HomeMy WebLinkAbout08-20 - Revising Executive Compensation Plan and Salary ScheduleRESOLUTION NO. 08-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, REVISING THE
EXECUTIVE COMPENSATION PLAN AND EXECUTIVE
SALARY SCHEDULE TO REFLECT CHANGES IN THE
ESTABLISHED LABOR MARKETPLACE.
The City Council of the City of Costa Mesa does hereby resolve, determine and order as
follows:
SECTION 1. The Costa Mesa City Council previously established the Executive
Compensation Plan to: 1) promote maximum commitment by City executives to objectives and
standards of the City Council and City Manager; 2) establish a system in which compensation
serves as an effective device for promoting better job performance; 3) foster the identification
of an executive employee group and recognize the distinct character of executive jobs; and, 4)
improve the City's ability to attract and retain outstanding executives.
The Human Resources Division annually conducts a survey of the total compensation paid
to comparable executive positions in the defined labor marketplace using the most current
information available. Historically, the elements of total compensation used in the comparisons
are as follows: top step base salary; employer -paid member retirement contribution; 125
cafeteria accounts or individual premiums for health, dental, life and disability insurances at
the family rate; deferred compensation contributions paid by the employer; auto allowance; the
value of enhanced retirement plans greater than the PERS 2%@60 (nonsworn) or PERS
2%@50 (safety) formulas; other elements prevalent within the marketplace that the City
Manager considers appropriate and that may influence the City's ability to retain and recruit
executive employees or remain competitive.
SECTION 2. The following job classifications, placed under the Executive Salary
Schedule, are hereby revised to reflect the salary ranges and monthly rates of pay specified,
effective the pay period beginning August 19, 2007. The rate of pay for individual executives
may be anywhere within the monthly minimum and maximum salary steps.
Class Class
Step
Code Title
Grade 1
2
3
4
5
6
7
APPOINTED AT -WILL EXECUTIVES
0075 Assistant City'Manager
810 $10,789
$11,328
$11,894
$12,489
$13,114
$13,769
$14,458
Monthly
$129,468
$135,936
$142,728
$149,868
$157,368
$165,228
$173,496
Annual
$62.24
$65.35
$68.62
$72.05
$75.66
$79.44
$83.41
Hourly
0076 City Manager
840 $14,102
$14,807
$15,547
$16,324
$17,141
$17,998
$18,898
Monthly
$169,224
$177,684
$186,564
$195,888
$205,692
$215,976
$226,776
Annual
$81.36
$85.43
$89.69
$94.18
$98.89
$103.83
$109.03
Hourly
APPOINTED AT -WILL SWORN DEPARTMENT DIRECTORS
0223 Fire Chief 793 $12,032
$12,634
$13,266
$13,929
$14,626
$15,357
$16,125
Monthly
$144,384
$151,608
$159,192
$167,148
$175,512
$184,284
$193,500
Annual
$69.42
$72.89
$76.53
$80.36
$84.38
$88.60
$93.03
Hourly
0207 Police Chief 792 $12,246
$12,859
$13,502
$14,177
$14,886
.$15,630
$16,411
Monthly
$146,952
$154,308
.$162,024
$170,124
$178,632
$187,560
$196,932
Annual
$70.65
$74.19
$77.90
$81.79
$85.88
$90.17
$94.68
Hourly
APPOINTED AT -WILL DEPARTMENT DIRECTORS
0091 Administrative Services Director 775 $10,042
$10,544
$11,071
$11,625
$12,206
$12,816
$13,457
Monthly
$120,504
$126,528
$132,852
$139,500
$146,472
$153,792
$161,484
Annual
$57.93
$60.83
$63.87
$67.07
$70.42
$73.94
$77.64
Hourly
0069 Finance Director 772 $9,906
$10,401
$10,921
$11,457
$12,040
$12,642
$13,275
Monthly
$118,872
$124,812
$131,052
$137,604
$144,480
$151,704
$159,300
Annual
$57.15
$60.01
$63.01
$66.16
$69.46
$72.93
$76.59
Hourly
0117 Public Services Director 791 $10,595
$11,125
$11,681
$12,265
$12,878
$13,522
$14,199
Monthly
$127,140
$133,500
$140,172
$147,180
$154,536
$162,264
$170,388
Annual
$61.13
$64.18
$67.39
$70.76
$74.30
$78.01
$81.92
Hourly
DEPARTMENT DIRECTORS IN THE CLASSIFIED SERVICE
0155 Development Services Director 797 $10,794
$11,334
$11,901
$12,496
$13,121
$13,777
$14,466
Monthly
$129,528
$136,008
$142,812
$149,952
$157,452
$165,324
$173,592
Annual
$62.27
$65.39
$68.66
$72.09
$75.70
$79.48
$83.46
Hourly
SWORN DIVISION MANAGERS IN THE CLASSIFIED SERVICE
0214 Battalion Chief 728 $8,116
$8,522
$8,948
$9,395
$9,865
$10,358
$10,876
Monthly
$97,392
$102,264
$107,376
$112,740
$118,380
$124,296
$130,512
Annual
$46.82
$49.17
$51.62
$54.20
$56.91
$59.76
$62.75
Hourly
0220 Deputy Fire Chief 771 $10,018
$10,519
$11,045
$11,597
$12,177
$12,786
$13,425
Monthly
$120,216
$126,228
$132,540
$139,164
$146,124
$153,432
$161,100
Annual
$57.80
$60.69
$63.72
$66.91
$70.25
$73.77
$77.45
Hourly
0219 Fire Marshal 154 $9,036
$9,488
$9,962
$10,461
$10,984
$11,533
$12,109
Monthly
$108,432
$113,856
$119,544
$125,532
$131,808
$138,396
$145,308
Annual
$52.13
$54.74
$57.47
$60.35
$63.37
$66.54
$69.86
Hourly
DIVISION MANAGERS IN THE CLASSIFIED SERVICE
0157 Assistant Development 761 $9,031
$9,483
$9,957
$10,455
$10,978
$11,527
$12,103
Monthly
Services Director $108,372
$113,796
$119,484
$125,460
$131,736
$138,324
$145,236
Annual
$52.10
$54.71
$57.44
$60.32
$63.33
$66.50
$69.83
Hourly
0068 Assistant Finance Director 750 $8,198
$8,608
$9,038
$9,490
$9,965
$10,463
$10,986
Monthly
$98,376
$103,296
$108,456
$113,880
$119,580
$125,556
$131,832
Annual
$47.30
$49.66
$52.14
$54.75
$57.49
$60.36
$63.38
Hourly
0059
Budget & Research Officer
740
$7,806
$8,196
$8,606.
$9,036
$9,488
.. $9,962
$10,460
Monthly
$93,672
$98,352
$103,272
$108,432
$113,856
$119,544
$125,520
Annual
$45.03
, $47.28
$49.65
$52.13
$54.74
$57.47
$60.35
Hourly
0142
Building Official
754
$8,942
$9,389
$9,858
$10,351.
$10,869
$11,412
$11,983
Monthly
$107,304
$112,668.
$118,296
$124,212
$130,428
$136,944
$143,796
Annual
$51.59
$54.17.
$56.87
$59.72
$62.71
$65.84
$69.13
Hourl
0023
City Clerk
892
$7,338
$7,705
$8,090.
$8,494.
. $8,919
$9,365
$9,833
Monthly
$88,056
$92,460 ,
$97,080
$101,928
$107,028
$112,380
$117,996
Annual
$42.33
$44.45
$46.67
$49.00
$51.46
$54.03
$56.73
Hourly
0112
City Engineer
751
$8,430
$8,852
$9,294
$9,759.
$10,247
$10,759
$11,297
Monthly
$101,160
$106,224
$111,528
$117,108
$122,964
$129,108
$135,564
Annual
$48.63
$51.07
$53.62
$56.30
$59.12
$62.07
$65.18
Hourly
0416
Fairview Park Plan
102
$6,616
$6,947
$7,295
$7,659
$8,042.
$8,444
$8,867
Monthly
Administrator
$79,392
$83,364
$87,54.0
$91,908
$96,504
$101,328
$106,404
Annual
$38.17
$40.08
$42.09
$44.19
$46.40
$48.72
$51.16
Hourly
0090
Human Resources Manager
748
$8,829
$9,270
$9,734
$10,220
$10,731
$11,268
$11,831
Monthly
$105,948
$111,240,
$116,808
$122,640
$128,772
$135,216
$141,972
Annual
$50.94
$53.48.
$56.16
$58.96
$61.91
$65.01
$68.26
Hourl
0047
Information Technology
741
$7,937
$8,334
$8,751
$9,188
$9,648
$10,130
$10,636
Monthly
Manager
$95,244
$100,008
$105,012
$110,256
$115,776
$121,560
$127,632
Annual
$45.79
$48.08
$50.49
$53.01
$55.66
$58.44
$61.36
Hourly
0077
Legislative & Public Affairs
140
$7,985
$8,385
$8,804
$9,244
$9,706
$10,192
$10,701
Monthly
Manager
$95,820
$100,620
$105,648
$110,928
$116,472
$122,304
$128,412
Annual
$46.07
$48.38
$50.79
$53.33
$56.00
$58.80
$61.74
Hourl
0451
Maintenance Services Manager
733
$8,022
$8,424
$8,845
$9,287
$9,751
$10,239
$10,751
Monthly
$96,264
$101,088
$106,140
$111,444
$117,012
$122,868
$129,012
Annual
$46.28
$48.60
$51.03
$53.58
$56.26
$59.07
$62.03
Hourly
.0160
Neighborhood Improvement
719
$7,350
$7,717
$8,103
$8,508
$8,934
$9,380
$9,849
Monthly
Manager
$88,200
$92,604
$97,236
$102,096
$107,208
$112,560
$118,188
Annual
$42.40
$44.52
$46.75
$49.08
$51.54
$54.12
$56.82
Hourly
0097
Police Administrative Services
756
$8,934
$9,381
$9,850
$10,343
$10,860
$11,403
$11,973
Monthly
Commander
$107,208
$112,572
$118,200
$124,116
$130,320
$136,836
$143,676
Annual
.$51.54
$54.12
$56.83.
$59.67
$62.65
$65.79
$69.08
Hourly
0305
Recreation Manager
893
$7,578
$7,957
$8,355
$8,773
$9,211
.$9,672
$10,156
Monthly
$90,936
$95,484
$100,260
$105,276
$110,532
$116,064
$121,872
Annual
$43.72
$45.91
$48.20
$50.61
$53.14
$55.80
$58.59
Hourly
0236
Telecommunications Manager
894
$8,048
$8,450
$8,873
$9,317
$9,782
$10,272
$10,785
Monthly
$96,576
$101,400
$106,476
$111,804
$117,384
$123,264
$129,420
Annual
$46.43
$48.75
$51.19
$53.75
$56.43
$59.26
$62.22
Hourly
0113
Transportation Services
745
$8,453
$8,876
$9,320
$9,786
$10,275
$10,789
$11,328
Monthly
Manager
$101,436
$106,512
$111,840
$117,432
$123,300
$129,468
$135,936
Annual
$48.77
$51.21
$53.77
$56.46
$59.28
$62.24
$65.35
Hourly
SECTION 3. The City of Costa Mesa has contracted with the California Public Employees
Retirement System (CaIPERS) to provide retirement benefits to eligible City employees under
the 2% at 55 formula for non -sworn classifications, 3% at 50 formula for sworn police
classifications and 3% at 55 formula for sworn fire classifications. For non -sworn
classifications, the City pays 7% of the employees' retirement contribution to the CaIPERS,
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and for sworn classifications, the City pays 9% of the employees' retirement contribution to
CalPERS. The City shall pay each affected employee's CalPERS normal member
contribution (as defined in §20677. of the California Government Code) into :an: individual
employee account with CaIPERS, pursuant to §20615 of the California Government Code, and
will include this payment in the employee's compensation earnable that is reported to
CaIPERS, pursuant to §20023(c)(4) of the California Government Code.
The City agrees to implement procedures to amend the CalPERS Miscellaneous Plan to
provide Government Code §21354.4 (2.5@55) retirement benefits to be effective on or about
October 1, 2008 for non -sworn classifications. Pursuant to CalPERS regulations, this new
formula will apply to all employees that are in active status on the date this amendment takes
effect. This new formula will apply to each year of eligible service credited with the City of
Costa Mesa.
In conjunction with the salary adjustments, employees in non -sworn classifications covered
by this resolution .shall contribute 1% of their salary toward the cost of the 2.5% at 55
CalPERS retirement benefit. To the extent permitted by CalPERS and the IRS regulations, this
1 % contribution shall be implemented through payroll deduction on a pre-tax basis.
Effective the pay period that includes September 1, 2008 the City will adjust the monthly
base salary for employees covered by this agreement by the average fair wage increase. In
conjunction with the salary adjustments, employees in non -sworn classifications shall
contribute an additional 2.6% of their salary toward the cost of the 2.5% at 55 CalPERS
retirement benefit for a total cost of 3.6% (both employer and employee rate based on
CalPERS actuarial data on September 1, 2007 and subject to update in 2008). If the. total cost
exceeds 4%, the parties agree to meet and discuss the payment for the excess amount over
4%. To the extent permitted by CalPERS and the IRS regulations, this 2.6% or greater
contribution shall be implemented through payroll deduction on a pre-tax basis.
SECTION 4. The following classifications shall be provided with a City vehicle or monthly
automobile allowance:
Assigned City Vehicle: Fire Chief, Deputy Fire Chief, Fire Marshal, Police Chief, Public
Services Director
$450 Monthly Automobile Allowance: City Manager, Assistant City Manager, Development
Services Director, Finance Director, Administrative Services Director
The monthly automobile allowance will be adjusted on an annual basis by the Department
of Labor's actual June Consumer Price Index (CPI -W) for Urban Wage Earners and Clerical
Workers for the Los Angeles -Anaheim -Riverside region up to a maximum amount equal to the
average monthly automobile allowance of the established survey agencies. In all situations,
the City Manager has the sole discretion to grant, modify or deny use of a City vehicle or grant
an allowance for Department Directors and Division Managers
SECTION 5. With exception of the City Manager, a pay -for -performance evaluation and
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compensation system will be utilized for all- employees in executive job classifications. All
compensation increases for executives will be based upon continued meritorious service to the
City. Though the City Manager may receive labor marketplace salary adjustments, annual
performance evaluations for this position will be conducted in the fall of each year by the City
Council.
. SECTION 6. The City shall contribute an amount toward the executive flexible benefit plan
bucket for the payment of premiums for affected employees and dependents. based upon the
following criteria:
• Full family coverage for the PERS Choice medical plan under the California Public
Employees' Retirement System (CALPERS) health insurance programs;
• Full family coverage for the Dental Indemnity plan;
• Full premium payment for Life Insurance;
• For Department Directors, the Long Term Disability premium will be based upon the top
step salary of the highest -salaried Department Director within the classified service;
• For Division Managers, the Long Term Disability premium will be based upon the top
step salary of the highest -salaried Division Manager within the classified service.
Any amounts necessary to maintain benefit premiums in excess of the City contribution
specified above shall be borne entirely by the executive employee.
SECTION 7. The City agrees to the implementation of a Fire Management
Certification/Education Program for Battalion Chiefs/Deputy Chiefs similar in nature to the
POST (Police Officer Standards and Training) program for Police Management. The specific
awards and. criteria will be established by the Fire Chief with the assistance of Human
Resources and subject to the approval of the City Manager or designee. Compensation will
range from 2.5% to 7.5%, but will not exceed a maximum of 7.5% (cumulative amount).
SECTION 8. Administrative Regulation 2.19 on Executive Leave establishes the provision
of 80 hours (112 hours for Battalion Chiefs) of Executive Leave for every executive employee.
Executives who are regularly assigned as staff support to the City Council, Planning
Commission or the Parks and Recreation Commission may be annually granted additional
Executive .Leave up to forty (40) hours. Executives who are involved in extraordinary major
projects or assignments may also be granted additional Executive Leave.up to forty (40) hours
based upon a Department Director recommendation, which includes documentation of
additional hours regularly worked. The City Manager has the sole discretion to grant or deny
additional Executive Leave hours. No employee shall be granted more than 120 Executive
Leave hours annually and, if additional hours are approved, the hours are subject to the same
carry forward limitations detailed in Administrative Regulation 2.19.
Off-duty executives in the Battalion Chief classification who are assigned by the Fire Chief
or designee to a twenty-four (24) hour fire suppression work shift for an emergency
assignment associated with an ongoing emergency incident or to replace another Battalion
Chief who is on an approved leave of absence, will receive an amount equivalent to one and
one-half times (1 Y2) their regular rate of pay (overtime). Monthly staff meetings or regular
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assignments will not be eligible for overtime and shift exchanges between two Battalion Chiefs
will not qualify for overtime compensation.
SECTION 9. Pursuant to the Executive . Professional Development Reimbursement
Program, the City agrees to reimburse Department Directors up to $2,000 and Division
Managers up to $1,000 per fiscal year for activities, materials, equipment or fees that will aid in
their individual professional development. The intent of this program is to encourage and
recognize executivestaff for pursuing educational, professional or community -oriented
activities, enhancing job skills and expertise, and/or purchasing materials/equipment, which
improve the executive's performance. These activities, materials, equipment or fees are
intended to be. beyond what is budgeted for individuals through the annual budget cycle. The
reimbursement options available include the following:
• Professional memberships, licenses and certificates that are job-related;
• Professional conferences that are job-related including fees and other expenses while
attending;
• Membership dues in community organizations relevant. to the executive's job
assignment;
• Purchase of job-related professional journals, periodicals, books or other written
materials which further knowledge or improvement of effectiveness in performance of
duties;
• Education fees that exceed the City's annual $1,000 tuition reimbursement limit;
• Direct purchase of qualifying computer equipment defined in Administrative Regulation
2.29;
• Annual payments for the Executive Computer Loan Guarantee Program defined below
up to the maximum $2,000 per fiscal year for Department Directors and $1,000 for
Division Managers.
The Department Director and Administrative Services Director must approve participation
in the activities and/or purchase of the materials/equipment in advance. Claims. for
reimbursement must be accompanied by documentation that an eligible expense has been
incurred during the fiscal year for the executive employee only. Any portion of the
reimbursement amount not incurred within the fiscal year shall remain City funds unless prior
approval has been received by the City Manager. Requests to carry forward unencumbered
amounts to the next fiscal year must receive approval by the City Manager prior to the end of
the fiscal year. All payments will be in the form of reimbursement and no executive employee
will directly receive cash for this benefit. Reimbursements, which are subject to taxation, will
be processed through the payroll system. The Finance Department shall administer this
program in accordance to the stated purpose and will provide the appropriate forms and
procedures. This reimbursement program does not prohibit individual departments from
continuing to budget funds for executive staff attendance at professional conferences and
seminars, for the payment of professional membership dues, and/or for the purchase of
books, journals and written materials that are job-related and will enhance an executive's
knowledge or expertise.
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SECTION 10. Executive employees who have passed probation and at -will Department.
.Directors are eligible to participate in the Executive Computer Loan Guarantee Program. The
City shall specify the minimum equipment configuration and it is the employee .who is
responsible to negotiate the price for the equipment and to bring a copy of the order/quote to
the MIS Division for approval before loan application and purchase. The executive must apply
for a loan with the Costa Mesa Federal Credit Union that will be subject to all Credit Union
lending practices. The City will agree to guarantee the loan for the executive.,. which thereby
will lower the interest rate on the loan:
Loan payments must be by payroll deduction. Each loan payment period shall not exceed
30 months and the aggregate value of the loan(s) shall not exceed $3,500 per executive. As a
condition of the program, terminating executives participating in the program must satisfy any
outstanding amounts of the loan with the final paycheck. The City will continue to provide the
software necessary for executives to have remote access to the City's servers and
compatibility to City software. In order for an executive to receive a loan under the program for
equipment upgrades or purchase of new equipment components that meet the City -approved
minimum configuration, the executive must certify that he/she already owns the remaining
components required to meet the minimum equipment configuration. Equipment purchased
under this program becomes the property of the executive. No more than once a year an
executive may request reimbursement for payments under the Executive Computer Loan
Guarantee Program along with Credit Union verification that the payments have been made by
the employee. Department Directors may request up to $2,000 and Division Managers up to
$1,000 per fiscal year under the Executive Professional Development Reimbursement
Program.
SECTION 11. Employees hired after January 1, 2004 will participate in the mandatory
Retirement Health Savings defined contribution plan and are not eligible for the Retired
Employees' Medical Program. The purpose of the Defined Contribution Retirement Health
Savings Plan (Plan) is to, establish a tax protected savings program for every full-time
employee that will:
• Provide a retiree medical benefit for employees hired after January 1, 2004 who will
not be eligible for the health insurance contribution under the Council Policy 300-1.
• Provide a supplemental benefit to the City contribution under Council Policy 300-1 for
current employees (hired before January 1, 2004).
The program will require mandatory participation by all full-time employees. Employees will
make a monthly contribution to the plan equal to 1 % of their base monthly salary, which will be
matched by a 1 % salary monthly contribution from the City into employees' accounts. The
account assets that accumulate, plus investment earnings, will be used in retirement to .pay
health insurance premiums and other eligible out-of-pocket medical expenses such as
deductibles, co -payments, vision care or dental care. Employee contributions plus vested
employer contributions will be portable if an employee should leave employment with Costa
Mesa prior to retirement.
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SECTION 12. The 401(a) deferred. compensation plan . provides executives with another
tax-deferred saving& plan for future financial planning. The City will provide a.:5% per pay
period employer contribution for any executive whose management group elects to participate
in the 401(a) plan. The employer contribution will be reflected in that: executive's annual total
compensation calculation. However, the City will not provide an employer contribution to the
current 457 deferred compensation plan and the executive must make all 457 contributions.
SECTION 13. All resolutions and parts of resolutions in conflict herewith .are hereby
rescinded.
PASSED AND ADOPTED this 1 st day of April, 2008.
ATTEST:
Juliog Folcik, City Clerk
Eric R. Bever, Mayor
APPROVED AS TO FORM:
,� &4,)
Kimberly Hall Barlow, City Attorney
1.1
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
. I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY. CERTIFY
that the above and foregoing is the original of Resolution No. 08-20 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 1 st day of April, 2008, by the following roll call vote, to wit:
AYES:
COUNCIL MEMBERS:
BEVER, MANSOOR, DIXON, LEECE
NOES:
COUNCIL MEMBERS:
NONE
ABSENT:
COUNCIL MEMBERS:
FOLEY
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 2nd day of April, 2008.
QP4:�? 44;�?
JUtIE FOLCIK, CITY CLERK
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