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HomeMy WebLinkAbout16 - City Manager Amended Employment AgreementCITY OF NEWPORT BEACH AGENDA ITEM NO. 16 TO: MEMBERS OF THE CITY COUNCIL FROM: Mayor John Noyes Council Members Dennis O'Neil and Tod Ridgeway DATE: March 14, 2000 SUBJECT: CITY MANAGER'S AMENDED EMPLOYMENT AGREEMENT RECOMMENDED ACTION Adopt the three recommended changes to the City Manager's Employment Agreement. DISCUSSION City Manager Homer Bludau signed an Employment Agreement with the City on March 8, 1999. The Agreement calls for periodic performance evaluations and compensation adjustments. The City Manager recently received a satisfactory performance evaluation from the City Council based on his eleven month job performance. Given the successful performance evaluation, a City Council subcommittee composed of Mayor Noyes and Council Members O'Neil and Ridgeway met with the City Manager to discuss employment agreement issues. Based on that meeting, the Council Subcommittee recommends approval of the following Employment Agreement amendments: A salary adjustment of four percent (4 %) to $145,600 annually (Section 3); The availability of the International City Management Association's 457 Deferred Compensation Plan for employee contributions at no cost to the City (Section 5C Employee Benefits); 3. A loan of $50,000 to the City Manager to be applied towards the purchase of housing, with interest payments being made annually by the City Manager and with specific requirements on loan repayments (Section 8 Housing). These three issues constitute the only recommended changes to the Employment Agreement. The Subcommittee makes this recommendation unanimously. A draft of the Agreement with changes in included for action. City Hall • 3300 Newport Boulevard • Post Office Box 1768 . Newport Beach, California 92659 -1768 AMENDED EMPLOYMENT AGREEMENT This Amended Employment Agreement (Amended Agreement), which is effective as of the 28'h day of February, 2000, 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 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 from his date of hire and determined that his performance warrants an increase in salary and modification of other benefits. 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 Datefferm. This Amended Agreement shall remain in effect unless and until terminated pursuant to Section 4. SECTION 3. Base Compensation. City shall pay BLUDAU an annual base salary of $145,600.00 in twenty -six (26) equal installments paid at the same time other management employees of the City are paid. The annual base salary of BLUDAU shall be established by the City Council. This 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 participation in plans or programs described in Section 5 of this Amended Agreement. SECTION 4. Termination and Severance Pay. A. BLUDAU may terminate this Amended Agreement by giving the City at least forty -five (45) days prior written notice of termination. B. City may terminate BLUDAU, without cause, upon the affirmative votes of a majority of the members of the City Council at any regular meeting. However, consistent with provisions of the City Charter, BLUDAU 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 Amended Agreement, and any reasons for termination, if appropriate, at least forty -five (45) days prior to the effective date of termination. C. In the event this Amended Agreement is terminated by the City, BLUDAU shall receive severance pay equal to one -half (1/2) of his annual base salary as of the date of termination. However, BLUDAU shall not be entitled to any severance pay if BLUDAU is terminated because of criminal conduct, malfeasance in office, or a gross abuse of discretion. SECTION 5. Employee Benefits. A. BLUDAU shall accumulate paid leave at the rate of twenty -six (26) days per year, commencing on the effective date of this 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. 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 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. mgremp. agt 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 $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 Amended Agreement and the City Charter, the City Charter shall prevail. F. City shall pay BLUDAU $300 per month as an automobile allowance. G. This 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 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 this Amended Agreement. SECTION 8. Housing. 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 will loan BLUDAU the sum of $50,000 (Loan). The Loan 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 mgremp.agt 3 penalty. BLUDAU shall pay the entire unpaid balance of the Loan upon the expiration of ten (10) years from the effective date of this 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 reduce the unpaid balance by the value of any accumulated paid leave for which BLUDAU would otherwise be paid upon separation. SECTION 9. Evaluation. The City Council shall conduct regular evaluations of BLUDAU's performance during the term of this 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 Amended Agreement and /or relevant provisions of the City Charter or City ordinance. B. This 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 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. D. This 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: mgremp.agt 4 John Noyes Mayor of Newport Beach Dated: APPROVED AS TO FORM: Robert H. Burnham, CITY ATTORNEY F:1 cafthared \Ag\CityMa nag er1030700final.doc mgremp.agt 5 Homer Bludau