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HomeMy WebLinkAbout10B - City Manager's 2006 Performance Eval. MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCIL AGENDA REPORT April 2, 2007 10B Kelly Meyer, Asst. City Manager CONSIDER APPROVAL OF THE CITY MANAGER'S 2006 PERFORMANCE EVALUATION AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT WITH THE CITY MANAGER ON BEHALF OF THE CITY. Introduction The City Manager is an at-will employee appointed by the City Council. Terms of employment for the City Manager are set out in an employment agreement approved by the City Council annually. Frank Boyles was appointed as the Prior Lake City Manager in 1993 and is now in his 14th year with the City. Each year, the City Council is responsible for conducting a review of the City Manager's performance during the previous year. At that time the City Council may also evaluate the existing compensation package. In 2006, Mayor Haugen and Councilor Millar were appointed as the subcommittee that would facilitate the review process and make any recommendations regarding compensation. At this time, the City Council has completed its evaluation and conducted a meeting with the City Manager to review its findings. A copy of the evaluation is attached. The Manager was rated well above average in all responsibility areas. At its March 19, 2007 City Council meeting, the subcommittee made specific recommendations regarding adjustments to the City Manager employment contract, and the City Council directed staff to update the agreement accordingly. The purpose of this agenda item is to formally adopt the revised employment agreement consistent with that direction. The subcommittee recommended, and the revised agreement proposes, the following changes: Contract Term: January 1,2007 - December 31,2007. Compensation: A 3.25% increase to the current base salary of $107,914 ($111,421). While slightly higher (.25%) than the cost of living increase for all other City employees, the increase appears appropriate in order to maintain competitive in the market and the appropriate gap in the City's master salary plan. Deferred Compensation Contribution: Based on performance, a contribution of 3.5% of the City Manager's base salary would be made to his deferred compensation plan ($3900.00 for 2007). This change, as compared to $4806 (4.5%) for 2006, is intended to establish a percentage rather than an arbitrary number as previously provided. www.cityofpriorlake.com Phone 952.4474230 / Fax 952.447.4245 Tenure Adjustment: The City Manager receives a contribution to his deferred compensation plan annually equivalent to five days pay for each year in excess of 10 years of service. In 2006, this provision was calculated as 120 hours. The subcommittee has recommended an adjustment to this provision to calculate 6 days (or 48 hours) for every year of service in excess of 10 years. For 2007, rather than 160 days (as is the current language), the adjustment would equate to 192 hours. This modification, which is linked to length of service is viewed as a better means of recognizing commitment to the City. The reduction in deferred compensation contribution above and increase in tenure adjustment mitigate against one another. Health Insurance: $750 per month contribution toward family medical. This is an increase of $50 per month and is exactly the contribution made on behalf of the City for all employees with family medical. Life Insurance: The City's annual contribution shall increase from $1200 to $1800. Miscellaneous: Other items that have been updated to be consistent with the wage and benefits package include: PERA Contribution: The plan currently requires a 6.25% employer contribution. The contract has been revised accordingly. This is consistent with the contribution made for all other non patrol employees as required by state statute. Severance: Section 7 of the Employment Agreement has been updated to reflect the corresponding adjustments in wages and benefits. FINANCIAL IMPACT: The compensation package proposed is within the estimate of the 2007 budget. ALTERNATIVES: Staff believes the agreement reflects the changes directed by the City Council at its March 19,2007, meeting. The compensation package proposed is consistent with those of other City Managers in communities of similar size. The health insurance, dental insurance and RHS contributions proposed are consistent with those of other employee groups within the City. The Council has several alternatives: 1. Motion and Second to approve the City Manager's 2007 Employment Agreement as proposed, and authorize the Mayor to execute the Agreement on behalf of the City. 2. Take no action and provide staff with specific direction. RECOMMENDED MOTION: Reviewed by: CITY MANAGER PERFORMANCE EVALUATION For the Period January 1, 2005 - December 31, 2005 Evaluator: SUMMARY OF COUNCIL MEMBER COMMENTS Date: FEB 2007 This evaluation is divided into three categories - Communications, Administration, and Personal Skills. Encompassed within those categories are various areas intended to specify critical elements of performance. Each area should be rated separately, being careful not to be influenced by your overall judgment. Please circle the number that best indicates your rating of performance for the area indicated. Space is provided and additional comments are encouraged. ................................ PART 1- COMMUNICATIONS A. WRITTEN COMMUNICATIONS Measures: Effectiveness of letters, memoranda and other forms of written communication to the City Council, other governmental agencies, and the public. Considerations: Does the City Manager make written recommendations on issues as often as you'd like and in the manner you'd like? Is the City Manager providing the Council with adequate information so that they feel informed on critical issues? Are recommendations from the City Manager thoroughly researched and reliable? Are tools like the Weekly Update and e-mail effective ways to communicate with Council members? Can you think of an instance where you were not comfortable with the written information of the City Manager or his staff? Is correspondence with the public and governmental agencies clear, concise and understandable? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 6 4 3 x Comments and Suggestions for Improvement: Good written and verbal communication New Councilmember orientation was not as good as it should have been. Knowledge of new councilmember of 2030 Vision, budgeting, 2005 Citizen's survey,etc. is not strong. Needs to be strengthened. Excellent! Overall, I think Frank did a great job communicating. My only concern was the way the information, especially the letters of support were handled on the Northwoods League issue. I would like to have seen a more balanced - pros & cons picture from the City. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 B. ORAL COMMUNICATIONS Measures: Facility for presenting technical data and other information in a clear, concise and understandable manner to the City Council and general public. Considerations: Is material presented in an understandable manner? Does the City Manager communicate with the public tactfully and effectively, providing excellent customer service? Is the City Manager effective in conveying the City position in small work groups? in larger work groups? to the media? Does the City Manager verbally promote Prior Lake to community organizations through public speaking and cable television? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 4 3 2 x Comments and Suggestions for Improvement: This is a real strength for Frank. Frank does a great job of communicating with the Council and the public. I have also come to appreciate his honesty when asked a direct question by me. Inside City Hall is a real asset. Limited presentations to community organizations - Mayor is primary presenter. C. AVAILABILITY Measures: Maintains accessibility to the City Council, the City staff, and the general public. Considerations: Is the City Manager sufficiently available to Councilmembers and staff in person or by phone on work days, evenings and weekends? Does the City Manager make an effort to be accessible to residents? Is the City Manager active in the community on a personal level? Has the City Manager established a positive relationship with the public and the media? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 5 4 3 x 8.33 Comments and Suggestions for Improvement: Frank is always accessible. Position perception from general public - well received by stakeholders throughout community. Availability is great. For some reason there is some negative public perception of Frank. I don't know why - or what he can do about it. Perhaps it goes with the territory of being a City Manager. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 PART 2. ADMINISTRATION A. PROBLEM SOLVING & DECISION MAKING Measures: Ability to recognize problems, determine relevant facts, provide recommendations for City Council action, and formulate altemative solutions to issues. Considerations: Does the City Manager process information effectively to leam new material, identify and define problems and make a decision? Does he look for altemative solutions? Can he make timely, sound decisions even under conditions of risk and uncertainty? Is he informed about organizational policies and procedures? 5 Unable to Observe Above Standards Meets Standards Rating 9 8 7 6 4 2 x 8.33 Comments and Suggestions for Improvement: Again, overall I think Frank is above average in this category. He appears to be well informed - and if not will find the answer! looks at long-term impact of decisions. B. PLANNING Measures: Ability to plan, organize and maintain a process of establishing, monitoring and providing status updates on long-term goals as articulated in the 2030 Vision and other City planning documents. Considerations: Is the City Manager only approaching the job from a day-to-day standpoint or are his efforts directed toward broad City Council objectives? Can you think of a broad City objective which you feel is not managed well? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 4 3 2 x 8.667 Comments and Suggestions for Improvement: I believe Frank is always looking to the future and the 2030 Vision. I do think we need to spend more time on the future of technical communication - Le. fiber optics etc. Committed to implementing 2030 Vision. Understands that 2030 Vision implementation is critical to City's effective long-term growth and development. Focuses on long-term, not short-term. C. FOllOW-THROUGH & SUPERVISION Measures: Demonstrates ability to implement direction provided by City Council and obtain long-term goals of the City on an appropriate timeline and with efficiency. Supervises personnel, programs and services effectively. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Considerations: Can the City Manager be depended upon for sustained, productive work? Does he readily assume responsibility? Can he then be depended upon to follow through when asked to do something? Can you give an example of when he didn't? Does he assign responsibilities, allocate resources and coordinate the activities of others to meet objectives? Does he make good use of available personnel and talent to get work done? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 8 7 6 5 4 3 2 x 8.33 Comments and Suggestions for Improvement: Frank does a good job of follow through. I sometimes feel that the responsibility of City management might be a bit overwhelming - so he may have to designate responsibility a little more. Part of the problem may mean we need to add to staff! Assumes ownership of 2030 Vision. Excellent follow through. Understands importance of 2030 Vision. D. BUDGETING Measures: Presents a comprehensive annual budget and capital improvement program consistent with the 2030 Vision and Strategic Plan and direction of the City Council. Administers the budget within the approved limits and recommends financial strategies and options to the Council. Considerations: Does the City Council understand the budget and support the overall financial direction the City Manager is providing? Is the City Manager effective in identifying funding sources and matching the needs of the service area to available resources? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 2 x 7.667 Comments and Suggestions for Improvement: I wish the process could have been more clear. It probably would have been easier if I hadn't been so new to the process. Another year and I would have had a better grasp of it, but... .oh well! I believe Frank could have done a better job preparing the new Council members initially, but he has been responsive to questions and helping us understand as we progressed through the year. Does a great job creating a quality budget in support of 2030 Vision. Needs to make certain new councilmembers understand all funds within the budget and how the budget, 2030 vision, CIP, etc. all fit together. Great at creating non-tax revenue sources. PART 3 - PERSONAL SKILLS A. LEADERSHIP Measures: Represents the City by portraying a positive image with the public and other governmental entities. Provides a positive example in word and action for staff members. Directs work plans of managers effectively and obtains optimum effort from personnel. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Considerations: Does the City Manager take charge and initiate actions, directing the activities of individuals and groups toward the accomplishment of the 2030 Vision and Strategic Plan? Can he adapt his leadership strategy to different situations? Does he inspire and motivate others? Can he effectively initiate collaborative efforts with other agencies? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 x Comments and Suggestions for Improvement: Represents the City by portraying a positive image with the public and other governmental entities. The other (measurers above), I don't know enough about to comment. Frank has great leadership skills! His manner is always pleasant and upbeat. He alwavs acts in a diplomatic manner. Very positive image for our public. Very adaptable to various council direction/situations. Motivates his staff - outstanding staff! I have seen none better! Staff is committed to and clearly understands the 2030 vision. B. ADAPT ABI L1TY Measures: Ability to respond appropriately and confidently to the demands of work challenges when confronted with changes, ambiguity, adversity, or other pressures. Considerations: Does the City Manager act professionally, rationally and tactfully when confronted with adversity or frustration? Is he aware of his own strengths and weaknesses and can he accept negative feedback constructively? Can he be effective when demands are ambiguous or changing? Is he creative when confronted with obstacles? Does the City Manager effectively accept direction? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 4 3 x 8.667 Comments and Suggestions for Improvement: Very committed to profession. Needs to take care of Frank. Delegate as necessary. Expand staff to support citizen's and community's needs and wants as we grow. Accepts feedback well. I have come to see the City Manager's job as a juggling act. Frank handles this like an artform! C. INTERPERSONAL RELATIONS Measures: Ability to interact with the staff, public, and other agencies in ways that enhance understanding and respect, perceiving the needs of others, developing collaborative working relationships, and dealing effectively with conflict. Considerations: Does the City Manager show awareness of and consideration for the opinions and feelings or others? Does he solicit feedback from the City Council, the public, and staff in his decision making process? Can he bring conflict or dissent into the open and use it productively to enhance the quality of decisions? Does he help arrive at constructive solutions while maintaining positive working relationships? CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Rating 9 7 6 Unable to Observe Above Standards Meets Standards 4 3 2 x 7.50 Comments and Suggestions for Improvement: Perhaps this is the issue with negative public perception. My dealings with Frank have shown him to be positive, helpful, etc. I can't speak for others. Good listener. Decision maker. Great relationships with staff, SCALE, other governments, ISO 719 and groups within Prior Lake. D. COMMITMENT Measures: Dedication to the community as a whole and the goals of the City as articulated in the 2030 Vision and Strategic Plan. Considerations: Does the City Manager participate in community-wide events? Is the City Manager available to the public? Is the City Manager a promoter of Prior Lake and its 2030 Vision and Strategic Plan? Does the City Manager make decisions and set priorities with the good of the whole community in mind? Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 5 4 3 2 x Comments and Suggestions for Improvement: Outstanding! Committed to Prior Lake. Outstanding promoter of 2030 Vision. Looks for the good of the entire community. Frank is proud of this community and completely dedicated to the high standards of this community. .................................................................................................................. ........................................................................................................................................................................................................................................................................ PART 4 - OVERALL PERFORMANCE Considering the above observations, this is my composite evaluation of the City Manager for this review period: Above Standards Meets Standards Below Standards Unable to Observe Rating 9 7 6 4 3 x 8.33 The one thing I would like him to do better next year is: Try to garner a more positive public perception. Now that I've seen Frank from a Councilmember's perspective, I've been able to see his strengths as a City manager (and I correct those who believe otherwise). I think an organized effort to prepare new Councilmembers is a necessity. Provide training to get all Councilmembers up to speed on all elements of 2030 Vision. FINAL COMMENTS (if any) Frank has done an excellent job over the past 5 years. He is a credit to his profession and our community. Frank is doing an outstanding job. With the exception of a couple of things - noted earlier, Frank appears to be the right City Manager at the right time for Prior Lake. He has my complete support! Our City is well-run, not an easy job. The 2030 Vision is a road map that Frank uses effectively. The staff and their leader are doing an excellent job. THIS AGREEMENT is made and entered into this 2nd day of April, 2007by and between the CITY OF PRIOR LAKE, a political subdivision of the State of Minnesota ("City"), and Francis F. Boyles, III ("Manager"). IN CONSIDERATION of the terms and conditions contained herein, the parties agree as follows: 1. Emplovment. During the term of this Agreement, the Manager shall serve as City Manager of the City, and shall assume and perform, in a conscientious and diligent manner at all times, all of the duties and responsibilities incidental to such position as defined herein and as are reasonably assigned to him from time to time by the City Council. Manager shall use his best efforts in the performance of his duties, and shall spend substantially his full time in connection therewith, except in the event of illness, disability, vacation or other absence permitted by the City. Manager shall work such hours as are reasonably assigned to him by the City Council from time to time. 2. Term. This Agreement shall be effective as of January 1, 2007 except as herein specified and shall continue indefinitely unless or until earlier terminated as provided in Section 6 below, or until such time as the Manager voluntarily terminates employment by thirty (30) days written notice. Manager shall remain in the exclusive employment of the City during the term of this Agreement. For the purposes of this section, "exclusive employmenf' shall exclude any teaching, writing, consulting, speaking or military reserve service undertaken by Manager during his non-work hours. 3. Compensation. As base compensation for services rendered from January 1, 2007 through December 31, 2007, the Manager shall receive $111,421.00 per annum in equal installments at the same time as the City pays its City employees, subject to all applicable taxes. 3.1. Tenure Adiustment: At the outset of each year, the City shall deposit a sum in Manager's Deferred Compensation Plan equivalent to six days (48 hours) for each year in excess of ten years that the Manager has worked for the City. 3.2. Deferred Compensation: Sections 3.1 notwithstanding, the City Manager shall receive a contribution to his deferred compensation account for 2007 in an amount equal to 3.5% of his base compensation. 4. Benefits. Manager shall receive the following benefits at no cost to him: (a) Vacation. The Manager's paid vacation accrual shall be 25 days (in addition to the paid public holidays as provided for other City Department Heads). Carryover of unused vacation time from one (1) contract year to another shall be in accordance with City policy for Department Heads. Any unused accrued vacation time shall be paid to Manager in cash at termination of employment at the then-existing base rate of pay. (b) Sick Davs. Paid sick days and sick leave payment plan (including initial thirty (30) day bank) in accordance with City policy for Department Heads. www.cityofpriorlake.com ON. 209559, V.2 Phone 952.447.9800 / Fax 952.447.4245 (c) Insurance. Medical contribution of $750.00 per month, dental contribution of $40.00 per month and Retirement Health Savings Plan contribution of $25.00 per month. (d) Life Insurance. In lieu of term life insurance coverage the City shall pay an annual contribution of $1800 to a universal life insurance policy owned by the Manager. (e) Retirement Plan Contribution. The City shall contribute 6.25 % of Manager's base salary to PERA. (~ Car Allowance. $450.00 car allowance per month, plus mobile cellular phone with monthly fees paid for City related activities. (g) Professional Development. Dues and fees for the following, provided that such items are reasonably necessary to the professional development of the Manager, and subject to City Council approval in the budget process or otherwise: ~ Licenses, journals, publications; ~ Seminars, conferences and short courses within Minnesota and one seminar/conference per year outside the State of Minnesota; ~ Membership in professional associations and service organizations. (h) Reimbursement of Expenses. Reimbursement for reasonable and necessary meals, travel, lodging, and entertainment expenses, properly documented and actually incurred by Manager in connection with the affairs of the City or in connection with the professional development described in paragraph 4(g) above. (i) Manager shall also be eligible for any other benefit plans or programs available to Department Heads now or in the future. 5. Performance Evaluation. The City Council may, at its discretion, conduct quarterly performance reviews with the City Manager. The City Council will conduct an annual performance appraisal and salary review during the first week in December. Information from this meeting will be used by the City Manager Evaluation Subcommittee of the City Council to formulate a salary recommendation for consideration by the Council at the last meeting in December. 6. Termination of Emplovment. Manager is an at will employee of the City. As such, he may be terminated by the City Council in its sole discretion at any time, with or without cause. Upon termination of Manager's employment, and subject to the severance provisions of Section 7 below, all rights and obligations under this Agreement shall cease at that time, other than those which have accrued prior thereto. This Agreement shall terminate immediately upon death of the Manager, fraud, theft, gross negligence or gross misconduct of Manager of his duties, or conviction of a felony or a gross misdemeanor. 7. Severance. In the event this Agreement is terminated by the City in accordance with Section 6 above, unless such termination is due to Manager's conviction of a felony or gross misdemeanor, fraud, theft, gross negligence, or gross misconduct of Manager of his duties, the City shall provide Manager with a minimum of thirty (30) days advance written notice and terms, conditions and severance pay as set out in subparagraph (A) below. ON: 209869, v.2 2 (A) Payment. 1. Compensation. The City shall continue on the 1st and 15th of each month to pay Manager $9285.00 per month, subject to all applicable taxes, for six (6) months following the effective date of Manager's termination. 2. Benefits. During the period set forth in 7(A)1 above, the City will continue to pay Manager $815.00 per month as the City paid contribution towards payment of Manager's medical, dental and retirement health savings. 3. Vacation and Sick Pay. The Manager shall be given a lump sum payment for all accumulated vacation pay and sick pay in accordance with the Personnel Policy and as provided for in Section 4(a) and 4(b). 8. Leaalitv. The parties covenant and agree that the provisions contained herein are reasonable and are not known or believed to be in violation of any federal or state law or regulation. In the event a court of competent jurisdiction finds any provision contained herein to be illegal or unenforceable, such court may modify such provision to make it valid and enforceable. Such modification shall not affect the remainder of this Agreement which shall continue at all times to be valid and enforceable. No payment may be made under this Agreement in excess of the maximum amount permitted by applicable law. 9. Interpretation. This Agreement constitutes the entire agreement between the parties and supersedes any prior oral or written agreements between the parties. This Agreement can only be modified in writing signed by both parties. This Agreement shall be interpreted in accordance with the laws of the State of Minnesota. 10. Assignment. The rights and obligations of the City to the Manager in this Agreement may not be transfer or assigned by the Manager. 11. Arbitration. Any controversy conceming a question of fact arising under this Agreement shall be determined by arbitration in accordance with the rules then in effect for the American Arbitration Association. ON: 209869, v.2 3 IN WITNESS WHEREOF, the parties have caused the execution of this Agreement the day and year first above written. This document excluding exhibits consists of 4 pages. CITY OF PRIOR LAKE By: Jack G. Haugen, Mayor Francis F. Boyles, III REVIEWED AS TO FORM Suesan Lea Pace, City Attomey ON: 209869, v.2 4