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HomeMy WebLinkAbout2002-11-12 - AGENDA REPORTS - CITY MANAGER CONTR (2)CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS DATE: November 12, 2002 City Manager Approval: Item to be presented by:. Frank Ferry SUBJECT: APPROVAL OF CITY MANAGER CONTRACT DEPARTMENT: City Manager's Office RECOMMENDED ACTION City Council review and approve City Manager contract. BACKGROUND As announced at the November 5, 2002 special meeting of the City Council, by unanimous vote of the Council in closed session, Ken Pulskamp was appointed to the position of City Manager. A proposed contract between the City and Mr. Pulskamp is presented for consideration and approval by the City Council. Additional information requested by the Council is attached showing a comparison chart of City Manager compensation package in like -sized cities, as well as a comparison between the compensation for the City's previous City. Manager, George Caravalho, and the current City Manager, Ben Pulskamp. ALTERNATIVE ACTIONS Other action as determined by the. City Council. FISCA�ACT None by this action. ATTACHMENTS Proposed Contract ` Comparison Chart: City Manager Compensation in Like -Sized Cities Comparison Chart: Caravalho/Pulskamp \ agnrpt \ CMcontract. doc RS !7 pppj Agenda Item: �� CITY MANAGER EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this day of 2002, by and between the City of Santa Clarita, a Municipal corporation (hereinafter called "the Employer"), and Kenneth R. Pulskamp (hereinafter called "the Employee"), both of whom understand as follows: WHEREAS, the governing body of the City of Santa Clarita (hereinafter called "the City Council"), desires to retain the services of the Employee as City Manager, as that office is created in Chapter 2.08 of the Municipal Code of the City of Santa Clarita; and WHEREAS, it is the desire of the City Council to provide certain benefits and establish certain terms and conditions of employment, as set forth herein. NOW, THEREFORE, in consideration of mutual covenants herein contained, the parties agree as follows: Section 1. Duties, The City Council hereby agrees to employ the Employee as City Manager of the City of Santa Clarita, to perform the functions and duties of the City Manager as specified in Chapter 2.08 of the Santa Clarita Municipal Code, and to perform other legally permissible and proper duties and functions consistent with the office of the City Manager, as the City council shall from time to time assign. Section 2. Term. A. The term of this Agreement shall be indefinite but subject to the termination provisions set forth in paragraphs B. and C. of this section. During the term of this Agreement, the LA #103845 v1 -1- Employee shall be a full-time City Manager. The Employee shall be permitted to engage in teaching, at the Employee's sole expense, for not to exceed six (6) hours per week maximum, and only to the extent and manner to assure that such activities do not, in the City Council's opinion, interfere with the Employee's performance as a -full-time City Manager. B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the services of the Employee, subject to the conditions of this Agreement, at any time, at the sole discretion of the City Council, as provided in Section 2.08.100 of the Municipal Code of the City of Santa Clarita. C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with the Employer. The Employee shall give forty-five (45) days written notice to the Employer prior to the effective date of resignation, or such lessor period as may be agreed upon by Employer and Employee. Section 3. Salary. The Employer agrees to Pay the Employee for services rendered, as provided herein, One Hundred Seventy Five Thousand Dollars ($175,000) per year, payable in installments at the same time and in the same manner as other employees of the City are paid. In addition, the Employer agrees to adjust the salary base or other benefits of the Employee, or both the salary base and benefits of the Employee, in such amounts made at the same time and in the same manner as consideration is given to other management employees with the City. Council to consider increases to salary annually during Employee's evaluation. LA #103845 vi -2- Section 4. Deferred Compensation. The Employer agrees to continue a deferred compensation program for the Employee and deposit a monthly sum equivalent to the maximum amount permissible under U.S. Internal Revenue Service Rules & Regulations, currently nine hundred sixteen and 66/100 ($916.66) dollars per month toward this program. The amount of this benefit will adjust automatically consistent with amendments to the Deferred Compensation Rules & Regulations of the U.S. Internal Revenue Service. Section 5. Pension. The Employer agrees to continue the Employee as a member of the Public Employee Retirement System (PERS) and will pay for the Employee's portion of the contribution (7%) into the System. Section 6. Health Insurance. The Employer agrees to provide the Employee with the same health, dental and optical insurance coverage as is provided other management employees of the City. Section 7. Long -Term Disability Insurance. The Employer agrees to provide the Employee with a long- term disability program that is mutually acceptable to both the City Council and the Employee, with coverage generally as follows: (a) Each disability: 66-2/3% of salary; (b) Thirty (30) day waiting period. Section 8. Life Insurance. The Employer agrees to pay up to $2,400.00 annually for a life insurance policy of the Employee's choice on the Employee's LA #103845 vi -3- life. The Employer also agrees to provide the Employee with the term life insurance equal to twice the Employee's annual salary. Section 9. Physical Examination & Executive Wellness. The Employer shall bi-annually provide the Employee with a Physical examination by a qualified physician. Such physical examination shall include the treadmill cardiovascular evaluation. Employee may continue in the City's Executive Wellness Program whereby Employer pays to Employee $1,000 annually to be used by Employee for purchase of health benefit activities and equipment. Section 10. Automobile. The Employee's duties require the exclusive and unrestricted use at all times during the duration of this Agreement of an automobile provided by the Employer. The Employer shall be responsible for paying liability, property damage, and comprehensive insurance for the purchase, operation, maintenance, repair and replacement of such an automobile. Section 11, Expense. A. The Employer agrees to budget and to pay the professional dues and subscriptions on behalf of the Employee which are reasonably necessary for the Employee's continuation and full participation in two (2) national, regional, state, or local associations and organizations necessary and desirable for the Employee's continued professional participation, growth and advancement, or for the good of the City. In addition, the Employer agrees to pay a maximum of $1,000 per calendar year toward the Employee's participation in local service organizations. Furthermore, the Employer shall budget and pay for the professional dues and subscriptions to such additional organizations as approved by the City Council. LA #103845 vi -4- B. The Employer agrees to budget and to pay the travel and subsistence expenses of the Employee for official travel, meetings, and occasions reasonably adequate to continue the professional development of the Employee and reasonably pursue necessary official and other functions for the City, including, but not limited to, national, regional, state, and local conferences, governmental groups and committees upon which the Employee serves as a member. Section 12. Vacation and Sick Leave. A. The Employee currently has accrued paid vacation leave at the date of the commencement of employment as City Manager and shall accrue twenty (20) days vacation each subsequent year thereafter, in addition to recognized City holidays. Unused vacation in excess of three times the annual rate of accrual shall be paid as additional compensation at the end of each fiscal year. B. The Employee currently has accrued sick leave on the date of the commencement of employment as City Manager and annually shall continue to accrue at a rate of twelve (12) days each subsequent year thereafter. Upon termination of employment, either voluntary or involuntary, employee shall not be entitled to compensation for unused sick leave. Section 13. Administrative Leave. The Employer agrees to provide the Employee with fifteen (15) days of annual administrative leave. LA #103845 vi -5- Section 14. Termination and Severance Pay. A. In the event the Employee is terminated pursuant to Section 2.08.100 of the Municipal Code of the City of Santa Clarita during the term of this Agreement, and during such time as the Employee is willing and able to perform duties under this Agreement, the Employee shall be entitled to a cash payment of compensation equal to the salary specified in Section 3, and health benefits specified in Section 6 due for a period of fourteen (14) months following the effective date of the termination. In addition one (1) additional month of salary would be added to the severance package for each year of service up to a maximum of eighteen (18) months of severance. The year of service will be calculated from July 25, 2002, which is in recognition of Employee's original hire date with the City and his long term service to the City. B. If at any time during the term of this Agreement the City Council reduces the salary or other financial benefits of the Employee in greater percentage than an applicable across- the-board reduction to all City employees, or the City Council refuses, following written notice, to comply with any provision of this Agreement benefiting the Employee, or the Employee resigns at the request of a majority of the members of the City Council, the Employee may, at his option, be deemed terminated and entitled to severance pay as provided in Section 14A. Section 15. Election Protection. The City Council agrees to not terminate the Employee during any ninety (90) calendar day period after a City Council election without the payment of additional severance allowance. This additional severance allowance will offer new City Council members an opportunity to work with and observe the Employee prior to taking any action. If the City Council does terminate LA #103845 v1 -6- the Employee within ninety (90) days, after a City Council election, the Employee shall he entitled to a severance pay of ninety (90) calendar days in addition to the severance pay allowed by Section 14 of this Agreement, subject to the limitations of Section 53260 of the Government Code. Section 16. Performance Evaluation. A. Annually, the City Council and the Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the City in the attainment of the City Council's policy objectives, and the City Council and the Employee shall further establish a relative priority among those various goals and objectives to be reduced to writing. This evaluation shall be obtainable generally within the time limits as specified in the annual operating and capital budgets and appropriations provided. B. The City Council shall review and evaluate the performance of the Employee at least once annually. The annual review and evaluation shall be in accordance with specific criteria developed jointly by the City Council and the Employee. Such criteria may be added to or deleted as the City council may from time to time determine in consultation with the Employee. The method of evaluation shall be at the discretion of the Council. C. In recognition of accomplishments of objectives and excellent performance, a merit increase may be granted to the Employee. D. In giving effect to the provisions of this section, the City Council and the Employee mutually agree to abide by all provisions of applicable law. LA #103843 vi -7- Section 17. Other Terms and Conditions of Employment. A. The City Council, in consultation with the Employee, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the Employee, provided such other terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, any ordinance or resolution of the City, or any other applicable law. B. Fringe benefits and working conditions applicable generally to management employees of the Employer, as such rules now exist or hereinafter may be amended, shall also apply to the Employee, except where such fringe benefits and working conditions are contained within this Agreement or are inconsistent with the terms contained herein. Section 18. General Provisions. A. The text herein shall constitute the entire Agreement between the parties as to the subject matter hereof. B. This Agreement shall be binding upon, and inure, where applicable, to the benefit of the heirs at law and executor of the Employee. C. If any provision or any portion hereof is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion hereof shall be deemed severable, shall not be affected, and shall remain in full force and effect. D. This Agreement may be amended only in writing. Section 19. Notices. LA #103845 v1 Notices pursuant to this Agreement shall be given by depositing such notice in the custody of the United States Postal service, postage prepaid, address as follows: City Council City of Santa Clarita 23920 Valencia Blvd., #300 Santa Clarita, CA 91355 -OR- Kenneth R. Pulskamp 26063 Tampico Dr. Santa Clarita, CA 91355 Alternatively, any notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice at the date such notice is given. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States postal service. Section 20. Cancel Prior Agreement. This Agreement cancels and supercedes any and all prior employment agreements between the Employee and the Employer. LA #103845 vl -9- IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. DATED: 2002 Kenneth R. Pulskamp DATED: 2002 CITY OF SANTA CLARITA, a General Law City By Mayor ATTEST By City Clerk APPROVED AS TO FORM: City Attorney LA #103845 vi -10- W N 04 W N F V N N 0 N OyN HOv- y dS m, 00 �o L" o r a t t0 m\ OJ o aV+ 1 O N NW E O E %p t� 2 x y 1 T m 45 Lo QJ �w ,. OD N C v a H 0 to C m � 5. N o v.E 0 vr� m Bo v 5 r N 000 .; + C T C 00 \ �Y V.... E,. m r... o Z 7 T m O e Y o A..a., a. .fl. ° IR m k m 8 G 39+ > Y 01 L m .5 12 'co ti m c cum N 0:: fHLnQ a + L yy' m �N o 0 0 Y i N C) �' O m 12 C i U O C C. p ?e c iA- M m.O� d' 0 T 10 - 1 y 02, co > CDE Ln O Q E C n R t Ln O E m V c o 10 0 \ to Ln m Ln V O N N i7 E v � O m Ofop O M o �i i y Mm EY o E �D V Z t o e i go, y �, c$ aj CITY MANAGER COMPARISON CHART NOVEMBER 7, 2002 * Based on previous IRS maximum. This amount changed on 01/01/02 to $11,000/year maximum. This amount will increase by $1,000/year to a maximum of $15,000/year. m May be max of 27 months - unclear due to contract ambiguity. GEORGE CARAVALHO KEN PULSKAMP Benefit Type Salary 01/2000 05/2002 $165,272.85 / year $175,416.54 / year Y As Interim $165,000 /year 11/2002 Proposed Deferred $7,500 / year $8,000 / year* $8,000 /year* $175,000 /year $11 000 / ear Com ($625/mo) ($667/mo) ($667/mo) Y ($916.66/mo) Retirement PERS —same as all other City employees PERS same as all other Cit7ie employees Life $2,400 / year $2,400 /year 1x anarypremi$2,40um. yr Insurance remix P premium samemium. Term life Cityurance at 2x Physic Y Bi -annual nual salary Exam annual Auto ♦ City provided including all insurance, mere air maintenance and re lacement. Expenses ♦ Professional dues and subscriptions forme two associations. ♦ $1,000/year for participation in local service org., plus other associations a roved b U -04-0--n Travel Travel and subsistence for official travel and Same Same meetin for rofessional develo ment. Vacation & Vac. 20 days/ year Same Same Same Sick Leave Sick 12 days / year Admin. Leave Severance 15 days per year 'months 12 days / year 15 days /year 24 — 36 14 months, one additional month per year of service up to a maximum Election 90 da s if durin 90 da Y g y period following of 18 months. Protection City Council election. Same Performance Annual. Merit increase may be granted. Same Evaluations Other Other benefits and working conditions for management employees applicable to City Same Manager. * Based on previous IRS maximum. This amount changed on 01/01/02 to $11,000/year maximum. This amount will increase by $1,000/year to a maximum of $15,000/year. m May be max of 27 months - unclear due to contract ambiguity.