COMMITTEE REPORT TO COUNCIL

Transcription

1 CITY OF PRINCE GEORGE Council Remuneration Committee COMMITTEE REPORT TO COUNCIL Date: May 20, 2011 To: From: Subject: Mayor and Council Council Remuneration Advisory Committee Council Remuneration Review Attachments: 1. Finance and Audit Committee Report to Council, dated March 18, 2011, including Terms of Reference 2. Review of Council Remuneration, dated November 2010, Sainas Consult Inc. 3. Appendix A, Background Material Considered by the Council Remuneration Advisory Committee Recommendations: 1. That the Committee report be received. 2. That 2012 Mayor remuneration remain at the 2011 rate. 3. That effective January 1, 2012, each Councillor s remuneration be set at 1/3 of Mayor remuneration. 4. That beginning in 2012 and on each year thereafter, an annual adjustment be applied to Mayor and Councillor remuneration, effective January 1 of that year, which is the lesser of: a. the annual percent wage increase applied to City of Prince George exempt staff salaries; OR b. the average of the wage adjustment for the fourth quarter of the previous year, and the wage adjustment for the first, second and third year quarter of the current year for the public administration industry as published by Human Resources and Skills Development Canada as the Average Annual Percentage Wage Adjustments by Quarter. 5. That the Mayor receive the same benefit plan coverage as City of Prince George exempt staff. 6. That the existing benefit plan coverage for Councillors be continued unchanged. 7. That the existing practice for Acting Mayor pay be continued unchanged. 1

2 8. That the existing policy regarding vehicle allowance for Councillors be continued unchanged. 9. That Mayor and each Councillor be provided, as soon as practical after election, their choice of either: a. A laptop computer, including technical support provided by the City of Prince George, to be used by the Council member for their current term of office; OR b. A technology allowance equal to the budget allocated by the City of Prince George for a laptop computer, not including technical support provided by the City of Prince George. 10. That a review of Mayor and Councillor remuneration be conducted by an advisory committee comprised of members of the public by the 2 nd quarter of the last year of each Council s term. Background: At its regular meeting held March 28, 2011, Council approved recommendations contained in a report from the Finance and Audit Committee, dated March 18, 2011 and attached to this report, that a Council Remuneration Advisory Committee be struck to conduct an independent review of Mayor and Council remuneration and benefits. Council determined that the Committee should be comprised of members of the public representing broad interests. Accordingly, Council appointed the following individuals to the Committee: Anne Martin, former City Councillor; Michael Kerr, former Prince George Chamber of Commerce President; Tom Madden, former City of Prince George employee; and Dave Yarmish, Business Person and Community member. The Committee Terms of Reference were contained within the Finance and Audit report. The Committee held its first meeting on April 13, 2011, to begin consideration of the questions posed within the Committee Terms of Reference. The Committee appointed Dave Yarmish as Chair at the April 13, 2011 meeting. The Committee met on four occasions to consider the questions contained in the Committee Terms of Reference and the background material listed in Appendix A, attached to this report. Introduction The Committee supports the notion that remuneration for Mayor and Council is intended partly as reimbursement of expenses associated with the role and partly as salary. The Committee observes that this position is supported by the City of Prince George s policy, which provides that 1/3 of remuneration be allocated for expenses and be non taxable. The Committee supports policy that aims to achieve parity for Council remuneration between peer communities. Information published by Civic Info BC confirms the Sainas report finding 2

3 that there was not a correlation between size of municipality (population) and council member salaries. The Committee s approach then, was to consider the range of Council remuneration for peer communities, and recommend adjustments to City of Prince George Council remuneration to achieve parity with peer communities. Accordingly, the Committee considered the market analysis conducted by Sainas Consult Ltd. in November 2010 (attached to this report), which compared City of Prince George Council remuneration to the following peer communities; City of Coquitlam; City of Kelowna; District of Saanich; Langley Township; Corporation of Delta; City of Kamloops; District of North Vancouver; City of Nanaimo; and City of Victoria. These 10 communities rank 6 th to 14 th in municipal population, according to data published by BC Stats (see Figure 1 below). The Committee is satisfied that the 10 communities used in the report provide a reasonable comparison sample. Vancouver Surrey Burnaby Richmond Abbotsford Coquitlam Kelowna Saanich Langley Delta North Vancouver Kam loops Nanaimo Victoria Chilliwack Maple Ridge Prince George Port Coquitlam Mission Port Moody North Cowichan Langley Fort St. John N ljj.j::, I Vl O'> -.J N 0 ~ 0 ""C 0 "C C: QJ!:!'. 0 :J -""C t'd t'd ""I n C: :J - ~ - t'd V, Figure Population (Peer Communities) published by BCStats

4 Committee Recommendations and Rationale: The Committee Terms of Reference posed 6 questions for consideration. The Committee s recommendations and rationale for each of those questions follows. 1. In reviewing Council remuneration for comparable B.C. communities and City of Prince George exempt staff: a. Should the remuneration of the Mayor be adjusted? If yes, to what extent? Recommendation: That the 2012 Mayor remuneration be continued at the 2011 rate. Rationale: 2010 market analysis contained in the Sainas report indicates that the City of Prince George Mayor remuneration ($90,658) was close to the average ($91,972), or 50 th percentile, for all peer communities, and slightly higher than the average ($87,281) for peer communities outside of the lower mainland. The City of Prince George Mayor remuneration then, is at par with peer communities, and the Committee recommends that it should therefore not be adjusted at this time. b. Should the remuneration of Councillors be adjusted? If yes, to what extent? Recommendation: That effective January 1, 2012, each Councillor s remuneration be set at 1/3 of the Mayor s remuneration. Rationale: 2010 market analysis contained in the Sainas report indicates that the City of Prince George Council remuneration ($23,342) was well below the average ($35,662), or 50 th percentile, for peer communities, and the average ($30,766) for peer communities outside of the lower mainland. The disparity between City of Prince George Councillor remuneration and Mayor remuneration relative to peer communities is striking. The Committee recommends that an adjustment to City of Prince George Councillor remuneration to achieve parity with peer communities is warranted. Further, to recognize the full time status of the Mayor, and part time status of Councillors, and so that the gap between Councillor remuneration and Mayor remuneration remains within the range of peer communities, the Committee recommends that Councillor remuneration be set at 1/3 of Mayor remuneration. For comparison, this adjustment would have brought the 2010 City of Prince George Councillor remuneration to $30,219 and at par with peer communities outside of the lower mainland. 4

5 2. Should Council remuneration continue to be adjusted by an Annual Adjustment Factor as per current practice? If no, what should the formula or future process be? Recommendation: That beginning in 2012 and on each year thereafter, an annual adjustment be applied to Mayor and Councillor remuneration which is the lesser of: a. the annual percent wage increase applied to City of Prince George exempt staff salaries; OR b. the average of the wage adjustment for the fourth quarter of the previous year, and the wage adjustment for the first, second and third year quarter of the current year for the public administration industry as published by Human Resources and Skills Development Canada as the Average Annual Percentage Wage Adjustments by Quarter. Rationale: The Committee recognizes that an annual adjustment factor is necessary to insulate remuneration from the effects of increasing cost of living. The Committee recommends that annual adjustments to Council remuneration be the lesser of City of Prince George exempt staff annual increase or average annual public administration sector increases. 3. Should the Mayor and Councillors receive the same benefit plan coverages (i.e. Medical Services Plan, Extended Health Benefit, Dental Benefit, Group Life Insurance and Accidental Death and Dismemberment Insurance) as City of Prince George exempt staff? Recommendations: That the Mayor receive the same benefit plan coverage as City of Prince George exempt staff; and That the existing benefit plan coverage for Councillors be continued unchanged. Rationale: The Committee recognizes that the Mayor of Prince George occupies a full time position, and as such, is entitled to the same benefit plan coverage that is provided to full time City of Prince George exempt staff. 4. Should Councillors receive extra remuneration for the period they are designated as Acting Mayor? If yes, what amount? Recommendation: That the existing policy for acting Mayor pay be continued unchanged. Rationale: The City of Prince George s current policy is that no additional pay be provided for Councillors in the role of Acting Mayor. The City s practice regarding Acting Mayor duties is established in 5

6 the City of Prince George Council Procedures Bylaw. In accordance with the Bylaw, Council designates Councillors to serve on a rotating basis as the member responsible for acting in the place of the Mayor when the Mayor is absent or otherwise unable to act or when the office of the Mayor is vacant. The Committee recommends that no additional pay be provided for Councillors for performing the duties of Acting Mayor. 5. Should Councillors receive a flat monthly rate vehicle allowance? If yes, what amount? Recommendation: That the existing policy regarding vehicle allowance for Councillors be continued unchanged. Rationale: The City of Prince George s current policy provides that the Mayor receive a monthly vehicle allowance plus mileage, and that Councillors receive mileage only for out of town travel. This policy is aligned with vehicle and mileage allowances provided to City of Prince George staff, in accordance with the City of Prince George Transportation Policy. The Policy contains provisions for a monthly vehicle allowance plus mileage for full time employees, where the full time use of personal vehicle for business purposes is required, and for mileage only where the infrequent use of personal vehicle for business purposes is required. The Committee considered the full time status of the Mayor and the part time status of Councillors and determined that the policy as currently applied, is adequate. Further, the 1/3 non taxable allocation of Councillor remuneration to expenses is considered sufficient to compensate for the use of personal vehicles for business use. 6. Should the Mayor and Councillors receive a flat technology allowance to cover such costs as internet access, cellular phone usage, etc.? If yes, what amount? Recommendation: That Mayor and each Councillor be provided, as soon as practical after election, their choice of either: a. A laptop computer, including technical support provided by the City of Prince George, to be used by the Council member for their current term of office; OR b. A technology allowance, equal to the budget allocated by the City of Prince George for a laptop computer, not including technical support provided by the City of Prince George. Rationale: The Committee observes that Council members require computers to access electronic agendas and other communication provided to Council by the City of Prince George. The City of Prince George s current practice is to provide Mayor and Councillors with a laptop computer, along with technical support, for their use during their current term. Recognizing that some members of Council may wish to source their own computer equipment, the Committee recommends that each member of Council be given their choice of the supplied computer, or an allowance to purchase their own equipment. The budget for purchase of a laptop computer may change significantly on an annual basis, and therefore the Committee does not recommend a specific 6

7 allowance. Rather, it is recommended that the allowance provided to the Council member be equal to the budget allocated to the computer supplied by the City of Prince George at the beginning of the Council term. The Committee recommends that an agreement between the Council member and the City of Prince George be established for the receipt of the computer allowance, which provides that: 1. The choice between a supplied computer or technology allowance, once made, is final; and 2. Computer equipment purchased by the Council member must be compatible with any application used by the City of Prince George for the provision of electronic agendas and communication with Council, including the installation of any security software or devices necessary for the delivery of electronic agendas. Regular Council Remuneration Review The Committee considered an additional question, not posed in the Terms of Reference, regarding the method of ongoing remuneration review, and offers the following recommendation for Council s consideration. Recommendation: That a review of Mayor and Councillor remuneration be conducted by an advisory committee, comprised of members of the public by the 2 nd quarter of the last year of each Council s term. Rationale: Periodic review of Council remuneration provides citizens with the opportunity to evaluate whether parity and equity with peer municipalities exists. The last review, conducted in 1999, established that the Mayor s remuneration was highest in the peer group (consisting of Abbotsford, Coquitlam, Delta, Kamloops, Kelowna, Nanaimo, District of North Vancouver, Saanich, and Victoria), and Councillor remuneration was third lowest. Since that review, the Mayor s remuneration has dropped to sixth in the peer group, and Councillor remuneration is lowest, according to information provided by Civic Info BC. Without periodic review and appropriate adjustments, further disparity may continue to arise between City of Prince George Council remuneration, and that of our peer communities. Conclusion: As a working committee we appreciated very much the capabilities of the two staff members that were provided to us for technical support, access to required background information and general administrative assistance. We would like to acknowledge both Wendy Nordin, Manager of Policy Initiatives and Wendy Fauth Legislative Support Clerk. A warm and sincere thank you to each of them. 7

8 The Council Remuneration Advisory Committee met on four occasions during April and May of 2011 to perform its analysis of the questions posed in the Committee Terms of Reference, approved by Council on March 28, The Committee recommendations on the matter are presented in this report for Council s consideration. Respectfully submitted, Dave Yarmish, Chair, Council Remuneration Advisory Committee 8

9 CITY OF PRINCE GEORGE Finance and Audit Committee COMMITTEE REPORT TO COUNCIL Date: March 18, 2011 To: From: Subject: Mayor and Council Finance and Audit Committee Councillor Murry Krause, Chair Council Remuneration Review RECOMMENDATIONS: THAT Council: 1. Receive this report for information. 2. Approve that an Advisory Committee be struck to review Council remuneration. 3. Approve that the members of the Advisory Committee be Anne Martin, Michael Kerr, Tom Madden, and David Yarmish. 4. Approve that the Terms of Reference for the Committee be those included in this report. DISCUSSION: During the Council meeting of January 24, 2011, Council approved that: 1. A Select Committee be struck to review Council remuneration, with an understanding that any Committee recommendations that may be approved by Council not be effective until at least Concurrent with the above review, Administration review the Council travel expense budgets. Committee membership: As a Select Committee must include at least one member of Council, Administration was concerned that there may be a perception of self-interest if a Select Committee does the review. Therefore, the Finance and Audit Committee recommends to

10 Council that an Advisory Committee be struck to do the review. An Advisory Committee is a committee created by a resolution of Council and comprised of members of the public to provide advice to Council on a specified subject. The Finance and Audit Committee discussed potential members who could provide the Committee with broad representation and the Chair was tasked with recruiting the members. The following individuals were approached and, subject to Council approval, have agreed to be Council Remuneration Advisory Committee members: Anne Martin, former City Councillor; Michael Kerr, former Prince George Chamber of Commerce President; Tom Madden, former City of Prince George Director of Leisure Services; and David Yarmish, Business Person and Community Member. Terms of Reference: The Committee developed the following draft Terms of Reference for Council s consideration, any revisions that may be required, and approval. THAT the Committee provides a report to Council by May 30, 2011 which includes responses to the following questions: 1. In reviewing Council remuneration for comparable B.C. communities and City of Prince George exempt staff: a. Should the remuneration of the Mayor be adjusted? If yes, to what extent? b. Should the remuneration of Councillors be adjusted? If yes, to what extent? 2. Should Council remuneration continue to be adjusted by an Annual Adjustment Factor as per current practice? If no, what should the formula or future process be? 3. Should the Mayor and Councillors receive the same benefit plan coverages (i.e. Medical Services Plan, Extended Health Benefit, Dental Benefit, Group Life Insurance and Accidental Death and Dismemberment Insurance) as City of Prince George exempt staff? 4. Should Councillors receive extra remuneration for the period they are designated as Acting Mayor? If yes, what amount? 5. Should Councillors receive a flat monthly rate vehicle allowance? If yes, what amount? 6. Should the Mayor and Councillors receive a flat technology allowance to cover such costs as internet access, cellular phone usage, etc.? If yes, what amount? THAT the Committee reviews documents that may be required to complete the tasks identified, including but not limited to the following, and requests Administration to provide other information that may be required: 1. The 1992 Council Remuneration Review report. 2. The 1999 Council Remuneration Review report. 3. The current Council Remuneration Policy (Adopted by Council January 18, 2010). THAT the Committee be disbanded upon receipt of its report by Council.

11 Approval of this report s recommendations is consistent with Council s Strategic Plan. Given the important and time consuming roles Council members play with respect to developing and implementing the Strategic Plan, their remuneration and their reimbursement for Council-work related expenses should be fair and equitable. Respectfully submitted, Councillor Murry Krause Chair, Finance and Audit Committee

12 TABLE OF CONTENTS INTRODUCTION AND METHODOLOGY 1 SURVEY FINDINGS 2 Sn inns Con 11/r lnl- D

13 City of Prince George Review of Council Remuneration November 2010 Introduction The City of Prince George City Council retained Sainas Consult Inc. to undertake a review of Council remuneration. The project involved a survey of a number of comparison municipalities for the following information as it pertains to the Mayor and Councillor positions: Annual salary; Vehicle allowance; Expense allowances and out-of-pocket expenses; Separation allowance; Approaches for determining annual adjustments; and, Incidence and cost-sharing of benefits. This report contains our findings from the market survey. The comparison municipalities are shown in the table below, along with the Province of British Columbia s population estimates for Organization Approx Population City of Coquitlam 121,452 City of Kelowna 118,507 District of Saanich 113,209 Langley Township 101,347 Corporation of Delta 99,508 City of Kamloops 86,236 District of North Vancouver 86,066 City of Nanaimo 82,937 City of Victoria 81,874 City of Prince George 74,092 Each of the municipalities was sent a questionnaire seeking the required information, and where required, we followed up with the participants to ensure the data was complete. D 1

14 City of Prince George Review of Council Remuneration November 2010 Survey Findings This section contains the results of the survey. Council Member Salary/Stipend Statistics for annual Mayor and Councillor annual salaries are shown in the table below. Position Comparison Municipalities 25th percentile 1 Median 2 Average 3 75th percentile 4 City of Prince George Mayor $87,281 $92,179 $91,972 $97,760 $90,658 Councillor $30,766 $36,043 $35,662 $39,104 $23,342 For all but one of the comparison municipalities, one-third of Council members remuneration is deemed as an allowance for expenses and is thus tax-free. We analyzed the data based on size of municipality and regional differences. There was not a correlation between size of municipality (population) and council members salaries. There was, however, a difference between the salaries paid to British Columbia Lower Mainland municipal Council members and those in municipalities outside of the Lower Mainland. Position Lower Mainland Average Other BC Average Mayor $97,124 $87,281 Councillor $39,922 $30, This is also referred to as the first quartile. It represents the point below which 25% of the values fall. This is also referred to as the 50th percentile. When the values in the population are ranked by size, the median represents the point at which equal numbers of values are above and below. It is the middle salary in the population. This is the simple average provided for matching positions. Also known as the mean, it is derived from summing all of the values and dividing by number of organizations. This is also referred to as the third quartile. It represents the point below which 75% of the values fall. D 2

15 City of Prince George Review of Council Remuneration November 2010 Vehicle Allowance Vehicle allowances are provided to three Mayors (average $785), and Councillors at two municipalities (average $350). One municipality provides its Mayor with a leased vehicle. The City of Prince George provides the Mayor with a monthly vehicle allowance of $404. Expenses Typically, Council members are reimbursed for meals, mileage and other reasonable expenses while on out of town municipal business. In addition to the reimbursement of reasonable, approved expenses, one mayor is provided an annual meal allowance. One municipality reported a maximum of $5,000 per Council member for travel expenses. In addition to travel expenses, two municipalities provide a communication allowance (phone/internet) to Council members, at an average of $100 per month. The City of Prince George reimburses Council members for travel related to duties as Mayor or Councillor, including mileage. None of the municipalities provides a separation allowance or severance to the Mayor upon leaving the position. Basis for determining adjustments to Council member remuneration: Three undertake regular surveys of comparator municipalities and use an average to set their compensation. One provides the same increases as received by excluded staff, which follow annual CUPE increases. The remainder increase annually by the consumer price index (Vancouver, BC and/or Canada). D 3

16 City of Prince George Review of Council Remuneration November 2010 Group Benefits Two municipalities do not provide any group benefits to Council members. These are included in the summaries by benefit item below. Each table indicates, for that benefit, how many municipalities provide the benefit and pay the premiums. Where applicable, the table also shows the plan designs. BC Medical: Not Provided Municipality Pays 100% Premiums 3 4 Mayor and Councillors 1 Mayor only Council Member Pays 100% Premiums 1 The City of Prince George requires the council members to pay 100% of the premiums for BC medical. Life Insurance: Not Provided Municipality Pays 100% Premiums x salary 2 x salary 1 x salary Council Member Pays 100% Premiums The City of Prince George does not provide group life insurance to council members. Accident Insurance: Not Provided Municipality Pays 100% Premiums x salary 2 x salary 1 x salary Council Member Pays 100% Premiums The City of Prince George pays 100% of the premiums for accident insurance, with coverage of 2 x salary. D 4

17 City of Prince George Review of Council Remuneration November 2010 Long Term Disability Insurance: Not Provided Municipality Pays 100% Premiums Council Member Pays 100% Premiums /3 salary to maximum of $7,000 $350 per week The City pays 100% of the premiums for weekly accident indemnity of total disability payable to a maximum of 104 consecutive weeks at $457 per week, partial disability is payable to a maximum of 52 weeks at $457 per week. Extended Health Benefits: Not Provided Municipality Pays 100% Premiums 3 5 Mayor and Councillors 1 Mayor only Extended health plan: $150 deductible; 80% reimbursement $150 deductible; 100% reimbursement $100 deductible; 100% reimbursement $25 deductible; 80% reimbursement $25 deductible; 100% reimbursement $25 deductible: 100% reimbursement for Mayor only Vision care benefit: average of $400 per 24 month period. Council Member Pays 100% Premiums The City of Prince George requires Council members to pay 100% of the premiums for extended health benefits. The annual deductible is $50 and Council members are reimbursed 80%. Vision care benefits for Prince George Council members are $350 per 24 month period. D 5

18 City of Prince George Review of Council Remuneration November 2010 Dental Benefits: Not Provided 3 5 Mayor and Councillors 1 Mayor only Dental benefits*: Municipality Pays 100% Premiums no deductible; 100/90/80; ortho max of $5,000 no deductible; 90/70/70; ortho max of $5,000 no deductible; 100/50/50; ortho max of $1,500 no deductible; 90/60/50; ortho max of $3,500 $25 deductible; 100/80/80; ortho max of $3,000 $25 deductible; 100/75/100; ortho max of $3,000 for Mayor only Council Member Pays 100% Premiums * Deductible and percent reimbursement to the Council member for basic, major restorative, and orthodontic services The City s dental plan does not have a deductible, and basic, major, and orthodontic services are reimbursed at 100%, 80%, and 50% respectively, with a maximum for orthodontic services of $3,500. Summary of the Market Findings The salary for the City of Prince George Mayor is close to the middle of the overall comparison market, and very competitive compared with the municipalities outside of the Lower Mainland. Expenses for Council members are treated similarly as at the comparison municipalities, and the Mayor is one of the minority who receive a vehicle allowance. To improve the competitiveness of the remainder of Council member remuneration, the City might consider making the following changes: Increase Councillors salary; and, Pay the premiums for BC Medical and extended health benefits. D 6

19 Appendix A 2011 Council Remuneration Advisory Committee Background Information Considered Council Remuneration Committee Report Council Remuneration Committee Report 3. Review of City of Prince George Council Remuneration Report, dated November 2010, by Sainas Consult Inc. 4. City of Prince George Council Remuneration Policy 5. Remuneration Policy Examples from Other Municipalities 6. Council Meeting Statistics (showing average length of meetings, volume of agenda materials, etc) 7. List of Councillor Appointments 8. British Columbia Council Remuneration Data Compiled by Civic Info with Population Data from BC Stats City of Prince George Council Meeting Schedule Mayor & Council Remuneration Schedule