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HomeMy WebLinkAbout07 - Financial & Management ServicesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 December 9, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 949/644 -3000 or hbludau @city.newport- beach.ca.us SUBJECT: Approval of a Professional Services Agreement with Dennis Danner Upon His Retirement for a Continuation of Financial and Management Services for a Not to Exceed Twelve Months Duration ISSUE: Does the City Council desire to enter into a professional services agreement with Dennis Danner to provide financial and management services for a not to exceed 12 months duration? RECOMMENDATION: Authorize the City Manager to enter into the professional services contract with Mr. Danner DISCUSSION: Background: For good reasons, the City Council has a policy (F -20) regarding the hiring of former City employees. This policy requires all such contracts be approved by the City Council. Dennis Danner is retiring on December 30, 2008, after working for the City the past 18 years. Mr. Danner was initially hired in July 1990, as the Finance Director, and upon reorganization, he was named Administrative Services Director in 1995. He has held that position since that date. In addition, Mr. Danner has over 37 years of public service in the finance profession. Analysis: Mr. Danner has served the City in an exceptionally valuable capacity over the past 18 years. His oversight of City investments, conservative budgeting strategy and keen insights into financial markets, cash flow needs, City operations and anticipated City revenues has resulted in the City being placed in excellent financial condition, with over $79 million currently in its General Fund reserves. Mr. Danner has a state -wide reputation for expertise on financial issues and has served on many state -wide boards and committees. In addition, Council Approval of a Professional Services Agreement with Dennis Danner December 9, 2008 Page 2 Mr. Danner is an effective supervisor, whose employees provide excellent results with high customer service standards. The City recently being awarded the Helen Putnam Award of Excellence by the League California Cities for financial management was in large part due to his creativity and that of his staff. Due to the current economic recession, the City's monitoring and assessment of the current year's budgeted revenues and expenditures is vitally important at a time the City Council is currently planning and seeks to construct several major capital improvements. In addition, since the preparation of the FY 2009 -2010 budget will start in January 2009, the City Manager believes it is in this community's and organization's best interests to retain Mr. Danner's expertise in, and knowledge of, the City's financial condition and market conditions to oversee the preparation and adoption of the next City budget. To lose Mr. Danner's expertise at this time of economic instability would put the City at a great disadvantage in striving to continue to deliver the high quality City services currently being provided, while at the same time accomplishing effective capital improvement project financial planning. The contract being proposed by the City Manager would be for a not to exceed 12 -month duration, although the contract could be ended upon 30 days notice. The contract calls for Mr. Danner to be paid $100 per hour for time worked. Additionally, 15 days of flex leave would be provided. Fiscal Impact: Mr. Danner's total compensation for the fiscal year is included in the current budget. The City will actually pay less under this contract than the City would contribute to his total compensation package if he remained an employee. In addition, PERS regulations do not allow a retiree to work more than 1,920 hours over the next 12 months, and that reduction in hours will save the City an additional $16,500 should Mr. Danner work the duration of the contract. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the Council considers the item). Submitted by: S)-4tea/ H OMER L. BLUDAU City Manager Attachment Professional Services Agreement PROFESSIONAL SERVICES CONSULTANT AGREEMENT FOR DENNIS DANNER TO PROVIDE FINANCIAL AND ADMINISTRATIVE SERVICES TO THE CITY UPON HIS RETIRMENT FOR A PERIOD NOT TO EXCEED TWELVE MONTHS IN DURATION This Agreement is made effective as of the 5TH day of January, 2009, by and between the City of Newport Beach, a Municipal Corporation ( "City") and DENNIS DANNER, an individual, whose address is 609 Taper Drive, Seal Beach, CA 90740 ( "Consultant ") with reference to the following: RECITALS A. Consultant has been employed by the City since July 1990, first as the Finance Director and since 1995, as the Administrative Services Director. Consultant is retiring from regular service on December 31, 2008. B. Consultant is willing to accept a contract with the City on the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Commencement: The term of this Agreement shall commence upon the 5`h day of January, 2009 and terminate on the 5`h day of January, 2010, unless terminated earlier as provided in Section 5. 2. Services To Be Performed By Consultant: Consultant will provide assistance to the City Manager and the Administrative Services Department by acting as the Administrative Services Director with all the duties and responsibilities of that position. In addition to stated duties, the consultant will oversee the preparation and adoption of the City's FY 2009 -2010 budget. 3. Compensation: As consideration for the performance of the specified services under this Agreement, Consultant shall be compensated as follows: a. Pay of One - Hundred Dollars ($100) per hour for hours worked pursuant to this Agreement. Consultant shall be paid on a bi- weekly basis subject to State and Federal income tax withholding. $100 per hour shall be considered just compensation and no additional benefits or holiday pay 3 will be provided under this Agreement. Consultant shall receive 120 hours of paid Flex Leave for use during the term of this Agreement. b. Consultant shall maintain and submit complete records of time worked to the Payroll Section of the City. C. This contract shall be overseen by the City Manager and the consultant shall report to the City Manager for direct supervision. 4. Hours: It is expected that Consultant will work a normal 40 hour week. Consultant is restricted by retirement law from working in excess of 960 hours in any fiscal year which begins on July 1" and ends on June 30`h of the following calendar year and Consultant agrees to not work more than 960 hours (including paid Flex Leave) under this Agreement. 5. Termination: Consultant and the City both understand and agree that: a. This Agreement may be terminated at any time, without cause, by either party by giving 2 week prior written notice to the other party. b. This Agreement may be terminated at any time, with cause, by the City by giving 24 hour prior written notice to Consultant. C. No representative or other employee of the City, other than the City Manager, has any authority to enter into an agreement with Consultant for any specific period of time or to change the Consultant's contract for any reason. d. No promises or representations regarding regular employment have been made to Consultant and Consultant has no expectation of permanent employment with the City. e. Upon termination of the Agreement, the City shall pay to Consultant that portion of compensation specified in this Agreement that is earned and unpaid prior to the effective date of contract expiration. 6. Integrated Contract, This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto and all preliminary negotiations and agreements of any kind or nature are merged herein. Any modification of this Agreement will be effective only by written execution signed by both Consultant and the City Manager and ratified by the City Council. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the 90, day of December, 2009. APPROVED AS TO FORM AND CONTENT: CITY OF NEWPORT BEACH A Municipal Corporation By. "-"^ (_ By: Aaron C. Harp, Assistant City Attorney ATTEST: By: Leilani Brown City Clerk Homer Bludau, City Manager CONSULTANT LIN Dennis Danner S