HomeMy WebLinkAboutItem 5f. Approve amendments to Appointed Officials' Compensation Item 5f
Department: Human Resources
Cost Center: 2007
For Agenda of: 4/18/2023
Placement: Consent
Estimated Time: N/A
FROM: Mayor Erica A. Stewart
Prepared By: Nickole Domini, Director of Human Resources
SUBJECT: APPROVE AMENDMENTS TO APPOINTED OFFICIALS’
COMPENSATION
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, amending a Contract of Employment for the City Manager” to
approve an amendment to the City Manager’s employment contract; and
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, amending a Contract of Employment for the City Attorney”
approving amendment to the City Attorney’s employment contract; and
3. Authorize the Mayor to execute amended contracts of employment with the City
Manager, adjusting his salary and deferred compensation contribution , and approve
mediation training for the City Attorney.
POLICY CONTEXT
The appointed officials’ evaluations were conduc ted in accordance with the Appointed
Officials Evaluations Guide (Attachment E). The recommendations in this report are
consistent with the Council adopted Compensation Philosophy.
DISCUSSION
Background
In 1999, Council implemented a structured annual evaluation process to formally review
the performance of its two appointed officials, the City Manager and City Attorney. The
process is facilitated by a consultant who collects Council input on appointed of ficials’
performance and their progress in achieving Council-adopted goals, typically in March or
April of each year. This process also includes review and consideration of changes to the
appointed officials’ compensation and benefits.
Page 189 of 821
Item 5f
Council met with the consultant in closed session on March 2, 2023, to discuss the
appointed officials’ performance. Council concluded that the appointed officials had met
or exceeded performance expectations in all categories, accomplished the 2022 -23 goals
provided by Council, and were eligible for a compensation review.
Upon examination of the compensation review, the City Manager’s current effective salary
is approximately three and a half (3.5%) percent below the median of the comparison
agencies and the City Attorney’s current salary is approximately two (2%) percent above
the median. Council further evaluated appointed officials’ compensation, carefully
weighing the extraordinary leadership demonstrated by the appointed officials during the
recent flooding emergency, the desire to retain both appointed officials, the leadership,
and skills necessary to navigate complex issues facing the City, and the fiscal
sustainability of the City. Ultimately, Council recommended a three (3%) percent salary
increase for the City Manager effective the first pay period in April 2023, in an effort to
pay the City Manager competitively with the market in accordance with Council adopted
Compensation Philosophy. Council agreed to prioritize the City Attorney’s profession al
development and has approved her request to attend the Straus Institute for Mediation at
Pepperdine University. Tuition for the week-long Institute is approximately $8,000 for the
training and travel expenses and the budget for this training has been in corporated into
the City Attorney’s departmental budget.
Council also evaluated an increase in the City’s contribution to the City Manager’s
deferred compensation from five (5%) to seven (7%) percent, effective the first paycheck
in January 2024, bringing the City Manager’s total compensation (salary and benefits) to
slightly above the comparator agencies.
Public Engagement
Compensation for appointed officials in comparison agencies was considered by Council.
No other public engagement was conducted as appointed officials are appointed and
serve at the will of the Council.
CONCURRENCE
No other departments were asked to review this report as the appointed officials’
evaluations and compensation are the authority of the Council.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes, a contingency fund exists for negotiated increases.
Page 190 of 821
Item 5f
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $1,600 $ $16,000
State
Federal
Fees
Other:
Total $ $1,600 $ $16,000
Providing increases to the City Manager the first full pay period in April 2023 will result in
approximately $1,600 funding needed through the end of the fiscal year, and $16,000
annually ongoing. There is enough funding in existing resources to cover the salary and
benefit costs associated with these increases.
The City Attorney’s Office has added $8,000 to the 2023 -24 budget for her mediation
training, so there is not a net new ask.
ALTERNATIVES
Renegotiate adjustments to the City Manager and City Attorney compensation
based on new or different information. This alternative is not recommended because
this process represents a good faith negotiation between the employees and the Council.
ATTACHMENTS
A – Draft Resolution approving amendments to the City Manager Employment Contract
B – Exhibit A to Attach A (Leg Draft) – City Manager Employment Contract
C – Draft Resolution approving amendment to the City Attorney Employment Contract
D – Exhibit A to Attach C (Leg Draft) –City Attorney Employment Contract
E – Pay for Performance Guide
Page 191 of 821
Page 192 of 821
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT
FOR THE CITY MANAGER
WHEREAS, on September 29, 2017 the City Council approved a contract of
employment appointing Derek Johnson to the position of City Manager; and
WHEREAS, the City Council conducted a performance evaluation of this
appointed official on March 2, 2023, in accordance with the Appointed Officials’
Performance Process as modified in December 2011.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council hereby approves the amended contract of
employment attached hereto as Exhibit A.
Page 193 of 821
Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 2. The City Council shall evaluate the performance of the City Manager
annually.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of __________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 194 of 821
Exhibit A
AMENDED CONTRACT OF EMPLOYMENT WITH
DEREK J. JOHNSON CITY MANAGER
THIS CONTRACT is entered into as of this 18th day of April 2023 by and between the
CITY OF SAN LUIS OBISPO, State of California (hereinafter referred to as "CITY"), and
DEREK J. JOHNSON, a contract employee (hereinafter referred to as" DEREK J. JOHNSON");
WITNESSETH:
WHEREAS, Charter Section 703 provides that the SAN LUIS OBISPO CITY
COUNCIL (hereinafter referred to as "COUNCIL") is responsible for the appointment and
removal of the CITY MANAGER, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the
responsibility for supervision of the CITY MANAGER; and
WHEREAS, the COUNCIL, on behalf of the CITY evaluated the CITY MANAGER and
determined that adjustments to the employment contract were warranted based on an exceptional
evaluation of the full COUNCIL; and
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of DEREK J. JOHNSON is effective September 29, 2017.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of the
COUNCIL to terminate the services of DEREK J. JOHNSON at any time, subject only to
San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 12 of
this Contract.
C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of
DEREK J. JOHNSON to resign at any time from his position with the CITY, subject
only to the provision set forth in Section 13 of this Contract.
Section 2. Duties and Salary.
A. CITY agrees to employ DEREK J. JOHNSON as full-time City Manager of the City to
perform the functions and duties specified in the Charter and Municipal Code and to
perform such other legally permissible and proper duties and functions as the COUNCIL
may from time to time assign.
B. It is recognized DEREK J. JOHNSON is an exempt employee but is expected to engage
in those hours of work that are necessary to fulfill the obligations of the City Manager's
position. The parties acknowledge DEREK J. JOHNSON will not regularly participate in
a formal 9-80 work schedule as is provided to department heads and certain other City
Deleted: December 8, 2020
Page 195 of 821
employees as part of the City's Trip Reduction Incentive Program. However, DEREK J.
JOHNSON is authorized, with appropriate notification to Council, to from time to time
modify his regular work schedule in order to take time off with pay while ensuring
appropriate coverage of his duties as City Manager. Leave pursuant to this provision shall
not be used in lieu of vacation or administrative leave.
C. COUNCIL agrees to pay DEREK J. JOHNSON, for his services rendered pursuant
hereto, a starting annual base salary of $290,290 effective the first full pay period in
April 2023 payable in installments at the same time as the other management employees
of the CITY are paid. In addition, COUNCIL agrees to increase said base salary by the
cost-of-living adjustment approved by the COUNCIL for all CITY management
employees under any successor Management Compensation Resolutions.
Section 3. Benefits.
A. In addition to the salary set forth in Section 2 of this CONTRACT, DEREK J.
JOHNSON shall be entitled to a car allowance of $450 per month, a City contribution of
5.0% of salary to a 401 (a) supplemental retirement plan, the ability to cash out up to
three weeks' vacation once during the calendar year, upon the request of DEREK J.
JOHNSON, and the same benefits as those offered by the CITY to the CITY
MANAGER, in accordance with the Resolution 11316 (2022 Series), Resolution 8661
(1997 series) and any successors. Effective the first paycheck in January 2024, the City’s
contribution towards the 401 (a) supplemental retirement plan shall increase from 5.0%
to 7.0% of salary.
Section 4. Performance Evaluation.
A. Upon appointment to the position of City Manager DEREK J. JOHNSON will assume
the goals established by Council for the former City Manager until such time as DEREK
J. JOHNSON and Council mutually agree on new goals. On or before January 31, 2018,
Council will provide feedback to DEREK J. JOHNSON on performance to goals and
expectations. Further, Council shall conduct an "interim" evaluation by March 30, 2018.
An annual formal Council evaluation will be conducted in March of 2019 in accordance
with the City's Appointed Official Evaluation Process. Consistent with the schedule
outlined above, based on the Appointed Officials Evaluation Process, and subject to
performance as assessed by the COUNCIL, the CITY MANAGER compensation shall be
reviewed by COUNCIL no later than April 2019.
B. Each calendar year thereafter, COUNCIL shall review and evaluate the performance and
compensation of DEREK J. JOHNSON in accordance with the adopted Appointed
Officials Evaluation Process, best management practices, and informed by comparison
agency data.
Deleted: $281,814
Deleted: December 2020
Deleted: 10922
Deleted: 2018
Deleted: A one-time cash out of 107 hours of accrued
vacation effective the first full pay period of April 2019 in
recognition of JOHNSON'S commitment and leadership
and limited ability to use vacation during 2018-19.¶
Page 196 of 821
Section 5. Outside Activities. Conduct and Behavior.
A. DEREK J. JOHNSON shall not engage in teaching, consulting or other non-CITY
connected business without the prior approval of COUNCIL.
B. DEREK J. JOHNSON shall comply with all local and state requirements regarding
conflicts-of-interest.
Section 6. Dues and Subscriptions.
COUNCIL agrees to budget for and to pay for professional dues and subscriptions of
DEREK J. JOHNSON necessary for his continuation and full participation in national, regional,
state, and local associations, and organizations necessary and desirable for his continued
professional participation, growth, and advancement, and for the good of the CITY.
Section 7. Professional Development.
A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of
DEREK J. JOHNSON for professional and official travel, meetings, and occasions
adequate to continue the professional development of DEREK J. JOHNSON and to
adequately pursue necessary official functions for the CITY, including but not limited to
the League of California Cities meetings and conferences, International City/County
Managers' Association and such other national, regional, state, and local governmental
organizations, groups and/or committees.
B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of
DEREK J. JOHNSON for short courses, institutes, and seminars that are necessary for
his professional development and for the good of the CITY.
C. Other professional development may be agreed upon from time to time between the
COUNCIL and DEREK J. JOHNSON.
Section 8. General Expenses.
COUNCIL recognizes that certain expenses of a non-personal and job- affiliated nature
are incurred by the CITY MANAGER, and hereby agrees to authorize the Finance Director to
reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon
receipt of duly executed expense or petty cash vouchers, receipts, statements or personal
affidavits.
Page 197 of 821
Section 9. Indemnification.
In addition to that required under state and local law, CITY shall defend, save harmless,
and indemnify DEREK J. JOHNSON against any claims, demands, causes of actions, losses,
damages, expenses (including but not limited to attorney's fees as may be authorized against
public entities or officers consistent with state law) or liability of any kind whether stated in or
arising from tort, professional liability or any other legal action or equitable theory, whether
groundless or otherwise arising out of an alleged act or omission occurring in the performance of
DEREK J. JOHNSON's duties as CITY MANAGER to the fullest extent permitted by law.
CITY may compromise and settle any such claim or suit and shall pay the amount of any
settlement or judgment rendered thereon.
Section 10. Other Terms and Conditions of Employment.
The COUNCIL, in consultation with DEREK J. JOHNSON, shall fix any such other
terms and conditions of employment, as it may determine from time to time, relating to the
performance of DEREK J. JOHNSON, provided such terms and conditions are not inconsistent
with or in conflict with the provisions of this CONTRACT, the CITY Charter or any other law.
Section 11. No Reduction of Pay and/or Benefits.
COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary,
compensation or other financial benefits of DEREK J. JOHNSON, except to the degree of such a
reduction across-the-board for all employees of the CITY or DEREK J. JOHNSON provides
written consent to the reduction.
Section 12. Termination and Severance Pay.
A. In the event DEREK J. JOHNSON's employment is terminated by the COUNCIL
without cause, or he resigns at the request of a majority of the COUNCIL during such
time that he is otherwise willing and able to perform the duties of CITY MANAGER,
and if DEREK J. JOHNSON signs, delivers to the City Council, and does not revoke, the
General Release Agreement in the form attached hereto as Exhibit A, the COUNCIL
agrees to pay him a lump sum cash payment equal to six (6) months compensation. For
the purposes of this clause "compensation" shall include base salary, car allowance, City
contribution to deferred compensation, and City contribution to health insurance at time
of separation as well as cash out of accrued Administrative Leave and cash out of a
portion of accrued sick leave as if CITY MANAGER was retiring as provided in the
Management Compensation Resolution 10785 (2017 Series) and any successors.
B. In the event that DEREK J. JOHNSON is terminated for "good cause" the COUNCIL
shall have no obligation to pay the lump sum severance payment mentioned above. For
the purpose of this CONTRACT, "good cause" shall mean any of the following:
1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt
misconduct, or conviction of any felony.
2) Conviction of a misdemeanor arising directly out of DEREK J. JOHNSON's
duties pursuant to this Agreement.
Page 198 of 821
3) Willful abandonment of duties outlined in this Agreement.
"Good cause" shall not mean a mere loss of support or confidence by a majority of the
COUNCIL.
C. Any termination of employment shall be done consistent with limitations established in
the City Charter Section 709. Additionally, the CITY shall provide a minimum of 30
days prior written notice to DEREK J. JOHNSON of the intent to terminate this
Agreement.
D. In the event the CITY terminates the CITY MANAGER for any reason or no reason, the
CITY and the CITY MANAGER agree that no member of the COUNCIL, the City
Management staff, nor the CITY MANAGER, shall make any written, oral or electronic
statement to any member of the public, the press, or any city employee concerning the
CITY MANAGER'S termination except in the form of a joint press release or statement,
the content of which is mutually agreeable to the City and the CITY MANAGER. The
joint press release or statement shall not contain any text or information that is
disparaging to either party. Either party may verbally repeat the substance of the joint
press release or statement in response to an inquiry. Nothing herein shall be construed to
prevent the City from referring to or responding to inquiries about third party or outside
agency investigations or actions pertaining to the official performance of the CITY
MANAGER.
Section 13. Resignation.
In the event DEREK J. JOHNSON voluntarily resigns his position with the CITY, he
shall give the COUNCIL at least 45 days advance written notice.
Section 14. General Provisions.
A. The text herein shall constitute the entire CONTRACT between the parties.
B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and
executors of the parties.
C. It is the intent of the COUNCIL that this CONTRACT and the appointment of DEREK J.
JOHNSON as CITY MANAGER are in accordance with the requirements and provisions
of the Charter. Wherever possible, the provisions of this CONTRACT shall be construed
in a manner consistent with the Charter. If any provision of this CONTRACT conflicts
with the Charter, the Charter shall control.
D. If any provision, or any portion thereof, contained in this CONTRACT is held
unconstitutional, invalid or unenforceable, the remainder of this CONTRACT, or portion
thereof, shall be deemed severable, shall not be affected, and shall remain in full force
and effect.
Page 199 of 821
IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and
year first set forth above.
_____________________________ _______________
DEREK JOHNSON DATE
____________________________ ________________
MAYOR ERICA A. STEWART DATE
ATTEST:
____________________________ ________________
TERESA PURRINGTON DATE
CITY CLERK
APPROVED AS TO FORM:
____________________________ ________________
J. CHRISTINE DIETRICK DATE
CITY ATTORNEY
Page 200 of 821
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT
FOR THE CITY ATTORNEY
WHEREAS, on January 2, 2010 the City Council approved a contract of
employment appointing Christine Dietrick to the position of City Attorney; and
WHEREAS, the City Council conducted a performance evaluation of this
appointed official on March 2, 2023, in accordance with the Appointed Officials’
Performance Process as modified in December of 2011.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council hereby approves the amended contract of
employment attached hereto as Exhibit A.
Page 201 of 821
Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 2. The City Council shall evaluate the performance of the City Attorney
annually.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _____________ 2023.
___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________
Sadie Symens
Deputy City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 202 of 821
Exhibit A
AMENDED CONTRACT OF EMPLOYMENT WITH
J. CHRISTINE DIETRICK CITY ATTORNEY
THIS CONTRACT is amended this 18th day of April 2023 by and between the CITY OF
SAN LUIS OBISPO, a municipal corporation and charter city (hereinafter referred to as
"CITY"), and J. CHRISTINE DIETRICK, a contract employee (hereinafter referred to as
"CHRISTINE DIETRICK");
WITNESSETH:
WHEREAS, Charter Section 701 provides that the SAN LUIS OBISPO CITY
COUNCIL (hereinafter referred to as "COUNCIL") is responsible for the appointment and
removal of the CITY ATTORNEY, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the
responsibility for supervision of the CITY ATTORNEY; and
WHEREAS, the COUNCIL is desirous of appointing a CITY ATTORNEY and wishes to
set the terms and conditions of said employment; and
WHEREAS, CHRISTINE DIETRICK desires to continue in her position of CITY
ATTORNEY consistent with certain terms and conditions of said employment, as set forth in
this CONTRACT.
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of CHRISTINE DIETRICK is effective January 1, 2010.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of the
COUNCIL to terminate the services of CHRISTINE DIETRICK at any time, subject
only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in
Section 12 of this Contract.
C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of
CHRISTINE DIETRICK to resign at any time from her position with the CITY, subject
only to the provision set forth in Section 13 of this Contract.
Section 2. Duties and Salary.
A. CITY agrees to employ CHRISTINE DIETRICK as full-time CITY ATTORNEY of the
City to perform the functions and duties specified in the Charter and Municipal Code and
to perform such other legally permissible and proper duties and functions as the
COUNCIL may from time to time assign.
Deleted: 8th day of December 2020
Page 203 of 821
B. COUNCIL agrees to pay CHRISTINE DIETRICK, for her services rendered pursuant
hereto, an annual base salary of $266,630 payable in installments at the same time as the
other management employees of the CITY are paid. In addition, COUNCIL agrees to
increase said base salary by the cost-of-living adjustment approved by the COUNCIL for
all CITY management employees under any successor Management Compensation
Resolutions.
Section 3. Benefits.
In addition to the salary set forth in Section 2 of this CONTRACT, CHRISTINE DIETRICK
shall be entitled to a car allowance of $250 per month, a City contribution of 5.0% of salary to a
401(a) supplemental retirement plan, the ability to cash out up to three weeks' vacation once
during the calendar year, upon CHRISTINE DIETRICK'S request, and the same benefits as
those offered by the CITY to the CITY ATTORNEY, in accordance with the Management
Compensation Resolution, Resolution No. 11316 (2022 Series) and any successors.
Section 4. Performance Evaluation.
A. By April 30 of each year COUNCIL and CHRISTINE DIETRICK shall establish
mutually agreeable written goals, performance objectives, and priorities for the
performance period ending March 30 of each year. An annual formal Council evaluation
will be conducted in accordance with the City's Appointed Official Evaluation Process.
Consistent with the schedule outlined above, based on the Appointed Officials Evaluation
Process, and subject to performance as assessed by the COUNCIL, the CITY
ATTORNEY compensation shall be reviewed by COUNCIL annually in April and shall
be adjusted based on assessed performance as determined by COUNCIL in accordance
with the adopted Appointed Officials Evaluation Process, best management practices,
and informed by comparison agency data.
Section 5. Outside Activities, Conduct and Behavior.
A. CHRISTINE DIETRICK shall not engage in teaching, consulting or other non-CITY
connected business without the prior approval of COUNCIL. COUNCIL expressly
acknowledges and supports CHRISTINE DIETRICK’s volunteer participation in the
County Mock Trial program, which shall not be considered in conflict with this
paragraph and further recognizes the value of said participation for the City, including
professional network support and intern and employee recruitment to the benefit of the
City.
B. CHRISTINE DIETRICK shall comply with all local and state requirements regarding
conflicts-of-interest.
Section 6. Dues and Subscriptions.
COUNCIL agrees to budget for and to pay for professional dues and subscriptions of
CHRISTINE DIETRICK necessary for her continuation and full participation in national,
regional, state, and local associations, and organizations necessary and desirable for her
continued professional participation, growth, and advancement, and for the good of the CITY.
Deleted: 225,716
Deleted: 10920
Deleted: 2018
Deleted: , 2010,
Deleted: , 2011
Deleted: Further, Council shall conduct an "interim"
evaluation by October 29, 2010. An annual formal
Deleted: in March of 2011
Deleted: in
Deleted: 2011 consistent with the Management Pay-for-
Performance System in place at that time.…
Deleted: Each calendar year thereafter, COUNCIL shall
review and evaluate the performance and compensation of
CHRISTINE DIETRICK in accordance with the adopted
Page 204 of 821
Section 7. Professional Development.
A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of
CHRISTINE DIETRICK for professional and official travel, meetings, and occasions
adequate to continue the professional development of CHRISTINE DIETRICK and to
adequately pursue necessary official functions for the CITY, including but not limited to
the League of California Cities Annual Conference, League of California Cities City
Attorneys Department Conference, the Straus Institute for Mediation at Pepperdine
University, and such other national, regional, state, and local governmental organizations,
groups and/or committees.
B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of
CHRISTINE DIETRICK for short courses, institutes, and seminars that are necessary for
her professional development and for the good of the CITY.
C. Other professional development may be agreed upon from time to time between the
COUNCIL and CHRISTINE DIETRICK.
Section 8. General Expenses.
COUNCIL recognizes that certain expenses of a non-personal and job- affiliated nature
are incurred by the CITY ATTORNEY, and hereby agrees to authorize the Finance Director to
reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon
receipt of duly executed expense or petty cash vouchers, receipts, statements, or personal
affidavits.
Section 9. Indemnification.
In addition to that required under state and local law, CITY shall defend, save harmless,
and indemnify CHRISTINE DIETRICK against any claims, demands, causes of actions, losses,
damages, expenses (including but not limited to attorney's fees as may be authorized against
public entities or officers consistent with state law) or liability of any kind whether stated in or
arising from tort, professional liability or any other legal action or equitable theory, whether
groundless or otherwise arising out of an alleged act or omission occurring in the performance of
CHRISTINE DIETRICK'S duties as CITY ATTORNEY to the fullest extent permitte d by law.
CITY may compromise and settle any such claim or suit and shall pay the amount of any
settlement or judgment rendered thereon.
Section 10. Other Terms and Conditions of Employment.
The COUNCIL, in consultation with CHRISTINE DIETRICK, shall fix any such other
terms and conditions of employment, as it may determine from time to time, relating to the
performance of CHRISTINE DIETRICK, provided such terms and conditions are not
inconsistent with or in conflict with the provisions of this CONTRACT, the CITY Charter or any
other law.
Page 205 of 821
Section 11. No Reduction of Pay and/or Benefits.
COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary,
compensation or other financial benefits of CHRISTINE DIETRICK, except to the degree of
such a reduction across-the-board for all employees of the CITY or CHRISTINE DIETRICK
provides written consent to the reduction.
Section 12. Termination and Severance Pay.
A. In the event CHRISTINE DIETRICK'S employment is terminated by the COUNCIL, or
she resigns at the request of a majority of the COUNCIL during such time that she is
otherwise willing and able to perform the duties of CITY ATTORNEY, the COUNCIL
agrees to pay her a lump sum cash payment equal to nine (9) months compensation
(salary and all appointed officials fringe benefits). Additionally, CITY shall extend to
CHRISTINE DIETRICK the right to continue and purchase at her expense health
insurance pursuant to the terms and condition of the Consolidated Omnibus Budget
Reconciliation Act of 1986 (COBRA) or any successor legal requirement. CHRISTINE
DIETRICK is the CITY ATTORNEY for the purposes of the benefits under the
California Joint Powers Insurance Authority of which the CITY is a member. Any
associated severance benefit as a result of termination shall be in accordance with the
terms and conditions of the California Joint Powers Insurance Authority's Memorandum
of Liability Coverage in effect at the time of termination.
B. In the event that CHRISTINE DIETRICK is terminated for "good cause" the COUNCIL
shall have no obligation to pay the lump sum severance payment mentioned above. For
the purpose of this CONTRACT, "good cause" shall mean any of the following:
1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt
misconduct, or conviction of any felony.
2) Conviction of a misdemeanor arising directly out of CHRISTINE DIETRICK's
duties pursuant to this Agreement.
3) Willful abandonment of duties outlined in this Agreement.
"Good cause" shall not mean a mere loss of support or confidence by a majority of the
COUNCIL.
C. Any termination of employment shall be done consistent with limitations established in
the City Charter Section 709. Additionally, the CITY shall provide a minimum of 30 days
prior written notice to CHRISTINE DIETRICK of the intent to terminate this Agreement.
Section 13. Resignation.
In the event CHRISTINE DIETRICK voluntarily resigns her position with the CITY, she
shall give the COUNCIL at least two (2) months advance written notice.
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Section 14. General Provisions.
A. The text herein shall constitute the entire CONTRACT between the parties.
B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and
executors of the parties.
C. It is the intent of the COUNCIL that this CONTRACT and the appointment of
CHRISTINE DIETRICK as CITY ATTORNEY are in accordance with the requirements
and provisions of the Charter. Wherever possible, the provisions of this CONTRACT
shall be construed in a manner consistent with the Charter. If any provision of this
CONTRACT conflicts with the Charter, the Charter shall control.
D. If any prov1s1on, or any portion thereof, contained in this CONTRACT is held
unconstitutional, invalid or unenforceable, the remainder of this CONTRACT, or portion
thereof, shall be deemed severable, shall not be affected, and shall remain in full force
and effect.
IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and
year first set forth above.
_____________________________ _______________
J. CHRISTINE DIETRICK DATE
____________________________ ________________
MAYOR ERICA A. STEWART DATE
ATTEST:
____________________________ ________________
TERESA PURRINGTON DATE
CITY CLERK
APPROVED AS TO FORM:
____________________________ ________________
SADIE SYMENS DATE
DEPUTY CITY ATTORNEY
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Exhibit C
MANAGEMENT
PAY FOR PERFORMANCE
SYSTEM
Adopted by the City Council July 2, 1996
Revised March 1, 2004
Revised January 22, 2008
Revised April 14, 2016
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Exhibit C
Contents
INTRODUCTION .......................................................................................................................... 1
CITY OF SAN LUIS OBISPO MANAGEMENT PAY FOR PERFORMANCE SYSTEM ........ 2
PURPOSE ................................................................................................................................................... 2
OBJECTIVES ............................................................................................................................................... 2
APPLICABILITY ........................................................................................................................................... 2
ANNUAL PERFORMANCE EVALUATIONS .................................................................................................. 2
Schedule .................................................................................................................................. 2
Content .................................................................................................................................... 2
Rating Procedure ..................................................................................................................... 3
Rating Definitions ................................................................................................................... 3
ANNUAL SALARY INCREASES FOR PERFORMANCE ................................................................................... 4
Increases Available ................................................................................................................. 4
Schedule .................................................................................................................................. 4
Prorated Increases ................................................................................................................... 5
SALARY RANGE ADJUSTMENTS ................................................................................................................. 5
ANNUAL PAY FOR PERFORMANCE SYSTEM MILESTONES ........................................................................ 5
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INTRODUCTION
This booklet is intended to provide instructions on the use of the City of San Luis
Obispo Management Pay for Performance System. Adopted by the City Council
in July of 1996, and refined periodically, most recently in April 2016, the system
is designed to recognize and reward excellent performance by managers and to
provide an incentive for continuous improvement and sustained high
performance.
The foundation for any successful pay for performance system is meaningful
performance evaluations. While this booklet does not provide information on
how performance evaluations should be conducted, it is the responsibility of all
who participate in this program to be knowledgeable of and comfortable in the
role of evaluator. The success of this program depends upon the highest quality
evaluations that are realistic, reasonable and accurate. Straightforward
communication between the evaluator and the employee being evaluated is
essential so that each employee can understand how he or she can work toward
achieving the objectives and desired work behaviors that lead to excellent
performance. Excellence in performance translates to outstanding public service
which our community has every right to expect.
As you use this guide either as an evaluator or as a manager being evaluated,
please feel free to contact the Human Resources Department at 781-7250 if you
have any questions.
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CITY OF SAN LUIS OBISPO MANAGEMENT PAY FOR
PERFORMANCE SYSTEM
PURPOSE
Maintain management pay that is internally equitable and rewards management
employees based on their performance.
OBJECTIVES
Compensate management employees solely according to their
accomplishment of objectives and their job-related behavior.
Attract and retain well-qualified management employees.
Encourage consistent and objective evaluation and compensation of
management employees.
Keep procedures simple and understandable.
Allow management employees to progress through their salary ranges.
Maintain management pay ranges according to differences in duties,
responsibilities, and job requirements.
APPLICABILITY
This system shall apply to all management employees, which shall include
appointed officials, department heads, and other managers.
ANNUAL PERFORMANCE EVALUATIONS
Schedule
A management employee must receive an annual performance evaluation in order
to receive pay for performance. The annual performance evaluation period for
management employees shall conclude on the last day of the following months:
Appointed Officials: March Department Heads: April Other Managers: June
Content
Annual performance evaluations shall include review of the current year's
performance plan, completion of the current year's performance evaluation form,
and preparation of the next year's performance plan.
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Rating Procedure
Half of an employee's overall performance rating shall be based on five to eight
job-related behaviors (the City’s Organizational Values). All of the following
five behaviors must be rated:
Initiative: identifying problems and finding opportunities for innovative
solutions.
Customer Service: responding to the needs of external and internal
customers; continually increasing the value of services delivered.
Job Knowledge: demonstrating expertise; keeping skills current through
professional development.
Teamwork: communicating and collaborating well with others to solve
problems and accomplish tasks.
Stewardship: promoting the public trust by using City resources wisely,
communicating honestly, and being accountable.
And, at least one and up to three of the following behaviors must be rated:
Organization Development: improving organization responsiveness and
productivity
Human Resources Management: encouraging excellent performance from
employees
Leadership: defining and communicating overall issues and priorities for the
organization
The remaining half of an employee's overall performance rating shall be based on
accomplishment of five to eight management objectives. These objectives shall
be directly related to Council goals, program objectives, and personal objectives
and can be tied back to the City’s Organization Values. Changing circumstances
may require periodically adding, deleting, or altering the management objectives
listed in an employee's performance plan throughout the evaluation period.
Rating Definitions
On the performance evaluation each job-related behavior or management
objective shall receive an individual performance rating based on the following
scale:
Unacceptable (0): Performance consistently fails to meet minimum
requirements and expectations.
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Needs Improvement (1): Performance is inconsistent, only sometimes or
partially meeting expectations. Sustained
improvement is needed to fully meet expectations.
Meets Expectations (2): Performance fully meets expectations, with only a
normal amount of supervision or direction
necessary. Performance reflects competent skills
and a good attitude.
Exceeds Expectations (3): Performance consistently exceeds expectations,
with higher quality, more innovation, and less
supervision or direction than typically required.
Specific examples document this above-average
achievement.
Outstanding (4): Performance is clearly superior. While specific
examples document this superiority, achievement
is usually self-evident to others because this level
of performance is extraordinary.
ANNUAL SALARY INCREASES FOR PERFORMANCE
Increases Available
Each year an employee may receive a salary increase from two to six percent
based on the recommendation of the employee’s evaluator. A salary
recommendation cannot increase the employee’s salary beyond the top of the
assigned salary range. The recommended increase shall acknowledge the
employee’s overall annual performance evaluation as follows:
Overall Rating: Salary Increase Available:
Unacceptable None—employee subject to discipline including
termination*
Needs Improvement None—employee may subject to a or Performance
Improvement Plan or discipline*
Meets Expectations Two percent to three percent
Exceeds Expectations Three and a half percent to five percent
Outstanding Five and a half percent to six percent
*in accordance with the Personnel Rules and
Regulations
Schedule
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Salary increases for the three classes of management employees shall take effect
in the months listed below:
Appointed Officials: 1st Full Pay Period in April
Department Heads: 2nd Full Pay Period in April
Other Managers: 2nd Full Pay Period in July
Salary increases for management employees who are not appointed officials or
department heads shall be reviewed and approved by the department head and the
Human Resources Director. A summary of increases and ratings may be provided
to the City Manager.
Prorated Increases
For new employees, or employees newly promoted into a management position,
there will be no increase if the employee has been in the position less than six
months. If the employee has been in the position for six months or longer, or the
employee has taken a leave of absence of six months or longer during the
evaluation period the amount of increase should be prorated by the amount of full
months in the position.
Example: Since a manager’s salary increase takes effect in July (for performance
through June 30), to qualify for a prorated increase the employee must have
occupied that position by December 31st (December 31st – June 30th). For
example, if the manager (who has been in the position for six months) is
recommended for a 3% salary increase on their performance evaluation, the
prorated rate of increase would be 1.5% for the six months’ time spent in the
position (6 months ÷ 12 months =.5 times 3% = 1.5%). Thus the formula is as
follows: Number of months in the position ÷ 12 months = Prorated period times
the recommended percentage increase = prorated increase.
SALARY RANGE ADJUSTMENTS
Periodically, the Human Resources Director shall review management salary
ranges and shall recommend adjustments as necessary to keep them competitive
and maintain distinctions in compensation levels between management
employees and represented employees. Factors to be considered in adjusting
salary ranges will include local relevant labor market data, compensation in
comparable agencies, recent wage settlements for represented City employees,
and statewide cost-of-living indices. A salary range adjustment shall become
effective the first full pay period after Council approval, unless otherwise
indicated in the resolution.
ANNUAL PAY FOR PERFORMANCE SYSTEM MILESTONES
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March The City Council evaluates appointed officials and recommends
pay adjustments.
April Pay adjustments for appointed officials take effect with the second
full pay period.
The City Manager evaluates department heads and recommends
pay adjustments.
Pay adjustments for department heads take effect with the second
full pay period.
June Department heads and other supervisors evaluate other managers
and recommend pay adjustments.
July The Human Resources Director reviews pay adjustments and
performance plans for other managers to ensure consistency from
employee to employee and department to department.
Pay adjustments for other managers take effect with the second full
pay period.
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