HomeMy WebLinkAbout17-25 - Revising Executive Compensation - (4-16-17)RESOLUTION NO. 17-25
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.
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 April 16, 2017. 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
$10,444
$10,966
$11,514
$12,090
$12,694
$13,329
$13,995
Monthly
Director
$125,328
$131,592
$138,168
$145,080
$152,328
$159,948
$167,940
Annual
$60.25
$63.27
$66.43
$69.75
$73.23
$76.90
$80.74
Hourly
0075
Assistant City Manager
810
$13,249
$13,911
$14,607
$15,337
$16,104
$16,909
$17,754
Monthly
$158,988
$166,932
$175,284
$184,044
$193,248
$202,908
$213,048
Annual
$76.44
$80.26
$84.27
$88.48
$92.91
$97.55
$102.43
Hourly
0076
City Manager
840
$15,537
$16,314
$17,130
$17,987
$18,886
$19,830
$20,822
Monthly
$186,444
$195,768
$205,560
$215,844
$226,632
$237,960
$249,864
Annual
$89.64
$94.12
$98.83
$103.77
$108.96
$114.40
$120.13
Hourly
0080
Economic & Development
850
$11,821
$12,412
$13,033
$13,685
$14,369
$15,087
$15,841
Monthly
Services Director
$141,852
$148,944
$156,396
$164,220
$172,428
$181,044
$190,092
Annual
$68.20
$71.61
$75.19
$78.95
$82.90
$87.04
$91.39
Hourly
0069
Finance Director
772
$11,428
$11,999
$12,599
$13,229
$13,890
$14,584
$15,313
Monthly
$137,136
$143,988
$151,188
$158,748
$166,680
$175,008
$183,756
Annual
$65.93
$69.23
$72.69
$76.32
$80.13
$84.14
$88.34
Hourl
Resolution No. 17-25 Page 1 of 8
0223
Fire Chief
793
$13,023
$13,674
$14,358
$15,076
$15,830
$16,621
$17,452
Monthly
$156,276
$164,088
$172,296
$180,912
$189,960
$199,452
$209,424
Annual
$75.13
$78.89
$82.83
$86.98
$91.33
$95.89
$100.68
Hourly
0049
Information Technology
851
$11,133
$11,690
$12,275
$12,889
$13,533
$14,210
$14,921
Monthly
Director
$133,596
$140,280
$147,300
$154,668
$162,396
$170,520
$179,052
Annual
$64.23
$67.44
$70.82
$74.36
$78.08
$81.98
$86.08
Hourly
0306
Parks & Community
735
$11,133
$11,690
$12,275
$12,889
$13,533
$14,210
$14,921
Monthly
Services Director
$133,596
$140,280
$147,300
$154,668
$162,396
$170,520
$179,052
Annual
$64.23
$67.44
$70.82
$74.36
$78.08
$81.98
$86.08
Hourly
0207
Police Chief
792
$13,310
$13,975
$14,674
$15,408
$16,178
$16,987
$17,836
Monthly
$159,720
$167,700
$176,088
$184,896
$194,136
$203,844
$214,032
Annual
$76.79
$80.63
$84.66
$88.89
$9333
$98.00
$102.90
Hourly
0117
Public Services Director
791
$11,656
$12,239
$12,851
$13,494
$14,169
$14,877
$15,621
Monthly
$139,872
$146,868
$154,212
$161,928
$170,028
$178,524
$187,452
Annual
$67.25
$70.61
$74.14
$77.85
$81.74
$85.83
$90.12
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.
3.1 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 enrolled in either the CaIPERS 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.
Resolution No. 17-25 Page 2 of 8
3.2 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 CaIPERS 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.
3.3 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 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. The total contribution for tier
2 (2% @ 50) 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):
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.
Resolution No. 17-25 Page 3 of 8
3.4 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.
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 4. The following classifications shall be provided with a City vehicle or
monthly automobile allowance:
Assigned City Vehicle: Fire Chief, Police Chief
$650 Monthly Automobile Allowance: 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
Services 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 5. 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.
Resolution No. 17-25 Page 4 of 8
SECTION 6. 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
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 7. 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 8. 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. 17-25 Page 5 of 8
SECTION 9. 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
1-2
3-4
5-9
10-14
15-19
20+
Annual Accrual 40 -Hour
92
116
140
164
188
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 V 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 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.
SECTION 11. 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
Resolution No. 17-25 Page 6 of 8
• 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 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 12. The 401(a) deferred compensation plan provides executives with
another tax-deferred savings plan for future financial planning. The City will provide a
0.5% 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.
Resolution No. 17-25 Page 7 of 8
PASSED AND ADOPTED this 18th day of April, 2017.
Brenda Green, tity Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROyED AS TO FORM:
r
1
Thomas Duafte, 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. 17-25 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 18th day of April, 2017, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: Stephens, Genis, Foley
NOES: COUNCIL MEMBERS: Mansoor, Righeimer
ABSENT: COUNCIL MEMBERS: None
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19th day of April, 2017.
&J *3-6 - O%"
BRENDA GREEVA, CITY CLERK
Resolution No. 17-25 Page 8 of 8