HomeMy WebLinkAboutItem A: City Manager Compensation
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: City Manager Compensation
Meeting Date: June 21, 2006 Agenda Item Number: A
Department: Human Resource and Risk Services Staff Contact: Lauren Chouinard
www.eugene-or.gov Contact Telephone Number: 682-5663
ISSUE STATEMENT
This is an action item to review and adjust the City Manager’s compensation.
BACKGROUND
The City Council annually evaluates the City Manager’s performance. Following the evaluation the
council reviews the City Manager’s compensation and determines what level of adjustment is
appropriate. After the City Manager’s 2005 evaluation, the City Council approved a one-step merit
increase effective April 14, 2005, and a cost of living increase equal to the non-represented employee
increase effective July 1, 2005.
RELATED CITY POLICIES
The council adopted Financial Management Goals and Policies Item F.5 states: “Consistent with
available resources, employee compensation will be market based, comparable to public and private
sector compensation paid in the relevant recruiting area.” The policy narrative additionally explains that
positions are considered to be “within market” when the rate is within a band five percent above or
below the median rate paid by surveyed agencies.
COUNCIL OPTIONS
A. Adjust the City Manager’s compensation to Step 6 of the current salary range effective, April 14, 2006.
B. Adjust the City Manager’s compensation by a cost of living adjustment of 3.2%, which is equal to
the increase given to non-represented employees, effective July 1, 2006.
C. In addition to options A and B, adjust the City Manager pay range by _____% to close the gap
between the current pay range and that of surveyed city managers. The current gap between the top
step of the City Manager’s salary and that of the average of the combined Oregon and Western
states’ surveyed city managers is 15.3%. If the council chooses to approve options A and B, it
would increase the City Manager’s salary by 7.7%, leaving a 3.6% gap between the City Manager’s
salary and the low end of market as defined by City Council-adopted policy.
D. Adjust the City Manager’s compensation by a combination of options A, B and C.
E. Make no adjustment to the City Manager’s compensation.
L:\CMO\2006 Council Agendas\M060621\S060621A.doc
CITY MANAGER’S RECOMMENDATION
None.
SUGGESTED MOTION
Move to adjust the City Manager’s compensation as described in the above-noted option(s).
ATTACHMENTS
A. City Manager compensation data
FOR MORE INFORMATION
Staff Contact: Lauren Chouinard
Telephone: 682-5663
Staff E-Mail: lauren.d.chouinard@ci.eugene.or.us
L:\CMO\2006 Council Agendas\M060621\S060621A.doc
ATTACHMENT A
Central Services
Human Resource
And Risk Services
City of Eugene
777 Pearl Street, Room 101
M
Eugene, Oregon 97401
EMORANDUM
(541) 682-5061
(541) 682-6831 FAX
www.ci.eugene.or.us
Date:
May 26, 2006
To:
Mayor Piercy and City Council
From:
Lauren Chouinard, 682-5663
Human Resource and Risk Services Director
Subject:
City Manager Compensation
Each year when you complete the City Manager’s performance evaluation you also consider a decision on
compensation. This memo and attachments give you background information for that decision.
Contract and Policy Background:
Dennis Taylor was hired as City Manager in April of 2003 and was placed at step three on the salary
range. He was moved to step four after his annual evaluation in May, 2004, and to step five after his
annual evaluation in July, 2005. All salary ranges have six steps. Dennis’ employment contract states,
“Taylor agrees and understands that increases in step are based on merit and that increases in step or
range require City Council review and approval.” The current salary range for the City Manager is as
follows:
Step 1: $106,462
Step 2: $112,237
Step 3: $120,869
Step 4: $127,171
Step 5: $133,515
Step 6: $140,192
The contract also refers to cost of living adjustments. It says, “The City Council will consider cost of
living adjustments for Taylor at the same time that other exempt employees receive cost of living
adjustments. Cost of living adjustments for the City Manager must be approved by the City Council and,
if approved, the assigned City Manager range will be adjusted accordingly.” On July 1, 2005, exempt
employees received a 2.9% cost of living adjustment. After Council approval, Dennis received the same
cost of living adjustment at that time. The July 1, 2006, exempt employee cost of living adjustment is yet
to be finalized, but will be determined in time for your deliberation on the City Manager’s salary.
City Manager Compensation History and Market Data:
As attachments, I have included a 10 year history of the City Manager’s total compensation, and a May
2006 market survey of city manager and CEO total compensation. The market data is presented in four
sorts:
A) A comparison of local public CEO total compensation. While not all city managers, this list
represents the local public sector peer group to our city manager.
B) A comparison of city manager total compensation from major Oregon cities.
C) A comparison of city manager total compensation from selected cities in western states. This list
gives you information from cities that represent the competitive market for city manager prospects.
If you have any questions about the data prior to the upcoming work session item on the City Manager’s
compensation, please call me at 682-5663.