HomeMy WebLinkAboutCC AG PKT 2011-06-13 #G AGENDA STAFF REPORT
DATE: June 13, 2011
TO: Honorable Mayor and City Council
FROM: Quinn M. Barrow, City Attorney
SUBJECT: CITY MANAGER APPOINTMENT - JILL R. INGRAM
SUMMARY OF REQUEST:
Adopt Resolution No. 6139 appointing Jill R. Ingram as City Manager and
approving that certain employment agreement effective July 1, 2011. Authorize
the Mayor to execute the agreement on behalf of the City.
BACKGROUND AND ANALYSIS:
As the Council is aware, David Carmany resigned as City Manager earlier this
year. After a comprehensive and extensive search, the City Council has made
an offer to Jill Ingram to serve as the City's next City Manager.
Pursuant to direction from the City Council, the City Attorney has prepared a draft
employment agreement incorporating terms and conditions for your
consideration. Attached is a draft employment agreement. Key features of the
draft include:
• Base salary of $190,000
• Three year term
• Holiday, vacation, sick and bereavement leave equal to the benefits
offered to other Seal Beach employees
• 48 hours of administrative leave time per fiscal year
• Potential reduced city contribution to the employee's share of PERS
retirement contribution
• Ms. Ingram may participate in City's group hospital, medical and dental
insurance plan, life insurance and cafeteria plan offered to other Seal
Beach employees
• A monthly automobile allowance of $500
• A $100 per month allowance for mobile phone charges incurred in the
performance of her official City business and duties
• Deferred compensation of $8,000 per year
Agenda Item G
Page 2
• In the event the City terminates the employment without cause, City will
pay up to 6 months base salary, less interim compensation to which she
becomes entitled to during the 6 -month period following her termination
• No severance pay if Ms. Ingram resigns or is terminated for cause.
Ms. Ingram has agreed to accept: reductions to certain benefits received by her
predecessor (e.g., base salary, administrative leave and cell phone allowance); 6
month severance pay instead of 12 months; and a reduction in the City's
contribution to the employee's share of the PERS retirement fund contribution in
an amount to be determined by the Council. Further, the City will not pay her for
an internet allowance or provide her with a laptop.
The draft agreement does not contain what is commonly referred to as a "Me Too
Clause." Typically, a "Me Too Clause" provides that a city will pay a city
manager any additional benefits, including cost of living adjustments ( "COLA ") to
compensation, that are given to other management employees. In the absence
of a "Me Too Clause," Ms. Ingram has to seek an amendment to the agreement if
she wants to receive the same benefits that the City provides to management in
• the future. For example, if the City were to provide a COLA increase to
management in 2012, Ms. Ingram would not receive it without an amendment to
her agreement.
A closed session has been scheduled for 6:00 on June 13, 2011, for the Council
to review the draft terms and conditions and to provide further direction.
FINANCIAL IMPACT:
The costs associated with the agreement have been budgeted.
RECOMMENDATION:
Adopt Resolution No. 6139 appointing Jill R. Ingram as City Manager effective
July 1, 2011.
Attachments:
A. Resolution No. 6139
B. Draft Agreement
RESOLUTION NUMBER 6139
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPOINTING JILL R. INGRAM AS CITY MANAGER AND
APPROVING AN EMPLOYMENT AGREEMENT BETWEEN THE
CITY AND MS INGRAM
THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council hereby appoints Jill R. Ingram as City Manager
and approves that certain employment agreement ( "Agreement ") dated July 1,
2011 between the City and Ms Ingram.
SECTION 2. Pursuant to Seal Beach City Charter § 603, and Gov. Code §
36506 if applicable to charter cities, the City Council hereby establishes the
compensation of the City Manager in the amount set forth in Section 4 of the
Agreement.
SECTION 3. The Mayor shall execute the Agreement on behalf of the City.
SECTION 4. The City Clerk shall certify to the passage and adoption of this
resolution.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a
regular meeting held on the 13th day of June , 2011 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6139 on file in the
office of the City Clerk, passed, approved, and adopted by the City Council at a
regular meeting held on the 13th day of June , 2011.
City Clerk
EMPLOYMENT AGREEMENT
Between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
&
Jill R. Ingram
211- 8th Street
Seal Beach, CA 90740
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RECITALS
A. The City of Seal Beach ( "City ") desires to hire a City Manager and the Seal
Beach Redevelopment Agency ( "Agency ") desires to hire an Executive Director.
B. The City hired Jill Ingram ( "Employee ") on October 2, 2008 as the Assistant to
the City Manager.
C. City and Employee represent that Employee is qualtfied to perform the duties of
City Manager for the City and Executive Director for the Agency.
D. City and Employee wish to enter into an Employment Agreement that sets forth
the rights and obligations of the parties.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
herein contained, City and Employee agree as follows:
1. TERM. Employee shall commence her services on July 1, 2011, which shall also
be deemed the effective date of this Agreement. This Agreement shall expire on June 30, 2014,
subject to Section 8 of this Agreement.
2. DUTIES AND AUTHORITY. Employee shall exercise the powers and perform
the duties of the position of City Manager and Executive Director of the Seal Beach
Redevelopment Agency as set forth in the Charter, City Municipal Code, Agency by -laws,
personnel rules, regulations and procedures and City Manager and Executive Director job
descriptions, as each of them currently or may in the future exist. Employee shall exercise such
other powers and perform such other duties as City, by the City Council, may from time to time
assign.
3. EMPLOYEE'S OBLIGATIONS. Employee shall devote her full energies,
interests, abilities and productive time to the performance of this Agreement, and utilize her best
efforts to promote City's interest. Employee shall not engage in any activity, consulting service
or enterprise, for compensation, or otherwise, which is actually or potentially in conflict with or
inimical to, or which materially interferes, with her duties and responsibilities to City.
4. SALARY. Base Salary. City shall pay Employee an annual base salary of
$190,000. At its sole discretion, the City Council shall consider merit adjustments
commensurate with Employee's performance in accordance with the evaluation process pursuant
to Section 6 of this Agreement. Employee's salary shall be subject to withholding and other
applicable taxes, and shall be pro -rated and paid to Employee at the same time as other
employees of City are paid. Employee shall be exempt from the overtime pay provisions of
California and federal law.
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5. BENEFITS. In addition to base salary, City shall provide to Employee the
following benefits:
A. Holidays. Employee shall be entitled to the holidays generally available to
other exempt employees of City. Employee's salary includes holiday pay. Accordingly,
Employee shall not be entitled to any additional salary or compensation for working on a
holiday.
B. Sick Leave. Employee shall accrue sick leave at the rate of 8 hours of sick
leave per month. The maximum sick leave that can be accumulated is 520 hours. Upon
termination of employment with the City, Employee will be paid for accumulated sick leave
hours at 25% of her base salary hourly rate.
C. Vacation Leave. Employee shall receive vacation leave benefits in the
amount of 136 hours annually (5.23 hours per pay period). Employee shall be entilited to 8
additional hours of vacation leave benefits annually on October 20, 2011, her anniversary date.
On her anniversary date in the following years of this contract, Employee shall be entitled to an
additional 8 hours of vacation leave benefits. Vacation leave shall be scheduled with the City
Council at least two weeks in advance, unless otherwise arranged with the Mayor. Once each
calendar year, Employee may elect to sell back up to 80 hours of accumulated vacation leave
benefits and receive cash compensation therefor at her then existing base salary hourly rate. The
maximum vacation leave that can be accumulates 32,9 hours'` en Employee's accumulated
vacation leave balance reaches the maximum, Employee shall cease earning additional vacation
leave benefits until her accumulated vacation leave balance drops below the maximum
accumulation limit.
D. Administrative Leave. Employee shall be entitled to 48 hours of
administrative leave per fi'scal year. Administrative leave hours may neither be carried forward
to succeeding years nor converted to cash payment.
E. Health Insurance Coverage. Employee shall be provided an opportunity to participate
in City's group hospital medical and dental insurance plan. City shall contribute to the cost of medical coverage for Eployee and her dependents, an amount not to exceed the
California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum
contribution.
F. Cafeteria Plan. Employee shall participate in City's full flex cafeteria
plan. Effective January 1, 2010, City currently provides Employee with a $955 monthly flex
dollar allowance to be used for the purchase of benefits under the full flex cafeteria plan. A
portion of the monthly flex dollar allowance is identified as the City's contribution towards
PEMHCA. Each year, the City shall increase the contribution amount above by the percentage
of increase for basic plans published in the CaIPERS circular letter setting health insurance
premiums for the coverage year. Employee shall be required to pay any premium amounts in
excess of the above City contribution. Such amounts will be deducted from Employee's payroll
check on the first two pay periods of each month.
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G. Automobile.
(1) City shall provide to Employee a monthly automobile allowance of
$500. Such amount is designed to reimburse Employee for all costs associated with the use of
Employee's automobile for City business, including but not limited to all applicable costs of
automobile liability insurance, maintenance, operating expenses, depreciation and interest.
(2) Employee shall maintain all records required by applicable
Califomia and federal law concerning use of such automobile, including without limitation
records to substantiate personal and City- related use of such automobile.
(3) Employee currently has an automobile liability insurance policy
with $250,000/$500,000 /$100,000 maximum coverage, combined single limit coverage against
any injury, death, loss or damage as a result of wrongful or negligent facts arise out of the
operation of the automobile. Unless otherwise required by the City, Employee will maintain a
policy with such coverage and limits throughout the term of this Areement. If City requires
Employee to secure and maintain an insurance policy with greater coverage than said coverage
set forth in the insurance policy currently insuring Employee, and as a resuIt of such
requirement, Employee's premium cost for such policy containing greater coverage is higher
than the premium cost of her insurance policy, City shall pay the difference. Employee shall
name City, and its Council members, officials and employees as additional insured on her policy;
and deliver to City copies of such insurance endb s melts and cart, cate of insurance. Such
insurance policy shall provide that the insurance coverage shall not be canceled, reduced or
otherwise modified by Employee or by Employee's insurance carrier without at least 30 days
prior written notice, served on City personally by said insurance company.
H. Retirement Plan. Employee is required to participate in City's California
Public Employees Retirement System (CalPERS) retirement program and to make an employee
contribution toward the program in the amount of seven percent (7 %) of her compensation
earnable. The City will pay, on behalf of Employee, a portion of the required employee
contribution to CalPERS, as follows, City shall contribute the following amounts toward the
required employee contribution to CaIPERS : ______percent (___ %) of Employee's compensation
earnable in fiscal year 2011 -12 and_____percent (___ %) of Employee's compensation earnable
in fiscal year 2012-13. Thereafter, Employee shall make the entire required employee
contribution to CalPERS.
I. Breavement Leave. Employee shall be eligible for bereavement leave as
generally available to other executive management employees of City.
J. Mobile Phone. City shall provide Employee with a $100 per month
allowance for mobile phone charges incurred in the performance of her official City business and
duties.
K. Life Insurance and Income Continuation Policy. City shall provide
Employee with a term life insurance policy and income continuation policy with the same terms
as generally provided to other executive management employees of City.
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L. Professional Expenses and Dues. Provided the City Council has
previously budgeted for such expenses, City shall pay all reasonable and necessary business
expenses, including dues and subscriptions in local civic organizations, regional organizations,
state organizations and national organizations upon Employee's submittal of invoices in
accordance with City's standard reporting practice.
M. Professional Development. City shall pay all reasonable and necessary
business expenses, including travel, conference, meals, lodging and meeting expenses incurred in
continuing education within the state in accordance with the Municipal Code, as amended from
time to time City Resolutions and state law applicable to charter cities.
N. Reasonable and Necessary Expenses Incurred in the Performance of
Official Duties. Pursuant to the City Charter and AB 1234 if applicable to charter cities, City ss
shall reimburse Employee all reasonable and necessary business expenses, including travel,
conference, meals, lodging and meeting expenses incurred in connection with the performance of
her official duties. Upon prior board approval, the Agency shall pay all reasonable and
necessary business expenses, including travel, conference, meals, lodging and meeting expenses
incurred to attract, maintain and retain development to locate in or relocate to City.
O. Bonding. City shall bear the full costs of any fidelity or other bonds
required of Employee under any law, City Charter provision, City ordinance or Agency
resolution by virtue of her employment as City Manager or Executive Director.
P. Deferred Compensation Plan. Employees shall be entitled to participate in
the City's deferred compensation plan in accordance with the terms and conditions of that plan
as it now exists or as it may be changed from time-to-time in the future. City shall contribute
$307.69 per pay period to the plan on behalf of Employee for a total of $8,000 per year.
Q. . Designation of Recipient Pursuant to Government Code Section 53245.
Employee may file with the City a designation of a person who, notwithstanding any other
provision of law, shall, on the death of Employee, be entitled to receive all warrants or checks
that would have been payable to Employee had she survived. Employee may change the
designation from time to time. Any person so designated shall claim such warrants or checks
from the City. On sufficient proof of identity, the City shall deliver the warrants or checks to the
claimant. A person who receives a warrant or check pursuant to Government Code Section
53245 is entitled to negotiate it as if he or she were the payee.
6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or before
December 15, 2011, arid, thereafter, June 30 of each year, the City Council shall conduct an
evaluation of Employee's performance. During that evaluation, City Council and Employee
shall mutually establish performance goals and objectives to be met by Employee during the
following year. In addition, the City Council shall review Employee's salary and benefits as part
of the evaluation process and may do so at any other time.
7. INDEMNIFICATION. Except as otherwise permitted, provided, limited or
required by law, including without limitation California Government Code Sections 825, 995,
and 995.2 through 995.8, the City will defend and pay any costs and judgments assessed against
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Employee arising out of an act or omission by Employee occurring in the course and scope of
Employee's performance of her duties under this Agreement.
8. TERMINATION.
A. Termination by City without Cause. Employee is employed at the
pleasure of the City Council, and is thus an at -will employee. The City Council may terminate
this Agreement and the employment relationship at any time without cause. Nothing in this
Agreement shall prevent, limit or otherwise interfere with the right of the City to terminate the
employment of Employee. City shall pay Employee for all services through the effective date of
termination. In addition, Employee shall receive severance to the extent provided in Section 9
and shall receive no other compensation or payment.
B. Termination by City with Cause. City may terminate this agreement and
Employee's employment with the City if:
(1) Employee refuses or fails to perform the powers and duties of the
City Manager as specified in Sections 2 and 3 of this Agreement, the City Charter or Municipal
Code or the powers and duties of the Executive Director of the Agency as specified in the Agency By -Laws or any Agency Resolution; � $ � '`•':;: : '�,
(2) Employee has engaged in corrupt or willful misconduct in office,
any illegal act involving personal gain or willful malfeasance constituting grounds for removal
from office due to an indictment of the grand jury; an act of dishonesty; actions that have or
may have a substantial and adverse effect on City's intenterest or is convicted of any felony or any
misdemeanor involving moral turpitude. In no event shall a minor traffic offense or moving
violation be considered a misdemeanor involving moral turpitude. In the event Employee is
under investigation for any of the foregoing reasons City may withhold part or all of any
severance payment, until it is determined if charges will be filed, and if charges are filed, until
final judgmint is rendered. If charges are not filed, or if Employee is found innocent, City shall
pay any severance to which Employee is entitled; or
(3) Employee breaches this Agreement, including, without limitation,
any provision set forth in Section 2 "Duties and Authority," of this Agreement.
C. Termination during First Six Months of Contract. Either party may elect
to terminate this Agreement on or before December 31, 2011 without cause by providing 15 days
prior notice. In that event , City will return Employee to her prior position as Assistant City
Manager, and Employee shall not be entitled to any severance damages. Employee's annual
salary as the Assistant City Manager will be $155,280. City cannot terminate Employee without
cause during the one -year period immediately after the Employee returns to the Assistant City
Manager position.
D. Employee initiated Termination. Employee may terminate this agreement
by providing the City 90 days prior written notice.
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E. City Charter Section 607 and Municipal Code Section 3.15.020.
(1) Prior to City initiated termination, City shall substantially comply
with the provisions in City Charter Section 607 and Municipal Code Section 3.15.020.
(2) Pursuant to Charter Section 607, the City may not terminate
Employee during the 90 -day period immediately after a councilmanic election.
(3) Notwithstanding subsections (1) and (2), City may terminate
Employee if Employee has engaged in corrupt or willful misconduct in office or any illegal act
involving personal gain or is convicted of any felony or any misdemeanor involving moral
turpitude. In such case the effective date of the termination is the date upon which City serves
the notice of termination upon Employee.
9. SEVERANCE. ` `.
A. If City terminates this Agreement (thereby terminating Employee's
employment with City) without cause pursuant to Section 8A, City shall
(1) Pay Employee an amount equal to her then monthly base salary for
a period of 6 months, less interim compensation to which Employee becomes entitled to during
the 6 -month period following her termination. Employee shall use her best efforts and due
diligence to secure employment with, become independent contractor for, or otherwise
provide services for compensation, for, any person, organization or entity, other than City; and
(2) Provide at no cost to Employe the medical and dental insurance
benefits provided by Section 5E herein and the deferred compensation provided by Section 5P
herein for 6 months, or until Employee secures other employment, whichever occurs first.
B. Notwithstanding any other provision or the term of this Agreement, the
maximum severance and health benefits that Employee may receive under this Agreement as a
result of termination, shall not exceed the limitations provided in Government Code §§ 53260–
53264
C. As used in this Agreement, the term "interim compensation" shall include,
but not be limited to compensaton, in any form, to which Employee is entitled from
employment other than employment with City; compensation, in any form, to which Employee is
entitled to as an independent contractor; and compensation, in any form, from any source,
including, without limitation, unemployment and disability insurance, from any person, entity or
source, to which Employee is otherwise entitled. Interim compensation shall not include
retirement benefits or any payment received from the California Joint Powers Insurance
Authority ( "CJPIA "). Upon City's request, Employee shall promptly provide City with
documentary evidence of interim compensation.
D. In addition, City is a member of the CJPIA. The CJPIA provides to its
members an Unemployment Protection Payment, as that term is defined in that certain
Memorandum of Liability Coverage ( "MOLC ") effective July 1, 2010, under which Employee
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can receive up to 6 monthly payments, subject to the terms and conditions set forth in the
MOLC.
E. Employee shall not be entitled to severance pay:
(1) If Employee terminates this Agreement;
(2) Either party terminates this Agreement pursuant to Section 8C; or
(3) If City terminates this Agreement for cause for any of the reasons
set forth in Section 8B.
10. INTEGRATION OF AGREEMENT. This Agreement contains the entire
Agreement between the parties and supersedes all prior oral and written agreements,
understandings, commitments, and practices between the parties concerning Employee's
employment. Each party to this Agreement acknowledges that no representations, inducements,
promises or agreements, oral or written, have been made by any party or anyone acting on
behalf of any party, which are not embodied herein, and that no others agreement,statement, or
promise not contained in this Agreement shall be valid or binding on either party.
11. METHOD OF AMENDMENT. Amendments to this Agreement are effective
only upon City Council and Employee written approval.
12. NOTICES. All notices pertaining to this Agreement shall be sent to:
EMPLOYEE: Jill Ingram
City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
CITY: City Clerk
City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
Such notice shall be deemd made when personally delivered, transmitted by facsimile,
or when mailed, 48 hours after deposit in the U.S. Mail, first class postage prepaid and addressed
to the party at its applicabe address. Actual notice shall be deemed adequate notice on the date
actual notice occurred regardless of the method of service.
13. GENERAL PROVISIONS. •
A. If any provision of this Agreement is held invalid or unenforceable, the
remainder of this Agreement shall nevertheless remain in full force and effect. If any provision
is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless
remain in full force and effect in all other circumstances.
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B. This Agreement shall be interpreted and construed pursuant to and in
accordance with the City Charter, applicable laws of the State of California and all applicable
City Codes, Ordinances and Resolutions.
Executed by the parties as of the date below at Seal Beach, California.
City of Seal Beach EMPLOYEE
By: .. ��
Mayor iz. z' ,,
q .,, b..* N
Date: ` .`\ � �`. .. J
ATTEST: A P ` R R O V E D A S
4.. \\''''''*,
City Clerk `,. \ N G A ttorney
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