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HomeMy WebLinkAbout2002-07-01 City Council (5)TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: ~ SUBJECT: JULY 1, 2002 CMR: 320:02 APPROVAL OF RESOLUTIONS AMENDING COMPENSATION PLAN FOR MANAGEMENT, CONFIDENTIAL AND HOURLY PERSONNEL, AND AMENDING THE MERIT SYSTEM RULES AND REGULATIONS RECOMMENDATION This report recommends Council approval of the attached resolutions adopting compensation plan for Management and Confidential personnel and Hourly employees, effective for the pay periods including July 1, 2002 through June 30, 2003. Also recommended is approval of the attached resolution amending the Merit System Rules and Regulations to incorporate the amended compensation plan for Management and Confidential personnel. DISCUSSION Management and Confidential Employees Effective with the pay period including July 1, 2002, the compensation plan provides for a 3 percent control point increase to 176 Management and Confidential classifications. Under the Management Compensation Plan, control point adjustments are not automatically passed on to employees. Individual employee salaries are authorized by department heads, based upon performance. In addition to the control point increase, amendments to the Management and Confidential Compensation Plan include special control point adjustments to 13 management classifications, based upon external salary survey data, supervisory differential considerations, and internal alignment. These adjustments are included in Attachment A. Other compensation plan changes are: Variable Management Compensation salary calculations will be based upon the same fiscal year as the appraisal period. The Management and Confidential employees agree to a plan re-opener to consider CMR: 320:02 Page lof3 tying the City’s medical insurance contribution to the PERS Choice plan. This is with CMR: 320:02 Page 2of3 the understanding that the City will provide equivalent health care coverage through a self-funded PERS Choice Plus Fund and to discuss the issue of health plan costs for both active and retiree coverage. Hourly Employees. The salary ranges for 35 hourly classifications will be increased by 3 percent, effective with the pay period including July 1, 2002 in order to maintairi salary ranges at a competitive level. The full text of the compensation plan is attached with changes highlighted. RESOURCE IMPACT The annual cost for the proposed Management and Confidential Compensation Plan control point increase and the Hourly employee salary range increase is $1,149,000 with $804,000 in General Fund expenditure and $345,000 in Enterprise Fund expenditure. The 2002-03 Adopted Budget includes full funding of this expense within each fund’s respective salary contingency. Other compensation plan changes are cost neutral. POLICY IMPLICATIONS The action recommended by this report is consistent with City Council direction. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A - Attachment B - Attachment C - Attachment D - Special Control Point Adjustments Resolution Adopting a Compensation Plan for Management and Confidential Personnel Resolution Adopting a Compensation Plan for Hourly Employees Resolution Amending the Merit System Rules and Regulations PREPARED BY: Erica Gindraux, Human Resources Representative CMR: 320:02 Page 3of3