HomeMy WebLinkAboutItem 01 City Manager Compensation 2016 AGENDA ITEM SUMMARY Meeting Date: 6/6/2016
Meeting Type: Work Session/Reg. Mtg
Staff Contact/Dept.: Greta Utecht, Human Resources Director
Staff Phone No: 541-726-3787
Estimated Time: 30 minutes/Consent 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 2016
ACTION
REQUESTED:
Work Session: Discuss City Manager Compensation
Regular Meeting: Move to approve adjusting the salary of the City Manager by 3% effective November 1, 2015.
ISSUE STATEMENT: According to City Manager 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. In addition, Human Resources staff completed a survey of comparable agencies. Results of the survey and the average
of the indices are attached and reflect the justification for a 3% salary adjustment
for Mr. Grimaldi.
ATTACHMENTS: 1. Council Briefing Memorandum of May 27, 2016. 2. City Manager Compensation Survey April 2016
DISCUSSION/
FINANCIAL IMPACT:
The following table lists the indices used, and their overall average.
Currently, Mr. Grimaldi’s total compensation package is 3.70% below the average of comparable agencies with no geographic differential calculations applied.
(Geographic differential factors help us compare the cost of labor in another community or region and have been used in other recent market surveys, specifically those prepared for non-Union, SEIU, IAFF and AFSCME employee
groups.) When the geographic differential factors are applied, Mr. Grimaldi’s total compensation package is approximately .94% below average. If a 3.0% adjustment
were made to his salary, it would result in a base salary of $157,959 and an overall increase of $5,260. Based on the attached compensation survey, that adjustment
would put his total compensation approximately .78% below average without
geographic factoring and 1.90% above average with the geographic factors applied. Assuming any adjustment would be implemented June 1, retroactive costs to
November 1 2014 would be $2,718 for a 3% adjustment.
The City Manager recently received a very favorable performance review from the City Council and from those who report directly to him. In addition, he has re-
structured the City Manager’s Office to better reflect and respond to the Council’s
goals. As a result of the reorganization, Mr. Grimaldi will have more direct reports, and more direct oversight of City-wide operations. Given the financial analysis,
combined with his excellent performance evaluation and greater work load
expectations, staff recommends a 3% salary increase.
Portland-Salem CPI-W for 2015 1.1
Social Security Cost of Living Adjustment 2015 0
Public Administrators National Index 2015 3.1
Western & Oregon Officers/Executives 2015 3.2
Average: 2.02%
M E M O R A N D U M City of Springfield
Date: 5/31/2016
To: Mayor and City Council COUNCIL
From: Greta Utecht, Human Resources Director BRIEFING
Subject: City Manager Compensation 2016 MEMORANDUM
ISSUE: According to City Manager 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. In addition, Human Resources staff completed a survey of comparable
agencies. In light of this information, Human Resources staff proposes that Mr. Grimaldi be
granted a 3% salary adjustment.
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.
Attachment 1 reflects the most recent compensation survey of other City Managers in similar sized Oregon cities and those agencies with which we compete for employees.
Mr. Grimaldi’s performance evaluation is normally completed in November but due to the use of a different format, was not completed until April 2016. Moving forward, the Council will
perform Mr. Grimaldi’s evaluation in November, and his compensation will be reviewed the following February, in order to have the results from the above indices. Any adjustments to his compensation will be retroactive to the preceding November. In addition, any compensation
adjustment will take his review and success in meeting Council goals into account. Mr. Grimaldi received a 2% salary adjustment for 2015.
Portland-Salem CPI-W for 2014 1.1
Social Security Cost of Living Adjustment 2014 0
Public Administrators National Index 2014 3.1
Western & Oregon Officers/Executives 2014 3.2
Average: 2.02%
Attachment 1 Page 1 of 2
Currently, Mr. Grimaldi’s total compensation package is 3.70% below the average of
comparable agencies with no geographic differential calculations applied. (Geographic
differential factors help us compare the cost of labor in another community or region and have been used in other recent market surveys, specifically those prepared for non-Union, SEIU,
IAFF and AFSCME employee groups.)
When the geographic differential factors are applied, Mr. Grimaldi’s total compensation package is approximately .94% below average. If a 3.0% adjustment were made to his salary, it would
result in a base salary of $157,959 and an overall increase of $5,260. Based on the attached
compensation survey, that adjustment would put his total compensation approximately .78% below average without geographic factoring and 1.90% above average with the geographic
factors applied. Assuming any adjustment would be implemented June 1, retroactive costs to November 1 2014 would be $2,718 for a 3% adjustment.
The City Manager recently received a very favorable performance review from the City Council
and from those who report directly to him. In addition, he has re-structured the City Manager’s Office to better reflect and respond to the Council’s goals. As a result of the reorganization, Mr. Grimaldi will have more direct reports, and more direct oversight of City-wide operations.
Given the financial analysis, combined with his excellent performance evaluation and greater work load expectations, staff recommends a 3% salary increase.
RECOMMENDED ACTION: Staff recommends that the City Council review the attached information, and consider a 3% salary adjustment retroactive to November 1, 2015.
Population Salary as
of 4/2016
Deferred
Comp
Auto/IT
Stipend
Other
6%
PERS
Pickup
TOTAL W/O
GEO DIFF
TOTAL W/
GEO DIFF NOTES
Albany 51,670 $137,796 $18,602 $8,268 $164,666 $165,868 13.5% to deferred comp, 6% PERS; CM chooses NOT to take $300 @ month car allowance.
Bend 78,280 $171,314 $4,560 $10,279 $186,153 $185,725 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
Corvallis 57,390 $153,000 $9,180 $540 $10,537 $173,257 $171,472 DC now at 6%; goes to 8% on 11/1/2016
Eugene 159,190 $208,457 $27,000 $6,480 $8,017 $12,896 $262,850 $261,799 $500 /month car allowance $40 /month cell phone; Other= ability to cash out 2 wks vacation.
OPSRP - No 6% on deferred comp or vacation pay out.
Grants Pass 36,465 $133,780 $0 $0 $4,013 $8,268 $146,061 $151,129 VEBA - $234/mo ($2,808 Annually), all leave to accrue w/out limitation.
Gresham 107,065 $157,080 $6,000 $1,571 $9,425 $174,076 $161,925 Waived VEBA - gets 1% of annual salary ($130.92/month) as an additional allowance added to
his $500/month car allowance thru Payroll
Hillsboro 97,368 $193,995 $11,760 $5,400 $3,880 $0 $215,035 $200,348
$375 /month car allowance and $75/month cell phone stipend. VEBA is 2% of base salary (in "other" column). 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. NO PERS PICK UP.
Oregon City 33,940 $172,104 $6,024 $1,250 $6,354.61 $11,144 $196,877 $184,513 Salary linked to other department director COLAs & has merit pay component. Merit pay for 2015
was $8605. Def comp = 3.5% w/ EE match. Full cost of smart phone & monthly svc. HRA VEBA
=1%; cash out of up to 7 days vacation.
Lake
Oswego 36,770 $159,869 $7,993 $4,800 $10,360 $183,022 $169,515 $400 car allowance, 5% match deferred comp
Lane
County $167,482 $16,748 $7,560 $6,442 $11,894 $210,126 $209,285 $6,720 car allowance,$840 data plan stipend; sell back of 80 hrs vacation;
Medford 75,920 $145,008 $2,755 $6,780 $5,075 $9,273 $168,891 $171,627 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
Tigard 50,000 $166,687 $8,334 $4,000 $1,960 $0 $180,982 $168,621
No PERS: City contributes 11% of salary/year to 401A Retirement -- not shown, EE contributes
$0 it is not a match to show the 11% as PERS Pick-up, only if you put the ER and EE PERS contribution in would it be an appropriate comparison. $1000 provided for purchase of addit life
ins or long term care or both, 5% City Paid Deferred Comp, $50/Mo into City Paid VEBA, cell
30/mo
Average $163,881 $10,840 $4,306 $4,664 $11,021 $188,500 $183,486
Springfield
Current $153,358 $6,134 $6,100 $5,898 $10,289 $181,780 $181,780 Includes 4% deferred comp, $1300 tech stipend, $4800 mileage. Other $5898 for 80 hrs floating holiday that can be sold or used as vacation time each year. Does not accrue.
-3.70%Below average with no geographic differential calculations
-0.94%Below average with geographic differential calculations
Attachment 2
Page 1 of 2
OPTIONS
Springfield
with 1%
Increase
$154,883 $6,195 $6,100 $5,957 $10,388 $183,523 $183,523 Annual total cost of increase = $1743; retro cost to Nov 2015 = $1016
-2.71%Below average with no geographic differential calculations
0.02%Above average with geographic differential calculations
Springfield
w/ 2%
Increase
$156,416 $6,257 $6,100 $6,016 $10,487 $185,276 $185,276 Annual total cost of increase = $3496; retro cost to Nov 2015 = $2039
-1.74%Below average with no geographic differential calculations
0.97%Above average with geographic differential calculations
Springfield
w/ 3%
Increase
$157,959 $6,318 $6,100 $6,075 $10,587 $187,040 $187,040 Annual total cost of increase = $5259; retro cost to Nov 2015 = $3068
-0.78%Below average with no geographic differential calculations
1.90%Above average with geographic differential calculations
Attachment 2
Page 2 of 2