HomeMy WebLinkAbout03 - Key and Management Employees Compensation• July 11, 2000
Agenda Item 3
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
TO: Mayor and City Council
FROM: Homer Bludau, City Manager 4z��
SUBJECT: Key and Management Employees' Compensation
For the past several years, the City Council has approved compensation adjustments for
Key and Management employees through an annual resolution. The resolution has
provided an overall cap for salary adjustments, with flexibility for the City Manager to
approve higher or lower individual adjustments based on employee performance. The
overall cap is related to the annual cost of living adjustments approved in Memoranda of
Understanding with the employee associations. For July 2000, these increases range
• from 2.5% to 4.5 %. I am recommending an overall adjustment of 3% for Key and
Management employees, which will have a cost of approximately $150,600 in fiscal year
2000 -01. This amount was anticipated in establishing the budget's unappropriated
reserve.
The City began moving towards a performance based compensation system for Key and
Management employees in 1993. Unfortunately, the transition was never completed, and
the annual adjustment tied to cost of living is the only salary increase currently available
for Key and Management employees. Unlike other employees in the City, there is not a
system in place that provides an opportunity for advancing through a salary range based
on good performance. I am concerned about the impact of this situation on the morale of
these employees, who have a high level of responsibility and are expected to work well
beyond a standard number of hours. This situation also could affect our ability to retain
employees who are talented and have a great deal of knowledge of Newport Beach,
especially in the current job market. Staff is exploring ways of completing the work that
was started in 1993, and I expect to return to the City Council with additional
recommendations on Key and Management compensation during this fiscal year.
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RESOLUTION NO. 2000- _ •
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH ADJUSTING SALARIES FOR KEY AND MANAGEMENT
EMPLOYEES FOR FISCAL YEAR 2000 -01 AND AMENDING THE CITY'S
CLASSIFICATION AND COMPENSATION PLAN TO REFLECT SAID
CHANGES
WHEREAS, the City Council of the City of Newport Beach has the authority,
under the Charter of the City, to establish salaries for employees; and
WHEREAS, the City Manager has recommended certain salary adjustments for
Department Directors and other Key and Management employees;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Newport Beach hereby establishes, effective the first pay period of July 2000, that the
salaries of Key and Management employees may be adjusted by the City Manager within
a total cap of 3% of current Key and Management salaries.
BE IT FURTHER RESOLVED that the City's Classification and Compensation
Plan shall be amended to reflect said adjustments.
ADOPTED this 11`s day of July 2000.
John E. Noyes, Mayor
ATTEST:
City Clerk
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