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HomeMy WebLinkAbout2018-06-12; City Council; ; City Manager employment agreement~ CITY COUNC I L ~ Staff Report Meeting Date: To: From: Subject: June 12, 2018 Mayor and City Council Celia Brewer, City Attorney 760-434-2891 City Manager employment agreement. Recommended Action CA Review (.v'C- Adopt a Resolution approving the employment agreement of Scott Chadwick as City Manager. Executive Summary The City Council will appoint Mr. Scott Chadwick to the position of City Manager effective August 1, 2018, at which time he will be duly sworn into that position. The attached agreement sets forth the terms and conditions of the appointment. Mr. Chadwick has accepted and agreed to the established terms and conditions. Discussion Kevin Crawford will be retiring from the position of City Manager effective July 31, 2018. At a Closed Session meeting on May 31, 2018, the City Council voted to appoint Scott Chadwick to the position of City Manager effective August 1, 2018. Fiscal Analysis The fiscal impact of this action for the remainder ofthe current fiscal year will not exceed $326,081. Next Steps Scott Chadwick will be sworn in to the position of City Manager effective August 1, 2018. Environmental Evaluation (CEQA) The requested action is not a project within the definition of the California Code of Regulations, Title 14, Chapter 3, section 15378(a} since the action has no potential for resulting in either a direct change in the environment or a reasonably foreseeable indirect change in the environment. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council Resolution. June 12, 2018 Item #16 Page 1 of 7 RESOLUTION NO. 2018-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE EMPLOYMENT AGREEMENT OF SCOTT CHADWICK AS CITY MANAGER WHEREAS, at a closed session meeting on May 31, 2018, the City Council voted to appoint Scott Chadwick to the position of City Manager effective August 1, 2018; and WHEREAS, the City Council of the City of Carlsbad, California desires to approve the employment agreement of Scott Chadwick as City Manager; and WHEREAS, those functions, duties, obligations, benefits and compensation are accurately set forth in the Employment Agreement attached hereto as Attachment A. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City Manager's Employment Agreement set forth in Attachment A is approved. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of June 2018, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher. None. M. Packard. (SEAL) June 12, 2018 Item #16 Page 2 of 7 Attachment A CITY OF CARLSBAD CITY MANAGER EMPLOYMENT AGREEMENT This City Manager Employment Agreement ("Agreement") is entered into as of the date this Agreement is approved by the Council for the City of Carlsbad, by and between the City of Carlsbad, California, a municipal corporation (the "City"), and Scott Chadwick, an individual (the "City Manager"). The City and 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 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, on June 12, 2018, the Council adopted a resolution establishing an employment agreement, effective August 1, 2018, with Scott Chadwick as City Manager; and WHEREAS, it is the desire ofthe 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, it is the desire of the Parties to enter into this Agreement on the terms and conditions set forth below; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: SECTION I -DUTIES The City Council hereby agrees to the employment of Scott Chadwick 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. City Manager is subject to and shall comply with the provisions of California Government Code Title 5, Division 2, Part 1, Chapter2, Article 2.6, entitled "Abuse of Office," (California Government Code sections 53243 et seq.) SECTION 11 -TERM Effective August 1, 2018, Scott Chadwick is appointed as City Manager 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 Agreement is terminated 1 June 12, 2018 Item #16 Page 3 of 7 pursuant to Section IV below. The purpose of this paragraph is to ensure compliance with Government Code section 53260 et seq. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of City Manager to resign at any time subject only to the provisions set forth in Section IV below. City Manager agrees to remain in the exclusive employ of the City and neither to accept other employment nor to become employed by any other employer without the express written permission of the City Council; provided, nothing contained herein shall be construed or interpreted to prohibit City Manager 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 Ill -COMPENSATION A. Base Salary The annual base salary for City Manager shall be $295,581 which shall be paid bi-weekly, $11,368.50 per completed pay cycle. This includes the compensatio_n 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 City Manager. B. Deferred Compensation Beginning January 1, 2019, the City shall make an annual contribution on behalf of City Manager to a section 457 Deferred Compensation Plan in the maximum amount allowable, prorated over the number of pay periods in the calendar year. C. Retirement The City Manager will be enrolled in the miscellaneous CalPERS retirement system in accordance with the PEPRA rules (California Government Code sections 7522 et seq.) under the City's "Tier 2" which consists of a 2% at 60 years of age formula with a three (3) year final average earnings and pensionable compensation cap. The City Manager will be responsible for the Cal PERS' employee contribution. SECTION IV -SEPARATION FROM EMPLOYMENT In the event the City Council terminates this Agreement during which time City Manager is ready, willing and able to perform the functions and duties set forth herein, then, in that event, City Council agrees to continue City Manager's base salary and health benefits (i.e. health, dental and vision) for a period of twelve months or, upon mutual agreement, pay a single lump sum payment equal to one (1) year base salary. 2 June 12, 2018 Item #16 Page 4 of 7 SECTION V-VEHICLE ALLOWANCE OR PROVISION OF VEHICLE City Manager's functions and duties require him to have use of an automobile during his employment with the City. The City shall provide City Manager the monthly sum of $1000 for the expense of owning, operating and maintaining and insuring his personal automobile. City Manager shall keep and maintain in full force and effect personal 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 an 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. SECTION VI -OTHER SUPPLEMENTAL BENEFITS 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 leave accrual rates and City Manager shall be permitted to earn and accrue up to three hundred twenty (320) hours of vacation. All other actions taken by the City Council relating to fringe benefits for management employees shall be considered actions granting the same to City Manager, except that 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 Agreement, 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 Compensation Plan and elsewhere. City Manager may elect to participate in any of the medical insurance programs offered by the City. SECTION VII -ANNUAL REVIEW The City Council shall review and evaluate the performance of City Manager in January of each year. This review and evaluation of performance and salary shall be in accordance with the criteria developed jointly by the City Council and City Manager. The Mayor shall provide City Manager with a summary written statement of the findings of the City Council and provide an adequate opportunity for 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 VIII -ANNUAL GOAL SETTING Annually, the City Council and 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. They shall also establish a relative priority among these various goals and objectives and this should be reduced to writing. 3 June 12, 2018 Item #16 Page 5 of 7 SECTION IX -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 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 X-EFFECTIVE DATE The effective date of this Agreement is the date this Agreement is executed by all parties and all salary and other compensation benefits shall be paid retroactive and/or in accordance to that date. SECTION XI -NOTICES Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follow or as such address may be changed from time to time upon written notice to the other: CITY: MAYOR City of Carlsbad, City Hall 1200 Carlsbad Village Drive Carlsbad, California 92008 CITY MANAGER: SCOTT CHADWICK 1200 Carlsbad Village Drive Carlsbad, California 92008 IN WITNESS WHEREOF, the City and City Mana date written below. Dated: ~\ib Dated: _lo..__/ \-4_1 \ 'o __ MAYOR OF THE CITY OF CARLSBAD 4 June 12, 2018 Item #16 Page 6 of 7 APPROVED AS TO FORM: ASSISTANT CITY ATTORNEY 5 June 12, 2018 Item #16 Page 7 of 7