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2004-119RESOLUTION NO. 2004R- 119 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM AMENDING RESOLUTION NO. 2000R-1:30 WHICH ESTABLISHED MANAGEMENT PAY POLICIES FOR CLASSIFICATIONS DESIGNATED AS EXECUTIVE, ADMINISTRATIVE, MIDDLE MANAGEMENT, SUPERVISORY AND PROFESSIONAL INCLUDING POLICE AND FIRE SAFETY MANAGEMENT WHEREAS, the Human Resources Director has recommended in a staff report dated June 15, 2004, that Resolution No. 2000R-130 be amended in the manner hereinafter set forth; and WHEREAS, as a result thereof, the need exists to amend Resolution No. 2000R- 130 which established Management Pay Policies for classifications designated as Executive, Administrative, Middle Management, Supervisory and Professional including Police and Fire Safety Management. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Anaheim as follows: 1. That Sections 8.04, 8.05, 8.06, 8.06.01, and 8.06.02 of the Management Pay Policies be amended to read as follows: "8.04 Merit increases for employees rated "Extraordinary Achievement" require pre- approval of the City Manager. 8.05 The Merit Matrix shall be as follows: ] Employee's Current Range Placement Employee's Compa-Ratio Compa-Ratio Compa-Ratio Exceptional Performance Zone Overall Rating 80.0 -90.0 90.1 - 100.0 100.1 - 110.0 Compa-Ratio above 110.0 4.5% - 5.0% Outstanding Any amount of increase Contributor 5.0 - 5.5% 5.0 - 5.5% 5.0 - 5.5% exceeding end compa-ratio above *See Below for 115.0 paid as lump sum additional I rating category I ___ Up to 3.0% - 4.0% Significant [ not to exceed Contributor 3.5% - 4.0%I 3.0% - 4.0% compa-ratio of 0 110.0 Some i improvement 0 - 1.5% 0- 1.0% 0 0 Needed !Unacceptable i 0 0 0 0 An *additional rating category of "Extraordinary Achievement" is available for use by Management to recognize major achievement by an employee. An overall rating in this category requires pre-approval of the City manager. The Executive Manager shall provide written support to the City Manager detailing the "Extraordinary Achievement". Employees who receive this rating are eligible for I:\VKILMUR\OT2892VK.DOC a merit increase in the rancje of 6.5% to 7.0%. If employee has a compa-ratio of 110.00 or greater, the magnitude of the merit increase is 6.0% - 6.5%. Any amount of increase exceeding an end compa-ratio above 115.0 shall be paid as a lump sum. 8.06 Employees in classifications assigned to an Executive Salary Range shall be eligible for a merit increase every six months while in the lower third of the salary range. Eligibility shall be annually thereafter up to the salary range Control Point. 8.06.01 The merit matrix for Executive level positions shall be as follows: Extraordinary Achievement Outstanding Contributor Significant Contributor Some Improvement Needed Unacceptable 6.0% - 7.0% 5.0% - 6.0% 3.0% -4.0% 0.0%- 1.5% 0% 8.06.02 Executive salary ranges shall have an Exception Rate Zone with the following parameters: 1. Rate shall not be any higher than 10% above the salary range control point at any time. 2. Shall be used at the discretion of the City Manager (City Council for appointee positions) for the following reasons: a. Unusual recruitment/retention issues b. Performance ratings of Extraordinary Achievement or Outstanding Contributor when an employee is at Control Point. c. If used for meritorious performance, the increase over Control Point shall be paid ~ to base and ~ lump sum." 2. That, Sections 10.01, 10.02 and 10.03 of the Management Pay Policies be amended to read as follows: "10.0 City Council Appointees 10.01 Between July 1 and August 15 of each year, the City Council shall conduct and complete an Annual Performance Review ("APR") for each City Council appointee (e.g., the City Manager, City Attorney, City Treasurer and City Clerk). City Council shall evaluate the performance of each appointee for the period of the preceding fiscal year. The City Council may also elect to conduct a mid-year progress update to determine how effectively the appointee is meeting performance expectations and to discuss goals and objectives. Upon completion of each APR, the City Council, by a majority vote of its entire membership, shall rate the performance of each appointee for such period as I) unacceptable, II) some improvement needed, III) significant contributor, IV) outstanding contributor, or V) extraordinary achievement. The City Council shall meet with each appointee and discuss his or her APR rating. The City Council shall also I :\VKI L M U R\OT2892VK. DOC inform the City Manager and Human Resources Director of each appointee's annual rating by the completion of a form provided by the Human Resources Director for such purpose. Failure of the City Council to conduct or complete any APR on time shall not affect any merit pay increase otherwise authorized pursuant to Section 10.02 of this Resolution. 10.02 Except as set forth in Section 10.03 below, each appointee may qualify to receive a merit pay increase, in a percentage equal to the maximum merit salary adjustment for the applicable rating category (e.g., "significant contributor or outstanding contributor") as established for other members of the Management Group pursuant to Section 8 of this Resolution. For appointees with a pay rate above the lower third of their salary range, the merit pay increase shall be effective on the first day of the bi-weekly pay period that commences on the date closest to July 1 of such year. Appointees with a pay rate in the lower third of their salary range shall be eligible for consideration for an additional merit increase effective on the first day of the bi-weekly pay period that commences on the date closest to January 1 of such year. The Human Resources Director is directed to implement such merit increases in accordance with these policies. 10.03 Notwithstanding the provisions of Section 10.02, an appointee shall not receive the annual merit increase if either (I) such appointee received a rating of "unacceptable" in his or her APR for the immediately preceding fiscal year, or (11) the City Council, by majority vote of its entire membership, establishes a different date for, or a different amount of, such merit increase, or determines to grant no merit increase for such appointee." 3. That, Section 13.04 of the Management Pay Policies be amended to read as follows: "13.04 An employee who is promoted or assigned to the classification of Chief Utilities Systems Operator, Electrical Field Superintendent, Fire Battalion Chief, Public Works Operations Superintendent, or Public Works Operations Field Supervisor shall be placed at a rate in the range which provides a 15% pay increase, as long as it does not exceed a compa-ratio of 105. If a 15% increase places the employee's salary beyond 105 compa-ratio the employee-shall receive a minimum of 5% increase or an increase between 5% and 15% in order to bring the employee to 105 compa-ratio. In no case may the employee's base salary exceed the Control Point. A new merit review date shall be established in accordance with Section 8 of these Pay Policies." 4. That, Section 15.06 of the Management Pay Policies be amended to read as follows: "15.06 An incumbent who is reclassified to the classification of Chief Utilities Systems Operator, Electrical Field Superintendent, Fire Battalion Chief, Public Works Operations Superintendent, o_(_r Public Works Operations Field Supervisor, shall be placed at a rate in the range which provides a 15% pay increase, provided the rate does not exceed a compa-ratio of 105. If an increase places the employee's salary beyond 105 compa- ratio the employee shall receive a minimum of 5% increase or an increase between 5% and 15% in order to bring the employee to 105 compa-ratio. In no case may the employee's base salary exceed the Control Point. The employee shall be given a new merit review date in accordance with Section 8 of these Policies." I:\VKILMUR\OT2892VK.DOC BE IT FURTHER RESOLVED that the effective date of this Resolution shall be June 18, 2004. AND, BE IT FURTHER RESOLVED that except as amended herein, Resolution No. 2000R-130 shall remain in full force and effect. THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 15th day of June ,2004, by the following roll call vote: AYES: Mayor Pringle, Council Members Tait, Hernandez, Chavez, McCracken NOES: none ABSENT: none ABSTAIN' none MAYOR OF THI ANAHEIM ATTEST: O~'TY CLER~ OF THE CITY OF ANAHEIM APPROVED AS TO F(~M: JACK L. W,~, , CIT ATTO 'EY // I:\VKI LMUR\OT2892VK.DOC