8P
Date: June 23, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Jamie Le, Assistant to the City Manager | [email protected] Subject: City Manager – Adopt RESOLUTION Setting Forth Changes Regarding Employment Compensation for Executive and Management Employees.
Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council adopt a RESOLUTION setting forth changes regarding employment compensation for Executive and Management employees.
FUNDING
None required.
DISCUSSION
Every 4 years, the Executive and Management Merit Pay Plan establishes a reference point for each Executive and Management position based on salary surveys of comparable positions within other agencies. For positions in which comparable external position data is limited or not available, those positions are benchmarked to comparable internal positions. From this reference point figure an entry point and maximum point are calculated, establishing the full pay range for the position. In intervening years, the reference point and maximum point are adjusted by the Consumer Price Index (CPI).
The Merit Plan does not provide for longevity, step increases or other forms of salary adjustments but is instead based on the Merit Pay Matrix and employee performance. The Merit Pay philosophy is based on the following key factors:
Attract, retain and motivate qualified employees to foster the attainment of initiatives in support of the City's mission and the directives of the City Manager and City Council. Establish compensation policies to reward productivity and encourage effective resource utilization.
Structure a compensation plan that is internally equitable and reflects the salary practices of similar public agencies.
Plan, implement and control all compensation expenditures through appropriate budgetary control established at the Department and the City Manager level. 1 City Council
June 23, 2026
Provide for annual employee performance appraisals to assess management effectiveness in meeting established goals and objectives and to set future goals and objectives.
This year, reference point adjustments were established based on a comprehensive salary survey. An adjustment to the reference points does not guarantee an increase in pay equal to the same amount since incumbent compensation is adjusted pursuant to the guidelines and limits of the Merit Pay Matrix and is dependent on employee performance. With that said, based on the salary survey, the reference point adjustment presented in this item will initiate required increase for 12 employees to fall within the newly proposed salary ranges. The costs of these adjustments were previously approved by City Council as part of the overall merit pay plan approval, which was included in the adopted budget for Fiscal Year 2026-27.
ATTACHMENTS
1. 2026 Executive and Management Resolution Redlined Revisions Version (Materials Available)
2. 2026 Executive and Management Resolution Revised Clean Version (Materials Available)
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