HomeMy WebLinkAbout20 - Total Compensation Philosophy DiscussionU
CITY OF
NEWPORT BEACH
City Council Staff Report
TO:
FROM:
PREPARED BY:
APPROVED:
TITLE:
Agenda Item No. 20
May 14, 2013
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Council Member Leslie Daigle
Dave Kiff, City Manager
Resolution 2011 -55: Total Compensation Philosophy
RECOMMENDATION:
Council Member Daigle asked that the Council discuss this item, which was adopted by
the City Council on June 14, 2011.
ENVIRONMENTAL REVIEW:
Not applicable.
PUBLIC NOTICE:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
�ia 0. Y.�
DM Kiff
City Manager
Attachments: Text of Resolution 2011 -55
May 14, 2013
Page 2
RESOLUTION 2011 -55
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
RELATING TO A TOTAL COMPENSATION
PHILOSOPHY
WHEREAS, the City is desirous of attracting, motivating, and retaining a highly
competent, efficient and effective workforce at all levels; and
WHEREAS, the City also seeks to maintain its fiscal condition by appropriately
compensating its employees as well as maintaining strong reserves, infrastructure,
programs and services; and
WHEREAS, the City appreciates the strong partnership it has had with its
employees and employee associations as employees and management have stepped
forward to address rising pension obligations through additional employee contributions
and a "2nd Tier" for new employees; and
WHEREAS, the City believes that its compensation should be measured and
compared in terms of "Total Compensation" (not salary alone) cost to the City, including
salaries, performance -based incentives and other short -term cash compensation,
deferred compensation, special incentive pays, and other benefits including but not
limited to medical, post- retirement medical and pension contributions; and
WHEREAS, the City Council is desirous of adopting and following a Total
Compensation Philosophy and approach that would guide the Council and the City into
the future, an approach that should be regularly reviewed over time to ensure that it
meets the needs of the City, the employees, and residents; now, therefore be it:
RESOLVED by the City Council of the City of Newport Beach that it adopt and
memorialize the following Total Compensation Philosophy:
1. Total Compensation for individual positions will be measured with respect to
market surveys, including both municipal and relevant private sector
comparisons as appropriate.
2. Total Compensation brackets for individual positions will be set with reference to
the median compensation for each position, generally falling within the second
and third quartiles.
May 14, 2013
Page 3
3. The City will seek to establish and maintain compensation practices that are
comparable and consistent across all departments.
4. The City's goal is to limit annual increases in its compensation structure
(including its union contracts) to a maximum of the rate of consumer inflation.
5. The retirement benefits portion of Total Compensation will be structured over
time to achieve a 50/50 cost sharing between the City and the employees,
including the implementation of defined contribution programs in the event such
programs are authorized for the City's use.
6. The City will seek to simplify its job classifications and pay practices over time to
achieve greater flexibility in job assignment, better comparability to market
surveys, fewer and broader job classifications and minimal special pay
complexities.
7. Pay for individual employees will be established and maintained based on
qualifications, experience and job performance as reflected in regular and timely
performance evaluations.
8. The City's compensation structure will be reviewed and revised from time to time
to assure competitiveness versus the relevant market.
9. The City's Compensation Philosophy will be publicly reviewed from time to time,
to assure meaningful public input and maintain relevance as circumstances
change.
10. The City will aggressively advocate for legislative and regulatory changes
necessary to maximize the tools available to achieve the principles embodied
herein.
ADOPTED this 14th day of June, 2011
K