HomeMy WebLinkAbout2001-03-13; City Council; 16114; Letter Of Understanding With The City ManagerCITY OF CARLSBAD - AGENDA BILL f?J
AB# /(. /i/q TITLE. j@i%bVAL OF AMENDMENT NO. 3 TO LElTER OF DEPT. HO.
MTG. 3-/3 -l7/ UNDERSTANDING DATED NOVEMBER 21,1996, WITH THE CITY MANAGER
DEPT. MAYOR
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RECOMMENDED ACTION:
Adopt Resolution No. ~~‘-~~ , approving Amendment No. 3 to Letter of Understanding
with the City Manager.
ITEM EXPLANATION:
The compensation provisions of the Letter of Understanding of the City Manager were last
adjusted effective January 1, 1999. This Amendment No. 3 to the Letter of Understanding
would adjust the compensation of the City Manager by 7.5% effective January 1, 2000 and
7.5% effective January 1, 2001 and replace those provisions of the City’s contribution to his
deferred compensation plan which expire December 31, 2001 with other compensation. This
amendment to the City Manager’s Letter of Understanding also provides for future
compensation adjustments of 6% effective January 1, 2002 and 6% effective January 1,
2003 or such other additional compensation adjustments as established by resolution of the
City Council.
The Letter of Understanding sets forth the employment relationship between the City Council
and the City Manager and supplements his duties as set forth in Chapter 2.12 of the
Carlsbad Municipal Code. It provides for annual reviews, annual goal setting defining such
goals and performance objectives as may be necessary for the efficient and proper operation
of the City and the attainment of the City Council’s policies and objectives. It reconfirms the
Council’s continued support and encouragement of continuing development and
professionalism of the City organization and its employees.
FISCAL IMPACT:
The cost of the proposed amendments to the City Manager’s compensation will be
approximately $10,200 in calendar year 2000; $11,000 in calendar year 2001; $9,500 in
calendar year 2002; and $10,000 in calendar year 2003. The Finance Director is directed to
appropriate the necessary funds from the General Fund balance to the City Manager’s
budget to support these costs.
ENVIRONMENTAL REVIEW:
This amendment is statutorily exempt from CEQA pursuant to Public Resources Code
section 21080(b)(l).
EXHIBITS: z is 1. Resolution No. a/- &
z 0
RESOLUTION NO. 2001-84
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD; CALIFORNIA, AMENDING THE AGREEMENT
3 LETTER OF UNDERSTANDING BETWEEN THE CITY
COUNCIL AND THE CITY MANAGER 4
5 WHEREAS, the City Council determines it is necessary and appropriate to
6 amend its Letter of Understanding with the City Manager,
7 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
a Carlsbad, California, as follows:
9 1. That the above recitation is true and correct.
10 2. That the Letter of Understanding between the City Council and City 11
,2 Manager dated November 21,1996 and as previously amended by Amendment No. 1 on
13 August 10, 1999 and Amendment No. 2 on October 17,2000, is further amended by
14 Amendment No. 03 attached to this resolution.
15 3. That the Finance Directed is directed to transfer the necessary funds
l6 from the General Fund balance to the City Manager’s budget to support the costs of this
17 amendment.
18
19 PASSED, APPROVED AND ADOPTED at a regular meeting of the City
2. Council of the City of Carlsbad held on the 13th day of March ,200l by the
21 following vote, to wit:
22 AYES: Council Members Lewis, Finnila, and Hall.
Council Member
AMENDMENT NO. 03 TO AGREEMENT
LETTER OF UNDERSTANDING
This Amendment is entered into and effective as of the 19th day of
March , 2001, amending the Letter of Understanding dated November 21,
1996 by and between the City Council of the City of Carlsbad, (hereinafter “Council”)
and Raymond R. Patchett, City Manager (hereinafter “City Manager”) as follows:
RECITALS
WHEREAS, the initial agreement, dated November 21, 1996 identified
with particularity the employment agreement between Council and City Manager; and
WHEREAS, the parties to this aforementioned agreement desire to
amend its provisions pertaining to compensation and professional development; and
WHEREAS, those sections are amended to read as shown on Exhibit “A”
to this amendment,
NOW, THEREFORE, in consideration of these recitals and the mutual ’
covenants contained herein, the City Council and the City Manager agree as follows:
1. That the Letter of Understanding dated November 21,1996 approved
by City Council Resolution No. 96-395, and as amended by Resolution No. 99-280
dated August IO, 1999 and Resolution No. 2000-319 dated October 17,2000, is further
amended as shown on Exhibit “A”.
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2. Except for this amendment, all other terms and conditions of said
Letter of Understanding remain unchanged and in full force and effect.
DATED: 3/16/01
By:
DATED: 3/19/01
EXHIBIT “A”
TO AGREEMENT LETTER OF UNDERSTANDING
BETWEEN THE CITY COUNCIL AND THE CITY MANAGER
SECTION IV SALARY
The base compensation of the City Manager shall be adjusted by the
addition of seven and one half percent (7.5%) to the current bi-weekly compensation of
$4,757. This adjustment brings the bi-weekly compensation for the City Manager to
$5,114 effective January 1, 2000 and by seven and one half percent (7.5%) effective
January 1, 2001 for a bi-weekly compensation of $5,497. These compensation figures
shall be further adjusted by six percent (6%) effective January 1, 2002 and by six
percent (6%) effective January 1, 2003 or by such other additional amounts as
determined by a resolution of the City Council.
SECTION VII OTHER SUPPLEMENTAL BENEFITS
The City Manager shall accrue vacation and sick leave as provided for
under existing City policy.
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, except that the City Manager may decline any fringe benefits to the extent
permitted or authorized by law, City policy, or this agreement. As used herein, fringe
benefits include but are not limited to vacation, sick leave, educational benefits as they
existed on the date of the approval of this Letter of Understanding, holidays, retirement
(PERS), benefits and payments, health insurance, dental insurance, long-term disability
insurance, and life insurance as set .forth in the Performance Management and
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Compensation Plan and elsewhere. The City Manager may elect to participate in any
of the medical insurance programs offered by the City.
The City shall contribute to the City Manager’s Deferred Compensation
Plan account the maximum amount permitted by law (currently $8,500) and, if so
requested by the City Manager, the amounts permitted under the so-called “catch-up
provisions” as authorized under the Internal Revenue Code section 457 provisions.
After December 31, 2001, upon the expiration of the “catch-up” provisions
authorized under the Internal Revenue Code section 457 provisions, the City Manager
may elect to have that amount previously paid by the City paid to the deferred
compensation plan under Internal Revenue Code section 401(a) or similar retirement
vehicle, participate in the buy-back provisions of credit service under the PERS
retirement system or as additional compensation as he may elect.