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Home My WebLink About04-17-2012 c9 appointed officials evaluations and compensationcounci lac,Enda REpoRt (Meeting Date 04/17/201 2 Item Number C 9 C I T Y O F S A N L U I S O B I S P O FROM : Mayor Jan Howell-Mar x Prepared By :Monica Irons, Director of Human Resource s SUBJECT :APPOINTED OFFICIALS' EVALUATIONS AND COMPENSATIO N RECOMMENDATIO N Adopt a resolution adjusting the salary of the City Attorney pursuant to the City's Appointe d Officials Evaluation and Management Pay for Performance processes . DISCUSSIO N Backgroun d In 1999 Council began following a structured process to annually evaluate the job performance o f its two appointed officials, the City Manager and City Attorney . The process is facilitated b y consultants who collect input on the appointed officials' performance in the areas of Council–Cit y Manager or Council-City Attorney relationship, legal advocacy (City Attorney only), leadership , community relations, financial management, and progress to major goals . The consultant s summarize input for Council from the appointed officials' direct reports . The consultants the n interview each Council member and draft the performance evaluation documents prior to meetin g with Council as a whole to finalize . Council also reviews and approves goals for each appointe d official during this annual process . The overall process takes approximately six weeks to complet e and provides appointed officials with constructive feedback . Performance ratings resulting fro m this comprehensive process are the basis for pay for performance increases per the City's guidelines . Pay-for-Performance Increas e The Management Pay for Performance System was developed and adopted by Council in 1996 . The system was designed to recognize and reward excellent performance by managemen t employees, including appointed officials, and to provide an incentive for continuous improvemen t and sustained high performance . Based on performance evaluation ratings, an employee may b e eligible for a pay for performance increase that moves an individual's salary within an establishe d salary range . This differs from the "step" system used by other employee groups, where employee s move through the salary range in fixed "steps" based on time in grade (typically at one-yea r intervals). The performance of the City Manager and the City Attorney was rated "highl y competent" during the 2012 performance evaluations . Pay-for-performance guidelines allow for a n increase of 3 .5% to 5% based on this performance rating . The City Manager and Council recommend no change to the City Manager's compensation becaus e the City Manager was hired at a fixed salary and not within a salary range . The City Manager di d not receive a pay for performance increase in 2011, although performance warranted it . The Cit y Manager has agreed to reduce her total compensation approximately 12% since she was appointe d C9-1 by Council in January 2010, due to the need for ongoing reductions and pension reform . The Cit y Attorney was hired in January 2010 at the mid-point of the City Attorney salary range and did no t receive a pay for performance increase in 2011, although performance warranted it . Similarly to the City Manager, the City Attorney has agreed to reduce her total compensation by approximately 7 % since she was appointed in January 2010 . This year, a 3 .5% salary increase is recommended for th e City Attorney effective April 12, 2012 pursuant to the City's established pay for performanc e system . The salary range and other benefits shall remain the same . The City Manager and Cit y Attorney pay the full 8% Member contribution to PERS, as do all other unrepresented managemen t employees, as of January 2012 . In addition to negotiating reductions in compensation, the City ha s attempted to contain personnel costs by not providing cost of living increases or increases to healt h insurance . However, employees who are not at the top of their established salary range are eligible for either a step increase or pay-for-performance increase depending upon their classification . Consistent with this practice, the City Attorney's salary will be adjusted by the recommended pay- for-performance amount, but will not include a COLA increase . FISCAL IMPACT The proposed compensation adjustment is within the City Attorney salary range, pay-for- performance guidelines, and within budget . ATTACHMENT 1 .Resolution – City Attorney Salary Adjustmen t g:\coundl\agenda reports\20121appointedoffidalsevals&comp\dlyattomeycompensation.docx RESOLUTION NO .(2012 SERIES ) A RESOLUTION OF THE CITY COUNCIL OF THE CIT Y OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY ATTORNE Y WHEREAS, on January 1, 2010 the City Council approved such a contract o f employment appointing Christine Dietrick to the position of City Attorney ; an d WHEREAS, the City Council conducted a performance evaluation on March 23 , 2012, in accordance with the Appointed Officials' Performance Process as modified i n December of 2011 ; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Lui s Obispo as follows : SECTION 1 . Effective April 12, 2012, the City Attorney's salary shall be increased 3 .5% per month . SECTION 2 . All other compensation and benefits afforded the City Attorne y under Management Compensation Resolution No . 10315 (2012 Series) and the Cit y Attorney Employment Agreement, not superseded by the above, shall remain in full forc e and effect . SECTION 3 . The City Council shall evaluate the performance of the Cit y Attorney annually . On motion of Council Member, seconded by Council Member, and on th e following roll call vote : AYES : NOES : ABSENT : Resolution No . (2012 Series ) Page 2 The foregoing Resolution was adopted this 17 th day of April, 2012 . MAYOR JAN MAR X ATTEST : SHERYLL SCHROEDER, INTERIM CITY CLER K APPROVED AS TO FORM : /s/ Andrea Visveshwara ANDREA VISVESHWARA, ASSISTANT CITY ATTORNEY