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HomeMy WebLinkAbout92-19 - Kevin Murphy as City ManagerRESOLUTION NO. 92- 19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AN AGREEMENT PURSUANT TO WHICH KEVIN J. MURPHY IS RETAINED AS CITY MANAGER. • WHEREAS, the City Council would like to hire Kevin J. Murphy ( "Murphy ") as the City Manager of the City of Newport Beach; and WHEREAS, the City Council and Murphy have agreed on the terms of a written Agreement specifying the terms and conditions of Murphy's employment relationship with the City of Newport Beach (a copy of the written agreement is attached as Exhibit "A ".); and WHEREAS, the Charter of the City of Newport Beach requires the salary of the City Manager to be established by ordinance or resolution; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: SECTION 1: The City Council hereby approves the Agreement between the City of Newport Beach and Kevin J. Murphy (Exhibit SECTION 2: The Mayor and City Clerk are hereby authorized to sign the Agreement on behalf of the City of Newport Beach. ADOPTED, this 24th day of February , 1992. • MAYOR EMPLOYMENT AGREEMENT The City of Newport Beach ( "City ") and Kevin J. Murphy ( "Murphy ") agree as follows: SECTION 1. Employment as City Manager. • City shall employ Murphy 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. Murphy 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 other management employees of other municipalities. SECTION 2. Effective Date /Term. This Agreement shall be effective on March 23, 1992 and shall remain in effect until terminated pursuant to Section 4. SECTION 3. Base Compensation. City shall pay City Manager an annual base salary of $130,000.00 in twenty -six (26) equal installments paid at the same time other management employees of the City are paid. The annual base salary of the City Manager shall be established by resolution of the City Council. This Agreement shall be deemed amended whenever the City Council adopts a resolution changing the base salary of the City Manager or the manner in which management employees are paid. City shall have the right to deduct or withhold from Murphy's base compensation any and all sums required for federal income and social security taxes and all state or local taxes now applicable or that may become applicable in the future. City may also deduct sums Murphy is obligated to pay because of participation in plans or programs described in Section 6 of this Agreement. SECTION 4. Termination and Severance Pay. A. Murphy may terminate this Agreement by giving the City at least forty -five (45) days' prior written notice of termination. B. City may terminate Murphy, without cause, upon the affirmative votes of a majority of the members of the City Council at any regular meeting, provided, however, Murphy 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. Murphy shall be furnished with written notice stating the Council's intention to terminate this Agreement, and any reasons for termination, if appropriate, at least thirty (30) days prior to the effective date of termination. C. Murphy shall receive severance pay equal to one -half (1/2) of his annual base compensation as of the date of • termination, unless he is terminated because of criminal conduct, malfeasance in office, or a gross abuse of discretion. SECTION S. Employee Benefits. A. Murphy shall accumulate paid leave at the rate of twenty - five (25) days per year, commencing on the effective date of this Agreement. B. Murphy shall receive the same health insurance and retirement benefits as are available to other non - safety management employees of the City. C. Murphy shall be entitled to participate in plans and programs available to other management employees of the City such as short term and long term disability plans, life insurance plans, and deferred compensation plans as other management employees of the City. D. Murphy shall, at City expense, undergo an annual physical examination similar to that made available to other management employees of the same age. E. The provisions of the then current Personnel Policies Resolution as well as those provisions of the City Charter and Municipal Code that relate to the terms and conditions of employment shall, except to the extent inconsistent with the terms of this Agreement, apply to Murphy as they are applied to other management employees provided, however, Murphy shall not be entitled to any compensation, or compensatory time off, for overtime. F. City shall provide Murphy with an automobile that may be used for City business as well as personal use. Murphy shall purchase gasoline for the automobile when used for mgrwp.agt reasons other than Citg business. G. This Agreement shall be deemed amended whenever the City Council adopts a resolution changing the rate Murphy accumulates paid leave or alters employee benefits available to other non - safety management employees of the City. SECTION 6. Business Expenses. • City shall reimburse Murphy for all reasonable business expenses actually incurred by Murphy in the performance of services pursuant to this Agreement. Murphy 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. Murphy shall, at City expense, be entitled to attend a reasonable number of local, state and national conferences relevant to his performance of services pursuant to this Agreement. SECTION S. Moving Expenses. City shall, upon receipt of appropriate statements or invoices, pay all costs actually incurred by Murphy in moving his principal residence from Alhambra to Newport Beach. SECTION 9. Housing. A. Murphy shall become a full time resident and elector, of the City of Newport Beach within ninety (90) days after the effective date of this Agreement, unless the time is extended by action of the City Council. B. City shall provide Murphy with that portion of the Advance requested upon thirty (30) days' written notice. City shall pay up to $200,000 (the "Advance ") towards the purchase price of the first Newport Beach residence purchased by Murphy, subject to the following terms and conditions: mgreup.agt 1. The Advance is provided on an equity sharing basis. Murphy shall repay the amount of the Advance and all or a portion of any increase in the value of the residence between the date of purchase and the date of sale or buyout ("Equity Build -up ") as specified in this Section. The City's share of the Equity Build -up, if any, shall be in proportion to the amount of the Advance divided by the total equity contributed by the City and Murphy to purchase the residence. For example, the City is entitled to 66 -2/3% of the Equity Build -up, if any, • if the Advance is $200,000.00, and Murphy contributes $100,000:00 for a total equity contribution at the time of purchase or $300,000.00. 2. The Advance and City's share of Equity Build -up, if any, shall be repaid to City within six months after termination of this Agreement, provided, however, that all expenses of the sale of the residence shall first be deducted from the proceeds with each party being charged a prorata share of said expenses in relation to their respective ownership interests and further provided that Murphy shall be repaid all Equity Build -up achieved, by loan reduction only, from the date of purchase to the date of sale. All remaining proceeds shall be shared by the City and Murphy in relationship to the percentage of equity contributed at the time of purchase. Murphy has the option of selling the residence and paying the City from the proceeds of the sale or retaining the residence and paying the City the Advance and Equity Build -up based upon the market value of the residence as determined by an MAI appraiser selected by the City. The date on which the Advance and Equity Build -up are to be paid to the City may be extended if Murphy has diligently attempted to sell the residence, but has received no reasonable offer to purchase. For the purposes of this agreement, the City's percent of ownership shall be that percentage derived by dividing the amount of the Advance by the total purchase price. 3. City may require Murphy to execute documents necessary or appropriate to secure repayment of the Advance and /or payment of the Equity Build -up. City shall select a method of securing payment that mgremp.agt 4 • will protect its interests without duly interfering with Murphy's ability to obtain financing. Murphy shall make monthly mortgage payments and pay all property taxes, insurance and maintenance costs. 5. Except for any initial purchase money mortgage, Murphy shall not encumber the property without the express written consent of the City. 6. Murphy agrees not to make any capital improvements to the premises without the consent of the City, which consent shall not be unreasonably withheld, it being expressly understood and agreed that the parties will agree on a formula for Equity recapture at the time of sale which may result from any additional capital improvement. SECTION 10. Evaluation. The City Council shall conduct an initial evaluation of Murphy's performance within six (6) months from the effective date of this Agreement. Subsequent to the initial evaluation, the City Council shall evaluate Murphy's performance in June of each calendar year and, as a part of that evaluation, determine if Murphy's base salary or employee benefits should be increased or changed. SECTION 11. General Provisions. A. Murphy shall specified in terminated requirements ordinance. B. C. mgreW.egt serve at the pleasure of the City Council as the Newport Beach City Charter and may be "at will" subject to the procedural specified in this Agreement and /or City This Agreement shall be binding upon, and inure to the benefit of, the heirs, executors, and assigns of Murphy. Any notice required by this Agreement shall be in writing and deemed given when personally delivered (to the City Clerk in the case of the City), or deposited in the 5 United States mail, registered or certified, with postage prepaid and return receipt requested, and properly addressed. D. This 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: 5161 q2- CITY OF NEWPORT BEACH, A Municipal Corporation By:�E/ Dated: If, a I A l KEVIN ty Manager ATTEST: AS TO FORM: ttonerr x. nurnnam, CITY ATTORNEY C� �, .) C',y� ` .:4Q POD mgremp.agt 6