REPORT TO COUNCIL
SUBJECT
Title
Amend the Salary Resolution to Revise Merit Increase Provisions, Add a Severance Provision and Amend the Salary Schedule to Adopt New Salary Ranges for Unclassified Department Directors (Pay Plan Category F)
Report
BACKGROUND
Unclassified department directors (Pay Plan Category F) employees are not organized and do not negotiate for any changes to their wages, hours, and/or other terms and conditions of employment. Department directors are at-will employees, appointed by the City Manager in accordance with the City Charter, Article IX - Section 901. Department directors serve as the City Manager's executive team responsible for: managing the operations for the respective departments, driving vision and purpose of their portfolio, working in a strategic manner that delivers results, maintaining the City's culture while building a team, managing the fiscal resources of their department, and upholding the delegated authority from the City Manager.
There are some compensation conditions that when experienced together, with the City's current policy, can have an adverse impact on salary, recruitment, or retention of our executive level staff. Most absent is a formal compensation philosophy to establish compensation for executive level employees that will support strong recruitment and retention of staff in a highly competitive market. Several undesirable issues have been identified over the years in regards to the salary structure of the department directors and, particularly, the absence of conventional compensation practices for executive level employees. For example:
* The current practice of maintaining 6 salary ranges for department directors with no strong business case for such distinction between director service results in market value distortion and pay inequity issues.
o Note: One exception is the NOVA Director position which is assigned a federal salary limit.
* The 15% salary range for department directors not only...
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