City Manager Performance Evaluation Committee

City Manager Performance Evaluation Committee City Hall Room 302A 10 N. Division Street Battle Creek, MI 49014 Monday, September 17, 2018 3:00 p.m. Committee Members Present: Commissioners Susan Baldwin, Kaytee Faris, and Chris Simmons and Vice Mayor Sherry Sofia Committee Members Absent: Staff Present: Rebecca Fleury, City Manager; Victoria Houser, City Clerk; Nancy Mullet, Labor Attorney Call to Order: Comm. Baldwin called the meeting to order at 3:02 p.m. Public Comment: None Approval of Minutes: A motion was made by Comm. Faris, supported by Comm. Sofia, to approve the August 13, 2018 City Manager Performance Evaluation Committee minutes. All yes, none opposed. Motion approved. Feedback on Annual Performance Appraisal Comm. Simmons stated he struggled with the evaluation as he has not had a full year to work with the City Manager, stating he had nothing to compare to. Comm. Simmons stated he rated Meets Expectations for most of the evaluation items. Comm. Baldwin informed the committee that previous committee members have improved the form, ensuring equal measures were provided for each goal and competency being evaluation. Comm. Baldwin expressed appreciation that all Commissioners returned the complete evaluation document so that the City Manager could receive their direct input. Ms. Fleury noted Comm. Lance did not participate in the evaluation as he is her personal attorney and has only been a Commissioner for a short time. Full Commission’s City Manager Performance Evaluation Score Committee members reviewed the final computation score sheet, noting the score Exceeds Expectations. Performance Award Recommendation Comm. Baldwin noted Ms. Fleury’s contract does not include step increases as other non-represented staff members receive. Comm. Baldwin noted Ms. Fleury does receive the annual Cost of Living Adjustment that is given to non- represented staff members. Comm. Baldwin also noted the bonus that Ms. Fleury has received the last few years in not included in her base salary, noting the increases are a result of the annual COLA, noting the bonus has consistently been 3.5% of her salary. Committee members discussed a possible salary increase in lieu of a bonus this year, or possibly a wage increase and a smaller bonus. Committee members also reviewed information related to other municipalities’ City Manager wages, in Michigan and some mid-western municipalities. Committee members expressed a preference that a wage increase be comparable to the step increases staff has received. Ms. Fleury noted her initial salary was $125,000 annually, and currently $136,631, noting the difference included annual COLAs, not the annual bonus. Comm. Simmons expressed a preference for step increase instead of bonus, or a bonus integrated into the salary every year. Attorney Mullett reiterated that although non-represented staff receive step increases for seven years, Ms. Fleury’s contract does not include a provision for annual increases, noting other staff wages may eventually supersede her salary. Attorney Mullett noted the Committee was responsible for reviewing the City Manager’s salary annually, along with consideration of a bonus based on the results of the performance evaluation. Attorney Mullett stated the committee could adjust the annual salary in lieu of the bonus, eliminate the requirement the bonus be off schedule, 1 or make it applicable to the base salary. Attorney Mullett noted the contract language would need to be modified to provide more flexibility to the Commission. Attorney Mullett stated it was up to the discretion of the Commission to determine if the bonus should be paid as a one-time lump sum payment or added to the salary. Comm. Baldwin noted that although Ms. Fleury has received a bonus the last 3 years, the bonus has not been added to her base salary, and therefore not included in the COLA calculations each year. Comm. Baldwin noted the Kalamazoo City Manager recently received a wage increase to $159,000, noting the City of Kalamazoo is a little larger than Battle Creek. Comm. Baldwin stated Ms. Fleury has had 4 years of good reviews, stating it was time to recognize the work she has done. Comm. Baldwin also noted there is approximately $10,000 wage difference between the different job grades. Comm. Sofia agreed it was important to recognize the work she has done for the City and to value her contribution to staff and the community. Comm. Simmons expressed concern with the optics if the Committee recommended both a bonus and a salary increase. Comm. Simmons agreed the bonus was because of her staff position. Attorney Mullett noted represented staff could negotiate their wage and benefits, whereas Ms. Fleury’s contract did not include a provision to negotiate annual wage increases. Comm. Baldwin proposed the Committee consider a 5% adjustment to Ms. Fleury’s base salary, along with a 2% bonus, but not rolled into the base salary. Comm. Simmons stated he preferred a 5 – 6 % wage increase over a bonus, and to continue the annual COLA increases. Committee members discussed different percentages for a possible wage increase and an amount for the annual bonus. Committee members also discussed a small increase this year with an additional increase the following year. Committee members also cautioned that the evaluation process should not be changed, to eliminate a bonus system, expressing concern with future City Managers. Attorney Mullett noted salary increases would be going forward, while a bonus was reflective of the work for the past year. Ms. Fleury stated neither a bonus or wage increase will change the way she works, stating it was important to keep the bar high as she is one of few who receives a bonus. Comm. Faris noted a salary increase was to catch up for the years when there were no salary increases. Committee members discussed splitting the increase to salary, with 2.5% increase to the base salary on October 1, 2018, and a second increase of 2.5% on July 1, 2019, along with the 2.5% bonus to recognize the work of the prior year. Committee members also agreed review the staff base salaries in October 2019 and consider if further catch up was needed. Committee members expressed concern of committing funds for future years, expressing a preference the wage increase be 5% to the current salary, effective October 1, 2018 with a 2.5% bonus to recognize Ms. Fleury’s work for the last year. Committee members requested Attorney Mullett provided an amended contract to present to the City Commission with the resolution addressing the bonus and the wage increase. 2018-2019 City Manager Performance Goals Committee members discussed the need to schedule a workshop to set the 2018-2019 City Manager Performance Goals. Committee members also noted the City Commissioners wanted to set a workshop to discuss Commission goals, including the committees they serve on, how to conduct meetings, and key goals, such as housing, infrastructure and sustainability. Ms. Fleury agreed to contact each Commissioner to determine dates for both workshops. Committee Discussion: There was none. Next Meeting: To be determined. Adjournment: Comm. Baldwin adjourned the meeting at 4:25 pm. 2