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AGENDA STAFF REPORTW 1
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DATE: October 24, 2017
TO: Honorable Mayor and City Council
FROM: Craig A. Steele, City Attorney
SUBJECT: THIRD AMENDMENT TO CITY MANAGER'S EMPLOYMENT
AGREEMENT
SUMMARY OF REQUEST:
That the City Council approve Resolution 6771, Amendment Number 3 to the
City Manager's Employment Agreement.
BACKGROUND AND ANALYSIS:
City Manager Jill Ingram is employed by the City under an employment
agreement executed as of July 1, 2013 and amended on August 11, 2014 and
January 1, 2016. Pursuant to the terms of that agreement, the City Council
recently conducted and completed a performance evaluation of Ms. Ingram. At
the conclusion of that evaluation, the City Council directed the City Attorney to
prepare a third amendment to the employment agreement so that the City
Council could consider whether to increase Ms. Ingram's compensation in an
open and public meeting.
The proposed amendment would change Ms. Ingram's existing agreement in
three ways:
1. Increase Ms. Ingram's annual base salary to $230,604.41
retroactive to January 1, 2017, which is a 3.5% increase over the current base
salary of $222,806.19.
2. Increase the City's contribution to Ms. Ingram's deferred
compensation program by $3,500 per year to $17,000.00 per year effective
July 1, 2017, which remains below the IRS limit for such contributions.
3. Provide for reimbursement of the costs of an annual medical
maintenance exanimation and /or Wellness Program in an amount not to exceed
$850.00 annually, which is the same benefit the City Council has provided to
other executive managers.
4. Change the existing 25% on "cash out" for accrued but unused sick
pay at the termination of employment to allow for an additional 25% of accrued
Agenda Item G
but unused sick leave pay to be deposited directly into a Retiree Health Savings
Account to be established for the benefit of the employee if that employee is not
eligible for City Retiree Health Benefits, which is the same benefit the City
Council has provided to the other executive managers.
ENVIRONMENTAL IMPACT:
There is no environmental impact associated with this item.
LEGAL ANALYSIS:
The City Attorney has prepared the amendment and approved as to form.
FINANCIAL IMPACT:
The direct cost of the proposed increases is approximately $7,800 per year for
salary, $3,500 per year for deferred compensation payments, and $850 for the
Wellness program. The FY2017 -2018 adopted budget included a 2.7% salary
adjustment for all City positions. For the City Manager position approximately
$6,000 was budgeted. The remainder of the proposed increases related to the
changes in the City Manager's contract will be paid from budgetary savings.
Future budgetary impacts will occur for the Retiree Health Savings account which
will be off -set by a reduction in the Compensated Absences balance.
RECOMMENDATION:
That the City Council approve Resolution 6771, Amendment Number 3 to the
City Manager's Employment Agreement.
SUBMITTED BY:
Ci a% 4 A. Steele
Craig A. Steele
City Attorney
Attachments:
A — Resolution 6771
B — Amendment No. 3 to Amended and Restated Employment Agreement
Page 2
Attachment "A"
RESOLUTION NUMBER 6771
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AMENDMENT NUMBER 3 TO THE EMPLOYMENT
AGREEMENT FOR THE SEAL BEACH CITY MANAGER AND
CLERK AND AUTHORIZING THE* MAYOR TO EXECUTE THE
AGREEMENT
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves Amendment 3 to the
Employment Agreement between the City and City Manager Jill Ingram in the
form attached to this Resolution.
SECTION 2. The City Council hereby authorizes and directs the Mayor to
execute the agreement on behalf of the City.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 23d day of October, 2017 by the following vote:
AYES: Council Members:
NOES: Council Me
ABSENT: Council Me
ABSTAIN: Council Members:
ATTEST:
Robin Roberts, City Clerk
APPROVED AS TO FORM:
Craig Steele, City Attorney
Sandra Massa - Lavitt, Mayor
Resolution Number 6771
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that
the foregoing resolution is the original copy of Resolution Number 6771 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on October 23, 2017.
Robin L. Roberts, MMC, City Clerk
Attachment "B"
AMENDMENT NO. 3 TO AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
between
City of Seal Beach
211 8th Street
Seal Beach, CA 90740
9
Jill R. Ingram
211 8th Street
Seal Beach, CA 90740
This Amendment No. 3 shall amend that certain Amended and Restated Employment
Agreement dated July 1, 2013, as amended ( "Agreement'), between the City of Seal
Beach, a California charter city ( "City") and Jill R. Ingram, an individual ( "Employee ").
1
RECITALS
A. City and Employee are parties to the Agreement, pursuant to which
Employee serves as City Manager for City.
B. City and Employee wish to amend the Agreement as provided herein, to
be effective as of November 1, 2017.
AMENDMENT
NOW, THEREFORE and in consideration of the foregoing, and of the mutual
covenants and promises herein set forth, the parties agree to amend the Agreement as
follows:
Section 1. Section 4 of the Agreement is hereby amended to read as follows
(text to be added is underscored; text to be deleted is stw& thmugh):
'A. BASE SALARY. City shall pay Employee an annual base salary of
$222,806.19
� 230,604.41, to be paid effective as of January 1, 2017. 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."
Section 2. Section 8, Paragraph P of the Agreement is hereby amended to
read as follows:
"P. Deferred Compensation Plan. Employee 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 $619.23 $653.85 per pay period to the plan on behalf of Employee for a
total of $13,600.00 $17,000 per year, to be paid effective as of July 1, 2017."
Section 3. Section 5.R is hereby ADDED to the Agreement to read as
follows:
"R. Medical Maintenance Examination/Wellness Program. The City shall
reimburse Employee, as a medical benefit, for Employee's actual documented
expenses for medical maintenance exams or the cost of participation in wellness
programs, in an amount not to exceed $850 per fiscal year, subject to the City's normal
reimbursement policies. Reimbursable expenses may include, but not be limited to,
actual out of pocket expenses for annual physical examinations or other medical tests
or examinations, participation in weight loss, stop smoking, fitness or other similar
programs, or membership in a health or fitness club."
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Section 4. Section 5.6 is hereby amended to read as follows (text added is
underlined):
"2. 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. Sick leave
accrual balance will be paid to Employee upon termination at 25% of her base rate of
pay in cash and, if Employee is not Eligible for Retiree Health Benefits as provided in
this Agreement and the City's Personnel Rules, an additional 25% of the accrual
balance shall be deposited by the City into a Retiree Health Savings Account to be
established for the benefit of the Employee.'
All other terms and provisions of the Agreement shall remain in full force and
eff ect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3
to be executed and attested, and incorporated into the Agreement:
CITY OF SEAL BEACH
Sandra Massa - Lavitt, Mayor
Attest:
By:
Robin L. Roberts, MMC, City Clerk
Approved as to Form:
e�
Craig A. Steele, City Attorney
3
EMPLOYEE
A
Jill R. Ingram