HomeMy WebLinkAbout12 - City Manager Employment Agreement and Recruitment of New City Manager - Council CommentsApril 10, 2018
Item No. 12
April 10th Council Meeting
Councilman Herdman's Comments on Agenda Item No. 12
1. First, I am concerned about the item placed on the Council agenda tonight dealing
with the termination of our city manger's employment that was never discussed
with, or authorized by the entire council. There are three council members who
were left completely out of the process from the very beginning, The amendment
to the city manager's contract was never authorized by the entire council. I
recognize that even if the entire council had been involved in this process, the
council majority would have had the votes to initiate the termination of our city
manager's employment. Nevertheless, City Charter and Council policy have been
violated by not involving the entire council.
And let it be understood that in no way is the termination of our city manger's
employment justified from a performance standpoint. Our city manager's annual
reviews reflect year after year of outstanding performance.
2. Second, I am concerned about my ability to vote on a motion to approve the city
manger's sixth amended contract that was not authorized by the entire council.
How can I vote on an unauthorized action by the council majority without violating
council policy and the city charter myself??
3. Third, we have a city charter that was approved by the voters, and has been in
place since 1955. The action taken by the council majority departs from 63 years
of policy implementation and past practice. The entire City Council, per the
charter, had a right to participate in this entire process. I am concerned about the
damage that this action has had in the confidence and trust that the community
has in this body going forward.
4. My fourth concern has to do with action that the council majority took to revise
council policy A-1. An ad hoc committee of three was appointed by then mayor,
Kevin Muldoon, to take a look at all council policies for possible update and
revision. This is an annual task that is to be completed by the council. A revised
policy A-1 was presented to the council for approval after the ad hoc committee
completed their work. We were given the revised policy just a few days before the
revision item was agendized for approval. Not near enough time was provided for
council members who were not part of the ad hoc committee to study the changes
before being asked to approve the revisions. We were told that the changes were
just "clean up" items when in reality the revisions made to this policy literally
amended our form of government and governance without any explanation to
the entire council or the public. I am convinced that this was an intentional move
by the council majority to facilitate the action that they are taking
tonight in terminating our city manager's employment. (over)
Remarks, continued.......
5. My fifth concern are words like "mutually agreed upon", and "Final Compensation
Payment" in lieu of "severance" in the sixth amended contract. These terms simply
do not express the truth in relation to the circumstances behind the termination of
our city manager. Once again, the public is misled, and clearly points to the lack of
transparency in this process.
6. My sixth concern is the cost to taxpayers that this amended contract represents.
Our city manger will continue to earn his base salary of $265,00 per annum, and as
a condition of his termination will receive a negotiated Final Compensation
Payment of $84,0000, and a one-time $20,000 contribution made to the city
manager's deferred compensation account. An additional $5,000 in legal fees is
also be paid for the negotiation of the amended sixth contract. The total cost
of this termination package adds up to over $200,000 of taxpayer money.
7. Seventh, the council is now faced with the task of selecting a new city manager.
This process going forward needs to be fair, open and transparent. and based on a
consensus decision reached by the entire council. The hiring process needs to
involve a professional recruitment firm, as well as public input, and the final
selection must be based on the council having reached consensus.
There is action being taken here tonight that steps away from past practice, from 63
years of well-defined procedural policy;
action that will change the direction of this city, as well as its rich history. For these
reasons I will not support any action tonight that terminates our city manager's
employment. He should be allowed to work out his present contract with dignity and
the respect he deserves, and exercise his right and privilege to retire at his own
choosing. A city manager of Mr. Kiff's caliber should not be forced to speed up his
retirement.
April 10, 2018
Item No. 12
CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION
WITHOUT CAUSE
AS TOLD BY MR. KIFF TO COUNCILMEMBER
DIANE DIXON APRIL 9, 2018
Prior "hints and directives" in public regarding City Manager Kiff:
o 2015: Duffield: "We have Kiff where we want him. We want to get rid
of him." Stated to several people in the community and reported back
to Kiff.
o 2016: "Give him a gold watch and move on" — Duffy and Peotter to
Herdman; reported in column in Daily Pilot
o 2016: Duffield in dinner conversation: "Dave will be fired and given
gold watch and patted on the back and retired." Reported to Kiff by
mutual friend.
o 2016-17 Peotter recommends to Dave Kiff Mark Denny, assistant City
Manager of Dana Point, to come in as Kiff's successor
4/10/2018 9:25 AM 1
CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION
WITHOUT CAUSE
AS TOLD BY MR. KIFF TO COUNCILMEMBER
DIANE DIXON APRIL 9, 2018
February 12, 2018: Mayor Duffield and Mayor pro tem O'Neill meet with Kiff
at regular Monday agenda review meeting (City Attorney Harp was dismissed):
o Duffield, O'Neill: We want to talk some serious business with you
about speeding up your retirement.
o Kiff: I was planning to retire after the November election, as the timing
might allow for better candidates to apply."
o Duffield: That makes sense.
o O'Neill: No. Shaking head.
o O'Neill: We want this change during summertime. We will make sure
you are whole. We will have time to celebrate your career.
4/10/2018 9:25 iaM2
CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION
WITHOUT CAUSE
AS TOLD BY MR. KIFF TO COUNCILMEMBER
DIANE DIXON APRIL 9, 2018
o You will be on the books until December 31 but you would leave in the
summer when a replacement is hired. Think about this and get back to
us Friday (February 16) with your terms.
Friday February 16: Kiff presented his terms:
o Amicable transition; stay until age 54 (November 2018), city -paid
attorney;
o $20,000 in retiree medical /or paid into deferred compensation
account
Subsequently, Kiff's lawyer and the City's outside counsel negotiated terms
resulting in Kiff's retirement effective August 31, 2018 with contract ending
December 31, 2018.
4/10/2018 9:25 AM3