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.)
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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.
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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.
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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
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CITY MANAGER
Scott Chadwick
1200 Carlsbad Village Drive
Carlsbad, CA 92008
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