2004-001-Amending The Fiscal Year 2003-2004 Management Compensation Plan To Adjust The Health Insurance Cash Allocation, Amend The Administrative Leave Provision, And Adjust Compensation For Police Sergeants.RESOLUTION 2004 -1
RESOLUTION OF'THE TOWN OF LOS GATOS
AMENDING THE FISCAL YEAR 2003-2004
MANAGEMENT COMPENSATION PLAN
TO ADJUST THE HEALTH INSURANCE'CASH ALLOCATION,
AMEND THE ADMINISTRATIVE LEAVE PROVISION,
AND ADJUST COMPENSATION FOR POLICE SERGEANTS
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, .State of California, to adjust the health insurance cash allocation, amend the administrative
leave provision , .and adjust compensation for Police Sergeants as presented in the Fiscal Year 2003-
2004Management Compensation Plan, a copy of which is attached hereto as EXHI'~BIT A, is hereby
approved.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 20`'' day of January, 2004 by the following vote:
COUNCII. MEMBERS:
AYES:
NAYS.:
ABSENT:
Sandy Decker, Diane McNutt, Joe Przynski; Mike Wasserman,.
Mayor Steve Glickman
None
None
ABSTAIN: None
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SIGNED.: Y
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
~.~tJ ~
CLERK OF THE `TOWN OF LOS GATOS
LOS GATOS, ~t~A'LIFORNIA
EXHIBITA
TOWN OF LOS GATOS
MANAGEMENT
COMPENSATION PLAN
FiscalYear 2D03-2004
As Amended
1. PURPOSE
To establish a program and guidelines for a management compensation plan
.pursuant to the following goals and objectives:
• Establish a system for the payment of management personnel which results
inappropriate salary-contribution relationships and competitive salary rates.
• Recognize the distinct character of management jobs and incumbents as
opposed to .grouping them with other employees for salary purposes.
• Diminish the possible influence of negotiated salaries for rank-and file
employees on salaries set for management classifications..
• Promote more commitment by .management to goals and objectives of the
Town Council and Town Manager.
• Establish a system where salaryserves as an effective devicefor promoting
better job performance.
• Give recognition to impact of the employee on the job and performance level.
• Promote the further identification of management group and understanding
of associated roles,~loyalties, and responsibilities.
• Strengthen the role of the supervisor in the compensation program.
• Appropriately reward those employees whose extra effort results in the
improvement of Town services.
2. APPLICATION
This Policy shall apply to all employees occupying positions designated as
Management.
3. POLICY
a. Criteria For Establishing Ranges -Salary ranges shall be designed to ensure
satisfaction of the "equal pay for equal work" principle. It has been
determined thatthe maintenance of a strong competitive position inthe labor
market has a positive effect on the Town's ability to attract and retain highly
qualified personnel.
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Additionally, there are identifiable differences in work requirements :between
Los Gatos management and presumpfively .comparable positions 'in other
agencies. These differences argue against the setting of rates strictly on the
basis of "prevailing wage". To the degree possible, ranges will reflect
consideration of the relative value of positions. This consideration will take
into account differences and similarities in .positions, within the respective
management and employee groupings. The establishment and maintenance
of management ranges shall be guided by the princip a that no supervisor
should .receive less compensation than their highest .paid subordinate if a
similar amount of time is worked. The establishment and adjustment. of
salary ranges shall be .effected through resolution of the Town Council.
b. A and B Ranges -All management classes shall have. two ranges titled "A"
and "B". The ranges will be reviewed for possible adjustments to be effective
the first pay .period in the fiscal year and at such other times as the Town
grants general orcost-of-living adjustments. 'For Management Group'III, the
.general or cost-of-living adjustments shall be the. same as those granted to
the employeeassociation representing sworn positions. Range adjustments
also may be made to prevent salary compaction and ensure the objectives
of this plan are maintained.. Salary range adjustments shall apply to the
ranges only for Group 1 & II managers. Range adjustments may also be
made in the event of materially changed job assignments.
A Range -The "A" range is appropriate for entry Jevel and fully
qualified employees. The performance expectations are those which
would normally be associated with these levels. The range is to be
used to initially grant a salary based on anticipated performance level
and thereafter to recognize changes in such performance. The "A"
range will have a spread of 35% from entry to top salary with no set
steps (see Appendix A). The lowest salary in the range would be
appropriate for a new employee who minimally satisfies job
requirements. The top of the range is reserved for employees who
perform at the highest level of expected proficiency.
2. B Range -The "B" range is designed for those employees whose
performance and value to the Town clearly exceed normal
expectations. The top salary of any given "B" range shall exceed the
top salary of the A "range of the class by 15%. Placement in the
range is contingent upon the satisfaction of specific requirements and
approval of the Town Manager.
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c. Salary Progressions Within Ranges - :Employees, both upon appointment
and during the course of their employment, may receive any salary amount
not to exceed the maximum of their range. During the first three (3) years of
ernp'loyment, employees shall be reviewed for salary increases at such times
the Town Manager or department head deems appropriate, provided,
however, that at least one review will be conducted annually.
In FY 2003-2004, Management Group I and Group 11 evaluations will be
completed in September. Management Group l and Group II salary
adjustments, if any, will be delayed until at least January 2004. The sole
consideration in the granting of within-range salary adjustments shall be
performance.
Salary adjustments for employees below the level of Department Head shall
be .made upon the recommendation of the Department Head .and approval
of the Town Manager. Salary adjustments for Department Heads shall be
determined and approved by the Town Manager.
It is intended that incremental salary adjustments'bear adirect relationship
to progress of the employee toward satisfying performance expectations.
Upon employment, the employee and his/her supervisor shall develop a
progress plan including a definition of performance .goals, schedule of
performance reviews, and outline of possible within-range adjustments.
Range adjustments :average approximately 5%. Adjustments below and
above this amount are permitted. While salary adjustments normally involve
increases, reductions may be made in instances of unsatisfactory
performance. Prior to being finalized, progress .plans shall be reviewed and
approved 'by the concerned .Department Head or Town 'Manager in the case
of Department Heads.
d. .Labor Market Survey -Survey agencies making up the labor market base
shall be used as determined appropriate by the Santa Clara County
Employee Relations Service and Town Manager. The determination of
position comparability shall take into account scope of responsibility,
functions supervised, staff size, budget, .and related. factors. Consideration
will not be given to factors relating to incumbents., such as performance.,
length of service, and competency. Supplemental benefits shall be
considered .part of compensation ,paid. In order to determine the position of
the Town's benefit .package in relation to the labor market, benefit
information shall also be included in the survey of other municipalities.
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e. Exceptional Contribution Pair -The basic salary ranges "A" and "B" are
designed to ensure that employees have the potential of a salary which is
internally justified, competitive with salaries paid in other agencies, and/or
should provide compensation appropriate to productivity at the standards
established by the Town.. It is recognized, however., that some employees
may make an infrequent or "one time" significant contribution to the Town
which exceeds expectations orjob requirements.
The Exceptional Contribution Pay Program {ECPP) is designed to recognize
and encourage this type of .contribution. The ECPP is governed by the
following:
The contribution cannot be within job expectations and must result'in
an identifiable and clearly recognized positive impact on the Town.
Ordinarily such impact must be definable in terms of dollar cost
reductions and/or increased productivity without addifiional costs.
Examples of indicators of such a contribution include the following:
• Within the employee's area of responsibility there has been a
consistent, exceptionally high level of productivity with repeated
successful implementations of progressive and up-to-date operational
and managerial systems.,
• Employee initiates a series of innovative approaches to providing
Town services which result in ignificant cost savings with no
reduction in service level.'
• Employee develops programs or makes suggestions which resu t in
operational .improvements outside his/her normal area of
responsibility.
• Employee develops a program, system,, or procedure on his/herown
inifiative which results in a measurable significant improvement in
Town services or governmental efficiency.
ECPP may be granted at .any time by the Town Manager upon
recommendation by the employee's Department Head in an amount not to
exceed $2,OQ0.00. Amounts greater than $2,000.00 may be granted by the
Town Council upon recommendation of the Town Manager in an amount not
to exceed three (3) months' salary of the:affected employee. Payment shall
be made in a lump sum.
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4.
5.
GENERAL ADMINISTRATION AND PLAN REVIEW
The Town Manager shall be responsible for the annual review and proposed
changes to the Management Compensation ;Plan.
SUPPLEMENTAL BENEFITS
a. Eligibilitu - Management employees will be eligible for benefits on .the first
day of the month following their hire date.
b. No unexpended do lar amounts associated with selected benefits may be
disbursed to a terminating employee.
c. All'benefit se ections are subject to State .and Federal rules, regulations, and
laws regarding .employee benefits and tax status. No guarantee is made
regarding the tax-exempt status of any and all benefits presented or selected
except.those.allowed by law.
d. Benefit selections must be made during open enrollment . No change may
be .made after that time .unless such changes are a result of a qualifying
event or are permitted by the benefit plan.
e. Public Employees Retirement System -The Town shall continue to contract
with PERS to provide the 2% at 55 retirement program for non-safety
management personne and the 3% at 50 retirement .program for safety
management personnel.
Vacation
Management I -Accrual Schedule
0 - 60 mos. 15 days per year (4.62 hrs
61 - 1.20 mos. 20 days per year (6..15 hrs
121 mos. & over 25 days per year (7.70 hrs
Management II -Accrual Schedule
0 - 60 mos. 15 days per year (4.62 hrs.
61 - 120 mos.. 20 days per year (6.15 hrs.
.121 - 180 mos. 23 days per year {7.08 hrs.
181 mos. & over 25 days per year .(7.70 hrs..
per pay period)
per pay period)
per pay period)
per pay period)
p.er pay period)
per pay period)
per pay:period)
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Management III -Accrual Schedule
0 - 36 mos.. 10 days per year {3..08 hrs. per pay period)
37 to 60 mos. 15 days per year (4:62 hrs. per pay ,period)
61 to 120 mos. 20 days per year (6.16 hrs. per pay period)
121 to 9 80 mos. 23 days ,.per year (7.08 hrs. per pay period)
181 mos, & over 25 days per year (7.70 hrs per pay period)
The maximum uacation leave accrual shall be 500 hours for Management
and II. The maximum vacation leave accrual shall be 344 hours for
Management III. Accrual of vacation leave shall cease when he maximum
.accrual level is reached. The Town Manager has the authority to establish
vacation accrual rates for new managers at the time of hire., '.based upon
experience and years of service.
Vacation Cash-out - Vacation leave cash-out for Management Group I and
II sha11 be suspended for FY 2003-2004.. Group II1 Managers are eligible to
cash out up to 40 .hours of vacation based on accruals as of November 30tH
Cash-out will be paid during the month of December.
g. Personal Leave -Management Group I and II employees are eligible for a
maximum of forty-eight (48) hours personal leave each calendar year. For
Group I and Group 11 employees, personal leave has no .cash value, may not
be carried over from year to year, nor may it be cashed-out. Management
Group Ifl employees .are eligible for a maximum of twenty (20) hours of
personal leave and may cash out the leave if it is not used by the .end of
November. Cash-out will be paid during the month of December.
h. Sick Leave -Sick leave accrues at the rate of 8 hours per month (3.70 hours
.per pay period) with a 1100 hour accrual limit.
Sick .Leave Cash-out -Sick leave cash-out for Management Group I and II
shall be suspended for FY 2003-2004. Management Group I and II
employees who terminate employment with the Town, may cash out their
accrued sick leave as follows:
1 - 59 months of service at 25% of value
60 - 119 months of service at 37.5% of value
1 0 or more months of service at 50% of value.
In order to be eligible for the sick leave cash-.out program, the employee
must maintain a sick leave balance of at least 150 hours after the annual
cash-out. Employees who terminate with a stick leave balance of at least 1.50
hours may cash-out their entire balance pursuant. to the schedule above..
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Management Group .III employees may cash-out up to 40 hours of
accumulated sick leave at 50% of their current salary in December of each
year.
j. ~ Sick-leave Conversion at'Retirement -Employees who retire from the Town,
may convert 100% of the value of the accrued sick .leave to a dollar
equivalent at their hourly .rate of pay at the time of retirement. This amount
shall be held in an account under the control of the Town. The account will
not accrue interest and will not be paid in cash to the retiree or any
beneficiaries. The employee's portion of their medical payment shall be
withheld.. from their monthly retirement payment by PERS. From the account.
established, the Town will pay the retiree, quarterly in advance., the retiree's
portion of medical payments until all monies are depleted from the account
or the retiree dies, whichever occurs first. The retiree will be responsible for
100% of their share of future medical insurance payments once the account
is exhausted.
k Administrative Leave -Upon approval ofhis/her Department Head (or by the
Town Manager in the case of .Department Heads), Group I and Il
management employees are eligible for up to 40 hours administrative leave
with pay per calendar year. Upon approval of the Town Manager Group
I and Group II management employees are eligible for up to an
additional 40 hours of administrative leave. Total administrative leave
sha11 not exceed 80 ..hours per calendar year This leave may not
accumulate from year to year, nor may this leave be cashed-out.
Administrative leave may be granted in .recognition of extraordinary work
hours by management personnel. Specific examples include unanticipated
emergency situations.., extraordinary Council or Commission meetings, and
extensive weekend or evening work.
Salary Adjustments For Management Employees On Extended Leave - An
incumbent management employee who is on extended leave from his/her
position due to sickness, disability, or employee-initiated leave without pay
status shall receive no salary adjustment until returning to full-time work.
Salary adjustments., if any, will become effective after the. employee has
completed a full year of active employment since their last
evaluation/increase.
Vacation or sick leave may be used to assure continuation of payroll status
in order to retain insurance benefits under the cash allocation benefits
program. Employees who are absent from work .due to awork-related
.disability shall not be subject to the provision above and will be considered
for a salary adjustment on their anniversary date.
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m. .Leave Accruals. -Management employees shall not accrue vacation or sick
leave during any period of unauthorized leave, suspension without pay, or
leave without pay.
n. Continuation Of Benefits -Management employees shall continue to receive
fringe benefits so long as those employees remain on the Town payroll.
o. Disability Jnsurance-The Town will ..,provide for a Short Term Disability policy
effective the 8th calendar day; coverage of 60% of weekly earnings up to a
.maximum of $1,300/week for 12 weeks.: Long Term Disability benefits begin
on the 91st day of disability; coverage of 60% of .monthly earnings up to a
maximum of $6,000/mo.
p. Life Insurance -Management employees shall receive Town paid life
insurance coverage providing cover of $50.,000 life and $5D,000 accidental
death benefit or equal to annual salary, whichever is higher. Additional life
insurance may be purchased in accordance. with the Town's current life
insurance :carrier and relevant I.R.S. regulations.
q. Vision 'Plan - Group I & II management employees shall be enrolled Jn the
Town's vision-care health plan (VSP .Plan B with a $20 co-pay). The Town
shall pay for the employee-onlycoverage. At their own cost., employees may
enroll eligible dependents upon hire and at plan inception.
Employee Assistance Program -Management employees are eligible to
participate in the Town's employee assistance program.. The premium shall
be paid by the Town.
s. Cash Allocation Plan -Allocations are made to managers as provided in
Appendix B_ Benefits which can be purchased through the cash allocation
plan include medical., dental and vision insurance.. Managers hired as new
Town employees after June 3D, 2003 may use the cash allocation for the
purchase of benefits only. The .maximum cash-back allowed under the
cash allocation program on January 1 2004 shall be as follows•
Group I: $913 per month
Group it & III: $856 per month
Any amount received in cash is taxable. Employees electing to receive cash
have the option of receiving .payment in the first two paychecks of each
month (twenty-four times a year) or twice a year in December and June.
Deferred Compensation -The Town will .continue to offer a program of
deferred compensation to all managers.
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:APPENDIX A
MANAGEMENT COMPENSATION PLAN
BI-WEEKLY SALARY SCHEDULE
A-RANGE MAXIMUM FY 2003-2004
EFFECTIVE 1-4-2004
GROUPIMANAGERS
Police Chief $ 5,242.13
Community Development Director $ 4,781.49
Director of Parks & Public Works $ 4.,781.49
Assistant Town Manager $ 4.,781.49
Finance Director $ 4,567.09
Police Captain $ 4.,546.52
Community Services Director $ 4;359.53
Human'Resources Director $ 4;359.53
Library Director $ 4,359.53
Redevelopment and Economic Vitality Manager $ 4,359.53
GROUPIIMANAGERS
Assistant CommunityDevelopment'Director $ 4;045:25
Town Engineer $ 4.;045.25
Management Information Systems Manager $ 4,045.25
Superintendent $ 4..;039.76
Records & Communication .Manager $ 3,465.85
Accounting Manager $ 3,425:61'
Assistant Library Director $ 3,425:61
Parking Coordinator $ '3.,425:61
Parks and Public Works Supervisor $ 3,425.61
GROUP III MANAGERS
Police Sergeant $ 3,597..60
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APPENDIX B
MANAGEMENT 'S'UPPLEMENTAL BENEFITS
FY .2003-2004
.Effective January 1, 2004
GROUP I - $1,.076 per month
.Police Chief
Community Development Director
Assistant Town Manager
Director of Parks & Public Works
Finance Director
Police Captain
Library Director
Community Services'Director
Human Resources Director
Redevelopment and Economic Vitality Manager
- $1.,008 per month
Assistant Community Development Director
Assistant Library 'Director
Town Engineer
Management Information Systems Manager
Superintendent
.Records & Communication Manager
Accounting Manager
Parking Coordinator
Public Works Supervisor
P III - $1,008 per month
Police Sergeant
N:\MGR\GROGERS\CNF\COUNCIL\Management\2003\salary and benefit schedule, Mgt2003