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HomeMy WebLinkAbout2006-05-03 STAFF REPORTS 2K o�QpLM SA4 0 U ,n t fi + [ i °aortme°.4'4 Cq<IFOR��P CITY COUNCIL STAFF REPORT DATE: May 3, 2006 Consent Agenda SUBJECT: City Manager Contract Amendment # 2 FROM: Douglas Holland, City Attorney SUMMARY As a result of City Council's recent completion of the City Manager's annual evaluation process, this action would approve Amendment No. 2 to the City Manager's employment agreement which was initially entered into on May 17, 2000. RECOMMENDATION: 1. Adopt Minute Order No. , authorizing the approval of Amendment No. 2 to the City Manager Employment Agreement. STAFF ANALYSIS: City Council has completed the City Manager's annual evaluation and has requested this amendment to the City Manager's employment agreement be placed on the agenda for legislative action. As part of the evaluation process, the City Council outlined a set of goals for the City Manager to work toward achieving during the next twelve month period. This amendment is in recognition of the City Manager's almost six years of :service to the City of Palm Springs. The amendment involves a raise in the City Manager's salary to $200,000 a year which is more in line with several other Coachella Valley cities including Rancho Mirage, Indian Wells, and Palm Desert. (The new salary is still significantly less than Indio's City Manager's salary.) This raise will be in lieu of any other salary increase for fiscal year 2006/7 unless specifically approved by the City Council. The amendment also provides for twelve months "severance pay" for involuntary termination which reflects agreements with managers in Indio, Rancho Mirage, and Indian Wells. Finally, unless the manager meets criteria for retiree health insurance as allowed under the current personnel rules, he will be permitted to purchase health insurance after his service to the city, at his sole cost and expense and therefore at no cost to the city Item No. 2. K . City Council Staff Report (insert meeting date) -- Page 2 (insert brief title) FISCAL IMPACT: Finance Director Review: There are sufficient dollars in the current budget to cover the proposed salary increase. Also, there will be no budget impact on the severance clause unless the City Council by rnajority vote enacts the termination without cause provisions of the contract. Finally, there will be no cost impact to the city with regard to future health insurance as the rnana�g�er 'I e required to pay full cost of coverage. Douglas Iland, City Attorney Attachments: 1. Minute Order 2. Amendment No. 2 MINUTE ORDER NO. AUTHORIZING THE APPROVAL OF AMENDMENT NO. 2 TO THE CITY MANAGER EMPLOYMENT AGREEMENT. I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order, authorizing the approval of Amendment No. 2 to the City Manager E=mployment Agreement, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 3rd day of May, 2006. James Thompson, City Clerk AMENDMENT No. 2 TO EMPLYMENT AGREEMENT This Amendment No. 2 to Employment Agreement ("Amendment") is made and entered into this 3d day of May, 2006, by and between the City of Palm Springs, a California charter city ("City") and David H. Ready ("Manager"). Recitals A. The City Council of City has completed its most recent annual performance evaluation of Manager and based thereon desires to modify certain terms and conditions of the underlying employment agreement the City and Manager, dated May 17, 2000, and amended on July 5, 2001. (The employment agreement, as amended, is referred to as "Agreement.") B. Manager is agreeable to modifying certain terms and conditions of the Agreement pursuant to the terms of this Amendment. Now Therefore, in consideration of the promises and covenants contained in this Amendment, and other good and valuable considerations, the receipt and sufficiency of which are acknowledged, the parties to this Amendment agree: Agreement Section 1. The second sentence of Subsection A of Section 3 of the Agreement (entitled "Termination and Severance Pay") is amended to read: "The City Council may in its absolute discretion if approved by three (3) members at a meeting held in accordance with the provisions of the Brown Act (Gov. Code Section 54950 et seq.) terminate the employment of Manager at any time, with or without cause, provided that upon termination the City shall pay Manager as severance pay a lump sum cash payment equal to twelve (12) months' salary." Except as provided above, the provisions of Subsection A of Section 3 shall remain in full force and effect. Section 2. The first sentence of Section 4 of the Agreement (entitled "Salary") is amended to read: "City agrees to pay Manager for his services rendered pursuant to this Agreement, an annual base salary of$200,000.00 annually, payable in the same manner and at the same time as other employees of the City are paid. " Except as provided above, the provisions of Section 4 of the Agreement shall remain in full force and effect. Section 3. Manager shall not be entitled to the annual adjustment provided in Section 4 of the Agreement until the Anniversary Date in 2007. Section 4. Subsection E is added to Section 5 of the Agreement to read: E. Upon leaving city service and unless Manager meets criteria for retiree health insurance as allowed under the current personnel rules, Manager may elect to remain a member of a city health insurance program (which may be the health insurance program the Manager was enrolled in at the time he leaves service or another health insurance program as the City in its sole discretion may designate). In the event Manager elects to remain in such program, the Manager shall pay all premiums and shall otherwise be responsible for all costs for such insurance program. Manager's rights to make the election provided in this subsection shall expire 60 days after the Manager leaves service. Section 5. The parties agree that, except as specifically provided in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date first written above. City of Palm Springs a California charter City Mayor Attest: Approved as to Form: City Clerk City Attorney David H Ready David H. Ready