AgdaPkt 2012-02-27 - Laserfiche WebLink

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6.3.C. - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager February 27, 2012 SUBJECT Resolution amending the salary ranges for positions in Executive Management RECOMMENDATION Approve by resolution changes to the salary range for classifications in the Executive Management Group. BACKGROUND In April 2000, the Council's Personnel Sub - Committee approved a new compensation program for Department Heads in the Executive Management Group. The new compensation program requires that the salary range for each Department Head classification is established by using the lowest and highest salary for each position within the City's group of comparable cities. Additionally, on December 14, 2004, the Council Personnel Sub - Committee decided to establish one salary setting policy for all members of the Executive Management Group. This policy set the salary range for Division Heads based on the same criteria as the Department Heads. The last adjustment to the Executive Management Group salary ranges was approved by Council in October, 2008. Employees agreed to a salary freeze in 2009 and 2010 due to the declining economic conditions and resulting impact on the City's budget. In June 2011, Council approved an amendment to the Executive Management summary of benefits to include employee cost - sharing for medical benefits and employer retirement contributions, mitigating the impact of rising employee benefit costs. Similar concessions were made by all employee and labor groups, and included agreements ratified and approved by Council in June 2011. All labor groups were asked to reduce either salary or benefit cost by $5.6 million over the next three fiscal years. The groups opted for benefit reduction and two - tiered retirement systems. Therefore, salary adjustments will be granted through fiscal year 2013 -2014. This action changes the ranges for Executive Management positions. Human Resources staff conducted a market survey for 2011, and recommended adjustments to salary ranges for Executive Management positions. The recommended salary ranges are based on the lowest and highest salary for each position within comparable cities. Adjusting the salary ranges will not result in automatic salary increase. Criteria for setting Executive Management salary increases for Department Heads and Division Managers are ultimately determined by the City Manager on an annual basis and based on performance. Salary adjustments were programmed in the FY 11 -12 budget as were the benefit concessions that went into effect this fiscal year. ALTERNATIVE