HomeMy WebLinkAbout2002-10-15; City Council; 16928; Amendment To Management Classification & Base PayCITY OF CARLSBAD - AGENDA BILL
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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.
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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.
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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
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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.
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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
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