CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
1/10/2023
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM:
JOE HOEFGEN
INTERIM CITY MANAGER
SUBJECT:
RESOLUTION AMENDING THE CITY’S COMPENSATION PLAN TO ESTABLISH A
MANAGEMENT INCENTIVE PAY PROGRAM
Summary:
The City recognizes the importance of attracting and retaining highly qualified and experienced leadership and institutional knowledge in its management positions.
Management Incentive Pay is a competitive tool to assist with the recruitment and retention of high performing personnel for the consistent delivery of effective public services.
Recommendation:
Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, AMENDING RESOLUTION NO. 2022-12-6716 TO ESTABLISH A MANAGEMENT INCENTIVE PAY
PROGRAM
Fiscal Impact:
The fiscal impact of this program will be dependent on the frequency of its use. It will be necessary to ensure that funding is available as part of any future implementation of the Management Incentive Pay Program.
Strategic Plan Objectives:
Objective No. 5.7.1: Evaluate the attractiveness of employee compensation, work environment and employee appreciation programs.
Objective No. 6.0: Promote a transparent and open government.
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Background and Analysis:
As a result of retirements in the Southern California public sector over the past few years, attraction and retention of highly qualified management personnel has been an important consideration, mainly for smaller organizations such as the City of Signal Hill where competitiveness in the public sector employment market is challenging.
The proposed provision to assist the City in attracting and retaining experienced leadership and institutional knowledge is Management Incentive Pay. This proposed provision will extend beyond the existing Bonus Program that awards up to a maximum of $1,000.00 per fiscal year in recognition of exemplary performance. The existing Bonus Program is limited and applies to those management employees with exemplary performance and who have been at the top step of their salary range for at least 12 months.
The proposed provision for Management Incentive Pay is in accordance with CalPERS regulations and provides for the following:
· The ability for the City to provide added compensation for the performance of significant additional duties and/or the acceptance of significant additional responsibilities by eligible employees.
· Management Incentive Pay may be provided as an annual increase in salary as a percentage of pay in one of three tiered categories, not to exceed 25% in any fiscal year. The tiered categories are related to the amount and complexity of the additional duties and responsibilities assigned to the employee and consist of a Low Tier of 1% - 10%, an Intermediate Tier of 10% - 17.5%, and an Upper Tier of 17.5% - 25%. · Placement within these tiers will be dependent on the level of diversity of the employee’s job functions, regardless of hours worked, and other unique and relevant circumstances associated with the position.
· The eligibility and amount of Management Incentive Pay for a Department Head will be determined by the City Council and at the recommendation of the City Manager, and the eligibility and amount of Management Incentive Pay for a management employee (who is not a Department Head) will be determined by the City Manager. · Management Incentive Pay shall not be for overtime, nor in lieu of other benefits excluded under the California Public Employees Retirement Law statues, and not for special compensation not otherwise listed in Title 2 CCR, Section 571(a)(1) Incentive Pay - Management Incentive.
· Management Incentive Pay may be reduced or removed without cause, notice or hearing.
It is envisioned that Management Incentive Pay will be provided in limited circumstances to eligible employees, with the goal of attracting and retaining employees performing significant additional duties and/or accepting significant additional work responsibilities.
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Reviewed:
_________________________
Sharon del Rosario
Attachment
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