HomeMy WebLinkAboutItem 04 City Manager Compensation 2016-2017 AGENDA ITEM SUMMARY Meeting Date: 6/26/2017
Meeting Type: Work Session/Reg. Mtg
Staff Contact/Dept.: Chaim Hertz, 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 2016-2017
ACTION
REQUESTED:
Work Session: Discuss City Manager Compensation
Regular Meeting: Move to approve adjusting the salary of the City Manager by 2.36% effective July 1, 2017.
ISSUE STATEMENT: (1) 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 completes a survey of comparable agencies. Results of the survey
and the average of the indices are attached and reflect the justification for a 2.36%
salary adjustment for Mr. Grimaldi. (2) Discuss restructuring the timelines for evaluation and wage adjustments to
better align with fiscal year objectives and reduce the likelihood of retroactive wage increases.
ATTACHMENTS: 1. ATT1 CM Compensation 2017-CBM 2. ATT2 City Manager Compensation Survey May 2017
DISCUSSION/
FINANCIAL IMPACT:
(1) The Human Resources Department has averaged the percentages from four
different index sources described in the attached CBM and has determined the average to be 2.36%. Along with this average, HR has conducted a compensation
package survey of comparable agencies and has determined that Mr. Grimaldi’s
current compensation package is 1.06% below average (including geographic factors). These numbers are used in determining what, if any, amount of salary or
cost of living adjustment to recommend to the City Council.
(2) The HR Director is also recommending a change in when compensation
changes are applied to Mr. Grimaldi’s pay and the review period for his performance evaluation. Currently, compensation is retroactively adjusted back to November of the previous year to match the timeframe for his evaluation. Given
that achievements of the City directly relate to Mr. Grimaldi’s performance and that those achievements are based on a budget/fiscal year, HR is recommending that
annual compensation changes be applied in July instead of back to November.
The City Manager recently received a very favorable performance review from the
City Council and from those who report directly to him. Given the financial
analysis, combined with his excellent performance evaluation and greater work load expectations, and estimating for a delayed application of compensation, staff
recommends a 2.36% salary increase to be effective July 1, 2017 , with a one-time
lump sum payout to cover retroactive costs back to November of $2,485.
Attachment 1 Page 1 of 2
M E M O R A N D U M City of Springfield
Date: 6/19/2017
To: Mayor and City Council COUNCIL
From: Chaim Hertz, Human Resources Director BRIEFING
Subject: City Manager Compensation 2016/2017 MEMORANDUM
ISSUE:
(1) 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 completes a survey of comparable agencies. Results of the survey and the
average of the indices are attached and reflect the justification for a 2.36% salary adjustment for Mr. Grimaldi.
(2) Discuss restructuring the timelines for evaluation and wage adjustments to better align with fiscal
year objectives and reduce the likelihood of retroactive wage increases.
COUNCIL GOALS/
MANDATE:
Provide Financially Responsible and Innovative Government Services
BACKGROUND: (1) 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 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 & Oregon
officer/exempt executive index. The following table lists those indices, and the overall average.
Portland-Salem CPI-W for 2016 1.70%
Social Security Cost of Living Adjustment 2016 0.30%
Public Administrators National Index 2016 3.40%
Western & Oregon Officers/Executives 2016 3.20%
Average: 2.36%
Attachment 2 reflects the most recent compensation survey of other City Managers in similar sized
Oregon cities and those agencies with which we compete for employees. Although it’s not required in his current contract for the purposes of calculating wage increases, the data gives a benchmark to
measure Mr. Grimaldi’s wage in comparison to other City Manager positions.
According to this salary survey, Mr. Grimaldi’s total compensation package is 3.35% below the average
of comparable agencies with no geographic differential calculations applied. When the geographic
differential factors are applied, Mr. Grimaldi’s total compensation package is approximately 1.06% below average. These factors help us compare the cost of labor in other communities and regions to
help adjust for location and relationship to larger and smaller labor markets.
Per the contract, a 2.36% adjustment results in a base salary of $161,683 and an overall increase of
$3,728. Based on the attached compensation survey, that adjustment would put his total compensation approximately 1.04% below average without geographic factoring and 1.19% above average with the
geographic factors applied. Assuming the adjustment would be implemented July 1, retroactive costs back to November 1, 2016, would be $2,485.
(2) Mr. Grimaldi’s current employment contract was signed in November of 2005 and amended in 2012
to break the link between non-union pay adjustments and this position’s compensation. The current contract mandates that performance evaluations for Mr. Grimaldi are effective annually in November.
The contract does not dictate when the compensation is effective, but in the past it has been retroactively applied to November which aligns with his hire date.
As they currently occur, Mr. Grimaldi’s compensation changes and evaluation periods result in confusion and avoidable administrative burden.
1. Administrative difficulty in retroactively applying compensation changes to November for
taxes, deferred compensation and retirement programs. 2. Because the contract is silent, adding clarifying language changes to specify when compensation
adjustments are applied will decrease confusion.
3. The evaluation period described in the contract is no longer in line with the performance review received. The criteria used in evaluating Mr. Grimaldi’s performance including goal setting has
moved towards fiscal year achievements.
RECOMMENDED ACTION: (1) Staff recommends that the City Council review the attached information and consider a 2.36% salary adjustment to become effective July 1, 2017, with a one-time lump sum payout to cover retroactive costs back to November of $2,485.
(2) Staff requests authority to work with Mr. Grimaldi to sign a new employment contract aligning both his compensation changes and evaluation periods to match the fiscal year.
PopulationSalary as of 3/2017Deferred CompAuto/IT StipendOther6% PERS PickupTOTAL W/O GEO DIFFTOTAL W/ GEO DIFFNOTESAlbany51,670 $153,456.00 $5,371 $3,600 $9,746 $172,173 $179,920$19764 in annual VEBA/HRA and ER medical contribution less EE med contributions. Deferred Comp - 3.5%, no mention of cell phone stipendBend87,014 $176,453.06 $0 $0 $960 $10,645 $188,058 $187,494$15076 in annual VEBA/HRA and ER medical contribution less EE med contributions. Other: cell phoneCorvallis58,240 $163,863.00 $13,109 $540 $1,639 $10,749 $189,900 $186,482$45/mo Tech stipend, no auto, mileage reimbursed; Other: 1% Wellness Incentive to retirement HAS; HRA Contribution to current ees: $1500 or $3000 for family coverageEugene163,460 $214,947.00 $27,000 $6,480 $14,906 $263,333 $262,279Grants Pass36,465 $143,278.00 $2,149 $0 $13,777 $9,552 $168,756 $173,650$17848.80 in annual VEBA/HRA and ER medical contribution less EE med contributions. Option to cash out unlimited vacation accrual (Other: 200 hours)Gresham107,065 $157,080.00 $0 $6,000 $1,571 $9,879 $174,530 $163,534Waived VEBA, gets 1% annl salary as addl income. $500/mo car allowanceHillsboro97,368 $201,813.00 $11,760 $4,500 $900 $0 $218,973 $205,1782% to HRA/VEBA; Other: CellPhoneEE pays own 6% to PERSLake Oswego37,610 $167,856.00 $8,393 $4,800 $0 $10,863 $191,912 $179,054$19041 in annual VEBA/HRA and ER medical contribution less EE med contributions. Other: cell phoneLane County358,805 $182,520.00 $18,252 $9,660 $624 $12,663 $223,719 $222,824Includes 7% deferred comp with an additonal match of up to 3% for a total of 10%.; 6% PERS pick-up and other PERS; $535 vehicle allowance, $70 cell and data stipend; parking $52/mo.Medford77,655 $152,000.00 $0 $6,000 $780 $9,527 $168,307 $169,822$23587 in annual VEBA/HRA and ER medical contribution less EE med contributions.Oregon City34,240 $144,204.00 $9,042 $4,200 $900.00 $9,501 $167,847 $158,112$18000 in annual VEBA/HRA and ER medical contribution less EE med contributions.Other: cell phone $75/moTigard51,253 $168,355.00 $8,418 $4,000 $360 $10,868 $192,001 $179,905$13536 in annual VEBA/HRA and ER medical contribution less EE med contributions.Other: cell phoneAverage$168,818.76 $8,624 $4,148 $2,151 $11,025 $193,292 $189,021*PERSCalcincludesallcolumnsSpringfield Current$157,955 $6,318 $6,100 $6,075 $10,587 $187,035 $187,035$17096 in annual VEBA/HRA and ER medical contribution less EE med contributions.Includes 4% deferred comp, $1300 tech stipend, $4800 mileage. Other $6075 for 80 hrs floating holiday that can be sold or used as vacation time each year. Does not accrue.-3.35%BelowaveragewithnogeographicdifferentialcalculationsAttachment 2, Page 1 of 2
-1.06%BelowaveragewithgeographicdifferentialcalculationsOPTIONSSpringfield with 2.36% Increase$161,683 $6,467 $6,100 $6,219 $10,828 $191,297 $191,297-1.04%Belowaveragewithnogeographicdifferentialcalculations1.19%AboveaveragewithgeographicdifferentialcalculationsSpringfield w/ 2% Increase$161,114 $6,445 $6,100 $6,197 $10,791 $190,647 $190,647-1.39%Belowaveragewithnogeographicdifferentialcalculations0.85%AboveaveragewithgeographicdifferentialcalculationsSpringfield w/ 3% Increase$162,694 $6,508 $6,100 $6,257 $10,894 $192,452 $192,452-0.44%Belowaveragewithnogeographicdifferentialcalculations1.78%AboveaveragewithgeographicdifferentialcalculationsSpringfield w/ 4% Increase$164,273 $6,571 $6,100 $6,318 $10,996 $194,258 $194,2580.50%Aboveaveragewithnogeographicdifferentialcalculations2.70%AboveaveragewithgeographicdifferentialcalculationsChangetoBaseRetrotoNovemberChangetoPackageRetrotoNovember2.36% $3,728 $2,485.16 $4,261 $2,840.962.00% $3,159 $2,106.07 $3,611 $2,407.593.00% $4,739 $3,159.10 $5,417 $3,611.394.00% $6,318 $4,212.13 $7,223 $4,815.18Attachment 2, Page 2 of 2