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HomeMy WebLinkAboutAgenda - Mail Packet - 7/23/2019 - Direct Reports Compensation Ad Hoc Council Committee - July 25, 2019City of ,Fort Collins Human Resources Department 215 N. Mason, 2"`' Floor PO Box 580 Fort Collins, CO 80522 AGENDA Direct Reports Compensation Ad Hoc Council Committee July 25, 2019, 2:00pm to 3:00pm Commons Conference Room, City Hall, 300 Laporte Ave, Fort Collins, CO 80521 Committee Members: Mayor Wade Troxell Mayor Pro Tem Kristin Stephens Councilmember Susan Gutowsky, District 1 City Staff Members: Teresa Roche, Chief Human Resources Officer Jamie Heckman, Senior Compensation Manager Jenny Lopez Filkins, Senior Assistant City Attorney Jeanne Sanford, Paralegal Guest: Julia Novak, The Novak Consulting Group • Call Meeting to Order • Public Comments (limited to approximately 2 minutes per speaker) • Review and approval of Minutes from June 24, 2019 meeting • Discussion Items: o Performance Management Discussion o Next Steps • Adjournment Next Meeting: August 12, 2019 There are three or more members of City Council that will likely attend this meeting. Formal action may be taken by the Committee at this meeting and the discussion of public business will occur. Therefore, the meeting is open to the public. Direct Reports Compensation Ad Hoc Council Committee June 24, 2019 10:00 to 11:00 am Minutes Members in Attendance: Mayor Wade Troxell, Mayor Pro Tem Kristin Stephens, Councilmember Susan Gutowsky; Teresa Roche, Chief Human Resources Officer, Jamie Heckman, Senior Compensation Manager, John Duval, Deputy City Attorney, Jeanne Sanford, Paralegal, and Joaquin Garbeso, Sr. Manager, Benefits. Public in Attendance: None. A meeting of the Direct Reports Compensation Ad Hoc Council Committee ("Committee") was held on Monday, June 24, 2019, in the CIC Conference Room at City Hall. Agenda: 1. Review and approval ofJune 10, 2019 Minutes. 2. Discussion Items: a. Committee Action Plan Check -In; b. Process Design Review; c. Total Compensation Discussion d. Next Steps 3. Adjournment The meeting began at 10:00 a.m. Mayor Troxell called the meeting to order. Mayor Pro Tem Stephens made a motion to approve the minutes and Councilmember Gutowsky seconded the motion. The minutes of the June 10, 2019 meeting were approved. Jamie Heckman ran through the meeting agenda which started with a check -in on the action plan to see if there were any adjustments needed, of which there were none. Ms. Heckman stated that at the last meeting, there was a brainstorming process regarding the two-year cycle. It was the intent of this meeting to discuss the salary process for the direct employees and then Joaquin Garbiso would speak about the benefits portion. The Action Plan check -in slide was discussed next. It was noted the Committee did not get to the salary analysis discussion last meeting so it will be discussed today. It was noted a meeting was cancelled in May which put the Committee behind and another meeting may need to be scheduled. Teresa Roche discussed the up -coming July 8th meeting. She met with Julia Novak last week and was wondering if the Committee would be interested in Julia coming on July 8`h to speak to the Committee. As Ms. Novak is a keynote speaker on the national circuit, she may be a good outside voice to conduct a development session to measure results regarding the plan and how to give feedback. Mayor Pro Tem Stephens felt Ms. Novak giving a presentation would give the Committee good ideas on how to do things better. Jamie Heckman stated since everyone was in agreement, that will be sole focus of July 8 meeting. Ms. Heckman then discussed the process mapping which was done last meeting. Ms. Heckman explained if the process was started in April after the Council elections, the performance expectations could be set with a two-year lens. At the end of the year (Oct -Dec), a performance discussion would be conducted, but a bit more lightweight at this time. Salary review was discussed with the expectation that the process does not go a full two years without looking at salary. In the second year of the cycle, a performance discussion would be done around June (check in) and then in Oct -Dec, having the more robust performance dialogue discussing salary and total compensation. Committee felt this was an accurate representation of what was discussed. Teresa Roche then discussed the reality of this year being an odd year. The August 28 "mid -year evaluation" would be a chance for Darin, Carrie, Kathleen to come in and discuss performance expectations to catch up to the first -year cycle bubble in June. Ms. Roche stated she will meet with Darin, Carrie and Kathleen to give them a heads up into this process. Next discussed was a date needed for salary review and performance expectations. November 19, 2019 was the targeted date to have this discussion at ELT. Having Julia Novak do a summary and feedback was proposed so Mayor Troxell won't have to do content and process at that time. Next discussed was salary. Ms. Heckman referred the Committee to the information in their notebooks. Ms. Heckman noted this salary review format has been in place for years and Jamie inquired which aspects were of value and which were not. Mayor Troxell stated that an ICMA summarization would be beneficial. Ms. Heckman stated that information was at state and national level but could be added as another data point. Total compensation was summed up with all facts presented and an explanation of how salaries are compared. Performance bonuses were discussed. Mayor Pro Tem Stephens stated this was very valuable for the public to see and understand this is common practice in other cities. The Committee discussed the 2016 ordinance that gave salary increases to Darin, Carrie and Kathleen which led to the situation with citizens who had concern about this total compensation number. The Committee discussed the legality of having to do it that way again. Deputy City Attorney John Duval stated he has seen it presented both ways in other cities. Some state the salary and some state the total compensation figure. The City does not need to put the total compensation number in the ordinance by law. Mayor Pro Tem Stephens stated she feels the total compensation figure inflates the number and people react; she would be in favor of putting the salary figure into the resolution. Jamie Heckman recapped that there is interest in exploring rethinking the way the ordinance is done. Ms. Heckman asked the Committee if there were any other data points that would be helpful? Mayor Pro Tem Stephens noted that the City of Fort Collins is playing at a higher level and ahead of other peer cities which makes that hard to reflect in the numbers and, for example, to compare what our City Manager is making in relation to those other peer cities operating at a lower level. Ms. Stephens felt this was clearly shown at CML last week. Teresa Roche asked the Committee if there was importance to place our employees in a percentage category where they operate, such as top 25%, mid -range 50%, etc. The Committee expressed their desire to do so. Councilmember Gutowsky asked about the historical reason behind 3% raises; Jamie Heckman explained it came from the established budget pool (entire city-wide). The Committee then discussed the current benefits package such as retirement, car allowance, vacation and noted this was the area where these executives differed from City staff. Joaquin Garbeso discussed the levers that come with executive packages. Mr. Garbiso inquired whether the Committee is interested in the national data on public vs. private sectors. The Committee agreed they were. Ms. Roche stated there was a need to discuss performance bonuses, sabbaticals, etc. Mayor Troxell stated he was more interested in performance bonus as opposed to retention bonus, which some use as leverage in negotiating contracts. It was noted that the City of Cedar Rapids puts performance bonuses into their contracts. Mayor Troxell stated the City could use performance bonuses as a vesting tool, such as when a candidate gets a sum based on the years they stay with the City. Mr. Garbiso stated another option to this would be nonqualified retirement plans which have a vesting window. Jamie Heckman recapped there was interest from the Committee to look at competitiveness and explore these options. Teresa Roche and Jamie Heckman then discussed preparing an update memo to Council. Mayor Troxell noted it may be important to do 2x1 meetings with Councilmembers as they are more productive than just a memo; it is valuable to have a chance to meet face to face and ask questions. Ms. Roche stated she would work on setting those meetings up. 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