AgdaPkt 2017-01-23 Closed and Joint

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REPORT To the Honorable Mayor and City Council From the Personnel Sub-Committee January 23, 2017 SUBJECT Salary Adjustment and Employment Agreement Amendment for the City Manager RECOMMENDATION Adopt a resolution approving and authorizing the Mayor to execute an amendment to the employment agreement for the City Manager to provide for adjustments to salary and benefits BACKGROUND Salaries and benefits for the Council-Appointed positions, including the City Manager, City Attorney and City Clerk, are reviewed by the City Council on an annual basis, typically at the time of the employee’s annual performance evaluation. Salary adjustments are made with consideration given to employee performance, total compensation relative to the City’s survey market of benchmark cities, and the current financial conditions of the City. City Manager Melissa Stevenson Diaz began her employment with the City on October 12, 2015, and her first annual performance review was completed in November 2016. ANALYSIS Following the recent performance review for the City Manager, the Personnel Sub- committee considered appropriate salary and benefit adjustments, with consideration given to the City Manager’s performance and ability to handle unique challenges during her first year of service. Further consideration was given to addressing salary compaction between the City Manager and subordinate executive staff, as well as establishing appropriate expenditure limits for professional development and personal expenses incurred while conducting business on behalf of the City. As Council seeks to reward and retain the leadership of the City by maintaining salaries in a competitive market position, the Sub-committee also recommends sufficient adjustments to meet or exceed the labor market median. The recommended changes, to be effective October 17, 2016, are as follows: 8.E. - Page 1