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HomeMy WebLinkAboutF- 5 Staff Report Subcommitee City Manager Contracting CompensationCONSENT CALENDAR TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: COUNCILMEMBERS CHAGNON AND STANFORD DATE: APRIL 7, 2003 SUBJECT: SUBCOMMITEE REPORT ON CITY MANAGER CONTRACT/COMPENSATION Recommendation: It is recommended that the City of Azusa approve the City Manager Employment Agreement and salary increase. Background: The City Council entered into an Employment Agreement with the City Manager in July of 2002. That Agreement provides that the City Council shall conduct an annual evaluation of the City Manager based on the terms of the Agreement, the City’s work plan approved by the City Council and directives given to the City Manager by the City Council. The Agreement also provides that the City Council may renegotiate the Agreement from year to year. The Subcommittee 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. The Subcommittee directed the City Attorney to revise the Agreement in four minor areas and adjust the City Manager’s compensation. Analysis: In accordance with the Subcommittee’s direction, the City Attorney has prepared a proposed Employment Agreement for the City Manager. The proposed Agreement is substantially similar to the Agreement adopted in July 2002. However, the proposed Agreement differs from the 2002 Agreement in the following ways: ORANGE\MXS\4379 (1) Cellular Phone The following sentence was deleted from Section 7(c) relating to the City Manager's use of a City issued cellular phone: "Employee shall promptly reimburse the City for all personal calls on the cellular phone." This standard is consistent with the City Manager’s use of a City vehicle and with the flat rate structure of the charges. (2) Outside Professional Activities Section 9 was amended to reflect previous City Council discussions on the topic and reads as follows: “Employee, with prior written approval of the City Council, may undertake outside professional activities for compensation (excluding travel expenses and honoraria), including consulting, teaching, training and speaking, provided they do not interfere with Employee’s normal duties and are done during personal leave or holiday time of Employee and are not done with any existing vendors or contractors of City. Employee shall provide the City Council written notice before undertaking any such out of town outside professional activities. This notice requirement may be met by including a notice in the Council Update. Under no circumstances shall such outside activities create a conflict of interest between the duties of the City Manager and the interests of the City.” (3) Termination for Cause Section 12(b) was amended to include more precise language to clarify the grounds for termination. This section was amended as follows: "If Employee is terminated for cause, then employee shall not be entitled to any severance benefits. Termination shall be for "cause", for the purpose of this paragraph, shall mean if Employee: (i) acts in bad faith and to the detriment of the City; (ii) refuses or fails to act in accordance with any specific direction or order of the City Council; (iii) exhibits misconduct or dishonesty in regard to his employment; or (iv) is convicted of a misdemeanor or felony crime. Examples of “cause” include, but are not limited to, the following: 1. Immoral or unprofessional conduct; 2. Incompetency; 3. Persistent violation of or refusal to obey federal, state, or local laws or regulations; 4. Conviction of a felony or of any crime involving moral turpitude as defined by relevant case law; 5. Theft and/or embezzlement of City funds and/or property; ORANGE\MXS\4379 6. Unlawful discrimination; 7. Gross insubordination to the City Council; or 8. Willful destruction of City property. (4) Probation Section 12(e) relating to the City Manager’s probationary term (e.g., first six months of his employment) was deleted since this probationary term has expired. (5) Salary Increase Section 2(b) was amended to reflect an increase in the City Manager’s salary from Step 2 ($120,750) to Step 4 ($132,250). This increase in salary would align the City Manager’s salary with those of other City Managers in neighboring cities and also reflect his outstanding performance. Fiscal Impact: The increase in salary would result in an additional expenditure of $11,500 per year.