HomeMy WebLinkAboutItem 11 City Manager Compensation AGENDA ITEM SUMMARY Meeting Date: 7/1/2013
Meeting Type: Regular Meeting
Staff Contact/Dept.: Greta Utecht,
Human Resources
Staff Phone No: 541-726-3787
Estimated Time: Consent Calendar
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: CITY MANAGER COMPENSATION
ACTION
REQUESTED:
Approve Cost of Living Increase of 2.2% for City Manager Gino Grimaldi,
effective May 6, 2013.
ISSUE
STATEMENT:
Following the Council’s positive review of City Manager Gino Grimaldi’s
performance in May 2013, the Council held a work session to determine what, if
any, form of compensation increase should be considered for him. The Council
directed staff to prepare an agenda item that for the July 1, 2013 regular session that
recommends a 2.2% Cost of Living Adjustment (COLA) for the City Manager,
effective retroactive to his performance review date of May 6, 2013.
ATTACHMENTS: 1. Council Briefing Memorandum of May 16, 2013 addressed to the Finance &
Judiciary Committee
2. City Manager Compensation Survey 2013
3. City Manager Compensation Survey 2013 with Proposed COLA
DISCUSSION/
FINANCIAL
IMPACT:
The attached Council Briefing Memorandum describes how four different cost of
living adjustment indices are to be averaged to come up with a percentage that may
be used to determine what, if any, changes might be made to the City Manager’s
compensation package. The percentage average is 2.2%, which was the basis of
discussion.
The Council considered two options: 1) Divide the 2.2 in half and apply 1.1% as a
retroactive COLA to November 2012* and give the remaining 1.1% as lump sum,
one-time payout; or 2) Apply the full 2.2% as a COLA effective May 6, 2013, the
date his performance review was actually completed. Option 1 would cost the City
an additional $3,000 for FY13 above the City Manager’s current compensation and
an additional $1846 each year thereafter; option 2 would cost the City an additional
$615 for FY13 and an additional $3,692 for each full year beginning July 1, 2013.
The Committee asked about what changes were being made to other non-
represented employee compensation packages, and staff reported that an additional
$250 will be deposited in the non-union employees’ Health Reimbursement
Accounts (HRA) effective July 1, 2013, for this year only. Because of IRS rules
regarding HRA accounts, that same amount must be given to the City Manager as
well.
*Mr. Grimaldi’s regular annual review date is November 17, but this year it was
delayed due to use of an external performance evaluation survey tool administered
by the International City/County Management Association
Attachment 1
Page 1 of 1
M E M O R A N D U M City of Springfield
Date: 5/16/2013
To: Finance & Judiciary Committee
COUNCIL
From: Greta Utecht, Human Resources Director
BRIEFING
Subject: City Manager Compensation
MEMORANDUM
ISSUE: As a result of the Council’s May 6, 2013 highly favorable performance review of the
City Manager, Council has directed staff to convene the Finance & Judiciary Committee in order
to review Gino Grimaldi’s compensation.
COUNCIL GOALS/
MANDATE:
Provide Financially Responsible and Innovative Government Services
Prior to 2012 when Mr. Grimaldi’s contract was changed, his salary was indexed to increases
received by other employees. By removing that link, the Council is able to evaluate the City
Manager’s compensation package independently and not be influenced by what has been
bargained or agreed to for other employees.
BACKGROUND: According to Gino Grimaldi’s employment contract, each February the
City’s Human Resources Department will average the percentages from four different index
sources to determine what, if any, amount of salary or cost of living adjustment to recommend to
the City Council.
The four indices that will be averaged are: The CPI-W index for Portland-Salem; the cost of
living index for Social Security benefits, the national salary index for public administrators and
the Western Region officer/exempt executive index. The following table lists those indices, and
the overall average.
Attached is also the most recent compensation survey of other City Managers in similar sized
Oregon cities. Despite the fact that his salary has not been adjusted since 2008, it remains well
within the market.
Portland-Salem CPI-W for 2012 1.8
Social Security Cost of Living Adjustment 2012 1.7
Public Administrators National Index 2012 2.2
Western & Oregon Officers/Executives 3.1
Average: 2.2%
RECOMMENDED ACTION: Staff recommends that the Finance & Judiciary Committee
review the attached information, as well as considering the very high review Mr. Grimaldi
received earlier this month. If the committee believes that a compensation adjustment is
warranted, staff recommends that a one-time, lump sum bonus be forwarded to the Council for
consideration..
CITY MANAGER
COMPENSATION SURVEY 2013 (6/24/2013)
Attachment 2
Page 1 of 1
Population Salary as
of 5/2013
Deferred
Comp
Auto/IT
Stipend Other
PERS
Pickup TOTAL
Albany50,710$127,956$12,796$4,320$7,677$152,749 No salary increase in 2011, $300/month car $60/month
cell, 10% to deferred comp, 6% PERS
Bend77,455$155,298$4,560$9,318$169,176
The City covers the deductible, $2000/individual
$4000/family. If deductible not met, unused amount
deposited in VEBA. $300 per/month car allowance $80
per/month cell phone: severance inc to 9 mths with 9
mths COBRA
Corvallis55,055$140,004$5,000$145,004
Eugene158,335$182,561$14,000$6,480$7,022$11,342$221,405$500 /month car allowance $40 /month cell phone;
Other= ability to cash out 2 wks vacation
Grants Pass34,740$118,000$6,600$7,080$131,680 VEBA - if chosen, $234/mo
Gresham105,970$136,944$6,000$1,368$8,217$152,529 Waived VEBA - gets 1% of annual salary ($114/month)
as an additional allowance
Hillsboro92,550$164,875$11,760$4,500$181,135
$375 /month car allowance. VEBA is 2% of base salary.
Deferred Comp contribution instead of PERS. Medical is
Kaiser composite rates. 10 paid days of Administrative
leave + 2 personal days to be used as manager deems
appropriate during the calendar year
Oregon City32,211$163,800$5,733$1,250$9,903$180,686
Salary linked to other depaartment director COLAs & has
merit pay component. Def comp = 3.5% w/ EE match.
Full cost of smart phone & monthly svc.
Lake Oswego36,770$180,000$10$180,010 Data for interim- later changed upon Council vote.
$10/Cell phone per month. $15k/mo
Medford75,545$145,008$5,580$8,700$159,288
Sick leave above 960 hrs contributed at 50% to HRA-
VEBA acct. Severance provides one month of salary for
each year of service, up to 6 months
Tigard48,695$134,030$6,702$22,445$163,177
No PERS: City contributes 11% of salary (14,743/year),
employee contributes $0. $1000 allowance provided for
purchase of addit life ins or long term care or both
Springfield**59,840$147,110$5,884$5,100$5,658$9,472$173,225
Includes $1300 tech stipend, $4800 mileage and $5658
for 80 hrs floating holiday that can be sold or used as
vacation time each year. Does not accrue.
Average$149,861$9,332$4,911$7,711$8,891$166,985
Median $145,008$9,231$5,070$4,195$8,700$163,177
**Springfield City's Manager has received total of 3% increase since 5/1/2006, while CPI_W Portland-Salem
has increased by 16.5% in same period. Last increase was 7/1/2008. CPI-W Portland increase since 7/1/2008
= 9.6%.
City Manager Compensation Survey (7/1/2013)
Attachment 3
Page 1 of 1
Population Salary as
of 5/2013
Deferred
Comp
Auto/IT
Stipend Other
PERS
Pickup TOTAL
Albany50,710$127,956$12,796$4,320$7,677$152,749 No salary increase in 2011, $300/month car $60/month
cell, 10% to deferred comp, 6% PERS
Bend77,455$155,298$4,560$9,318$169,176
The City covers the deductible, $2000/individual
$4000/family. If deductible not met, unused amount
deposited in VEBA. $300 per/month car allowance $80
per/month cell phone: severance inc to 9 mths with 9
mths COBRA
Corvallis55,055$140,004$5,000$145,004
Eugene158,335$182,561$14,000$6,480$7,022$11,342$221,405$500 /month car allowance $40 /month cell phone;
Other= ability to cash out 2 wks vacation
Grants Pass34,740$118,000$6,600$7,080$131,680 VEBA - if chosen, $234/mo
Gresham105,970$136,944$6,000$1,368$8,217$152,529 Waived VEBA - gets 1% of annual salary ($114/month)
as an additional allowance
Hillsboro92,550$164,875$11,760$4,500$181,135
$375 /month car allowance. VEBA is 2% of base salary.
Deferred Comp contribution instead of PERS. Medical is
Kaiser composite rates. 10 paid days of Administrative
leave + 2 personal days to be used as manager deems
appropriate during the calendar year
Oregon City32,211$163,800$5,733$1,250$9,903$180,686
Salary linked to other depaartment director COLAs & has
merit pay component. Def comp = 3.5% w/ EE match.
Full cost of smart phone & monthly svc.
Lake Oswego36,770$180,000$10$180,010 Data for interim- later changed upon Council vote.
$10/Cell phone per month. $15k/mo
Medford75,545$145,008$5,580$8,700$159,288
Sick leave above 960 hrs contributed at 50% to HRA-
VEBA acct. Severance provides one month of salary for
each year of service, up to 6 months
Tigard48,695$134,030$6,702$22,445$163,177
No PERS: City contributes 11% of salary (14,743/year),
employee contributes $0. $1000 allowance provided for
purchase of addit life ins or long term care or both
Springfield**59,840$150,346$6,014$5,100$5,783$9,674$176,917
Includes $1300 tech stipend, $4800 mileage and $5658
for 80 hrs floating holiday that can be sold or used as
vacation time each year. Does not accrue.
Average$149,861$9,332$4,911$7,711$8,891$166,985
Median $145,008$9,231$5,070$4,195$8,700$163,177
**Springfield City's Manager received 3% COLA 7/1/2008 and 2.2% COLA effective 5/6/2013. IT Stipend of
$1300 in 2012, Def Comp changed from flat amt to 4% in 2012,