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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