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HomeMy WebLinkAboutItem 4.11 Personnel Rules Revis CITY CLEI K File # 700-40 AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 18, 2002 SUBJECT: Revisions to the Personnel System Rules Report Prepared by: Richard C. Ambrose, City Manager ATTACHMENTS: 1. Resolution Amending the Personnel System Rules RECOMMENDATION: ~ Adopt Resolution FINANCIAL STATEMENT: Based on the current number and status of employees, costs associated with the proposed changes to the City's compensation - system will vary depending on employee. It is estimated that the changes proposed to the compensation system are not significantly more than the cost of the City's existing compensation system cost for Fiscal Year 2002-2003. DESCRIPTION: The City Council has adopted rules' for the administration of the City's Personnel System. Based on a market survey and discussions with City employees amendments to the Personnel System Rules are proposed. This report will review the City's existing compensation system and highlight the proposed changes. Existing Compensation System The City's Personnel System is administered by the City Manager and operates on a merit basis. This means that employees are selected, retained, promoted and paid based on their level of competency to perform required job duties. Each position in the City service has an assigned pay range with minimum and maximum pay rates. Basic qualifications are established for each position and thereafter, employees are selected in acCordance with the City's Personnel System Rules. All salary adjustments are based entirely on employee performance. All recommendations for a merit increase are presented to the City Manager and include a written performance evaluation in accordance with the City's Personnel SYstem Rules. The City does not provide any cost of living (COLA) adjustments as across-the-board salary adjustments. In addition to merit salary adjustments, the City offers Performance Pay Adjustments (bonuses), which are intended to provide limited pay adjustments for those employees near the top of the adopted pay range for their position. Performance Pay Adjustments may be only granted in conjunction with annual performance evaluations and are awarded when the evaluation process indicates that the employee's performance is at a level that would warrant an adjustment beyond the adopted salary range. COPIES TO: ITEM NO. ~ Proposed Compensation System On an annual basis the City Manager holds a general employee meeting. As a follow-up to the annual meeting that was held.on April 30, 2001, the City Manager proposed the formation of an employee committee/taskforce to work on two common items of interest that were expressed by employees: )~ The Structure of the City's Compensation System )~ The City Performance Evaluation Form/Process A nine-member Employee Committee was organized and has developed revisions to the City's existing compensation system that splits a market rate adjustment from merit adjustments. The following is a summary of the Employee Committee's proposal: Market Rate Adjustment - On July 1, 2002, the City Manager would adjust all employees' salaries based upon the increase in their individual salary range as approved by the Council subject to a cap of If an employee's June 30, 2002 salary falls below the July 1, 2002 salary range level, the employee will receive an automatic adjustment to the bottom of the range, even if it is more than 5%. Merit Adjustment - Merit Adjustment increases would continue to be granted on employee anniversary dates and based entirely On performance. The amount available for Merit Adjustments will be calculated annually taking the difference between the Market Rate Adjustment for all employees and the amount the Council budgets for salary increases each Fiscal Year. The City Manager, in exceptional circumstances may grant a Merit Adjustment in excess of the annual · Merit Adjustment amount provided that the adjustment will not create a salary that is greater th~ the range authorized in, the Council adopted Salary Plan. The amount of the adjustment shall be based on the evaluation presented and any other factors indicating the employee's work performance. Performance Pay Adjustment (Bonus) - Maintain City's Existing Rule The proposed amendment to the City's Personnel System Rules shall be effective July 1, 2002. The Employee Committee proposed that the new compensation system be reviewed in three years. Dublin Employee Consensus of the Compensation Proposal A total of two general employee meetings have been held to obtain feedback Comments and to get a majority consensus from employees on the new compensation proposal. These meetings were held on April 22 and May 22, 2002. During. the meeting of May 22, 2002, the Employee Committee obtained strong support (82.43%) for the proposal. Recommendation This proposal not only has broad employee support but also has elements that recognize the impact of the economy on wages, the competitive market in which the City competes for labor, and employee performance, without significantly increasing the City's payroll costs. It is reCommended that the City Council approve the proposed changes to the City's Personnel System Rules and adopt the Resolution. RESOLUTION NO. - 02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING THE PERSONNEL SYSTEM RULES WHEREAS, the City Council is authorized to adopt rules for the administration of the City's personnel system; and WHEREAS, the City Council adopted Resolution 141-90 and subsequent amendments establishing the Personnel System rules; and WHEREAS, the objective of these rules is to facilitate efficient and economical services to the public and provide for an equitable system of personnel management in municipal government. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend the Personnel System Rules as follows: RULE XV. SALARY ADJUSTMENTS Section 1. "Market Rate Adjustments ": All Market Rate Adjustments shall be based on an annual salary survey as determined by the City Manager and approved by the City Council. a. As provided for in the salary and benefit plan, the City Manager is authorized to assign salaries within a range, which is adopted by the Council in the Salary Plan. b. The Market Rate Adjustments amount shall be established on an annual basis based on the change in the employee's salary range from one Fiscal Year to the next and shall not exceed 5% unless an employee's actual salary falls more than 5% below the bottom of the new salary range. c. Market Rate Adjustments shall be effective July l~t annually. d. The Market Rate Adjustment shall be noted on the Personnel Action Form that must be approved by the City Manager. Section 2. "Merit Adjustments": Are separate from Market Rate Adjustments and shall be based entirely on employee performance. a. Each Fiscal Year the City Manager will determine the maximum Merit Adjustment percentage based on the Council authorized Salary Plan for all regular employees regularly scheduled to work 20 or more hours per week. b. The amount available for Merit Adjustments shall be derived by the difference in the Market Rate Adjustments and the amount budgeted for salary increases. ATTACHMENT 1 c. The City Manager will notify all regular employees prior to the start of the Fiscal Year the amount available for Merit Adjustments. d. Any recommendation for a Merit Adjustment shall include a written performance evaluation. e. Employee's performance shall be reported on a form designated by the City Manager. Where applicable, this evaluation shall also include input and observations from the employee's supervisor. f. Based upon the performance evaluation, the City Manager may authorize a Merit Adjustment, provided that adjustment will not create a salary that is greater than the range authorized in the adopted Salary Plan. The amount of the adjustment shall be based on the evaluation presented and any other factors indicating the employee's work performance. g. The effective date of any Merit Adjustment shall be noted on the Personnel Action Form that must be approved by the City Manager. Section 3'. "Performance Pay Adjustments ": Are separate from Merit Adjustments and are intended to provide limited pay adjustments given an employee's salary position within the adopted pay range. (The balance of this Section remains unchanged from its original version.) BE IT FURTHER RESOLVED that the changes contained herein shall be effective July 1, 2002. PASSED, APPROVED AND ADOPTED this 18t~ day of June, 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk K2/G/6-18-O2/reso-personnelmles.do¢ (Item 4.11)