HomeMy WebLinkAbout05-03-2016 Item 14 Appointed Officials Compensation
Meeting Date: 5/3/2016
FROM: Mayor Jan Howell Marx
Prepared By: Monica Irons, Director of Human Resources
SUBJECT: APPOINTED OFFICIALS’ COMPENSATION
RECOMMENDATION
Adopt a resolution approving a lump-sum incentive payment to the City Manager and to the City
Attorney.
DISCUSSION
Background
In 1999 Council began following a structured process to annually evaluate the job performance
of its two appointed officials, the City Manager and City Attorney. The process is facilitated by
an independent consultant who collects input on the appointed officials’ performance in the areas
of Council–City Manager or Council-City Attorney relationship, legal advocacy (City Attorney
only), leadership, community relations, financial management (City Manager only), and progress
to major goals. The consultant summarizes input for Council from the appointed officials’ direct
reports. The consultant then interviews each Council member and drafts the performance
evaluation documents prior to meeting with Council as a whole to finalize. Council also reviews
and approves goals for each appointed official during this annual process. Appointed Officials’
goals are linked to Major City Goals established by Council as part of the City’s comprehensive
financial planning process. The overall process takes approximately eight to twelve weeks to
complete and provides appointed officials with constructive feedback.
At the same time as they are conducting the performance evaluations Council considers
appropriate compensation for the appointed officials. In 2013, Council amended the contracts of
the City Manager and City Attorney, removing emphasis from the Management Pay for
Performance System used with unrepresented management and department head employees and
placing emphasis on market comparisons for Council’s consideration of compensation. This
change recognizes that the appointed officials differ from other management employees in that
they are hired by, and serve at the will of, the City Council. City Manager and Ci ty Attorney
compensation is negotiated and agreed upon in Employment Contracts between the City and
each appointed official. In determining the appropriate compensation, Council considers a
variety of factors that include performance, market compensation data, recruitment and retention
challenges, workload, accomplishments, etc.
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2016 Compensation Considerations
Council met with the consultant in closed session on March 23, 2016 to discuss the appointed
officials’ performance and compensation. Council concluded that the appointed officials had
performed admirably and accomplished the 2015-16 goals provided by Council. A review of
market comparisons indicated the appointed officials are paid within five percent of the market
median and therefore, Council is not adjusting the base compensation of either appointed
official. The market data also reinforces the cost of turnover, as it increases more significantly
when cities are faced with replacing difficult to find, city manager and city attorney skill sets.
Accordingly, Council concluded a $5,000 lump-sum (subject to applicable payroll taxes)
retention incentive was appropriate for both the City Manager and City Attorney. No other
changes to the appointed officials’ compensation are recommended and thus, no changes to the
employment contracts are necessary at this time.
FISCAL IMPACT
The proposed compensation adjustments can be absorbed in the City’s current budget and are
accommodated in the 2015-17 financial plan.
Attachments:
a - Resolution Authorizing Lump-Sum Payment to City Manager and City Attorney
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RESOLUTION NO. _______ (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
LUIS OBISPO, CALIFORNIA, PROVIDING A LUMP-SUM
RETENTION INCENTIVE TO THE CITY MANAGER AND CITY
ATTORNEY
WHEREAS, on January 1, 2010 the City Council approved a contract of
employment appointing Katie Lichtig to the position of City Manager and a contract of
employment appointing Christine Dietrick to the position of City Attorney; and
WHEREAS, the City Council conducted performance evaluations of these
appointed officials on March 23, 2016, 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. Payable on the first regular payroll following adoption of this
Resolution the City Manager and City Attorney shall each receive a lump-sum retention
incentive of $5,000 (subject to applicable payroll taxes).
SECTION 2. All other compensation and benefits afforded the City Manager and
City Attorney under Management Compensation Resolution No. 10650 (2015 Series) and
the City Manager Employment Agreement and the City Attorney Employment
Agreement, shall remain in full force and effect.
SECTION 3. The City Council shall evaluate the performance of the City
Manager and City Attorney annually.
Upon motion of ______________________, seconded by
________________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
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Resolution No. _____ (2016 Series) Page 2
R ______
The foregoing resolution was adopted this 3rd day of May, 2016.
___________________________________
Mayor Jan Marx
ATTEST:
__________________________________
Lee Price, MMC
Interim City Clerk
APPROVED AS TO FORM:
_________________________________________
Jon Ansolabehere
Assistant City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of San Luis Obispo, California, this ______ day of ______________,
_________.
______________________________
Lee Price, MMC
Interim City Clerk
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