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HomeMy WebLinkAboutAGENDA REPORT 2019 0605 REG CCSA ITEM 09ECITY OF MOORPARK, 
 CALIFORNIA City Council Meeting of June 5, 2019 ACTION The Mayor gave the Oral Summary. Approved Staff Recommendation, Including Adoption of Resolution No. 2019-3817. (ROLL CALL VOTE: UNANIMOUS). BY B. Garza. E.Consider Resolution Approving Amendment No. 2 to Employment Agreement between City of Moorpark and Troy Brown for the Position of City Manager. Staff Recommendation: 1) Prior to a motion to adopt the attached Resolution approving Amendment No. 2 to the Employment Agreement between the City of Moorpark and Troy Brown, the Mayor shall make an oral summary report for compliance with Section 54953(c)(3) of the Government Code as follows: “Staff is recommending the City Council approve Amendment No. 2 to the Employment Agreement between the City and Troy Brown for the position of City Manager. Following is a summary of the Salary, Benefits, and Severance provisions of the Employment Agreement that are proposed to be increased with the adoption of Agreement No. 2: •Effective with the pay period beginning on June 8, 2019, Mr. Brown will receive a 5% merit raise, which will increase his hourly rate to $106.30, which is an annual base salary of $221,104. •Effective with the first full pay period in the new fiscal year 2019-2020, beginning on July 6, 2019, Mr. Brown will receive the same 1% cost-of-living allowance granted to all of the other City employees. This will result in an increase to his hourly rate to $107.36, which is an annual base salary of $223,308.80. •Effective with the pay period beginning on July 6, 2019, Mr. Brown’s deferred compensation contribution made by the City will increase from 3% to 4% of gross base salary. The estimated 4% deferred compensation payment per pay period after applying the 5% merit raise and the 1% cost-of-living increase would be $343.36 per pay period. •The severance benefit in Section 7 of the Employment Agreement will be revised upon the effective date of Amendment No. 2 from a lump sum severance benefit in an amount equal to six (6) months of his then applicable base salary if terminated (without cause) to an amount equal to nine (9) months of his then applicable base salary if terminated (without cause). •The City Manager’s medical insurance benefit has not been increased; however, disclosure is given that the City has budgeted for a 10% increase in the cost of medical insurance for all employees in the draft Budget for Fiscal Year 2019-2020 and the actual cost may be higher upon CalPERS adoption of the final rates for 2020”; and 2)Adopt Resolution No. 2019-3817 approving Amendment No. 2. ROLL CALL VOTE (Staff: Deborah Traffenstedt) Item: 9.E. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Deborah Traffenstedt, Assistant City Manager Kevin Ennis City Attorney DATE: 06/06/2019 Regular Meeting SUBJECT: Consider Adoption of a Resolution Approving Amendment No. 2 to the Employment Agreement between the City of Moorpark and Troy Brown to the Position of City Manager BACKGROUND Employment terms between the City of Moorpark and the current City Manager, Troy Brown, are set forth in an Employment Agreement. Attachment 1 to this report is a copy of the initial Employment Agreement for Mr. Brown’s employment as City Manager, with an effective date of March 3, 2018. Amendment No. 1 to the Employment Agreement is included as Attachment 2 to this report for information purposes, and was executed on May 3, 2018. Amendment No. 1 clarified and amended Relocation/Temporary Housing/Travel Expenses reimbursement language in the Employment Agreement. All of the relocation, temporary housing, and travel expenses were paid within the first six months of employment following the effective date of the Employment Agreement. The draft resolution for approval of Amendment No. 2 to the Employment Agreement (which resolution includes the draft of the proposed Amendment No. 2) is included as Attachment 3 to this agenda report. Amendment No. 2 will change some of the Salary, Benefits, and Severance provisions of Mr. Brown’s Employment Agreement. In Amendment No. 2, all of the compensation and benefits language that is specific to the City Manager’s employment will be incorporated into the Employment Agreement and deleted from the Management Benefits Resolution, and an update of the Management Benefits Resolution, which includes the deletion of the specific City Manager benefits language, is a separate agenda item for the June 5, 2019 regular meeting. Item: 9.E. 224 Honorable City Council 06/05/2019 Regular Meeting Page 2 DISCUSSION Following is a summary of the increased salary, benefits, and severance provisions of Mr. Brown’s Employment Agreement that are incorporated into Amendment No. 2 to the Agreement (benefit language that is being simply transferred from the Management Benefits Resolution to the Employment Agreement, and not increased, is not discussed in detail in the following summary): Base Salary. Mr. Brown’s initial Employment Agreement has an annual salary amount of $206,336. A cost-of-living increase of 2% was approved by a Salary Plan Resolution update on June 20, 2018 for all employees, which increased Mr. Brown’s hourly rate to $101.18, which is an annual salary of $210,454.40. Amendment No. 2 increases the Base Salary for Mr. Brown as follows: • Effective with the pay period beginning on June 8, 2019, Mr. Brown will receive a 5% merit raise, which will increase his hourly rate to $106.30, which is an annual base salary of $221,104. • Effective with the first full pay period in the new Fiscal Year 2019-2020, beginning on July 6, 2019, Mr. Brown will receive the same 1% cost-of-living allowance granted to all other City employees. This will result in an increase to his hourly rate to $107.36, which is an annual base salary of $223,308.80. Fringe Benefit Package. The majority of the benefit language changes inserted into Amendment No. 2 to the Employment Agreement are as a result of removing benefit language specific to the City Manager from the City’s Management Benefits Resolution, and then adding this benefit language into the Employment Agreement. The deletions of the City Manager benefit language from the Management Benefits Resolution can be seen with the use of legislative format in the separate agenda item updating the Management Benefits Resolution for the June 5, 2019 regular meeting. A benefit that is described as being increased with Amendment No. 2 is the deferred compensation payment by the City. With Amendment No. 2, effective with the pay period beginning on July 6, 2019, Mr. Brown’s deferred compensation contribution made by the City will increase from 3% to 4% of gross base salary. The estimated 4% deferred compensation payment per pay period after applying the 5% merit raise and the 1% cost- of-living increase would be $343.36 per pay period. No change has been made to the medical insurance benefit provided to Mr. Brown; however, a disclosure is included in this report that retaining the City’s benefit payment to Mr. Brown for an amount up to 100% of the cost for the CalPERS medical insurance PERS Choice PPO family rate is estimated to cost the City approximately 10% more beginning in calendar year 2020. The City has budgeted for a 10% increase in the cost of medical 225 Honorable City Council 06/05/2019 Regular Meeting Page 3 insurance for all employees in the draft Budget for Fiscal Year 2019-2020; however, the actual cost may be higher upon CalPERS adoption of the final rates for 2020. Severance. The severance benefit in Section 7 of the Employment Agreement will be revised upon the effective date of Amendment No. 2 from a lump sum severance benefit in an amount equal to six (6) months of his then applicable base salary if terminated (without cause) to an amount equal to nine (9) months of his then applicable base salary if terminated (without cause). The revised severance benefit is consistent with the requirements of Section 2.12.100.C of the Moorpark Municipal Code which states: “For a city manager first employed on or after January 1, 2016, then upon termination of employment by reason of involuntary removal from office other than for willful misconduct, the city manager shall receive a cash severance as specified in a written employment agreement, provided the maximum amount of severance specified in that agreement shall not exceed fifty-two (52) weeks of salary.” The proposed increase in the severance benefit to nine (9) months is less than the maximum 52 weeks (equivalent 12 months) permitted by the current Municipal Code language. GOVERNMENT CODE SECTION 54953(c)(3) ANNOUNCEMENT Consistent with Section 54953(c)(3) of the Government Code and Section 2.5 of the City Council Rules of Procedure, the Mayor, Mayor Pro Tempore, or other presiding officer shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in Section 3511.1(d) of the Government Code, during the open regular meeting in which the final action is to be taken and prior to the motion to approve. The City Manager is a local agency executive as defined in Section 3511.1(d) of the Government Code, and the oral report is required prior to approval of the attached Resolution approving Amendment No. 2 to the Employment Agreement. The required oral report is included in the Staff Recommendation section of this report. FISCAL IMPACT The fiscal impact related to the proposed Employment Agreement with respect to the compensation and benefits for the City Manager are already incorporated in the current Fiscal Year 2018-2019 Budget for the City Manager merit raise, and included in the draft Budget for Fiscal Year 2019-2020 for the 1% cost-of-living increase for all employees and the increase from 3% to 4% for the City Manager’s deferred compensation benefit. The Fiscal Year 2019-2020 Budget is scheduled for adoption at the regular meeting on June 19, 2019. The increased deferred compensation benefit will not become effective until the first full pay period in Fiscal Year 2019-2020. The dollar values of the 5% merit raise, 1% cost-of-living increase, and increased deferred compensation payment are included in the Discussion and Staff Recommendation sections of this report. 226 Honorable City Council 06/05/2019 Regular Meeting Page 4 STAFF RECOMMENDATION ROLL CALL VOTE 1) Prior to a motion to adopt the attached Resolution approving Amendment No. 2 to the Employment Agreement between the City of Moorpark and Troy Brown, the Mayor shall make an oral summary report for compliance with Section 54953(c)(3) of the Government Code as follows: Staff is recommending the City Council approve Amendment No. 2 to the Employment Agreement between the City and Troy Brown for the position of City Manager. Following is a summary of the Salary, Benefits, and Severance provisions of the Employment Agreement that are proposed to be increased with the adoption of Agreement No. 2: • Effective with the pay period beginning on June 8, 2019, Mr. Brown will receive a 5% merit raise, which will increase his hourly rate to $106.30, which is an annual base salary of $221,104. • Effective with the first full pay period in the new fiscal year 2019-2020, beginning on July 6, 2019, Mr. Brown will receive the same 1% cost-of-living allowance granted to all of the other City employees. This will result in an increase to his hourly rate to $107.36, which is an annual base salary of $223,308.80. • Effective with the pay period beginning on July 6, 2019, Mr. Brown’s deferred compensation contribution made by the City will increase from 3% to 4% of gross base salary. The estimated 4% deferred compensation payment per pay period after applying the 5% merit raise and the 1% cost-of-living increase would be $343.36 per pay period. • The severance benefit in Section 7 of the Employment Agreement will be revised upon the effective date of Amendment No. 2 from a lump sum severance benefit in an amount equal to six (6) months of his then applicable base salary if terminated (without cause) to an amount equal to nine (9) months of his then applicable base salary if terminated (without cause). • The City Manager’s medical insurance benefit has not been increased; however, disclosure is given that the City has budgeted for a 10% increase in the cost of medical insurance for all employees in the draft Budget for Fiscal Year 2019-2020 and the actual cost may be higher upon CalPERS adoption of the final rates for 2020. 2) Adopt Resolution No. 2019-____ approving Amendment No. 2. Attachments: 1. Troy Brown Employment Agreement dated February 7, 2018 2. Amendment No. 1 to Employment Agreement 3. Draft Resolution including Amendment No. 2 to Employment Agreement 227 ATTACHMENT 1 228 229 230 231 232 233 234 235 ATTACHMENT 2 236 237 RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF MOORPARK AND TROY BROWN WHEREAS, on February 7, 2018, the City Council approved Resolution No. 2018- 3669 which appointed Troy Brown as Moorpark City Manager effective March 3, 2018, and approved an Employment Agreement in connection therewith; and WHEREAS, on May 2, 2018, the City Council approved Resolution No. 2018-3698 approving Amendment No. 1 to the Employment Agreement between the City of Moorpark and Troy Brown; and WHEREAS, the City Council with this Resolution is approving Amendment No. 2 to the Employment Agreement between the City of Moorpark and Troy Brown, and Amendment No. 2 is incorporated into this resolution as Exhibit A. NOW , THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Moorpark and Troy Brown, attached hereto as Exhibit A. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause it to be filed in the book of original resolutions. PASSED AND ADOPTED this 5th day of June, 2019. Janice S. Parvin, Mayor ATTEST: Deborah Traffenstedt Assistant City Manager/City Clerk Exhibit A: Amendment No. 2 to Employment Agreement between the City of Moorpark and Troy Brown ATTACHMENT 3 238 Resolution No. 2019- Page 2 AMENDMENT NO. 2 TO EMPLOYMENT AGREEMENT BETWEEN THE CITY OF MOORPARK AND TROY BROWN This Amendment No. 2 to the February 7, 2018 Employment Agreement, as previously amended, (“Employment Agreement”) between the CITY OF MOORPARK, a California municipal corporation and general law city (“the CITY”), and TROY BROWN (“EMPLOYEE”), an individual, is made and entered into this 6th day of June, 2019. RECITALS WHEREAS, on February 7, 2018, the CITY and EMPLOYEE entered into an Employment Agreement for the Non-Competitive Service, at-will position of City Manager; and WHEREAS, the CITY and EMPLOYEE entered into Amendment No. 1 to the 2018 Employment Agreement on May 3, 2018; and WHEREAS, the City Council has completed its annual review of Employee’s performance and the parties desire to make certain changes to the Employment Agreement. NOW, THEREFORE, it is mutually agreed by and between the parties to amend the Employment Agreement as follows: Section 1. Effective June 8, 2019, Subsection 4.A, Base Salary is amended to read in its entirety as follows: “Base Salary. Effective with the pay period beginning June 8, 2019, City shall pay Employee an annual salary of $221,104, subject to legally permissible or required deductions and withholding, prorated and paid on City’s normal pay days. Employee’s salary is set in the City’s Salary Plan covering the City Manager’s position, with an hourly rate of $106.30. Employee shall be compensated according to the City’s biweekly pay schedule. Identification of an hourly rate herein is to account for absences from work of less than eight (8) hours per work day or forty (40) hours per work week, consistent with the Fair Labor Standards Act and the City’s practices. Employee’s salary is compensation for all hours worked. Employee shall be exempt from the overtime pay provisions of California law (if any) and federal law. Effective with the pay period beginning on July 6, 2019, Employee shall receive the same 1% cost-of-living allowance granted to the City’s Non-Competitive Service management employees. This will result in an annual base salary of $223,308.80 and an hourly rate for accounting purposes of $107.36.” Section 2. Subsection 4.B(1), Fringe Benefit Package, is amended to read in its entirety as follows: 239 Resolution No. 2019- Page 3 “In addition to base salary and except as expressly provided in this Agreement, Employee shall receive the fringe benefits (retirement, deferred compensation, medical insurance, dental insurance, vision insurance, life insurance and annual physical) under plans, policies and controlling documents adopted by the City Council, and as they may be amended from time to time. Such fringe benefits are subject to the terms and conditions of the applicable plan, policy or other controlling documents, including laws and regulations, where applicable. To the extent that a benefit is granted to Employee and the benefit or its administration is not adequately addressed in the plans, policies and controlling documents or this Agreement, reference may be made to the comparable benefit as applied to Department Heads in the Management Benefits Resolution to fill any gaps, but not to change the terms of this Agreement.” Section 3. Subsection 4.B(2), Annual Leave, is amended to read in its entirety as follows: “Employee shall accrue annual leave at a rate of 9.24 hours per pay period. Upon actually reporting for duty on or after the Effective Date, Employee will be granted an initial annual leave balance of forty (40) hours. Leave use shall be calculated based on an eight-hour day. The minimum increment of Annual Leave that may be used is one quarter hour (15 minutes). Employee may accrue up to a maximum accumulated Annual Leave balance of seven hundred forty-four (744) hours of Annual Leave. When Employee’s accumulated Annual Leave balance reaches the stated maximum number of hours, accrual of Annual Leave shall cease. As long as Employee has at least three hundred sixty (360) hours of Annual Leave accumulated, forty (40) hours of such accumulated leave may be cashed out as deferred compensation in January of each year.” Section 4. Subsection 4.B(4), Administrative Leave, is amended to read in its entirety as follows: “Employee shall accrue administrative leave at the rate of approximately ninety-six (96) hours per year, accrued at the rate of 3.69 hours per pay period, with administrative leave pro-rated for partial years. Administrative Leave must be taken by the end of the calendar year ending December 31. Any unused, accumulated Administrative Leave totaling sixteen (16) hours or less at the end of a calendar year will be automatically converted to Annual Leave. Any accumulated Administrative Leave exceeding sixteen (16) hours at the end of a calendar year will not be carried over, and the Administrative Leave balance will be zero (0) at the beginning of each new calendar year, with the exception of the permitted leave carryover.” Section 5. Subsection 4.B(5), Other Leaves and Holidays, is amended to read in its entirety as follows: “Employee shall be entitled to other leaves and to holidays as provided in the City Council adopted Management Benefits Resolution or as otherwise applicable to other full-time City positions, and as such Resolution or other acts of the City Council may be amended from time to time. To the extent that leave programs vary by employee group, 240 Resolution No. 2019- Page 4 reference will be made to the benefit for Department Heads. As a salaried, overtime exempt employee, Employee’s base salary includes compensation for work performed on any holidays.” Section 6. Subsections 4.B(13), (14), (15), (16), (17), (18) and (19) are added to read in their entirety as follows: “(13) Dental and Vision Insurance. For fiscal years 2018-19 and 2019-20, City will pay the full premium for employee and dependent coverage for the dental and vision programs. For subsequent fiscal years, Employee will receive the same premium contributions as Department Heads. City reserves the right to change benefit providers, which may cause specific benefits to vary based on the approved provider network or insurance. “(14) Medical Insurance Cafeteria Plan. “City shall continue a cafeteria plan (Section 125 Premium-Only Plan) for medical insurance, and the City’s contribution for Employee shall consist of a medical insurance allowance of up to one hundred percent (100%) of the PERS Choice insurance Preferred Provider Organization (PPO) plan family rate, and such contribution shall be inclusive of the minimum CalPERS medical insurance payment amount as specified in Section 22892 et seq. of the Government Code. “The medical insurance cafeteria plan contribution, as specified above, is intended to pay for medical insurance for the employee and eligible dependents. An employee may convert up to a maximum of $300.00 of the medical insurance cafeteria plan allowance to cash or a deferred compensation payment each month, if not used for payment of CalPERS medical insurance costs for employee and/or eligible dependents (hereinafter referred to as in-lieu payment). The in-lieu payment shall be prorated over twenty-four (24) pay periods in a calendar year; and upon termination of employment, the in-lieu payment shall be prorated for the final paycheck, based on actual days worked, including any use of paid accumulated leave or holiday pay in that final pay period. “If Employee elects to waive medical insurance coverage for himself and eligible dependents, proof of alternative medical insurance coverage shall be provided at the time of open enrollment each year, and the Employee shall certify he will continue such alternative coverage so long as he receives an in-lieu payment. City agrees to provide this in-lieu payment option only so long as provider does not object and this action is consistent with applicable federal and state laws, including the Affordable Care Act or any successor thereto. Once Employee has selected an option for insurance coverage and/or in-lieu payment that would begin January 1 of each calendar year, he may not change his selected option until the next open enrollment date of the medical insurance plan, except as is permitted by law. All medical insurance costs that exceed the City’s maximum allowance for the calendar year shall be paid by Employee through payroll deduction.” 241 Resolution No. 2019- Page 5 “(15) Comprehensive Annual Physical. Having completed one year of service with the City, Employee is eligible for a City-paid comprehensive physical examination every two (2) years prior to age 50, and every year after age 50, with a maximum, cumulative City contribution of One thousand two hundred dollars ($1,200.00) for each pre-approved comprehensive physical examination, as a supplement for costs not covered or funded by medical insurance (including any specialized examinations, tests, follow-up tests, and laboratory costs). “(16) Life Insurance. Employee shall be provided term life insurance policy at two hundred fifty thousand dollar ($250,000) face value. Life insurance coverage for Employee’s dependents shall be the same as that provided for Competitive Service employees. “(17) Deferred Compensation. Employee shall be entitled to a deferred compensation contribution made by the City into an approved deferred compensation program of three percent (3.0%) of gross base salary. Effective with the pay period beginning July 6, 2019, Employee shall be entitled to a deferred compensation contribution made by the City into an approved deferred compensation program of four percent (4.0%) of gross base salary. “(18) CalPERS Retirement. Employee shall be enrolled as a member under the City’s contract with the California Public Employee’s Retirement System, under the appropriate benefit formula. City shall pay the employee CalPERS contribution, not to exceed seven percent (7%) of base salary, to the extent permitted by law. The CalPERS retirement benefits to be paid by City are subject to terms of the City’s contract with CalPERS and applicable law and regulations. “(19) Tuition Reimbursement. Employee shall be eligible to receive tuition reimbursement for courses pre-approved by the City Council and consistent with the rules, including tuition reimbursement rates, approved by the City Council for Competitive Service employees.” Section 7. Section 8, Severance, Subsection A is amended to read in its entirety as follows: “A. If Employer terminates this Agreement (thereby terminating Employee’s Employment), without cause, Employer shall pay Employee a lump sum severance benefit in: an amount equal to nine (9) months of his then applicable base salary if terminated (without cause) while this Agreement remains in effect.” 242 Resolution No. 2019- Page 6 Section 8. Except as revised by this Amendment No. 2, all of the other provisions of the Employment Agreement, as previously amended, shall remain in full force and effect. CITY OF MOORPARK EMPLOYEE By:______________________________ By:_______________________________ Janice S. Parvin, Mayor Troy Brown, City Manager Attest: _________________________________ Deborah Traffenstedt Assistant City Manager/City Clerk 243