HomeMy WebLinkAbout1996-11-19; City Council; 13913; APPROVAL LETTER OF UNDERSTANDING WITH CITY MANAGER*
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CITY MGI DEPT. MAYOR
CITY AT7 MTG. 11- 19- 76
DEPT. HI TITLE APPROVAL OF LETTER OF UNDERSTANDING WITH
THE CITY MANAGER
RECOMMENDED ACTION:
Adopt Resolution No. 96 39L/ approving the Letter of Understanding with the City
ITEM EXPLANATION:
The Letter of Understanding of the City Manager has not been updated since 1987,
of Understanding would review and update that action and provide a supplement '
of the City Manager set forth in the Municipal Code. The Letter of Understanding I
employment relationship between the City Council and the City Manager and esi
compensation through January 1, 1998, after which time it may be adjusted by resc
City Council. The Letter of Understanding also sets forth the compensation of the C
as the Executive Director of the Redevelopment Commission and Executive Mal
Carlsbad Municipal Water District. It also provides for a vehicle or a vehicle allow:
provides for annual reviews, annual goal setting defining such goals and
objectives for the necessary and proper operation of the City and the attainmen
Council's policy objectives. It reconfirms the Council's continued support and enr
of continuing development and professionalism of the City organization and its emp
I FISCAL IMPACT:
The City Manager's compensation adjusted two percent (2%) effective January 1 ,
percent (3%) on January 1 , 1997 and three percent (3%) on January 1 , 1998. A or
sum cash payment of two percent (2%) is also provided. Compensation as Execu
of the Redevelopment Commission is increased from $100 to $300 per
compensation for Executive Manager of the Carlsbad Municipal Water District is e!
$300 per month. There is an increase in the auto allowance from the existing $25
to $350 per month. There are sufficient funds in the Council's contingency fund to F
adjustments.
I EXH'BITS:
1. Resolution No. 76 &3'i Y , (Exhibit "A" attached to Resolution).
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RESOLUTION NO. 96-294
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALiFORNlA APPROViNG THE LETTER OF
UNDERSTANDING FOR THE CITY MANAGER.
WHEREAS, the City Council desires to continue the services
of Raymond R. Patchett as City Manager, and
WHEREAS, those functions, duties, obligations, benefits and
compensation are amrately set forth in the Letter of Understanding attached
hereto as Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED by the City Council of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the City Manager's Letter of Understanding set fortl
"A" is approved.
3. That funds sufficient to pay for the adjustments in compf
transferred from the Council's general fund contingency account and th
Management Director is authorized to make such changes.
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PASSED, APPROVED AND ADOPTED at a Regular Meetir
Carlsbad City Council held on 12hday of NOVEMBER 1996 by the following vote,
~ AYES: Council Members Lewis, Nygaard, Kulchin, Finnila,
NOES: None
ABSENT: None
AlTEST:
nt City Clerk
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LETTER OF UNDERSTANDING
This Letter of Understanding is made and entered
into this 21st day of NOVEMBER , 1996, by and between thc
City of Carlsbad, a municipal corporation of the State oi
California ( I1CityB1) , and Raymond R. Patchett (sometime:
hereinafter referred to as tlEmployeell), both of whor
understand as follows:
RECITALS
WHEREAS, Chapter 2.12 of the Carlsbad Municipal
Code provides for the Off ice of the City Manager who shal:
be appointed and retained by the City Council wholly on thc
basis of his or her administrative and executive ability anc
qualifications and shall hold that office for and during thl
pleasure of the City Council, and
WHEREAS, the Council desires to continue thl
employment of Raymond R. Patchett as City Manager, and
WHEREAS, it is the desire of the parties hereto t
provide a supplement to those functions and duties set fort
in Chapter 2.12 of the Carlsbad Municipal Code and SUC
other benefits as set forth in the Management Compensatio
and Benefits Plan Council Policy No. 36 or its successo
policy, and to provide that the City Manager remain in SUC
employment; to make possible full work productivity b
assuring his morale and peace of mind with respect to futur
security; to act as a deterrent against malfeasance c
dishonesty for personal gain on his part; and to provide fc
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terminating his services at such time as he may be unable to
fully discharge his duties or when the City Council may
otherwise desire to terminate his employment.
NOW, THEREFORE, in consideration of the mutual
covenants herein contained, the parties agree as follows:
SECTION I DUTIES
The City Council hereby agrees to continue the
employment of Raymond R. Patchett as City Manager and tc
exercise the powers, duties and responsibilities set forth
in Carlsbad Municipal Code Chapter 2.12 and applicable state
law and such other applicable ordinances and resolutions now
in effect or hereafter adopted by the City Council.
SECTION I1 TERM
Raymond R. Patchett was appointed City Manager on
September 8, 1987 and shall continue in that capacity and
shall continue to fulfill the powers, functions and duties
of City Manager and shall serve in that capacity until such
time as this Letter of Understanding is terminated pursuant
to Section I11 below.
The term of this Letter of Understanding shall
commence on the date approved by the City Council for an
initial two year period and on January 1 of each year shall
automatically be extended for an additional two year period
unless terminated pursuant to Section I11 below. The
purpose of this paragraph is to ensure compliance with
Government Code section 53260 .
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Nothing in this Letter of Understanding shall
prevent, limit or otherwise interfere with the right of the
City Manager to resign at any time subject only to the
provisions set forth in Section I11 below.
Employee agrees to remain in the exclusive employ
of the City and neither to accept other employment or to
become employed by any other employer without the express
permission of the City Council; provided, nothing contained
herein shall be construed or interpreted to prohibit
Employee from engaging in such occasional activity such as
teaching, writing or consulting which activity shall only be
conducted apart from his normal and regular functions and
duties.
SECTION I11 SEPARATION FROM EMPLOYMENT
In the event the City council desires to terminate
this Letter of Understanding during which time Employee is
ready, willing and able to perform the functions and duties
set forth herein, then, in that event, City Council agrees
to pay Employee, in addition to any other amount that may bc
due at the time of termination of employment of this Lettex
of Understanding, a lump sum cash payment equal to one montk
of pay at the rate in effect at the time of termination foz
each year of employment with the City up to a maximum of 1;
months
However, in the event Employee is separated fro1
employment because of his conviction of any illegal acl
involving personal gain or moral turpitude, then, in thal
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event, the City eound.1 shall have no obl!gat:on to make the
above specified payment.
In the event Employee desires to separate fron:
employment, this Letter of Understanding during such time as
the City Council desires Employee to continue in his
capacity as City Manager, then, in that event, Employe€
agrees to provide Council with 60 days written notice oi
said separation.
SECTION IV SALARY
The base compensation of the City Manager shall bt
adjusted by the addition of two percent to the current bi-
weekly compensation of $4,228. This adjustment brings thc
bi-weekly compensation for the City Manager to $4,31;
effective January 1, 1996. The City Manager's compensatiol
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shall be further adjusted three percent annually effectivc
January 1, 1997 and three percent annually effective Januar
1, 1998. The City Manager shall also receive a one-timl
lump sum merit bonus equal to two percent of his annua
salary in recognition of continued outstanding contribution,
to the City and to encourage such activities in the future
upon execution of this Letter of Understanding. Afte
January 1, 1998 compensation of the City Manager may b
adjusted from time to time during the term of this Letter o
Understanding by resolution of the City Council.
SECTION V OTHER DUTIES
The City Manager shall also serve as the Executiv
Director of the Redevelopment Commission and the Executiv
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Manager of the Carlsbad Municipal Water District and shall
receive the sum of $300 per month for each position
effective January 1, 1996.
SECTION VI VEHICLE ALLOWANCE OR PROVISION OF VEHICLE
The City Manager's functions and duties require
him to have use of an automobile during his employment with
the City. The City shall reimburse the City Manager the
monthly sum of $350 for the expense of owning, operating and
maintaining and insuring his personal automobile effective
January 1, 1996.
In lieu of a vehicle allowance, the City Manager
may elect to allow the City to lease on behalf of Employee E
standard size vehicle on general terms and conditions
commercially available. In this case, the City shall bc
responsible for all lease payments, maintenance anc
operational costs except that Employee shall be responsiblt
for maintenance costs when out of town on overnight 01
longer non-City purposes. Employee shall keep and maintail
in full force and effect personal liability and propert]
damage insurance in the minimum amounts of $250,000 pe:
person and $500,000 per occurrence and property damage 0:
$100,000, and shall name the.City of Carlsbad as additiona
insured.
SECTION VI1 OTHER SUPPLEMENTAL BENEFITS
The City Manager shall accrue vacation leave an1
sick leave as provided for under existing City policy.
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All other actions taken by the City Council
relating to fringe benefits for management employees shall
be considered actions granting the same to the City Manager.
As used herein, fringe benefits include but are not limited
to vacation, sick leave, educational benefits as they
misted 8n the date bf the appraval 6f this Letter of
Understanding, holidays, retirement (PERS), benefits and
payments, health insurance, dental insurance, long-tern
disability insurance and life insurance. \
SECTION VI11 ANNUAL REVIEW
The City Council shall review and evaluate the
performance of the City Manager in January of each year,
This review and evaluation shall be in accordance with thc
criteria developed jointly by the City Council and the Citj
Manager. The Mayor shall provide the City Manager with z
summary written statement of the Findings of the Cit]
Council and provide an adequate opportunity for the Cit]
Manager to discuss his evaluation with the City Council.
SECTION IX ANNUAL GOAL SETTING
Annually, the City Council and the City Manage]
shall define such goals and performance objectives whicl
they determine necessary for the proper operation of thc
City and an attainment of the City Council's polic!
objectives. They shall also establish a relative priorit!
among these various goals and objectives and this should bc
reduced to writing.
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SECTION X PROFESSIONAL DEVELOPMENT
All normal business expenses, such as attendance
at the League of California Cities, California Redevelopment
Association, International City Managers' Association
meetings and conferences as well as business lunches,
dinners, etc., will be provided for separately in the
operating budget of the City Manager's office.
SECTION XI ORGANIZATION DEVELOPMENT
The City Council continues to support and
encourage continuing development and professionalism of the
City organization and its employees. As such, the City
Council supports the City Manager 1 s organizational
development efforts, including but not limited to, employee
development, department development, and organization-wid6
development. These efforts shall support the City Council
Vision and Goals and provide for the ongoing development oi
a high-performing organization.
SECTION XI1 NOTICES
Notices pursuant to this Letter of Understandinc
shall be given by deposit in the custody of the Unitec
States Postal Service, postage prepaid, addressed as follow!
or as such address may be changed from time to time upo:
written notice to the other:
CITY:
MAYOR
City of Carlsbad
City Hall
1200 Carlsbad Village Drive
Carlsbad, California 92008
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CITY MANAGER:
RAYMOND R. PATCHETT
4904 Via Hinton Carlsbad, California 92008
IN WITNESS WHEREOF, the City and the City Manager
have caused this Letter of Understanding to be executed on
the day and year first written above.
DATED : November 21, 1996 CITY OF CARLSBAD,
a municipal corporation
By:
DATED: November 21, 1996
City%anager
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