HomeMy WebLinkAboutItem C: City Manager Evaluation Follow-Up
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: City Manager Evaluation Follow-Up
Meeting Date: September 27, 2010 Agenda Item Number: C
Department: Central Services-Human Resources Staff Contact: Denise Smith
www.eugene-or.gov Contact Telephone Number: 541-682-5731
ISSUE STATEMENT
This agenda item is a work session on a new performance rating system for the City Manager as well as to
look at a standard formula for compensation.
BACKGROUND
City Manager Jon Ruiz had his annual performance review on July 26, 2010. At that time the council
discussed looking at a new performance rating system as well as a new compensation structure for the
City Manager. The council directed staff to draft a compensation proposal which includes a new
performance rating system and a connection to annual compensation adjustments.
Attached are two documents for council review. The first document – Attachment A - outlines a proposed
three-tier rating system to be used in future evaluations of the City Manager. Definitions are also
provided to ensure consistency and common understanding of the ratings.
The second document – Attachment B - provides a new compensation formula to determine future salary
increases for the City Manager based on his performance, while providing a consistent application based
on ratings.
RELATED CITY POLICIES
The City Council has historically conducted an annual performance review and compensation adjustment
for the City Manager. This process is a continuation of the July26, 2010, process for City Manager Ruiz.
COUNCIL OPTIONS
Review and adopt the rating system proposed in Attachment A.
Adopt alternate rating system.
Review and adopt the compensation structure outlined in Attachment B.
Adopt alternate compensation structure.
Other related items the council determines appropriate.
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CITY MANAGER’S RECOMMENDATION
The City Manager recommends acceptance of the ratings definitions and compensation formula.
SUGGESTED MOTION
Move to (a) approve the ratings definitions in Attachment A, the compensation amendment to the City
Manager’s contract in Attachment B, and (b) direct the Council President to sign the amendment to the
City Manager’s contract attached as Attachment C.
ATTACHMENTS
A.City Manager Proposed Performance Review Ratings
B.City Manager Proposed Performance Review Compensation Adjustment
C. Proposed First Amendment to Employment Contract
FOR MORE INFORMATION
Staff Contact: Denise Smith, Human Resources
Telephone: 541-682-5731
Staff E-Mail: denise.d.smith@ci.eugene.or.us
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ATTACHMENT A
City Manager Proposed Performance Review Ratings
Fair value=1
Performance meets acceptable standards, expectations, and requirements
The employee requires an appropriate amount of direction from Council to achieve organizational goals.
Initiative and outputs are generally adequate, and the employee is capable and knowledgeable in most
aspects of his or her work
Employee is expected to continue development of new knowledge, skills or abilities
The employee meets job performance standards in all or most areas.
Good value=2
This is the level of good, sound performance. The employee has contributed positively to organizational
goals.
The employee is reliable in attaining expected results, and is timely and efficient.
Consistently meets standards and expectations, regularly exceeds them, and shows initiative in additional
assignments
Employee strives to grow professionally through development activities
Solid performance that consistently fulfills expectations and at times may exceed expectations.
The employee has exceeded expectations in critical areas and shows sustained support of
organizational goals.
Demonstrates very high level performance in all areas of responsibility.
Excellent value=3
Performance is noticeably superior; outstanding performance is clearly evident; performance is at a level
that is a “stretch”
Performance shows exceptional initiative to plan and anticipate problems, and employee takes
appropriate independent action
This is a level of very high-quality performance. The employee has performed so well that organizational
goals have been achieved that would not have been otherwise
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ATTACHMENT B
City Manager Proposed Performance Review
Compensation Adjustment
Pursuant to section 5 of the amended Employment Agreement, the City Manager’s salary shall be
adjusted as provided below. This adjustment shall be in addition to any cost of living adjustment
provided by section __ of the Employment Agreement.
Calculation of value of ratings:
# of raters X value of each rating category added together= overall value (Values: fair = 1, good = 2 and
excellent = 3.)
Overall value divided by # of participants= Weighted average
Weighted average % increase
range
1-1.5 0%
1.6-2.5 3.5%
2.5-3 5%
Example:
Fair ratings = 2 2 X 1=2
Good ratings = 3 3 X 2=6
Excellent ratings = 3 3 X 3=9 Total=17 divided by 6 respondents = 2.8
Compensation increase would be 5% based on the table above
Additionally, the annual deferred compensation would be adjusted as follows, as long as performance has
a rated average of 1.6 to 3:
July 1, 2012 - +$2,000
July 1, 2013 - +$2,000
July 1, 2014 - +$3,000
July 1, 2015 - +$3,000
July 1, 2016 - +$5,000
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ATTACHMENT C
First Amendment to
EMPLOYMENT AGREEMENT
BETWEEN:
The City of Eugene (City)
AND:
Jon R. Ruiz (Ruiz)
RECITALS:
A.
In February of 2008, the City and Ruiz (“the parties”) entered into an Employment
Agreement and agreed upon the terms of Ruiz’s employment as City Manager.
B.
The parties wish to amend the terms of the 2008 Employment Agreement regarding
performance evaluations and salary adjustments.
AGREEMENTS:
1.
The parties agree to amend paragraph 5 of the 2008 Employment Agreement to read as
follows:
“5. Performance Evaluations and Salary Adjustments. The City Council intends to
review and evaluate Ruiz’s performance and salary annually, generally in April.
The City Council may conduct additional reviews of Ruiz’s performance at any
other time it deems appropriate. Adjustments to salary (other than COLAs
governed by section 4.2) and deferred compensation shall occur as provided in
Exhibit I attached to this Amendment.”
2.
All other terms and conditions of the 2008 Employment Agreement remain in full force
and effect.
CITY OF EUGENE, OREGON
By: ______________________________ _____________________________
Mike Clark Jon R. Ruiz
President of the City Council
Date: ______________________________ Date: _______________________
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Exhibit 1
City Manager Performance Review Compensation Adjustment
Pursuant to section 5 of the amended Employment Agreement, the City Manager’s salary shall be
adjusted as provided below. This adjustment shall be in addition to any cost of living adjustment
provided by section 4.2 of the Employment Agreement.
Calculation of value of ratings:
# of raters X value of each rating category added together= overall value (Values: fair = 1,
good = 2 and excellent = 3.)
Overall value divided by # of participants= Weighted average
Weighted average % increase
range
1-1.5 0%
1.6-2.5 3.5%
2.5-3 5%
Example:
Fair ratings = 2 2 X 1=2
Good ratings = 3 3 X 2=6
Excellent ratings = 3 3 X 3=9 Total=17 divided by 6 respondents = 2.8
Compensation increase would be 5% based on the table above
Additionally, the annual deferred compensation would be adjusted as follows, as long as performance has
a rated average of 1.6 to 3:
July 1, 2012 - +$2,000
July 1, 2013 - +$2,000
July 1, 2014 - +$3,000
July 1, 2015 - +$3,000
July 1, 2016 - +$5,000
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