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Home My WebLink AboutItem A: City Manager Cost of Living Adjustment and Merit Increase ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: City Manager Cost of Living Adjustment and Merit Increase Meeting Date: June 13, 2007 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 a work session for the purpose of reviewing the City Manager’s compensation. BACKGROUND The City Council annually reviews the City Manager’s compensation and determines what level of adjustment is appropriate. The City Manager salary range is comprised of six steps. In June 2006, the City Council approved a merit increase effective on the City Manager’s hire date of April 14. The increase was less than a full step, leaving him just short of the full salary for Step 6. In addition, he was granted a cost of living increase of 3.2% which was equal to the non-represented employee increase effective July 1, 2006. The manager’s annual base salary is currently $142,416. The top of the City Manager range at Step 6 is currently $144,678. Granting the City Manager the final portion of the sixth step on the range and a 3.2% cost of living adjustment that will be given to all non-represented employees on July 1, 2007, would bring his base salary to $149,308. 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. Per the City Manager’s employment contract section B 4.1: “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 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.” L:\CMO\2007 Council Agendas\M070613\S070613A.doc COUNCIL OPTIONS A. Adjust the City Manager’s compensation to the full salary for Step 6 of the current salary range effective April 14, 2007. B. Adjust the City Manager’s compensation by a cost of living adjustment of 3.2%, which is equal to he increase that will be given to non-represented employees effective July 1, 2007. C. Adjust the City Manager’s compensation by a combination of options A and B. D. Make no adjustment to the City Manager’s compensation. CITY MANAGER’S RECOMMENDATION None. SUGGESTED MOTION Move to adjust the City Manager’s compensation as described in option(s) ______. ATTACHMENTS A. City Manager 2007 market compensation data FOR MORE INFORMATION Staff Contact: Lauren Chouinard Telephone: 682-5663 Staff E-Mail: lauren.d.chouinard@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070613\S070613A.doc City Manager Salary Survey 2007April 2007 Oregon Jurisdictions by Population City Paid Annual City Employee Perqui- Total Actual JurisdictionPop. Reg.# EEs Job Title Actual or Max Def Comp Auto Allow Budget Portion 6% to sites Comp PERS 1 157,943$ 170,208 1,158.85 $ 435.00 City Manager $ 145,543 $ 17,465 $ 7,200 Vancouver, WA Salem, OR 147,255 1,216.85 $ 472.29 City Manager $ 125,179 $ 12,518 $ 4,200 $ 7,511 $ 149,408 Gresham, OR 98,000 540.00 $ 296.90 City Manager $ 112,262 $ 4,800 $ 6,736 $ 123,798 2 84,445$ 149,488 597.00 $ 312.00 City Manager $ 148,008 $ 1,480 Hillsboro, OR Bend, OR 75,290 541.00 $ 201.00 City Manager $ 126,829 $ 15,000 $ 4,800 $ 7,610 $ 154,239 3 $ 157,824 73,630 450.00 $ 184.33 City Manager $ 127,205 $ 11,488 $ 6,000 $ 8,679 $ 4,452 Medford, OR Springfield, OR 56,000 424.25 $ 262.55 City Manager $ 142,961 $ 5,200 $ 4,800 $ 152,961 4 53,900$ 179,266 438.68 $ 100.61 City Manager $ 142,277 $ 17,852 $ 3,600 $ 8,537 $ 7,000 Corvallis, OR Oregon Average $ 133,783 $ 13,254 $ 5,057 $ 7,814 $ 4,311 $ 154,649 Oregon Median $ 134,741 $ 13,759 $ 4,800 $ 7,610 $ 4,452 $ 153,600 5 $ 142,418 $ 6,000 $ 4,200 $ 8,545 $ 480 $ 161,643 150,690 1,547.38 $ 442.30 City Manager Eugene Eugene +/- of Oregon Survey Market - AVERAGE 6.06%-120.90%-20.41%4.33% Eugene +/- of Oregon Survey Market - MEDIAN 5.39%-129.32%-14.28%4.98% Footnotes: 1 Vancouver,WA: Included in OR jurisdictions due to geographic proximity; Biennial budget; increase determined for 6/1/07 for $152,820 base sa lary 2 Hillsboro: No auto allowance but provided exclusive use of auto; Maximum salary shown with step increase for PERS employee contribution pick up by city; 1% MSA-VEBA provided 3 Medford: Additional $4,452 MSA-VEBA provided ; Biennial budget 5 Corvallis: PERS pick-up only for City Manager; $7,000 is Retirement Health Savings Account 6 Eugene: Actual pay shown; maximum pay is $144,684; perquisites is cell phone allowance; demographics are FY08 budget information Beaverton excluded - Mayor form of government Created: April 2007 Page: 1S070613A-attA.xls Printed: 6/7/2007 City Manager Salary Survey 2007April 2007 Outside Oregon Jurisdictions by Population City Paid Annual City Employee Perqui- Total Actual JurisdictionPop. Reg. # EEs Job Title Actual or Max Def Comp Auto Allow Budget Portion of sites Comp Retirement 1 212,000 1,947.00 $ 456.30 City Manager $ 246,462 $ 12,323 $ 12,000 $ 270,785 Reno, NV 2 198,100 3,271.00 $ 2,097.67 City Manager $ 193,253 $ 6,600 $ 199,853 Tacoma,WA 3 165,000 1,640.00 $ 510.84 City Manager $ 199,980 $ 27,997 $ 227,977 Tempe, AZ 4 139,908 1,197.00 $ 464.00 City Manager $ 159,730 $ 4,792 $ 9,000 $ 173,522 Fort Collins, CO 5 118,205 1,284.50 $ 560.90 City Manager $ 199,594 $ 12,710 $ 5,400 $ 14,350 $ 232,053 Bellevue, WA Boulder, CO103,216 1,260.00 $ 223.56 City Manager $ 161,250 $ 161,250 Redding, CA 89,362 899.00 $ 248.00 City Manager $ 181,560 $ 6,000 $ 12,709 $ 200,269 Outside Oregon Average $ 191,690 $ 14,455 $ 7,800 $ 13,529 $ 209,387 Outside Oregon Median $ 193,253 $ 12,516 $ 6,600 $ 13,529 $ 200,269 6 $ 142,418 $ 6,000 $ 4,200 $ 8,545 $ 480 $ 161,643 150,690 1,547.38 $ 442.30 City Manager Eugene Eugene +/- of Outside Oregon Survey Markets - AVERAGE -34.60%-140.92%-85.71%-29.54% Eugene +/- of Outside Oregon Survey Market - MEDIAN -35.69%-108.60%-57.14%-23.90% Eugene +/- of Combined Oregon and Outside Oregon Survey Markets (pages 1 -14.27%-130.91%-53.06%-12.61% and 2) - AVERAGE Eugene +/- of Combined Oregon and Outside Oregon Survey Markets (pages 1 -15.15%-118.96%-35.71%-9.46% and 2) - MEDIAN Footnotes: 1 Reno, NV: No employee contribution requirement for retirement, city pays entire retirement contribution 2 Tacoma, WA: Biennial Budget 3 Tempe, AZ: Maximum pay shown (actual - $186,980); no auto allowance but provided new full-size car every 2 years 4 Fort Collins, CO : No employee contribution requirement for retirement, city pays entire retirement contribution 5 Bellevue,WA: Opted out of PERS for City Manager and provides 401k based retirement program Boise, ID; Everett, WA; and Spokane, WA excluded: Mayor Form of Government; Spokane has City Administrator but not same level of responsibility as Eugene City Manager Created: April 2007 Page: 2S070613A-attA.xls Printed: 6/7/2007 City Manager Salary Survey 2007April 2007 Local Eugene/Springfield Employers City Paid Annual Employee Perqui- Total Actual JurisdictionPop. Reg. # EEs Job Title Actual or Max Def Comp Auto Allow Budget Portion of sites Comp Retirement EWEB 491.00 $ 129.70 General Manager $ 198,343 $ 9,917 $ 4,800 $ 11,901 $ 224,961 1 1,515.00 $ 313.50 Superintendent $ 134,964 $ 21,600 $ 6,000 $ 8,098 $ 6,748 $ 177,410 4J School District County Lane County, OR339,740 1,528.00 $ 492.83 $ 120,619 $ 1,206 $ 5,820 $ 7,237 $ 134,882 Administrator 2 Lane Community 1,118.00 $ 82.01 President $ 155,369 $ 12,500 $ 9,322 $ 16,800 $ 193,991 College 3 325.00 $ 59.51 General Manager $ 125,358 $ 7,521 $ 4,800 $ 16,673 $ 154,352 LTD 4 Springfield School 1,200.00 $ 116.49 Superintendent $ 122,340 $ 8,580 $ 4,800 $ 7,340 $ 143,060 District Local Employer Average $ 142,832 $ 10,221 $ 5,244 $ 10,095 $ 171,443 Oregon Median $ 130,161 $ 9,249 $ 4,800 $ 8,710 $ 165,881 6 $ 142,418 $ 6,000 $ 4,200 $ 8,545 $ 480 $ 161,643 150,690 1,547.38 $ 442.30 City Manager Eugene Eugene +/- Local Employer Survey Market - AVERAGE -0.29%-70.35%-24.86%-6.06% Eugene +/- Local Employer Survey Market - MEDIAN 8.61%-54.14%-14.28%-2.62% Eugene +/- All Survey Markets Combined -9.61%-110.72%-43.66%-10.42% (pages 1, 2 & 3) - AVERAGE Eugene +/- All Survey Markets Combined -7.23%-97.35%-28.57%-7.18% (pages 1 and 2) - MEDIAN Footnotes: 1 4J School District: $20,400 is TSA; perquisites is performance bonus (5%) 2 Lane Community College: No auto allowance but is provided a college vehicle; perquisites is $12,000 discretionary expense account and $4,800 TSA; Part time employees not included in EE count 3 LTD: N o PERS but contribution to a deferred compensation style plan that district contributes on behalf of all employees 4 Springfield School District: Negotiations on-going on superintendent's new contract - information shown for 2006 Bethel School District - Did not include due to much smaller budget and employee size Created: April 2007 Page: 3S070613A-attA.xls Printed: 6/7/2007