05 Desk Item - Amending Fiscal Year 2003-04 Management Compensation~pW N pF
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COUNCIL AGENDA REPORT
DATE: JANUARY 5, 2004
MEETING DATE: 1/5/04
ITEM NO. 5
DESK ITEM
TO: MAYOR AND TOWN COUNCIL
FROM: DEBRA J. FIGONE, TOWN MANAGER
SUBJECT: ADOPT RESOLUTION AMENDING THE FISCAL YEAR 2003-04
MANAGEMENT COMPENSATION PLAN TO AMEND HEALTH
INSURANCE CASH ALLOCATION, AMEND THE ADMINISTRATIVE
LEAVE PROVISION, AND TO ADJUST COMPENSATION FOR POLICE
SERGEANTS
This item has been pulled from the agenda. It will be rescheduled for a future Council meeting.
PREPARED BY: DEBRA J. FIGONE
Town Manager
N:\MGR\AdminWorkFiles\cnclrpts\1-5deskitem.#5.wpd
Reviewed by: ~ Assistant Town Manager Town Attorney Clerk Finance
Community Development Revised: 1/5/04 4:57 pm
Reformatted: 5/30/02
MEETING DATE: 1/05/04
towN OF ITEM NO.
COUNCIL AGENDA REPORT
DATE: December 30, 2003
TO: MAYOR AND TOWN COUNCIL
FROM: TOWN MANAGER
SUBJECT: ADOPT RESOLUTION 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
RECOMMENDATION:
Adopt resolution 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.
DISCUSSION:
The Management Compensation Plan applies to Department Heads (Management Group I), Middle
Managers (Management Group II), and Police Sergeants (Management Group III). A number of
midyear changes are presented below.
Cash Allocation
Management employees are provided a cash allocation to be used to purchase benefits, including
medical, dental, and vision insurance. Increases to the management cash allocation have been at
least equal to the increases provided to the Town's represented employees. Effective January 1,
2004, medical and dental insurance premiums will increase and the represented employees cash
allocation will increase by 17.8%. A similar increase on January 1, 2004 is recommended for the
management staff as follows:
2003 2004
Group I Monthly Cash Allocation: $913 $1,076
Group II, III Monthly Cash Allocation: $856 $1,008
PREPARED BY: Gary Rogers, Human Resources Director
N:\MGR\GROGERS\CNF\COUNCIL\Management\2003\council report comp plan amendments
dec 2003. d
Reviewed by: Asst. Town Manager 4y;--Attorney finance Town Clerk
Revised: 12/30/03 11:25 am
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AMENDING THE FISCAL YEAR 2002-2003
MANAGEMENT COMPENSATION PLAN TO ADJUST THE HEALTH
INSURANCE CASH ALLOCATION, AMEND THE ADMINISTRATIVE LEAVE
PROVISION, AND ADJUST COMPENSATION FOR POLICE SERGEANTS
December 30, 2003
In lieu of spending the entire cash allocation on benefits, employees may choose to receive cash-
back. As approved in the June 2003 plan update, managers hired as new Town employees after June
30, 2003 are not eligible for any cash-back. It is proposed that the January 2004 cash-back be frozen
at the 2003 levels. In an effort to contain costs, cash-back is a benefit that will be reviewed for
change, with the ultimate goal of elimination. An approach under consideration is a phase-out of
this benefit. Some employees view the cash-back as part of their compensation, so any reduction
will pursued in as fair a manner as practical. The next revision will be included in the FY 2004-05
Management Compensation Plan scheduled for consideration in June 2004. Once again, in an effort
to contain costs, management is taking the lead in making significant change to a long-standing
component of the Town's compensation system.
Administrative Leave
Currently, upon approval of a Department Head or the Town Manager in the case of Department
Heads, Group I and II management employees are eligible for up to 40 hours of administrative leave
with pay per calender year. Based upon increasing fiscal challenges and related workload, and the
increasing amount of extraordinary work hours performed by management staff, it is proposed that
the Town Manager be granted the authority to provide up to an additional 40 hours of administrative
leave with pay per calendar year (for a total not to exceed 80 hours per year).
Police Sergeant Compensation
Historically, changes in compensation for the Police Sergeants occur at the same time as changes
in the Police Officer's compensation. Pursuant to the terms and conditions of the Town - Police
Officers Association contract, the salary schedule for the Police Officers will be adjusted by 6%
effective January 4, 2004. It is recommended that the Police Sergeant salary schedule also be
adjusted by 6% effective January 4, 2004. This adjustment will ensure continued competitiveness
in the local labor market.
ENVIRONMENTAL ASSESSMENTS:
This item is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
Funds to implement the Management Compensation Plan as amended are included in the Adopted
2003-2004 Operating Budget.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AMENDING THE FISCAL YEAR 2002-2003
MANAGEMENT COMPENSATION PLAN TO ADJUST THE HEALTH
INSURANCE CASH ALLOCATION, AMEND THE ADMINISTRATIVE LEAVE
PROVISION, AND ADJUST COMPENSATION FOR POLICE SERGEANTS
December 30, 2003
Attachments:
Resolution amending the Fiscal Year 2003-2004 Management Compensation Plan to adjust the
health insurance cash allocation and amend the administrative leave provision to adjust
compensation for Police Sergeants.
EXHIBIT A: The Fiscal Year 2003-2004 Management Compensation Plan