AgdaPkt 2003-01-13 - Laserfiche WebLink

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72 -A REPORT Tp the Honorable Mayor and City Council From the Vice Mayor Ira and Council Member Hartnett January 13, 2003 Subject City Manager compensation adjustment Recommendation To approve the adjustment for the City Manager's compensation Background The City Manager has not had a compensation adjustment since October of 2000, almost two and one half years ago. During that time he has had excellent performance ratings from the Council, culminating in another recent outstanding review. The Council has, with the agreement of the City Manager, attended to the compensation of others, and the normal and extraordinary matters the Council regularly deals with, but the past due compensation adjustments must be attended to. Given that there has been no compensation adjustment for almost two and one half years, the City Manager is approximately 21 % to 24% behind the median of City Managers in the benchmark cities we use for comparison. In accordance with precedent with all City employees, including the executive management group and labor unions, adjustments need to be made to prior anniversary dates. Furthermore, as you may know, the City Manager is eligible to have his military service equivalent PERS retirement time purchased so as to be included within his PERS years of calculation. It was anticipated that a "bonus program" would be established for the executive management team (City Manager, City Clerk and City Attorney) effective as of fiscal year 2002/2003 some what comparable to the plan that was implemented for department heads. However, though the City Manager would have been eligible for a substantial bonus bringing him well above median, given the state of the economy it is felt that it would not be appropriate to implement a bonus plan at this time. As such, it is recommended that the City Manager's compensation be merely adjusted as follows, to put him within the median range: 6% salary adjustment effective as of October 2001; 6% salary adjustment effective as of October 2002; 2% compensation adjustment effect as of March 2003, buy back of military retirement time over a three year period, with first year cost of approximately $13,601.88. Should the City Manager leave the city employ before the buy back is completed, he would be responsible for the buy back cost prorated as of the date of departure.