HomeMy WebLinkAbout1997-11-18; City Council; Resolution 97-6764 0 e ATTACHMENT 1
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RESOLUTION NO. (97-676
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA REPEALING THE MANAGEMENT
COMPENSATION PLAN AND ADOPTING A NEW
MANAGEMENT COMPENSATION AND BENEFITS PLAN
(INCLUDING A NEW MANAGEMENT SALARY STRUCTURE)
EFFECTIVE JANUARY 1,1998; REPEALING COUNCIL POLICY
NO. 36; AUTHORIZING THE CITY MANAGER TO
ADMINISTER THAT FORMAL PERFORMANCE
MANAGEMENT AND COMPENSATION PLAN FOR
MANAGEMENT EMPLOYEES; AND MAKING AN
APPROPRIATION THEREFOR
WHEREAS, the City Council has concluded that there needs to be a connection
between the individual management employee’s role and the City’s business goals and
results; and
WHEREAS, the City Council has further concluded that there should be a clear
and visible link between management employee performance and rewards; and
WHEREAS, the City Council has directed staff to design and develop a
performance management system for management employees which accomplishes the
following key objectives:
0 Rewards high performance
0 Links pay to performance
Is market driven
0 Is a unique system for managers, separate and distinct from the bargaining
units
0 Gives the City Council control over bottom line costs and flexibility to adjust
to different economic situations
0 Makes good business sense; and
WHEREAS, the City Council has thoroughly reviewed the key elements that are
being recommended to the City Manager; and
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WHEREAS, the City Council has determined that these elements are consistent 1
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3 management employees in the City of Carlsbad; and
with the Council's philosophy regarding performance appraisal and compensation of
4 WHEREAS, the City Council wishes to authorize the City Manager to administer
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g Carlsbad as follows:
a Performance Management and Compensation Plan for employees in management
classifications;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of
10 1. That Council Policy No. 36 is hereby repealed, effective December 3 1, 1997.
l1 ll 2. That the current Management Compensation Plan (being Exhibit A to
12 II I! Resolution NO. 93-28 dated February 2, 1993) is hereby repealed, and a new Management
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3. That the City Council authorizes the City Manager to administer that 16
January 1, 1998, including the Management Salary Structure, Attachment A thereto.
Compensation and Benefits Plan, attached hereto as Exhibit 1, is hereby adopted effective
I' 11 performance management and compensation plan for management employees.
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19 /I 4. That the full scope of this program will be outlined by the City Manager in an
20 Administrative Order and that this Administrative Order may be periodically modified.
21 5. That the City Council hereby appropriates $244,000 from the contingency
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account of the general fund and other fund balances as appropriate to provide merit
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across-the-board increases be passed through to management employees. 27
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increases for management employees for the CY 1997 appraisal period, in accordance
with Section I11 of the current Management Compensation Plan, notwithstanding its
repeal. In no event shall the 1998 police, fire or general City bargaining unit employees'
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6. That the City Council hereby approves the transition plan and resolves to 1
2 /I consider the level of funding for base pay increases for a six month period from January
3 through June of 1998 during its review of the FY 1998/99 Operating Budget.
4 7. That the City Council hereby further resolves to consider the level of funding
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for both base pay and incentive pay for fiscal year 1998/99 during its review of the FY
7 1998/99 Operating Budget, consistent with the transition plan.
a PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad
9 City Council, held on this 18th day of November , 1997, by the following votes, to
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12 AYES: Council Members Finnila, Nygaard, Kulchin and Hall
13 11 NOES: Council Member Lewis
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ABSENT: None
ATTEST:
ALETHA L. RAUTENKkANZ, City Clerk
(SEAL)
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0 0 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 to administer a Performance
Management and Compensation System for management employees under the following general
guidelines.
The system is comprised of two major components:
0 Performance Management - emphasizing an employee development approach to
performance appraisal, comprised of: - Alignment of individual contributions with organizational direction,
a Development and demonstration of competencies in the job, and
j Measurement of levels of accomplishment of goals
0 Compensation - based on a market driven approach to compensation, comprised of:
a Market based salary structure
3 Base pay
3 Incentive Pay
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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:
0 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.
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
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An incentive pay program based on the measurable achievement of specific
goals
Market Based Salarv Structure - Base Pav 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 gay is unfixed and uncertain until
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 annual amount to be budgeted for management incentive pay, and an
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Incentive Pay matrix will be distributed to all management employees. This matrix will change
from 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.
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.
Manapement 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 541.5a, 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
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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 his/her 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.
e Vacation
All management employees shall earn vacation'on the following basis:
- Beginning with the first (1 st) working day through the completion of five
(5) full calendar years of continuous service - 80 hourdyear (3.08 hours
biweekly).
- Beginning the sixth (6th) year of employment through the completion of
ten (1 0) 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 hours/year
(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).
- Beginning the thirteenth (1 3 th) year of employment through the
completion of thirteen (1 3) full calendar years of continuous service - 144
hourdyear (5.54 hours biweekly).
- Beginning the fourteenth (14th) 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 (6.15 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
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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.
e 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 (1 0) 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).
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.
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e 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
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 hisher 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
absence without pay shall be delivered promptly to the Directors of
Finance and Human Resources.
C. Length of Leave and Extension
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
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extension is made no later than fourteen (14) 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 hisher Department Head at least
fourteen (1 4) 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 hisher 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.
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 hisher 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.
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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.
0 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.
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 Jw 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
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duration of the shift. Employees shall be entitled to keep mileage reimbursement
paid while on jury duty.
A Department Head may, at hisher sole discretion, contact the court and request
an exemption and/or postponement of jury service on behalf of an employee.
Employees released early from 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 oftravel time to the job site after release.
Health Insurance for Retirees
Employees who retire fiom 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 hisher 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.
Sick Leave Conversion
Any management employee who has accrued and maintains a minimum of one hundred (1 00)
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 fiom any of these referenced management
employees at the current rate.
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SeDaration 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.
Holidays
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)
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 Physical 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 andor physical fitness testing.
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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 Disabilitv 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.
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-
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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.
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Management Salary Struc hA ATTACHMENT A
i (Base Pay)
JOB TITLE GRADE MINIMUM MARKET RANGE
-I r Assistant City Manager 8
8 Community Development Director
$99,800 - $125,800 $86,800
8 Police Chief
8 Fire Chief
8 Financial Management Director
Assistant Ci Attorne 7 -
1 of3
0 Management Salary Stnxc la
(Base Pay)
JOB TITLE GRADE MINIMUM MARKET RANGE
2of3
b 6 Management Salary Struc t@
(Base pay>
JOB TITLE GRADE MINIMUM MARKET RANGE
Street Maintenance Supervisor
Systems Operations Supervisor
2
$3 8,600 - $47,200 $34,300 1 Community Arts Coordinator
2
Human Resources Assistant 1
Management Assistant 1
, Media Programming Specialist 1
Secretary To City Attorney
1 Secretary To City Manager
1 Secretary To City Council
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