HomeMy WebLinkAbout10/3/2007 - STAFF REPORTS - 2.O.0�pALM SA�'�
QF��N�p CITY COUNCIL STAFF REPORT
DATE: October 3, 2007
SUBJECT: City Manager Employment Agreement Amendment No. 3
FROM: Douglas Holland, City Attorney
SUMMARY
As a result of the City Council's completion of the City Manager's annual evaluation
process, this action would approve Amendment No. 3 to the City Manager's
employment agreement.
RECOMMENDATION
Approve, and authorize the Mayor to execute on behalf of the City, Amendment No. 3 to
the City Manager's Employment Agreement.
STAFF REPORT
The 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 Council agenda for 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.
The amendment involves a raise in the City Manager's salary to $250,000.00 a year
which is competitive with the salaries or City Managers in the Coachella Valley. The
amendment also makes adjustments in the City Manager's eligibility requirements for
retiree health insurance but fixes the benefit at the cost for single person Blue Cross
PPO insurance premium (as compared to all other exempt employees who are
reimbursed for the cost of two party health insurance premiums) -
FISCAL IMAPCTS
There gufficient funds in the current budget to cover the proposed salary increase.
�r
Douglas Holland, City Attorney
Attachment: Amendment No. 3
ITEM NO. _2Q
AMENDMENT No. 3 TO EMPLOYMENT AGREEMENT
This Amendment No. 3 to Employment Agreement ("Amendment") is
made and entered into this 3d day of October, 2007, by and between the City of
Palm Springs, California charter city ("City") and David H. Ready ("Manager').
Recitals
A. The City Council has completed its most recent annual performance
evaluation of the Manager and based thereon desires to modify certain terms
and conditions of the Manager's employment agreement with the City, as
amended ("Agreement").
B. Manager is agreeable to modifying certain terms and conditions of the
Agreement pursuant to the terms of this Amendment.
In consideration of the promises and covenants contained in this Amendment
and other good and valuable considerations, the City and the Manager agree:
Agreement
Section 1. 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 $250,000.00 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 2. Subsection E of Section 5 of the Agreement is amended to read:
E. Upon leaving city service, 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 city 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 city service.
O069012'
Section 3, Subsection F is added to Section 5 of the Agreement to read:
F. In lieu of and notwithstanding the provisions of Section 4-B of City
Council Resolution No. 21962, as may be amended from time to time, the
Manager shall be reimbursed upon separation from service as an employee of
the City the costs for the single person Blue Cross PPO, as the City may amend
from time to time, as follows:
1) After 7.5 years of full-time continuous service with the City,
50% of the cost of the health insurance premium;
2) After 11.5 years of full-time continuous service with the City,
75% of the cost of the health insurance premium; and
3) After 15.5 years of full-time continuous service with the City,
100% of the cost of the health insurance premium.
Manager shall not receive reimbursement for health insurance premiums until the
date of his separation from city service or his 50t" birthday, whatever date occurs
last and only so long as Manager maintains continuous membership in a city
approved health plan at his own expense.
Manager shall not be eligible for or entitled to any of the benefits provided in this
Subsection F in the event Manager voluntarily leaves city service prior to his 50th
birthday.
Section 4. The City and the Manager agree that the terms of the Agreement
shall remain unchanged and in full force and effect, except as specifically
provided in this Amendment.
IN WITNESS WHEREOF, the City and the Manager have executed and entered
into this Amendment as of the date first written above.
City of Palm Springs Manager
A California Charter City
Mayor David H. Ready,E_sq., Ph.D.
Attest: Apjjprrov"As�tooFForm:
City Clerk Cily P(ttorney
000003