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SFPUC approves five‑year employment contract and new incentive plan for General Manager Harlan L. Kelly Jr.
Summary
The commission approved a five‑year successor contract for General Manager Harlan L. Kelly Jr., disclosing a $366,678 base salary (top of range), a 3% base increase on 7/1/2018 subject to triggers, benefits aligned with MEA, and a new annual bonus plan of up to 3% tied to performance goals the commission will set.
The San Francisco Public Utilities Commission voted in open session on July 25 to approve a five‑year employment contract for General Manager Harlan L. Kelly Jr. that sets base salary, benefits and a new incentive compensation plan. The contract summary was presented in open session after closed‑session discussions.
Key elements read into the record include an annual base salary set at the equivalence of classification 0965 (Department Head 5) at top of Range C, which the staff reported as an annual base of $366,678; a 3% base increase effective July 1, 2018 (subject to financial triggers described in the MEA agreement); fringe benefits equivalent to those in the MEA agreement (vacation accrual at a rate consistent with city rules, sick leave, executive leave, health and retirement benefits), a retained balance of accrued supplemental sick leave, and a training/tools reimbursement of up to $5,000 per year.
The contract also establishes an incentive compensation (bonus) plan authorized by the charter that permits an annual bonus up to 3% of base salary. Under the plan the commission will set annual performance goals, evaluate the general manager in closed session against those goals and award up to 100 points; the points will be applied as a percentage of the maximum 3% bonus. The specific performance criteria for fiscal year 2017–18 were presented in the next agenda item and were adopted with an amendment (see below).
Commissioners discussed how future wage increases should be synchronized with the city’s MEA successor agreements. Commission counsel advised that referencing the salary classification and top of range provides a transparent baseline and that the contract can be amended publicly to reference successor MOUs as they are adopted. Commissioners also discussed transparency and Brown Act reporting requirements for compensation changes.
The commission moved, seconded and approved the contract in open session by voice vote; the record shows the motion carried. The commission then considered the separate performance incentive work plan and adopted annual performance goals with an amendment to add SSIP (Sewer System Improvement Program) biosolids design milestones (see action below).
