HomeMy WebLinkAbout2011-55 - Total Compensation PhilosophyRESOLUTION 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 "2 "d 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.
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
ATTEST:
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LEILANI I. BROWN
City Clerk
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MICHAEL F. HENN
Mayor of Newport Beach
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby
certify that the whole number of members of the City Council is seven; that the foregoing resolution,
being Resolution No. 2011 -55 was duly and regularly introduced before and adopted by the City
Council of said City at a regular meeting of said Council, duly and regularly held on the 14th day of
June, 2011, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Hill, Rosansky, Gardner, Selich, Curry, Daigle, Mayor Henn
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 15th day of June, 2011.
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City Clerk
Newport Beach, California
(Seal)