HomeMy WebLinkAbout1TCITY COUNCIL STAFF REPORT
DATE: JANUARY 13, 2022 CONSENT CALENDAR
SUBJECT: FIRST AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
FROM: Jeffrey S. Ballinger, City Attorney
SUMMARY:
The current employment agreement between the City of Palm Springs and its City
Manager provides that the City Manager’s Paid Time Off (PTO) is lost if not used at the
end of each year. This proposed amendment would change this arrangement so that the
City Manager’s accumulated leave and maximum accrual would be equal to that of
members of the City’s Management Association.
RECOMMENDATION:
Review and approve the First Amendment to City Manager Employment Agreement and
authorize the Mayor to execute the same on behalf of the City.
BACKGROUND:
The City of Palm Springs entered into an employment agreement with its current City
Manager, as of February 11, 2021, and the City Manager began working at the City on
April 5, 2021.
The employment agreement provides that the City Manager will be entitled to seven (7)
weeks of paid time off (PTO) per year. This amount is in in lieu of all sick leave,
bereavement, family leave, vacation time, etc. The employment agreement also provides
that the City Manager will not be able to cash out any accrued PTO at any time during the
term of the agreement, or afterwards. In other words, the City Manager must use all of
the paid time off or lose such time and its associated cash value every year. The City
Manager is the only City employee with this “use it or lose it” provision. All other City
employees are allowed to roll over and cash out accrued leave, subject to the terms of
each unit’s MOU.
The professional demands of the role of City Manager, especially when new to the
organization, sometimes will not allow all seven (7) weeks of PTO to be used every year.
This results in the loss to the City Manager of the value of his bargained-for PTO. At the
same time, the City has an interest in ensuring that a City Manager not “bank” an
excessive amount of PTO.
Item 1T- 1
City Council Staff Report
January 13, 2022 -- Page 2
First Amendment to City Manager Agreement
In order to address these issues, in lieu of such “use it or lose it” language, the proposed
amendment would provide the City Manager with the same maximum accrual and use of
PTO as that of other management employees within the Palm Springs Management
Association (MAPS) bargaining unit, as such accrual and use provisions may be provided
for from time to time.
For reference purposes, members of the MAPS bargaining unit currently have a
maximum accrual of 712 annual leave hours. This maximum accrual would apply to the
City Manager, under the proposed amendment. In addition, under the proposed
amendment, and based on the current MAPS MOU, the City Manager would be able to
make an irrevocable election, by December 15 of each year, to cash out up to the
maximum number of hours of PTO that he can accrue per year, which will be earned in
the following calendar year at the City Manager’s base rate of pay. In the following year,
the City Manager can receive cash for the annual leave that he irrevocably elected to
cash out in either two (2) increments or one (1). In addition, the City Manager would have
the option of converting accrued and vested annual leave to his deferred compensation
account, as MAPS members are currently allowed to. Finally, upon separation from
employment, the City Manager would be paid, at his then current salary rate, all unpaid
accrued and vested annual leave.
Therefore, the City Attorney recommends that the City Council review and approve the
accompanying amendment, in order to put the City Manager’s PTO accrual and use
provisions on par with other management employees of the City. In order to enable the
City Manager to realize the benefits of this amendment for the first year of the City
Manager’s employment, it is recommended that the amended provisions of the
employment agreement be effective as of December 1, 2021.
ENVIRONMENTAL DETERMINATION:
This amendment has no potential for having any effect on the environment. As such, it
is exempt from the requirements of the California Environmental Quality Act (CEQA).
FISCAL IMPACT:
The fiscal impacts to the City at this time are unknown and would depend on how much
PTO the City Manager is able to use each year or elects to cash out.
REVIEWED BY:
City Attorney: Jeffrey S. Ballinger
ATTACHMENTS:
1. First Amendment to City Manager Employment Agreement.
Item 1T- 2
55575.18110\34597051.1
1
CITY OF PALM SPRINGS
FIRST AMENDMENT TO
CITY MANAGER EMPLOYMENT AGREEMENT
This First Amendment to City Manager Employment Agreement (“Amendment”) is
entered into as of the _____ day of ___________________, 2022, between the City of Palm
Springs (hereinafter referred to as the “City”) and Justin Clifton (hereinafter referred to as the
“City Manager” or “Employee”).
RECITALS
WHEREAS, the City and City Manager have previously entered into that certain City
Manager Employment Agreement, dated as of February 11, 2021 (the “Agreement”); and
WHEREAS, it is the desire of the Parties to amend the Agreement to bring into alignment
the City Manager’s paid time off accumulated leave/maximum accrual with those provided to
other City executives.
NOW, THEREFORE, the Parties hereby mutually agree and promise as follows:
1. Amendment of Section 3.7 (Paid Time Off). Section 3.7 (Paid Time Off) of the
Agreement is hereby amended to read as follow:
“In lieu of any other sick leave, bereavement, vacation leave, family illness leave,
or any other leave, City Manager shall be entitled to seven (7) weeks of paid time
off (PTO), per year. Such PTO shall accrue as of January 1 of each year of
employment. Except as set forth in the preceding sentences, the City Manager’s
maximum accrual, annual cash-in, eligibility to use, and disposition upon
separation shall be the same as that of provided to members of the Palm Springs
Management Association (MAPS), as such provisions may be amended from time
to time.”
2. Effective Date. This Amendment shall be effective as of December 1, 2021.
3. Remaining Terms. Except as specifically amended by this First Amendment, all other
terms of the Agreement shall remain as set forth in the Agreement.
[SIGNATURES CONTAINED ON FOLLOWING PAGE]
Item 1T- 3
55575.18110\34597051.1
2
IN WITNESS WHEREOF, the parties have executed this First Amendment to City
Manager Employment Agreement effective as of the date first written above.
EMPLOYEE/CITY MANAGER
Justin Clifton
Date: ___________________________
CITY OF PALM SPRINGS, a Charter City
and California municipal corporation
Lisa Middleton
Mayor
Date: ___________________________
ATTEST:
Anthony Mejia, MMC
City Clerk
APPROVED AS TO LEGAL FORM:
Jeffrey S. Ballinger
City Attorney
Item 1T- 4