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.