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HomeMy WebLinkAbout04 - City Manager Employment AgreementMarch 26, 2002 Agenda Item No. 4 CITY OF NEWPORT BEACH Office of the City Council TO: Mayor & Members of the City Council FROM: Dennis D. O'Neil, Chair '. Council Ad Hoc Compensation Committee z A` RE: City Manager Employment Agreement Proposed Modification to Compensation DATE: March 26, 2002 The City Council recently completed an evaluation of the performance of the City Manager during the past year. The City Council concluded that the City Manager deserves additional compensation because he has accomplished substantially all of the goals established at the prior evaluation, has performed his duties in as exemplary manner and his current compensation is below that of his peers and other City employees. The City Manager has played a significant role in the annexation of Newport Coast, obtaining unanimous Board support for an extension of the JWA Settlement Agreement, adopting a new Personnel Manual and completing a "class and comp" study for key and management employees. The total compensation currently paid to the City Manager ranks 16th out of the 17 Orange County cities surveyed by the Committee. The City Manager is currently paid less than the Chief of Police and the City Attorney. In light of the evaluation of the City Manager and his compensation compared to his peers, the City Council Ad Hoc Compensation Committee has asked. me to recommend the following modifications to the City Manager's employment contract: 1. Establish as annual base salary of $170,000.00 effective December 1, 2001; 2. Eliminate the existing car allowance; 3. Increase, from $500.00 to $1000.00, the maximum amount of reimbursement for the cost of an annual physical examination. The City Attorney has suggested minor modifications to the contract and these modifications and the adjustments to compensation described above are shown in the redlined version of the "Second Amended Agreement that is Exhibit A to the resolution that accompanies this Memo. xe, -,D� - Dennis D. O'Neil Chair, Ad Hoc Council Compensation Committee RESOLUTION NO. 2002- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADJUSTING THE COMPENSATION PAID TO THE CITY MANAGER WHEREAS, the City Council has evaluated the performance of the City Manager during the preceding (12) months; WHEREAS, an adjustment to the base salary and minor modifications to other provisions of the current employment agreement are appropriate given the excellent performance of the City Manager and the compensation paid to other management employees; and WHEREAS, the proposed modifications to compensation and benefits are reflected in the Second Amended Employment Agreement that is attached to this Resolution as Exhibit A. NOW, THEREFORE, BE IT RESOLVED by the City of Council of the City of Newport Beach that the salary and benefits of the City Manager shall be as specified in Exhibit A and that the Mayor is authorized to execute Exhibit A on behalf of the City Council. ADOPTED, this 26th day of March 2002. ATTEST: LaVonne Harkless, City Clerk Tod Ridgeway Mayor of the City of Newport Beach -1- SECOND AMENDED EMPLOYMENT AGREEMENT This Second Amended Employment Agreement (Second Amended Agreement), which is effective as of the 26" 2r-day of March€ebfuary, 20028, between the City of Newport Beach ( "City ") and Homer Bludau ( "BLUDAU ") is made in light of the following: RECITALS A. City and BLUDAU entered into an agreement on March 8, 1999 pursuant to which City employed BLUDAU as the City Manager of the City of Newport Beach (Original Agreement); B. The Original Agreement was amended on February 28, 2000 (First Amended Agreement) and both the Original Agreement and the First Amended Agreement required periodic evaluation of BLUDAU'S performance as City Manager to determine if his "base salary or benefits should be modified." C. The Newport Beach City Council has conducted an evaluation of BLUDAU'S performance over the past twelve months and has determined that his performance warrants an increase in salary and modification of other benefits as specified in this Second Amended Agreement. Now, Therefore, the Parties agree as follows: SECTION 1. Employment as City Manager. City shall continue to employ BLUDAU as City Manager of the City of Newport Beach to perform the functions and duties of that position as specified in the City Charter and Municipal Code of the City of Newport Beach. BLUDAU shall also perform other duties assigned by the City Council, without additional compensation, so long as those duties are related to matters of concern to the City of Newport Beach or cities generally and are performed by management employees of other municipalities. SECTION 2. Effective Date/Term. This Second Amended Agreement shall remain in effect until amended by the Parties or terminated pursuant to Section 4. SECTION 3. Base Compensation. City shall pay BLUDAU an annual base salary of $17045,0600.00, effective December 1, 2001, in twenty -six (26) equal installments paid at the same time other management employees of the City are paid. The annual hare salary of BLUPAW shall he establis-had- by the City :. This Second Amended Agreement shall be deemed modified to be consistent with any subsequent resolution adopted by the City Council changing the base salary of the City Manager or the manner (but not the amount) in EAHIBIT A which management employees are paid. City shall have the right to deduct or withhold from BLUDAU's base salary any and all sums required for federal or state income tax, social security tax and all other taxes, deductions or withholdings required by then current state, federal or local law. City shall also deduct sums BLUDAU is obligated to pay because of BLUDAU'S participation in plans or programs generally described in Section 5 of this Second Amended Agreement. SECTION 4. Termination and Severance Pay. A. BLUDAU may terminate this Second Amended Agreement by giving the City at least forty -five (45) days prior written notice of termination. B. City may terminate this Second Amended AgreementBLAJDAU, without cause, upon the affirmative votes of a majority of the members of the City Council at any regular or special meeting of the City Council. However, consistent with provisions of the City Charter, this Second Amended Agreement 131 1 ON I may not be terminated within ninety (90) days after any municipal election for the selection or recall of one or more members of the City Council. BLUDAU shall be furnished with written notice stating the Council's intention to terminate this Second Amended Agreement, and any reasons for termination, if deemed appropriated the City Council, at least forty -five (45) days prior to the effective date of termination. C. In the event this Second Amended Agreement is terminated by the City, BLUDAU shall, as of the effective date of termination, receive severance pay equal to one -half (1/2) of his then current annual base salarya&-oPhe However, BLUDAU shall not be entitled to any severance pay if this Second Amended Agreement BLkiDAU is terminated because of BLUDAU'S criminal conduct, malfeasance in office, or a -gross abuse of discretion. SECTION S. Employee Benefits. A. BLUDAU shall accumulate flexpaid leave at the rate of twenty -six (26) days per year, commencing on the effective date of this Second Amended Agreement. BLUDAU shall also be entitled to eighty hours of administrative leave per year. BLUDAU shall not be entitled to any compensation, or compensatory time off, for overtime. BLUDAU shall not be entitled to flex leave spill -over pay and shall not be subject to any flex leave accrual threshold. B. BLUDAU shall be entitled to the same health insurance and retirement benefits on the same terms and conditions as are available to other non - safety management employees of the City. mgremp.agt 2 C. BLUDAU shall be entitled to participate in plans and programs available to other non - safety management employees of the City such as short term and long -term disability plans, life insurance plans, and deferred compensation plans. In addition, BLUDAU shall be entitled to continued participation in the International City Management Associations 457 Deferred Compensation Plan (ICMA Plan). BLUDAU'S participation in the ICMA Plan shall be at BLUDAU'S discretion, at no cost to the City, and any BLUDAU contributions to the ICMA Plan will be at his sole cost without any City contribution. D. BLUDAU shall undergo an annual physical examination. City shall reimburse BLUDAU for the actual costs of the annual physical examination up to a maximum of $10 ,500.00. E. The then current City personnel ordinances, resolutions, rules and policies shall apply to BLUDAU in the same manner as applied to other management employees, provided, however, in the event of a conflict between the provisions of this Second Amended Agreement and the City Charter, the City Charter shall prevail. FG. This Second Amended Agreement shall be deemed modified whenever the City Council adopts a resolution or takes action changing the benefits, plans or other terms and conditions of employment generally applicable to other non - safety management employees of the City. SECTION 6. Business Expenses. City shall reimburse BLUDAU for all reasonable business expenses (except automobile expenses) actually incurred by BLUDAU in the performance of services pursuant to this Second Amended Agreement. BLUDAU shall, to the extent possible, use a credit card issued in the name of the City of Newport Beach to pay for business expenses. SECTION 7. Meetings and Conferences. BLUDAU shall, at City expense, be entitled to attend a reasonable number of local, state and national conferences relevant to the performance of duties required of a City Manager and pursuant to the City Charter, the Newport Beach Municipal Code and this Second Amended Agreement. SECTION 8. Housing. mgremp.agt 3 As required by the City Charter and the Original Agreement, BLUDAU has established residency in, and become an elector of, the City of Newport Beach. To facilitate BLUDAU'S purchase of housing in Newport Beach, City has W44--loaned BLUDAU the sum of $50,000 (Loan). The Loan has been, and shall be, used solely to purchase housing in Newport Beach. BLUDAU shall pay simple interest on the unpaid balance of the Loan during each fiscal year (or portion) in which the Loan, or any portion of the Loan, remains unpaid. The interest payment for all or a portion of any fiscal year shall be due on or before September 15th of the following fiscal year. The interest rate on the Loan for each fiscal year shall be the average rate of return on all City investments during that fiscal year. BLUDAU may, but is not required to, make payments to reduce the principal amount of the Loan at any time and payments to reduce the principal shall not be subject to any pre - payment penalty. BLUDAU shall pay the entire unpaid balance of the Loan upon the expiration of ten (10) years from the effective date of this Second Amended Agreement or BLUDAU'S separation from City employment In the event all or any portion of the loan remains unpaid at the time of BLUDAU'S separation, City shall have the right to withhold, from value of anv accumulated paid leave for which BLUDAU would otherwise be paid upon separation a sum equal to the amount of the reduse44;e -then current unpaid balance_ SECTION 9. Evaluation. The City Council shall conduct regular evaluations of BLUDAU's performance during the term of this Second Amended Agreement. The City Council may, as part of the evaluation, discuss if BLUDAU's performance warrant any modification of his base salary and /or benefits. However, any decision to modify BLUDAU'S base salary or benefits shall be made by the City Council only at a duly noticed public meeting held in compliance with the Ralph M. Brown Act. SECTION 10. General Provisions. A. BLUDAU shall serve at the pleasure of the City Council as specified in the Newport Beach City Charter and may be terminated "at will" and without specification of cause, subject only to the procedural requirements specified in this Second Amended Agreement and /or relevant provisions of the City Charter or City ordinance. B. This Second Amended Agreement shall be binding on, and inure to the benefit of, the heirs, executors, and assigns of BLUDAU. C. Any notice required by this Second Amended Agreement shall be in writing and deemed given when personally delivered (to the City Clerk in the case mgremp. agt 9 of the City), or when properly addressed and deposited in the United States mail, registered or certified, with postage prepaid and return receipt requested. D. This Second Amended Agreement represents the entire understanding of the Parties and any modification is effective only if it is in writing and signed by the Party to be charged. Dated: Tod Ridgewayde4R -Neyes Mayor of Newport Beach Homer Bludau APPROVED AS TO FORM: Robert H. Burnham, CITY ATTORNEY F:\ cat\ sharedW g \CityManager\031987-029final.doc .gremp.agt L 41 '. im fildreth 32D The Grand canal Newport Bench, UA 92662 26 Ma rb 2002 le: City Counn! ogenda Iten K Newpont Beqch City Vou"m 3300 NEWPOrt Flvd. Newport Beach, CA 92663 fear City Council Momber2 in tne "First Amended AQE-Ment' for they City Slam Icr, W. Bludaw. his -ntm;y increased three percent (0). Whin this w3s be lag canniderer, j sak he wiEi wa asset to the cummuniV. Now he is beinq crinmidpvnd for i "Second W-Wor Wepr,oV ­iLh -Kch Non will incrEsse him vnnum!hNAV "Wary sevnritent IWIVSH —(171 , !von $10,600.00 to $170,000.0u, Allow ME to otp four W of -he ac, ompn,nm:-nts 1 took Mr, fludmH has pur- fc-med duriny his h =set tnn"rc as a auhlir olticinl and how muuh nf ai assit ha has FP come to others of -hc _Or throug a t A r so 71C 2OMP I WF MPH W. First, he nas to the Ha0cr Environmental Div:sion. formerly laol W lh,, Wn are' Mnyine DepartmenL. indur his Ora. wh-rh he; henn a io n W We C. Mr, Tima,hu OWL (As -on MCI Out Vvisic- is in.w aWkid Lh;- Harbor Resources nivulon !HdOr Lhe YnN W,A-eis Cffice.) Second, ha hav cridoWd Th% 4, Me!"" n"W Mi. Req KnAnd. 1" nv pinwn. iris WBOUKOU to them no ho- -Av ca" levelt; n hhold l queQuj Wompnig wnems to navzi Lillie. thFT to mmial 0 thv i r Amp In YF -K Thlys, hx inn accrited the qipsticrab;n sna ; dordivn"rK 4tnra7pinty maku We Mr. MrIm. a d Mr. Armrinc an hells; :olaij' ann of let._ :in -. Scurth, oK 2 F-bruAr, 200 . 1, B "dao W ea W! inuiraire riverine ,or ni.- Use 0- The &W-insLaijud WNjor dic not -14 Wilhin Liu Litn'S insuranci. no:k-, :his cirativ no&Ale= huw inch 4e ,.tires about the City's finnnicin! intnuesus. i ix�c oWd. ihHl Mr. Blue,u Ws W to ridirote or suc-is PF in pu)!,c - v7z wa= the members of So CiP Council. However, 1 Voinic j 10 i : endursc the proposed iacreawe of $500.00 Qntatko SI V00.0) towurds ky nunnNI physicai Exam. APter a 1 1 . Mr. Epv in Murphy, rot Mot GY v Manager, res i gined becauEp he devejaped a qenhh- rinscizw�u anini P anon hem K ec 1 have Yen told. r CITY OF NEWPORT BEACH March 16, 2002 Mr. Jim Hildreth 120 The Grand Canal Newport Beach, CA 92662 Mr. Hildreth: This letter represents the City's response to your letter to Mr. Tony Melum of February 26, 2002. It remains the City's position that we have provided you with all records you have requested which are available to us. Sincerely, L lvm DAVID A. KIFF u� Assistant City Manager cc: Mayor and City Council Homer Bludau, City Manager Tonv Melum, Director of Harbor RPSnvrrPc CITY MANAGER CITY HALL 3300 Newport Boulevard P.O. Box 1768 Newport Beach, California 92658 -8915 SERVICE REQUESTED Mr. Jim Hildreth 120 The Grand Canal Newport Beach, CA 92662 6747618 - --