City memo

Date:

February 19,2013

To:

Council members

From:

Mayor Cindy Rosenthal

RE:

Evaluation of City Manager Steve Lewis & Compensation Increase

This Memorandum is to memorialize the results of the Norman City Council's discussion concerning the performance of City Manager Steve Lewis and concerning an appropriate compensation adjustment for him. The last compensation increase for the City Manager was approved on November 24, 2009. Like the prior four years, a satisfactory performance evaluation was completed on September 4,2012. Council wanted an additional performance review which was held on February 12,2013. The consensus of Council was to move forward with a compensation increase in recognition of continued satisfactory performance. An additional review on departmental goals will be scheduled at the earliest possible time with Council.

The consensus of Council was that the City Manager's compensation and benefits package be adjusted to track with AFSCME and NonUnion wage adjustments in FYEI2 and FYE13.

Specifically we discussed: I . Increasing the base salary of the City Manager by a total percent (4.9%) commensurate with AFSCME and adjustments of 3% in FYE 2012 and 1.9% in FYE 2013. are normally calculated retroactively effective on July 1st year.

of four and nine tenths NonUnion base pay These pay adjustments of the applicable fiscal

2. Additional cost of living adjustment in the form of a bonus of eighty-five hundredths of a percent (.85%) or a gross amount of$I,398 reflective of what was granted to AFSCME and NonUnion for FYE 2013; 3. No other changes to the contract are required, so that all other employment benefits provided under the City Manager's current contract as amended should be extended at their current contractual levels/amounts.

I asked our City Attorney to review these recommendations and advise if he thought there were additional issues that should be considered. He has pointed out that Council can make the base pay adjustments retroactive to July I, 2012, but not to prior fiscal years. Thus the proposed pay adjustment for the City Manager actually leaves him approximately $5,418 short of comparable treatment of AFSCME and NonUnion compensation adjustments because of the failure of Council to increase the Manager's pay in FYEI2. As a matter of equity, we may wish to add to the one time stipend to close that gap. Attached to this memorandum are comparison calculations. I welcome your input.

Memo to Council members

Re: Evaluation and Compensation of City Manager February 19, 2012 Page 2 of2

Please review this infonnation and then let me know what direction you would like to move.

The calculations were helpful for me to ensure that we are not inadvertently giving the City Manager a lower compensation adjustment than what was granted AFSCME & NonUnion employees. Once I make sure Council has reached consensus on the City Manager compensation adjustment, then the City Manager's compensation, by Charter, must be set by Ordinance. Accordingly, I will be requesting that the Clerk schedule first reading of the Ordinance for March 12th , and second reading of the Ordinance for March 26 th along with the Contract Amendment item.

Xc

Steve Lewis, City Manager Jeff Harley Bryant, City Attorney Brenda Hall, City Clerk

City Manager Compensation Suggested basis

1. COLA Wage adjustment commensurate with AFSCME & NonUnion adjustments FYE12 & FYEl 2. COLA Wage adjustment to be applied all at once, effective 12/1/2012 3. City Manager to also be eligible for stipend granted to AFSMCE & NonUnion for FYE12 AFSCME & NonUnion Wage Adjustments FYE11

no COLA, no merits, 7 furlough days (2.7% reduction)

FYE 12 FYE 13

3% effective 7/1/11 1.9% effective 7/1/12

plus .85% stipend

Compensation if adjusted as noted above FYE11

Base Salary Deferred Comp

Revised Total furlough adjustment deferred comp adj.

Total adjustment

$ $ $

$ $ $ $

7/1/2010 156,832 20,388

FYE12

S $

7/1/2011 156,832 $ 20,388 $

177,220 172,449 (4,222) (549) (4,771)

Base Sa lary Deferred Comp

$ $

Total less furlough adjmts

S S

Revised Total

$

172,449

furlough adjustment

S

deferred comp adj.

Tota l adjustment

$ $

(4,222) (549)

S

7/1/2012 164,517 21,387 13% 185,904 1,398 .085% Stipend

$

187,302

$

$

177,220

two year total

Compensation if adjusted like AFSCME & NonUnion FYE11 7/1/2010 156,832 20,388 177,220 (4,771)

FYE13 4.9% COlA

FYE12

FYE13

3% COLA

1.9% COLA

s s

7/1/2011 161,537 21,000

$

182,537

$ 364,523

S S S S

7/1/2012 164,606 21,399 13% 186,005 1,399 .085% Stipend

$

187,404

two year total

S

369,941

$

(5,418)

(4,771) Difference in approaches