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HomeMy WebLinkAboutStaff Report 7480 City of Palo Alto (ID # 7480) City Council Staff Report Report Type: Consent Calendar Meeting Date: 12/12/2016 City of Palo Alto Page 1 Summary Title: Amendment to Council Appointed Officers' Employment Agreements Title: Adoption of Annual Amendments to the Employment Agreements Between the City of Palo Alto and Council Appointed Officers' (City Manager, City Attorney, City Auditor and City Clerk) From: City Manager Lead Department: Human Resources Recommended Motion Staff recommends that Council consider the following motion: Approve and authorize the Mayor to execute the following contract amendments for Council Approved Officers: 1) Amendment No. Six to Employment Agreement between the City of Palo Alto and James R. Keene; 2) Amendment No. Four to Employment Agreement between the City of Palo Alto and Molly S. Stump; 3) Amendment No. 2 to Employment Agreement between the City of Palo Alto and Harriet M. Richardson and, 4) Amendment No. 2 to Employment Agreement between the City of Palo Alto and Beth D. Minor. Recommendation The City Council has completed annual merit reviews for Council Appointed Officers (CAOs) for the prior fiscal year’s performance (FY2015/16). Staff has been directed by City Council to forward amendments to employment agreements to implement merit-based increases to the CAO’s annual salaries, effective July 1, 2016, as follows: City Manager James R. Keene, Jr., merit increase of 4.75% from $285,002.00 to $298,542.40 (Attachment A); City Attorney Molly S. Stump, merit increase of 4.75% from $258,419.00 to $270,712.00 (Attachment B); City Auditor Harriet Richardson, merit increase of 4.0% from $173,368.00 to $180,315.20 (Attachment C); and City Clerk Beth Minor, merit increase of 3.5% from $136,365.00 to $141,148.80 (Attachment D). Discussion City of Palo Alto Page 2 In accordance with the CAO employment agreements, the City Council evaluates performance and determines any merit-based salary increases at the conclusion of each fiscal year, with an effective date of July 1. The evaluation process begins in approximately May of each year but often takes several months to complete, as it is an extensive process with multiple steps. Since 2014, City Council has obtained facilitation services from the Municipal Resources Group (MRG) to assist with the annual process. MRG’s role includes conducting interviews and surveys, collecting data and facilitating closed session discussions. The CAO employment agreements do not include provisions for general wage or other adjustments provided to other management employees. Thus, the merit-based pay increase for each CAO described in this memo is the only annual increase to be provided. All other terms and conditions of the employment agreements remain the same. Resource Impact Funding is availble for the additional cost in the FY2017 approved budget. Environmental Review Approval of this amended employment agreements will not result in any environmental impacts. Attachments:  Attachment A: Amendment No. Six to Jim Keene Employment Agt (PDF)  Attachment B: Amendment No. Four to Molly Stump Employment Agt (PDF)  Attachment C: Amendment No. Two to Harriet Richardson Employment Agt (PDF)  Attachment D: Amendment No. Two to Beth Minor Employment Agt (PDF)  Attachment E: 2017 Council and CAO Salary Schedule (PDF) Job Code FLSA Status Group Classifications Hourly Rate Monthly Annual Salary Effective the Pay Period including 1 Exempt Council Council Person $5.77 $1,000.13 12,001.60$ 1/1/2017 2 Exempt CAO City Manager $143.53 $24,878.53 298,542.40$ 7/1/2016 3 Exempt CAO City Attorney $130.15 $22,559.33 270,712.00$ 7/1/2016 4 Exempt CAO City Auditor $86.69 $15,026.27 180,315.20$ 7/1/2016 5 Exempt CAO City Clerk $67.86 $11,762.40 141,148.80$ 7/1/2016 City of Palo Alto Councilperson and Council Appointed Offical Salary Schedule