Item Coversheet

CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT


A
GENDA ITEM NO. 17

MEETING DATE: 6/16/2021
PREPARED BY: 

Lori I Day, Director

Human Resources & Administrative Services

DEPARTMENT HEAD APPROVAL:  HUMAN RESOURCES
SUBJECT: City Manager Performance Evaluation 2021
1.BACKGROUND/HISTORY
    
 

Issue Statement:  Section 3.1 of the City Manager’s contract provides that performance evaluations will take place “in June, beginning in June 2016 utilizing a process, form, criteria and format for the evaluation which shall be agreed upon by members of the Commission in consultation with the City Manager.” Section 3.2 of the contract states that “In conjunction with any review of performance, the Commission may increase the base salary and/or other benefits of City Manager in such amounts and to such extent as the Commission may determine is proper.”

 

Recommended Action: After discussion at the May 5 meeting, the City Commission was provided a performance evaluation form for the City Manager.  Evaluation forms from the City Commission have been submitted to City Commission members for completion. (copy attached).

 

In 2014, the City began recruitment for a new City Manager to replace retiring City Manager John Stunson. Its executive recruiting firm released a brochure that touted the position to draw qualified candidates. The brochure included the following language: "The City Commission has established a range for the compensation package to be between $180,000 and $225,000 per year. Candidates need to be aware that this excludes standard benefits provided to all employees such as health insurance premiums for the employee paid by the City. All standard benefits afforded all other City employees will be provided to the City Manager and will not be deducted from this compensation package."

 

On August 28, 2014, the City Commission appointed David Hebert as City Manager. On September 10, 2014, an employment agreement was approved which included provisions for an annual review. The initial employment agreement provided for a base salary of $170,000 per year ($10,000 less than the lower salary advertised)*, ten weeks of severance pay, and 160 hours of paid time off (PTO) per year. Rather than allow the City Manager to participate in the Florida Retirement System (a defined benefit plan) or participate in the City's health insurance, the City instead contributed $27,000 per year into an ICMA-RC deferred retirement account. See attached Initial Employment Agreement and all subsequent amendments. Note that all other new employees are afforded the option of FRS membership in a defined benefit plan that provides guaranteed benefits for life, as opposed to the defined contribution plan that was provided. The City Manager's inability to join FRS at the time of his employment now precludes him from joining FRS.

 

Subsequent amendments to the Employment Agreement were executed with City Commission approval on October 21, 2015 (date for future evaluations, City Manager residence), July 6, 2016 (changing the contribution rate for the City's ICMA-RC account to be the same as the City's Senior FRS City contribution that is provided for department directors), June 7, 2017 (increasing the City Manager's annual PTO hours to 240), and on June 12, 2019 (providing that the City Manager may elect to be covered by the City's health insurance like all City employees or be provided with monetary equivalent of the City's normal contributions for health or wellness purposes). See attached Employment Agreement Amendments.

 

Attached to this item are transcripts from all previous Commission evaluations of the City Manager from 2015 to 2020.  Additionally, in February 2020 the City Manager participated in the comprehensive ICMA Concord Performance Based Assessment designed to gather feedback from individuals who have observed his performance in the workplace and evaluated his leadership skills.  

 

The City Commission has not adjusted the City Manager's base salary at any time since the initial employment agreement was executed, nor has the City Manager been entered into a defined benefit retirement plan. The only increases in salary since that time have been the result of cost- of-living adjustments provided to all City employees. The City Manager's current base salary is $207,048.

 

*Had the City Manager been hired at the stated $180,000 minimum he would have earned an estimated additional $92,000 in compensation over the tenure of his service.

2.CURRENT ACTIVITY
    
 

The City Manager's initial compensation package did not include provisions for a cell phone allowance, a vehicle allowance, or health insurance. While it did provide for a contribution to an ICMA-RC account, the amount of that contribution was not equal to what would have been provided had the City Manager been permitted to join the Florida Retirement System. Additionally, all City employees are either members of the Florida Retirement System, or are receiving contributions to a deferred compensation account equivalent to FRS contribution rates, and therefore amounts dedicated to pensions should not have been included in the total compensation package per the terms of the recruitment brochure. The initial compensation amount of $170,000 was less than the advertised minimum of $180,000.

 

It has long been the policy of the City to regularly evaluate the salaries of its employees and compare these to other Broward municipalities in an effort to remain competitive in the marketplace. In May 2021, Human Resource Compensation Consultants (HRCC) prepared a survey of City Manager compensation packages for comparable Broward County cities (survey results attached).  The results of that survey will be presented by HRCC and will show that the City Manager's compensation package is among the less competitive of the group despite him having more tenure than most of the other City Managers surveyed.

 

Section 3.1  of the City Manager’s contract provides that performance evaluations will take place “in June, beginning in June 2016 utilizing a process, form, criteria and format for the evaluation which shall be agreed upon by members of the Commission in consultation with the City Manager.” Section 3.2 of the contract states that “In conjunction with any review of performance, the Commission may increase the base salary and/or other benefits of City Manager in such amounts and to such extent as the Commission may determine is proper.”

3.FINANCIAL IMPACT
    
 

Any adjustments approved by the City Commission would be accommodated in the current year's budget and would be budgeted for in FY 2022.

4.RECOMMENDATION
    
 City Commission discussion and direction.
ATTACHMENTS:
Description
CM Evaluation Form
CM Employment Agreement with Ammednments
CM Evaluation Transcripts 2015-2020
HRCC Survey Results