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Q SEW VoR´┐Ż <br />CITY OF <br />p d <br />City Council Staff Report <br />Agenda Item No. 15 <br />November 13, 2012 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: City Manager's Office <br />Dave Kiff, City Manager <br />949 - 644 -3001 dkiff(a)newportbeachca.gov <br />Human Resources Department <br />Terri L. Cassidy, Deputy City Manager /HR Director <br />949 - 644 - 3303, tcassidy(a)newportbeachca.gov <br />PREPARED BY: Terri L. Cassidy, Deputy City Manager /HR Director <br />APPROVED: <br />TITLE: Fox Lawson & Associates' Executive Management Classification <br />and Compensation Study <br />ABSTRACT: <br />Via Resolution 2011 -55, City Council adopted a compensation philosophy that seeks to <br />establish clear guidelines for compensating City of Newport Beach employees. In <br />August 2011, Fox Lawson and Associates, a Division of Gallagher Benefits, Inc., was <br />hired to review the City's classification and compensation structure, beginning with <br />Executive Management positions, due to significant turnover /anticipated recruitments <br />and the desire to retain key employees. The firm was also retained in July 2012, to <br />perform the first city -wide classification /compensation study of all full -time positions, <br />which is now in process. <br />The Fox Lawson study revealed that the City of Newport Beach does not have a <br />competitive or progressive Executive Management pay /benefits plan reflective of the <br />City's thinking regarding recruitment/retention with fair total compensation. This item <br />asks Council to set salary ranges with data compiled using "peer cities" as identified by <br />the City Council, looks at private /public market comparison factors and establishes a <br />framework to attract and retain high performing employees. The Executive Pay plan is <br />the first step in establishing a balanced comprehensive compensation structure. <br />