Ann Arbor's new city administrator to be reimbursed up to $30K for relocation expenses
Details of the employment contract between the city of Ann Arbor and its new administrator, Steve Powers, were made known for the first time Thursday night.
Powers, who has been the county administrator in Marquette County for the last 15 years, will be reimbursed up to $30,000 for relocation and temporary housing expenses during his move from the Upper Peninsula to Ann Arbor.
The Ann Arbor City Council unanimously voted to approve an agreement that provides Powers with a starting base salary of $145,000 plus a few perks.
"It is, in many cases, a relatively standard agreement," said Council Member Christopher Taylor, D-3rd Ward, who helped negotiate the terms.
Steve Powers
He'll have 10 sick days, which will accrue annually as of his start date, and he'll accrue 20 days of vacation annually — on top of starting with 10 vacation days in the bank.
As he is expected to be constantly on call, Powers also will receive a monthly cell phone allowance and data stipend on the same terms as other nonunion employees.
"With respect to a pension plan and retiree health care, Mr. Powers will in this contract waive any right that he has or may have in the future to participate in the city's pension program," Taylor said. "He will not participate or receive pension benefits under the city of Ann Arbor Employees Retirement System."
Powers will, however, be enrolled in a 401(a) plan.
Taylor explained the city will contribute 15 percent of Powers' annual salary to a 401(a) plan each year in which Powers contributes 7.5 percent of his salary. Powers also will receive an annual contribution into a retiree health care reimbursement account, which will be accessible upon his retirement. The initial contribution for his first year of service will be $2,500.
Powers currently makes $88,250 in Marquette County. His new salary is at the low end of the $145,000 to $150,000 range Ann Arbor officials identified going into negotiations.
Powers' tentative start date is Sept. 15.
Roger Fraser, who served as Ann Arbor's administrator for more than nine years, earned a base salary of a little more than $145,000 before resigning in April.
However, due to cash perks Fraser received — including bonuses awarded by the City Council — his pay was closer to $160,000 some years.
Powers will not be provided a car allowance, a perk enjoyed by Fraser. He also will not be getting as good of a retirement deal as Fraser had with his pension.
After nine years on the job, Fraser was eligible to receive a pension worth more than $41,000 annually when he retired. He also qualified for lifetime health insurance benefits.
The council unanimously approved ordinance revisions Thursday night tightening restrictions on retiree health care benefits for nonunion employees. Most nonunion employees hired after July 1, 2011, are limited to participation in city-provided retiree health care plans through access-only style plans. The access-only style plan allows retirees to obtain health care coverage through the city in their retirement but paid for by the retiree.
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.
Comments
snapshot
Sun, Aug 21, 2011 : 4:16 p.m.
this guy was making 88 grand a year in Marquette.
Carole
Sun, Aug 7, 2011 : 11:18 p.m.
Come on, please tell me how it would cost $30,000 to move from UP to Ann Arbor, MI. This is totally stupid, what with all of the cuts to pubic safety. And, please tell me why the citizens are paying for cell phones for their "upper" employees. Most folks have their own phone anyways.
CincoDeMayo
Sun, Aug 7, 2011 : 2:36 a.m.
Well, the article does state that he may be reimbursed UP TO $30,000, so let's hope he can show us that he is "fiscally responsible" right off the bat by how little he requests in reimbursement for relocation expenses. To put things in perspective, If he requests the full $30,000, he will be asking for an amount that is equivalent to more than half of an Ann Arbor Firefighter's annual pay.
Cici
Sat, Aug 6, 2011 : 6:49 p.m.
I think I'm getting sick to my stomach.....
Terrin Bell
Fri, Aug 5, 2011 : 6:57 p.m.
Cash: The article says the City will match 15 percent of his salary. If he makes $150, 000 a year, the City will be putting aside $22, 500 a year for his retirement. $30, 000 relocation reimbursement is ridiculous though. First, the guy is getting a significant raise from his previous job. Second, most places only reimburse actual cost of a truck and a person to load it.
Halter
Fri, Aug 5, 2011 : 6:35 p.m.
um....let's see....move from Florida to Ann Arbor...1300.00 including truck, two nights in hotel, and a stop at IKEA. A move from Marquette to Ann Arbor costs HOW MUCH??
Mike K
Fri, Aug 5, 2011 : 6:12 p.m.
The mayor thinks we need more public art and to renew a millage for sidewalk repair.
Hunterjim
Fri, Aug 5, 2011 : 5:59 p.m.
Are they requiring him to live within the City limits?
Mick52
Fri, Aug 5, 2011 : 5:36 p.m.
Does this mean he would not take the job if he had to pay for his move? In the same situation, I think I would not hold out for that. And does it cost that much to move to A2 from the UP? I fret about such spending, giving so much more to employees who can afford it easily. Us peons are limited to applying for local jobs due to the high cost of just going to another state or city to apply for jobs that don't offer such benefits.
MyOpinion
Fri, Aug 5, 2011 : 5:32 p.m.
Who negotiates these deals? A drunken sailor? One red flag I noticed was the vacation/sick leave accrual. UM, which has excellent benefits, does not allow unlimited accrual. Workers there do not get to accrue sick leave and cash out with hundreds/thousands of hours of unused sick leave. Sick leave resets each year. Likewise, vacation days get to accrue, but there is a cap at about 40 days(?) so that the university knows what its maximum liability is on an annual basis. Likewise, the matching contribution towards his 401 is pretty generous. More and more companies are moving from defined benefit to defined contribution plans. But, is the 15/7.5 split common in government plans? Again, UM has a 10/5 split and it would be considered generous. If Ann Arbor moves to a defined contribution plan will the city workers get this nice 15/7.5 split?
jcj
Fri, Aug 5, 2011 : 4:46 p.m.
Coincidence that this comes out now instead of last week?
Bill
Fri, Aug 5, 2011 : 4:03 p.m.
It is nice to know that the city of Ann Arbor can contribute 15% of an employees wages toward their 410K program. While many employers do some form of matching, there is usually a dollar limit. I would question why a program based on tax payer money would be paying in nearly $22,000 for one employee's matching per year. The more I read, the more it appears the city council has no concept of the state of the economy.
dading dont delete me bro
Fri, Aug 5, 2011 : 3:36 p.m.
you guys hiring over there? i live in ypsilanti, so no relocation expen$e needed.
tdw
Fri, Aug 5, 2011 : 3:48 p.m.
dadding I need a new job also.Could you pick me up on the way to work ? We could split the $10,000 for travel expenses
tdw
Fri, Aug 5, 2011 : 3:24 p.m.
I'm laughing......The guy gets a job making what $60,000 a year more a year and you A2 tax payers are footing the bill so he can move ? Does he also get a art allowance ( IDK $30,000 a year ) ?
Cash
Fri, Aug 5, 2011 : 2:55 p.m.
Ryan, I assume you are stating your opinon that "He also will not be getting as good of a retirement deal as Fraser had with his pension." As we have no idea what future % contributions the city will make to his plan, this could end up to be a very cushy plan indeed. If he had opted for the standard non-union retirement, he might have ended up with less under the new rules. I assume he will come out of this on top, as Ann Arbor City administrators seem to do.