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HomeMy WebLinkAbout2016-01-12; City Council; 22192; City Council; Approval of City Manager Employment Agreement1 2 3 4 5 RESOLUTION NO. 2016-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE EMPLOYMENT AGREEMENT OF KEVIN CRAWFORD AS CITY MANAGER WHEREAS, the City Council desires to approve the employment agreement of 6 Kevin Crawford as City Manager; and 7 WHEREAS, those functions, duties, obligations benefits and compensation are 8 accurately set forth in the Employment Agreement attached hereto as Exhibit 2. 9 10 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 11 Carlsbad, California, as follows: 12 1. That the above recitations are true and correct. 13 2. That the City Manager's Employment Agreement set forth as Exhibit 2 is 14 approved. 15 3. That the Administrative Services Director is authorized to transfer up to $165,000 16 from the Council Contingency to the City Manager budget. 17 Ill 18 Ill 19 Ill 20 Ill 21 Ill 22 Ill 23 Ill 24 Ill 25 Ill 26 Ill 27 /II 28 City of Carlsbad City Manager Employment Agreement This Agreement is entered into as of the last date signed below by and between the City of Carlsbad, California, a municipal corporation (the "City"), and Kevin Crawford, an individual (hereinafter referred to as "Crawford" or "City Manager"). The City and the City Manager are sometimes individually referred to as a "Party" and collectively as "Parties." RECITALS WHEREAS, Chapter 2.12 of the Carlsbad Municipal Code provides for the Office of the City Manager who shall be appointed and retained by the City Council wholly on the basis of his management ability and experience, particularly in the municipal management field and shall hold that office for and during the pleasure of the City Council, and WHEREAS, the Council desires the employment of Kevin Crawford as City Manager, and WHEREAS, it is the desire of the parties hereto to act as a deterrent against malfeasance or dishonesty for personal gain on his part; and to provide for 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; and WHEREAS, this Agreement and the Term as further described below complies with Government Code sections 53260 et seq.; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: SECTION 1-DUTIES The City Council hereby agrees to the employment of Kevin Crawford as City Manager and to 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. The City Manager is subject to and shall comply with the provisions of California Government Code Title 5, Division 2, Part 1, Chapter 2, Article 2.6 entitled "Abuse of Office" (California Government Code sections 53243, et seq.). SECTION II-TERM Kevin Crawford is appointed as City Manager and shall continue in that capacity and shall continue to fulfill the powers, functions and duties of the City Manager and shall serve in that capacity until such time as this Agreement is terminated pursuant to Section IV below. Nothing in this Agreement shall prevent, lim it or otherwise interfere with the right of the City Manager to resign his position at any time. City Manager 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 written consent of the City Council. SECTION Ill-SALARY The annual base salary for the City Manager shall be $286,000 which shall be paid bi-weekly, $11,000.00 per completed pay cycle. This includes the compensation for the additional positions of Executive Manager of the Carlsbad Water District and/or other boards or commissions that assemble and require the services of the City Manager. 1 SECTION IV-SEPARATION FROM EMPLOYMENT A. City Manager's employment with the City is on an at-will basis. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City Council toterminate, by a majority vote of the City Council, the services of City Manager without cause, at any time, subject only to providing written notice to City Manager, and complying with sections 2.12.130 and 2.12.135 of the Municipal Code, as amended from time to time. B. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City Manager to resign at any time from his position with City, subject only to City Manager providing thirty (30) days prior written notice to the City. City Manager's resignation shall be deemed accepted when received by the Mayor, or if the Mayor is unavailable, by the Mayor ProTem. C. Notwithstanding the provision of Subsection A above, in the event City Manager is terminated for "cause," then City may immediately terminate this Agreement and City Manager shall only be entitled to his compensation and benefits accrued up to the date of his termination. As used in this Subsection C, "cause" shall mean any of the following: 1. Conviction of any felony. 2. Conviction of a misdemeanor arising directly out of the City Manager's duties as required by this Agreement or pursuant to Chapter 2.12 of the Municipal Code. 3. Conviction of any crime of moral turpitude. 4. Failure to competently perform the duties of City Manager as determined in two consecutive sets of written finding approved by a majority of the City Council and not less than three months apart. Examples of incompetent performance of duties include, but are not limited to: failure to meet statutory or contractual requirements or deadlines within the City Manager's authority; negligent hiring or supervision of employees under the direct supervision of the City Manager which may lead to civil liability; a pattern of repeated, willful, or intentional failure to carry out clear and legally constituted policy decisions of the City Council as communicated by the City Council to the City Manager. City Council will provide the City Manager with an opportunity to respond to the findings prior to the effective date of the termination. 5. Abandonment of duties. D. In the event the City Council terminates this Agreement during which time City Manager is ready, willing and able to perform the duties of City Manager, and the termination is without cause as "cause" is defined in Subsection C above, then, subject to the limitations set forth in Government Code§ 53260, and upon delivery to the City a fully executed separation agreement and release of all claims in a form acceptable to the City (acting through its City Attorney) within 30 days of his termination, then, the City agrees to pay City Manager six (6) month's base salary and health benefits (i.e. health, dental and vision) and specifically excluding all other benefits, in addition to cash-out earned vacation leave balances to which City Manager would ordinarily be entitled to on termination. Earned vacation leave does not include "Executive Leave Time." Upon mutual agreement, City may pay City Manager a single lump sum payment equal to six (6) months base salary. SECTION V-VEHICLE ALLOWANCE 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 annual sum of $12,000 (which shall be paid bi-weekly) for the expense of owning, operating and maintaining and insuring his personal automobile. City Manager shall keep and maintain in full force and effect persona !liability and property damage insurance in the minimum amounts of $250,000 per person and $500,000 per occurrence and property damage of $100,000, and shall name the City of Carlsbad as additional insured. The amounts received under this section are in addition to the base salary and shall be considered as part of the total cash compensation discussed in Section Ill above. 2 SECTION VI-OTHER SUPPLEMENTAL BENEFITS The City Manager shall accrue vacation leave and sick leave as provided for under existing City policy. City Manager shall be credited for twenty years of service credit in calculating accrual rates, and City Manager shall be permitted to earn and accrue up to and including a maximum of three hundred and twenty (320) hours of vacation. Each February, City Manager will be allowed to voluntarily convert up to one hundred sixty (160) hours of accrued vacation to cash.AII 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 will be granted 160 hours of Executive Leave Time each fiscal year and that he 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 Effective Date of this Agreement, holidays, retirement (CaiPERS), benefits and payments, health insurance, dental insurance, long-term disability insurance and life insurance as set forth in the Performance Management and Compensation Plan and elsewhere. The City Manager may elect to participate in any of the medical programs offered by the City to management employees. In the event of a medically designated disability, the City will supplement sick leave and long term disability (LTD) benefits in order to provide the City Manager 100% of salary beginningthe first day of a disability and shall not exceed one year. The City will contribute on behalf of City Manager the maximum annual amount allowable under and by the United States Tax Code for employees age 50 or older (currently $24,000}, to a section 457 plan, pro-rated over the number of pay periods in the calendar year. SECTION VII-RETIREMENT The City Manager will be enrolled in the miscellaneous CaiPERS retirement system in accordance with PEPRA rules (California Government Code sections 7522, et seq.) under a 2%@60 formula with a three ( 3) year final average earnings and pensionable compensation cap. The City Manager will be responsible for the CaiPERS employee contribution. SECTION VIII-CALPERS INDEMNIFICATION Crawford understands that accepting any employment that is not allowed by law may subject him to significant monetary penalties in the form of reimbursement to CaiPERS for all retirement allowances received during the unlawful employment, employee contributions on the post-retirement earnings, and administrative penalties. Crawford, as a retired annuitant reinstating from a CaiPERS retirement, accepts any and all risks as it relates to actions taken by CaiPERS with regard to his appointment as the City Manager (miscellaneous membership classification). The City of Carlsbad has made no promises, guarantees, representations, or warranties, expressed or implied, with regard to Crawford's decision to seek permanent appointment with the City of Carlsbad as its City Manager. Crawford agrees to indemnify, defend, and hold harmless the City and its officers, officials, employees and agents from any and all claims, demands, causes of action, damages, losses, and expenses, including reasonable attorneys' fees arising out arising out of actions taken by CaiPERS with regard to Crawford's appointment to the position of City Manager for the City of Carlsbad as a retired annuitant. 3 SECTION IX-ANNUAL REVIEW The City Council shall review and evaluate the performance of the City Manager in January of each year. The City Council reserves the right to review and evaluate the performance of the City Manager on reasonable notice to the City Manager. This review and evaluation of performance and salary shall be in accordance with the criteria developed jointly by the City Council and the City Manager. Upon request, the Mayor shall provide the City Manager with a summary written statement of the findings of the City Council and provide an adequate opportunity for the City Manager to discuss his evaluation with the City Council. The Mayor shall report out and authorize the Human Resources Director to make changes to the salary or other agreed benefits to this or subsequent employment contracts in accordance with all applicable laws. SECTION X-ANNUAL GOAL SETTING Annually, the City Council and the City Manager shall define such goals and performance objectives which they determine necessary for the proper operation of the City and an attainment of the City Council's policy objectives. This shall also establish a relative priority among these various goals and objectives and this shall be reduced to writing. SECTION XI-PROFESSIONAL AND ORGANIZATIONAL DEVELOPMENT All normal business expenses, such as attendance at the League of California Cities,ICMA, or other association or industry 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. 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's organizational development efforts, including but not limited to, employee development, department development, and organization-wide development. These efforts shall support the City Council Vision and Goals and provide for the ongoing development of a high-performing organization. SECTION XII-EFFECTIVE DATE The effective date of this Agreement is to be mutually agreed upon, but no later than February 15, 2016; and all salary and other compensation benefits shall be paid retroactive and/or in accordance to the first day that the City Manager reports for duty. The actual report for duty shall be the effective date of this Agreement. SECTION XIII-NOTICES Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows or as such address may be changed from time to time upon written notice to the other: CITY Mayor City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 4 CITY MANAGER Kevin Crawford Carlsbad, CA 92009