HomeMy WebLinkAbout2014-03-11; City Council; 21524; Approval City Manager Employment AgreementCITY OF CARLSBAD - AGENDA BILL
AB# 21.524 APPROVAL OF CITY MANAGER DEPT.DIRECTOR JA\
MTG. 03/11/14 EMPLOYMENT AGREEMENT CITY ATTY.
DEPT. City Clerk CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 7ni4-Q4Q approving the City Manager Employment Agreement.
ITEM EXPLANATION:
The City Council will appoint Mr. Steven R. Sarkozy to the position of City Manager effective April 14,
2014 at which time he will be duly sworn into that position. The attached agreement sets forth the
terms and conditions ofthe appointment. Mr. Sarkozy has accepted and agreed to the established terms
and conditions.
FISCAL IMPACT:
The fiscal impact of this action for the remainder ofthe current fiscal year will not exceed $120,000. The
Administrative Services Director is authorized to transfer this amount from the Council Contingency to
the City Manager budget.
ENVIRONMENTAL IMPACT:
The requested action is not a "project" within the definition of 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.
EXHIBITS:
1. Resolution No. 2014-040 approving the City Manager Employment Agreement
2. City Manager Employment Agreement
DEPARTMENT CONTACT: Shelley Collins, Assistant City Clerk 760-434-2917 shelley.collins@carlsbadca.gov
FOR CLERK USE.
)^ COUNCIL ACTION: APPROVED )^ CONTINUED TO DATE SPECIFIC •
DENIED )^ CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
15
16
17
18
19
1 RESOLUTION NO. 2014-040
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
^ CALIFORNIA,
4
WHEREAS, the City Council desires to approve the employment agreement of Steven R.
5
Sarkozy as City Manager, and
6
y WHEREAS, those functions, duties, obligations, benefits and compensation are
8 accurately set forth in the Employment Agreement attached hereto as Exhibit 2.
^ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
10
11
12
13 2. That the City Manager's Employment Agreement set forth as Exhibit 2 is
14 approved.
3. That the Administrative Services Director is authorized to transfer up to
$120,000 from the Council Contingency to the City Manager budget.
California, as follows that:
1. The above recitations are true and correct.
//
//
20 //
21 //
22
23
24
25
26 //
//
//
//
27 //
28
Z
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 11*^ day of March, 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood and Blackburn.
None.
ABSENT: None.
^J,ii.iP
MATT HALL, Mayor
ATTEST:
SHELLEY COLLIIfS, Assistant City Clerk
(SEAL)
^ CTy-'itnttT'T^'.
cityof Carlsbad
City Manager Employment Agreement
This Agreement Is entered into as ofthe last date signed below by and between the city of Carlsbad,
California, a municipal corporation (the "City"), and Steven R. Sarkozy, an Individual (the "City
Manager"), The Oty and the City Manager are sometimes Individually referred to as a "Party" and
collectively as "Parties."
RECITALS
WHEREAS, Chapter 2.12 ofthe Carlsbad Municipal Code provides forthe Office ofthe 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 ofthe City Council, and
WHEREAS, the Council desires the employment of Steven R. Sarkozy 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, 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 I - DUTIES
The City Council hereby agrees to the employment of Steven R. Sarkozy as City Manager and to exercise
the powers, duties and responsibilities setforth in Cartsbad 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
Steven R. Sarkozy 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 capadty until such
time as this Agreement is terminated pursuant to Section IV below. Nothing In this ^reement shall
prevent, limit or otherwise interfere with the right ofthe City Manager to resign his position at any time,
aty Manager agrees to remain in the exdusive employ of the Oty and neither to accept other
employment or to become employed by any other employer without the express permission ofthe City
Coundl; 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 III-SALARY
The annual base salary for the City Manager shall be $260,000 which shall be paid bi-weekly, $10,000
per completed pay cycle. This Includes the compensation for the additional positions of Executive
Manager ofthe Carlsbad Water District and/or other boards or commissions that assemble and require
the services ofthe City Manager.
SECTION IV-SEPARATION FROM EMPLOYMENT
In the event the City Coundl 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 Coundl agrees to
continue City Manager base salary and health benefits (I.e. health, dental and vision) for a period of
twelve (12) months or, upon mutual agreement, pay a single lump sum payment equal to one (1) year
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 $9,600 (which
shall be paid bi-weekly) forthe 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 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
The aty 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. All other actions taken by the City Coundl
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
(CalPERS), benefits and payments, health insurance, dental insurance, long-term disability insurance and
life Insurance as set for in the Performance Management and Compensation Plan and elsewhere.
5
The City Manager may elect to partidpate in any of the medical programs offered by the aty. The aty
agrees to provide a benefit credit equal to the premium of the highest cost medical, dental and vision
plans available at the family coverage level plus the value ofthe maximum calendar year medical co-pay
established for the medical plans offered by the City.
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 beginning the first day of a
disability and shall not exceed one year.
The aty will contribute on behalf of aty Manager the maximum annual amount allowable under and by
the United States Tax Code for employees age 50 or older (currently $23,000), to a section 457 plan,
pro-rated over the number of pay periods in the calendar year.
The aty will contribute on behalf of Oty Manager $27,000 per year to a 401-a deftned contribution plan,
pro-rated over the number of pay periods in the calendar year, and contributions will be retroactive to
the Effective Date of this Agreement. The City Manager will be subject to plan requirements approved
by the Oty Coundl. The proposed vesting schedule Is 100% after completing the first year of
employment.
SEaiON Vll - RETIREMENT
The City Manager will be enrolled In the CalPERS retirement system in accordance with PEPRA rules
(California Government Code sections 7522, et seq.) under a 2%@62 formula with 3 year final average
earnings and pensionable compensation cap. The City Manager will be responsible for the CalPERS
employee contribution.
SECTION Vlll - RELOCATION
The aty Coundl shall provide Oty Manager with a temporary housing allowance for temporary housing
located within the Oty, in the amount of $3,900 per month, commendng on the Effective Date, for a
period of 12 months. If the aty Manager locates and purchases a residence prior to the expiration of 12
months, any remaining temporary housing payments up to the 12 months may be applied to relocation
expenses that exceed the amount provided in the following paragraph. All applicable IRS regulations
will apply.
City Coundl shall pay up to $25,000 for the relocation costs associated with moving from Bellevue,
Washington including packing and moving expenses, house search expenses, round trip alri^ares
between Bellevue, WA to San Diego County and expenses resulting from the sale of the City Manager's
current residence, and other reasonable and standard moving expenses for the City Manager, spouse
and children, aty Manager will submit invoices to aty for reimbursement. City Manager will be
required to reimburse the dty for half of these relocation expenses if he leaves employment within two
years of City of Carlsbad service.
SECTION IX - ANNUAL REVIEW
The City Coundl shall review and evaluate the performance of the 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 Coundl and the City Manager. The Mayor shall provide the City Manager with a
summary written statement ofthe findings ofthe City Coundl and provide an adequate opportunity for
the City Manager to discuss his evaluation with the City Coundl. 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 Coundl 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, pr other
assodation or Industry assodation meetings and conferences as weil as business lunches, dinners, etc.,
will be provided for separately in the operating budget ofthe City Manager's office. The aty Coundl
continues to support and encourage continuing development and professionalism ofthe City
organization and its employees. As such, the City Coundl 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 Oty Coundl Vision and Goals and
provide for the ongoing development of a high-performing organization.
XII - EFFECTIVE DATE
The effective date (Effective Date) of this Agreement shall commence on the first day that the City
Manager reports for duty and all salary and other compensation benefits shall be paid retroactive
and/or in accordance to that date. It Is currently contemplated that the City Manager will report for duty
on April 14,2014, unless the Parties mutually agree to a different start date.
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: CITY MANAGER
MAYOR Steven R. Sarkozy
City of Carlsbad
City Hall
1200 Carlsbad Village Drive
Carlsbad, California 92008
1
XIV-MISCELLANOUS
(a) This /^reement may be executed in counterparts and each executed counterpart shall
be construed to be an original.
(b) If any part of any provision of this Agreement or any other agreement, document or
writing given pursuant to or in connection with this Agreement shall be declared to be invalid or
unenforceable under applicable law by a court of competent jurisdiction, said part shall be ineffective to
the extent of such Invalidity only, and the remaining terms and conditions shall be interpreted In such a
manner so as to give the greatest possible effect ofthe original Intent and purpose ofthe Agreement.
(c) This Agreement constitutes the entire agreement and understanding of the parties
and supersedes all offers, negotiations and other agreements. There are no representations or
understandings not set forth herein. Any amendment to this Agreement must be in writing and executed
by both parties.
(d) The Parties agree that they are aware that they have the right to be advised by
counsel with respect to the negotiations, terms and conditions of this Agreement, and the dedsion of
whether or not to seek advice of counsel with respect to this Agreement is a dedsion which is the sole
responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by
reason ofthe extent to which each Party participated In the drafting of the Agreement.
IN wrrNESS WHEREOF, the City and the City Manager have signed this Agreement on the day
and year written below.
"City" "City Manager"
crrv OF CARLSBAD Steven R. Sarkozy
A Municipal Corporation
By:
MATT HALL STEVEN R>SARKOZY
Mayor
STEVEN RNSARKOZY*"^ I ^
Date: Date: ^
ATTEST:
By:
BARBARA ENGLESON, City Clerk
APPROVED AS TO FORM:
By:
CELIA A. BREWER, City Attorney
Cityof Carlsbaci
Gty Manager Employment Agreement
This /^reement is entered into as of the last date signed below by and between the city of Carlsbad,
California, a municipal corporation (the "City"), and Steven R. Sarkozy, an Individual (the "City
Manager"). The O'ty and the City Manager are sometimes individually referred to as a "Party" and
collectively as "Parties."
RECITALS
WHEREAS, Chapter 2.12 ofthe Carlsbad Municipal Code provides for the Office ofthe 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 ofthe City Council, and
WHEREAS, the Council desires the employment of Steven R. Sarkozy 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, this Agreement and the Term as further described below complies with Government
Code sections 53260 et seq.; and
NOW, THEREFORE, in consideration ofthe mutual covenants herein contained, the parties agree
as follows:
SEaiON I-DUTIES
The City Council hereby agrees to the employment of Steven R. Sarkozy as City Manager and to exercise
the powers, duties and responsibilities setforth 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
Steven R. Sarkozy is appointed as City Manager and shall continue in that capacity and shall continue to
fulfill the powers, functions and duties ofthe 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, limit or otherwise interfere with the right of tbe Oty 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 permission ofthe 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 III-SALARY
The annual base salary for the City Manager shall be $260,000 which shall be paid bi-weekly, $10,000
per completed pay cycle. This includes the compensation for the additionai positions of Executive
Manager ofthe Carlsbad Water District and/or other boards or commissions that assemble and require
the services of the City Manager.
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 Councii agrees to
continue City Manager base salary and health benefits (i.e. health, dental and vision) for a period of
twelve (12) months or, upon mutual agreement, pay a single lump sum payment equal to one (1) year
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 $9,600 (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 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 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 III above.
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. 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 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 y^reement. 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
(CalPERS), benefits and payments, health insurance, dental insurance, long-term disability Insurance and
life insurance as set for in the Performance Management and Compensation Plan and elsewhere.
The City Manager may elect to participate in any of the medical pr<^rams offered by the City. The City
agrees to provide a benefit credit equal tothe premium ofthe highest cost medical, dental and vision
plans available at the family coverage level plus the value ofthe maximum calendar year medical co-pay
established for the medical plans offered by the City.
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 beginning the 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 $23,000), to a section 457 plan,
pro-rated over the number of pay periods in the calendar year.
The City will contribute on behalf of City Manager $27,(KX) per year to a 401-a defined contribution plan,
pro-rated over the number of pay periods in the calendar year, and contributions will be retroactive to
the Effective Date of this Agreement. The City Manager will be subject to plan requirements approved
by the City Council. The proposed vesting schedule is 100% after completing the first year of
employment.
SECTION Vll - RETIREMENT
The City Manager will be enrolled in the CalPERS retirement system in accordance with PEPRA rules
(California Government Code sections 7522, et seq.) under a 2%@62 formula with 3 year final average
earnings and pensionable compensation cap. The Oty Manager witl be responsible for the CalPERS
employee contribution.
SECTION Vlll - RELOCATION
The City Council shall provide City Manager with a temporary housing allowance for temporary housing
located within the City, in the amount of $3,900 per month, commencing on the Effective Date, for a
period of 12 months. If the City Manager locates and purchases a residence prior to the expiration of 12
months, any remaining temporary housing payments up to the 12 months may be applied to relocation
expenses that exceed the amount provided in the following paragraph. All applicable IRS regulations
will apply.
City Council shall pay up to $25,000 for the relocation costs associated with moving from Bellevue,
Washington including packing and moving expenses, house search expenses, round trip airfares
between Bellevue, WA to San Diego County and expenses resulting from the sale ofthe City Manager's
current residence, and other reasonable and standard moving expenses for the Oty Manager, spouse
and children. City Manager wili submit invoices to City for reimbursement. City Manager will be
required to reimburse the city for half of these relocation expenses if he leaves employment within two
years of City of Carlsbad service.
SECTION IX - ANNUAL REVIEW
Jhe City Council shall review and evaluate the performance of the 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 the City Manager. The Mayor shall provide the City Manager with a
summary written statement of the findings ofthe 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 ofthe 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.
XII - EFFECTIVE DATE
The effective date (Effective Date) of this Agreement shall commence on the first day that the City
Manager reports for duty and ail salary and other compensation benefits shall be paid retroactive
and/or in accordance to that date. It is currently contemplated that the City Manager will report for duty
on April 14,2014, unless the Parties mutually agree to a different start date.
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: CITY MANAGER
MAYOR Steven R. Sarkozy
City of Carlsbad
City Hall
1200 Carlsbad Village Drive
Carlsbad, California 92008
XIV-MISCELLANOUS
(a) This Agreement may be executed in counterparts and each executed counterpart shall
be construed to be an original.
(b) If any part of any provision of this Agreement or any other agreement, document or
writing given pursuant to or in connection with this Agreement shall be declared to be invalid or
unenforceable under applicable law by a court of competent jurisdiction, said part shall be Ineffective to
the extent of such invalidity only, and the remaining terms and conditions shall be interpreted in such a
manner so as to give the greatest possible effect of the original intent and purpose of the Agreement.
(c) This Agreement constitutes the entire agreement and understanding of the parties
and supersedes all offers, negotiations and other agreements. There are no representations or
understandings not set forth herein. Any amendment to this Agreement must be in writing and executed
by both parties.
(d) The Parties agree that they are aware that they have the right to be advised by
counsel with respect to the negotiations, terms and conditions of this Agreement, and the dedsion of
whether or not to seek advice of counsel with respect to this Agreement is a decision which is the sole
responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by
reason ofthe extent to which each Party participated in the drafting ofthe Agreement.
IN WITNESS WHEREOF, the City and the City Manager have signed this Agreement on the day
and year written below.
"City"
CITYOFCARLSBAD
A Municipal Corporation
MATTHALL
Mayor
Date:
"City Manager"
Steven R. Sarkozy
STEVEN R> SARKOZYI
Date:
ATTEST:
By:
BARBARA ENGI^ON, City Clerk \) ^s^^V^SS^? o "-v
APPROVED AS TO FORM: TQZ
CELIAA. BREWER, City Attorney ^''"'^ifun^^^''^