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Home My WebLink About2020-37 - Revising the Executive Compensation Plan and Executive Salary ScheduleRESOLUTION NO. 2020-37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REVISING THE EXECUTIVE COMPENSATION PLAN AND EXECUTIVE SALARY SCHEDULE. 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 Executive Compensation Plan and Executive Salary Schedule was last passed and adopted by the City Council of the City of Costa Mesa on April 18, 2017 as Resolution 17-25 and sets forth terms and conditions of employment for covered classifications. SECTION 2. As a result of the impacts of COVID-19 on the City, the following modifications to Resolution 17-25 are effective the pay period including July 1, 2020 (i.e., June 21, 2020), as set forth in the Sections below: SECTION 3. Except as specifically provided below in Section 6, Section 8, and Section 10 hereof, this Resolution is effective at 12:00 a.m. on June 21, 2020 (the first day of the pay period including July 1, 2020) and sunsets at 11:59 p.m. on June 19, 2021. When this Resolution sunsets, all of its terms (except the provisions of Section 6 allowing use of 2021 Executive Leave in 2021, Section 8, and Section 10) terminate unless they are subsequently modified by action of the City Council. SECTION 4. During the term of this Resolution, employees covered by the Executive Compensation Plan and Executive Salary Schedule will be subject to a five percent (5%) furlough. This means that they will be scheduled to work five percent (5%) less hours and will receive five percent (5%) less pay during the term of this Resolution. If a future decision is made to close City Hall on Fridays or a furlough is not possible, there will be an alternative reduction in pay or benefits equivalent to a 5% furlough. The manner and method by which the reduction in pay (equivalent to a the dollar savings of a 5% furlough will be accomplished will be determined by the City. An Executive can select to reduce compensation in the flex benefit by an amount equivalent to a 5% furlough at his/her discretion. SECTION 5. During the term of this Resolution, the City agrees that employees covered by the Executive Compensation Plan and Executive Salary Schedule cannot be subject to layoff from City employment. This would not preclude a separation (e.g., a termination from employment) that was not a layoff. SECTION 6. Section 10 of Resolution # 17-25 is set forth below. For calendar year 2021, the City shall grant Executive Leave to management personnel not to exceed one - hundred (100) hours. Section 10, as set forth below will continue to apply in calendar year 2020. Unless changed by a future modification, current Section 10 of Resolution # 17-25 will Resolution No. 2020-37 Page 1 of 4 apply in 2022. The mandatory award of one hundred (100) hours of Executive Leave is only for calendar year 2021. Between January 1 and June 19, 2021, only 40 hours of Executive Leave may be used. From June 20, 2021 through December 31, 2021, employees may use the entire Executive Leave bank remaining to them from those provided for calendar year 2021. Executive Leave cannot be cashed out and unused Executive Leave does not carry over to subsequent years, and is otherwise restricted as provided in Administrative Regulation 2.19. SECTION 10. Effective December 24, 2017, the City shall grant Executive Leave to management personnel not to exceed forty (40) hours per year. The City Manager may grant an additional sixty (60) hours of Executive Leave. Executive Leave cannot be cashed out and unused Executive Leave does not carry over to subsequent years, and is otherwise restricted as provided in Administrative Regulation 2.19. SECTION 7. During the term of this Resolution, employees covered by the Executive Compensation Plan and Executive Salary Schedule are not permitted to cash out any of their vacation leave. Vacation accrual caps will be increased by 20 hours through December 31, 2021. When an employee submits a timely vacation leave request and the City Manager must deny the request or cancel a scheduled vacation due to operational needs of the City and/or Department, an exception may be granted by the City Manager. If such an exception is granted, an employee may be allowed to exceed the vacation accrual cap. SECTION 8. This section of this resolution does not terminate on June 19, 2021. Effective at the beginning of the pay period which includes July 1, 2020, (i.e. June 21, 2020) the Fire Chief will participate in the five percent employee furlough pursuant to Section 4 of this Agreement. Also effective at the beginning of the pay period which includes July 1, 2020, (i.e. June 21, 2020) the Fire Chief will pay an additional five percent (5.0%) of compensation earnable as retirement cost sharing in accordance with Government Code Section 20516(f) for a total payment of compensation earnable of 15 percent (15.0%) towards retirement similar to amounts paid by Fire Management not covered under this agreement and shall receive a five percent (5%) base salary adjustment.. The salary schedule is revised to reflect the salary range and rates of pay below. Class Code 0223 Title Salary Grade Plan Fire Chief EXE 793 $13,674 $164,088 $78.89 Step 2 3 4 $14,358 $15,076 $15,830 $172,296 $180,912 $189,960 $82.83 $86.98 $91.33 5 6 $16,621 $17,452 $199,452 $209,424 $95.89 $100.68 _ 7 $18,325 Monthly $219,900 Annual $105.72 Hourly The City will also calculate a contribution to a defined contribution plan for the Fire Chief in an amount to be determined by an actuarial valuation performed by a professional actuary. SECTION 9. If the City receives financial relief from the County of Orange, State of California, or the Federal Government for any issues related to the impact of COVID-19 in excess of $40.5 million for Fiscal Year 2020/2021, employees covered by the Executive Compensation Plan and Executive Salary Schedule will receive a one-time payment equivalent to furlough hours (base rate x furlough hours) or other reduction already taken. Resolution No. 2020-37 Page 2 of 4 SECTION 10. (a) If any bargaining unit in the City receives (through the labor negotiations process) a net base salary or certification/specialty/incentive pay increase that goes into effect on any date between July 1, 2022 and June 30, 2023, employees covered by the Executive Compensation Plan and Executive Salary Schedule will receive the same net base salary or certification/specialty/incentive increase on the same effective date as that association. If more than one other association receives a base salary or certification/ specialty/incentive increase (through the labor negotiations process) on any date between July 1, 2022 and June 30, 2023, employees covered by the Executive Compensation Plan and Executive Salary Schedule will receive the higher increase provided on the same effective date. (b) If any bargaining unit in the City receives (through the labor negotiations process) a net base salary or certification/specialty/incentive pay increase that goes into effect on any date between July 1, 2023 and June 30, 2024, employees covered by the Executive Compensation Plan and Executive Salary Schedule will receive the same net base salary or certification/specialty/incentive pay increase on the same effective date as that association. If more than one other association receives a base salary or certification /specialty/incentive increase (through the labor negotiations process) on any date between July 1, 2023 and June 30, 2024, employees covered by the Executive Compensation Plan and Executive Salary Schedule will receive the higher increase provided on the same effective date. Resolution No. 2020-37 Page 3 of 4 PASSED AND ADOPTED this 25th day of June 2020. ATTEST: Brenda Gree , City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) APPROVED AS TO FORM: Kimberly HA Barlow, City Attorney I, Brenda Green, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2020-37 and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 25th day of June, 2020, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: CHAVEZ, GENIS, MARK, REYNOLDS, STEPHENS, AND FOLEY NOES: COUNCIL MEMBERS: MANSOOR ABSENT: COUNCIL MEMBERS: NONE IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 26th day of June, 2020. 'zc&& &w� BRENDA GR EN, CITY CLERK Resolution No. 2020-37 Page 4 of 4