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HomeMy WebLinkAboutL- 5 City Manager Agreement I 4.0 AZUSA TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: SONIA R. CARVALHO, CITY ATTORNEY VIA: RICK COLE, CITY MANAGER DATE: JULY 15, 2002 SUBJECT: CITY MANAGER AGREEMENT RECOMMENDATION: The City Attorney recommends that the City Council adopt a resolution approving an Amended and Restated Employment Agreement for the City Manager to provide for his continued employment with the City of Azusa. BACKGROUND: The City Council entered into an employment contract with Mr. Cole in July of 1998. Following a performance evaluation in 1999,the City Council approved an amendment to the employment contract. The employment contract provides that the City Council shall conduct an annual evaluation of the city manager based on the terms of his agreement,the City's work plan approved by the City Council and directives given to the city manager by the City Council. The contract provides that the City Council may renegotiate the contract from year to year. Recently, Mayor Madrid and Councilmember Chagnon have met to discuss the City Manager's contract issues and recommended adoption of an Amended and Restated Agreement("Agreement"). The Agreement contains the following new terms: 1. Revises the term of the Agreement so that it runs from July 1, 2002 to July 1, 2003 and provides for automatic 1-year extensions unless the City Council votes not to extend the Agreement. 2. Establishes a salary(step)range for future increases to the City Manager's salary and establishes the City Manager's salary at Step 2 of that range($120,750). The salary(step) range was developed by surveying the salaries of city managers in comparable cities. The survey shows that the Azusa City Manager would go from the lowest paid city manager in the surveyed cities to the second lowest paid (See Attached Survey). 3. Provides the City Manager with a maximum of$180 per month toward City's deferred compensation benefit plan. 4. Provides that the City Manager may carry-over or cash-out 40 hours of vacation time per year upon reaching 5 years of service time and 80 hours upon reaching 10 years of service time. RVPUB\SRC\615910 ag_70 ,1/ 7/02-- gi'dffi47 . 5. Authorizes sabbatical leave time of up 3 weeks per year and provides a stipend of up to$7,500 per year for professional and personal development during the sabbatical. All other terms in the Agreement remain unchanged. The attached resolution has been prepared to confirm the City Council's approval of the Agreement. The resolution also authorizes a retroactive salary payment to coincide with the City Manager's due date for performance review under the current agreement. FISCAL IMPACT: The merit increase in salary represents an increase of$12,390 per year. Upon reaching five years of service credit, the Agreement also provides additional benefits(Deferred Compensation, vacation accrual and sabbatical expenses) that could add approximately$11,982 in potential costs per year depending upon the use of vacation cash-outs and sabbaticals. RVPUB\SRC\615910 RESOLUTION NO. 02-C79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, APPROVING AN AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR THE CITY MANAGER WHEREAS, the City Council recently conducted an evaluation of the city manager and concluded that the city manager's job performance exceeds all or most of the established measures for the job; and WHEREAS, the City is committed to attracting and retaining top-performing staff at all levels of the City's organization; and WHEREAS, a recent city manager salary survey of comparable local cities indicates that the Azusa City Manager's compensation package is among the lowest of the seventeen cities surveyed; and WHEREAS, as a result of the review and compensation comparison, the City Council desires to enter into an Amended and Restated Employment Agreement providing for a revised salary range and modified benefits; and WHEREAS, the City Council wishes to make the City Manager's salary retroactive to January 1, 2002 to coincide with the due date for performance review under the current terms of the City Manager's agreement; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES FIND AND DECLARE THAT: SECTION 1. The Amended and Restated Employment Agreement between the City of Azusa and Frederick "Rick" Cole attached hereto as Exhibit"A" is hereby approved. SECTION 2. The salary adjustment provided for in Section 2 of the Agreement shall be retroactive to January 1, 2002. SECTION 3. This Resolution shall become effective immediately upon its passage. PASSED, APPROVED AND ADOPTED 15th day of July, 2002. RVPUB\MXM\635851 Cristina C. Madrid Mayor ATTEST: Vera endoza City Clerk APPROVED AS TO FORM: .4frute;-E . e#144,014 City Attorney RVPUB\MXM\635851 -2-