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HomeMy WebLinkAboutMemo - Mail Packet - 5/3/2022 - Memorandum From Teresa Roche Re: Follow Up: April 18 Council Compensation And April 7 Council Finance Committees Human Resources Department 215 N. Mason, 2nd Floor Fort Collins, CO 80522 970.221.6535 DATE: April 28, 2022 TO: Mayor and City Councilmembers FROM: Teresa Roche, Human Resources RE: Follow Up: 4/18 Council Compensation and 4/7 Council Finance Committees _____________________________________________________________________ I hope each of you is well. Follow Up from April 18 Council Compensation: • The draft minutes from the April 18 Compensation Committee meeting. • Revised slides from hrQ on Council Compensation Analysis—there was a request at the meeting to also display compensation benchmarks by mean; slides 10, 12, and 14 are new. • Julie and I are meeting to finalize the May 24 agenda; however, at the last meeting, we decided that hrQ will present the “cost of living analysis” analysis. Follow Up from April 7 Council Finance Committee: • Kelly asked if our compensation philosophy was a Council policy or admin policy. I said the latter as that is all I knew since joining the City and committed to learning more. I too was curious. The follow-up research entailed reviewing all the ordinances and resolutions online related to compensation and the pay plan. I have documents going back to 1970 on the pay plan adoption and 1990, 1992, and 1993 for the total compensation policy. It was very specific and generous on competitive positioning. • Before additional time is invested, it will be helpful to know what next and if there is a specific request from the Council for the Council Compensation Committee or me. TR Compensation Policy Committee April 18, 2022, 3:30 – 4:30 p.m. Meeting Minutes Members in attendance: Councilmember Susan Gutowsky; Councilmember Shirley Peel; Councilmember Julie Pignataro, Chair Staff in attendance: Kelly DiMartino, Interim City Manager; Kyle Stannert, Deputy City Manager; Teresa Roche, Human Resources; Carrie Daggett, City Attorney; Kelley Vodden, Director of Compensation, Benefits, and Wellness; Melanie Clark, Executive Administrative Assistant; Wendy Bricher Finance Analyst; Steve Engemoen, Senior Compensation Analyst Presenter in attendance: Brian Wilkerson, hrQ The Compensation Policy Committee (Committee) meeting was held on April 18, 2022, virtually through a Zoom webinar. Agenda • Call Meeting to Order • Approve Minutes from March 21, 2022 • Discussion Items: o Review hrQ Presentation on Updated Analysis on Council Pay and Benefits o Decide on the next steps • Adjournment Next Meeting: May 24, 2022, 3:30 to 4:30 p.m. The meeting began at 3.36 p.m. Councilmember Shirley Peel moved to approve the minutes from March 21, 2022. Councilmember Julie Pignataro seconded the motion. Approval was 3-0. Bottom line: The committee appreciated the analysis and asked for additional information. They wanted time to reflect on what they believe the subsequent right actions are for Council to consider, and the topic is on the May meeting. Brian Wilkerson shared the results of the City Council Compensation and Benefits Benchmark Study. The comparison survey included peer cities as well as front-range cities. Brian shared annual compensation comparisons for the Mayor. He explained that there was no correlation found between a city's population or area size to the number of Councilmembers. Colorado Springs was not included due to the different form of government. Councilmember Pignataro asked why they chose the median instead of the mean data. She stated that it would be helpful to see everything. Brian explained that the statisticians felt the median was a more accurate reflection of the date.; however, he will gladly update the slides. Councilmember Pignataro did not see the number of constituents per Councilmember in the data. Brian shared that they did not find consistent data or a typical pattern identified. Brian shared that Fort Collins has the lowest compensation level for City Council among the peer cities in the study, and two cities along the front range are lower than Fort Collins. The survey also showed that four cities report a higher salary for the Mayor Pro Tem than other Councilmembers. Fort Collins is also unique in that community members must vote on changes to how the salaries are considered for Council compensation. Councilmember Gutowsky had asked earlier what the current method was, and Teresa researched this. She shared that Charter Article II Section 3 provides an annual compensation adjustment for the Mayor and Council based on changes to the Consumer Price Index Urban (CPI-U) and shared she has the salary data from 2011 through 2022 if anyone is interested. The survey found that Fort Collins is in alignment with expense reimbursements. Participation in benefits was available in five peer cities and three Front Range cities. In almost all cases, the elected officials did not take advantage of the benefits. Additionally, other benefits beyond the employee offerings were not found. Councilmember Pignataro asked about the cost of healthcare for City employees. She asked if any of the benefits allowed for an expanded family or if it was only for the individual. Brian stated that from what he could remember, they offered to the Councilmember only, and the trend was they paid the entire cost of the premium. Councilmember Susan Gutowsky believed that it would be awkward if the benefit totaled their full compensation and that it would end once their term ended. Teresa shared under the Consolidated Omnibus Budget Reconciliation Act (COBRA) that health coverage starts from the date the covered employee's health insurance ends and, depending on the type of qualifying event, may last for 18 months, 29 months, or 36 months. Brian shared they found that discussions about pay often triggered broader conversations in the community regarding Council duties and accountabilities. He explained that the responsibilities of the Mayor and City Council are most often outlined in the City Charter and noted several cities have gone to the effort of expanding on those outlines and have listed specific duties, requirements, and expectations of the roles in either job descriptions, a manual or brochure. Teresa explained that Brian had shared a couple of position descriptions he received as part of having these conversations and is happy to share these if there was interest. Councilmember Gutowsky believes that it would be helpful to have an expanded list of duties for future Councilmembers and will be asking that Council do this. Brian shared that most who went through this process felt like it was a worthwhile exercise and found conversations with members of the public were helpful. Councilmember Shirley Peel asked what led to the decision in November 2010 for the community to vote to change the form of our city government from a council-manager form of government to a council-mayor structure. Brian shared that he believes the population size may have had something to do with it, though Kyle Stannert explained he was not aware of the population being a trigger that led to this change by the voters. Teresa asked the committee members what they wanted to consider with this information. Councilmember Pignataro stated that she is interested in getting a more diverse Council in the future and was hoping the survey would bring forward more concrete conclusions. She is not sure where she wants to go from here. Councilmember Peel shared that she went into this with the idea of making it feasible for more people to be able to serve on the Council. She is disappointed by the results. Councilmember Peel feels that it has highlighted the need to have a job description to point out the time it takes and the expectations. Councilmember Peel shared that Colorado Springs is an interesting idea and wondered at what point we need a stronger Mayor form of government. She feels that being on Council is a full-time job. Councilmember Pignataro stated they might want to consider when other communities have transitioned to a strong mayor form of government. Councilmember Gutowsky is not supportive of the idea of benefits and is uncomfortable with the assumptions that if more pay or benefits were offered, it would bring more diversity to Council and who is running. She believes that knowing Councilmembers' requirements and letting people know they can make it work would be a draw for people. She would like to consider making the campaign process shorter and lowering costs. Councilmember Pignataro clarified that she did not mean to imply that benefits would draw diversity to the Council. She was coming from her personal experience with being on Council. Councilmember Gutowsky wants to be sure their salary is not such that the community expects full-time work from Councilmembers. Councilmember Pignataro would like to touch base on this again in May. The meeting adjourned at 4:30 p.m. City of Fort Collins City Council Compensation Benchmark Study April 2022 •City Council Structure •Annual Compensation •Reimbursements/Allowances •Benefit Eligibility •Documentation of Council Duties Topics 2 •Data was collected in March 2022 via virtual meetings with City Human Resources employees, via email and online research. List of Cities in Benchmark Study Peer Cities •Wilmington, NC •Naperville, IL •Asheville, NC •Greensboro, NC •Oklahoma City, OK •Eugene, OR •Plano, TX Front Range Cities •Arvada •Greeley •Colorado Springs •Thornton •Loveland •Lakewood 3 Cost of Living Comparison Survey Cities Source: US Census Bureau; smartasset.com Total Taxes Housing Food Asheville, NC 83,393 94,589 13.4%-8%3%-19%-14% Eugene, OR 156,185 176,654 13.1%-2%18%-13%-4% Greensboro, NC 269,666 299,035 10.9%-3%3%-9%-11% Naperville, IL 141,853 149,540 5.4%7%4%14%-4% Oklahoma City, OK 579,999 681,054 17.4%5%2%-13%-12% Plano, TX 259,841 285,494 9.9%-4%-16%0%-8% Wilmington, NC 106,476 115,451 8.4%1%3%1%-8% Arvada 106,781 124,367 16.5%similar 0%0%0% Colorado Springs 420,691 479,257 13.9%-5%0%-11%-3% Greeley 93,156 109,084 17.1%-6%0%-14%-4% Lakewood 143,294 156,195 9.0%similar 0%0%0% Loveland 67,000 76,341 13.9%similar 0%0%0% Thornton 119,753 142,118 18.7%similar 0%0%0% Fort Collins 144,461 169,810 17.5% COL Compared to Fort Collins City 2010 Population 2020 Population % Change in Population 4 Study Results 5 Confidential •City Council sizes range from 5 to 10 members, with 5 of the 14 cities in the study having 8 members; there is no correlation between a city’s population or area size to the number of Council members City Council Structure Summary All Elected from Ward or District Mix of Wards and At Large All Elected At Large Number of Cities 6 4 4 •None of the Front Range cities in the study have a City Council where all members are elected At Large •Research did not uncover processes used to determine Ward or District boundaries; ordinances may contain vague wording such as “equal populations” •Mayors are usually considered part of the City Council with the same voting rights as members; principal duties are to preside over City Council meetings and serve as the ceremonial head of the city •Mayor Pro Tem positions are selected from current Council members and fill in for the Mayor should they be unavailable •Most City Councils have staggered elections, with members serving 4-year terms •If term limits are stated, the limit was generally 2 terms •Mayors are also elected to 4-year terms 6 Council Structures –Peer Cities 7 City 2020 Population Area in Square Miles City Council Structure Terms Notes Fort Collins 169,810 57.2 - Mayor - 6 Council Members, from Districts -Mayor: 2 year terms, limited to 3 terms - Council: 4-year staggered terms, limited to 2 terms Mayor presides over City Council meetings, ceremonial head of City; signs legal documents; Mayor Pro Tem: chosen from Council, 2-year term; Council is responsible for policy decisions Asheville, NC 94,589 45.6 - Mayor - 6 Council Members -All At Large - 4-year staggered terms - Mayor on separate ballot - Mayor: Presides over City Council; ceremonial head; no veto power - Vice Mayor: Appointed by City Council - City Council: Determines the needs to be addressed and the degree of service to be provided by city government Eugene, OR 176,654 44.1 - Mayor - 8 Council Members, All from 8 Wards - 4-year staggered terms - Mayor on separate ballot - Mayor: Has no vote except in case of tie; formal representative of City - City Council: Responsible for passing laws, setting community goals, adopting policy, and deciding which services the City will provide. Greensboro, NC 299,035 129.0 - Mayor - 8 Council Members, 3 At Large, 5 from Districts - 4-year terms - Mayor: Presides over City Council - Mayor Pro Tem: Selected from Council Members - City Council: Sets and directs policy regarding City government operations; executed by City Manager Naperville, IL 149,540 38.8 - Mayor - 8 Council Members - All At Large -Approving City policies, ordinances and other regulations. - Responsible for matters dealing with employee salaries and benefits. Oklahoma City, OK 681,054 606.3 - Mayor - 8 Council Members, All from 8 Wards - 4-year terms - Mayor: Part of City Council - City Council: Develop City priorities Plano, TX 285,494 71.7 - Mayor - 7 Council Members -All At Large - 4-year terms - Term limited to 2 terms - Mayor: Part of City Council - City Council: District residency requirement for members in Places 1 through 4 Wilmington, NC 115,451 51.4 - Mayor - 5 Council Members -All At Large -Mayor: 2-year term - Council: 4-year staggered terms - Mayor and Mayor Pro Tem: Part of City Council - Mayor Pro Tem: chosen from Council Council Structures –Front Range Cities 8 City 2020 Population Area in Square Miles City Council Structure Terms Notes Fort Collins 169,810 57.2 - Mayor - 6 Council Members, from Districts -Mayor: 2 year terms, limited to 3 terms - Council: 4-year staggered terms, limited to 2 terms Mayor presides over City Council meetings, ceremonial head of City; signs legal documents; Mayor Pro Tem: chosen from Council, 2-year term; Council is responsible for policy decisions Arvada 124,402 38.8 - Mayor - 5 Council Members; 4 from Districts, 1 At Large - Duties of Mayor and City Council members laid out in detail Colorado Springs 479,257 194.9 - Full-time Mayor - 9 Council Members - 6 from equally populated districts, 3 At Large - 4-year terms - Term limited to 2 terms - Has had Strong Mayor structure since 2011 - Mayor is Full-time elected positions, not part of City Council, has veto authority - City Council can override veto with 2/3 majority Greeley 109,084 48.8 - Mayor - 6 City Council - 4 from Wards, 2 At Large - 4-year staggered terms - Mayor is part of City Council Lakewood 156,195 43.0 - Mayor - 10 Council Members, 2 from each of 5 Wards - 4-year staggered terms - Mayor is part of City Council, no veto power - Mayor Pro Tem chosen annually Loveland 76,341 34.4 - Mayor - 8 Council Members, 2 from each of 4 Wards - No term limits - Mayor has same voting rights as other City Council Members - Mayor Pro Tem is elected by Council with same term as Mayor - City Council residency requirement of 1 year in Ward prior to election Thornton 142,118 35.9 - Mayor - 8 Council Members, 2 from each of 4 Wards - 4-year staggered terms - Mayor is part of City Council Annual Compensation -Mayor Annual Compensation -Mayor Minimum Median Maximum Peer Cities $15,228 $24,000 $29,925 Front Range Cities* $12,000 $18,000 $38,800 All Cities*$12,000 $24,000 $38,800 Fort Collins $16,074 •Annual salaries for the Mayor’s role range from $12,000 to $38,800. The $38,800 is an outlier as it is $8,875 higher than the next highest mayor salary. •Only two cities (one peer and one Front Range) have a lower compensation level for Mayor than Fort Collins.*Data for Colorado Springs is not included as they have a Full-Time Mayor government structure. 9 Mean Annual Compensation -Mayor •Compensation for the Mayor of Fort Collins falls below both the mean and median across all comparisons (Peer, Front Range, or All Cities). Annual Compensation –Mayor Minimum Mean Maximum Peer Cities $15,228 $24,035 $29,925 Front Range Cities* $12,000 $22,160 $38,880 All Cities*$12,000 $23,254 $38,800 Fort Collins $16,074 *Data for Colorado Springs is not included as they have a Full-Time Mayor government structure. Annual Compensation –Mayor Pro Tem •4 Cities report a higher salary for the Mayor Pro Tem than other Council members; 3 of the cities are on the Front Range, only 1 peer city has this practice. •Compensation for Mayor Pro Tem of Fort Collins is the same as City Council. *Data for Colorado Springs is not included as they have a Full-Time Mayor government structure.9 Annual Compensation –Mayor Pro Tem Minimum Median Maximum Peer Cities $19,000 Front Range Cities $9,600 $15,000 $21,000 All Cities $9,600 $17,000 $21,000 Fort Collins Same as City Council: $10,712 Mean Annual Compensation –Mayor Pro Tem •Four cities are represented in the data, as most cities provide the same compensation for the Mayor Pro Tem as City Council. •Fort Collins does not have a different compensation level for Mayor Pro Tem. Annual Compensation –Mayor Pro Tem Minimum Mean Maximum Peer Cities $19,000 Front Range Cities $9,600 $15,200 $21,000 All Cities $9,600 $16,150 $21,000 Fort Collins Same as City Council: $10,712 Annual Compensation –City Council Minimum Median Maximum Peer Cities $12,000 $13,214 $23,377 Front Range Cities $6,250 $12,500 $18,000 All Cities $6,250 $13,000 $23,377 Fort Collins $10,712 Annual Compensation –City Council •Annual salaries for the City Council members range from $6,250 to $23,377, with 13 of the 14 cities falling at or below $18,000. •Only two Front Range cities have a lower compensation level for City Council than Fort Collins. •Fort Collins has the lowest compensation level for City Council among the peer cities in the study. •City Council salaries are customarily set by ordinance. In order to adjust Council or the Mayor’s salary, City Council must approve by a vote, allowing the increase to be effective past the next election date. 10 •Two peer cities, within the ordinance regarding compensation, have allowed for annual increases using a defined inflation factor. Fort Collins also follows this practice. Mean Annual Compensation –City Council •Compensation for the Fort Collins City Council falls below both the mean and median across all comparisons (Peer, Front Range, or All Cities). Annual Compensation –City Council Minimum Mean Maximum Peer Cities $12,000 $15,169 $23,377 Front Range Cities $6,250 $11,984 $18,000 All Cities $6,250 $13,699 $23,377 Fort Collins $10,712 •Expense reimbursements are defined within the City ordinances as “reasonable and necessary expenses”; limitations and rules for approval are generally included •3 of the 14 cities do not reimburse for expenses •Common reimbursements include: •Travel to Council-related conferences, meetings, classes •Mileage to attend events where they are representing the City •Cell phone, laptop and/or internet service allowances or provision •Meals during Council meetings •Office supplies •Association dues •Greensboro, NC was the only city reporting an annual car allowance for City Council members: •Mayor: $4,200 •Mayor Pro Tem: $3,600 •City Council: $3,000 Expense Reimbursements 11 Eligible to Participate Not Eligible to Participate Fort Collins Peer Cities 5 2 Front Range Cities 3 2 (1 Not Available) Benefit Eligibility Health, Vision, Dental Insurance Participation•When City Council members are eligible to participate in the Health Insurance benefits provided to City employees, cities require the member to pay the full premium. In cities interviewed, it was reported as a “rare” event when Council members would participate. •Minimal other benefits are provided by the cities to the Council members: •Voluntary life insurance can be purchased in a few cities •Arvada, CO was the only city to report a provision that allows a Council member to participate in retirement, the supplemental 457 plan 12 Mayor City Council •Signing legal instruments •Review and approve budgets •Represent city in local and regional meetings and events •Represent the city to the press •Approves Council members expenditures •Serves on boards and commissions •Review and approve budgets •Determine policy for City direction •Evaluate performance of City Manager, City Attorney and City Clerk •Attending council meetings and planning sessions •Attending strategic planning meetings •Participating in groundbreakings, ribbon cuttings and grand openings •Attending community events •Participation in local, regional and national organizations •Hosting events within ward •Attending conferences away from City Documentation of Council Duties Most often, the duties for the Mayor and City Council are briefly outlined in the City Charter. The descriptions generally state that the Mayor is the ceremonial head of the city and presides over Council meetings. City Councils are charged with setting the direction and policy of the City to be carried out by the City Manager and staff. However, several cities, have gone to the effort of expanding on those outlines and have listed specific duties, requirements and expectations of the roles in either job descriptions, a manual or a brochure. 13 Thank You Brian Wilkerson bwilkerson@hrqinc.com (303) 564-5686 Julie Stanek julie@hrqinc.com (970) 310-5582 Appendix –ICMA 2018 Municipal Form of Government Survey excerpts 19 Confidential ICMA 2018 Survey Results -Chief Elected Official Source: 2018 Municipal Form of Government Survey; ICMA Survey Highlights • The vast majority of chief elected official positions are part-time and receive an annual salary or stipend. • Local governments rarely place term limits on chief elected officials, but those that do most often limit those terms to two four- year terms. • Most chief elected officials may vote on all issues during council meetings. ICMA –Chief Elected Official Source: 2018 Municipal Form of Government Survey; ICMA ICMA –Chief Elected Official Source: 2018 Municipal Form of Government Survey; ICMA ICMA City Council Council Survey Highlights • Being a member of the council is rarely a full-time position. Over 90 percent of respondents indicated that their council member positions are all part-time. • Term limits on council positions are rare overall but are most commonly found in communities with 100,000 residents or more. • Less than one in five responding local governments have concurrent council terms. Few local governments put all council seats up for election in the same year. Source: 2018 Municipal Form of Government Survey; ICMA Survey Highlights •Local elected officials are nearly always paid a salary or stipend. •Chief elected officials (mayors or the council president) are paid an average of $16,837 per year. • Full-time mayors are paid an average of $61,723. •Part-time council members are paid an average of $5,244 per year. •Some local governments symbolically pay their elected officials $1 per year. This typically only happens among council- manager communities in which elected officials do not provide day-to-day administration. ICMA –Mayor/Council Compensation Source: 2018 Municipal Form of Government Survey; ICMA ICMA –Mayor/Council Compensation Source: 2018 Municipal Form of Government Survey; ICMA