HomeMy WebLinkAboutMinutes - September 21, 1999 SS245
CITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM
305 W. PINE STREET
TUESDAY, SEPTEMBER 21, 1999
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
September 21, 1999 commencing at 7:00 a.m.
ROLL CALL
Present: Council Members — Nakanishi, Pennino and Land (Mayor)
Absent: Council Members — Hitchcock and Mann
Also Present: City Manager Flynn, Deputy City Manager Keeler, Public Works Director Prima,
Human Resources Director Narloch, Fire Chief Kenley, Library Services Director
Martinez, City Attorney Hays and City Clerk Reimche
Also present in the audience was a representative from The Record.
TOPIC(S)
1. Compensation Study
ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at approximately 8:15 a.m.
ATTEST:
Ae')lh —
Alice M. Rei he
City Clerk
SUBJECT: Draft #2 Salary Policy Options and Parameters
COMPENSATION SURVEY PARAMETERS
"The City of Lodi wants to provide salaries to employees that are competitive and fair. In order to
maintain equity with the market and review internal relationships, the City will attempt to survey
the market every three to five years depending on the economy, organizational status and/or
negotiations.
Labor Market
The overall objective in selecting survey employers is to define as accurately as possible the City's
"Labor Market". A labor market consists of those employers with whom the City competes for
employees. The criteria typically utilized in identifying those employers includes the following:
• Employer Size - As a general rule, the more similar employers are in size and complexity, the
greater the likelihood that comparable positions exist within both organizations. Specifically,
agencies of similar size to the City are likely to have departmental structures and organization
of positions more similar to the City than organizations that are significantly larger or smaller in
size.
• Geographic Proximity - Geographic proximity is another factor utilized in identifying an
appropriate labor market. This factor is particularly important because it identifies those
employers that the City must directly compete with to recruit and retain quality staff.
Furthermore, by selecting employers within close geographic proximity, it ensures that the
resulting labor market will be generally indicative of the region's cost of living.
• Nature of Services Provided - As a general rule similar organizations are selected as survey
employers, because they all provide similar services. This is important because employers who
provide similar services are most likely to compete with one another for employees, they are
most likely to have comparable jobs, and they are most likely to have similar organizational
characteristics.
Draft Salary Policy Options and Parameters
Page l
Based on the above considerations, the City's labor market is presented below.
City of Chico
City of Clovis
City of Davis
City of Fairfield
City of Manteca
City of Merced
City of Modesto
City of Redding
City of Roseville
City of Stockton
City of Tracy
City of Turlock
City of Vacaville
City of Visalia
City of Woodland
Benchmark Classes
Benchmarks are a representative classification from the City's class plan that are surveyed in the
market to determine a market linkage for the salary plan. Generally, the following guidelines
should be used to determine benchmarks:
• The journey level class within a class series (e.g. professional, technical, maintenance,
and office support).
• Either the first-line supervisor or division head depending on the occupational structure.
0 Selected specialized classes that have a highly likelihood of comparability on the market.
Draft Salary Policy Options and Parameters
Page 3
Survey Scope
The scope of the survey will include collection of the following information for each survey class:
• Title of each comparable class.
• Entry and top step monthly salary.
• Reporting and supervisory relationships.
• Major functional areas of assignment.
• Effective date of the salaries.
• Next planned salary increase, if available.
SALARY SURVEY METHODOLOGY
The salary plan should be developed using sound principles and practices of compensation
administration. The following process should occur to develop a integrated pay plan:
1. The mean (average) top step labor market salary is used to set the top step of the City of Lodi
benchmark classification salary.
2. All classes are then set to the benchmarks using internal relationship guidelines typically
utilized by local government agencies:
• Approximately 15% between trainee and entry level classes in a series.
• Approximately 10% between entry and journey level classes in a series.
• Approximately 10% - 15% between journey and advanced journey level classes in a
series depending on the level of supervision exercised.
• Approximately 15% between first-line supervisor and subordinate classes.
• Approximately 15% - 20% between supervisors and section heads depending on levels
within the organization structure.
As a practical matter, there could be occasions when market data will skew internal alignments.
In those cases internal alignments may take precedence over market data. Consideration will be
given to maintaining the integrity of internal alignments.
Draft Salary Policy Options and Parameters
Page 4
IMPLEMENTATION
There are two aspects of implementing a salary plan. The first affects the classification and the
second affects the incumbent. The information provided above describes the development of the
compensation plan. The next step is to determine the implementation process for the actual
salaries of the employees.
It is the City's philosophy to implement salary plans to the fullest extent possible (e.g. set
employee salary in the new range consistent with the step in the current range). However, there
are times, due to economics, when the City's ability to pay will affect the implementation of
salary surveys. Due to unforeseen contingencies, the City will determine each time which cost
option to use to implement study results. Described below are options the City may consider:
Cost Options
1. Set the new salary of the employee to the same step in the new range equal to the current
step (e.g., E step to E step)
2. Set the new salary of the employee to the step nearest (but no less than) the existing
salary (e.g., E step to B step)
3. Set the new salary of the employee to the new range with a minimum increase of 5%
above the current salary.
There are three types of resulting implementation actions depending on the disparity between the
old salary range and the new range and where the employee falls within their current range.
Described below are the three possible impacts for individual employee salary.
• The current salary is below the new range. Action would depend on the cost option
selected for implementation.
• The current salary is within the new range. Action would depend on the cost option
selected for implementation.
The current salary is above the new range. The employee salary would be held until the
range reaches the incumbent's salary ("Y -rating").
THE CITY MAY EXPLORE THE POSSIBILITY OF A BONUS SYSTEM FOR LONG TENURED
EMPLOYEES BASED ON ACHIEVEMENT OF SPECIFIC GOALS AND OBJECTIVES. THIS WOULD BE A
DIFFERERENT SYSTEM AND PROCESS THEN OUTLINED IN THIS POLICY.
END
XXXXXXXX
SUBJECT: Draft 92 Salary Policy Options and Parameters
COMPENSATION SURVEY PARAMETERS
The City of Lodi wants to provide salaries to employees that are competitive and fair. In order to
maintain equity with the market and review internal relationships, the City will attempt to survey
the market every three to five years depending on the economy, organizational status and/or
negotiations.
Labor Market
The overall objective in selecting survey employers is to define as accurately as possible the City's
"Labor Market". A labor market consists of those employers with whom the City competes for
employees. The criteria typically utilized in identifying those employers includes the following:
• Employer Size - As a general rule, the more similar employers are in size and complexity, the
greater the likelihood that comparable positions exist within both organizations. Specifically,
agencies of similar size to the City are likely to have departmental structures and organization
of positions more similar to the City than organizations that are significantly larger or smaller in
size.
• Geographic Proximity - Geographic proximity is another factor utilized in identifying an
appropriate labor market. This factor is particularly important because it identifies those
employers that the City must directly compete with to recruit and retain quality staff.
Furthermore, by selecting employers within close geographic proximity, it ensures that the
resulting labor market will be generally indicative of the region's cost of living.
• Nature of Services Provided - As a general rule similar organizations are selected as survey
employers, because they all provide similar services. This is important because employers who
provide similar services are most likely to compete with one another for employees, they are
most likely to have comparable jobs, and they are most likely to have similar organizational
characteristics.
Draft Salary Policy Options and Parameters
Page 2
Based on the above considerations, the City's labor market is presented below.
City of Chico
City of Clovis
City of Davis
City of Fairfield
City of Manteca
City of Merced
City of Modesto
City of Redding
City of Roseville
- City of Stockton
City of Tracy
City of Turlock
City of Vacaville
City of Visalia
City of Woodland
Benchmark Classes
Benchmarks are a representative classification from the City's class plan that are surveyed in the
market to determine a market linkage for the salary plan. Generally, the following guidelines
should be used to determine benchmarks:
• The journey level class within a class series (e.g. professional, technical, maintenance,
and office support).
• Either the first-line supervisor or division head depending on the occupational structure.
• Selected specialized classes that have a highly likelihood of comparability on the market.
Draft Salary Policy Options and Parameters
Page 3
Survey Scope
The scope of the survey will include collection of the following information for each survey class:
• Title of each comparable class.
• Entry and top step monthly salary.
• Reporting and supervisory relationships.
• Major functional areas of assignment.
• Effective date of the salaries.
• Next planned salary increase, if available.
SALARY SURVEY METHODOLOGY
The salary plan should be developed using sound principles and practices of compensation
administration. The following process should occur to develop a integrated pay plan:
1. The mean (average) top step labor market salary is used to set the top step of the City of Lodi
benchmark classification salary.
2. All classes are then set to the benchmarks using internal relationship guidelines typically
utilized by local government agencies:
• Approximately 15% between trainee and entry level classes in a series.
• Approximately 10% between entry and journey level classes in a series.
• Approximately 10% - 15% between journey and advanced journey level classes in a
series depending on the level of supervision exercised.
• Approximately 15% between first-line supervisor and subordinate classes.
• Approximately 15% - 20% between supervisors and section heads depending on levels
within the organization structure.
As a practical matter, there could be occasions when market data will skew internal alignments.
In those cases internal alignments may take precedence over market data. Consideration will be
given to maintaining the integrity of internal alignments.
Draft Salary Policy Options and Parameters
Page 4
IMPLEMENTATION
There are two aspects of implementing a salary plan. The first affects the classification and the
second affects the incumbent. The information provided above describes the development of the
compensation plan. The next step is to determine the implementation process for the actual
salaries of the employees.
It is the City's philosophy to implement salary plans to the fullest extent possible (e.g. set
employee salary in the new range consistent with the step in the current range). However, there
are times, due to economics, when the City's ability to pay will affect the implementation of
salary surveys. Due to unforeseen contingencies, the City will determine each time which cost
option to use to implement study results. Described below are options the City may consider:
Cost Options
1. Set the new salary of the employee to the same step in the new range equal to the current
step (e.g., E step to E step)
2. Set the new salary of the employee to the step nearest (but no less than) the existing
salary (e.g., E step to B step)
3. Set the new salary of the employee to the new range with a minimum increase of 5%
above the current salary.
There are three types of resulting implementation actions depending on the disparity between the
old salary range and the new range and where the employee falls within their current range.
Described below are the three possible impacts for individual employee salary.
• The current salary is below the new range. Action would depend on the cost option
selected for implementation.
• The current salary is within the new range. Action would depend on the cost option
selected for implementation.
• The current salary is above the new range. The employee salary would be held until the
range reaches the incumbent's salary ("Y -rating").
THE CITY MAY EXPLORE THE POSSIBILITY OF A BONUS SYSTEM FOR LONG TENURED
EMPLOYEES BASED ON ACHIEVEMENT OF SPECIFIC GOALS AND OBJECTIVES. THIS WOULD BE A
DIFFERERENT SYSTEM AND PROCESS THEN OUTLINED LN THIS POLICY.
END
XXXXXXXX
COST OPTION NO. 1
Example: CITY MID -MANAGEMENT WORKER
CURRENT SALARY RANGE:
PROPOSED RANGE INCREASE:
PROPOSED SALARY RANGE:
STEP A STEP B STEP C STEP D STEP E
$ 3,000 $ 3,150 $ 3,308 $ 3,473 $
15%
$ 3,450 $ 3,623 $ 3,804 $ 3,994 $
3,647
4,193
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COST OPTION NO. 3
Example: CITY MID -MANAGEMENT WORKER
STEP A STEP B STEP C STEP D STEP E
CURRENT SALARY RANGE: $ 3,000 $ 3,150 $ 3,308 $ 3,473 $ 3,647
PROPOSED RANGE INCREASE:
15%
PROPOSED SALARY RANGE: $ 3,450 $ 3,623 $ 3,804 $ 3,994 $ 4,193