HomeMy WebLinkAboutItem 01 City Manager Compensation AGENDA ITEM SUMMARY Meeting Date: 6/25/2018
Meeting Type: Work Session/Reg. Mtg
Staff Contact/Dept.: Chaim Hertz/HR Staff Phone No: 541-726-3787
Estimated Time: 15 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 2018
ACTION REQUESTED:
Work Session: Discuss City Manager Compensation
Regular Meeting: Move to approve adjusting the salary of the City Manager by 3%
effective July 1, 2018.
ISSUE STATEMENT:
(1) Gino Grimaldi’s employment contract requires HR to meet with City Council
near the end of the fiscal year with the intent of submitting a recommendation
regarding a salary or cost of living adjustment. (2) Gino Grimaldi’s employment contract requires HR to review four different cost
of living indexes as part of its wage recommendation. One of these indexes is
expiring and replacement options should be considered.
ATTACHMENTS: 1. ATT1 Salary Indexes for Comparison 2. ATT2 CM Compensation Survey April 2018
DISCUSSION/
FINANCIAL IMPACT:
(1) According to Mr. Grimaldi’s contract, Human Resources averages four indexes
to determine what, if any, amount of salary or cost of living adjustment to recommend to City Council (ATT1). The overall average of these indices is 2.98%. Though not required by contract, HR also reviews the compensation of other City
Managers in similar sized Oregon cities and those agencies with which we compete for employees (ATT2). This data gives us a benchmark to measure Mr. Grimaldi’s
wage. According to the salary survey, Mr. Grimaldi’s total compensation package
is currently 0.95% below average after adjusting for cost of labor (geographic differential).
Considering the comparable market and the index information, a 3% adjustment
results in an overall increase of $4,850 annually, and places total compensation 1.89% above comparable market positions. (2) According to Section 5 of the City Manager’s contract, HR staff utilizes 4
different index sources to determine salary recommendations to Council. The
Bureau of Labor Statistics discontinued the CPI-W Portland-Salem region in February of this year. We are able to utilize for this recommendation, but we need
guidance in determining whether to move forward with the three (3) remaining indexes or selecting another to replace this one. Alternative indexes might include the CPI-U (All Urban Consumers) or the CPI-W
(Urban Wage Earners and Clerical Workers). The CPI-W is a subset of the CPI-U
representing about 30% of the population. It aligns to clerical workers and is used by the Social Security Administration.
Recommended Action:
(1) Staff recommends City Council review the attached information and consider a 3% salary adjustment effective July 1, 2018. (2) Staff requests authority to work with Mr. Grimaldi to sign an addendum to his
contract, replacing the Portland-Salem CPI-W Western Region Urban.
Salary Indexes for Comparison
National Public Administrators 2017 3.00%
Western & Oregon Officers/Executives 2017 3.00%
Consumer Price Index Urban Portland/Salem 2017 3.90%
Social Security Index 12/2017, payable 2018 2.00%
Average 2.98%
Attachment 1, Page 1 of 1
Agency Population Salary as of
4/2018
Deferred
Comp
Auto/IT
Stipend Other 6% PERS
Pickup
TOTAL W/
GEO DIFF NOTES
Albany 52,710 $153,456.00 $5,371 $3,600 $960 $9,207 $172,767 $22342 in annual VEBA/HRA and ER medical contribution less EE med contributions.
Deferred Comp - 3.5%, $80 monthly for cell phone stipend
Bend 87,014 $176,453.06 $6,000 $3,600 $960 $10,861 $196,884 $15076 in annual VEBA/HRA and ER medical contribution less EE med contributions.
Other: cell phone $80/mo; Deferred comp - $500/month
Corvallis 58,735 $177,154.43 $14,172 $540 $1,772 $10,629 $200,387 $45/mo Tech stipend, no auto, mileage reimbursed; Other: 1% Wellness Incentive to
retirement RHSP; and HSA Contribution to current ees: $1500 or $3000 for family coverage
(not included in totals)
Eugene 167,780 $214,947.00 $27,000 $6,480 $0 $14,906 $262,543
Grants
Pass 37,135 $150,649.00 $2,260 $0 $0 $9,175 $165,811 $19,176 in annual VEBA/HRA and ER medical contribution less EE med contributions.
Option to cash out unlimited vacation accrual (Other: 200 hours)
Gresham 109,820 $175,476.00 $0 $6,000 $1,755 $10,994 $181,212 Waived VEBA, gets 1% annl salary as addl income. $500/mo car allowance which is factored
into the 6% PERS contribution
Hillsboro 101,540 $206,858.16 $15,960 $4,500 $900 $0 $213,156 2% to HRA/VEBA; Other: CellPhone $75/mo
EE pays own 6% to PERS
Lake
Oswego 37,490 $176,259.12 $8,813 $4,800 $0 $10,576 $186,416 Medical/Dent/Vis - EE contributes $152.12 per month for EE + spouse coverage; City pays
$1,919.35 per month (it’s a composite rate) No VEBA for CM and Cell ohone
Medford 80,024 $170,000.00 $1,700 $6,000 $780 $10,709 $190,324 $500/mo auto, $65/mo phone; $350/mo VEBA
$23367 in annual VEBA/HRA and ER medical contribution less EE med contributions.
($1575ER/$61/EE)
Oregon
City 34,240 $147,084.00 $13,635 $4,200 $900.00 $9,131 $164,103 $22,000 in annual VEBA/HRA and ER medical contribution less EE med contributions.Other: cell phone $75/mo
Tigard 51,253 $172,944.00 $8,647 $4,000 $360 $19,024 $190,627 $1467/mo Med/Dental ER contribution; 50/mo VEBA/HRA ER contribution; Other: cell phone
$30/mo; Tigard is not a PERS agency and our plan has no EE pick-up, City pays full 11% on
the retirement plan $19,023/annually; 7/1/18: 2.8% COLA
Lane
County 374,748 $195,852.80 $19,585 $7,380 $624 $13,407 $236,138 Includes 10% 401a.; 6% PERS pick-up and other PERS; $545 vehicle allowance, $70 cell and
data stipend; parking $52/mo.
Average $176,428 $10,262 $4,258 $751 $11,502 $193,112
*PERS calculation includes previous columns
Springfield
Current
2018 Info
60,655 $161,678 $6,467 $6,100 $6,218 $10,828 $191,291
$17096 in annual VEBA/HRA and ER medical contribution less EE med contributions.
Includes 4% deferred comp, $1300 tech stipend, $4800 mileage. Other $6218 for 80 hrs
floating holiday that can be sold or used as vacation time each year. Does not accrue.
Attachment 2, Page 1 of 2
-0.95%Below average with geographic differential calculations
OPTIONS
1% Increase $163,295 $6,532 $6,100 $6,281 $10,932 $193,140
0.01%Above average with geographic differential calculations
2% Increase $164,912 $6,596 $6,100 $6,343 $11,037 $194,988
0.96%Above average with geographic differential calculations
3% Increase $166,528 $6,661 $6,100 $6,405 $11,142 $196,836
1.89%Above average with geographic differential calculations
Increase to Base
1% Increase $1,617
2% Increase $3,234
3% Increase $4,850
Attachment 2, Page 2 of 2