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tW- <br />5513-1 <br />REQUEST FOR <br />COUNCIL ACTION <br />$°"° ° u <br />CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />SEPTEMBER 16, 2014 <br />TITLE: <br />APPROVED <br />PROPOSED AMENDMENT TO <br />❑ As Recommended <br />CLASSIFICATION AND <br />❑ As Amended <br />❑ Ordinance on 1 Reading <br />COMPENSATION PLAN AND <br />❑ Ordinance on 2nd Reading <br />ANNUAL BUDGET <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />Adopt a resolution that amends the City's Basic Management Classification and Compensation <br />Plan (Resolution No. 91 -066) and amends the Fiscal Year 2014 -15 Annual Budget to reduce the <br />compensation level of three job classifications. <br />DISCUSSION <br />The Personnel Services Department periodically reviews the compensation levels assigned to City <br />job classifications to ensure continued market competitiveness and alignment with industry <br />standards. Recently, three vacant middle management job classifications in the Community <br />Development Agency were examined in this process: Housing Division Manager (MM), Economic <br />Development Manager (MM), and Community Development Manager (MM). A survey of several <br />Orange County cities indicated that each of these job classifications is over - compensated in this <br />labor market. Further, a compensation analysis completed by an outside consultant earlier this <br />year confirmed the recent data analysis and supported a conclusion that certain middle <br />management job classifications in the City are over-compensated in relation to comparable <br />positions in other agencies. <br />In order to evaluate internal equity, the compensation levels of these three classifications were <br />compared to middle management classes in the City with similar responsibility and authority, and <br />again it was determined that the three classes are over - compensated. As a result, the Executive <br />Director of Personnel Services is proposing a 10% reduction in compensation for the subject job <br />classifications. This adjustment will place these classes at a level standard for many middle <br />management job classifications in the City and will retain a highly competitive compensation <br />structure in the respective professions. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #4 — City Financial Stability, Objective #1, <br />Maintain a stable, efficient and transparent financial environment and Goal #7 — Team Santa Ana, <br />