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HomeMy WebLinkAboutAGENDA REPORT 2017 0419 CCSA REG ITEM 10E ITEM 10.E. CITY OF MOORPARK,CALIFORNIA City Council Meeting MOORPARK CITY COUNCIL ACTION. AGENDA REPORT TO: Honorable City Council FROM: Deborah S. Traffenstedt, Assistant City Manager `.DST DATE: April 12, 2017 (CC Meeting of 04/19/2017) SUBJECT: Consider Revising Policy 3.9, Including Revising the Policy Title to Authorization for City Manager to Approve Employment Agreements and Retirement Incentive Agreements BACKGROUND AND DISCUSSION Policy 3.9, Employment Agreement Approval, currently authorizes the City Manager to approve an employment agreement fora new management employee and prior to promotion or reclassification, consistent with the authority granted in Chapter 2.12, City Manager, and Chapter 2.56, Personnel System, of the Moorpark Municipal Code and the provisions of State law. The proposed policy amendment includes adding authority for the City Manager to sign an early retirement incentive agreement not to exceed $10,000. The revisions to Policy 3.9 are shown with legislative format in Attachment 1. Pursuant to Municipal Code Section 2.12.120, the City Manager is authorized without prior approval to execute contracts up to a maximum of$50,000 for which a budget appropriation has already been approved by the City Council. Typically an early retirement incentive of a total value not exceeding $10,000 can be funded out of salary and benefit savings without an additional budget allocation, or money could be included at the time of the regular fiscal year budget adoption if needed. The purpose of providing an early retirement incentive is to facilitate an early retirement for an employee at a higher salary level,and who may have higher cost benefits no longer offered to new employees. For example, the City no longer pays longevity pay or a retirement health savings benefit for new employees, and there is a different California Public Employees Retirement System (CaIPERS) retirement benefit for new employees that has a lower cost for the employer in comparison to the "Classic" CaIPERS retirement benefit. If the City Council approves the revisions to Policy 3.9,staff will incorporate the updated policy into the City Council's Policies Resolution at the time of the next comprehensive update, which is intended to be scheduled before the end of the current fiscal year. 64 Honorable City Council April 19, 2017, Regular Meeting Page 2 FISCAL IMPACT No fiscal impact is anticipated. STAFF RECOMMENDATION Approve revised Policy 3.9, and direct staff to incorporate the revised Policy 3.9 into the next comprehensive update of the City Council Policies Resolution. Attachment: Draft revised Policy 3.9 65 Honorable City Council April 19, 2017, Regular Meeting Page 3 ATTACHMENT Policy 3.9: Authorization for City Manager to Approve Employment Agreements App- evatand Retirement Incentive Agreements The City Manager shall have the authority to require and approve an employment agreement for a new management employee and prior to promotion or reclassification of a current management employee, consistent with the authority granted in Chapter 2.12, City Manager, and Chapter 2.56, Personnel System, of the Moorpark Municipal Code, and consistent with the provisions of State law, including but not limited to California Government Code Section 3511.2 and Section 53243 et seq. and any section amendatory or supplementary thereto. For a promotion of an employee with an existing employment agreement, the City Manager shall have the authority to approve retaining prior employment agreement language for continuing grandfathered benefits that do not conflict with the City's Management Benefits Resolution and State law. The City Manager shall have the authority to approve a retirement incentive agreement for an employee that may include a mutual general release for a total value not to exceed $10,000. A retirement incentive agreement for a higher amount shall require City Council approval. This policy does not apply to a claim settlement, which is addressed in Policy 3.2. 66