1997-044-Approving Management Compensation Plan For Fiscal Year 1997-98RESOLUTION 1997 - 44
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING MANAGEMENT COMPENSATION PLAN
FOR FISCAL YEAR 1997 -98
WHEREAS, amendments to the Management Compensation Plan will prevent salary
compaction between classifications represented by labor organizations and management.
BE IT RESOLVED, by the Town Council of the Town of Los Gatos, that the
Management Compensation Plan for Fiscal Year 1997 -98 (a copy of which is attached hereto) is
hereby approved.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 19th day of May, 1997 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Jan hutchins, Linda Lubeck,
Mayor Joanne Benjamin.
NAYS: None
ABSENT: Steven Blanton
ABSTAIN: None
SIGNED �ryfv� v
MAYOR OF HE T, N OF LOS GATOS
LOS GATOS, CALIF RNIA
ATTEST:
1 C
t
CLERK OF THE TOWN OF LbS GATOS
LOS GATOS. CALIFORNIA
MGR 116 NASHAREviGR05199.9
SUMMARY OF AMENDMENTS TO
MANAGEMENT COMPENSATION PLAN FOR FISCAL YEAR 1997 -98
Maximum sick leave accruals are reduced from 1200 to 1000 hours for Management Group I and II.
Management Group III (Police Sergeants) is tied to the Police Officer's Association at 1180 hours.
2. Education/Tuition Reimbursement and Vision Reimbursement have been eliminated as programs.
Management Group I and II Supplemental Benefits have been increased to offset the elimination
of these programs. Management Group III (Police Sergeants) have had the value of these
programs (and uniform allowance) incorporated into their annual salary. The Flexible Spending
Account - I.R.S. Section 125 program has been eliminated.
3. Futre salary adjustments for Management II and III will continue to be linked to associated Town
bargaining units. Management I (Department Head and Police Captain) employees will have their
ranges adjusted based upon the annual Employee Relations Service survey. Management I
employees do not receive any automatic pay increases. Salaries for Department Heads are set
based upon an annual, individual performance review by the Town Manager each September.
4. Police Captains are included in Management I for salary range calculation and benefit amounts.
5. Addition to the appendices include:
Background information on Management III (Sergeants) - Appendix D.
May 15, 1997 Attachment 1
TOWN OF LOS GATOS
MANAGEMENT COMPENSATION PLAN
1. PURPOSE
To establish a program and guidelines for a management compensation plan pursuant to
the following goals and objectives:
1.1 Establish a system for the payment of management personnel which results in
appropriate salary- contribution relationships and competitive salary rates.
1.2 Recognize the distinct character of management jobs and incumbents as opposed
to grouping them with other employees for salary purposes.
1.3 Diminish the possible influence of negotiated salaries for rank -and file employees
on salaries set for management classifications.
1.4 Promote more commitment by management to goals and objectives of the Town
Council and Town Manager.
1.5 Establish a system where salary serves as an effective device for promoting better
job performance.
1.6 Give recognition to impact of the employee on the job and performance level.
1.7 Promote the further identification of management group and understanding of
associated roles, loyalties, and responsibilities.
1.8 Strengthen the role of the supervisor in the compensation program.
1.9 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 in those cases designated as
Management.
3. POLICY
3.1 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
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personnel. 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.
3.2 A and B Ranges - All management classes shall have two ranges titled "A" and
"B ". After initial establishment, the ranges will be reviewed for possible
adjustments to be effective on July 1 of each year and at such other times as the
Town grants general or cost -of- living adjustments. For Management Group II and
III employees, the general or cost -of- living adjustments shall be the same as those
granted to the primary rank- and -file employee association or union group
associated with the various management positions. (Refer to Appendix C for
listing of management positions and related association.) The purpose of this
relationship is to prevent salary compaction and ensure the objectives of this plan
are maintained. Such adjustment shall be applied to the ranges and employee
salaries in the same manner as is done with rank- and -file employees, provided,
however, that for reasons of unsatisfactory performance, an employee may be
denied the adjustment. Salary ranges for Management Group I (Department Heads
and Police Captains) shall be reviewed annually based upon compensation surveys
conducted by the Santa Clara County Employee Relations Service or its successor.
Management Group I employees receive salary increase only based upon merit and
job performance which is reviewed annually in September by the Town Manager.
Range adjustments may also be made in the event of materially changed job
assignments.
3.2.1 A Ranee - 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 utilized 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. 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.
3.2.2 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.
3.3 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. Department Heads will be effective September 15, 1993. The sole
consideration in the granting of within -range salary adjustments shall be performance.
3.3.1 Salary adjustment 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.
3.3.2 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. Normally, within range adjustments
will average an approximate 5 %. Adjustments below and above this amount are
permitted, however, increases above 15% or less than 2 -1/2% are discouraged.
Also, while salary adjustments will 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.
3.3.4 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.
3.4 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 the 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.
3.5 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 exceptional or "one
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shot" significant contribution to the Town which clearly 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:
3.5.1 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:
3.5.1.1 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.
3.5.1.2 Employee initiates a series of innovative approaches to providing
Town services which result in significant cost savings with no
reduction in service level.
3.5.1.3 Employee develops programs or makes suggestions which result in
operational improvements outside his /her normal area of
responsibility.
3.5.1.4 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.
3.5.2 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 $2,000.00 may be granted by the Town Council upon recommendation
of the Town Manager in an amount not to exceed three (3) months' salary of the
affected employee. Payment shall be made in a lump sum.
4. GENERAL ADMINISTRATION AND PLAN REVIEW
The Personnel Officer shall maintain records on salary adjustments, including effective
dates and amounts. This information shall be summarized and distributed to the respective
Department Heads during the preparatory stages of development of the fiscal year budget.
A study committee consisting of the Personnel Officer and a minimum of two Department
Heads and one level two Manager will then be established to evaluate administration of
the Management Productivity- Salary Plan and develop recommended Plan changes if
deemed appropriate.
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5. SUPPLEMENTAL BENEFITS
5.1 Eli ibili - Management employees will be eligible for benefits on the first day of
the month following their hire date.
5.1.1 No unexpended dollar amounts associated with selected benefits maybe disbursed
to a terminating employee.
5.1.2 All benefit selections are subject to State and Federal rules, regulations, and laws
regarding employee benefits and tax status. No guarantee is made regarding the
tax- exempt status of any and all benefits presented or selected except those allowed
by law.
5.1.3 For all current employees, benefit selections must be made prior to the beginning
of each fiscal year. No changes to selected dollar ($) allocations may be made
after that time unless such changes are a result of a qualified event or permitted by
the PERS Medical Health Plan. Dependent status changes may be made during the
fiscal year provided there is a qualifying event.
5.2 Public Employees Reti rement System - The Town shall continue to provide in its
contract with PERS for the 2% at 55 retirement plan. Police Management have a
2% at 50 program.
5.3 Vacation
Management I
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
0 -60 mos.
61 - 120 mos.
121 - 180 mos.
181 mos. & over
Management III
15 days per year (4.62 hrs
20 days per year (6.15 hrs
23 days per year (7.08 hrs
25 days per year (7.70 hrs
per pay period)
per pay period)
per pay period)
per pay period)
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)
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Maximum accrual shall be 400 hours for Management I and Il effective January
1, 1995.
Maximum accrual shall be 344 hours for Management IIl.
Vacation cash -out is permitted twice a year in December and June if the Manager
uses one week of vacation during the prior year. Such monies will be included in
the first payroll check of June and December. Amount to be cashed out is limited
to the amount accrued.
5.4 Personal Leave - Each Management employee will be eligible for a maximum
of 48 hours personal leave each calendar year. Personal leave is to be taken at
employee discretion. Personal leave may not be carried over from year to year,
nor may it be cashed out.
5.5 Sick Leave /Sick Leave Ca h -out - Sick leave accrues at the rate of 8 hours per
month (3.70 hours per pay period) with a 1000 hour accrual limit. Upon
retirement from the Town, accrued sick leave can be applied towards medical
premiums until such time that the Town provides for 100% of retiree benefit
premiums.
Sick leave can be cashed out each December with the following provisions:
a. Have 150 hours in accruals at time of cash -out.
b. The balance can be cashed out as follows:
1 - 59 months of service at 25 %
60 - 119 months of service at 37.5 %
120 or more months of service at 50%
5.6 Administrative Leave - Upon approval of his /her department head (or by the Town
Manager in the case of department heads), 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
work.
5.7 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. The employee will
then be considered for an adjustment, when a complete year of work has elapsed
since their last evaluation. Time absent will be rounded to the closest month.
6
Salary adjustments, if any, will become effective after the employee has completed
a full year since their last evaluation/increase.
Vacation or sick leave may not be used intermittently during an extended leave to
interrupt a determination that an employee is absent for any full calendar month
period. 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 a work - related disability shall not be
subject to the provision above and will be considered for a salary adjustment on
their anniversary date.
5.8 Leave Accruals - Management employees shall not accrue vacation or sick leave
during any period of unauthorized leave, suspension without pay, or leave without
pay.
5.9 Continuation Of Benefits - Management employees shall continue to receive fringe
benefits so long as those employees remain on the Town payroll.
5.10 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 $1,155 /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 $5,000 /mo.
5.11 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 by the employee equal to once or twice the employee's base salary, not
to exceed $200,000.
5.12 Employee Assistance Program - Management employees shall have the employee
assistance program available to them. The premium shall be paid by the Town.
5.13 Cash Allocation Plan - Allocation available to managers are as provided in
Appendix B. Benefits which can be purchased by the cash allocation plan include
medical insurance and dental insurance. These benefits are available on a pre -tax
basis.
Employees may also choose to receive part or all of their cash allocation plan in
cash. Any amount received in tax is taxable. Employees choosing to receive
taxable cash will receive it twice a year.
All benefits selected from the Cash Allocation Plan must be paid for in full from
the maximum benefit provided except when the maximum is insufficient to cover
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all insurance coverage selected. In such case, the premium amount not funded by
the Town - provided benefit shall be paid through an employee deduction applied
against the medical premiums. These premiums are available on a pre -tax basis.
Employees choosing to use cash allocation plan funds for medical insurance must
pay all medical premiums from the allocation prior to receiving a cash allocation.
5.14 Deferred Compensation - The Town will continue to offer a program of deferred
compensation to all managers.
5.14.1 Funding for deferred compensation may only be provided after all other
benefits selected by the employee are paid for in full from the maximum
benefit provided.
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APPENDIX A
MANA EMENT POSITION & SALARY LEVELS*
1997_98
Police Chief
$88,381
Planning Director
$78,389
Assistant Town Manager
$77,053
Police Captain
$76,653
Library Director
$74,874
Director of Building and Engineering
$74,874
Finance Director
$74,874
Community Services Director
$74,874
Senior. Planner
$69,476
Parks /Forestry Superintendent
$69,382
Maintenance Superintendent
$69,382
Police Sergeant
$63,356 (As of 12/28/97)
Records and Communications Manager
$59,526
PM Supervisor
$59,446
PW Supervisor
$59,446
Senior Librarian
$58,834
Personnel Manager
$57,517
*Net of employee paid PERS contributions.
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APPENDIX B
MANAGEMENT SUPPLEMENTAL BENEFITS
Cash Allocation Plan - FY 1997/98
Effective for July, 1997
GROUP I - $8,712
Assistant Town Manager
Planning Director
Police Chief
Library Director
Director of Building
and Engineering Services
Community Services Director
Finance Director
Police Captain
GROUP II - $8,168
Parks /Forestry Supt.
Maintenance Supt.
Parks Maint. Supr.
Public Works Maint. Supr.
Police Records and
Communications Mgr.
Senior Planner
Personnel Manager
Senior Librarian
Group III - $5,712
Police Sergeant
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APPENDIX C
MANAGEMENT POSITIONS
RELATED ASSOCIATION
Assistant Town Manager
T.E.A.
Community Services Director
T.E.A.
Director of Building and Engineering
T.E.A.
Services
Finance Director
T.E.A.
Library Director
T.E.A.
Maintenance Superintendent
A.F.S.C.M.E.
Parks Superintendent
A.F.S.C.M.E.
Parks Supervisor
A.F.S.C.M.E.
Personnel Manager
T.E.A.
Planning Director
T.E.A.
Police Chief
P.O.A.
Police Captain
P.O.A.
PW Maintenance Supervisor
A.F.S.C.M.E.
Records /Communications Manager
T.E.A.
Senior Librarian
T.E.A.
Senior Planner
T.E.A.
Police Sergeant
P.O.A.
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APPENDIX D
TOWN OF LOS GATOS
MEMORANDUM
DATE: February 14, 1990
TO: All Sergeants
FROM: Deborah Acosta, Town Manager
Larry J. Todd, Chief of Police
SUBJECT: Sergeant Management Performance and Compensation Plan
For purposes of definition and future reference, "Economic
Provision" include the following areas as specified in the 1989/90
P.O.A. Memorandum of Understanding:
1. PERS Benefits /Town Contribution
2. Educational Incentive Pay
3. Special Pays
4. Educational Reimbursement
5. Insurance Programs and Rate of
Disability, Vision, Employee
Unemployment)
6. Uniform Allowance
7. Overtime
8. Vacation Schedule
9. Vacation and Overtime Cash -out
10. Holidays and Holiday Pay
11. Sick Leave
12. Personal Leave
13. Annual Sick Leave Cash -out Program
14. Military Leave
15. Bereavement Leave
16. Leave without Pay
17. Maternity Leave
18. Accrual of Benefits
19. Worker's Compensation
20. Jury Duty
DEBORAH ACOSTA
Town Manager
Town Contribution (Life,
Assistance Program, and
/Wzy/j. TODD
Chief of Police
TOWN OF LOS GATOS
SERGEANT MANAGEMENT PERFORMANCE AND COMPENSATION PLAN
Purpose
The Town and Police Department administration recognize that the job requirements for
the position of Sergeant are uniquely different from those of the rank- and -file employees.
The purpose of this plan is to establish a program and guidelines for a Sergeant
Management Performance and Compensation Plan pursuant to the following goals and
objectives:
1. Establish a salary system which recognizes the need to keep pace with the external
market and internal relationship of other employees, and recognizes the distinct
character of management.
2. Promote a system which minimizes conflict for Sergeants between Town goals and
objectives, and loyalty to rank- and -file employees because of meet and confer
obligations.
3. Establish a system which promotes better job performance and provides flexibility
in salary setting based on individual performance.
4. Promote the further identification with the management group and the understanding
of associated roles, loyalties and responsibilities.
5. Provide a system which allows for appropriate award for extra effort which results
in the improvement of Town services.
Policy
All economic provisions of the P.O.A. Memorandum of Understanding remain in effect
except as follows:
1. Salary ranges for Sergeants will be reviewed annually and will be adjusted in
accordance with the Management Compensation Plan as specified under "Salary
Ranges ". The top of the range is considered the control point.
An individual's compensation adjustment will be based on demonstrated performance
as documented under the Police Department's "Employee Evaluation Program ".
Adjustments shall be applied to the range and employee salaries, provided, however,
that for reasons of unsatisfactory performance an employee may be denied the
adjustment.
Sergeant Management Performance and Compensation Plan
2. Salary progression within the range shall be reviewed annually on the date of
promotion to the rank of Sergeant. Upon initial promotion, the employee shall
receive a 5% salary increase above their base officer pay, not including any specialty
pay. Normally, within -range adjustments will be 5 %. Adjustments below and above
this amount are permitted; however, no increase shall exceed 10% and increases less
than 2 -1/2% are discouraged. Also, while salary adjustments will normally involve
increases, reductions may be made in instances of unsatisfactory performance.
(Note: All range adjustments are approximate; i.e., 4.98% or 5.02 %.)
3. After an employee reaches the top of his /her salary range, the level of proficiency
appropriate to that salary rate must be maintained or the employee's salary may drop
below the maximum. This may occur through a direct salary reduction or failure of
the employee to receive additional increases which may be possible due to
adjustments in the range.
4. Exemplary performance awards are designed to recognize individual sustained
superior performance or a significant contribution to the Town service which exceeds
expectations or job requirements. These awards are recommended by the Chief of
Police and are discretionary on the part of the Town Manager. Awards may be
made on either a percentage or flat dollar amount basis each year up to a maximum
of $2,000.00 and shall be considered one -time, non - recurring awards.
Family Medical Insurance Premiums or a Cafeteria Benefit Program shall be
available to each Sergeant as follows:
A. Family Medical Insurance Premiums will provide payment of medical
insurance premiums equal to the "least cost" family medical and dental
insurance programs offered by the Town. The determination as to whether
this benefit is provided must be made on an individual basis between June
1 and June 15 or during Town designated open enrollment periods of each
year thereafter. Employees opting for this medical insurance coverage will
not participate in the Cafeteria Benefit Program.
B. Cafeteria Benefit Program allocations are utilized to "purchase" those items
which best suit the employee's personal needs. Benefits available in the
cafeteria program include medical insurance, additional life insurance, medical
examination, local health club membership, and deferred compensation.
The dollar amount allocated to this program is reviewed annually as part of
the market survey. Refer to Attachment "A" for further information.
PDRRO03 A \PERS &TR \MGMT.SGT