CC - Item 4E - Merit Salary Adjustment for City ManagerROSEMEAD CITY COUNCIL
STAFF REPORT
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: SU TAN, HUMAN RESOURCES MANAGER
DATE: OCTOBER 8, 2014
SUBJECT: MERIT SALARY ADJUSTMENT — CITY MANAGER
SUMMARY
On September 24, 2013, the City Council conducted an annual review of the City Manager's job
performance and provided a rating of Substantially Exceeds Expectations. The City's
established policies and procedures for merit salary adjustments apply to the City Manager in
the same manner as all other full -time employees. Under the City's compensation system, a
performance rating of Substantially Exceeds Expectations equates to a merit salary adjustment
of 5% within the established salary range. For the previous Fiscal Year (2012 -13), all City
employees agreed to forego salary increases including the City Manager. During the current
2013 -14 Fiscal Year employees are eligible to receive merit salary increases based on job
performance. However, in conjunction with this merit salary increase, the City Manager will
begin to pay an amount equal to 2% of salary as a payroll deduction towards the employee's
contribution to the California Public Employees' Retirement System (CaIPERS). It is envisioned
that all employees who are enrolled as members of CalPERS will likely incur the same 2%
CalPERS payroll deduction beginning in July of 2014 in compliance with state law.
Staff Recommendation
That the City Council approve the merit salary adjustment of 5% within the salary range in
accordance with the city's established policies and procedures for all full -time employees.
BACKGROUND
The City's compensation system for all full -time employees provides for annual performance
evaluations and eligibility for merit salary adjustments within established salary ranges. This
policy reads as follows:
TEAM MEMBER SALARY ADJUSTMENT WITHIN SALARY RANGE BASED ON JOB
Effective July 1, 2010, all full -time Team Members will be part of the 0 % -5% Merit Based
Compensation System. All Team Member salary increases, within the salary range, will
be based on merit through annual performance evaluations. Based on the Team
Member's performance score on his /her performance evaluation, a Team Member will
be eligible for a merit increase within the established salary range for his /her job
classification. Team Member salaries may not exceed the maximum salary ranae within
ITEMNUMBER: 46
City Council Meeting
October 8, 2014
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his /her respective job classification. The following is the performance rating categories
and percentage increases that a Team Member may be eligible for based upon funding:
The City Manager's annual salary is within the established salary range. A 5% adjustment to
the City Manager's current salary rate will bring the annual salary to $197,760, which is below
the salary range maximum.
Under the Public Employees' Pension Reform Act of 2013 (CPEPRA), beginning January 1,
2018, public agency employers that have collectively bargained in good faith have the ability to
unilaterally require classic members to pay up to 50% of the total normal cost of their pension
benefit. However, the employee contribution may only be increased up to an 8% contribution
for miscellaneous members. In preparation, the City will need to "phase in" compliance with this
mandate over a 4 year period beginning on July 1, 2014.
Consequently, for compliance with this law, it is envisioned that all City employees who are
enrolled as members of CalPERS will pay an amount equal to 2% of salary through payroll
deduction. The City Manager will be the first employee to make this payroll deduction payment
to CalPERS.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
FISCAL IMPACT
Funds for merit salary adjustments for full -time employees have been included in the City's
2013 -14 Fiscal Year Budget.
d by: Sub '
Su fan
Human Resources Manager
Attachment: City of Rosemead Accomplishments in 2012 and 2013
CITY OF ROSEMEAD
ACCOMPLISHMENTS IN 2012 and 2013
Key Goal: Ensure the City's Continued Financial Viability
• City Council approved an updated Strategic Plan for the years 2012 and 2013
• Adopted balanced Budgets for the 2012 -13 and 2013 -14 Fiscal Years. (The
2012 -13 Budget overcame a $3.6 million General Fund revenue shortfall caused
by state and federal actions without reductions in services to the public.)
• Increased General Fund reserves in 2013 for the first time in several years
• Reduced the City's total workforce by over 40% without full -time employee
layoffs or legal challenges
• Successfully conducted a competitive bid process for solid waste and recycling
services that has reduced customer rates and provides the City with annual
franchise fee revenues without pass- through charges to customers ($1.7 million
in revenues to the City have been received to date.)
• Attracted and processed entitlements for construction of new national brand
restaurants including The Olive Garden, TGI Friday's, Chipotle Mexican Grill, The
Habit Grill, and Wing Stop.
• Negotiated labor agreements that provided for "shared sacrifice" by employees in
order to avoid layoffs, furloughs and benefits reductions, including no merit salary
increases for the 2012 -13 fiscal year; the "amoeba" program enabling full -time
employees to "flex" their work schedules and duties to work special events; caps
on employee vacation accruals and elimination of annual cash -out of unused
administrative leave
• Significantly reduced legal costs for enforcement of the Municipal Code through
implementation of an Administrative Citation ordinance in lieu of criminal
prosecutions in the courts
• Completed the sale of the former Glendon Hotel and approved renovations and
expansion as the Qiao Garden Hotel, and expansion of the Doubletree Hotel
• Outsourced the crossing guard program and obtained "equal partner" shared
financial participation by the Garvey School District, as well as continued
participation by the Rosemead School District
• Resolved the CAL Poultry litigation, which limited legal costs, preserved the ban
on new animal slaughter operations, and mandated facility improvements to
eliminate odors, enhance building aesthetics, and improve vehicular circulation
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• Obtained a "Finding of Completion" from the State Department of Finance to
enable the City to utilize $7 million of existing redevelopment bond proceeds for
community improvement projects, pending ROPS approvals
• Obtained a $500,000 grant from LA County for RCRC interior improvements
(construction currently in progress)
• Renegotiated a telecommunications tower contract at Rosemead Park resulting
in a 15% increase in lease revenues to the General Fund
• Initiated audits and improved TOT reporting procedures for all hotels and motels
resulting in significantly increased revenues to the City
• Established a 'one- stop" public counter in the Community Development Dept. to
streamline processes and become more business - friendly
Key Goal: Enhance Public Safety and Quality of Life
• Realized continued success of the 'Rosemead Model' for law enforcement with
reductions in violent crime, including the selection of a new Chief of Police
• Continued robust community outreach programs including CONNECTIONS,
monthly Safety Meetings, Business Watch and Neighborhood Watch
• Accelerated CERT training for citizens and City staff emergency preparedness
• Enhanced Emergency Preparedness: Obtained grant funds to conduct the
Rosemead Challenge in 2012, the Get Ready Rosemead 2013 campaign,
Emergency Preparedness Fair (in conjunction with the City -wide Yard Sale in
2012 and the National Night Out in 2013, Summer Survival Camp -out, etc.
• Purchased two large portable generators for use in emergencies and at special
events
• Continued a full slate of outstanding community special events including Lunar
New Year Family Festival, Fall Fiesta, 4 th of July Parade /Carnival /Fireworks
Show /5K Run, National Night Out, Summer Concerts in the Park, Memorial Day
Ceremony, 9/11 Memorial Ceremony, Community Yard Sale, etc.
• Installed upgraded, energy efficient ball field lights at Garvey Park and
Rosemead Park in a cost effective manner
• Installed Fitness Zone equipment at Rosemead Park, Garvey Park, Zapopan
Park and the Garvey Center through matching grants from the Trust for Public
Lands
• Installed in- pavement lighting crosswalks in streets adjacent to school campuses
and parks through state Safe Routes to Schools grants
• Completed the RCRC Roof and HVAC Replacement project
• Created a Rosemead Beautification Committee for ongoing community clean -up
projects, annual beautification awards, holiday decorating contest, etc.
• Conducted successful fundraising campaign to bring the Young Americans
performing arts program to Rosemead in October of 2013
• Initiated annual inspections of all apartment complexes by Code Enforcement
• City Council approval of the new Jay Imperial Park (now working its way through
the SCE and PUC approval processes)
Key Goal: Beautify Residential Neighborhoods and Commercial Corridors
• Constructed the Downtown Plaza and Civic Center parking lot improvements
serving City Hall, the Library, and Rosemead Community Recreation Center
(Plans for completion of the Downtown Plaza project are shovel- ready)
• Approved the Garvey Avenue Master Plan design guidelines
• Initiated a no -cost voluntary program to remove blighted conditions including
chain -link fences from front yards, iron bars from windows, and barbed wire from
private properties
• Coordinated with UPRR for installation of wrought iron fencing along the railroad
tracks on Grand Avenue and landscaping /irrigation, at no cost to the City
• Obtained grant funds for installation of landscaping median improvements on
Rosemead Blvd. north of Mission Drive, and on Walnut Grove Avenue between
Marshall St. and Valley Blvd.
• Completed various median and landscaping projects on City streets and public
rights -of -way including Marshall Street, Temple City Blvd., City Hall front set
back, Triangle Park on San Gabriel Blvd. at Walnut Grove Ave. intersection, river
rock installation in medians along Garvey Avenue, Rush St., etc.
• Constructed improvements to the City Hall lobby to improve aesthetics, facilitate
improved customer service, and reduce operating costs (Phase II plans are
completed, pending City Council approval)
• Participated in the Garvey School District Clean -up & Beautification Day projects
by making various "curb appeal' improvements to school sites
• Worked with property owners to remove large, unsightly roof signs from the
Universal Bank and former Barr Lumber buildings on Valley Blvd.
• Completed several street resurfacing projects with replacement of worn -out
street name signs with newly designed reflective signs
• Provided in -kind assistance at Savannah Cemetery for various maintenance,
repairs and special events
• Completed a three -year effort to update a comprehensive update of the Zoning
Code
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