2000-077-Approving The Management Compensation Plan For Fiscal Year 2000-2001, Amending The Agreement Between The Town Manager And The Town Of Los Gatos: Amending The Agreement Between The Town Attorney And The Town Of LoRESOLUTION 2000 - 77
RESOLUTION OF THE TOWN OF LOS GATOS
APPROVING THE MANAGEMENT COMPENSATION PLAN
FOR FISCAL YEAR 2000-2001, AMENDING THE AGREEMENT
BETWEEN THE TOWN MANAGER AND THE TOWN OF LOS GATOS;
AMENDING THE AGREEMENT BETWEEN THE TOWN ATTORNEY
AND THE TOWN OF LOS GATOS; AND AUTHORIZING THE MAYOR
TO EXECUTE THE AGREEMENTS
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Management Compensation Plan for Fiscal year 2000-2001 (a
copy of which is attached hereto as EXHIBIT A) is hereby approved.
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Letter of Agreement with the Town Manager, as amended, is
amended to read as follows: Increase salary to $5,089.39 per pay period, effective June 25, 2000.
The terms and conditions ofthe Letter of Agreement, except as herein and previously amended, shall
remain in full force and effect. The amendment to the Town Manager Letter of Agreement is
attached as Exhibit B and is incorporated herein. .
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the agreement with the Town Attorney , as amended, is amended to
read as follows: Increase salary to $4,240.93 per pay period, effective June 25, 2000. The terms and
conditions of the Agreement, except as herein and previously amended, shall remain in full force and
effect. The amendment to the Town Attorney Agreement is attached as Exhibit C and is
incorporated herein.
BE IT FURTHER RESOLVED, that the Mayor is authorized, and is hereby
directed, to execute said amendments to the Letter of Agreement with the Town Manager and the
Agreement with the Town Attorney in the name and on behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town
of Los Gatos, California, held on the 19' day of June, 2000 by the following vote:
COUNCIL MEMBERS:
AYES: Jan Hutchins, Linda Lubeck, Joe Pirzynski,
Mayor Steven Blanton.
NAYS: None
ABSENT: Randy Attaway and Linda Lubeck.
ABSTAIN: None
SIGNED:..
MA O OF THE TO O LOS S
LOS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF L GATOS
LOS GATOS, CALIFORNIA
EXHIBIT A
TOWN OF LOS GATOS
MANAGEMENT
COMPENSATION PLAN
Fiscal Year 2000-2001
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
in appropriate 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 salary serves as an effective device for 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 that the maintenance of a strong competitive position in the labor
market has a positive effect on the Town's ability to attract and retain highly
qualified personnel.
1
Additionally, there are identifiable differences in work requirements between
Los Gatos management and presumptively 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 principle 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 or cost -of -living adjustments. For Management Group III, the
general or cost -of -living adjustments shall be the same as those granted to
the employee association 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 I & 11 managers. Range adjustments may also be
made in the event of materially changed job assignments.
A Range - The "A" range is appropriate for entry level 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.
2
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
employment, 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.
Thereafter, employees will be reviewed annually on the date of their
employment in the position they occupy. 'Management Group I evaluations
and salary adjustments will be completed in September of each year. 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 a direct 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.
3
e. Exceptional Contribution Pay 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 or job 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 additional 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 significant cost savings with no
reduction in service level.
• Employee develops programs or makes suggestions which result in
operational improvements outside his/her normal area of
responsibility.
• Employee develops a program, system, or procedure on his/her own
initiative 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 $2,000.00. Amounts greater than $2,000.00 may be granted by the
Town Council upon recommendation ofthe Town Manager in an amount not
to exceed three (3) months'salary of the affected employee. Payment shall
be made in a lump sum.
4
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. Eligibility - Management employees will be eligible for benefits on the first
day of the month following their hire date.
b. No unexpended dollar amounts associated with selected benefits may be
disbursed to a terminating employee.
C. All benefit selections 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 personnel and the 2% at 50 retirement program for safety
Management personnel.
Vacation
Management I - Accrual Schedule
0 - 60 mos. 15 days per year (4.62 hrs. per pay period)
61 - 120 mos. 20 days per year (6.15 hrs. per pay period)
121 mos. & over 25 days per year (7.70 hrs. per pay period)
Management II - Accrual Schedule
0 - 60 mos. 15 days per year (4.62'hrs. per pay period)
61 - 120 mos. 20 days per year (6.15 hrs. per pay period)
121 - 180 mos. 23 days per year (7.08 hrs. per pay,period)
181 mos. & over 25 days per year (7.70 hrs, per pay period)
5
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 180 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 vacation leave accrual shall be 400 hours for Management I
and ll. The maximum vacation leave accrual shall be 344 hours for
Management III. Accrual of vacation leave shall cease when the 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 is permitted twice a year in December and June. Amount to be cashed out
is limited to the amount accrued.
9. Personal Leave -'Management Group'I and 'II employees are eligible for a
maximum of 48 hours personal leave each calendar year. Personal leave
is to be taken at employee discretion. Personal leave has no cash value,
may not be carried over from year to year, nor may it be cashed -out.
h. Sick Leave - Sick leave accrues at the rate of 8 hours per month (3.70 hours
per pay period) with a 1000 hour accrual limit.
Sick Leave Cash -out - Management` Group I and Il employees who terminate
employment with the Town, or twice a year in December or June, 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
120 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 the a sick leave balance of at least
150 hours may cash -out their entire balance pursuant'tothe schedule above.
n.
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.
Administrative Leave - Upon approval of his/her Department Head (or by the
Town 'Manager in the case of Department Heads), Group I and II
management employees are eligible for up to 40 hours administrative leave
with pay per calendar year. This leave is not cumulative 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.
k. Salary Adjustments For ManagementEmployees 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 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 a work -related
disability shall not be subject to the provision above and will be considered
for a salary adjustment on their anniversary date.
Leave Accruals - Management employees shall not accrue vacation or sick
leave during any period of unauthorized leave, suspension without pay, or
leave without pay.
M. Continuation Of Benefits - Management employees shall continue to receive
fringe benefits so long as -those employees remain on the Town payroll.
7
n. Disability Insurance -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.
o. Life Insurance - Management employees shall receive Town paid life
insurance coverage providing cover of $50,000 life and '$50,000 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.
P. Vision 'Plan - Effective August 1, 2000, Group I & 11 management employees
shall be enrolled in the Town's vision -care health plan (VS'P Plan B with a
$20 co -pay). The Town shall pay for the employee -only coverage. At their
own cost, employees may enroll eligible dependents upon hire and at plan
inception.
q. Employee Assistance Program - Management employees are eligible to
participate in the Town's employee assistance program. The premium shall
be paid by the Town.
r. 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 and dental insurance. Group I and 11 managers may
also purchase vision insurance through the cash allocation plan. These
benefits are available on a pre-tax basis.
Employees may also choose to receive part or all of their cash allocation in
cash. 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) pr twice a year in December and
June.
S. Deferred Compensation - The Town will continue to offer a program of
deferred compensation to all managers.
:
APPENDIX A
MANAGEMENT CLASSIFICATIONS
AND BI-WEEKLY SALARY SCHEDULE
FY 2000-2001
EFFECTIVE
EFFECTIVE
CLASSIFICATION
6/25/2000*
1 /7/01
Police Chief
$
4,482.25
$
4,571.89
Community Development Director
$
4,088.38
$
4,170.15
Assistant Town Manager
$
4,018.71
$
4,099.08
Director of Parks & Public Works
$
3,905.05
$
3,983,15
Finance Director
$
3,905.05
$
3,983.15
Police Captain
$
3,887.47
$
3,965.22
Library Director
$
3,727.59
$
3,802.14
Community Services Director
$
3,727.59
$
3,802.14
Assistant Community Development Director
$
3,458.86
$
3,52804
Town Engineer
$
3,458.86
$
3,528.04
Management Information Systems Manager
$
3,458.86
$
3,528.04
Parks/Forestry Superintendent
$
3,454.17
$
3,523.25
Maintenance Superintendent
$
3,454.17 .
$
3,523.25
HumanResources Manager
$
3,193.89
$
3,257.77
Police Sergeant
$
3,047.20
Unknown
Records & Communication Manager
$
2,963.46
$
3,022.73
Parks Maintenance Supervisor
$
2,959.48
$
3,018.67
Public Works Supervisor
$
2,959.48
$
3,018.67
Senior Librarian
$
2,929.05
$
2,987.63
* Effective 6/25/2000 employees shall begin to pay the employee share of PERS contribution (7% for
Miscellaneous, 9% for Safety), and the Town will discontinue paying employee contribution to PERS
(7% for Miscellaneous, 9% for Safety), except for Police Sergeants. Effective 12/13/98 the Town
discontinued paying employee contribution to PERS (9%) for Sergeants,, and the Sergeants began to
pay the employee share of PERS contribution (9%). The schedule above has been adjusted to reflect
the PERS conversion from benefits to salary.
6/15/00, 9:46 AM Biwkpay.xls, Mgmt Bi-weekly Pay 6-2000
i
APPENDIX B
MANAGEMENT SUPPLEMENTAL BENEFITS
FY 2000-2001
Effective June 25, 2000
GROUP I $8,940
Police Chief
Community Development Director
Assistant Town Manager
Director of Parks & Public Works
Finance Director
Police Captain
Library Director
Community Services Director
GROUP II - $8,380
Assistant Community Development Director
Town Engineer
Management Information Systems Manager
Parks/Forestry Superintendent
Maintenance Superintendent
Human Resources Manager
Records & Communication Manager
Parks Maintenance Supervisor
Public Works Supervisor
Senior Librarian
GROUP Ill - $5860
Police Sergeant
6/14/00,, 6:46 PM Biwkpay.Xls, Mgmt Suppl Benefits 6-2000
EXHIBIT B
AMENDMENT TO TOWN MANAGER LETTER OF AGREEMENT
This Amendment to Letter of Agreement is entered into this day of June, 2000, and is
effective as of June 25, 2000, by and between the Town of Los Gatos, a municipal corporation
("Town") and David W. Knapp.
RECITALS:
WHEREAS, Town and David W. Knapp executed Letter of Agreement approved on August
20, 1990, Which was amended by agreements dated March 2, 1992, October 16, 1992, September
29, 1993, April 4, 1995, November 20, 1995, October 8, 1997, September 21, 1999, October 18,
1999, and March 19, 2000; and
WHEREAS, effective June 25, 2000, the Town will cease its participation in the PERS
"Employer Paid Member Contribution" (EPMC and concurrently begin paying in salary to the Town
Attorney the equivalent dollar amount of the former EPMC (7% o).
IT IS THEREFORE AGREED by the parties as follows:
1. , The Letter of Agreement, as amended, is amended to read as follows:
Increase base salary to $5,089.39 per pay period effective June 25, 2000
2. The terms and conditions of the Letter of Agreement, except as herein amended and
previously amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town
Manager Letter of Agreement on the date written above, effective June 25, 2000.
TOWN OF LOS GATOS
16-M
acm
Steven Blanton, Mayor
David W. Knapp, Town Manager
ATTEST:
Marion V. Cosgrove, Town Clerk
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EXHIBIT C
AMENDMENT TO THE TOWN ATTORNEY AGREEMENT
This Amendment to Agreement is entered into this day of June, 2000, and is
effective as of June 25, 2000, by and between the Town of Los Gatos, a municipal corporation
("Town") and Orry P. Korb.
RECITALS:
WHEREAS, Town and Orry P. Korb executed an Agreement approved on April 7, 1997;
and
WHEREAS, effective June 25, 2000, the Town will cease its participation in the PERS
"Employer Paid Member Contribution" (EPMC and concurrently begin paying in salary to the
Town Attorney the equivalent dollar amount of the former EPMC (7%).
IT IS THEREFORE AGREED by the parties as follows:
The Agreement is amended to read as follows:
Increase annual base salary to $4,24093 per pay period effective June 25, 2000
2. The terms and conditions of the Agreement, except as herein amended, shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Town
Attorney Agreement on the date written above, effective June 25, 2000.
TOWN OF LOS GATOS
mm
:•
Steven Blanton, Mayor
Orry P. Korb, Town Attorney
ATTEST:
Marion V. Cosgrove, Town Clerk
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