HomeMy WebLinkAbout2022-40 - Executive SalaryRESOLUTION NO.2022-40
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, CALIFORNIA HEREBY
FINDS, DETERMINES, AND DECLARES AS FOLLOWS:
WHEREAS, on April 18, 2017, the City Council adopted Resolution No. 17-25,
revising the pay ranges for job classifications in the Executive Salary Schedule effective
April 16, 2017; and
WHEREAS, on June 25, 2020, the City Council approved a furlough equivalent to
a five percent reduction in pay to address economic concerns during the COVID-19
Pandemic, a guarantee of no layoffs in Fiscal Year 2020-21, no vacation cash out FY
2020-21, a parity clause for negotiated salary and benefit increases, other benefit
changes, and a one-time payment equivalent to furlough hours or reduction taken should
the City receive stimulus funds in excess of $40.5 million; and
WHEREAS, on May 4, 2021, the City Council approved to cease the furlough and
provide staff with a one-time reimbursement for the pay reductions due to the furlough;
and
WHEREAS, on December 7, 2021 and March 15, 2022, the City Council approved
classification and pay range changes for various positions in the Executive Salary
Schedule to address recruitment and retention challenges; and
WHEREAS, the City Council further desires to rename the existing "Public
Services Director" job classification as the "Public Works Director" classification and to
revise the pay ranges for said classifications.
WHEREAS, the City Council desires to repeal and replace Resolution Nos. 2017-
25, 2020-37, 2021-12, 2021-33, 2021-51, 2021-53, 2022-18 to revise the pay ranges for
the classifications specified herein; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Resolution No. 2022-40 Page 1 of 11
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.
SECTION 2. The existing "Public Services Director' classification is hereby
renamed as the "Public Works Director' classification and the following pay ranges for the
Public Works Director classification are hereby established and placed under the Basic
Salary Administration Plan effective June 19, 2022.
SECTION 3. 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 June 19, 2022. The rate of pay for individual
executives may be anywhere within the monthly minimum and maximum salary steps.
Class
Class Title
Grade
Step
Code
1
2
3
4
5
6
7
0091
Administrative Services
775
$10,652
$11,185
$11,744
$12,331
$12,948
$13,595
$14,275
Monthly
Director
$127,824
$134,220
$140,928
$147,972
$155,376
$163,140
$171,300
Annual
$61.45
$64.53
$67.75
$71.14
$74.70
$78.43
$82.36
Hourly
0075
Assistant City Manager
810
$13,514
$14,190
$14,899
$15,644
$16,426
$17,247
$18,109
Monthly
$162,168
$170,280
$178,788
$187,728
$197,112
$206,964
$217,308
Annual
$77.97
$81.87
$85.96
$90.25
$94.77
$99.50
$104.48
Hourly
0080
Economic and Development
850
$13,498
$14,173
$14,882
$15,626
$16,407
$17,227
$18,088
Monthly
Development Services
$161,976
$170,076
$178,584
$187,512
$196,884
$206,724
$217,056
Annual
Director
$77.87
$81.77
$85.86
$90.15
$94.66
$99.39
$104.35
Hourly
0069
Finance Director
772
$13,519
$14,195
$14,905
$15,650
$16,433
$17,255
$18,118
Monthly
$162,228
$170,340
$178,860
$187,800
$197,196
$207,060
$217,416
Annual
$77.99
$81.89
$85.99
$90.29
$94.81
$99.55
$104.53
Hourly
0223
Fire Chief
793
$15,224
$15,985
$16,784
$17,623
$18,504
$19,429
$20,400
Monthly
$182,688
$191,820
$201,408
$211,476
$222,048
$233,148
$244,800
Annual
$87.83
$92.22
$96.83
$101.67
$106.75
$112.09
$117.69
Hourly
Resolution No. 2022-40 Page 2 of 11
0049 Information Technology 851 $12,800
$13,440
$14,112
$14,818
$15,559
$16,337
$17,154
Monthly
Director $153,600
$161,280
$169,344
$177.816
$186,708
$196.044
$205,848
Annual
$73.85
$77.54
$81.42
$85.49
$89.76
$94.25
$98.97
Hourly
0306 Parks and Community 735 $11,357
$11,925
$12,521
$13,147
$13,804
$14,494
$15,219
Monthly
Services Director $136,284
$143,100
$150,252
$157,764
$165,648
$173,928
$182,628
Annual
$65.52
$68.80
$72.24
$75.85
$79.64
$83.62
$87.80
Hourly
0207 Police Chief 792 $15,224
$15,985
$16,784
$17,623
$18,504
$19,429
$20,400
Monthly
$182,688
$191,820
$201,408
$211,476
$222,048
$233,148
$244,800
Annual
$87.83
$92.22
$96.83
$101.67
$106.75
$112.09
$117.69
Hourly
0117 Public Works Director 791 $13,498
$14,173
$14,882
$15,626
$16,407
$17,227
$18,088
Monthly
$161,976
$170,076
$178,584
$187,512
$196,884
$206,724
$217,056
Annual
$77.87
$81.77
$85.86
$90.15
$94.66
$99.39
$104.35
Hourly
SECTION 4. Except as expressly provided in the City Manager's Employment
Agreement, the City Manager shall receive the same benefits as the other Executives.
SECTION 5. Effective the payroll period that includes January 1 of each year
commencing on January 1, 2023, the City Manager is eligible to move to the next step in
the salary range which equates to a three percent (3%) base salary increase, pursuant to
the terms of her Employment Agreement
Eff Eff Eff Eff Eff
Pay Grade 12119/2021 1/112023 1/112024 11112025 1/112026
Class Code Class Title No. 1 2 3 4 5
0076 City Manager 850 $25,000 $25,750 $26,523 $27,318 $28,138 Monthly
$300,000 $309,000 $318,270 $327,818 $337,656 Annual
$144.23 $148.56 $153.01 $157.60 $162.33 Hourly
SECTION 6. The City of Costa Mesa has contracted with the California Public
Employees Retirement System (CaIPERS) to provide retirement benefits to eligible City
employees.
1. CaIPERS - Miscellaneous Members
Employees covered by this resolution who do not meet the definition of "new
member" under the California Public Employees' Pension Reform Act of 2013
(PEPRA) (those unit members shall be referred to as "classic members") are
Resolution No. 2022-40 Page 3 of 11
enrolled in either the CalPERS retirement plan provided for by Government Code
§ 21354.4, and commonly referred to as the 2.5% at age 55 retirement plan ("tier
1 "), or the 2% at 60 formula provided for by Government Code § 21353 ("tier 2").
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (2.5% @ 55) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier 2
(2% @ 60) unit members will be 10% of compensation earnable, inclusive
of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below):
Effective April 16, 2017, the total contribution for PEPRA tier 3 (2% @ 62)
unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
2. CalPERS - Safety Police Members
Employees covered by this resolution who do not meet the definition of "new
member" under the California Public Employees' Pension Reform Act of 2013
(PEPRA) (those unit members shall be referred to as "classic members") are
enrolled in the CalPERS retirement plan provided for by Government Code §
21362.2, and commonly referred to as the 3% at age 50 retirement plan ("tier 1
A. Classic Members:
Effective April 16, 2017, the total contribution for tier 1 (3% @ 50) unit
members will be 12% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below):
Effective April 16, 2017, the total contribution for PEPRA tier 2 (2.7% @ 57)
unit members will be 9% of pensionable compensation, inclusive of
statutory employee contributions and cost sharing.
Resolution No. 2022-40 Page 4 of 11
3. CalPERS — Safety Fire Members
Employees covered by this resolution who do not meet the definition of "new
member" under the California Public Employees' Pension Reform Act of 2013
(PEPRA) (those unit members shall be referred to as "classic members") are
enrolled in either the CalPERS retirement plan provided for by Government Code
§ 21362.2, and commonly referred to as the 3% at age 50 retirement plan ("tier 1 ")
or the 2% at 50 formula provided for by Government Code § 21362 ("tier 2").
A. Classic Members:
Effective June 21, 2020, the total contribution for tier 1 (3% @ 50) unit
members will be 15% of compensation earnable, inclusive of statutory
employee contributions and all cost sharing. The total contribution for tier
2 (2% @ 50) unit members will be 15% of compensation earnable, inclusive
of statutory employee contributions and all cost sharing.
B. New Members: Under PEPRA (see section 3.4 below):
Upon adoption of this resolution by the City Council, the total contribution
for PEPRA tier 3 (2.7% @ 57) will be 9% of pensionable compensation,
inclusive of statutory employee contributions and cost sharing.
4. THE CALIFORNIA PUBLIC EMPLOYEES' PENSION REFORM ACT OF 2013
(PEPRA)
As it may from time to time exist, the PEPRA shall in its entirety be given
full force and effect. PEPRA includes, but is not limited to, the provisions described
below:
Members hired on and after January 1, 2013, deemed to be a "new
member" as defined in Government Code § 7522.04, shall individually pay an initial
Member CALPERS contribution rate of 50% of the normal cost rate for the Defined
Benefit Plan in which said "new member" is enrolled, rounded to the nearest
quarter of 1 %, or the current contribution rate of similarly situated employees,
whichever is greater.
Resolution No. 2022-40 Page 5 of 11
Members who are "new members" on and after January 1, 2013, shall be
enrolled in the PEPRA provided for 2% @ 62 retirement formula for miscellaneous
employees (Govt. Code § 7522.20), or 2.7% @ 57 for safety employees (Govt.
Code § 7522.25(d)).
Members who are "new members" on and after January 1, 2013, shall have
"final compensation" measured by the highest average annual pensionable
compensation earned by the member during a period of at least 36 consecutive
months (Section 7522.32.), and their retirement benefits shall be calculated based
on "pensionable compensation" (Section 7522.10) rather than "compensation
earnable" (Section 20636).
SECTION 7. The following classifications shall be provided with a City vehicle or
monthly automobile allowance:
Assigned City Vehicle: Fire Chief, Police Chief
Assigned City Vehicle or up to $650 Monthly Automobile Allowance except as
expressly provided in the City Manager's Employment Agreement: City Manager
$575 Monthly Automobile Allowance: Administrative Services Director, Assistant
City Manager, Economic and Development Services Director, Finance Director,
Information Technology Director, Parks and Community Services Director, Public
Works Director
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 employees covered by this resolution.
SECTION 8. Employees covered by this resolution shall be provided with a $75
monthly technology allowance. The City Manager has the sole discretion to grant, modify
or deny an allowance for employees covered by this resolution.
SECTION 9. With exception of the City Manager, a pay -for -performance
evaluation and compensation system will be utilized for all employees in executive job
classifications. All compensation increases for executives will be based upon continued
Resolution No. 2022-40 Page 6 of 11
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 10. The Fire Chief and Police Chief are eligible to participate in the
Management Certification/Education Program based upon the following achievements
and criteria:
Certification/ Degree
P.O.S.T. Executive Certificate
National Fire Academy -
Executive Fire Officer
Master's Degree
Eligible Classification Award
Police Chief 5.0%
Fire Chief 2.50%
Fire Chief 2.50%
Awards are based on a percentage of base salary. The maximum cumulative
award payable to any employee shall not exceed 5.0% of base salary. These awards
shall be reported to PERS as "compensation earnable" and will be included as an element
of total compensation in the annual calculation.
An award may be granted, rejected or removed at any time. The City Manager
may review and update this program on a periodic basis to ensure its vitality and
relevance.
SECTION 11. 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
• Long Term Disability premium will be based upon the top step salary of the
highest -salaried Department Director 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.
Resolution No. 2022-40 Page 7 of 11
SECTION 12. Effective October 15, 2017, employees covered by this resolution
shall accrue vacation leave at the following rates and shall be capped at the following
maximum levels:
Years of Service
Annual Accrual 40-Hour
1-2
92
3-4
116
5-9
140
10-14
164
15-19
188
20+
212
Maximum Accrual 40-Hour
184
232
280
320
320
320
Vacation Leave Cash -Outs — Each fiscal year, employees will have the following
cash -out options: 1) One eighty (80) hour cash -out any time during the fiscal year,
regardless of the employee's maximum accrual and regardless of the employee's
Vacation Leave usage; and, 2) Up to four cash -outs per fiscal year, any time during the
fiscal year (irrespective of quarter), based on a "2 for 1" usage ratio, up to a maximum of
80-hours for each cash out. For example, if an employee uses 10 hours of Vacation
Leave, the employee could cash out up to 20 hours of Vacation Leave; in order for an
employee to cash -out the maximum of 80-hours Vacation Leave, the employee would
need to use 40 hours of Vacation Leave.
All employees who are at the Maximum Accrual Level or who may reach the
Maximum Accrual Level shall utilize the "Cash -Out" and/or "Vacation Leave" options so
as to NOT exceed the Vacation Accrual Ceiling. Other than exceptions granted based
upon City and/or Departmental needs as approved by the City Manager, there will no
other cash -out of Vacation Leave time beyond the Maximum Accrual rates that have been
established.
SECTION 13. 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 up to an additional sixty (60) hours of Executive Leave.
Resolution No. 2022-40 Page 8 of 11
SECTION 14. Pursuant to the Executive Professional Development
Reimbursement Program, the City agrees to reimburse Department Directors up to
$2,000 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 executive staff 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 $1,250 tuition reimbursement limit
• Direct purchase of qualifying computer equipment defined in Administrative
Regulation 2.29
The Assistant City Manager 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
Resolution No. 2022-40 Page 9 of 11
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.
SECTION 15. The 401(a) deferred compensation plan provides executives with
another tax -deferred savings plan for future financial planning. Effective August 29, 2021,
employees covered by the Executive Compensation Plan and executive salary schedule
shall receive a $15,000 annual contribution to the City's 401(a) plan. Except as provided
in the City Manager's Employment Agreement, executives must make any and all 457
deferred compensation contributions. The City shall contribute to City Manager's 457
account the maximum annual contribution permitted, including applicable catch-up
provisions. 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 16. 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.
SECTION 17. All resolutions and parts of resolutions in conflict herewith are
hereby rescinded.
Resolution No. 2022-40 Page 10 of 11
PASSED AND ADOPTED this 7th day of June, 2022.
ATTEST:
Brenda Gree*Ir, ity Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
;John Step ens, Mayor
APPROVED AS TO FORM:
C- J, '4' "
Kimberly H I 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. 2022-40 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 7th day of June, 2022, by the following roll call vote, to wit:
AYES: COUNCILMEMBERS: CHAVEZ, GAMEROS, HARLAN, HARPER, REYNOLDS,
MARR, AND STEPHENS
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 8th day of June, 2022.
32Ai duL 00,10
Brenda Green, ity Clerk
Resolution No. 2022-40 Page 11 of 11