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3 <br /> several different issues but is primarily due to the absence of a mechanism to move existing <br /> employees forward in the salary plan. Compression was also caused by structural issues within <br /> the current classification plan and lack of a strong pay philosophy across hiring managers. <br /> The County Manager's Recommended Operating Budget for FY 2016-17 is expected to include <br /> a recommendation to begin addressing salary compression. <br /> Meritorious Service Awards <br /> The Code of County Ordinances Section 28-61 provides a program of Meritorious Service <br /> Awards to financially reward employees whose work performance and accomplishments are <br /> exceptional or superior. Section 28-61 (c) provides that the award amount is subject to the <br /> Board of Commissioners' annual approval of funding. It also establishes award levels at $1,500 <br /> for exceptional performance and $750 for superior performance. The performance incentives <br /> are paid as one-time payment which does not become a part of an employee's annual base <br /> salary. <br /> The current Meritorious Service Award program is being administered using three award tiers. <br /> The current program recognizes exceptional performance with a $1,000 payment and superior <br /> and proficient performance with a $500 payment. As currently administered, the ordinance and <br /> current practice are not aligned. <br /> The County Manager's Recommended Operating Budget for FY 2016-17 is expected to address <br /> these inconsistences and make the award levels more granular. <br /> FINANCIAL IMPACT: The financial impact for health insurance will either remain flat or <br /> decrease. No financial impact for dental insurance is recommended. If approved by the Board, <br /> all costs including a compression adjustment and changes to the meritorious service award <br /> program will be part of the Manager's Recommended FY 2016-17 budget. <br /> SOCIAL JUSTICE IMPACT: The following two Orange County Social Justice Goals are <br /> applicable to this agenda item: <br /> • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND <br /> INEQUITY <br /> The fair treatment and meaningful involvement of all people regardless of race or color; <br /> religious or philosophical beliefs; sex, gender or sexual orientation; national origin or <br /> ethnic background; age; military service; disability; and familial, residential or economic <br /> status. <br /> • GOAL: ENSURE ECONOMIC SELF-SUFFICIENCY <br /> The creation and preservation of infrastructure, policies, programs and funding necessary <br /> for residents to provide shelter, food, clothing and medical care for themselves and their <br /> dependents. <br /> RECOMMENDATION(S): The Manager recommends that the Board receive the report in an <br /> effort to inform future decisions on a Third Party Administrator and the inclusion of compression <br /> adjustments and service award changes as part of the Manager's Recommended FY 2016-17 <br /> budget. <br />