HomeMy WebLinkAbout10/11/1988, 3 - APPOINTED OFFICIALS EVALUATION MEETING AGENDA
DATE oar 'I ITEM #
To: Council Colleagues
From: Fenny Q �L
Re: Appointed Officials Evaluation
I suggested that we discuss a process for our evaluation.
The memo of 10/26/87 was a beginning'. but the Council never
followed thru. I would like to suggest we formalize our
process in a resolution to then be included in our Council
Policies and Procedures book: (Section 2) .
EVALUATION PROCESS - Closed Session
MID YEAR INFORMAL REVIEW
January -General discussion between Council and appointed
employee. Update on any specific goals or immediate
concerns.
ANNUAL EVALUATION
August -- September <
Council to receive written report from appointed official
1 . Job description
2. Report Goals and Objectives from prior evaluation
3. Current activities
4. Evaluation form (Personnel Director supply)
Short council only discussion on report
Question/answer session with employee. Collective or
individual comments. Review future Goals and objectives
Council only consensus and evaluation for ranking purposes.
These suggestions are for discussion purposes only. In order
for the Council to feel comfortable with the process, maybe
establishing a procedure will help .
cc: John
Roger
Pam
RECEIVE ®
OCT 11 1 IM
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N"iEETII`.�G AGENDA,�,E,s�o
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City0 SAn W 1S OBISPO
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
(805) 549-7140
October 5, 1988
MEMORANDUM
To: Honorable Mayor and Councilmembers
From: Roger Picquet, City Attorney
Subject: Compensation Setting Process for Chief Administrative
Officer, City Clerk, City Attorney
John has asked that I provide you with a brief review of the law regarding
process for the setting of compensation for appointed and a joint recom-
mendation for the present.
Up through 1983 compensation for the three appointed officials was handled
in a routine closed session, usually in connection with the annual or
mid-year performance review. In late 1983, the California appellate Court
held that, although performance evaluations were clearly proper for closed
session, salary or compensation setting was a matter for open session (San
Diego Union v. City of San Diego (1983) 196 Cal . -Rptr. 45) . After a
subsequent stab at legislative relief, the League of California Cities
basically abandoned any state-wide effort to change that case. Individual
cities have developed creative approaches in bringing this matter into
closed session. Council has used a sub-committee process since 1984, but
that method has not proven entirely satisfactory.
Several years ago I advised that Council may revert to closed sessions to
handle this subject. You have received John's memo of September 29. 1988,
on merit pay and relevant guidelines. The three of us may choose to
communicate to Council by memo any individual requests or concerns and
then Council could consider all relevant factors in closed session.
All three of us recommend this procedure for the October 11 , 1988 Council
meeting. Given the fact that the performance evaluation has already been
conducted, it is not anticipated that these items will take any signifi-
cant amount of time.
RP:cac
cc : Chief Administrative Officer
- " MEETING `r AGENDA� o
cityDATE °�" adiTt�� #O sAn loll S spo"5
°'
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100 �.—
September 29, 1988
MEMORANDUM
To: City Council
From: John Du
Subject: Reque f merit pay program for appointed officials
After the performance reviews on Monday, Mayor Dunin asked that I develop
a merit pay program for the appointed officials.
To oversimplify a bit, our present pay program is a combination of
"Cost-of-living adjustment" and "merit pay. " Pay adjustment is based on
performance review within salary ranges and percentage guidelines. The
present salary adjustment method effectively builds the salary increase
into the new base.
The Council has previously used "bonus pay, " a one-time bonus which is
above the merit pay and which does not become part of the base pay. Bonus
pay might be given for meeting special challenges of the past year, for
performing above expectations generally or on a number of special
assignments, or under particularly difficult circumstances (or for
whatever other reasons are chosen by the Council ) .
My recommendation to you, then, would be that you make a fair
determination on merit pay, as this gets built into the permanent pay for
the position, but that you additionally consider a one-time bonus for the
appointed official(s) when this is deemed appropriate.
Based on recent experience and practice, the merit pay increase could be
in the 4-7% range, or as a guideline:
Below Meets Exceeds Outstanding
Standards Standards Standards
2-4% 4-6`k 5-7% 6-8%
Attached are selected policy documents which the City Council has
previously approved.
Ideas for the one-time bonus pay are:
1 . Cash bonus
A. As percentage of salary ( 1-3% suggested)
B. As specified amount ($500 to $1200 suggested - amounts below or
above could also be selected)
Note: Once given as cash, the amount is taxable as regular income
2. Deferred compensation bonus (through City' s deferred compensation
programs) :
A. As percentage of salary (above)
B. As specified amount (above)
Note: Appointed official would be asked to specify program and
options; this form of Compensation is not taxable until the money is
later taken out of the system. Federal law limits total deferred
compensation annually.
3. Retirement enhancements. It is best to either:
A. Use City's deferred compensation program for this purpose
B. If something other is desired, work with the appointed official ,
and obtain assistance of City Administrative Officer/Personnel
Director
4. Other benefit changes:
A. Generally. it is best to avoid making special provisions to the
established management benefits program
B. However, if that is desired, it is best to work with and through
the City Administrative Officer/Personnel Director to make such
charges compatible with the established management benefits
program.
The above has been reviewed by the Personnel Director, City Clerk, and City
Attorney: they concur with it.
The above thoughts and suggestions are based on an assumption , that the
present pay levels and ranges for the positions are equitable. There is
the possibility that the future management pay analysis may reveal
inequities needing to be addressed, which would be outside the scope of
these suggestions.
If I may be of further assistance to you on this matter. I shall do so
immediately upon request.
JD:mp
Attachments
c. City Attorney
City Clerk
Several documents presently exist which may assist the Council in
determining compensation:
1 . Resolution 6169 establishes the basis for compensation (Section 1) ,
lists criteria for setting salary (Section 2) and authorizes one-time
performance awards (Section 4) .
2. Resolution 6500 amends the salary schedule (Section 1 ) and authorizes
up to 6% total salary increases for the three positions with specific
increases to be determined by the Council .
3. 1987 memo on Evaluation and Compensation which describes the process
and schedule for evaluating appointed officials and assigns
compensation.
4. Resolution 6121 describes how the City Administrative Officer is to
evaluate management groups and assign compensation (Section 2, 3 and
6) .
RESOLUTION NO. 6169 (1987 SERIES) FEB 2 5 10—
I.
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO ESTABLISHING AN APPOINTED OFFICIALS COMPENSATION
PLAN FOR CERTAIN MANAGEMENT PERSONNEL AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City Council is desirous of establishing a comprehensive
Appointed Officials Development and Compensation policy; and
WHEREAS, the Council is committed to a compensation policy that
strengthens the recruitment and retention of well-qualified and effective
appointed officials; and
WHEREAS, the Council is desirous of maintaining an appointed
Officials compensation plan which is consistent with other City
compensation plans; and
WHEREAS, the Council is committed to a compensation plan which
reflects the differences between duties, responsibilities and job
requirements; and
WHEREAS, Council determines that merit and performance shall be the
basis for Appointed Officials compensation.
NOW. THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Section 1. An Appointed Officials salary plan is an important
component of a comprehensive compensation policy. In order to remain
competitive with the professional marketplace and promote merit and
I
performance as the criteria for individual salary determinations, the
following open-range Appointed Officials Salary Schedule (Table "A") for
fiscal years 1986-88 is authorized. Subsequent changes in any group
salary range shall be authorized by Council resolution.
I
I
I
Resolution No. 61.69 (1987 Series)
Page 2
TABLE "A"
APPOINTED OFFICIALS SALARY SCHEDULE - FISCAL YEAR 1986-1988
Group Appointed Official Positions Salary Range
I City Administrative Officer 54,900 - 6,200
II City Attorney $4,400 - 5,600
III City Clerk $2,900 - 4.000
Section 2. For individuals in Appointed Officials Groups I through
III, the City Council shall determine compensation, including salary
within the designated ranges, after evaluating performance, the management
_profession,__and Punditconstraints.
Section 3. The City Council shall adopt individual employment
agreements for appointed officials in Groups I through III.
Section 4. The City Council is authorized to grant one-time
Performance Awards to employees in groups I through III for either
exceptional specific performance or sustained outstanding performance.
Section S. The appointed official benefits attached hereto as
Exhibit "A" shall continue during fiscal years 1986-88. The City shall
contribute.a-maximum..oL..i268.30 per....month_for -the_-■edicaL- dentaL. .and _
-.-.-.--.----.- -vision coverage.- The Management -Life- Insurance -and-Long-Term-D-isabii=i-Ey -
insurance shall continue to be directly funded by the City.
Section 6. The City Council shall be authorized to approve annual
salary adjustments to employees in groups I through III for fiscal year
86/87 commencing July 1, 1986 and January 1. 1987 and for fiscal year
87/88 commencing July 1, 1987 and January 1 . 1988 consistent with
Resolution No. 6169
Page 3 (1987 Series)
performance, market considerations and adjustments granted other employee
groups, within total funding parameters authorized by the City Council.
Council review for fiscal year 87/88 adjustments shall be completed by
September 1. 1987.
Section 7. City Council authorizes the City Administrative Officer
to approve one-time compensation awards to all Management Team members,
including appointed officials, effective July 1. 1987, if all Management
Team goals are completed or are on schedule. Such awards shall be
contributions to either of the deferred compensation plans. Total funding
available for such awards shall not exceed 1% of the total compensation of
- - ---the—Management Team. e w I1 inform the Council when such awards are
granted.
On motion of Councilwoman Rappa , seconded by Councilman Settle
and on the following roll call vote:
AYES: Councilmembers Rappa, Settle and Dovey
NOES: Mayor Pro-Tem Griffin
ABSENT: Mayor Ron Dunin
the foregoing Resolution was passed and adopted this 17th day of February,
I987:
MAYOR PRO-TEqROBER G FFIN
ATTES
CITY LERK PAMELA VOG
I
Resolution No. 6169 (1987 Series)
Page 4
APPROVED:
City 4Adm strati Officer
City Att ey
Finance Dire or
Personnel_ Dicectar
EXHIBIT "A"
APPOINTED OFFICIAL FRINGE BENEFITS
1986-88
SECTION A Medical , Dental Eve Care
The City shall establish and maintain medical, dental and eye care
insurance plans for coverage by appointed officials and their dependents.
Each appointed official shall carry medical , eye care, and dental for
self. Dependent coverage shall be at the employee's option; however,
all eligible dependents must be covered, and covered on all plans, if
dependent coverage is desired. The City reserves the right to choose
the method of insuring and plans to be offered.
SECTION B Unexpended Prinee Benefit
The city shall pay to each appointed official an annual lump sum
payment (subject to appropriate taxation) for the difference between the
benefit amounts provided appointed officials and any lesser sum expended
by the employee for medical, eye care, and dental coverage for the
calendar year. Payment shall be made at same time as all City employees.
SECTION C Life and Disability
The city shall provide the following special insurance benefits:
1. Long-term disability insurance providing 60% of gross
salary to age 65 for any sickness or accident after a
90-day waiting period.
2. $50,000 term life insurance including accidental death
and dismemberment.
3. One-half of employee's health insurance premium paid
for retired appointed official who elects to remain as a
member of the city's group health plan. (Medical Plan)
SECTION D Retirement
--The City agrees to provide the Public Employees' Retirement System's
2% at age 60 plan. to all .eligible-.appointed -off-icials, -including-the
amendment permitting conversion of unused sick leave to additional
retirement credit, the 1959 survivor's benefit and one year final
compensation.
Effective 7-1-81 the city agrees to pay the appointed officials'
contributions to P.E.R.S. These amounts paid by the city are employee
contributions and are paid by the city to satisfy the employee's
obligation to contribute the current percentage of salary to P.E.R.S. An
appointed official has no option to receive the contributed amounts
directly (as opposed to having them paid by the city to P.E.R.S. on behalf
of the employee) . It is further understood and agreed that the payment of
the employee's P.E.R.S. contribution is made subject to I .R.S. approval
and reporting procedures.
SECTION E Vacation
Vacation leave for appointed officials shall be 15 days per year and
may be taken after the completion of the sixth calendar month of service
with the city. Vacation leave shall be accrued at the rate of eighteen
days per year upon completion of five years of continuous service and
twenty vacation days upon completion of ten years. Appointed officials
shall use every effort in scheduling vacation leave so as to minimize
adverse impacts on city administrative functions.
Vacation leave shall be accrued as earned each payroll period up to a
maximum of twice the annual accrual rate. However, if the City Council
determines that an appointed official has been unable to take vacation,
due to the press of city business, the Council may increase the accrual
limits, or once annually may authorize payment for one-half of the excess
accumulation up to a maximum of five (5) days.
SECTION F Administrative Leave
Appointed officials shall accrue eight (8) days (64 hours) of
executive leave per calendar year: This leave shall accrue at the rate of
5.333 hours per month. Commencing January 1, 1987 appointed officials
shall have the option of taking such leave as additional paid leave or
receiving cash for up to 64 hours at y armed,-Upon--the-approval -of'the - --
- y" ounce .
SECTION G Holidays
year.Appointed officials shall receive 10 fixed + 2 floating holidays per
SECTION H Sick Leave
Sick leave is governed by Section 2.36.420 of the Municipal Code. An
appointed official may take up to two (2) days per year of sick leave if
required to be away from the job to personally care for a member of
his/her immediate family as. defined in Section 2.36.420. This may be
extended to five (5) days per year if the family member is part of the
employee's household, and to seven (7) days if a household family member
is hospitalized and the empl.oyee_ submits written ..verification -of such
hospitalization.
Upon ter�ainatlQp."of-.employment-by-death or retirement, a percentage
—. --
of the dollar value of the employee's accumulated sick leave will be paid
to the employee, or the designated beneficiary or beneficiaries according
to the following schedule:
(A) Death - 25%
(8) Retirement and actual commencement of PERS benefits:
(1) After ten (10) years of continuous employment - 10%
(2) After twenty (20) years of continuous employment - 15%
SECTION I Workers' Compensation Leave
An appointed official who is absent fro■ duty because of on-the-job
" injury 1n accordance with the state workers' compensation law and 1s not
eligible for disability payments under labor Code Section 4850 shall be
paid the difference between the employee's base salary and the amount
provided by workers' compensation law during the first ninety (90)
business days of such temporary disability absence. Eligibility for
workers' compensation leave requires an open workers' compensation claim.
I
SEP 2 8 1988
RESOLUTION 110. 6500 (1988 SERIES)
A RESOLUTION OF THE CLOUNCIL OF THE CITY OF SRN
LUIS OBISPO AMENDING RESOLUTION NO. 6169 BY
ADJUSTING THE SALARY RANGES, SALARIES AND REALM
BENEFIT FUNDING OF CERTAIN APPOINTED OFFICIALS
BE IT RESOLVED by the council of the City of San Luis Obispo as
follows:
Section 1. The following open-range Appointed Officials Salary
Schedule (Table "A") for fiscal year 1938-89 is authorized.
TABLE "All
APPOINTED OFFICIALS SALARY SCHELx1LE - FISCAL YEAR 1988-1989
Group Appointed Official Positions Salary Range 1988/89
I City Administrative Officer 5,194 - 6,572
II City Attorney 4,664 - 5,936
III City Clerk 3,074 - 4,240
Section 5. ADD: Effective December 1, 1988, the City shall
contribute $300.00 a month for medical, dental and vision arra life
coverage-
Section.-6--ADD: Total salary increases for all employees in-groups I
through III c=menoing July 1, 1988 shall not exceed 6% of current
compensation for the group of positions, with specific increases for
individual positions to be determined by the City Council.
R6500
Resolution No. 050u (1988 Series)
Page 2
On motion of Councilman Se[ L1c seconded
by CuunciIwoman Kappa ,
and on the following roll call vote:
AYES: CounciLmembers SeLLle , Kappa , Kinard , Reiss ancl ,PIayor Dunin
NOES: None
ABSFNr: None
the foregoing Resolution was passed and adopted this 20th day of
September, 1988.
Mayor Ron Dunin
AT=:
City Jerk, Pamela V
« « « « « « « « « «
APPROVED:
d
City ' istrative Officer
City A ey
Finanoe Director
Personnel Director
►viii►� i'�ilii;piu�i��►�i lilll C tof sAn l is oBispo
i
�� JS=fie'
h 99;fs�;i,; 1N;i'r.'it �11 i;qk j I• 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403 8100
October 26, 1987
MEMORANDUM
TO: City Council
FROM: John Dunn
Roger P c:
Pam V
SUBJECT: Evaluat on and Compensation Procedures and Process
The following outlines a draft Appointed Officials Evaluation and ,
Compensation process. We suggest the Council consider this as a guideline
document for reviewing performance and compensation. This is presented for
your review and comment. We are available to meet at your convenience.
There are two issues to be resolved by the Council: 1) Evaluation of
Appointed Officials, and 2) the Compensation Process.
Appointed Officials Evaluation
Pursuant to our respective agreements, two performance reviews will be
conducted annually for each appointed official . This process is outlined
as follows:
The first review will be the Annual Evaluation and will be considered the
primary evaluation. It would be held following the budget process in
approximately July or August but no later than September 30 of each year
(this year is obviously an exception) . This will be held in Closed Session
between the full Council and the individual appointed official . The
Council will be provided with an Evaluation form. The appointed official
will also provide a written report providing a status update of his/her
goals and objectives and other supplemental comments to assist the
official's performance review.
The mid-year review should be held in January each year but no later than
March. This review will not normally be to the same depth as the Annual
Evaluation. It can take the form of a Council-Appointed Team Building,
session, review of specific performance concerns, and/or review of
supplementary information since the primary review. A more extensive team
building/organizational development program is planned for January or
February of 1988. Issues may be identified, agreed upon and incorporated
into the program.
Evaluation and Compensation Procedures and Process
October 26, 1987
Page 2
Compensation Process
This should be held in conjunction with the annual evaluation process, no
later than September 30 each year (again, this year is an exception) . The
ability to meet in closed session with an individual appointed official is
still a gray area. However, until such time that the courts clarify the
law in this area. closed session is the preferred means by which
compensation should be reviewed.
Compensation adjustments will be made in accordance with: 1) Resolution
No. 6169, the Comprehensive Appointed/Management Plan; 2) individual
appointed officials employment agreements; and 3) the recently adopted
Human Resource Policy Statement. The Appointed Official may also recommend
adjustments or amendments to his/her agreement or compensation package. In
addition, consistent with scheduled compensation reviews for Management
Team members, the City Administrative Officer shall review and recommend
appropriate salary ranges for Apponted Officials in accordance with
professional compensation principles.
For purposes of making compensation adjustments, the Council may consider:
1. Salary adjustment within previously adopted salary range consistent
with performance, market considerations and adjustments granted
other employee groups.
2. One-time Performance Award for either exceptional specific
performance or sustained outstanding performance.
3. Any other amendment to the adopted Management Fringe Benefit
package deemed appropriate.
PV/skj
CLERKIA/evaluation
RESOLUTION NO. 6121 (1986 SERIES)
I
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO ESTABLISHING A MANAGERIAL COMPENSATION PLAN
FOR CERTAIN MANAGEMENT PERSONNEL AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the City Council is desirous of establishing a
comprehensive Management Development and Compensation policy; and
WHEREAS, the Council is committed to a compensation policy that
strengthens the recruitment and retention of well-qualified and
effective managerial staff; and
WHEREAS, the Council is desirous of maintaining a management
----compensa-ti-on--plan -whichis consistent with other City compensation
plans; and
WHEREAS, the Council is committed to a compensation plan which
reflects the differences between duties, responsibilities and job
requirements; and
i
WHEREAS, Council determines that merit and performance shall be
the basis for managerial compensation; and
WHEREAS, Council recognizes that under Section 701 of the City __. ..-
Charter -the selection, development, evaluation and level Of com
—satiOn of certain individual departmental managers and immediate
management staff is the responsibility of the City Administrative
Officer.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San
Luis Obispo as follows :
R 612.1
Resolution No. 6121
Page 2
(1986 Series)
Section 1. A managerial salary plan is an important component
of a comprehensive compensation
policy. In order to
competitive with the remain
professional marketplace and promote merit and
performance as the criteria for
individual salary determinations, the '
following open-range g Management Salary Schedule (Table "All) for
fiscal years 1986-87 and
1987-88 are authorized. Subsequent changes
in any group salary range shall be authorized by Council resolution.
TABLE "Alf
MANAGEMENT SALARY SCHEDULE
Mort. - FISCAL YEAR 1986-1988
Management Position
Salary Range
A 1986/87 1987/88
Public Works Director
Community Development4 . 000-4, 700 4 400- i
Assistant CAO Dir. 5, 200
Fire Chief
Police Chief
B
City Engineer
Utilities Manager 3 . 600-4, 300
Finance Director 3 , 900-4, 700
C Personnel Director
Recreation Director 3 , 200-3 , 900 3 , 400-4
,
City Attorney 2
E Assistant Cit Assistant to the CAO , 900-3X600 3 , 400-41000
2 , 200-2 , 900 2 , 400-3 , 200
Section 2 . The '
City Administrative Officer is responsible for
and shall be held accountable to the
evaluation of council for the performance and
subordinate management staff. The City Administrative
Officer shall evaluate and determine individual levels of salary for
Resolution No. 6121
Page 3 (1986 Series)
Positions within management groups A through E in accordance with
professional compensation principles. Such determinations shall
reflect merit and performance as the standard and basis for
managerial compensation. Such determinations shall be within the
respective monthly salary ranges specified in Section I and may
include increases, no change or decreases in salary levels within the
designated range. Further, the City Administrative Officer is
authorized_ to..implemen.t_-se-lar
- y level determinaCtions by phases during
a fiscal year.
Section 3 . The salary determination within the approved range
for management employees in ranges A through £ who report to other
management employees shall be jointly determined by the supervising
manager and the City Administrative Officer. The Assistant City
Attorney shall be evaluated .by the City Attorney. Salary
determinations for the Assistant City Attorney shall be approved by
the City Administrative Officer and be consistent with compensation
determinations for other managerial employees.
Section 4 .
The City Administrative Officer is authorized to i
grant one-time Performance Awards of $250-$750 to employees in ranges
A through E for either exceptional specific performance or sustained
outstanding performance.
i
I.
Resolution No. 6121
Page 4 (1986 Series)
Section 5 . The management fringe benefits attached hereto as
i
Exhibit "A" shall continue during fiscal years 1986-88 . The City
shall contribute a maximum of $268. 30 per month for the medical,
dental, and vision coverage. The Management Life Insurance and
Long-Term Disability insurance shall continue to be directly funded
by the City. Managerial employees working less than full time shall
have all benefits and fringes pro rata.
Section 6 . The City Administrative Officer shall be authorized
to approve annual salary adjustments to employees in salary groups A
through E for fiscal year 86/87 commencing July 1, 1986 and January
1, 1987 and for fiscal year 87/88 commencing July 1, 1987 and January
1, 1988 consistent with performance, market considerations and
adjustments granted other employee groups, within total funding
parameters authorized by City Council.
Section 7. The total annual cost for salary and one time award
changes for employees in Groups A through E for fiscal years 86/87
and 87/88 shall not exceed 6. 5.% of total compensation for all
Positions for the previous fiscal year.
ection '8 City Council authorizes the CAO to approve one-time
compensation awards to all Management Team members, effective July 1,
19871 if all Management Team goals are completed or are on schedule.
Such awards shall be contributions to either of the deferred
compensation plans . Total funding available for such awards shall
not exceed 1% of the total compensation of the Management Team.
Resolution No. 6121
Page 5 (1986 Series)
On motion of Councilwoman Dovev seconded. by Councilwoman Rappa
and on the following roll call vote: /
AYES: Councilmembers Dovey, Rappa, Griffin, Settle and Mayor Dunin
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 18th day of
November, 1986.
ATTEST:
City lerk Pamela o es
Resolution No. 6121 (1986 Series)
Page 6
APPROVED:
City Adnunistrative dffic
City At rney
Finance Direr r
Personnel Director