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HomeMy WebLinkAboutAgenda Report - February 2, 2005 K-05AGENDA ITEM K-0 5 AML CITY OF LODI COUNCIL COMMUNICATION M AGENDA TITLE: Discussion and appropriate action regarding authority of City Manager relating to salary adjustments MEETING DATE: Wednesday, February 2, 2005 PREPARED BY: Human Resources Director RECOMMENDED ACTION: Discussion and appropriate action regarding authority of City Manager relating to salary adjustments. BACKGROUND INFORMATION: The Lodi Municipal Code, Title 2, Administration and Personnel, Chapter 2.12, 2.12.060 (Exhibit A) sets forth the powers and duties of the City Manager who serves as the administrative head of the city underthe direction of the City Council. The duties of the City Manager include but are not limited to control over all departments and appointive officers with the specified direction that "Except for the purposes of inquiry, the City Council and its members shall deal with the administrative services solely through the City Manager and neither the City Council nor any member thereof shall give orders to any of the subordinates of the City Manager". (LMC 12.12.070, Exhibit A) The ability to grant merit increases or take them away lies within the scope of this authority as a matter of practice and Council approved procedure. The Executive Management Statement of Benefits, Article II, adopted by the City Council in March of 1998 (hereinafter "Statement", Exhibit B), specifically describes the executive management compensation system and the authorities of the City Manager. Although updated in 1998, the revised document did not change the long standing compensation principles and system that have been in effect. The system is based upon the concept of setting a control point (or mid -point) for each position. The control point is a point upon which the salary range for an executive management position is based. The bottom of the range is 10% below the control point and the ceiling of the range is 10% above the control point. (Statement, Para 2.3, sub. 1) Control points are recommended by the City Manager and approved by the City Council. (Id.) Typically, the control points are adjusted based upon external market comparisons and internal salary relationships. The Statement also explicitly states that the City Manager has the discretion to set the department heads' salaries within the range defining performance increase as: "a salary increase granted by the City Managerto an individual whose performance regularly exceeds job standards for that position. (emphasis added, Statement, Para 2.3, sub 4) On February 21, 2001, under Resolution 2001-53, the City Council adopted new salary ranges for department heads and decreased the ceiling of the range to 5% above the mid -point (Exhibit C). Council again took action on July 16, 2003 under Resolution 2003-131 (Exhibit D) to reinstate the control point ceiling of the range back to 10% above the mid -point. In that resolution council approved among other things: APPROVED. Blair Kindj�,<ity Manager 1. Salary increase for the City Manager Appointees (unrepresented) of 2.5 percent to be effective the first full pay period in July 2003; [and] 2. Reinstatement of the control point comparison to "C" step of the range to provide the City Manager with flexibility in setting salaries and determining merit increases effective immediately." (emphasis added, Exhibit D, sub 1 and 2) If Council wishes to pursue a new model for setting executive management salaries, staff recommends the City explore the employment contract model. Under this model, the City Manager would negotiate contracts and any subsequent amendments with individual Department Heads and bring them to Council for ratification. Contracts also provide for an efficient and cost-effective process to handle dismissals from service. COST: N/A cc: City Attorney Respectfullysubmitted, Jo nne M. Narloch_. Human Resources Director council in such sum as may be determined by the city council. (Prior code § 2-23) 112.050 Removal. T h e council shall appoint the city manag- er for an indefinite term and may remove him by a majority vote of its members. At least t!4 days before such removal shall become effective, the council shall by a majority vote of its members adopt a pre- liminary resolution stating the reason for his removal. The manager may reply in writing within ten days after receipt of notice of such preliminary resolution, and may re- quest a public hearing which shall be held not earlier than twenty days nor later than thirty days after the filing of such request. After such public hearing, if one is request- ed, and after full consideration, the council by a majority vote of its members may adopt a final resolution of removal. By the preliminary resolution the council may suspend the manager frau duty, but shall in any case cause to be paid h n forthwith any unpaid balance of his salary and his month- ly salary shall continue to be paid following adoption of the preliminary resolution until he is reinstated or removed. In event of removal, the city council shall appoint a new city manager within a reasonable time thereafter and must exercise due diligence in naming a successor. (Prior code § 2-24) 2.1.2.060 Powers and duties generally. The city manager shall be the administra- tive head of the city gbvemmcat under the direction and control of the council, except as otherwise provided by this code or other ordinance of the city. He shall be responsi- ble to the city council for the efficient ad- ministration of all the a.ft'aln of the city EXHIBIT A 2.12.040 which are under his control. In addition to the city manager's general powers as ad- ministrative head, and not as a limitation thereon, it is his duty and he shall have power: A- Enforcement of laws: To see that all laws and ordinances are duly enforced; B. Appointment, removal, etc., of certain officers: To employ, discipline or remove all heads of departments and all subordinate officers and employees of the city; to trans- fer employees from one department to an- other; and to consolidate or combine offic- es, positions, departments or uAts under his jurisdiction. Nothing contained in this sub- section shall apply, however, to the city attorney, city clerk or city treasurer, each of whom shall be appointed and removed by the city council; C. Control over departraeacs and ap- pointive cffi: To exercise control over all departments and divisions of the city government and over all appointive officers and employees thereof except as provided in this section; D. Attendance at council meetings: To attend all meetings of the council and its committees unless excused therefrom by the council or by the committee and except when his removal is under consideration by the council; E. Recommend ordinances: To recom- mend to the council for adoption such mea- sures and ordinances as he deems necessary or expedient; F. Adv'scit as to finances: To keep the city council at all times advised as to the financial conditions and needs of the city, and at least quarterly shall submit a finan- cial report; G. Reparation of budget: To prepare the budget annually and submit it to the council 17 (Lodi 7-91) 2.12.060 and be responsible for its administration after adoption; H. Annual report: To prepare and submit to the council as of the end of the fiscal year a complete report on the finances and administrative activities of the city for the preceding year; I. Salary plan: To prepare and recom- mend to the city council a salary plan; J. Purchasing: To purchase all supplies for a I I of the departments or divisions there- of, and no expenditure shall be submitted or recommended to the city council except upon report or approval of the city manager; K Investigationof city affairs: To make investigations into the affairs of the city or any department or division thereof or any ocnttiact, or the proper performance of any obligation running to the city; L. Investigation of complaints: To in- vestigate all complaints in relation to all matters concerning the administration of the government of the city and in regard to the service maintained by public utilities in the city, and to see that all franchises, permits and privileges granted by the city are faith- fully observed; M. Supervision of public buildings, parks, etc.: To exercise general supervision over all public buildings, public parks, streets and other public property which are under the control and jurisdiction of the city council; N. Organizational chart: To prepare and submit to the city council an organization dart showing the organization plan for all departments of the city -government; O. Issue licenses and permits: To issue on behalf of the council all licenses and permits not otherwise provided for by ordi- nance; (LO& 7-91) 18 EXHIBIT A P. Public works construction: To super- intend the construction of all public work done by the city; Q. Devotion of entire time to duties: To devote his entire time to the duties and interest of the city; R Delegated duties: To perform such other duties and exercise such other powers as may be delegated by ordinance or motion of the city council, S. Political activity: The city manager shall not participate in any city political activities or politics; T. Contracts: To execute on behalf of the city and without city council approval, contracts in the amount of five thousand dollars or less. Except in emergencies, all contracts exceeding five thousand dollars shall be approved by city council action. No omtract shall be split into smaller purchase orders or segments to avoid the provisions of this subsection or the requirements of Chapter 3.20 of this code. (Ord 1506 § 1, 1991; prior code § 2-25) 2.12.070 Council to deal exclusively through city manager. Except for the purpose of inquiry, the city council, and its members shall deal with the administrative services solely through the city manager, and neither the city coun- cil nor any member thereof shall give orders to any of the subordinates of the city man- ager. (Prior code $ 2-26) 2.12.080 Compensation.. The city manager shall receive such salary as the city council shall from time to time determine and fix by resolution or motion. (Prior code § 2-27) CITY OF LODI EXECUTIVE MANAGEMEyi' STATEMENT OF BENEFITS March. 1998 2.1 2.2 ?.3 EXHIBIT B ARTICLE II -COMPENSATION Purpose of the Executive Management Compensation System The primary purpose of the Executive Management compensation system is to recruit and retain the best available talent for a given position and provide incentives for peak performance. This requires that pay ranges be competitive in making the City a desirable place to work and that a rational pay and incentive system be 17 place. Compensation Principles The principles by which Lodi's Executive Nfanage-ment co::.oensation system operates are: • Market Eauitw Salary ranges [or a giv,-n positicn will normally be similar to salary ranges of comparable agencies for which the City of Lodi competes for employees. • Comoensation: Tne compensation of Executive Nfanag_ment employees will b - based on performance, market, and needs of the City. .accordingly, managers will receive as a minimum an annuat perfo:n-tance cva'uation Ge. -eloped behveen tie City Manager and the employee. Definitions Control Point - a point upon which the salary range fora --i Executive Management position is based. The bottom of the range is 10% below the Control Point, and the ceiling of the range is 10% above the Control Point. Contra! Points are recom--vended by the City Manager and approved by the City Cou7cil, using external salaC; comparisons and internal salary relationships. % vile there are no "steps" in Executive Management salan ranges, the Con-ot Poinr :-lav be considered to be similar to the "C" step for positions with stepped -ay rang -s. 2. Cost Of Living Increase - an increase to flnt Controi ?oint for each Executive Management position as approved by Council. A Cos- Of Living increase to the actual salary of an emplovee is sub; --c; :o approv a: by :he C':y Nfanager. I Equity Increase - a char.,: M the Contrc: Point 4 spLcirtc Executi�'e Nfanagement position, aoan r om the Cost Of Li%•irt; ...;cease, approved b%I Cite Council. Ln Equity Increase ma,. oe ;esti ed used uc or;an:zational changes, internal compartso^:; air =e - r^�-' " e i r �: -- a Ta r• c d: or ex. , u:- ;u rket su .� il' : be performed at a r;:lnim um o o-Lce e: -e: - three c _ ;k years. 2 CITY OF LODI EXECUTIVE MANAGEME`7 STATEMENT OF BE\'EFITS March. 199S 2.` 2.5 2.6 MIBIT B 4. Performance Increase — a salary increase granted by the City Manager to an individual whose performance regularly exceeds job standards for that position. A Performance Increase is designed to apply to a specific individual occupying an Executive Management position and will not raise the Control Point for that position. A Performance Increase may be granted up to a maximum of 10% percent above the Control Point for that position and shall not exceed the salary range. Normally performance increases will occur in steps of 5%. 5. Salary Range — a range of compensation, the bottom of which is 10% below the Control Point, and the ceiling of which is 10% above the Cont-ol Point for art Executive Management position. General Provisions 1. The Control Point will be the highest saiary which an err,o oyee may receive, except for Performance Increases as determined by the City &!mags:. 2. General adjustments to Executive Management salary ranges will be :.rade by moving the Control Point in the amour.: approved by th,2 City Council as a Cost Of Living increase or by salary survey. Executive salaries will be movtd in relation to Conrrol Point changes as determined by the City Ntanager. Appointments A person appointed to an Executive L',ianagernent position will receive a salary no less than 10%below the control point or 10% above the contro point. Performance Review — First Year After six months from the origiaal date of appointrzent and wit a satisfactory performance evaluation, the City Manager L -ay grar.: an incr:ase in sa'_ary of not more than 5°0. At one year from the original date or'appo!n:::-re-•, City Mager may grant an increa,-- in salar•,r of not mor-- tha:- 5°42. Annual Performance Review Th City Nianag�P.Y %vill u1%'eTopan zzival zvai��.:on tvtt:: enp oyr-e "%hich w"Ik inc'ud,- goais and objecti 'L1s in Cit; and 3::dget and orhe- objectives as may be considered to bz- appro zte EXHIBIT C RESOLUTION NO. 2001-53 A RESOLUTION OF THE LODI CITY COUNCIL IMPLEMENTING SALARY SURVEY FOR UNITED FIREFIGHTERS OF LODI (UFL). COUNCIL APPOINTEES. AND MANAGEMENT STAFF NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby approve and implement an overall 12.25% compensation increase for members of the United Firefighters of Lodi (UFL) bargaining unit, as shown on Exhibit A attached. Salary adjustments shall be effective the pay period in which January 1, 2001 falls: and BE IT FURTHER RESOLVED, tha! the City Council hereby approves chances in the holiday schedule for UFL non -shift personnel, changing cae (1)floating holiday to a fixed holiday, which will be Martin Luther King Jr. Day; and BE IT FURTHER RESOLVED, that the Lodi City Council hereby approves and implements an overall 9.04% compensation increase for the three Council Appointees, being the City Manager. City Attorney and City Clerk; and BE IT FURTHER RESOLVED, that the City Council further approves for Council Appointees and hereby implements a two percent (2%) deferred compensation match and an increase in insurance benefits to a level equivalent to that currently received by Department Heads, effective the first full pay period in January, 2001. FURTHER RESOLVED, that the City Council hereby approves new salary ranges for management staff as shown on Exhibit B attached hereto. Dated: February 21, 2001 hereby certify that Resolution No. 2001-53 was passed and adopted by the City Council of the City of Lodi in a regular meeting held February 21, 2001 by the following vole: AYES: COUNCIL MEMBERS — Howard, Land, Pennino and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Hitci^cock ABSTAIN: COUNCIL MEMBERS — None SUSHN SLA. STON City Clerk 2301-53 Sheet 2 - Management Staff Salary Ranges based on Control Point set at 5% below the mean of survey cities Prepared February 14, 2001 t� Recommended Low Control Paint Point High Point Cf'tiL..'._11AAL1lA ER 5118,000 CITY ATTORNEY $115,000 C11 -'Y CLERK $63,246 COMM CENTER DIR $87,697 $92,082 - 96686____ X3;109 $10152n 597.7 4 5106,596 $102.652 E' ' `Y& ECON DEV COM D E L E C UTI L D I R 570,976 S74,525 $78,251 S82,164 $86,272 $99,341 $104,309 $109,524 $115,000 $120,750 RIN.ANCE DIR FIRL CHIEF I-IUMAN RES DIR .HARKS &. RFC DIR POLICE CHIEF PUBLIC WORKS DIR $84,286 $88,501 $92,926 $97,572 $102,451 --.$87,904-._,_ S92,299 $96,914 $101,760 $106,848 $77,776 $81,665 -$85,7.49__. $90,036 587,697 $92,082 M68.6 5101,520 $4, $9.7,796 $102,686 $107,820 $94,538 S106,596 $113,211 _,139 _ 589,811 $60,351 594,302 $63,369 99,01Z��103,96 $66,537 $69,864 573,357 INFO SYS MANnG iR 1 Prepared February 14, 2001 t� RESOLUTION NO. 2003-131 EXHIBIT D A RESOLUTION OF THE LODI CITY COUNCIL APPROVING CERTAIN SALARYAND BENEFITS FOR CITY MANAGER APPOINTEES (UNREPRESENTED) WHEREAS, it is the policy of the City Council to provide fair and equitable compensation to employees for their services consistent with their qualifications, responsibilities, and performance; and WHEREAS, recently the City Council approved the recommended salary and benefit changes for City Manager Appointees. These changes include some increases to salary and benefits as well as a sharing of medical costs, similar to what was negotiated wv th various bargaining units. The specific changes are listed below. NOW, THEREFORE, BE IT RESOLVED, by the Lodi City Council that the following salary and benefit changes for City Manager Appointees (unrepresented) is hereby approved: 1. Salary increase for City Manager Appointees (unrepresented) of 2.5",'. to be effective the first full pay period in July 2003. 2. Reinstatement of control point comparison to "C" step of range to provide City Manager with flexibility in setting salaries and determining merit increases effective immediately. 3. Provide Martin Luther King, Jr. Day as an additional fixed holiday etiective January 2004 4. Provide cost of living increase effective pay period in which January 1, 2004 falls based upon formula at no less than 2% and no greater than 4% using consumer price index (San Francisco -Oakland -San Jose CPI -W). 5. Increase deferred compensation match Io 3% effectivefirst pay period of 2004. 6. Increase life insurance to two times annual salary effective as soon as administratively possible. 7. Implement sharing of cost of medical insurance as soon as administratively possible with employees contributing $80.00 per month for one dependent and S104.00 per month for employees covering more than one dependent. Dated: July 16, 2003 ------------------- I hereby certify that Resolution No. 2003-131 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 16, 2003, by the following vote: AYES: COUNCIL MEMBERS - Beckman, Hansen. Howard, and Lanc NOES: COUNCIL MEMBERS- None ABSENT: COUNCIL MEMBERS - Mayor Hitchcock ABSTAIN: COUNCIL MEMBERS- None SUSAN J. BLACKSTON City Clerk 2003-131