HomeMy WebLinkAboutC-3262 - City Manager Employment AgreementCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
�AN
Agenda Item No. s
January 13, 2009
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: Recommendation to Amend the City Manager's Employment Agreement to
Provide a Monthly Auto Allowance
ISSUE:
Does the City Council want to amend the City Manager's employment agreement to match
the $500 monthly auto allowance recently provided to the City Attorney under his new
contract?
RECOMMENDATION:
The City Council's City Attorney Recruitment Committee, with Councilman Webb as Chair,
recommends the City Manager's employment contract be amended to provide for a $500
monthly auto allowance.
BACKGROUND:
The City Manager has been employed by contract since May 1999, with his sixth amended
employment agreement being entered into in December 2007. That agreement's term is for
two years — from September 2, 2007 until September 1, 2009. The City Council has
recently successfully concluded a City Attorney recruitment with the hiring of David Hunt,
whose employment agreement was approved at the December 9, 2008, Council meeting.
That agreement included an auto allowance for the City Attorney in the amount of $500
monthly.
DISCUSSION:
The City Council's City Attorney Recruitment Committee recommends the City Manager's
current employment contract be amended to also provide a $500 monthly auto allowance.
The City Manager does not currently receive an auto allowance, and the recruitment of the
City Attorney showed it is a general practice that City Managers and staff City Attorneys be
provided an auto allowance. The $500 monthly amount being recommended appears to be
an average auto allowance for these positions. The Committee believes it is an issue of
• City Manager Auto Allowance
January 13, 2009
Page 2
fairness that the City Manager should also receive the same benefit being provided to the
newly hired City Attorney.
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:
HOMER L. BLU AU
City Manager
9 •
• CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Supplemental Agenda Item No. 8
January 13, 2009
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Don Webb, Council Member
949/646 -3133 or dwebb @city.newport- beach.ca.us
SUBJECT: Recommendation to Amend the City Manager's Employment Agreement to
Provide a Monthly Auto Allowance
ISSUE:
Does the City Council want to amend the City Manager's employment agreement to match
the $500 monthly auto allowance recently provided to the City Attorney under his new
contract?
• RECOMMENDATION:
The City Council's City Attorney Recruitment Committee, with Councilman Webb as Chair,
recommends the City Manager's employment contract be amended to provide for a $500
monthly auto allowance and by affirmative action on this matter the City Council authorizes
the modification of the City Manager's contract accordingly.
BACKGROUND:
The City Manager has been employed by contract since May 1999, with his sixth amended
employment agreement being entered into in December 2007. That agreement's term is for
two years — from September 2, 2007, until September 1, 2009. The City Council has
recently successfully concluded a City Attorney recruitment with the hiring of David Hunt,
whose employment agreement was approved at the December 9, 2008, Council meeting.
That agreement included an auto allowance for the City Attorney in the amount of $500
monthly.
DISCUSSION:
The City Council's City Attorney Recruitment Committee recommends the City Manager's
current employment contract be amended to also provide a $500 monthly auto allowance.
The City Manager does not currently receive an auto allowance, and the recruitment of the
City Attorney showed it is a general practice that City Managers and staff City Attorneys be
• provided an auto allowance. The $500 monthly amount being recommended appears to be
an average auto allowance for these positions. The Committee believes it is an issue of
• • City Manager Auto Allowance
January 13, 2009
Page 2
fairness that the City Manager should also receive the same benefit being provided to the •
newly hired City Attorney.
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:
_ ! R
Don Webb
Council Member
•
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FIFTH AMENDED EMPLOYMENT AGREEMENT
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This Fifth Amended Employment Agreement (Fifth Amended Agreement),
which is effective as of the 7th of January, 2006, 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 City of Newport
Beach (Original Agreement);
B. The Original Agreement was amended first on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the following
three Amended Agreements 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 over the past twelve months and has determined that his
performance warrants an increase in salary and modification of other
benefits as specified in this Fifth Amended Agreement.
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 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 cites generally and are performed by management
employees of other municipalities.
SECTION 2 Effective Date/Term
This Fifth Amended Agreement shall take effect January 7, 2006 and
remain in effect until January 7, 2008 or until amended by the Parties or
terminated pursuant to Section 4.
SECTION 3 Base Compensation
City shall pay BLUDAU an annual base salary of $195,977.00, effective
January 7, 2006, in twenty-six (26) equal installments paid at the same time
other management employees of the City are paid. Effective January 6, 2007,
BLUDAU's annual base salary will increase to $203,806 and remain in effect until
this agreement is changed by City Council action. This Fifth 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 sum 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 BLUDAU's participation in plans or programs generally described
in Section 5 of this Fifth Amended Agreement.
SECTION 4 Termination and Severance Pay
A. BLUDAU may terminate this Fifth Amended Agreement by giving the City
at least forty-five (45) days prior written notice of termination.
B. City may terminate this Fifth Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at
any regular or special meeting of the City Council. However, consistent
with provisions of the City Charter, this Fifth Amended Agreement 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 Fifth Amended Agreement, and any reasons for
termination, if deemed appropriate by the City Council, at least forty-five
(45) days prior to the effective date of termination.
C. In the event this Fifth Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (1/2) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Fifth
Amended Agreement is terminated because of BLUDAU's criminal conduct,
malfeasance in office, or gross abuse of discretion.
SECTION 5 Employee Benefits
A. BLUDAU shall accumulate flex leave at the rate of twenty-six (26) days
per year, commencing on the effective date of this Fifth Amended
2
Agreement. BLUDAU shall also be entitled to 120 hours of administrative
leave per year. BLUDAU shall not be entitled to any compensation, or
compensatory time off, for overtime. BLUDAU shall not be entitled to flex
leave spill -over pay and shall not be subject to any flex leave accrual
threshold.
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.
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 $1,000.00.
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 Fifth Amended Agreement and the City
Charter, the City Charter shall prevail.
F. This Fifth 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
A. Effective January 2006, BLUDAU shall receive a monthly car allowance of
$450 for use of his personal car for City business.
B. City shall reimburse BLUDAU for all reasonable business expenses (except
automobile expenses) actually incurred by BLUDAU in the performance of
services pursuant to this Fifth Amended 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.
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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 the City Charter, the Newport Beach
Municipal Code and this Fifth 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 has loaned
BLUDAU the sum of $50,000 (Loan). The Loan has been, and 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 penalty. BLUDAU shall pay the entire unpaid
balance of the Loan upon the expiration of ten (10) years from the effective date
of this Fifth 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 withhold, from value of any
accumulated paid leave for which BLUDAU would otherwise be paid upon
separation, a sum equal to the amount of the then current unpaid balance.
SECTION 9 Evaluation
The City Council shall conduct regular evaluations of BLUDAU's
performance during the term of this Fifth 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
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specified in this Fifth Amended Agreement and /or relevant provisions of
the City Charter of City ordinance.
B. This Fifth 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 Fifth 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 Fifth 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: a/,�,4 /0&
Dated: a 0
APPROVED AS TO FORM:
enn'. C � W^ --
Foi Robin Clauson
City Attorney
5
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Don Webb
Mayor of Newport Beach
/-
Homer L. BI au
City Manager of Newport Beach
CITY OF NEWPORT BEACH
e °c couNca CITY COUNCIL STAFF REPORT
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Agenda Item No. 13
7555nXIM February 14, 2006
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Council Ad Hoc Compensation Committee
Mayor Don Webb
Mayor Pro Tern Steve Rosansky
Council Member Ed Selich
SUBJECT: Proposed Modifications to City Manager Employment Agreement
RECOMMENDATION:
By Resolution, enter into a two year employment agreement with the City Manager,
which includes a 5% salary increase the first year, effective January 7, 2006, and a 4%
salary increase the second year, effective January 6, 2007.
DISCUSSION:
The City Council recently completed a performance evaluation on the City Manager for
the 2005 calendar year and found him to have effectively carried out his job duties. The
Council Committee composed of Mayor Don Webb, Mayor Pro Tern Steve Rosansky
and Council Member Ed Selich has communicated with the City Manager regarding
overall compensation and benefits. It is clear that the City Manager's total
compensation is well below other Orange County cities used as comparisons; and
therefore, we recommend an increase in compensation and benefits over a two year
contract period.
In April, 2005, the OC Register did an article on total compensation paid to City
Managers in Orange County, using figures obtained in 2004. The Newport Beach City
Manager's total compensation was found to rank 15th of the 34 Orange Council cities at
$211,932 per year. The survey information is almost two years old, and our City
Manager has not received a compensation adjustment since that time, placing him even
further behind many of his peers in the County. We believe that Newport Beach is a city
that requires a higher level of management oversight that most Orange County cities,
given it is a full service city and given the issues relating to water quality, the Coastal
Commission, John Wayne Airport and the City's $190M budget.
00posed Modifications to City Manor Employment Agreement
February 14, 2006
Page 2
Based on these findings, the Council Committee recommends the following
modifications be made in the City Manager's contract:
Enter into a two year employment contract with the City Manager with only those
changes included within this recommendation.
2. Establish an annual base salary of $195,977 (5% increase) effective January 7,
2006, until the first payroll period in 2007, at which time the City Manager's
annual base salary would increase by 4% to $203,816.
3. Effective January, 2006 the City Manager would be provided a car allowance of
$450 per month for the use of his personal car for City business.
4. The City Manager's Administrative Leave time (time provided in -lieu of overtime,
but not carried over from year to year) be increased from 10 to 15 days per year.
It is our belief these compensation adjustments will place our City Manager around 10th
in total compensation paid to Orange County City Managers, which we believe is fair to
both our City Manager and the community. We have spoken with the City Manager and
he is agreeable to these contract terms.
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RESOLUTION NO. 2006-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH ADJUSTING
THE COMPENSATION PAID TO THE
CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the City
Manager during the preceding (12) months;
WHEREAS, an adjustment to the base salary and term modifications to
the current employment agreement are appropriate given the performance of the
City Manager and the compensation paid to other City Managers within Orange
County; and
WHEREAS, the proposed modifications to compensation and benefits are
reflected in the Fifth Amended Employment Agreement that is attached to this
Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach that the salary and benefits of the City Manager shall be as
specified in Exhibit A and that the Mayor is authorized to execute Exhibit A on
behalf of the City Council.
ADOPTED this 14`h day of February 2006.
Don Webb
Mayor
ATTEST:
Lavonne Harkless
City Clerk
• EXHIBIT A
FIFTH AMENDED EMPLOYMENT AGREEMENT
This Fifth Amended Employment Agreement (Fifth Amended Agreement),
which is effective as of the 7th of January, 2006, 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 City of Newport
Beach (Original Agreement);
B. The Original Agreement was amended first on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the following
three Amended Agreements 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 over the past twelve months and has determined that his
performance warrants an increase in salary and modification of other
benefits as specified in this Fifth Amended Agreement.
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 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 cites generally and are performed by management
employees of other municipalities.
SECTION 2 Effective Date/Term
This Fifth Amended Agreement shall take effect January 7, 2006 and
remain in effect until January 7, 2008 or until amended by the Parties or
terminated pursuant to Section 4.
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SECTION 3 Base Compensation
City shall pay BLUDAU an annual base salary of $195,977.00, effective
January 7, 2006, in twenty-six (26) equal installments paid at the same time
other management employees of the City are paid. Effective January 6, 2007,
BLUDAU's annual base salary will increase to $203,806 and remain in effect until
this agreement is changed by City Council action. This Fifth 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 sum 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 BLUDAU's participation in plans or programs generally described
in Section 5 of this Fifth Amended Agreement.
SECTION 4 Termination and Severance Pay
A. BLUDAU may terminate this Fifth Amended Agreement by giving the City
at least forty-five (45) days prior written notice of termination.
B. City may terminate this Fifth Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at
any regular or special meeting of the City Council. However, consistent
with provisions of the City Charter, this Fifth Amended Agreement 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 Fifth Amended Agreement, and any reasons for
termination, if deemed appropriate by the City Council, at least forty-five
(45) days prior to the effective date of termination.
C. In the event this Fifth Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (1/2) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Fifth
Amended Agreement is terminated because of BLUDAU's criminal conduct,
malfeasance in office, or gross abuse of discretion.
SECTION 5 Employee Benefits
A. BLUDAU shall accumulate flex leave at the rate of twenty-six (26) days
per year, commending on the effective date of this Fifth Amended
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Agreement. BLUDAU shall also be entitled to 120 hours of administrative
leave per year. BLUDAU shall not be entitled to any compensation, or
compensatory time off, for overtime. BLUDAU shall not be entitled to flex
leave spill -over pay and shall not be subject to any flex leave accrual
threshold.
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.
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 $1,000.00.
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 Fifth Amended Agreement and the City
Charter, the City Charter shall prevail.
F. This Fifth 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
A. Effective January 2006, BLUDAU shall receive a monthly car allowance of
$450 for use of his personal car for City business.
B. City shall reimburse BLUDAU for all reasonable business expenses (except
automobile expenses) actually incurred by BLUDAU in the performance of
services pursuant to this Fifth Amended 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.
3
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 the City Charter, the Newport Beach
Municipal Code and this Fifth 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 has loaned
BLUDAU the sum of $50,000 (Loan). The Loan has been, and 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 15"' 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 penalty. BLUDAU shall pay the entire unpaid
balance of the Loan upon the expiration of ten (10) years from the effective date
of this Fifth 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 withhold, from value of any
accumulated paid leave for which BLUDAU would otherwise be paid upon
separation, a sum equal to the amount of the then current unpaid balance.
SECTION 9 Evaluation
The City Council shall conduct regular evaluations of BLUDAU's
performance during the term of this Fifth 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 'gat will" and without
specification of cause, subject only to the procedural requirements
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specified in this Fifth Amended Agreement and /or relevant provisions of
the City Charter of City ordinance.
B. This Fifth 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 Fifth 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 Fifth 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:
Dated:
APPROVED AS TO FORM:
Robin Clauson
City Attorney
5
Don Webb
Mayor of Newport Beach
Homer L. Bludau
City Manager of Newport Beach
- - - 0 i C '3)0-
TO:
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 23
February 24, 2004
HONORABLE MAYOR AND MEMBERS OF THE CITY
FROM: Council Ad Hoc Compensation Committee
Tod Ridgeway, Chair
John Heffernan
Don Webb
FEB 2 4 2004
SUBJECT: Proposed Modifications to City Manager Employment Agreement
RECOMMENDATION:
By Resolution, enter into a two year employment agreement with the City Manager
which includes a one time 4% salary increase for the period from January 3, 2004
through January 3, 2006.
DISCUSSION:
The City Council recently completed an evaluation of the job performance of the City
Manager during the past year. The City Council concluded that the City Manager
deserves additional compensation because he has performed his duties in an
exemplary manner and his current compensation is below that of his peers and certain
other City of Newport Beach employees.
The total compensation current paid to the City Manager ranks 15th out of 23 Orange
County cities surveyed by the Committee. In light of the evaluation of the City Manager
and his compensation compared to his peers, the City Council Ad Hoc Compensation
Committee has asked me to recommend the following modifications the City Manager's
employment contract:
1. Enter into a 2 -year employment contract with the City Manager that
changes only the items included in this report.
2. Establish an annual base salary of $186,645 effective January 3, 2004,
which provides for a one -time 4% salary increase over current salary.
This salary amount would remain constant over the 2 -year period (until
January 3, 2006) of the employment agreement, unless otherwise
changed by the City Council.
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r roposed Modifications to City Manager Employment Agreement
February 24, 2004
Page 2
3. Provide the City Manager with the same health insurance benefits that are
negotiated with the Key & Management employees during the term of this
employment agreement.
This agreement does not change the compensation that would be due the City Manager
if he was terminated from his position by the City Council during the agreement's term.
If approved, it would place him 13`h out of the 23 Orange County cities surveyed in
terms of total compensation provided city managers. The City Manager is agreeable to
these terms.
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH ADJUSTING
THE COMPENSATION PAID TO THE
CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the City
Manager during the preceding (12) months;
WHEREAS, an adjustment to the base salary and term modifications to
the current employment agreement are appropriate given the performance of the
City Manager and the compensation paid to other City Managers within Orange
County; and
WHEREAS, the proposed modifications to compensation and benefits are
reflected in the Fourth Amended Employment Agreement that is attached to this
Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach that the salary and benefits of the City Manager shall be as
specified in Exhibit A and that the Mayor is authorized to execute Exhibit A on
behalf of the City Council.
ADOPTED this 24th day of February 2004.
Tod W. Ridgeway
Mayor
ATTEST:
Lavonne Harkless
City Clerk
EXHIBIT A
FOURTH AMENDED EMPLOYMENT AGREEMENT
This Fourth Amended Employment Agreement (Fourth Amended
Agreement), which is effective as of the 3rd of January, 2004, 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 City of Newport
Beach (Original Agreement);
B. The Original Agreement was amended first on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the following
three Amended Agreements 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 over the past twelve months and has determined that his
performance warrants an increase in salary and modification of other
benefits as specified in this Fourth Amended Agreement.
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 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 cites generally and are performed by management
employees of other municipalities.
SECTION 2 Effective Date/Term
This Fourth Amended Agreement shall take effect January 3,
2004 and remain in effect until January 3, 2006 or until amended by
the Parties or terminated pursuant to Section 4.
SECTION 3 Base Compensation
City shall pay BLUDAU an annual base salary of $186,645.00,
effective January 3, 2004, in twenty-six (26) equal installments paid at
the same time other management employees of the City are paid. This
Fourth 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 sum 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 BLUDAU's participation in plans or programs
generally described in Section 5 of this Fourth Amended Agreement.
SECTION 4 Termination and Severance Pay
A. BLUDAU may terminate this Fourth Amended Agreement by giving the
City at least forty-five (45) days prior written notice of termination.
B. City may terminate this Fourth Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at
any regular or special meeting of the City Council. However, consistent
with provisions of the City Charter, this Fourth Amended Agreement 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 Fourth Amended Agreement, and any reasons
for termination, if deemed appropriate by the City Council, at least forty-
five (45) days prior to the effective date of termination.
C. In the event this Fourth Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (1/2) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Fourth
Amended Agreement is terminated because of BLUDAU's criminal conduct,
malfeasance in office, or gross abuse of discretion.
SECTION 5 Employee Benefits
A. BLUDAU shall accumulate flex leave at the rate of twenty-six (26) days
per year, commending on the effective date of this Fourth Amended
Agreement. BLUDAU shall also be entitled to eighty hours of
administrative leave per year. BLUDAU shall not be entitled to any
7
0
compensation, or compensatory time off, for overtime. BLUDAU shall not
be entitled to flex leave spill -over pay and shall not be subject to any flex
leave accrual threshold.
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.
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 $1,000.00.
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 Fourth Amended Agreement and the City
Charter, the City Charter shall prevail.
F.. This Fourth 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 Fourth Amended 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 the City Charter, the Newport Beach
Municipal Code and this Fourth Amended Agreement.
SECTION 8 Housing
0
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 has loaned
BLUDAU the sum of $50,000 (Loan). The Loan has been, and 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 penalty. BLUDAU shall pay the entire unpaid
balance of the Loan upon the expiration of ten (10) years from the effective date
of this Fourth 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 withhold, from value of any
accumulated paid leave for which BLUDAU would otherwise be paid upon
separation, a sum equal to the amount of the then current unpaid balance.
SECTION 9 Evaluation
The City Council shall conduct regular evaluations of BLUDAU's
performance during the term of this Fourth 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 Fourth Amended Agreement and /or relevant provisions of
the City Charter of City ordinance.
B. This Fourth Amended Agreement shall be binding on, and inure to the
benefit of, the heirs, executors, and assigns of BLUDAU.
M
C. Any notice required by this Fourth 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 Fourth 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:
Dated:
APPROVED AS TO FORM:
Robert H. Burnham
City Attorney
Wi
Tod W. Ridgeway }
Mayor of Newport Beach
Homer L. Bludau
City Manager of Newport Beach
CITY OF ORT BEACH MINUTE EXIRRPT
CITY COUNCIL MEETING OF NOVEMBER 26, 2002
ROLL CALL
Present: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor Ridgeway
Absent: None
CURRENT CALENDAR
22. ADJUSTMENTS TO THE COMPENSATION OF THE CITY CLERK, CITY ATTORNEY AND
CITY MANAGER.
Action: Based on successful performance evaluations, increased the salaries of the City
Clerk, City Attorney and City Manager by 2% for cost of living plus an additional 3%
for merit.
The motion carried by the following roll call vote:
Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Proctor, Mayor
Ridgeway
Noes: None
Abstain: None
Absent: None
CERTIFIED AS A TRUE AND CORRECT COPY
City Clerk of the City of Newport Beach
DATE: i1 /3 7 (0�
�r
Nov 2. g 2002
• C - 3a It;
CITY OF NEWPORT BEACH (3$)
CITY COUNCIL STAFF REPORT
Agenda Item No. 22
November 26, 2002
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Homer L. Bludau, City Manager
644 -3000, hbludau @city.newport- beach.ca.us
SUBJECT: Adjustments to the Compensation of the City Clerk, City Attorney,
and City Manager
RECOMMENDATION:
Based on successful performance evaluations, adopt the three resolutions making
changes to the total compensation packages.
DISCUSSION:
The City Clerk, City Attorney, and City Manager are the three City employees who work
directly for the City Council. Each of their employment agreements require them to be
evaluated for job performance by the City Council each year. Their evaluations will take
place during Council's Closed Session. Based on their evaluations, adjustments to total
compensation packages are likely to change, but that is unknown at this time.
Should there be adjustments to the total compensation packages, those will be reflected
in new attachments to the resolutions provided.
Submitted by:
4
Homer L. .'I
0 0
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, ADJUSTING THE
COMPENSATION OF THE CITY CLERK
WHEREAS, pursuant to the City Clerk's Employment Agreement which
establishes performance evaluations at least on an annual basis, the City Council conducted an
annual evaluation on November 12, 2002; and
WHEREAS, an adjustment to the base salary are appropriate in light of the
performance of the City Clerk and the compensation paid to other city clerks in Orange County.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Newport Beach authorizes an amendment to the employment agreement between the City and
the City Clerk to increase the City Clerk's base salary to $ effective
DATED this 26th day of November 2002.
MAYOR
ATTEST:
CITY CLERK
F
RESOLUTION NO. 2002-
E
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID
TO THE CITY ATTORNEY
WHEREAS, the City Council evaluates the performance of the City
Attorney each year; and
WHEREAS, an adjustment to the base salary and minor modifications
to other provisions of the current employment agreement are appropriate
in light of the performance of the City Attorney and the compensation paid
to other in house city attorneys in Orange County
WHEREAS, the proposed modifications to compensation and benefits
are reflected in the Employment Agreement that is attached to this
Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City of Council of the
City of Newport Beach that the salary and benefits of the City Attorney
shall be as specified in Exhibit A and that the Mayor is authorized to
execute Exhibit A on behalf of the City Council.
ADOPTED, this 26th day of November 2002.
Tod Ridgeway
Mayor of the City of Newport Beach
ATTEST:
LaVonne Harkless, City Clerk
• •
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID
TO THE CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the
City Manager during the preceding (12) months;
WHEREAS, an adjustment to the base salary (Third Amended
Agreement) is appropriate given the excellent performance of the City
Manager and the compensation paid to other City Manager's within Orange
County; and
WHEREAS, the proposed modifications to compensation are reflected
in the Third Amended Agreement that is attached to this resolution as
Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City of Council of the
City of Newport Beach that the salary and benefits of the City Manager
shall be as specified in Exhibit A and the Mayor is authorized to execute
Exhibit A on behalf of the City Council.
ADOPTED, this 26th day of November 2002.
Tod Ridgeway
Mayor of the City of Newport Beach
ATTEST:
LaVonne Harkless, City Clerk
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SECOND AMENDED EMPLOYMENT AGREEMENT
This Second Amended Employment Agreement (Second Amended Agreement),
which is effective as of the 261' day of March 2002, 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 was amended on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the First Amended
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 over the past twelve months and has determined that his
performance warrants an increase in salary and modification of other benefits as
specified in this Second Amended Agreement.
Now, Therefore, the Parties agree as follows:
SECTION 1. Emplovment as Citv 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 Date/Term
This Second Amended Agreement shall remain in effect until amended by the Parties or
terminated pursuant to Section 4.
SECTION 3. Base Compensation.
City shall pay BLUDAU an annual base salary of $170,000.00, effective December 1,
2001, in twenty-six (26) equal installments paid at the same time other management
employees of the City are paid. This Second 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
0 0
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 BLUDAU'S participation in plans or programs generally described in Section 5
of this Second Amended Agreement.
SECTION 4. Termination and Severance Pa v.
A. BLUDAU may terminate this Second Amended Agreement by giving the
City at least forty -five (45) days prior written notice of termination.
B. City may terminate this Second Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at any
regular or special meeting of the City Council. However, consistent with
provisions of the City Charter, this Second Amended Agreement 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 Second Amended Agreement, and any reasons for
termination, if deemed appropriate by the City Council, at least forty -five
(45) days prior to the effective date of termination.
C. In the event this Second Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (1/2) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Second
Amended Agreement is terminated because of BLUDAU'S criminal
conduct, malfeasance in office, or gross abuse of discretion.
SECTION 6. Employee Benefits.
A. BLUDAU shall accumulate flex leave at the rate of twenty-six (26) days per
year, commencing on the effective date of this Second 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. BLUDAU shall not be entitled to flex
leave spill -over pay and shall not be subject to any flex leave accrual
threshold.
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
mgnemp.agt
2
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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 Association 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.
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 $1000.00.
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 Second Amended Agreement and the City
Charter, the City Charter shall prevail.
F. This Second 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
Second Amended 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 the City Charter, the Newport Beach Municipal Code and this
Second 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 has loaned BLUDAU the sum of
$50,000 (Loan). The Loan has been, and shall be, used solely to purchase housing in
mgnemp.agt
3
0 0
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 penalty. BLUDAU shall pay the entire unpaid balance of the Loan
upon the expiration of ten (10) years from the effective date of this Second 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 withhold, from value of any accumulated paid leave
for which BLUDAU would otherwise be paid upon separation, a sum equal to the amount
of the then current unpaid balance. .
SECTION 9. Evaluation.
The City Council shall conduct regular evaluations of BLUDAU's performance during the
term of this Second 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 Second Amended Agreement and /or relevant provisions of the City
Charter or City ordinance.
B. This Second 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 Second 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.
mgre p.agt
n
0 0
D. This Second 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: _:? —,W' aZ
Dated: 4gA 24x2 16'
01 1 Homer Bludfiu
APPROVED AS TO FORM:
CITY ATTORNEY
F:\ cat\ shared \Ag \CityManager1032602finalk.doc
mgremp.agt
• . March 26, 2002
Agenda Item No. 4 1 J
CITY OF NEWPORT BEACH
Office of the City Council
TO:
Mayor. & Members of the City Council
SEW PC)
FROM:
Dennis D. O'Neil, Chair
Council Ad Hoc Compensation Committee
RE:
City Manager Employment Agreement
Proposed Modification to Compensation
4c'FOaN
DATE:
March 26. 2002
The City Council recently completed an evaluation of the performance of
the City Manager during the past year. The City Council concluded that
the City Manager deserves additional compensation because he has
accomplished substantially all of the goals established at the prior
evaluation, has performed his duties in an exemplary manner and his
current compensation is below that of his peers and other City employees.
The City Manager has played a significant role in the annexation of
Newport Coast, obtaining unanimous Board support for an extension of the
JWA Settlement Agreement, adopting a new Personnel Manual and
completing a "class and comp" study for key and management employees.
The total compensation currently paid to the City Manager ranks 16th out
of the 17 Orange County cities surveyed by the Committee. The City
Manager is currently paid less than the Chief of Police and the City
Attorney. In light of the evaluation of the City Manager and his
compensation compared to his peers, the City Council Ad Hoc
Compensation Committee has asked. me to recommend the following
modifications to the City Manager's employment contract:
1. Establish an annual base salary of $170,000.00 effective
December 1, 2001;
2. Eliminate the existing car allowance;
3. Increase, from $500.00 to $1000.00, the maximum amount of
reimbursement for the cost of an annual physical examination.
The City Attorney has suggested minor modifications to the contract and
these modifications and the adjustments to compensation described above
are shown in the redlined version of the "Second Amended Agreement that
is Exhibit A to the resolution that accompanies this Memo.
anoR�N °Ewaoa WAW
Dennis D. O'Neil MAR i ii 1002
Chair, Ad Hoc Council Compensation Committee
� AnoPTED r'Lesa.� LION 1.b2 w�
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID
TO THE CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the
City Manager during the preceding (12) months;
WHEREAS, an adjustment to the base salary and minor modifications
to other provisions of the current employment agreement are appropriate
given the excellent performance of the City Manager and the compensation
paid to other management employees; and
WHEREAS, the proposed modifications to compensation and benefits
are reflected in the Second Amended Employment Agreement that is
attached to this Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City of Council of the
City of Newport Beach that the salary and benefits of the City Manager
shall be as specified in Exhibit A and that the Mayor is authorized to
execute Exhibit A on behalf of the City Council.
ADOPTED, this 26th day of March 2002.
ATTEST:
LaVonne Harkless, City Clerk
Tod Ridgeway
Mayor of the City of Newport Beach
-1-
0 0
SECOND AMENDED EMPLOYMENT AGREEMENT
This Second Amended Employment Agreement (§j econd Amended Agreement),
which is effective as of the 26' 2r -day of MarchFe�, 20028, 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 was amended on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the First Amended
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 over the past twelve months frorn his date of hire and has
determined that his performance warrants an increase in salary and modification of
other benefits as specified in this Second Amended Agreement.
Now, Therefore, the Parties agree as follows:
SECTION 1. Emplovment as Citv 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 Date/Term.
This Second Amended Agreement shall remain in effect until amended by the
Parties or aalessand- aptil- terminated pursuant to Section 4.
SECTION 3. Base Compensation.
City shall pay BLUDAU an annual base salary of $17045,0600.00, effective
December 1, 2001, in twenty-six (26) equal installments paid at the same time other
management employees of the City are paid. The aRRUal base salary of 13LUDAI-1 rhall
be established by the Gity . This Second 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
EABIBIT
0
1i
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 BLUDAU'S participation in plans or programs generally described in Section 5
of this Second Amended Agreement.
SECTION 4. Termination and Severance Pay.
A. BLUDAU may terminate this Second Amended Agreement by giving the
City at least forty -five (45) days prior written notice of termination.
B. City may terminate this Second Amended AgreementBLUBAU, without
cause, upon the affirmative votes of a majority of the members of the City
Council at any regular or special meeting of the City Council. However,
consistent with provisions of the City Charter, this Second Amended
Agreement la IDAI I 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 Second Amended Agreement, and any
reasons for termination, if deemed appropriate by the City Council, at least
forty -five (45) days prior to the effective date of termination.
C. In the event this Second Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (1/2) of his then current annual base salary- as -ef4he
However, BLUDAU shall not be entitled to any
severance pay if this Second Amended Agreement BL61BAU is terminated
because of BLUDAU'S criminal conduct, malfeasance in office, or a -gross
abuse of discretion.
SECTION 5. Employee Benefits.
A. BLUDAU shall accumulate flexpaid leave at the rate of twenty-six (26) days
per year, commencing on the effective date of this Second 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. BLUDAU shall not be entitled to flex
leave spill -over pay and shall not be subject to any flex leave accrual
threshold.
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.
mgcemp.agt
! 0
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.
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 $10500.00.
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 Second Amended Agreement and the City
Charter, the City Charter shall prevail.
FG. This Second 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 Second Amended 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 the City Charter, the Newport Beach Municipal Code and this
Second Amended Agreement.
SECTION 8. Housino
mgremp.agt
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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 has w4t— loaned
BLUDAU the sum of $50,000 (Loan). The Loan has been, and 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 penalty. BLUDAU shall pay the entire unpaid balance
of the Loan upon the expiration of ten (10) years from the effective date of this Second
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 withhold from value of any accumulated paid leave
for which BLUDAU would otherwise be paid upon separation, a sum equal to the amount
of the fed, ice -t#e then current unpaid balance_ by thes value 9f aRy aGGumulated paid
SECTION 9. Evaluation.
The City Council shall conduct regular evaluations of BLUDAU's performance
during the term of this Second 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 Second Amended Agreement and /or relevant provisions of the City
Charter or City ordinance.
B. This Second 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 Second Amended Agreement shall be in writing
and deemed given when personally delivered (to the City Clerk in the case
mgzemp.agt
0
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 Second 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:
Tod RidgewayJehn -Noyes
Mayor of Newport Beach
Dated:
Homer Bludau
APPROVED AS TO FORM:
Robert H. Burnham,
CITY ATTORNEY
F:icatl sharedl Ag \CityManager1031997-029final.doc
mgremp.agt
9
a
31a (" boa
• lfr. Jim Hildreth
120 The Grand Canal
Newport Beach, CA 92662
26 March 2002
Re: City Council Agenda Item #4
Newport Beach City Council
3300 Newport Blvd.
Newport Beach, CA 92663
Dear City Council Members:
In the "First Amended Agreement" for the City Manager, Mr. Bludau, his salary
increased three percent (3%). When this was being considered, I said he was
an asset to the community.
Now he is being considered for a "Second Amended Agreement" with which you
will increase his annual base salary seventeen percent (17 %), from $145,600.00
to $170,000.00.
Allow me to note four (4) of the accomplishments I feel Mr. Bludau has per-
formed during his brief tenure as a public official and how much of an asset
he has become to others of the City through these accomplishments.
First, he has taken the Harbor Environmental Division, formerly part of the
Fire and Marine Department, under his wing, which has been a relief to the
Fire Chief, Mr. Timothy Riley. (As you know that Division is now called the
Harbor Resources Division under the City Managers Office.)
Second, he has coddled Mr. Tony Melum and Mr. Wes Armand. In my opinion, his
instruction to them on how they can legally withhold requested documents seems
to have helped them to maintain their employment.
Third, he has accepted the questionable and undocumented statements made by
Mr. Melum and Mr. Armand as being totally and completely true.
Fourth, on 2 February 2001, Mr. Bludau stated that insurance coverage for my
use of the City - installed ladder did not exist within the City's insurance
policy. This clearly indicates how much he cares about the City's financial
interests.
I have noted that Mr. Bludau has yet to ridicule or scorn me in public - as
has the members of the City Council. However, I should like to endorse the
proposed increase of $500.00 (totally $1,000.00) towards his annual physical
exam. After all, Mr. Kevin Murphy, former City Manager, resigned because he
developed a healthy conscience and a good heart, so I have been told.
Ver�v tr yours,
Jim Hildreth
i
Wiz.
• •
CITY OF NEWPORT BEACH
March 16, 2002
Mr. Jim Hildreth
120 The Grand Canal
Newport Beach, CA 92662
Mr. Hildreth:
This letter represents the City's response to your Ietter to Mr. Tony Melum of February
26, 2002.
It remains the City's position that we have provided you with all records you have
requested which are available to us.
Sincerely,
�
DAVID A. KIFF
Assistant City Manager
cc: Mayor and City Council
Homer Bludau, City Manager
Tonv Melum, Director of Harbor RecnnrrPa
CITY MANAGM
CITY HALL
3300 Newport Boulevard
P.O. Box 1768
Newport Beach, California 92658 -8915
SERVICE REQUESTED
e . � U.S.G85lAGE
VAR 0 LAN
RCC \ii � z9 MEffP
nW \ CA 6747618
Mr. Jim Hildreth
120 The Grand Canal
Newport Beach, CA 92662
0 0
RESOLUTION NO. 2002-25
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID
TO THE CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the
City Manager during the preceding (12) months;
WHEREAS, an adjustment to the base salary and minor modifications
to other provisions of the current employment agreement are appropriate
given the excellent performance of the City Manager and the compensation
paid to other management employees; and
WHEREAS, the proposed modifications to compensation and benefits
are reflected in the Second Amended Employment Agreement that is
attached to this Resolution as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED by the City of Council of the
City of Newport Beach that the salary and benefits of the City Manager
shall be as specified in Exhibit A and that the Mayor is authorized to
execute Exhibit A on behalf of the City Council.
ADOPTED this 26th day of March 2002.
ATTEST:
LaVonne Harkless
City Clerk
Tod W. Ridgewa7
Mayor
0
E
SECOND AMENDED EMPLOYMENT AGREEMENT
This Second Amended Employment Agreement (Second Amended Agreement),
which is effective as of the 26" day of March 2002, 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 was amended on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the First Amended
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 over the past twelve months and has determined that his
performance warrants an increase in salary and modification of other benefits as
specified in this Second Amended Agreement.
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 Date/Term.
This Second Amended Agreement shall remain in effect until amended by the Parties or
terminated pursuant to Section 4.
SECTION 3. Base Compensation.
City shall pay BLUDAU an annual base salary of $170,000.00, effective December 1,
2001, in twenty-six (26) equal installments paid at the same time other management
employees of the City are paid. This Second 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
0 0
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 BLUDAU'S participation in plans or programs generally described in Section 5
of this Second Amended Agreement.
SECTION 4. Termination and Severance Pay.
A. BLUDAU may terminate this Second Amended Agreement by giving the
City at least forty -five (45) days prior written notice of termination.
B. City may terminate this Second Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at any
regular or special meeting of the City Council. However, consistent with
provisions of the City Charter, this Second Amended Agreement 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 Second Amended Agreement, and any reasons for
termination, if deemed appropriate by the City Council, at least forty -five
(45) days prior to the effective date of termination.
C. In the event this Second Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (112) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Second
Amended Agreement is terminated because of BLUDAU'S criminal
conduct, malfeasance in office, or gross abuse of discretion.
SECTION 5. Employee Benefits.
A. BLUDAU shall accumulate flex leave at the rate of twenty-six (26) days per
year, commencing on the effective date of this Second 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. BLUDAU shall not be entitled to flex
leave spill -over pay and shall not be subject to any flex leave accrual
threshold.
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
mqremp.agt
2
0 0
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 Association 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.
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 $1000.00.
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 Second Amended Agreement and the City
Charter, the City Charter shall prevail.
F. This Second 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 Exaenses.
City shall reimburse BLUDAU for all reasonable business expenses (except automobile
expenses) actually incurred by BLUDAU in the performance of services pursuant to this
Second Amended 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 the City Charter, the Newport Beach Municipal Code and this
Second 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 has loaned BLUDAU the sum of
$50,000 (Loan). The Loan has been, and shall be, used solely to purchase housing in
mgxemp.agt
0 41
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 penalty. BLUDAU shall pay the entire unpaid balance of the Loan
upon the expiration of ten (10) years from the effective date of this Second 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 withhold, from value of any accumulated paid leave
for which BLUDAU would otherwise be paid upon separation, a sum equal to the amount
of the then current unpaid balance. .
SECTION 9. Evaluation.
The City Council shall conduct regular evaluations of BLUDAU's performance during the
term of this Second 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 Second Amended Agreement and /or relevant provisions of the City
Charter or City ordinance.
B. This Second 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 Second 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.
mgcemP.aq[
0 0
D. This Second 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:
Dated:
APPROVED AS TO FORM:
Robert H. Burnham,
CITY ATTORNEY
F:lca haredLAg \CityManager\032602finalk.doc
mgramp.agt
5
Tod Ridgeway
Mayor of Newport Beach
Homer Bludau
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2002 -25 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
26th day of March, 2002, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, O'Neil, Bromberg, Glover, Adams, Mayor Ridgeway
Noes: None
Absent:. Proctor
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 27th day of March, 2002.
(Seal)
City Clerk
Newport Beach, California
CITY OF NEWPORT BEACH
CITY , ^,F.,..__. J4
L tCl2:
Ay*kA Prlki "Uv I00
AGENDA ITEM NO. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mayor John Noyes
DATE: December 12, 2000
SUBJECT: MODIFICATION TO CITY MANAGER'S CONTRACT
The City Manager was recently evaluated and the City Council was generally pleased
with his performance during the past twelve months. In the next year, the City Manager
will be called upon to provide assistance on complex matters such as the proposed
extension of the JWA Settlement Agreement and the proposed annexation of the
Newport Coast, in addition to providing customer service leadership to staff. The City
Council has recently granted pay increases to the City Attorney and City Clerk.
I am proposing that the City Manager's contract be modified to reflect a three percent
(3 %) increase in the current base salary for the position.
I am recommending the City Council approve this amendment by adopting the
Resolution that accompanies this memo.
AntliwK
Jo n oyes, INjayor
City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768
RESOLUTION NO. 2000-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID TO THE CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the City Manager
during the past calendar year; and
WHEREAS, an adjustment to the base salary is appropriate given the
compensation paid to other department directors and the manner in which the City
Manager has performed the duties of that position; and
WHEREAS, the adjustments in compensation for the City Manager that are
authorized by this Resolution are appropriate under the circumstances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach that the Mayor is authorized to execute amendments to the employment
contract (Agreement) between the City and the City Manager consistent with the
following:
The current base salary of the City Manager shall be Increased three
percent (3 %) effective the second pay period in December, 2000.
ADOPTED, this 12th day of December, 2000.
Mayor, City of Newport Beach
ATTEST:
City Clerk
0
RESOLUTION NO. 2000- 100
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
ADJUSTING THE COMPENSATION PAID TO THE CITY MANAGER
WHEREAS, the City Council has evaluated the performance of the City Manager
during the past calendar year; and
WHEREAS, an adjustment to the base salary is appropriate given the
compensation paid to other department directors and the manner in which the City
Manager has performed the duties of that position; and
WHEREAS, the adjustments in compensation for the City Manager that are
authorized by this Resolution are appropriate under the circumstances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach that the Mayor is authorized to execute amendments to the employment
contract (Agreement) between the City and the City Manager consistent with the
following:
The current base salary of the City Manager shall be increased three
percent (3 %) effective the second pay period in December, 2000.
ADOPTED, this 1e day of December, 2000.
ATTEST:
�f , 4ad
City Clerk
Mayor, City of Ne
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, LAVONNE M. HARKI FSS, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2000.100 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the 12th
day of December, 2000, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, O'Neil, Ridgeway, Glover, Bromberg, Proctor, Mayor Adams
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 130' day of December, 2000.
(Seal)
✓}AOL X7L, , y1) - /✓ {i,"/dJ �
City Clerk
Newport Beach, California
0 0
LOAN AGREEMENT
This Loan Agreement (Agreement) between the City of Newport Beach ("City ") and
Homer Bludau ( "BLUDAU "), effective as of March 31, 2000, is made in light of the
following:
RECITALS
A. City and BLUDAU entered into an Amended Employment Agreement
(Amended Agreement) on February 28, 2000 pursuant to which the City modified the
terms and conditions of BLUDAU's employment as the City Manager of the City of
Newport Beach;
B. The Amended Agreement contemplates, among other things, a loan from
the City to BLUDAU to be used exclusively for the purpose of purchasing housing in
Newport Beach.
C. The purpose of this Agreement is to implement the loan contemplated in the
Amended Agreement.
Now, Therefore, the Parties agree as follows:
SECTION 1. Loan to City Manager.
City shall ban BLUDAU the sum of $50,000 (Loan) under the terms and conditions
specified in this Agreement. BLUDAU shall use the loan solely for the purpose of
purchasing housing in Newport Beach.
SECTION 2. Interest.
BLUDAU shall pay simple interest on the unpaid balance of the Loan during
each fiscal year (or portion of any fiscal year) 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.
SECTION 3. Prepayment
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 penalty.
• •
SECTION 4. Payment of Loan
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, whichever occurs first. 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 6. Binding Agreement
This Amended Agreement shall be binding on, and inure to the benefit of, the
heirs, executors, and assigns of BLUDAU.
SECTION 6. Entire Agreement.
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: A'PWL 9;,, 2,uoD
Dated: ZD a o
AS TO FORM:
Robert H. Burnham,
CITY ATTORNEY
mgtemp.agt
Mayor of Newp6rt Beach
%4tw -
omer Blu au
City Manager
AMENDED EMPLOYMENT AGREEMENT
This Amended Employment Agreement (Amended Agreement), which is effective
as of the 28"' 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 Date/Term.
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
0 0
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 6. 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
2
0
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
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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:
/—z d!%
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Dated: .z- 10aD (:)L
Homer Brudau
APPROVED AS TO FORM:
,/Robert H. Bumham,
CITY ATTORNEY
F:lcatl shared \Ag\CityManager1030700final.doc
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C -3a6a-
CITY OF NEWP
APPROVED
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);
2. 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 9 Newport Beach, California 92659 -1768
0 •
AMENDED EMPLOYMENT AGREEMENT
This Amended Employment Agreement (Amended Agreement), which is effective
as of the 28`" 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 Date/Term.
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
0 •
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.
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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
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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
151
John Noyes
Mayor of Newport Beach
•
Dated:
APPROVED AS TO FORM:
Robert H. Burnham,
CITY ATTORNEY
F:\cat\shared\Ag\CityManager1030700final.doc
mgremp. agt
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Homer Bludau
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EMPLOYMENT AGREEMENT
The City of Newport Beach ( "City ") and Homer Bludau ( "BLUDAU ") agree as
follows:
SECTION 1. Emolovment as Citv Manaaer
City shall 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 Date/Term.
This Agreement shall be effective, and BLUDAU shall report to work, on May 3,
1999. This Agreement shall remain in effect unless terminated pursuant to Section 4.
SECTION 3. Base Compensation.
City shall pay BLUDAU an annual base salary of $140,000.00 in twenty-six (26)
equal installments paid at the same time other management employees of the City are
paid. The annual base salary of BLUDAU 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 (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 6 of this
Agreement.
SECTION 4. Termination and Severance Pay.
A. BLUDAU may terminate this 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 Agreement, and any reasons for termination, if appropriate, at
• 0
least forty-five (45) days prior to the effective date of termination.
C. In the event this 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 S. 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 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 receive the same health insurance and retirement benefits
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.
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 Agreement and the City Charter, the City
Charter shall prevail.
F. City shall pay BLUDAU $300 per month as an automobile allowance.
G. This Agreement shall be deemed amended 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
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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 the City
Manager and pursuant to this Agreement.
SECTION 8. Moving Expenses.
City shall pay BLUDAU the sum of $15,000 to assist in relocating to Newport
Beach (relocation assistance). The payment of relocation assistance is in lieu of
reimbursement for specific expenses actually incurred by BLUDAU in moving to Newport
Beach. City shall pay relocation assistance to BLUDAU on the effective date of this
Agreement.
SECTION 9. Housing.
As required by the City Charter, BLUDAU 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 and remain a resident and elector of the City of Newport Beach during the
term of this Agreement.
SECTION 10. Evaluation.
The City Council shall conduct an initial evaluation of BLUDAU's performance
within six (6) months from the effective date of this Agreement. Subsequent to the initial
evaluation, the City Council shall annually evaluate BLUDAU's performance. The City
Council shall, as part of the evaluation, determine if BLUDAU's base salary or benefits
should be modified.
SECTION 11. 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 Agreement and/or relevant provisions of the City Charter or City
ordinance.
B. This Agreement shall be binding on, and inure to the benefit of, the heirs,
executors, and assigns of BLUDAU.
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C. 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 when
properly addressed and deposited in the United States mail, registered or
certified, with postage prepaid and return receipt requested.
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: ���►��"� S /
Dated: g 1f°9,!F
APPROVED AS TO FORM:
Dennis D. O'Neil
Mayor of Newport Beach
MG_ �.,.
obert H. Burnham,
CITY ATTORNEY
F:\cat\shared\Ag\CityManager1030899final.doc
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SIXTH AMENDED EMPLOYMENT AGREEMENT
This Sixth Amended Employment Agreement (Sixth Amended
Agreement), which is effective as of the 1st of September, 2007, 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 City of Newport
Beach (Original Agreement);
B. The Original Agreement was amended first on February 28, 2000 (First
Amended Agreement) and both the Original Agreement and the following
five Amended Agreements 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 over the past twelve months and has determined
that his performance warrants an increase in salary and modification of
other benefits as specified in this Sixth Amended Agreement.
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 specked in
the City Charter and Municipal Code of the City of Newport Beach. BLUDAU
shall also perform other duties 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 cites generally and are performed by management
employees of other municipalities.
SECTION 2 Effective Date/Term
This Sixth Amended Agreement shall take effect September 1, 2007, and
remain in effect until September 1, 2009, or until amended by the Parties or
terminated pursuant to Section 4.
SECTION 3 Base Compensation
City shall pay BLUDAU an annual base salary of $218,338.00, effective
September 1, 2007, in twenty -six (26) equal installments paid at the same time
other management employees of the City are paid. Effective September 1, 2008,
BLUDAU's annual base salary will increase by 4.5% and remain in effect until
this agreement is changed by City Council action. This Sixth 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 sum 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 BLUDAU's participation in plans or programs generally described in
Section 5 of this Sixth Amended Agreement.
SECTION 4 Termination and Severance Pay
A. BLUDAU may terminate this Sixth Amended Agreement by giving the City
at least one hundred and twenty (120) days prior written notice of
termination.
B. City may terminate this Sixth Amended Agreement, without cause, upon
the affirmative votes of a majority of the members of the City Council at
any regular or special meeting of the City Council. However, consistent
with provisions of the City Charter, this Sixth Amended Agreement 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 Sixth Amended Agreement, and any reasons for
termination, if deemed appropriate by the City Council, at least forty -five
(45) days prior to the effective date of termination.
C. In the event this Sixth Amended Agreement is terminated by the City,
BLUDAU shall, as of the effective date of termination, receive severance
pay equal to one -half (112) of his then current annual base salary.
However, BLUDAU shall not be entitled to any severance pay if this Sixth
Amended Agreement is terminated because of BLUDAU's criminal
conduct, malfeasance in office, or gross abuse of discretion.
SECTION 5 Employee Benefits
A. BLUDAU shall continue to accumulate flex leave at the rate of twenty -six
(26) days per year. BLUDAU shall also be entitled to 120 hours of
administrative leave per year. BLUDAU shall not be entitled to any
2
compensation, or compensatory time off, for overtime. BLUDAU shall not
be entitled to flex leave spill -over pay and shall not be subject to any flex
leave accrual threshold.
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.
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 $1,000.00.
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 Sixth Amended Agreement and the City
Charter, the City Charter shall prevail.
F. This Sixth 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
A. Effective January 1, 2008, BLUDAU shall no longer receive a monthly car
allowance of $450 for use of his personal car for City business.
B. City shall reimburse BLUDAU for all reasonable business expenses
actually incurred by BLUDAU in the performance of services pursuant to
this Sixth Amended 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 the City Charter, the Newport Beach
Municipal Code and this Sixth Amended Agreement.
3
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 has loaned
BLUDAU the sum of $50,000 (Loan). The Loan has been, and 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 15" 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 penalty. BLUDAU shall pay the entire unpaid balance of the Loan
upon the expiration of ten (10) years from the effective date of this Sixth
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 withhold, from value of any
accumulated paid leave for which BLUDAU would otherwise be paid upon
separation, a sum equal to the amount of the then current unpaid balance.
SECTION 9 Evaluation
The City Council shall conduct regular evaluations of BLUDAU's
performance during the term of this Sixth Amended Agreement. The City Council
may, as part of the evaluation, discuss if BLUDAU's performance warrants 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
specked in this Sixth Amended Agreement and/or relevant provisions of
the City Charter of City ordinance.
B. This Sixth Amended Agreement shall be binding on, and inure to the
benefit of, the heirs, and assigns of BLUDAU.
C. Any notice required by Amended Agreement shall be in writing and
deemed given delivered (to the City Clerk in the case of the City), or and
4
.• • , .
• •
deposited in the United States mail, postage prepaid and return receipt
requested.
D. This Sixth 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.
1
Dated: `
EatSelich
Mayor of Newport Beach
Dated:
APPROVED AS TO FORM:
Robin Clauson
City Attorney
Homer L. Bludau
City Manager of Newport Beach
La onne Harkless
City Clerk
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CfIY DF NBYYPONT BEIU
CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 2
December 18, 2007
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Council Ad Hoc Compensation Committee
Mayor Ed Selich
Council Member Steve Rosansky
Council Member Don Webb
SUBJECT: Proposed Modifications to City Manager Employment Agreement
RECOMMENDATION:
Approve the Proposed Employment Agreement for the Newport Beach City Manager.
DISCUSSION:
The City Manager has been provided his annual work performance evaluation for 2007,
and has had an opportunity to dialogue with the City Council as to its contents. Both
parties found the process to be both constructive and positive.
In the December 11, 2007, Closed Session the City Council appointed us to be the City
Council's negotiation team with the City Manager to reach mutually acceptable terms
and conditions for a new employment agreement with City Manager Homer Bludau. As
you know, the Brown Act does not allow the City Manager to negotiate salary and
employment conditions with the complete City Council; thus, a committee of less than a
quorum of the City Council serves as the negotiation team.
At the time of this memo, we have not concluded our negotiations with the City
Manager; however, we hope to do so and have a recommendation to you for the
December 18, 2007, Closed Session, so Council action can be completed as part of the
December 18, 2007, Council agenda. The terms and conditions of the employment
agreement would be made public at that time.
Should that not happen, we intend to pull this item from the agenda and continue it until
a future City Counpli meeting, when all discussions are completed.