December 13, 2004

TO:    Mayor Vera Katz

Commissioner Jim Francesconi

Commissioner Randy Leonard

Commissioner Dan Saltzman

Commissioner Erik Sten

Auditor Gary Blackmer

FROM:  Yvonne L. Deckard

   Director, Bureau of Human Resources

SUBJECT:  Amendment to HR Administrative Rule 8.04-Compensation

The attached ordinance would amend HR Administrative Rule 8.04-Compensation to provide Council Members with the same flexibility to adjust a bureau director’s salary, within the pay range, as they have with their own staff.

Background

Under HR Administrative Rule 8.04, the staffs of each Council Member, the City Attorney, and all non-represented staff in the City Attorney’s office are compensated in an open range. The rule further allows a commissioner, for their staff, and the City Attorney for her non-represented employees, to designate or change an employee’s salary, within the pay range, at any time. Although Bureau Directors are also compensated in an open range, as are other non-represented employees, their rate of pay within the pay range can only be adjusted at initial appointment or anniversary date and the maximum increase they can receive in any one year is 4.1%. (There are some exceptions to this provision in the rule, but they are quite specific and generally require a substantial expansion of job responsibilities or a bonafide retention issue).

Commissioner Leonard requested an adjustment of BOEC Director Carl Simpson’s salary to the top of the pay range on Mr. Simpson’s anniversary date, due to his exemplary performance. The Bureau of Human Resources could not approve that request, however, due to the limitations in Rule 8.04, as described above.

Ordinance

The ordinance changes Rule 8.04 to provide the flexibility to Council Members to adjust the salary of a bureau director within the pay range at any time. The adjustment must

be upward only and in recognition of exemplary performance as documented in a

performance review submitted to the Bureau of Human Resources. Although there is no direct financial impact as the pay adjustment must be within the pay range, any increase over 4.1% in a fiscal year is above the amount budgeted for personal services. Consequently, the impacted bureau would have to have the ability to pay for any increase greater than 4.1%.

Cc:  T. Grewe

A. Kanwit

 Bureau Directors

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