Subject: SALARY
AND BENEFITS FOR MANAGEMENT EMPLOYEES IN UNITS 4, 15, 18, 21, 99
AND UNREPRESENTED
EMPLOYEES IN UNITS 16 AND 19
Adoption
of a resolution:
1.
Approving general salary increases for non-Senior Staff employees in Executive Management
(Unit 99), and
the
Association of Engineers
and Architects (Units 4 and 15), and for unclassified
unrepresented employees (Units 16 and 19), in the amounts of 6% effective July 9 (or June 24, 2001, 5% effective June 23, 2002, and 5%
effective June 22, 2003.
5% effective June 23,
2002, and 5% effective June 242, 2003.
2.
Authorizing the City Manager to enter into
agreements with the
Association of Maintenance Supervisory Personnel (Unit 18) and the City
Association of Management Personnel (Unit 21) to include general salary increases of 6% effective
June 24, 2001, 5% effective June 23, 2002, and 5% effective June 24, 2003, subject
to ratification by the respective units’ membership.
3.
Authorizing the City Manager to expend for performance-based salary increases
for Senior
Staff employees in the Senior Executive Performance Program (SEPP):
6% effective June 24, 2001, 5% effective June 23, 2002, and 5% effective June 242, 2003, and
to adjust relevant salary ranges to reflect these changes.
4.
Authorization Authorizing for the
City Manager to expend an additional 1.0% in the years beginning
June 23, 2002, and June 242, 2003each
of the second and third years of the above term for benefits enhancements or
additional salary adjustments for employees in Units 4, 15, 16, 18, 19, 21 and 99.
5. Authorizing the City
Manager to include
performance-based pay increases for the non-Senior Staff management employees in Units 4, 15, 18, 21, and 99, within a total budget amount of
1% of these
units’ combined payroll.
1..Adoption
of an amendmentAmending to the Senior
Executive Performance Program (SEPP) to provide for general increases for
employees covered by the SEPP.
Management groups not organized as bargaining units are:
Unit 99 Executive Management
Unit 4 Registered Engineers and Architects (AEA)
Unit 15 Unregistered Engineers and Architects (AEA)
Unclassified non-management employees are:
Unit 16 Unclassified part-time unbenefited
Unit 19 Unclassified benefited
Employees in the Units 16 and 19above
groups are unrepresented and therefore
do not meet and confer on salary, benefits or other terms and conditions of
employment. Generally, unrepresented
management and unclassified employees have received general salary
and benefit increases comparable
tocomparable to those received by employees
represented by the Municipal Employees Federation (MEF).
Management groups organized as bargaining units
are:
Unit 18 Association
of Maintenance Supervisory Personnel (AMSP)
Unit 21 City
Association of Management Personnel (CAMP)
The City has
discussed the recommendedations with general
salary increases with AMSP
and CAMP and has reached a tentative n aagreement with each,
subject to ratification of their memberships.
Salary and Benefits for
Management Employees in Units 4, 15, 99 and Unrepresented Employees in Units 16
and 19
June 19, 2001
Page 2
Salary and Benefits for Units 99, 4, 15, 16, and 19.
The City has recently completed a Memorandum of
Agreement with International Association of Operating Engineers (OE#3) for a three- year term, and
is completing currently negotiating discussions
with MEF, both for three year
terms. .
The recommended compensation package for the unrepresented unrepresented
management and unclassified employees is based uponon
the economic package
approved for recently
negotiated agreements with the City’s non-sworn bargaining units. The OE3: a
recommended
general increases are of 6% effective in 2001-2002, 5%
in 2002-2003 and 5% in 2003-2004. In the negotiated package, It is also recommended
that the City Manager be authorized to expend an additional 1% for benefits
enhancements or other adjustments for each of these groups in the second and
third years of the three-year terms. an additional
1% has been allocated to benefits
enhancements or special adjustments in each of the second and third years. Therefore, it is also recommended that the
City Manager be authorized to expend an additional 1% for benefits enhancements
or other adjustments for each of these
unrepresented
groups in the second and third years of
the three-year terms. Please note that benefit
changes would not apply to employees in Unit 16, since they are in an
unbenefited unit comprised primarily of temporary employees. In addition, the general increases will not
apply to temporary employees in Unit 19.
A summary of the recommended salary and benefit increases for the above groups is as follows:
q 6% general increase effective June 24, 2001
q 5% general increase effective June 23, 2002, plus up to 1% for benefits or other adjustments
q 5% general increase effective June 22, 2003, plus up to 1% for benefits or other adjustments
Agreement with CAMP and AMSP
The City has reached a tentative agreement with
CAMP and AMSP for a three-year contract from July 1, 2001, through June 30, 2004. The general salary increases will be 6% in the first year, 5% in the second year,
and 5% in the third year. The first year increase will be
effective at
the beginning of the pay period
following ratification byof the respective units’ membership. As for the unrepresented management groups, an additional 1%
for benefits enhancements or other adjustments is recommended for each of these groups in the second and third
years of the three-year terms.
Senior Staff Performance-BasedExecutive
Performance Program (SEPP). Increases.
Unit 99 is currently
composed of currently includes 34 employees designated as Senior Staff,
including Deputy City Managers, Assistants to the City Manager, the
Secretary to the City Manager, Department Directors, and Office Heads. Salary increases for Senior Staff employees are
fully performance-based and so general increases are not applicable to
Senior Staff
positions. Authorization for expenditures comparable to those for the other management groups – 6– 6% for 2001, 5% for 2002, and
5% for 2003 –
will be allow these amounts to
be used for Senior Staff increases based on individual
performance reviews.
Under the existing Senior Staff performance pay program, authority exists to
provide an individual with a maximum increase of up to 10% for exceptional performance. Also, Council
authorization
remains for
the City Manager to make salary adjustments to base salaries as appropriate, for factors such as changing market trends, salary
compaction, internal pay relationships and
other such factors.
approximately 90
executive-level and City Manager Department employees who are covered in
performance appraisal and compensation by the Senior Executive Performance
Program (SEPP). The remainder of the
employees in Unit 99 (approximately 250) are covered by a different performance
appraisal and compensation program, the Management Performance Program (MPP).
One
difference in these programs is that SEPP employees are not eligible for general salary
increases, whereas the employees
covered by the MPP are. Therefore,
the recommended general
salary increase does not apply to the SEPP employees. Instead, it is recommended that the City Manager be
authorized to spend the same amounts
over the three-year term on performance-based pay increases linked to individual job performance.
One difference in these programs is that while MPP
employees have received general increases in recognition of changes in labor market pay and the need to
maintain sound internal salary relationships, SEPP employees have not. This practice of implementing general
increases to all employees in the organization except the senior and executive
group, has led to a
number of inequities and salary compression problems. Therefore, it is recommended that SEPP employees receive the same
salary and benefits increases as received by other employees in Unit 99.
Other features of the SEPP, and the MPP, need to be
revised in order for the City to attain an effective management compensation
system. We will be recommending to
Council broader changes to these programs in August.
Management employees who are not Senior Staff members are also for eligible for performance-based pay. In recent years, the performance pay has been provided in the form of lump sum bonuses. Council authority also exists to use an alternative method of providing merit pay increases that are part of an employee’s base pay. Under the base pay method, merit increases of up to 5% may be awarded and are in effect for a period of one year, after which time they may be re-earned or expire. Merit increases are only available to those employees who have reached the top step of their salary range. The merit increase method will be used this year.
This recommendation authorizes that a maximum amount of 1%
of the combined management payroll will be used for performance-based pay for
non-Senior Staff management employees.
PUBLIC OUTREACH
None appropriate.
Salary and Benefits for Management Employees in
Units 4, 15, 99 and Unrepresented Employees in Units 16 and 19
June 19, 2001
Page 2
COORDINATION
This
resolution was coordinated with the City Manager’s Office, the Budget Office,
Human Resources, the City Attorney, City Auditor, Redevelopment Manager,
and Independent Police Auditor.
COST IMPLICATIONS
The ongoing
increased annual direct cost of this action is approximately $5.9____________ 3.7 million in the first
year, $__________ $3.96.2 million in the
second year, and $6.6______________ 4.2 million in
the third year.
Del D. Borgsdorf
City Manager