CC SR 20180206 06 - CM Employment Amendment to AgreementRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 02/06/2018
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action to approve the First Amendment to the City
Manager's Employment Agreement.
RECOMMENDED COUNCIL ACTION:
(1) Approve the First Amendment to the City Manager's Employment Agreement
FISCAL IMPACT: $22,037.50
Amount Budgeted: $262,591.00
Additional Appropriation: $22,037.50
Account Number(s): 101-400-1410-410
ORIGINATED BY: David J. Aleshire, City Attorney
REVIEWED BY: Same as above
APPROVED BY: Susan Brooks, Mayor
Ken Dyda, Council Member
ATTACHED SUPPORTING DOCUMENTS:
A. City Manager's Employment Agreement First Amendment (page A-1)
B. City Manager Contract Comparison November 2017 (page B-1)
C. City Manager Contract Comparison with Proposed Changes (page C-1)
BACKGROUND AND DISCUSSION:
In the fall of 2017, the City Council appointed Mayor Brooks and Council Member Dyda
to a Compensation Subcommittee (Subcommittee) to review the City Manager's annual
compensation. Mr. Willmore became the City Manager in March of 2015 and has not
received any increase in compensation or had any changes to his employment
agreement.
The Subcommittee requested a compensation analysis from the City's Director of
Finance. The purpose of the compensation analysis was to compare total salary and
benefits (total compensation) to the total compensation of City Managers in eight similar
cities. The Subcommittee employed the Hay Job Evaluation, which evaluates salary
and benefit levels based on a position's budgetary level of responsibility, interaction with
others, and operational management of major projects. The Subcommittee also utilized
the latest annual performance review performed by the City Council. Additionally, the
Subcommittee considered the annual Cost of Living Adjustment (COLA) that the City's
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employees had received over the last 2 years, and used that compounded COLA
amount in determining the annual increase in salary.
Based on the results of these reviews and analysis, the Subcommittee recommends the
following changes to the City Manager's current agreement with the City (Attachment
A):
1. Modify Section 6A, increasing the employee's annual salary to $225,750.
2. Modify Section 11 E, adding that the City will contribute 5% of the employee's
salary annually to a defined 401a benefit plan.
This proposed increase totals $22,037.50—salary increase of $10,750 and 401a
contribution of $11,287.50, for total compensation of $284,629—which is approximately
mid -center of the eight cities used in the comparison. The eight comparable cities used
in the survey are Manhattan Beach, Carson, Redondo Beach, EI Segundo, Hermosa
Beach, Palos Verdes Estates, Rolling Hills Estates, and Rolling Hills (Attachments B &
C).
ALTERNATIVES:
In addition to the recommended action, the following alternative action is available for
the City Council's consideration;
Discuss and take other action related to this item
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AMENDMENT NO. 1
TO EMPLOYMENT AGREEMENT BETWEEN CITY OF RANCHO
PALOS VERDES AND DOUGLAS WILLMORE
THIS AMENDMENT TO THE EMPLOYMENT AGREEMENT ("Amendment")
between the CITY OF RANCHO PALOS VERDES and Douglas Willmore is entered into this
6th day of February, 2018.
RECITALS
A. City of Rancho Palos Verdes ("City") and Douglas Willmore ("Employee") entered
into that certain Employment Agreement between the City of Rancho Palos Verdes and Douglas
Willmore dated March 1, 2015 ("Agreement") whereby Employee agreed to serve as City
Manager.
B. Based on surveys of general city manager compensation the City and Employee
now desire to amend the Agreement to increase the City Manager compensation in accordance
with market conditions.
TERMS
1. Contract Changes. The Agreement is amended as provided herein. Deleted text is
indicated in s#ikethr-ettgh and added text in bold italics.
Section 6.A. is amended to read as follows:
EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant to this
Agreement, an annual salary of Two >,undr-ea fifteen thousand dollars ($2 5,000) Two
hundred twenty five thousand seven hundred fifty dollars ($225,750) subject to legally
permissible or required deductions and withholding, prorated and paid on CITY'S normal
paydays. 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.
Section 1 LE. is amended to read as follows:
EMPLOYEE may pat4iei�t@ n the detafi�cc�ravrirpcn�cccivn plan(s) to wiie i r�.irr
ma _ J� t ___ __
employees may contribute in the same manner as other CITY employees. City will
contribute 5% ofEMPLOYEE'S salary annually to a defined 401a benefitplan.
2. Continuing Effect of Agreement. Except as amended by this Amendment, all
provisions of the Agreement shall remain unchanged and in full force and effect. From and after
the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall
mean the Agreement, as amended by this Amendment to the Agreement.
3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and
Contractor each ratify and reaffirm each and every one of the respective rights and obligations
arising under the Agreement. Each party represents and warrants to the other that there have been
01203.0001/444081.1
A-1
no written or oral modifications to the Agreement other than as provided herein. Each party
represents and warrants to the other that the Agreement is currently an effective, valid, and binding
obligation.
Contractor represents and warrants to City that, as of the date of this Amendment, City is
not in default of any material term of the Agreement and that there have been no events that, with
the passing of time or the giving of notice, or both, would constitute a material default under the
Agreement.
City represents and warrants to Contractor that, as of the date of this Amendment,
Contractor is not in default of any material term of the Agreement and that there have been no
events that, with the passing of time or the giving of notice, or both, would constitute a material
default under the Agreement.
4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that
they have each received adequate and independent consideration for the performance of the
obligations they have undertaken pursuant to this Amendment.
5. Authority. The persons executing this Agreement on behalf of the parties hereto
warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute
and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party
is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement
does not violate any provision of any other Agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
01203.0001/444081.1
A-2
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
and year first -above written.
ATTEST:
Emily Colborn, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
David J. Aleshire, City Attorney
CITY:
CITY OF RANCHO PALOS VERDES, a
municipal corporation
Susan Brooks, Mayor
CONTRACTOR:
DOUGLAS WILLMORE
LM
Two corporate officer signatures required when Contractor is a corporation, with one signature required from
each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR'S SIGNATURES
SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR
REGULATIONS APPLICABLE TO CONTRACTOR'S BUSINESS ENTITY.
01203.0001/444081.1
A-3
CITY MANAGER CONTRACT COMPARISON
November 2017
Salary
Lump-
Other
Employees Portion Deferred
Total
(Regular Pay)
Sum Pay
Pay
PERS
paid by employer Compensation Health/Dental/Vision
Compensation
Redondo Beach
$234,770
$18,215
$33,154
$50,379
$18,230
$1,303
$15,867
$371,918
Manhattan Beach
$255,000
$14,712
$5,640
$33,920
$0
$17,500
$28,282
$355,054
EI Segundo
$233,472
$22,450
$0
$42,959
$0
$0
$8,983
$307,864
Carson
$240,000
$6,000
$28,800
$0
$6,000
$18,540
$299,340
Hermosa Beach
$219,000
$27,364
$16,659
$0
$0
$11,372
$274,395
Palos Verdes Estates
$213,180
$15,220
$22,350
$8,209
$0
$13,786
$272,745
Rolling Hills Estates
$203,688
$0
$23,326
$0
$20,369
$17,664
$265,047
Rancho Palos Verdes
$215,000
$8,400
$14,901
$0
$24,290
$262,591
Rolling Hills
$169,656
$6,525
$3,580
$13,668
$0
$364
$16,799
$210,592
Regular Pay
The dollar amount paid to the employee for working regular hours.
Lump -Sum Pay
The dollar amount paid to the employee for one-time payments (such as paid excess vacation/sick leave and bonus)
Other Pay
The dollar amount paid to the employee for any other pay not reported as regular pay, overtime pay, or lump -sum pay
(such as car allowance, meeting stipends, incentive pay,bonus pay, Health Savings contribution, etc.)
Deferred Compensation
The dollar amount paid by the employer toward the employee's defined contribution/deferred compensation plan.
This includes 457 and 401 a plans
Health/DentalNision Contribution
The dollar amount paid by the employer toward the employee's health, dental, and/or vision care plans
As
CITY MANAGER CONTRACT COMPARISON
February 06, 2018
Salary
Lump-
Other
Employees Portion Deferred
Total
(Regular Pay)
Sum Pay
Pay
PERS
paid by employer Compensation Health/Dental/Vision
Compensation
Redondo Beach
$234,770
$18,215
$33,154
$50,379
$18,230
$1,303
$15,867
$371,918
Manhattan Beach
$255,000
$14,712
$5,640
$33,920
$0
$17,500
$28,282
$355,054
EI Segundo
$233,472
$22,450
$0
$42,959
$0
$0
$8,983
$307,864
Carson
$240,000
$6,000
$28,800
$0
$6,000
$18,540
$299,340
Rancho Palos Verdes
$225,750
$8,400
$14,901
$0
$11,288
$24,290
$284,629
Hermosa Beach
$219,000
$27,364
$16,659
$0
$0
$11,372
$274,395
Palos Verdes Estates
$213,180
$15,220
$22,350
$8,209
$0
$13,786
$272,745
Rolling Hills Estates
$203,688
$0
$23,326
$0
$20,369
$17,664
$265,047
Rolling Hills
$169,656
$6,525
$3,580
$13,668
$0
$364
$16,799
$210,592
Regular Pay
The dollar amount paid to the employee for working regular hours.
Lump -Sum Pay
The dollar amount paid to the employee for one-time payments (such as paid excess vacation/sick leave and bonus)
Other Pay
The dollar amount paid to the employee for any other pay not reported as regular pay, overtime pay, or lump -sum pay
(such as car allowances, meeting stipends, incentive pay, bonus pay, Health Savings contribution etc.).
Deferred Compensation
The dollar amount paid by the employer toward the employee's defined contribution/deferred compensation plan.
This includes 401(a), (b), (k), 403(b), and 457 plans
Health/Dental/Vision Contribution
The dollar amount paid by the employer toward the employee's health, dental, and/or vision care plans
C-1