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A. RESOLUTION NO. 2018-025 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) RATIFYING THE PREVIOUSLY EXECUTED CITY MANAGER EMPLOYMENT AGREEMENT FOR THE PERIOD OF 2014 TO 2018 AND (2) APPROVING A SUCCESSOR CITY MANAGER EMPLOYMENT AGREEMENT FOR THE PERIOD OF 2018 TO 2021
B. RESOLUTION NO. 2018-026 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2017-2018 COMPENSATION SCHEDULE EFFECTIVE FEBRUARY 16, 2018, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5, TO REFLECT: SALARY ADJUSTMENT FOR THE CITY MANAGER CLASSIFICATION
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolutions.
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SUMMARY
On June 27, 2014, the City of Chula Vista entered into an employment agreement with Gary Halbert as City Manager. On January 23, 2018, a public employee performance evaluation for Mr. Halbert was conducted by the City Council in accordance with Government Code Section 54957. A subcommittee of City Council is recommending a new 36-month employment agreement with Mr. Halbert with updated salary and terms and conditions of employment. This item also seeks to update the Compensation Schedule to reflect changes to the salary for the City Manager classification, as required by California Code of Regulations, Title 2, Section 570.5.
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
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Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
1. City Manager Employment Agreement
On June 27, 2014, the City of Chula Vista entered into an employment agreement (and executed said agreement) with Gary Halbert to serve as the City Manager for the City of Chula Vista. A copy of said agreement is attached as Attachment 1 (City Manager Employment Agreement (2014-2018)).
On January 23, 2018, a publically noticed public employee performance evaluation for Mr. Halbert was conducted by the City Council in accordance with Government Code section 54957. In closed session, the City Council selected a subcommittee to negotiate a successor employment agreement with Mr. Halbert.
The aforementioned City Council subcommittee is recommending a three-year (36-month) employment agreement to be in place from February 16, 2018 through February 16, 2021. This employment agreement will include removal of severance benefits after 18-months (August 16, 2019) and the removal of the cost-of-living adjustments that are contained in the current employment agreement. The employment agreement sets the City Manager’s base salary at $285,000. A copy of said employment agreement is attached as Attachment 2 (City Manager Employment Agreement (2018-2021)).
Approval of Resolution A will ratify the City Manager’s Employment Agreement (2014-2018) previously executed agreement and approve the successor City Manager’s Employment Agreement (2018-2021).
2. Amendment to City’s Compensation Schedule
The City’s Compensation Schedule requires amendment to reflect the City Manager’s salary as set forth in the City Manager Employment Agreement (2018-2021).
California Code of Regulations, Title 2, Section 570.5, requires that, for purposes of determining a retiring employee's pension allowance, the pay rate be limited to the amount listed on a pay schedule that meets certain requirements and be approved by the governing body in accordance with the requirements of the applicable public meeting laws.
Approval of Resolution B will approve the revised Compensation Schedule effective February 16, 2018 to reflect the salary adjustment for the City Manager, as required by California Code of Regulations, Title 2, Section 570.5.
DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual, or clerical in nature and, as such, does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations Title 2, section 18702.4(a). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This employment agreement supports the City-wide strategic goal of Operational Excellence. Furthermore, approval of the revised Fiscal Year 2017-2018 Compensation Schedule and its posting on the City's internet website supports the goal of Operational Excellence as it enhances disclosure and transparency of employee compensation and, as a result, fosters public trust through an open and ethical government.
CURRENT YEAR FISCAL IMPACT
The cost of this action for fiscal year 2017-18 is approximately $20,000. It is anticipated that the general fund can absorb this increase with no net impact for this fiscal year.
ONGOING FISCAL IMPACT
The ongoing annual cost of this action is approximately $45,000 and will be included in the proposed budget for fiscal year 2018-19.
ATTACHMENTS
1. City Manager Employment Agreement (2014-2018)
2. City Manager Employment Agreement (2018-2021)
3. Revised Fiscal Year 2017-2018 Compensation Schedule
Staff Contact: Courtney Chase