HomeMy WebLinkAboutI- 5 City Manager Contract •
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AZUSA
CONSENT CALENDAR ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: SONIA CARVALHO, CITY ATTORNEY
DATE: JULY 16, 2001
SUBJECT: CITY MANAGER CONTRACT
RECOMMENDATION:
The City Attorney recommends that the City Council adopt a resolution approving a $5,700
performance bonus for the City Manager and a contract providing for his continued
employment by the City.
BACKGROUND:
The City Council entered into an employment contract with Mr. Cole in July of 1998 when he
became City Manager. That contract set his salary at $100,000 to be adjusted to up to
$105,000 after six months on the job. In the initial contract, in recognition of the severe fiscal
crisis then facing Azusa, he voluntarily waived a number of benefits given to all of the City's
other executive managers.
Following a performance evaluation in 1999, the City Council approved an amendment to the
employment contract, adjusting his salary to $105,000. 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. His salary has not been raised since the 1999
increase and a recent salary survey showed him to be the second-lowest salaried City Manager
among 14 cities in the East San Gabriel Valley.
The City Council recently conducted an evaluation of the city manager and concluded that Mr.
Cole's job performance exceeds most, if not all, the established measures for the job. The
Council also concluded that Mr. Cole consistently performs at or above expectations. As a
result of his particularly high performance in the areas of restoring fiscal stability, administering
the Citizens Congress and NIZ community efforts, assisting in the implementation of creative
solutions to the energy crisis, establishing a strong team of employees and promoting the City,
the City Council desires to award a $5,700 performance bonus to the city manager in addition
to revising his contract to extend more, but not all, of the benefits available to the City's
Executive Managers.
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In accordance with the Council's direction, the city attorney has prepared a resolution
-providing for the $5,700 bonus and approving the revised employment contract. The contract
is substantially similar to the original contract adopted in July 1998. The proposed contract
differs in that it provides for cost of living increases for 2001, 2002 and 2003, and additional
benefits such as bilingual pay eligibility (conditioned upon passing the City's standard tests),
deferred compensation, two floating holidays, computer loan eligibility, and tuition
reimbursement eligibility at Cal State University rates. The resolution also provides that the
salary cost of living increase shall be deemed effective as of January 1, 2001 in accordance
with the performance evaluation timetable set forth in the pre-existing employment contract.
FISCAL IMPACT:
In addition to the $5700 performance bonus, the annual cost of raising the City Manager's
salary from $105,000 to $108,360 and additional benefits is estimated at $4,440. The value
of future cost of living adjustments are capped at 5% in July 2002 and 6% for July 2003.