ADDENDUM

Salary and Benefits Survey

Job Classification - City Manager

Analysis & Summary - Atascadero

December 2010

M. Brennler

Rankings - TotalAnnual Compensation - 2010

San Luis ObispoAtascaderoPaso Robles

Pismo Beach

Morro Bay

Arroyo GrandeGrover Beach

Notes:

Component data and computations are recorded on Page 15

$3O9,471.00

$254,593.005230,974.005zzt,o+7.00 < Median (s21s,8s7.oo)

$210,567.OO

$tgg,g+0.005t64,L92.00

Atascadero is 14.44%o above the average ($222,549.00) and 17.99% above the median ($215,857.00)

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San Luis ObispoPismo Beach

AtascaderoPaso Robles

Morro Bay

Arroyo GrandeGrover Beach

Rankings - Annual Base Salary - ZOLO

Annual

22L,520.OO

L6L,40O.00 *

t57,173,AO

L55,744.00155,351.00136,596.00

t23,443.00 *

Monthly Hourly

18,460.00 106.50

13,450.00 77.60

L3,098.00 75.56

12,979.00 74.88

L2,946.00 74.69

11,383.00 65.67

L0,287.00 59.35

Atascadero is 1.17% below the average ($159,009.00) and L.OS% above the median (g155,457.50)

x Notes:

Pismo Beach - Potential salary increase to $L72,966.g0 scheduled January 201LGrover Beach - Top step salary for City Manager is 152,280.00computations for Monthly and Hourly data - http://www.calcxml.com/do/payO3 Addendum - Page 2

Summary - City of Atascadero

Although the base salary for the Atascadero City Manager is ranked third, total compensation is

ranked second, due in part, to disparities in other agency paid compensation. The Atascadero

City Manager's total compensation is 14.44% above the six city average and 17.99% above the

median point.

Atascadero contributes 529,859.00 for a 457b and 401a plan. This contribution is

approximately 747% above the six city average of 53,526.00. lt is of interest that the City ofAtascadero contributed over 3L,000.00 in year 2009 and that city payments since year 2003

exceed 5154,000.00.

Atascadero contributes approximately 59,910.00 for the City Manager's insurance policies

incf uding a long term disability policy. This is approximately 2!4% above the six city average of

53,161.00. The primary reason for the disparity rests with the annual contribution for the City

Manager's long term disability policy, which is approximately 909% above the six city average of

sse3.00

Atascadero's contribution for other categories of compensation is $9,738.00, which is

approximately 94% above the six city average of 55,016.00. This disparity exists due to

contributions that fund a membership to a health club, as well as an annual cash option for sick

leave. None of the other cities have such annualized benefits.

A significant disparity exists in Atascadero's vacation leave program. The City Manager receives

35 days vacation which is approximately 64% above the six city average of 21 days.

An even greater disparity is noted with administrative leave, wherein the City Manager is

allowed 142 hours (17.75 days)) of administrative leave, compared to the six city average of

58.66 hours (7.33 days). The annualvalue of this administrative leave is approximately

510,730.00.

The total leave granted to the City Manager is 65 days (not including sick leave). This total

feave is approximately 56% above the six city average of 41 days.

The disparities noted above were primarily a result of contract addendums agreed to in years

2OO3,2004 and 2005. The Council Members who approved the addendums include Jerry Clay,

Tom O'Malley, Wendy Scalise, George Luna and Becky Pacas.

Of interest are several city resolutions that record the following language:

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"The City will match an eligible employee's contribution to a deferred compensation

program. The match will be up to a maximum of 51,000.00 annually for executive

management employees and 5500.00 annually for management employees."

ln 2OO2 the City Manager's maximum agency paid contribution was 51,000.00 per year. This

fact, combined with the resolution language may have led the public to believe that the City

Manager is categorized as an executive management employee who is entitled to the annual

S1,000.00 contribution. lt is apparent that the City Manager's employment agreement

addendums supersede the resolutions thus allowing him to receive the significantly larger

agency contributions.

One can argue that the public and other city employees have been misled in reference to thecity's contribution to the City Manager's deferred compensation plans.

As mentioned in paragraph two, since 2003 when the first addendum took effect, the city

contributions to the City Manager's deferred compensation plans have exceeded S154,000.00.

An additional fact of interest is derived from data reported in the San Luis Obispo County

Tribune, which published its own total compensation survey in August 2070. The data may be

accessed at http://slonews.thetribunenews.com/citv salaries/atascadero/#ixzzl4QxWlEUv

The Tribune survey included all city executive managers, which in Atascadero's case, includes

the City Manager, Assistant City Manager, Assistant to the City Manager/City Clerk, Police Chief,

Fire Chiel Administrative Services Director, Community Development Director, Community

Services Director and the Public Works Director.

When compared to 20L0 generalfund revenues (S16,924,240.00l'these nine executive

management job classifications approximate between 9 and tO% of said revenues.

Also noted is the fact that only three of the seven San Luis Obispo County Cities fund a job

classification of Assistant City Manager. These cities are San Luis Obispo, Paso Robles and

Atascadero. Both San Luis Obispo and Paso Robles have significantly larger general fund

revenues, thus it can be argued it is easier for these cities to fund the position.

ln Atascadero's case, the position of Assistant City Manager has an annual cost ofapproximately S L75,000.00.

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