HomeMy WebLinkAbout2002-25 - City Manager CompensationRESOLUTION NO. 2002- 25
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.
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Tod W. Ridgewa
Mayor
ATTEST:
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LaVonne Harkless
City Clerk
SECOND AMENDED EMPLOYMENT AGREEMENT
This Second Amended Employment Agreement (Second Amended Agreement),
which is effective as of the 26' day of March 2002, 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 $170,000.00, effective December 1,
2001, in twenty-six (26) equal installments paid at the same time other management
employees of the City are paid. 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
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 Agreement, 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 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 appropriate by 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 salary.
However, BLUDAU shall not be entitled to any severance pay if this Second
Amended Agreement is terminated because of BLUDAU'S criminal
conduct, malfeasance in office, or gross abuse of discretion.
SECTION 5. Employee Benefits.
A. BLUDAU shall accumulate flex 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.
C. BLUDAU shall be entitled to participate in plans and programs available to
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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 Association 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 $1000.00.
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.
F. 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
and national conferences relevant to the
Manager and pursuant to the City Charter,
Second Amended Agreement.
SECTION 8. Housing.
to attend a reasonable number of local, state
performance of duties required of a City
the Newport Beach Municipal Code and this
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 loaned BLUDAU the sum of
$50,000 (Loan). The Loan has been, and shall be, used solely to purchase housing in
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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 any accumulated paid leave
for which BLUDAU would otherwise be paid upon separation, a sum equal to the amount
of the 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
of the City), or when properly addressed and deposited in the United States
mail, registered or certified, with postage prepaid and return receipt
requested.
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Dated:
Dated:
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.
Tod Ridgeway
Mayor of Newport Beach
APPROVED AS TO FORM:
Robert H. Burnham,
CITY ATTORNEY
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Homer Bludau
STATE OF CALIFORNIA }
COUNTY OF ORANGE } as.
CITY OF NEWPORT BEACH 1
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2002 -25 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
26th day of March, 2002, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Mayor Ridgeway
Noes: None
Absent: Proctor
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 27th day of March, 2002.
(Seal)
City Clerk
Newport Beach, California