HomeMy WebLinkAbout55A - RESO - AMEND EMT COMP PLAN6 W
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CITY COUNCIL MEETING DATE:
JANUARY 20, 2015
TITLE:
AMENDMENT TO EXECUTIVE MANAGEMENT
CLASSIFICATION AND COMPENSATION PLAN TO
RESCIND /ADD LANGUAGE AND ADJUST SALARY FOR
ONE JOB TITLE (STRATEGIC PLAN NO. 7)
CITY MANAGERO
# 1
s•0:• . 1k.
0 As Recommended
E As Amended
Q Ordinance on tee Reading
0 Ordinance on 2 "a Reading
Cl Implementing Resolution
Cl Set Public Hearing For
CONTINUED TO
tz.
Adopt a resolution that reestablishes the Basic Classification and Compensation Plan for
classifications of employment designated as unrepresented Executive Management and rescinds
provisions of Resolution 91 -066.
DISCUSSION
In 1991, the City Council adopted Resolution 91 -066, which replaced Resolution 89 -087. These
resolutions established the job classification, compensation and benefit plan for unrepresented
Executive Management and Middle Management personnel
Resolution 91 -066 has been amended numerous times by the City Council over the years and
while these amendments legally revised specific provisions of the Resolution, provisions of the
Resolution include original language which no longer applies. For example, Resolution 91 -066
establishes the compensation and benefit plant for the City's Middle Managers; however, these
employees formed the Santa Ana Management Association (SAMA) bargaining unit in
September of 2002 and since that time have negotiated numerous Memoranda of Understanding
with the City that provide the compensation and benefit levels relevant to that group.
The proposed resolution pertains exclusively to Executive Management. It eliminates
inapplicable language and clarifies existing benefits for Executive Managers, including a
reconfiguration of the Retirement Health Savings Plan to convert the 1.75% City Medical
Retirement Subsidy Plan contribution into a 1.25% base pay increase, which will then be
deposited into individual employee RHS accounts. This proposed resolution also makes a 401 (a)
deferred compensation plan available to executive managers, as permitted by law, should City
Council adopt such a plan in the future. Under this plan, an Executive Management employee, at
his or her sole discretion, may deposit into the City's 401(x) plan a portion of his or her
55A -1
Amendment to Executive Management Compensation Plan
January 20, 2015
Page 2
compensation up to the maximum amount permitted by law. There will be no City contribution
into this plan. The proposed resolution also allows Executive Managers to receive the same
stipend for use of a personal phone or tablet in lieu of City - issued equipment at the same level
afforded to other management employees.
Finally, the proposed resolution adjusts the salary for the Executive Director of Planning &
Building job classification by 17.5 %. Two recent recruitments to fill this position have resulted in
a lack of applicants who are currently in this position in cities of similar size and complexity as
Santa Ana. A salary survey revealed that Santa Ana's position is significantly undercompensated
compared to these comparable cities. As this position is instrumental to one of the key
operations of the City, a competitive salary is necessary to attract and retain the best qualified
candidate. Therefore, an equity adjustment is recommended to compensate the position properly
when compared to positions in other cities with equivalent scope and level of responsibility.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #6, Provide a
positive workplace environment that supports the health of its employees and celebrates its
success and goals.
FISCAL IMPACT
The total cost for -the proposed increase to the Executive Director of Planning & Building job
classification is $16,152 for the remainder of the fiscal year. Funds are available in the affected
departmental salary account (no. 01116500- 61000). There is no fiscal impact associated with
the other items.
..�
WI
Edward S. Raya Francisco Gutierrez
Executive Director Executive Director
Personnel Services Agency Finance & Management Services Agency
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA MODIFYING, REESTABLISHING AND
DELINEATING THE BASIC COMPENSATION AND BENEFIT
PLAN FOR CLASSES OF EMPLOYMENT DESIGNATED AS
UNREPRESENTED EXECUTIVE MANAGEMENT (EM) AND
RESCINDING RESOLUTION NO. 91 -066.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA
ANA AS FOLLOWS:
Section 1: The City Council hereby finds, determines and declares as follows:
A. Section 1004, Article X of the City Charter of the City of Santa Ana
requires the City Manager to prepare, install and maintain a position
classification and pay plan subject to civil service rules and regulations
and the approval of the City Council.
B. On July 1, 1991, the City Council passed and adopted Resolution
No. 91 -066, re- establishing the Basic Classification and Compensation
Plan for classifications of employment designated as unrepresented
Executive Management (EM) and Middle Management (MM).
C. The City Council has amended Resolution No. 91 -066 on numerous
occasions since its adoption.
D. Pursuant to Resolution No. 81 -075, the Employee Relations Resolution of
the City of Santa Ana, and applicable State law, the City of Santa Ana
certified the Santa Ana Management Association (SAMA) on September
25, 2002, as the majority representative of the Middle Management and
Administrative Management Representation Unit. Hence, the City has
recognized SAMA as the certified majority representative of the full time
employees in said Unit.
E. In an effort to clarify the compensation of unrepresentative Executive
Management (EM) employees, and delete obsolete language related to
unrepresented Middle Management (MM) employees, the City Attorney
recommends reestablishing and delineating the Basic Classification and
Compensation Plan for classifications of employment designated as
unrepresented Executive Management (EM) through this resolution, by
separate resolution reestablishing and delineating the Basic Classification
and Compensation Plan for all represented full -time employees in the City,
including represented Middle Management (MM) employees, and all
represented and non - represented part -time employees, and rescinding
Resolution No. 91 -066.
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F. The City Manager recommends an increase to the Tuition Reimbursement
Program to provide the highest amount that is available to other
represented employees.
G. The City Manager recommends establishing and delineating a Retirement
Health Savings Account for unrepresented Executive Management (EM)
employees and contributing to said account the highest amount that is
available to other represented management employees.
H. The City Manager recommends establishing and delineating a 401(a)
Retirement Savings Account for unrepresented Executive Management
(EM) employees to participate in, at his or her sole discretion.
It is now desired to rescind Council Resolution No. 91 -066 and reestablish
and affect the aforementioned changes.
Benefit Plan. The City Council hereby reestablishes the unrepresented Executive
Management (EM) Basic Compensation and Benefit Plan effective January 1, 2015, to
read as follows:
Unrepresented Executive Management (EM) Basic Compensation and Benefit Plan
Effective January 1, 2015.
Section 1. Executive Management (EM) Classifications and Compensation Plan.
A. Unrepresented Executive Management �(FM) Employee Classifications
Assistant City Manager (EM)
Deputy City Manager (EM)
Police Chief (EM)
Executive Director of Community Development (EM)
Executive Director of Finance and Management Services (EM)
Executive Director of Parks, Recreation and Community Services (EM)
Executive Director of Personnel Services (EM)
Executive Director of Planning and Building Safety (EM)
Executive Director of Public Works (EM)
Special Assistant to the City Manager (EM)
B. Schedule of Salaries. A schedule of salaries showing salary rate ranges for
classifications of employment designated as unrepresented Executive Management
(EM), is attached hereto and made a part hereof as though set forth in full herein. The
schedule for unrepresented Executive Management (EM) classifications and effective
dates is listed as follows:
Salary
Schedule
Assistant City Manager (EM) EM -39 01/01/2015
Deputy City Manager (EM) EM-41 01/01/2015
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REVISED
Police Chief (EM)
EM -47
01/01/2015
Executive Director of Community Development (EM)
EM -3433
01101/2015
Executive Director of Finance and Management
Services (EM)
EM -3237
01/01/2015
Executive Director of Parks, Recreation and
Community Services (EM)
EM -3437
01/01/2015
Executive Director of Personnel Services (EM)
EM -3833
01101/2015
Executive Director of Planning and Building Safety (EM)
EM -42
01101/2015
Executive Director of Public Works (EM)
EM -3538
01/01/2015
Special Assistant to the City Manager (EM)
EM -37
01/0112015
The unrepresented Executive Management (EM) salary schedule contains numerous
salary rate ranges, each range comprised of fifteen (15) separate rates of pay shown in
monthly amounts. The rate ranges are identified by a two -digit number preceded by the
capital letters "EM" for Executive Management. The separate rates of pay or steps
within each salary rate range are identified by the numbers 1" through "15" inclusive,
with Step 1" being the lowest or minimum rate of the range, Step "8" the middle or
midpoint rate of the range, and Step "15" being the highest or maximum rate.
Terminal Classifications. The capitalized letter "T" shown within parenthesis [i.e., (T)]
next to a classification title signifies a position classification that has been designated as
"terminal" by formal City Council action and, as such, will be deleted from this
classification and compensation plan for unrepresented Executive Management (EM)
classifications of employment when vacated by its last remaining incumbent. No new
appointment may be made to a classification that has been designated as terminal.
Section 2. Special Pay Additives and Additional Compensation Provisions.
Bilingual Skill Pay. Qualified employees who are assigned to positions involving the
regular and frequent use of bilingual skill in both English and either Spanish,
Vietnamese or any other language designated by the City Manager will be paid in the
highest amount as available to represented management employees. Incumbents of
positions where bilingual proficiency is essential to the performance of duties and
responsibilities of a critical and /or emergency nature, or of positions where bilingual
public contact is a major, essential or integral element of the work being performed, will
be paid in the highest amount as available to represented management employees.
Section 3. Administration and Applicability of the Compensation Plan
A. Unless specified otherwise herein, unrepresented Executive Management (EM)
employees will be subject to the same changes in compensation plan provisions,
including but not limited to, sick leave maximum accrual; bereavement leave; holidays;
longevity vacation cash out; health and dental insurance; access to participation in the
City's Vision Plan; retirement; Retirement Health Savings Plan; and work week
schedule, as provided in the highest amount as available to represented management
employees on or after January 1, 2015.
B. Compensation Plan Implementation. Upon implementation of the basic salary
schedule set forth in Sub - section 1.B. of this Resolution, a current incumbent of an
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Executive Management (EM) classification listed herein above will be placed at the
monthly rate in the assigned salary rate range which matches the incumbent's
assigned base monthly salary rate on the day preceding the effective date of this
Resolution.
C. Hiring Pay Policy. A newly hired Executive Management (EM) employee will be
compensated at a monthly rate within the lower third of the salary range (Steps 1
through 5) for his /her job classification as authorized by the appointing authority. When
economic conditions, unusual employment conditions, or exceptional qualifications of a
candidate for employment indicates a higher rate would be in the City's best interest,
the City Manager may authorize compensating the new employee within the middle
third of the salary range (Steps 6 through 10) but the higher starting salary will generally
not be above Step 8.
D. Rates of Pay. for Temporary and Part -Time Work. When an employee is hired in
an Executive Management (EM) classification on a temporary basis, which is defined as
employment with an anticipated duration of less than six (6) months, or an employee is
hired in an Executive Management (EM) classification on a part -time basis, which is
defined as employment of forty (40) hours or less per semi - monthly pay period, the
employee will be paid at a rate per hour for actual time spent in the duties of his or her
employment. Rate per hour will be computed to the nearest whole cent by dividing the
classification's standard monthly rate of compensation by 173.33. A computation
resulting in exactly one -half (1/2) cent will fix the rate at the next higher whole cent.
E. Service. The word "service" as used in this Resolution will be deemed to mean
continuous, full -time service in the classification in which the employee is being
considered for salary advancement, service in the higher classification or service in a
classification allocated to the same salary rate range and having generally similar
duties and requirements. Employees hired after the first (1St) working day of the month
will not be credited with "time in service" for that month when determining the length of
service required for salary step advancement A lapse of service by an Executive
Management (EM) employee for a period of time longer than ten (10) calendar days by
reason of resignation, quit, or discharge, will serve to eliminate the accumulated length
of service time of such employee for the purpose of this Resolution.
F. Appointment or Promotion of Current Employee, An employee who is appointed
or promoted to an Executive Management (EM) classification from a represented
management or non - management classification of the City service will be placed at a
salary rate in the Executive Management (EM) salary rate range which provides a
minimum of a five percent (5 %) pay increase.
G. Reduction in Pay. An Executive Management (EM) employee may receive a
reduction in salary on the basis of unsatisfactory work performance, conduct or other
reasons at the discretion of the City Manager.
H. Temporary Upgrade to an Executive Management (EM) Classification. Regular
employees of the City who are incumbents of classes of employment not included in this
Resolution and who are temporarily upgraded to an Executive Management (EM)
classification will receive a five percent (5 %) increase or the minimum rate of the
'P�PM
Executive Management (EM) salary range, whichever is higher, in accordance with
current upgrade provisions.
I. Reallocation of Salary Rate Ranges. When an employee is in an Executive
Management (EM) classification which is reallocated from the current salary rate range
to a different salary rate range, the employee will retain the same salary step he or she
held prior to the reallocation. The employee will retain credit for length of service in
such salary step towards advancement to the next higher salary step.
J. Y-Rating. In special circumstances the City Manager may approve
compensating an employee in excess of the salary range of the classification to which
he or she is assigned by "freezing" the employee's salary at the current rate. In such
cases, incumbents will not receive step increases or current and future general "across -
the- board" salary adjustments scheduled for other classes until the salary level is equal
to or greater than the "frozen" salary for the assigned classification.
K, Z- Rating. A Z -Rate is a special salary rate established by the City Manager
which allows an employee who has been reclassified to a classification at a lower salary
rate range to be paid at a rate of pay higher than that assigned to his or her reclassified
position title for a specified transition time period.
Section 4. Health and Welfare Benefits.
The following optional insurance benefits available to Executive Management (EM)
employees are provided through a cafeteria plan adopted in accordance with the
provisions of Internal Revenue Code § 125.
The City will contribute to the cafeteria plan in the highest amount as available to
represented management employees. Since the City contracts with CaIPERS for
medical insurance, the amount described above will include the CaIPERS statutory
minimum paid by the City.
X Medical insurance. Eligible Executive Management (EM) employees may select
any of the medical insurance plan options offered by CalPERS.
B. Dental insurance. Eligible Executive Management (EM) employees will have the
ability to select either an HMO or PPO dental insurance plan.
C. Vision insurance. Eligible Executive Management (EM) employees will have the
ability to select vision insurance coverage through the City's insurance provider.
D. Cash -in -Lieu of Benefits. Executive Management (EM) employees will be eligible
to receive cash (subject to taxation as wages) through the cafeteria plan if they either
opt -out of receiving one of the optional benefits provided through the plan or if they
choose optional benefits that do not cost as much as the maximum dollar amount they
receive through the plan.
E. Employee Contributions for Benefits. If an Executive Management (EM)
employee chooses optional benefits whose aggregate premium cost exceeds the
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maximum City Contributions to the Cafeteria Plan, the City will automatically deduct the
excess premium amount on a pre -tax basis from the employee's regular paycheck.
F. Disability Insurance. The City will pay one hundred percent (100 %) of the
premium cost for a long -term disability insurance plan under the policy it maintains on
behalf of its employees in order to provide Executive Management (EM) employees a
monthly benefit of sixty -six and two- thirds percent (fah 213) of base monthly salary
(insured payroll), less offsets contained in the existing plan, to a maximum monthly
benefit of $5,000.
G. Life Insurance and Accidental Death & Personal Loss (AD &PL). The City will pay
one hundred percent (100 %) of the premium cost for term life and AD &PL insurance
coverage under the policy it maintains on behalf of its employees in order to provide
Executive Management (EM) employees with life and AD &PL insurance coverage in an
amount equal to three times the employee's annual rate of salary to a maximum of
$300,000 provided Executive Management (EM) employees can provide evidence of
insurability for coverage above $150,000 if so required by the terms and conditions of
said term life and AD &PL insurance policy.
In the event an Executive Management (EM) employee is determined to be ineligible for
said insurance coverage, the City will attempt to provide as much coverage as may be
obtained at a reasonable cost without having to provide evidence of insurability
Section 5. Leave Accruals and Cash -Out Provisions.
A, Paid Holiday Time Off. Executive Management (EM) employees are not required
to appear for work, except in emergencies, and will receive payment at his or her
current base salary rate for the following twelve (12) holidays during each year:
Janua,�. 19t; third Monday in January; third Monday in February; last Monday in May;
July 4t ; first Monday in September; November 11th; Thanksgiving Day and the day
immediately following (Friday); Christmas Day; the last working day before Christmas
Day (unless Christmas Day falls on Thursday, in which instance the day following
Christmas Day will be observed) and one (1) floating holiday. Any holiday which falls on
Sunday will be observed on the following Monday and any holiday which falls on a
Saturday will be observed on the Friday preceding the holiday.
B. Vacation Time Off. Executive Management (EM) employees will be granted
regular and longevity paid vacation leave on the same basis as provided to represented
employees of the City, with the exception that such affected employees will be granted:
1. Regular vacation with pay at the annual rate of fifteen (15) working days
for each of his or her first and second completed year of service.
2. An additional five (5) working days per year over the regular and longevity
vacation accruals applicable to represented employees of the City. Affected Executive
Management (EM) employees must take at least five (5) consecutive days of vacation
leave each year.
y •
C. Longevity Vacation Credits for Newly -Hired Executive Management (EM)
Employees. The City Manager is authorized to grant to a person newly hired by the City
to a position designated as Executive Management (EM), longevity vacation credits in
the form of years of service to the City up to a maximum of 20 years. The credits will be
counted as completed years of service with the City for the purpose of calculating
longevity vacation accrual only. The longevity vacation credits will be added to the
years of service actually completed with the City of Santa Ana by the employee to
establish total years of service for the purpose of calculating longevity vacation.
D. Longevity and Vacation, Pay Option; Once per fiscal year, Executive
Management (EM) employees will be given the option to receive cash compensation,
computed on a straight time basis, in lieu of up to five (5) working days of earned,
unused vacation benefits set forth in Section B.
E. Sick Leave Credits for New Hires, The City Manager is authorized to grant a
newly appointed Executive Management (EM) employee sick leave credits up to an
amount equal to any earned but unused sick leave credits available to such appointee
at the time of his or her separation from his or her most recent previous employer.
F. Payment for Unused Sick Leave. Executive Management (EM) employees will
be granted payment for unused sick leave on the same basis as provided to Santa Ana
Management Association (SAMA) represented employees of the City.
G. Paid or unpaid Administrative Leave Policy. The City Manager is authorized to
grant, at his or her discretion, paid or unpaid leave for Executive Management (EM)
employees.
Section 6. Retirement Plan Contributions,
A. The terms of the existing contract between the City and California Public
Employees' Retirement System (CaIPERS) governing the City retirement benefits of
Executive Management (EM) employees covered by this Resolution are incorporated by
reference herein. The City will make contributions to CaIPERS in accordance with its
contract with CaIPERS for employees covered by said contract as amended.
B. 21% at 55 Service Retirement Benefit for Classic Miscellaneous Members The
City agrees to provide Executive Management (EM) employees covered by this
Resolution, and who are defined as Classic Miscellaneous Members under the
California Public Employees' Pension Reform Act (PEPRA) of 2013 (AB340), with the
2.7% at 55 Service Retirement benefit.
C. Payment of 2.7% at 55 Service Retirement Benefit Classic Miscellaneous
Executive Management (EM) employees covered by this Resolution will contribute eight
percent (8 %) of CaIPERS reportable compensation toward the employer cost of the
2.7% at 55 enhanced retirement formula. This payment will be implemented as cost -
sharing pursuant to Government Code Section 20516(f).
Pre - Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service
regulations, this eight percent (8 %) employee contribution will be implemented through
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payroll deductions on a pre -tax basis.
D. 2.0% at 62 Service Retirement Benefit for New Miscellaneous Members, The
City agrees to provide Executive Management (EM) employees covered by this
Resolution who were appointed to their classification on or after January 1, 2013, and
who are defined as new members under the California Public Employees' Pension
Reform Act (PEPRA) of 2013 (AB340), with the 2.0% at 62 Service Retirement benefit.
E. _Payment of 2.0% at 62 Service Retirement Benefit. Executive Management
(EM) employees defined in 6.D. (above) will contribute at least 50% of normal cost of
the 2.0% at 62 retirement benefit.
Pre- Taxable Benefit. To the extent permitted by CaIPERS and Internal Revenue Service
regulations, the City will make the above employee deductions pre -tax contributions.
F. 3% at 50 Service Retirement Benefit for Classic Safe Members. The City
agrees to provide Executive Management (EM) employees covered by this Resolution,
and who are defined as Classic Safety Members under the California Public Employees'
Pension Reform Act (PEPRA) of 2013 (AB340), with the 3% at 50 Service Retirement
benefit.
G. moment of 3.0% at 50 Service Retirement Benefit. Classic Safety Executive
Management (EM) employees covered by this Resolution will contribute nine percent
(9 %) of CalPERS reportable compensation toward the employer cost of the 3.0% at 50
enhanced retirement formula. This payment will be implemented as cost - sharing
pursuant to Government Code Section 20516(f).
Pre - Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service
regulations, this nine percent (9 %) employee contribution will be implemented through
payroll deduction on a pre -tax basis.
H. 2.7% (a7 57 Retirement Benefit for New Safety Members, The City agrees to
provide Executive Management (EM) employees covered by this Resolution who were
appointed to their classification on or after January 1, 2013, and who are defined as
new members under the California Public Employees' Pension Reform Act (PEPRA) of
2013 (AB340), with the 2.7% @ 57 Service Retirement benefit.
I. Payment of 2.7% at 57 Service Retirement Benefit. Executive Management
(EM) employees defined in 6.H. (above) will contribute at least 50% of normal cost of
the 2.7% at 57 retirement benefit.
Pre - Taxable Benefit. To the extent permitted by CalPERS and Internal Revenue Service
regulations, the City will make the above employee deductions pre -tax contributions.
J. Final Compensation for Pension Calculation. Final compensation for Classic
Safety and Classic Miscellaneous Members will be based on the highest annual
average compensation earnable during the 12 consecutive months immediately
preceding the effective date of his or her retirement, or some other 12 consecutive
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month period designated by the member.
Final compensation for Safety and Miscellaneous Members who are defined as New
Members under PEPRA will be based on the highest annual average compensation
earnable during the 36 consecutive months immediately preceding the effective date of
his or her retirement, or some other 36 consecutive month period designated by the
member.
K. Military Service Credit as Public Service, An Executive Management (EM)
employee covered by this Resolution will be permitted to purchase up to four (4) years of
service credit for any continuous active military or merchant marine service prior to
employment, The cost to purchase this service credit is subject to CalPERS Regulations
and calculated using a present value method.
L. Deferred Retirement for Classic Safes and Classic Miscellaneous Members as
defined in Section B and F (above). The City will continue to make payments to
CalPERS on behalf of each eligible affected employee in an amount necessary to pay
one hundred percent (100 %) of his or her individual retirement contribution which is
equal to eight percent (8 %) of reportable compensation for Classic Miscellaneous
Members and nine percent (9 %) for Classic Safety Members. Such payments will be
credited to the individual employee's CaIPERS account.
Such payments are not an increase in base salary and no salary rate range applicable
to any of the employees covered by this Resolution will be changed or deemed to have
been changed by reason thereof.. As a result, the City will not treat these payments as
ordinary income and thus will not withhold federal or state income tax from said
payments. The City previously received a ruling from the Internal Revenue Service
confirming that such payments are deferred compensation and not ordinary income. In
the event that the City receives a new ruling from the Internal Revenue Service that
such payments are ordinary income of the employees instead of deferred
compensation, the City's obligation to make such payments will discontinue and in place
thereof the reportable compensation of each Classic Miscellaneous Member eligible for
the 2.7% at 55 Benefits Formula will be increased by eight percent (8 %) and each
Classic Safety Member eligible for the 3% at 50 Benefits Formula will be increased by
nine percent (9 %).
For the purpose of reporting an employee's compensation to CaiPERS, the City will
include these payments as if they were a part of the employee's reportable
compensation.
Section 7. Tuition Reimbursement. Executive Management (EM) employees are
eligible to participate in the Training and Education Assistance Program provided for all
regular, full -time employees of the City. Reimbursement will be based on the cost of
tuition, required enrollment/registration fees, miscellaneous fees (health, parking,
student union fees, etc.) and all required texts, eBooks and related material for each
course. Maximum tuition reimbursement will be paid in the highest amount as available
to other represented employees.
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Section B.Medical_Retirement Subsidy Plan.
A. The City's current annual contribution towards the Medical Retirement Subsidy
Plan for Executive Management (EM) employees covered under this Resolution is
1.75% of the base salary, which is based on the first payroll period in October and
deposited no later than October 31st of each year.
B. The plan will be administered by the City, at no cost to Executive Management
(EM) employees pursuant to the written directives of Executive Management (EM)
employees. The funds contributed by the City will be maintained in such a manner as to
ensure that the funds are invested in a reasonably secure plan that bears a reasonable
rate of interest/growth given current financial markets. For purposes of this Resolution,
investments made pursuant to the then current Statement of Investment Policy for the
City of Santa Ana, will be deemed to meet the requirements of this section. This
program is for medical insurance premium reduction only.
C. Effective November 28, 2011, the City adopted a resolution authorizing
implementation of the "Vantage Care" Retirement Health Savings Plan (RHS), which
designated ICMA -RC as the administrator of the plan.
1. The City agrees to amend the current contract with ICMA -RC to allow
unrepresented Executive Management (EM) employees to participate in the Retiree
Health Savings Plan upon approval of the majority of Executive Management (EM)
employees.
2. Upon establishment of the RHS and adoption of the RHS plan by
Executive Management (EM) employees, and upon instructions from Executive
Management (EM) employees the City's annual contribution of 1.75% deposited in the
Medical Retirement Subsidy Plan will cease. Concurrently with said cessation, the City
will increase the base pay of each Executive Management (EM) employee by 1.25%
with said amount being deposited into employees' individual RHS accounts each pay
period. This 1.25% increase in base is in -lieu of the Annual City Contribution of 1.75%
paid to the Medical Retirement Subsidy fund in October each year.
3. If said RHS Plan is established after the annual payment of 1.75% into the
existing Medical Retirement Subsidy plan has been made, the salary adjustment and
deposit into the RHS of the 1.25% described in paragraph 8,C.2. above will be effective
July 1, 2015.
4. Upon approval to participate in the RHS, Executive Management (EM)
employees will determine how the existing Medical Retirement Subsidy Plan funds will
be distributed among its membership and, if applicable, its retired members. Executive
Management (EM) employees will dissolve the existing Medical Retirement Subsidy
plan by June 30, 2016, unless said deadline has been extended by mutual agreement
of Executive Management (EM) employees and the City.
Section 9. Auto Allowance. With the exception of the Police Chief who receives a City
vehicle, the City will contribute five hundred dollars ($500) per month to each Executive
Management (EM) employee to offset reasonable and necessary expenses for the
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operation, maintenance and insuring of an automobile. In lieu of receiving five hundred
dollars ($500) per month, the employee may request and be provided with an optional
vehicle. This provision is in accordance with and as specified in Section 2 -300, Division
1, Article IV, Santa Ana Municipal Code.
Section 10. Deferred Compensation. City has established and maintains a
deferred compensation plan pursuant to the provisions of Section 457(b) of the Internal
Revenue Code. Executive Management (EM) employees covered under this resolution,
at his or her sole discretion, may defer to have deposited into the City's 457(b) plan a
portion of his or her compensation up to the maximum amount permitted by law.
The City is desirous of establishing a 401(a) deferred compensation plan. As
permissible by law the City will establish a 401(x) deferred compensation plan at a
future date. Executive Management (EM) employees covered under this resolution, at
his or her sole discretion, may defer to have deposited into said 401(a) plan upon its
establishment a portion of his or her compensation up to the maximum amount
permitted by law.
All contributions into the 457(b) and 401(a) plan are voluntary employee contributions
and will meet the requirements of the Internal Revenue Code.
The provision of the unrepresented Executive Management (EM)
evaluation system are as follows:
11.1 Purpose. The basic purpose of the performance -based evaluation system
is to help attract, retain and motivate highly competent Executive Managers and to
provide them with a strong incentive to excel.
11.2 Specific Compensation Determination.
A. The City Manager is hereby given the authority to set the individual
compensation, to make adjustments thereto and to make appointments at any salary
within the established range for all executive positions except the City Manager, the City
Attorney, and the Clerk of the Council, which will be made by the City Council.
B. The City Manager will establish performance criteria and appraisal
guidelines to be utilized in setting individual compensation for Executive Management
(EM) employees.
C. After the salary of an employee has been first established and fixed under
this plan, salary advancement through the remaining steps of the 15 -step salary rate
range will be based on the results of an annual performance evaluation.
11.3 Evaluation System Components. The evaluation system will be comprised
of the following components:
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A. Annual Obiectives. The system will include a list of outcome- based,
measurable objectives to be achieved which have been mutually agreed upon between
the appropriate appointing authority and each individual manager subject to his or her
authority. A relative weight will be assigned to each objective listed with a minimum
weight of 10% and all must total 100 %.
B. Managerial Behaviors. In addition to his or her performance in achieving
agreed upon objectives, each Executive Manager will also be evaluated for his or her
managerial behavior performance, including such behavior as communication (oral or
written), analysis and problem solving, decision - making and judgment, planning and
organization, management control, leadership, interpersonal relations, time -
management, technical knowledge, handling of stress, etc.
11.4 Performance Evaluation Guidelines.
A. The City Manager will annually evaluate the performance of each of his or
her Executive Management (EM) employees annually to determine their individual
eligibility for a performance increase and how much, if any, increase will be given. Such
annual performance evaluation will occur once a year and will cover the twelve month
period preceding that date. Additionally, at least one informal mid -year progress review
will be held between the City Manager and each of his or her Executive Management
(EM) employees.
B. Performance Ratings. Each manager's performance in relation to his or
her agreed upon annual objectives and managerial behaviors will be evaluated
according to the following performance rating scale:
Point Rating Performance Levels
3 Significantly Exceeds Expectations:
Consistently exceeds all objectives requirements and
expectations by a wide margin.
Exceeds Expectations:
Consistently meets all objectives and requirements
and exceeds several.
Meets Expectations:
Meets objectives and requirements.
Below Expectations:
Fails to meet some objectives and requirements.
1 Unacceptable:
Performance is significantly below the minimum
required.
11.5 Performance -Based Salary Adjustments. Each Executive Management
(EM) employee may be eligible to receive an annual performance - based, in -range
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salary increase and /or one -time monetary payment based on a percentage of current
annual rate of base salary, or be subject to a performance -based salary reduction, in
accordance with the following:
A. For overall performance rated as "Significantly Exceeds Expectations,"
either step increases or one -time monetary payment or a combination of step increases
and one -time monetary payment not to exceed seven and one -half percent (7.5 %) in
toto.
B. For overall performance rated as "Exceeds Expectations," either step
increases or one -time monetary payment or a combination of a step increase and one-
time monetary payment not to exceed five percent (5 %) in toto.
C. For overall performance rated as "Meets Expectations," a one -time
monetary payment in an amount up to but not to exceed two and one -half percent
(2.5 %) of current annual rate of base salary or advancement of one step (2.6 %) within
the salary rate range.
D. For overall performance rated as "Below Expectations," no performance
salary increase or monetary incentive payment.
E. For overall performance rated as "Unacceptable," no performance salary
increase or monetary incentive payment. Additionally, any Executive Management
(EM) employee who has received such a rating and who is being paid at a step higher
than the minimum rate of the salary rate range, may be reduced by one or more steps
at the discretion of the City Manager,
F. Application of Guidelines.
1. If an Executive Manager who is recommended for a performance
increase is at the maximum of his or her salary rate range, then the entire performance
increase must be awarded the equivalent amount in a one -time monetary incentive
payment.
2. Any one -time monetary incentive payment granted under this plan
is not an increase in base salary and no salary rate range applicable to any
management employee covered by this Resolution will be changed or deemed to have
been changed by reason of such payment.
3. The City Manager will be responsible for the development and
administration of detailed administrative procedures and guidelines for the consistent
and effective application of the unrepresented Executive Management (EM)
performance -based evaluation system. Such procedures and guidelines will define how
performance objectives, measures and standards are developed; when and how
performance reviews are to be carried out; how performance component ratings and
composite ratings will be scored; and how performance salary increase and monetary
incentive payment options are to be exercised.
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Section 12. Miscellaneous Provisions
A. Catastrophic Leave Donation. Executive Management (EM) employees will be
eligible to donate and receive catastrophic leave donations as provided to all other
represented employees.
C. Electronic Device Stipend. Executive Management (EM) employees who use their
own personal electronic devices for City business in lieu of receiving a City owned
device will be eligible to receive a stipend at a level matching that received by SAMA
employees.
Privileges, Each employee in a classification of employment designated in Sub - section
I.A. of this Resolution as unrepresented Executive Management (EM) will continue to
enjoy the same rights and privileges to which they were entitled under Resolution 91-
066 unless otherwise amended, altered or eliminated herein.
Section 3: That Resolution No. 91 -066, as amended, is hereby rescinded in its entirety.
Section 4: This Resolution is operative from and after January 1, 2015.
Miguel A. Pulido
Mayor
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council,
Resolution No. 2015 - to be the original
City of Santa Ana on January 20, 2015.
,=.'
do hereby attest to and certify the attached
resolution adopted by the City Council of the
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Clerk of the Council
City of Santa Ana
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