HomeMy WebLinkAbout06 AMENDMENTS TO EMPLOYMENT AGREEMENTS - DEPUTY CITY MANAGER/POLICE CHIEFAgenda Item 6
Reviewed:
AGENDA REPORT City Manager
Finance Director T�,/ A
MEETING DATE: JULY 2,2013
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: CITY MANAGER'S OFFICE & HUMAN RESOURCES DEPARTMENT
SUBJECT: AMENDMENTS TO DEPUTY CITY MANAGER AND POLICE CHIEF
EMPLOYMENT AGREEMENTS
SUMMARY
The City Manager has executed amendments to the employment agreements with the
Deputy City Manager and the Police Chief. Approval by the City Council would ratify
these contract amendments and clarify that the City Manager continues to be
authorized to execute individual employment agreements and amendments to individual
employment contracts, consistent with the Tustin City Code.
• �� •,1_
It is recommended that the City Council take the following actions:
1. Adopt City Council Resolution No. 13-69 to ratify the amendment to the
employment agreement with the Deputy City Manager; and
2. Adopt City Council Resolution No. 13-70 to ratify the amendment to the
employment agreement with the Police Chief; and
3. Clarify existing policy by formally acknowledging that the City Manager will
continue to have the authority to execute individual employment contracts and
amendments to individual employment contracts in accordance with the Tustin
City Code.
FISCAL IMPACT
For Fiscal Year 2013-14, the contract amendments for the Deputy City Manager and
Police Chief positions will be roughly cost neutral.
BACKGROUND AND DISCUSSION
In addition to the City Manager, who is appointed directly by the City Council, the City
currently has two at-will executive management positions: Deputy City Manager and
Police Chief. In contrast with other city employees whose salary and benefits are
City Council Agenda Report
July 2, 2013
Amendments to Employment Agreements for Deputy City Manager and Police Chief
Page 2
subject to labor agreements or salary resolutions for the applicable employee group, the
terms of employment for the Deputy City Manager and Police Chief are specified in
individual employment agreements with Charles H. Robinson and Scott M. Jordan,
respectively.
Deputy City Manager
The Deputy City Manager's employment agreement provides that Mr. Robinson shall
receive the same benefits that are provided to other civilian Executive Management
employees such as participation in the CalPERS retirement plan and a Flexible Benefits
contribution for medical, dental, and vision insurance, as outlined in the Executive
Management Salary Resolution. Since Mr. Robinson is enrolled in the City's second-tier
CalPERS retirement plan, he is already paying the full employee contribution of 7%,
which first-tier members will begin to pay effective July 1, 2013.
With the adoption of new labor agreements and resolutions for other City employees,
the City is adding an additional step to the salary schedule (Step F), which is 5% above
the current top step (Step E). Consistent with this action for other employees, the
amendment to the Deputy City Manager's employment agreement will add a Step F to
the Deputy City Manager salary range that is 5% above the existing Step E. Since Mr.
Robinson is currently at Step C, this action will have no financial impact in the upcoming
fiscal year.
At the start of the following fiscal year (July 1, 2014), the Deputy City Manager's
compensation will also be adjusted in conjunction with provisions of the Executive
Management Salary Resolution, consistent with changes being made to employee
compensation citywide. Like other executive management employees, the Deputy City
Manager will pay an additional 3% towards his CalPERS retirement plan, for a total
employee contribution of 10%. Like other executive management employees, the City
will also increase the Deputy City Manager's Flexible Benefits contribution by $125 per
month provided he enrolls in one of the City's medical insurance plans. Since these
changes affect all Executive Management employees, these changes do not require
any amendments to Mr. Robinson's employment agreement.
In addition, eighty (80) hours of General Leave will be added to Mr. Robinson's leave
accrual bank effective July 1, 2013. This action corrects an inadvertent omission made
upon the execution of Mr. Robinson's original employment agreement.
City Council Agenda Report
July 2, 2013
Amendments to Employment Agreements for Deputy City Manager and Police Chief
Page 3
Police Chief
The Police Chief's employment agreement provides that Mr. Jordan currently
contributes 4% towards the CalPERS retirement plan and is scheduled to contribute 6%
as of July 1, 2013. With the contract amendment, consistent with the terms specified in
the new Executive Management Salary Resolution, the Police Chief will begin paying an
additional 5% towards his CalPERS retirement plan, for a total employee contribution of
9%, effective July 1, 2013.
With the adoption of new labor agreements and resolutions for other City employees,
the City is adding an additional step to the salary schedule (Step F), which is 5% above
the current top step (Step E). Since the Police Chief has a single salary rate that can be
considered equivalent to Step E, the City Manager is providing the Police Chief with a
comparable salary increase of 5%, which is equivalent to adding a Step F.
City Manager Authority
Under the terms of the Tustin City Code, the City Manager has the power to act as
"Director of Personnel" and has the "authority to appoint, promote, discipline, demote,
remove, reassign, or dismiss all department heads, officers, and employees of the City"
(except the City Clerk, City Treasurer, and City Attorney). The City Code further
provides that "for all department heads, officers, and employees, normal merit pay
increases will be approved or denied by the City Manager", though "exceptional merit
pay increases" must be approved by the City Council (Tustin City Code § 1415c). This
authority is consistent with the Council/City Manager form of government that is
common in California cities.
Going forward, the City Manager also intends to enter into individual at-will employment
agreements with individuals hired into an executive management position. While all
positions and salary ranges must be approved by the City Council upon adoption of the
City's Classification and Compensation Plans, the City Manager has the authority to
enter into employment agreements with individual employees (Tustin City Code §
1415c).
While the City Manager currently has the authority to enter into and amend employment
contracts, Council acknowledgement of the City Manager's continuing authority will
clarify existing policy, particularly as to contracts previously ratified by the Council,
City Council Agenda Report
July 2, 2013
Amendments to Employment Agreements for Deputy City Manager and Police Chief
Page 4
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A, A,
Derick Yasuda
Human Resources Manager
Attachments:
Charles H. Robinson
Deputy City Manager
1. City Council Resolution No. 13-69
2. Amendment No. 1 to Employment Agreement with Charles H. Robinson
3. City Council Resolution No. 13-70
4. Amendment No. 1 to Employment Agreement with Scott M. Jordan
RESOLUTION NO. 13-69
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, RATIFYING AMENDMENT NO. 1
TO THE EMPLOYMENT AGREEMENT WITH THE
DEPUTY CITY MANAGER
WHEREAS, the City Manager of the City of Tustin, California (the "City ")
executed an Employment Agreement ( "Agreement ") with Charles H. Robinson to serve
as the Deputy City Manager effective December 26, 2012; and
WHEREAS, the City Council ratified the Agreement on January 15, 2013; and
WHEREAS, the City Manager has amended the Deputy City Manager's contract,
consistent with changes made in the Executive Management Salary Resolution;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Tustin hereby ratifies the Agreement as amended by Amendment No 1 attached hereto
and incorporated by reference.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 2nd day of July 2013.
••.
Mayor
ATTEST:
JEFFREY C. PARKER
City Clerk
STATE OF CALIFORNIA )
Resolution 13 -69
Page 1 of 2
COUNTY OF ORANGE SS
CITY OF TUSTIN
1, Jeffrey C. Parker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 13-69 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 2nd day of
July 2013, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
JEFFREY C. PARKER
City Clerk
Resolution 13-69
Page 2 of 2
CITY OF TUSTIN
AMENDMENT NO. 1 TO
EMPLOYMENT AGREEMENT
This Amendment No. 1 to the EMPLOYMENT AGREEMENT ( "Agreement ") is made
effective as of July 1, 2013, and is entered into by and between the CITY OF TUSTIN, a
California municipal corporation (the "City ") and Charles H. Robinson, an individual
( "Employee ").
WHEREAS, the City and Employee have entered into the Agreement effective
December 26, 2012; and
WHEREAS, the parties desire to amend the Agreement to provide Employee with
compensation adjustments consistent with those provided to other Executive Management
employees; and
NOW, THEREFORE, 4 is mutually agreed by and between the City and Employee as
follows:
Section 1: Salary
Sentences shall be added to Section 4 of the Agreement (Salary), to read as follows:
"Effective with the adoption of this Agreement, Employee's annual salary shall
remain at $139,232.70 (Step C)."
"Effective the pay period that includes July 1, 2013, the salary range for the
classification of Deputy City Manager shall include a new Step F, which is five
percent (5 %) above Step E. The annual salary at Step F shall be $161,547.88."
Section 2: General Leave Bank
A sentence shall be added to Section 5 of the Agreement (Benefits and Leaves of
Absence), to read as follows:
"Effective the pay period that includes July 1, 2013, 80 hours of General Leave
shall be added to Employee's General Leave accrual bank."
Section 3: Other Terms and Conditions
Except as expressly amended herein, all other terms and conditions of the Agreement
shall remain in full force and effect.
Page 1 of 2
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the dates reflected below each signature.
CITY EMPLOYEE
CITY OF TUSTIN
A Municipal Corporation
LIM
JEFFREY C. PARKER
City Manager
ATTEST:
ERICA RABE
City Clerk Services Supervisor
DAVID E. KENDIG
City Attorney
0
DATE:
Page 2 of 2
CHARLES H. ROBINSON
Employee
RESOLUTION NO. 13-70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, APPROVING AMENDMENT NO. 1
TO THE EMPLOYMENT AGREEMENT WITH THE POLICE
CHIEF
WHEREAS, the City Council of the City of Tustin, California (the "City") approved
an Employment Agreement ("Agreement") with Scott M. Jordan to serve as Police Chief
effective May 15, 2012; and
WHEREAS, the City Manager has amended the Police Chief's contract,
consistent with changes made in the Executive Management Salary Resolution;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Tustin hereby ratifies the Agreement as amended by Amendment No 1 attached hereto
and incorporated by reference.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Tustin held on the 2nd day of July 2013.
ELWYN A. MURRAY
Mayor
ATTEST:
JEFFREY C. PARKER
City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE SS
CITY OF TUSTIN
Resolution 13-70
Page 1 of 2
I, Jeffrey C. Parker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, do hereby certify that the whole number of the members of the City Council of
the City of Tustin is five; that the above and foregoing Resolution No. 13-70 was duly
passed and adopted at a regular meeting of the Tustin City Council, held on the 2nd day of
July 2013, by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
JEFFREY C. PARKER
City Clerk
Resolution 13-70
Page 2 of 2
CITY OF TUSTIN
AMENDMENT NO. I TO
EMPLOYMENT AGREEMENT
This Amendment No. I to the EMPLOYMENT AGREEMENT ("Agreement") is made
effective as of July 1, 2013, and is entered into by and between the CITY OF TUSTIN, a
California municipal corporation (the "City") and Scott M. Jordan, an individual ("Employee").
WHEREAS, the City and Employee have entered into the Agreement effective
December 26, 2012; and
WHEREAS, the parties desire to amend the Agreement to provide Employee with
compensation adjustments consistent with those provided to other Executive Management
employees; and
NOW, THEREFORE, it is mutually agreed by and between the City and Employee as
follows:
Section 1: Salary
A sentence shall be added to Section 4 of the Agreement (Salary), to read as follows:
"Effective the pay period that includes July 1, 2013, Employee's annual base
salary shall be increased to $199,539."
Section 2: CaIPERS Retirement
The following sentence shall be deleted from Section 5 of the Agreement (Benefits and
Leaves of Absence):
"Effective with the pay period that includes July 1, 2013, the City will contribute
three percent (3%) toward the employee contribution of nine percent (9%)."
In its place, a sentence shall be added to Section 5 of the Agreement (Benefits and Leaves
of Absence), to read as follows:
"Effective the pay period that includes July 1, 2013, Employee is responsible for
paying the full employee contribution of nine percent (9%)."
Section 3: Other Terms and Conditions
Except as expressly amended herein, all other terms and conditions of the Agreement
shall remain in full force and effect.
Page 1 of 2
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the dates reflected below each signature.
CITY EMPLOYEE
CITY OF TUSTIN
A Municipal Corporation
M
JEFFREY C. PARKER
City Manager
ATTEST:
ERICA RABE
City Clerk Services Supervisor
APPROVED AS TO FORM:
DAVID E. KENDIG
City Attorney
By:
Page 2 of 2
SCOTT M. JORDAN
Employee