Town Managers Contract

1
Town Managers Contract

• Outline of Process

2
Stages to Process

• Began September 17, 2007
• Charter Review
• Performance Review
• Compensation History
• Comparable Salary Analysis
• Contractual Review
• Legal Review

3
Charter Provisions

• The Board of Selectmen shall determine the
  compensation of the Town Manager.
• The Town Manager shall hold office as specified
  by contract
• Not to exceed three years
• Qualifications
• Character
• Executive
• Administrative
• Experience/Knowledge of Duties of Office

4
Performance Review

• Input
• MMA Management Review Form
• Completed by
• Each select person
• Town Manager
• Minutes
• Action Plan
• Draft Written Review
• Circulated to All Select People
• Comments Received and Discussed
• Final Draft Written and Discussed with Town
  Manager

5
Compensation History

• Year Salary Increase Benefit Benefit
  Total Increase
• 41,500 ---- 10,328 24.9 51,828
  ----
• 42,745 3 11,753 27.5 54,498
  5.15
• 44,027 3 13,434 30.5
  57,461 5.44
• 52,500 19.2 16,537 31.5 69,037
  20.15
• 56,000 6.7 17,640 31.5 73,640
  6.7
• 60,000 7.1 18,900 31.5 78,900
  7.1
• 67,500 12.5 16,706 24.75
  84,206 6.7
• 70,875 5.0 17,514 24.75 88,416
  5.0
• 74,418 5.0 18,418 24.75 92,837
  5.0

6
Town Benefits Policy

• Cafeteria Plan
• Town Manager Benefit Amount
• 100 Family Health Care Premium
• 5 Salary Retirement
• Employee Benefit Amount
• 100 Employee Health Care Premium
• 5 Salary Retirement

7
Salary Comparison Criteria

• Local Market
• Town Policy Comparable Pay
• Experience/Salary History
• Comparable Size
• Population
• Comparable Demographics
• Mid-Coast
• Valuation
• Seasonal

8
Market Comparison
9
Contract Review

• Structure a Rationale for Salary
• Annual performance review
• Two Components for Salary Increases
• COLA
• Merit
• Give Future Select Boards Salary/Compensation
  Discretion
• Annual Compensation Review
• No Pre-negotiated Salary increases
• Cancellation Clause
• Exercisable by Either Party
• Vacation Time Buy Back

10
Contract Clauses

• Term 3 years
• Compensation
• Year One (2008)
• Cola 2.3 (United States Department of Labor
  Consumer Price Index for Consumer Prices in the
  Northeast for the 6 month period ending June 30,
  2007)
• Merit .7
• Total 3.0
• Amount 76,651.31
• Years Two (2009) and Three (2010) TBD by Select
  Board
• Benefits24 ¾ of Annual Gross Pay
• Vacation Buy Back At Discretion of Select Board
• Cancellation Clause Included

11
Benefits Clause

• The MANAGER shall also receive from the TOWN as a
  form of compensation, the following benefits
• a monetary amount equal to twenty-four and
  three-quarter per cent (24 3/4 ) of the annual
  gross pay noted above for each year, said amount
  to be taken as
• retirement in the form of deferred
  compensation,
• health insurance available through the
  TOWNS policy, or wages for any amount in
  excess of the ceiling for annual deferred
  compensation contributions.

12
Benefit Calculation

• Town Manager Benefits
• 24 ¾ of 76,651.31 18,971.20
• Legal Limit on deferred compensation
  15,000.00
• Amount to be taken as wages 3,971.20

13
Cancellation Clause

• If by Town
• Without cause
• Severance 2 weeks salary and health insurance
  per year of service
• Accrued Vacation and Sick Leave
• Hold Harmless Clause
• With Cause
• No Severance
• Accrued Vacation and Sick Leave
• If by Town Manager
• 45 days written notice

14
Benefits Comparison

• Contract Cost
• 24 ¾ Annual Gross Pay 18,971.20
• A La Carte Cost
• Retirement 5 Annual ( 3,832.57)
• Health Insurance
• 1,442.83 per Month X 12 (17,313.96)

Net Cost to Town
(2,175.33)