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 os 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