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:
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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
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•
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.
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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:
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CITY ATTORNEY
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