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HomeMy WebLinkAboutAGENDA REPORT 2017 0719 CCSA REG ITEM 09D ITEM 9.D. CITY OF MOORPARK,CALIFORNIA City Council Meeting MOORPARK CITY COUNCIL of 7-/9-Rai7 AGENDA REPORT ACTION: AG,, TO: Honorable City Council /�,, f FROM: Kevin Ennis, City Attorney DATE: July 6, 2017 (CC Regular Meeting of 7/19/17) SUBJECT: Consider an Ordinance Amending Section 2.12.100 of Chapter 2.12, City Manager, of the Moorpark Municipal Code to Reduce Potential Severance Pay and Benefits, and Making a Determination of Exemption Pursuant to the California Environmental Quality Act BACKGROUND At the City Council's regular meeting on July 5, the City Council approved a revised Management Benefits Resolution and directed a follow-up action to have the City Attorney prepare and schedule for a regular City Council meeting an ordinance amending Chapter 2.12 of the Municipal Code, and incorporating an amendment to the City Manager severance pay language in.Section 2.12.100. DISCUSSION As directed at the July 5 meeting, the City Attorney's office has drafted an ordinance amending Section 2.12.100. The draft ordinance is attached and includes a reduction and cap for the severance pay for involuntary removal from office for a city manager employed prior to January 1, 2016, to a lump sum equal to 4 weeks of salary and benefits for each year of service to a maximum of 36 weeks of salary and benefits; and for a city manager first employed on or after January 1, 2016, to a cash severance as specified in a written employment agreement, provided the maximum amount of severance shall not exceed 52 weeks of salary and in addition may provide for the payment of health benefits consistent with the limitations of Government Code Sections 53260 and 53261 and the City's medical insurance provider. The date of January 1, 2016, is included in the ordinance to be consistent with the most recent version of Government Code Section 53260. 59 Honorable City Council July 19, 2017, Regular Meeting Page 2 CEQA The Community Development Director has reviewed the contents of the draft ordinance and determined that it is exempt from the provisions of the California Environmental Quality Act (CEQA), because CEQA only applies to projects that may have a significant effect on the environment, and it can be seen with certainty that the changed Municipal Code language will not have any potentially significant adverse impact on the environment. 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 considered a local agency executive per the State law definition, which includes a chief executive officer. The required summary announcement is included in Staff Recommendation No. 1 of this agenda report. As previously stated, the revised language in Section 2.12.100 of the Municipal Code will actually reduce the severance benefit, and includes a reduction and cap for the severance pay for involuntary removal from office for a city manager employed prior to January 1, 2016, to a lump sum equal to 4 weeks of salary and benefits for each year of service to a maximum of 36 weeks of salary and benefits; and for a city manager first employed on or after January 1, 2016, to a cash severance as specified in a written employment agreement, provided the maximum amount of severance shall not exceed 52 weeks of salary and in addition may provide for the payment of health benefits consistent with the limitations of Government Code. Sections 53260 and 53261 and the City's medical insurance provider. FISCAL IMPACT The draft ordinance will not result in a fiscal impact and reduces the potential involuntary termination severance pay and benefits for a City Manager. It will also bring the Code language into compliance with the requirements of Sections 53260 and 53261 of the Government Code. STAFF RECOMMENDATION 1. Prior to a motion to introduce the ordinance amending the Municipal Code, 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 an ordinance amending Section 2.12.100 of the Municipal Code 60 Honorable City Council July 19, 2017, Regular Meeting Page 3 to include a reduction of the severance pay for involuntary removal from office for a city manager employed prior to January 1, 2016, to a lump sum equal to 4 weeks of salary and benefits for each year of service to a maximum of 36 weeks of salary and benefits; and to restrict the involuntary severance pay for a city manager first employed on or after January 1, 2016, to a cash severance as specified in a written employment agreement, provided the maximum amount of severance shall not exceed 52 weeks of salary and in addition may provide for the payment of health benefits consistent with the limitations of Government Code Sections 53260 and 53261 and the City's medical insurance provider"; and 2. Introduce Ordinance No. for first reading, which includes the determination of exemption under the California Environmental Quality Act, waive full reading, and place this ordinance on the agenda for an adjourned regular meeting to be held at 6:30 p.m. on July 26, 2017, for purposes of providing second reading and adoption of the ordinance. ROLL CALL VOTE REQUIRED Attachment: Draft Ordinance 61 ORDINANCE NO. AN ORDINANCE OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING SECTION 2.12.100, OF CHAPTER 2.12, CITY MANAGER, OF THE MOORPARK MUNICIPAL CODE TO REDUCE THE MAXIMUM AMOUNT OF A SEVERANCE PAYMENT FOR A CITY MANAGER WHO IS INVOLUNTARILY TERMINATED FROM EMPLOYMENT, AND MAKING A DETERMINATION OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the City Council desires to reduce the amount of a severance payment that the City would need to pay in the event of an involuntary termination of the City Manager; and WHEREAS, Section_2.12.100 of the Moorpark Municipal Code currently provides that the maximum severance payment would be equal to 18 weeks of salary and benefits if the City Manager is terminated in the first year and an additional 52 weeks of salary and benefits if terminated thereafter; and WHEREAS, the City Council intends to cap the severance at a not to exceed 36 weeks of salary and benefits for a City Manager, except that for a City Manager first employed as City Manager on or after January 1, 2016, and pursuant to a written employment agreement, the amount of severance may be increased to 52 weeks; and WHEREAS, the City's Community Development Director has concluded that the proposed change to a City Manager's severance payment amount that is specified in this Ordinance is exempt from review under the California Environmental Quality Act, pursuant to Section 15061(B)(3) of the State CEQA Guidelines, because it can be seen with certainty that the change will not have any potentially significant adverse impact on the environment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES ORDAIN AS FOLLOWS: SECTION1. The City Council hereby concurs with the City's staff's conclusion that it can be seen with certainty that there is no possibility the adoption of this Ordinance will have a significant adverse effect on the environment and that it is therefore exempt from review under the California Environmental Quality Act pursuant to Title 14, Section 15061(b)(3) of the California Code of Regulations. SECTION Z Section 2.12.100 (Removal from Office), of Chapter 2.12 (City Manager) of Title 2 (Administration and Personnel) of the Moorpark Municipal Code is hereby amended in its entirety to read as follows: 62 Ordinance No. Page 2 "2.12.100 Removal from office. A. The removal of the city manager shall be effected only by a majority vote of the whole council as then constituted, convened in a regular council meeting. B. For a city manager already employed prior to 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 cash severance pay in a lump sum equal to four (4) weeks (two (2) pay periods) of salary and benefits for each year of service to a maximum of thirty-six (36) weeks (eighteen (18) pay periods) of salary and benefits. C. 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. In addition, the agreement may provide for the payment of health benefits consistent with the limitations of Government Code Sections 53260 and 53261 and the City's medical insurance provider. D. Notwithstanding the provisions of this chapter, the city manager shall not be removed from office during or within a period of ninety (90) days next succeeding any municipal election held in the city at which election a member of the city council is elected. The purpose of this provision is to allow any newly elected member of the city council to observe the actions and ability of the city manager in the performance of the powers and duties of his or her office." SECTION 3. If any section, subsection, sentence, clause, phrase, part or portion of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, phrases, parts or portions be declared invalid or unconstitutional. SECTION 4. This Ordinance shall become effective thirty (30) days after its passage and adoption. 63 Ordinance No. Page 3 SECTION 5. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said City; shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted; and shall publish notice of adoption in the manner required by law. PASSED AND ADOPTED this day of , 2017. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk 64