2002-109-Approving The Management Compensation Plan For The Fiscal Year 2002-03RESOLUTION 2002 -109
RESOLUTION OF THE TOWN OF LOS GATOS
APPROVING'THE MANAGEMENT COMPENSATION:PLAN
FOR FISCAL YEAR 2002-.2003
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 2002-2003, a
copy of which is attached .hereto as .EXHIBIT A, is .hereby approved.
:PASSED AND ADOPTED at a regular meeting ofthe Town Council of the Town
of Los Gatos, California, held on the 1'St day of.July, 2002 by the following vote:
COUNCIL MEMBERS:
AYES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski,
.Mayor Randy Attaway.
NAYS: None
ABSENT: None
ABSTAIN:: None
SIGNED: -Q
MAYOR OF E TOWN O LOS GATOS
.LOS GATO , CALIFO A
ATTEST:
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CLERK OF TIE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
SUMMARY OF PROPOSED AMENDMENTS TO
THE MANAGEMENT COMPENSATION
PLAN 2002-2003
COMPENSATION ADJUSTMENT FISCAL YEAR 2002-2003
A salary range adjustment of 5% will be effective June 23,:2002, for Group I & II Managers
(Department Heads and Middle Managers). Actual adjustments will be made in conjunction
with annual employee evaluations. A wage increase of 2.5%will be effective June 23, 2002
for Group III Managers (Police Sergeants). An additional undetermined wage .adjustment
will be effective on December 22, :2002 for the Group. III Managers, and will be presented
to the Town Council under separate cover in November.
2. CASH .ALLOCATION PLAN
Effective January 1, 2003, increase Group I cash allocation from $745.00 per month to $913
per month and Group II cash .allocation from $698.33 per month to $856 per month. This
increase (22..5%) is consistent with medical premium adjustments scheduled in January 2003,
and the adjustments received in the TEA,and AFSCME bargaining units.
Effective .January 1, 2002, increase Group III cash allocation from $590.75 per month to
$611.44 per month (3.5%) and effective January 1, 2003, increase Group III cash allocation
from $611.44 per month to $739 per month (20.85%). These proposed adjustments are equal
to increases provided to the POA.
N:\MGR\GROGERS\CNF\COUNCIL\Management 2002\summaryofamend2002,wpd
ATTACHMENT 1
EXHIBITA
TOWN OF LOS GATOS
MANAGEMENT
COMPENSATION PLAN
Fiscal Year 2002-2.003
EXHIBIT A
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 salary serves as an effective device forpromoting
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 responsibilifiies.
• 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.
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Additionally, there are identifiable differences in work requirements between
.Los Gatos .management and .presumptively comparable positions in other
agencies. These differencesargue 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 oncost-of-living adjustments. For Management Group Ill, the
general orcost-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 I & Il 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.. Thetop 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 thesatisfaction 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
employment, employees shall be reviewed for salary increases at suchtimes
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 1 evaluations
and salary adjustments will be completed in September of each year. The
sole consideration in the granting ofwithin-range salary adjustments shall be
performance.
Salary adjustments for ernployees'belowthe 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 ofpossible 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 compensafiion 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 Pax -The basic salary ranges "A" and "B" .are
designed to ensure that emp oyees '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 imp'lernentations 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 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. GENERAL ADMINISTRATION AND PLAN .REVIEW
The Town Manager shall be responsible for the annual review and proposed
changes to the Management Compensation Plan.
5. 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 bylaw.
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 11 -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)
187 mos. & over 25 days per year (7.70 hrs. per spay period)
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