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<br />08/28/2007 <br /> <br />II. COMPENSATION <br /> <br />MARKET EQUITY and SALARY SETTING <br /> <br />The comparable labor market will include those cities that provide full-service, are in the <br />Bay Area job pool, recognized as excellent organizations, and have comparable service <br />outputs. These cities include Alameda, Berkeley, Hayward, Mt. View, Palo Alto, San <br />Leandro, San Mateo, South San Francisco, and Sunnyvale. The following factors will be <br />included when conducting a market study: 1) base top step salaries and/or control point <br />minus and special performance premiums, and 2) employer paid PERS contributions. <br /> <br />Upon Council direction the City Manager shall request external labor market <br />comparisons for all classifications in the Executive Management Group. Upon review of <br />the labor market comparison and the City's financial condition the City Council may <br />approve implementation of the new salary ranges for the Executive Management Group. <br /> <br />The salary range for each classification in the Executive Management Group is <br />established by using the lowest salaried city and the highest salaried city comparable <br />classification. Individual Executive Management salaries for Department Heads are <br />reviewed by the City Manager on an annual basis and are set anywhere within the <br />established high/low range based on performance. Individual Executive Management <br />salaries for Division Managers are reviewed by the Department Head and recommended <br />to the City Manager on an annual basis and are set anywhere within the established <br />high/low range based on performance <br /> <br />Additionally, ail Executive jvianagement classifications shall maintain a minimum <br />differential of 10% above the top step subordinate classifications. Adjustments in <br />salary ranges to maintain the differential will be effective the same date the subordinate <br />class received the adjustment. Council approval for adjustments to salary ranges due <br />to compaction shall not be required. <br /> <br />EXCEPTIONAL PERFORMANCE BONUS <br /> <br />The City Council shall establish a bonus program for Department Heads in the Executive <br />Management Group that will offer incentives and commensurate rewards for exceptional <br />service or contributions. Any bonus granted under this program is at the discretion of <br />the City Manager and is awarded when previously established stretch goals have been <br />met or when the City Manager deems it appropriate. Department Heads in the <br />Executive Management Group are eligible to receive up to a 5% of their base salary one <br />time each fiscal year. It is not expected that all Department Heads positions will receive <br />bonuses each year since this program is intended to recognize only exceptional <br /> <br />2s of 19 <br /> <br />14801 <br />Muff #905 <br />