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.