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HomeMy WebLinkAboutC-3025 - Employment ContractTO: FROM: SUBJECT: DISCUSSION: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER NOVEMBER 14, 1994 CITY COUNCIL CLARENCE J. TURNER MAYOR I City Council Agenda No. 14 t nnv I APPROVED CITY CLERK'S EMPLOYMENT CONTRACT (- As you know, there are three city employees who report directly to the City Council pursuant to the City Charter: the City Manager, the City Attorney and the City Clerk. Late last year, these employees were given performance reviews. The Council did agree to structure an employment contract with the City Attorney which would be similar to that given the City Manager and the Police Chief. We now have a proposed contract with the City Clerk which is commensurate with those of the City Manager, City Attorney and Police Chief. Basically, the agreement addresses compensation, termination and severance provisions. In addition, there would be no CPI increases and no accumulation of salary adjustments which would be paid out during her last year of employment. It does contain an early retirement credit similar to the program which the Council has approved for twenty -six other employees. The proposed contract is very similar to the City Attorney's in some respects: there would be no special salary adjustments and the City Clerk will only receive a salary adjustment if one is provided to other Directors. Memo to City Council • Re: City Clerks Contract Page 2 of 2 The contract itself is a virtual carbon copy of the one prepared for the City Attorney by Mr. Steve Dorsey, a partner in the Los Angeles law firm of Richards, Watson & Gershin. Because of the similarities of the contract, we did not seek or consult additional outside legal counsel, as it did not seem prudent to do so. The agreement provides for the termination of the Clerk without cause upon the affirmative votes of a majority of the members of the City Council at any regular meeting. The Clerk may not be terminated within ninety days after a municipal election for the selection or recall of one or more members of the City Council. Also, the Clerk shall be furnished with a written notice stating the Council's intention to terminate this agreement at least ninety days prior to the effective date of the termination. There are other provisions in the contract, though it is important to note that the Clerk's employment remains "at will." Ratification of this contract will complete the procedure for all three employees who report directly to the City Council. I personally endorse this contract since the contracts clearly define our respective obligations and thereby clarifies the Council's relationship with its direct employees. 0 C - 3C'25- EMPLOYMENT AGREEMENT The City of Newport Beach ( "City ") and Wanda E. Raggio (Raggio) agree as follows: SECTION 1. Employment as City Clerk. (a) City shall employ Raggio as City Clerk 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. SECTION 2. Effective Date /Term This Agreement shall be effective on November 14, 1994 and shall remain in effect until terminated pursuant to Section 4. SECTION 3. Base Compensation (a) City shall pay Raggio an annual base salary of $80,695.94 in twenty -six (26) equal installments paid at the same time other management employees of the City are paid. City shall have the right to deduct or withhold from Raggio's base salary any and all sums required for federal income and social security taxes and all state and local taxes now applicable or that may become applicable in the future. City may also deduct sums Raggio is obligated to pay because of participation in plans or programs described in Section 6 of this Agreement. (b) The base salary shall be adjusted when and if the other department directors receive increases in compensation during the term of this agreement. The amount of the increase in base salary shall be equitable to the increases given to other department directors. SECTION 4. Termination and Severance Pay A. Raggio may terminate this Agreement by giving the City at least sixty (60) days prior written notice of termination. Raggio shall provide at least 180 days notice in the event termination is based on a decision to retire. B. City may terminate Raggio, without cause, upon the affirmative votes of majority of the members of the City Council at any regular meeting, provided, however, 1 0 Raggio 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. Raggio shall be furnished with written notice stating the Council's intention to terminate this Agreement at least ninety (90) days prior to the effective date of termination. Raggio shall receive severance pay equal to one -half (1/2) of her annual base compensation as of the date of termination, unless she is terminated because of criminal conduct, malfeasance in office, or a gross abuse of discretion. A. Except as provided in this Section or elsewhere in this agreement, Raggio shall be entitled to the same benefits as are provided to other management employees of the City. 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 Raggio as they are applied to other management employees provided, however, Raggio shall not be entitled to any compensation, or compensatory time off, for overtime. In lieu of overtime; and in recognition of the expenditure of time, over and above normal working hours, required to perform the duties of City Clerk: (i) Raggio shall receive eighty (80) hours of administrative leave per year commencing January 1, 1995. Administrative leave shall be taken or lost - administrative leave may not be carried over from year to year. B. Raggio shall, at City expense, undergo an annual physical examination similar to that made available to other management employees of the same age. C. City shall provide Raggio with a supplemental retirement annuity upon termination of this agreement. The supplemental retirement shall be in the form of annuity, the same as granted to other employees, based upon two and one -half (2 -1/2) years of service or two and one - half (2 -1/2) years of age, whichever is more beneficial to Raggio. Said benefits shall be paid in the form of a structured annuity or actuarial equivalent lump sum payment as elected by Raggio. The actual form of the annuity shall be similar to the Early Retirement 2 0 annuities offered to other City employees during 1993 and 1994. D. Raggio shall remain as City Clerk for a minimum of one year from the approved date of this contract to receive the ERA set forth in this section. SECTION 6. Rnsiness Expenses. City shall reimburse Raggio for all reasonable business expenses actually incurred by Raggio in the performance of services pursuant to this Agreement. SECTION 7. Xee inas and Conferences. Raggio shall, at City expense, be entitled to attend a reasonable number of local, state and national conferences relevant to her performance of services pursuant to this Agreement, provided, however, in no event shall expenditures pursuant to this section exceed the amount allocated in the City Clerk's budget for that fiscal year. SECTION B. General Provisions, A. Raggio shall serve at the pleasure of the City Council as specified in the Newport Beach City Charter and may be terminated ,at will" subject to the procedural requirements specified in this Agreement and /or City ordinance. B. This Agreement shall be binding upon, and inure to the benefit of, the heirs, executors, and assigns of Raggio. C. Any notice required by this Agreement shall be in writing and deemed given when personally delivered (to the Mayor and City Clerk in the case of the City), or deposited in the United States mail, registered or certified, with postage prepaid and return receipt requested, and properly addressed. 9 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 changed. Dated: / /�°�� �q9� CITY OF NEWPORT BEACH, A Municipal Corporation BY I'n Mayor ATTEST: �µ { �Ao I Irene Butler ASSISTANT CITY CLERK Approved as to form: 6' n Ro ert H. Burnham CITY ATTORNEY