R 4072 I
I
RESOLUTION N0.4072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE ESTABLISHING A MANAGEMENT
MERIT PAY PROGRAM
WHEREAS, the City Council of the City of Arroyo Grande ("City") approved salary and
benefit adjustments for management employees for Fiscal Year 2007-08 and Fiscal Year
2008-09 in on August 28, 2007; and
WHEREAS, the City Council deems it in the best interest of the City that compensation for
management employees be based upon performance and merit; and
WHEREAS, the City Council deems it in the best interest of the City that compensation for
management employees be adjusted as hereinafter provided
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
that:
1. The Management Merit Pay Program set forth in Exhibit "A" attached hereto and
incorporated herein by this reference is hereby approved, to be effective beginning
February 13, 2008.
2. All other management employee salary and benefit terms and conditions remain in
full force and effect.
On motion of Council Member Costello seconded by Council Member Guthrie and on the
following roll call vote, to wit:
AYES: Council Members Costello, Guthrie, Arnold, Fellows, and Mayor Ferrara
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 12`" day of February 2008
RESOLUTION N0.4072
PAGE 2
TONY F A, MAYOR
ATTEST:
KELLY W TMO E, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN'ADAMS, CITY MANAGER
APPROVED'AS TO FORM:
TIM THY J. EL, CITY ATTORNEY
' Exhibit A
CITY OF ARROYO GRANDE
MANAGEMENT MERIT PAY PROGRAM
Objective
Salaries for management employees are established on a merit pay basis to recognize
and compensate employees for performance level, ability to meet and exceed
expectations, and successful and timely execution of goals and objectives. The
provisions outlined in this program do not apply to increases determined to be cost of
living adjustments (COLAs).
Performance Evaluation
A performance evaluation report is completed for each management employee on an
annual basis and is due on the employee's City employment anniversary date. Merit
pay is evaluated and determined in conjunction, and based upon the results of, the
performance evaluation report.
Merit Pay Increases
Increases for management employees within the classification pay range shall be
recommended by the supervisor and approved by the Department Director and City
Manager. The increase amount shall be based upon performance level.
If the employee receives an overall average performance score of 5 or above, the
employee shall be eligible for a merit increase of 3% within the classification pay range.
If the employee receives an overall average performance evaluation score of 6 or
above, the employee shall be eligible for a merit increase of 4%
If the employee receives an overall average performance evaluation score of 7 or
above, the employee shall be eligible for a merit increase of 5%.
I
If the employee receives an overall average performance evaluation score of 8 or above
and a minimum of 80% (fractions rounded to the nearest number) of goals and
objectives from the prior year have been completed and/or maintained on schedule, the
employee shall be eligible for a merit pay increase up to 6%.
If the employee receives an overall average performance evaluation score of 9 or above
and a minimum of 90% (fractions rounded to the nearest number) of goals and
objectives from the prior year have been completed and/or maintained on schedule, the
employee shall be eligible for a merit increase up to 7%.
If the employee receives an overall average performance evaluation score of 9 or above '
and 100% (fractions rounded to the nearest number) of goals and objectives from the
prior year have been completed and/or maintained on schedule, the employee shall be
eligible for a merit pay increase up to 8%.
I
Management Merit Pay Program
Page 2
In order to maintain the existing merit pay level, the management employee shall
receive a minimum overall average performance evaluation score of 4 or above. An
overall average performance score below 4 will result in a reduction of up to 2% in
annual pay within the salary range set forth for the employee's classification. Any such
reduction shall be subject to due process provisions as set forth in the City's Personnel
Regulations.
Goals and Objectives
During the annual performance evaluation process, goals and objectives for the
upcoming year shall be recommended by the employee, determined by the supervisor,
i and reviewed and approved by the Department Director and City Manager. Goals and
objectives may include both project/program and performance goals and objectives.
Project/program goals include proposed work to develop, implement and/or improve a
project or program. Performance goals and objectives include targeted and measurable
achievements related to ongoing responsibilities.
Once determined, to qualify for merit pay or merit bonus pay the following year, project
schedules shall be prepared and submitted for all identified project/program goals and
objectives. Project/program schedules shall be maintained on a monthly basis to track
the status of project/program goals and objectives.
The requirement for completion of goals may be adjusted or waived if special
circumstances have considerably impacted the ability of the employee to accomplish
established goals during the course of the year and adjustments have been agreed to
by the supervisor. Such circumstances include health or family issues that have
impacted attendance, adjustments to goals due to changes in priorities, and workload
assignments not anticipated when the goals were established.
If adjustments to work load and priorities are established, the supervisor shall meet with
the employee to prepare and review changes to goals and objectives, as well as ~
project/program schedules. Proposed changes shall be reviewed and approved by the
Department Director and City Manager and included in the personnel file with the prior ~
evaluation report.
Merit Bonus Pay
If a management employee's salary is at the top of the classification pay range, or if the i
employee is eligible for a merit pay increase that would exceed the top of the
classification pay range, the employee shall be eligible to receive up to 2% one-time
merit pay bonus for extraordinary work performance. ~
In order to be eligible for up to 1 % in merit bonus pay, the management employee shall '
have accomplished and received the following on his/her performance evaluation report:
A score of 8 or above on each performance criteria score; and
A minimum of 75% of goals and objectives from the prior year shall have been ~
maintained and completed on schedule; or
Management Merit Pay Program
Page 3
• Have successfully completed an extraordinary accomplishment determined by
the City Manager to warrant special recognition.
In order to be eligible for up to an additional 1% in merit bonus pay, the management
employee shall have accomplished and received the following on his/her performance
evaluation report:
• A score of 9 or above on each performance criteria score; and
• 100% of goals and objectives from the prior year shall have been maintained and
completed on schedule; or
Merit bonus recommendations shall be submitted to the City Manager in a separate
memorandum prior to presenting the performance evaluation report to the management
employee. Merit bonus pay may be received in a lump sum amount.
Merit bonus pay shall not be considered part of the employee's base salary. Merit
bonus pay shall be presented on a one-time basis for any given year and shall be
considered independently each year.
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 4072 is a true, full, and correct copy of said Resolution passed and
adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 12"'
day of February 2008.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 19`" day of
February 2008.
`i1/i~
KELLY ET ORE, CITY CLERK