Broken Arrow City Council
Meeting of: 09-15-15
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion and possible action regarding a wage increase for the Acting City Manager retroactive to January 1, 2015, and consideration, discussion and possible action on a merit payment
End
Background:
During the development of the Fiscal Year 2014-15 budget, there was considerable discussion and debate regarding performance based salary adjustments for Department Directors. City policy provides that in July of each year, Department Directors are eligible for a salary increase assuming satisfactory performance and development of a management and personal development plan. Because there was no general salary increase for non-union employees included in the budget, there was concern that performance based salary adjustments for Department Directors would not be appropriate, despite the fact that non-union employees who were not at the top of their salary range remained eligible for a satisfactory performance increase of 2.5%. Also, the International Association of Firefighters (IAFF) and Fraternal Order of Police (FOP) members received a general salary increase (2.5% for IAFF and 3.75% for FOP) in addition to a satisfactory performance increase, if eligible. Ultimately, the former City Manager determined that directors would not be eligible for an increase in July, but if the fiscal condition of the City improved, increases would be reconsidered in January of 2015.
As the fiscal year progressed, the City’s financial condition improved. In January, 2015, stipends of 1% were approved for all non-union employees. After further examination of the City’s financial condition, the Acting City Manager and Finance Director determined the financial condition of the City had sufficiently improved to grant Department Directors an adjustment effective January 1, 2015. As a result, all Department Directors with a satisfactory performance were granted a performance based increase. As he was without authority to do so, the Acting City Manager did not receive the step increase.
This same situation occurred during Mr. Gale’s tenure as Acting City Manager in 2012. In July, 2012, all Department Directors received a performance based increase except the Acting City Manager. When City Manager Thom Moton arrived in November, 2012, he was advised of the Acting City Manager’s eligibility for a step increase. Mr. Moton expressed his belief that this issue should have been resolved through the City Council while Mr. Gale was Acting City Manager. Nonetheless, he granted the increase.
As the Council is aware, Mr. Gale has served as Interim City Manager since July of 2014. He presently receives an adjustment of 15% to serve in that capacity. Unless alternative action is taken by the new City Manager, Mr. Gale will return to the position of Human Resources Director on September 21, 2015. Consideration and possible provision of a wage increase for the Acting City Manager is within the authority of the Council and will place him in the same position as similarly situated Department Directors if it is the equivalent of a step increase, which is 4.5%. Such an increase would result in an annual salary of $123,354.84, prior to the 15% adjustment. Additionally, such an action will address the concerns raised by the previous City Manager and will assist the new City Manager by not placing him in a position of making a performance-based adjustment with no first-hand experience.
As previously mentioned, the Acting City Manager will have served in an interim capacity for fourteen (14) months. Under his leadership, the City has implemented an Emergency Medical Services Subscription Fee, finalized two (2) budget cycles and overseen the day-to-day operations of a 733-employee organization. Additionally, he facilitated the Fiscal Sustainability Committee and implemented a number of the recommendations, including direction for a multi-million dollar saving in the General Fund. Mr. Gale also positioned the City for a November election to capture sales tax generated by the sunset of Tulsa County’s Vision 2025.
Section 2-165(c) of the Broken Arrow Code establishes a merit payment structure for Department Directors. The program is designed to recognize Department Directors who exceed the expectations of the city manager or achieve a nonroutine, significant accomplishment. While serving in an acting capacity as City Manager, Mr. Gale falls outside the purviews of this particular ordinance. However, it provides both guidance and justification should the Council desire to provide a one-time adjustment in pay.
Due to Mr. Gale’s contributions during his tenure as Acting City Manager and for the reasons set forth above, the Mayor requested that this item be placed on for the Council’s consideration.
Cost: To be determined by the City Council
Prepared By: Beth Anne Wilkening, City Attorney
Reviewed By: Assistant City Manager
Finance Department
Human Resources Department
Approved By: Beth Anne Wilkening, City Attorney
Attachments: None
Recommendation: As Council directs