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HomeMy WebLinkAbout2021-12-14; City Council; ; Employment Agreement with City Manager Scott ChadwickMeeting Date: Dec. 14, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Cindie K. McMahon, Assistant City Attorney 760-434-2891 Subject: Employment Agreement with City Manager Scott Chadwick District: All Recommended Action Adopt a resolution approving the Amended and Restated City Manager Employment Agreement with Scott Chadwick, with an annual fiscal impact of $22,755, and making corresponding amendments to the Appointed Officials Salary Range Schedule Executive Summary/Discussion On June 12, 2018, the City Council approved an employment agreement with the City Manager, effective August 1, 2018. The employment agreement was amended and restated in July 2019, when the City Council increased the City Manager’s annual base salary from $295,581 to $306,813. The City Manager did not receive a compensation increase in 2020. On Nov. 16, 2021, the City Council held a closed session meeting to discuss the performance of the City Manager and instructed its negotiator, Mayor Pro Tem Blackburn, as to the City Council’s proposed salary adjustment for the City Manager. On Dec. 7, 2021, the City Council held a second closed session and authorized an increase in the City Manager’s annual base salary as follows: The City Manager will receive a 3.25% salary increase in recognition of not receiving an increase in 2020 and taking into account a combined 6% for increased cost of living. The City Manager will also receive a 3.25% salary increase for 2021. The increases, totaling 6.5%, will be effective as of July 1, 2021. Mayor Pro Tem Blackburn relayed this information to the City Manager. The City Manager agreed to the new compensation terms, which will increase the City Manager’s annual base salary from $306,813 to $326,756, effective July 1, 2021. The increase is reflected in the Amended and restated city manager employment agreement included as Attachment A to Exhibit 1. Dec. 14, 2021 Item #9 Page 1 of 9 Options The City Council may either approve the resolution and authorize the execution of the amended and restated employment agreement with the City Manager or schedule a Closed Session meeting to discuss other terms of employment for the City Manager. Fiscal Analysis The annual cost of the salary increase, including associated retirement benefits, is $22,755. The fiscal year 2021-22 impact is $22,755 and will be funded by the existing General Fund budget. Next Steps Staff will obtain the necessary signatures to finalize the amended and restated agreement and will update the Appointed Officials Salary Range Schedule to reflect the compensation change. Environmental Evaluation The recommended action does not constitute a “project” within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Public Notification and Outreach Public notice of this item was posted in keeping with the state's Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution Dec. 14, 2021 Item #9 Page 2 of 9 RESOLUTION NO. 2021-284 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE AMENDED AND RESTATED CITY MANAGER EMPLOYMENT AGREEMENT WITH SCOTT CHADWICK, WITH AN ANNUAL FISCAL IMPACT OF $22,755, AND MAKING CORRESPONDING AMENDMENTS TO THE APPOINTED OFFICIALS SALARY SCHEDULE EXHIBIT 1 WHEREAS, the City Council of the City of Carlsbad, California, desires to approve the Amended and Restated City Manager Employment Agreement with Scott Chadwick; and WHEREAS, the Amended and Restated City Manager Employment Agreement increases the City Manager's annual base salary from $306,813 to $326,756 per year, as further set forth in Attachmen: A;and WHEREAS, the City Council desires to amend the Appointed Officials Salary Range Schedule tc indicate the City Manager's new maximum monthly salary. 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 Amended and Restated City Manager Employment Agreement with Scott Chadwick in Attachment A is approved. 3. That the Mayor of the City of Carlsbad is authorized to execute the Amended and Restated City Manager Employment Agreement with Scott Chadwick on behalf of the City of Carlsbad. 4. That, effective July 1, 2021, the Appointed Officials Salary Range Schedule is amended to indicate the maximum monthly salary for the City Manager is $27,229.67. 5. That the fiscal year 2021-22 impact of $22,755 will be funded by the existing General Fund budget. Dec. 14, 2021 Item #9 Page 3 of 9 CITY OF CARLSBAD AMENDED AND RESTATED CITY MANAGER EMPLOYMENT AGREEMENT Attachment A This Amended and Restated City Manager Employment Agreement ("Agreement") is entered into as of the date this Agreement is approved by the City 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 City Council adopted Resolution 2018-101 establishing an employment agreement with Scott Chadwick as City Manager, effective August 1, 2018; ·and WHEREAS, on July 9, 2019, the City Council conducted a performance review of Scott Chadwick and authorized changes to his employment agreement; and WHEREAS, on September 10, 2019, the City Council adopted Resolution No. 2019-167 that amended and restated the employment agreement by authorizing an increase in salary; 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, it is the desire of the Parties to enter into this Agreement on the terms and conditions set forth below. 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, Chapter 2, Article 2.6, entitled "Abuse of Office," (California Government Code sections 53243 et seq.) Dec.14,2021 Item #9 Page 5 of 9 Dec. 14, 2021 Item #9 Page 5 of 9 SECTION II -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 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 Effective as of July 1, 2021, the annual base salary for City Manager shall be $326,756, which shall be paid bi-weekly, $12,567.56 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 City Manager. B Deferred Compensation Effective August 1, 2018, the City shall make contributions on behalf of the City Manager to a section 457 Deferred Compensation Plan in the maximum amount allowable, taking into account all prior contributions made by or on behalf of the City Manager since January 1, 2018. Contributions shall be prorated over the remaining number of pay periods in the 2018 calendar year. 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 Cal PERS 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. -2- Dec.14,2021 Item #9 Page 6 of 9 Dec. 14, 2021 Item #9 Page 6 of 9 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. 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 (Cal 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 July 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. - 3 - Dec.14,2021 Item #9 Page 7 of 9 Dec. 14, 2021 Item #9 Page 7 of 9 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. 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. All salary and other compensation benefits shall be paid retroactive to July 1, 2021. 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 City of Carlsbad Mayor City Hall 1200 Carlsbad Village Drive Carlsbad, CA 92008 Dec.14,2021 -4- CITY MANAGER Scott Chadwick 1200 Carlsbad Village Drive Carlsbad, CA 92008 Item #9 Page 8 of 9 Dec. 14, 2021 Item #9 Page 8 of 9