Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: CITY MANAGER

DATE: OCTOBER 1, 2002

SUBJECT: ADOPTION OF RESOLUTION ESTABLISHING SALARY AND HOURLY RANGES FOR ALL COMPETITIVE AND MANAGEMENT JOB CLASSIFICATIONS

RECOMMENDATION

Adopt Resolution No. 2002- __ establishing salary and hourly ranges for all competitive and management job classifications and recinding Resolution No. 2002-56.

BACKGROUND

At their July 2, 2002 meeting, the City Council received a salary survey and a recommendation from Staff that salary ranges for non-management positions be established at the 75th percentile and be adjusted according to the Consumer Price Index (CPI) for the one year period ending in April, 2002. The Council approved the staff recommendation and adopted Resolution No. 2002-56.

Salaries for the nine management positions were adjusted only for the CPI pending a salary survey. Therefore, to adjust the salary ranges for these nine positions a new Resolution should be adopted replacing Resolution No. 2002-56.

DISCUSSION

The City of Rancho Palos Verdes has nine management positions. These positions, and current salary ranges are:

    • Assistant City Manager $74,432 - $96,665
    • Director of Finance & Information Technology $74,432 - $96,665
    • Director of Recreation & Parks $67,431 - $87,573
    • Director of Administrative Services $67,431 - $87,573
    • Director of Public Works $80,207 - $104,165
    • Director of Planning, Building & Code Enforcement $80,207 - $104,165
    • City Clerk $63,432 - $82,380
    • Deputy Director of Public Works $62,549 - $81,233
    • Deputy Director of Planning, Building & Code Enforcement $62,549 - $81,233

Even with the assistance of an outside consultant we have not been able to develop a process for establishing salary ranges for these positions which we believe accurately reflect (1) comparable jobs in other agencies, (2) the difficultly of attracting qualified personnel for the various positions, (3) the equity in establishing different ranges for our nine positions based on their relative "value" to the City and (4) the constantly changing responsibilities of each of our positions. Therefore, establishment of a two-tiered management salary structure seemed to have the greatest merit.

The six Department Head positions (including the Assistant City Manager) would all be assigned the same salary range. The proposed range is $67,000 - $120,000. The City Manager could set the actual salary for each Department Head position anywhere within that range. The three "Deputy" positions (including the City Clerk) would also be assigned to one range. The proposed range is $62,000 - $105,000. Similar management salary structures are becoming more common in the public sector, with the City of Long Beach providing the nearest example.

FISCAL IMPACT

It should be noted that an adjustment to the salary ranges does not impact actual employee salaries. The approved City Operating Budget provides limits to merit raises each year. For FY 2002-03 salary increases are limited to approximately $135,000 or about 5.7% of payroll. The City awards salary increases based upon performance and only at the time of an employee’s annual performance review.

Respectfully submitted,

Les Evans

City Manager

Attachment: Resolution No. 2002-

RESOLUTION NO. 2002-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES ADOPTING SALARY AND HOURLY RANGES FOR ALL COMPETITIVE AND MANAGEMENT EMPLOYEE JOB CLASSIFICATIONS, RESCINDING RESOLUTION NO. 2002-56.

WHEREAS, as part of the 1995-96 fiscal year budget, the City Council directed staff to conduct certain compensation studies measuring compensation data from both the public and private sectors; and,

WHEREAS, the compensation studies indicated that most of the City's job classifications were below the market median; and,

WHEREAS, on March 1, 1996, the City Council adopted Resolution No. 96-21 amending certain salary ranges for all full-time employees and establishing the merit pool compensation system; and,

WHEREAS, the success of any plan in the public or private sector is dependent upon occasionally adjusting the salary ranges to be competitive with the marketplace; and,

WHEREAS, on July 15, 1997, following the adopting of the FY 1997-98 City budget, the City Council adopted Resolution No. 97-69 which adjusted the salary and hourly ranges by two (2) percent; and,

WHEREAS, on June 3, 1998, following the adopting of the FY 1998-99 City budget, the City Council adopted Resolution No. 98-48 which adjusted the salary and hourly ranges by one and a half (1.5) percent; and,

WHEREAS, in late 1998, staff conducted a salary survey modeled after the 1995 study using the same survey pool of public agencies and, when possible, the same comparable positions. Based on the results of the updated survey, staff determined that the salary ranges for 16 positions required adjustment in order to be within 5% of the market median so that all City's salary ranges continue to be competitive with the marketplace; and,

WHEREAS, on June 1, 1999, following the adoption of the FY 1999-00 City budget, the City Council adopted Resolution No. 99-42, which modified the salary ranges for 16 job classifications based on the 1998 salary survey, adjusted the salary and hourly ranges by two (2) percent based on the Consumer Price Index and provided a monthly car allowance for certain job classifications; and,

WHEREAS, on June 6, 2000, following the adoption of the FY 2000-01 City Budget, the City Council adopted Resolution No. 2000-34 which adjusted the salary and hourly ranges by three and four tenths (3.4) percent based on the Consumer Price Index; and,

WHEREAS, with the adoption of the FY 01-02 City budget, the City Council directed that all City's salary and hourly salary ranges be adjusted three and six tenths (3.6) percent based on the Consumer Price Index for the preceding twelve month period, so that all City's salary ranges continue to be competitive with the marketplace;

WHEREAS, on July 2, 2002, the City Council adopted Resolution No. 2002-56, which established the salary and hourly ranges for selected classifications at the 75th percentile and by the Consumer Price Index of 2.8% for FY 02-03; and

WHEREAS, on October 1, 2002, the City Council adopted Resolution No. 2002-__, which established a two-tiered management salary structure best determined to address broad comparability within the public sector job market, salary equity among the management positions, and flexibility to recruit qualified applicants and to change job responsibilities.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:

Section 1: The salary and hourly ranges for City job classifications are adopted as outlined in the attached Exhibit "A."

Section 2: Resolution No. 2002-56 is hereby rescinded.

Section 3: A monthly car allowance for certain job classifications is adopted as outlined in the attached Exhibit "B."

PASSED, APPROVED and ADOPTED this 1st day of October 2002.

___________________________
MAYOR

ATTEST:
_____________________________
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )

I, JO PURCELL, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2002- was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on October 1, 2002.

___________________________
CITY CLERK