensation Plan. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council, held on this 15 th day of OCTOBER , 2002, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, H; NOES: None ABSENT: None ATTEST: (SEAL) Page 2 of 2 of Resolution No. 2002-301 1