HomeMy WebLinkAboutAgenda Report - December 21, 2005 K-08AGENDA ITEM IA%*aV
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Ratification of Employment Agreement Entered into Between City Manager Blair
Icing and Deputy City Manager/Intemal Services Director James Krueger, and
Receive, for Information Only, a Report on the Reorganization of the Finance
Department and City Manager's Office.
MEETING DATE: December 21, 2045
PREPARED BY: City Manager
RECOMMENDED ACTION:
1) Adopt Resolution ratifying the terms of the employment agreement entered into between City
Manager Blair King and Deputy City Manager/Internal Services Director James Krueger; and
2) Receive, for information only, a report on the reorganization of the Finance Department and
City Manager's Office.
BACKGROUND INFORMATION: Lodi Municipal Code Section 2.12.060 vests with the City Manager
the power to select subordinate staff. Based upon an open and
competitive selection process, the City Manager selected Mr.
Krueger to serve as the Deputy City Manager.
The City Manager wishes to provide Mr. Krueger with certain terms and conditions related to employment
that extends beyond the Manager's authority and therefore requires ratification by the City Council. The
Manager proposes the same agreement provided to Community Development Director Randy Hatch.
The proposed Employment Agreement provides for a six-month severance payment if Mr. Krueger is
terminated without cause, and it is a two-year "term" agreement. It is the Manager's intention to have all
members of the Executive Management Team under a "standard" employment agreement. It has been
noted previously that the City has evolved into a practice that some members of the City's Executive
Management Team have employment agreements with severance provisions while others do not. The
selection of those employees offered employment agreements appears to be random.
In addition to the selection of subordinate personnel, the above referenced Municipal Code section also
charges the City Manager with developing an organizational chart. (The presumed purpose of this
obligation is to require that the City Manager maintain the organization in accordance with principles,
practices, and theories of Public Administration.) The precedent has been established in Lodi for City
Managers to present the organizational chart to the City Council for information only.
Human Resources, Information Services, and many accounting functions are support/internal functions to
"Line Departments". Line Departments are defined as those departments that deliver direct services to
the public, (for example, Police, Fire, Public Works, Library, etc.) Support or Internal services are defined
as those Departments or Divisions that support Line Departments. At times, conflict in policy and
communication can occur between support departments and/or divisions that negatively impact the
delivery of services to Line Departments and in turn the public. In order to increase the coordination of
support functions and reduce communication breakdown, the Manager intends to place the supervision
of all internal services under the direct control of the Deputy City Manager.
APPROVED:
Blair ' g, City Manager
Furthermore, in order to reduce the number of Executive Management staff members, the position of
Finance Director will be suspended and two new Manager positions will be created in Finance: Budoet
Manager and Financial Services Manager. This will reduce the number of highly paid Department Heads
from nine to eight, and expand the rote of the Deputy City Manager. However, the total number of
employees City-wide will probably remain the same.
In brief:
• Now Deputy City Manager Title:
• Salary:
• Number of New Positions:
Pay Range for New Positions:
• Status of Finance Director:
• Number of Employees Impacted:
Deputy City Manager/Internal Services Director
Currently remains the same as existing Deputy City Manager - up
to $119,556 annually
Two: Financial Services Manager
Responsibilities: Accounting and Billing
Budget Mgna4er
Responsibilities: budget,
Audits, and Purchasing
$81,985 - $99,652
Position suspender!
Treasury Functions, Internal
Financial Services Division: 19 full-tirro / 1 vacant
BudgeVRevenue/Treasury Division: 7 full-time / 1 vacant
Human Resources Division: 6 full-time / 2 vacant
Information Systems Division: 9 full-time / 2 vacant
Copies o! the Employment Agreement, position description, and organizational charts are attached, It is
anticipated that recruitment by the City's Human Resources Department will begin immediately to fill the
Financial Services and Budget Manager positions. Until such times as these positions are filled,
Accounting Manager Ruby Paiste will serve as Interim Finance Director. When the positions are filled the
Finance Director position will be suspended.
FISCAL IMPACT: It is anticipated that for the remainder of the FiscFl Year, one position that
was budgeted for the year will not be filled. The cost savings for the
remainder of the fiscal year are estimated to be no less than $66,400 but in
actuality could be higher.
FUNDING AVAILABLE: Funding is available. The Deputy City Manager and Finance Direct+cr
positions have been budgeted for the full year. It is anticipated that at least
one more position, that was budgeted in FY 05-06 and that was not
anticipated on being vacant, will be vacant the remainder of the fiscal year.
Until the recruitments are complete, the specific vacant position is
unknown.
Ruby PaUte, Interim Finance Director
Blair King, 06manager
Attachments: Employment Agreement
Position Description
Organizational Charts
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EMPLOYMENT AGREEMENT
Executive Management
Exempt Service
Deputy City Manager/Internal Services Director
THIS AGREEMENT entered into on December 12, 2005, by and between the CITY OF
LODI, a municipal corporation. (hereinafter referred to as "City") and Jarnes R. Krueger, an
individual (hereinafter referred to as "Employee").
WHEREAS, City desires to entploy the services of Employee as Deputy City
Manager/Internal Services Director; and
WHEREAS, Employee desires to serve as Deputy City Manager/Internal Services
Director for the City beginning December 12, 2005; and
WHEREAS, City and Empksyee agree its writing to the terms and conditions of
ernploynient as Deputy City Manager./Internal Services Director; and
WHEREAS, Employee and City agree and aclmowledge that Ernployee's employment
as Deputy City Manager/Internal. Services Director is his sole and exclusive employment with.
City, and that their et .iployrzlent relationship is governed solely and exclusively by this
Agreement.
NOW, THEREFORE, in consideration of the promises and conditions set forth herein,
the parties mutually agree as follows:
IzerjtA City agrees to employ Employee as Deputy City Mariagery'Intornal
Services Director, in accordance with the following provisions:
(a) Employee shall serve as Deputy City Managerilnternal Services Director,
and shall be responsible for managing and directing the operations of the Internal Services
Division of the City Manager's Office in accordance with. an agreed upon performance plan.
(b) Employee shall perform his duties to the best of his ability in accordance
with the highest professional and ethical standards of the profession and shall comply with all
general rules and regulations established by the City.
(c) Employee shallnot engage in any activity which is or may become a
conflict of interest, prohibited contract, or which may create an incompatibility of office as
defined under California law. Employee shall comply fully with his reporting and disclosure
obligations under regulations promulgated by the Fair Political Practices Corm- fission (FPPC).
(d) Employee agrees to remain in the exclusive employ of the City during the
tetm of this Agreement. Employee shall dedicate his full energies and qualifications to his
employment as Deputy City Manager/Internal Services Director, and shall not engage in any
other ernploytlent: except as may be specifically approved in writing its advance by the City
.Manager.
I Maintenance of Professional Expertise. To promote continued professional
growth and benefit to the City, Employee shall, at City expense and consistent with budgetary
constraints: maintain membership in professional organizations related to city management
administration and related professional disciplines; attend workshops, serninars and. other similar
activities designed to advance Employee's professional development; and, represent the City in
professional associations and other organizations.
3. Term, The tern of the Agreement skull be for a period of two (2) years,
commencing 6ecen-iber 12, 2005, until terminated by either party in accordance with the
provisions .set forth in Paragraph 4, or until terminated by the event of the death or permanent
disability of Employee. The Agreement may be renewed, under terns mutually agreed by the
parties, no later than eighteen (18) months after commencement of'Employee's employment with
City.
4. Resi nation or Termination:
(a.) Employee.may resign at any time and agrees to give City at least 30 days
advance written notice of the effective date of his resignation. In such event, Employee shall not
be entitled to severance pay as provided in Paragraph 5 herein.
(b) The parties recognize and a firers. that Employee may be tern-unated by the
City Manager with cause, which shall mean ,gross insubordination, incapacity, dereliction of
duty, conviction of a crime involving acts of moral turpitude or involving personal gain to him,
or ixiaterial breach of this Agreement. In such ;vent, Employee shall not be entitled to severance
pay as provided in Paragraph 5 herein.
(c) The parties recognize and affirm that Employee may be terminated by the
City Manager without cause. In such event, Employee shall be entitled to severance pay as
provided in Paragraph 5 herein.
(d) In the event of termination and in recognition of Employee's professional
status and integrity, Employee and the City Manager shall prepare a Joint public statement to be
made by the City Manager. This employment relationship is based on the mutual respect
between the parties and a desire to maintain the highest degree of professionallsill. In
communicating with third parties about the parties' einployment relationship and the
circumstances under which it may have been severed, the parties shall (a) protect and advance
their mutual respect and professionalism, and (b) refrain from making statements that would
negatively impact either party.
(e) Employee may choose to resigns or retire his office instead of being
terminated if agreed to by the City Manager. In such an event the public announcement, as
provided for in Paragraph 4 (d) above, will note; Employee has resigned or retired. The
provisions of Paragraph 4 (d) shall remain applicable.
5. Severance Pay; If Employee is terminated by the City Manager without cause
while still willing and able to perforns the duties of Deputy City Manager/lntern.al Services
Director, City agrees to pay Employee a cash payment equal to six (6) months' aggregate salary
and the City's cost of six (E) months' health insurance benefits subject to reduction as set forth in
this Paragraph 5. The severance payment will be paid over tune at the same time as other
employees of the City are paid and subject to customary withholdings. In the event Employee
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retanis new employment during the six month severance period, any remaining severance
payment will be forfeited as of the date Employee begins his new Employment. To be eligible
.for such severance pay, Employee shall fulfill all of his obligations under this Agreement, and
shall sign an Acknowledgment and Release of Claims against the City. Payment under this
paragraph will release City from any further obligations ender this .Agreernent, or any other
transaction between the parties
6� EmDlovment as Department I end is Sale Employment with City: Employee
further represents and acknowledges that his employment as Deputy City Manager/Internal
Services Director is his sale and. exclusive employment with the City. Employee has no right to
any other exempt position with the City, or to any employment in the classified service.
7 Salr :
(a) City agrees to pay Employee $119,556.O0 in salary per annum for ]its
services, payable in installments at the same time as other employees of the City are paid and
subjOct to customary withholding.
(a) Thereafter, a salary increase of up to five percent (5%) may be granted by
the City Manager after twelve (12) months of employment and a satisfactory perfon-riance
evaluation.
8. Benefits: The City shall provide Employee the same benefits as provided to
management employees in accordance with the terms of the Executive Management Statement of
Benefits dated 1998 and as they may be amended, increased or decreased, except as modified
herein. These are the sole and exclusive benefits to be provided to Employee. Arty improvement
or modification of such benefits may only be made by written instrument signed by the City
Manager. As used herein, benefits include, but are not limited to: vacation, sick leave, holidays,
administrative leave, retirement, vision insurance, health. insurance, dental insurance, long term
disability insurance and life insurance. Employee's vacation leave shall be calculated as if
Employee was in his sixth year of employment (i.e., Employee shall accrue fifteen days of
vacation per year increasing frorn there as provided in the Executive Management. Statement of
Benefits.) Employee will also earn and accumulate sick leave and vacation as provided in. the
Executive .Management Statement of Benefits.
9. Performance Evaluation: The City Manager shall review and evaluate the
performance of Employee each year and set goals and objectives for the ensuing year. Such
review and evaluation shall be in accordance with.. specific criteria developed in the performance
plan in consultation with Employee and the City Manager.
10e AjE!g Mezrt: Employee shall not assign any of the ditties and responsibilities, or
obligations o("this Agreement except with the express written consent of the City .Manager.
1 L Authority to Work in the United States: Employee represents, utrder penalty of
perjury, that he is authorised to work in the United States. In accordance with §274A (8 USC
1324) of the Irmrrsigratiot) Refon-n and Control Act of 1980 before this Agreement can become
effective, Employee artist provide documentary evidence to City consistent with the Act, that he
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is legally entitled to worm in the United Mates, and must execute the verification required by that
Act.
12. Cell 1PhoneNehiele: Employee will be provided with a Cell Phone for
employment related use at the City's expense on terms consistent with other Executive
Managers. Employee will also be provided with access to the Administration Fool Car for work
related use on an as available basis.
1.3. Notice. All notices required herein shall be sent first class mnail to the paries as
follows:
To CITY: City of Lodi
P. O. Box 3€106
Lodi, CA 95241-1910
To EMPLOYFM Janes Krueger
1976 Carmel Circle,
Lodi, California 95242
Notice shall be deemed effectively served upon deposit in the United Mates mail.
14. Entire _A rKfjment. This Agreement contains the entire agreement bewfeen the
parties hereto. No promise, representation, warranty, or covenant not included in this
Agreement has been or is relied on by any party hereto. This Agreement may only be
amended by written instrument signed by Employee and the City Manager and
specifically approved by the City Council in open. session.
{CONI TINJ.JED ON NEXT PAGE
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J 5. Severability: if any provision of this Agreement is invalid or unenforceable, it shall
be considered deleted herefrom and the remainder of this Agreement shall be unaffected
and shall continue in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
written above.
ATTEST:
ME
1✓N PLOYEE
ja nes Krueger
CITY OF LODI, a municipal corporation
By:
Susan Blackston
City Clerk.
Blair Ling
City Manager
APPROVED AS TO FORD.
Steve Schwabauer
City Attorney
_5-
CITY OF LODI
December 21, 2005
Under the direction of the City .Manager, plans, coordinates, and organizes the overall
administrative ftnnctions of the City. Provides direction., management, and coordination of
activities for the Hun an Resources, Budget/Revenue/Treasury, Financial Services, and
Information Systems Divisions, and represent the City in employee relations. Foster cooperative
working relationships with community groups, inter- goveir mental agencies, and staff; and
provides staff assistance to the City Manager and City Council.
This single position classification is a management level position in the City Manager's office.
This position is responsible for assisting the City Manager in developing, planning,
implementing, and. administering City-wide goals and objectives as well as policies and
procedures necessary to provide City services. This position may be assigned overall.
administrative responsibility for all City activities in the absence of the City Manager.
EXAMPLES OF DUTIES
Duties may include, but are not limited to the following;
Administrative Functions:
• Provides assistance and advice to the City's management staff; coordinates inter-
departmental activities as well as City activities with outside agencies and organizations.
• Assists the City Manager in the development and administration of the City's budget;
analyzes and forecasts City revenues and expenditures; monitors expenditures.
« Directs, oversees, and participates in a variety of activities within the City Manager's (.efface;
assigns work activities, projects, and programs; nnonitors work flow, reviews and evaluates
work products, methods, and procedures.
• Performs or supervises comprehensive management analyses in a wide range of municipal
policies, organization, procedures, budgetary, and finance areas; prepares and presents staff
reports and other necessary correspondence.
Deets with members of the public including members of the business community and citizen
groups to develop prograrns and irnplernent projects to solve city service problems and
explain City policies, procedures, goals, and objectives; negotiates agreements and resolves
difficult City administration related problems and questions.
• Provides staff assistance to the City Council, committees, commissions, and the City
Manager in matters related to a wide variety of City administration activities and programs.
• Reviews and responds to citizen complaints or requests for information; oversees the
preparation of City publications.
CLASS SPECIFICATION CITY OF LOBI
Deputy City Manager/Internal Services Manager Director
Page 2 of 3
1, ,
Manages all activities throughout the City related to the broad function of human resources.
This includes the monitoring of recruitment and selection, position control, classification and
compensation, benefits administration, equal opportunity, management development,
performance appraisal, risk management functions, labor relations, negotiations, general
audits, and administration of agreements with employee organizations.
Finance "unctions:
Fiscal rnataagement, budget process and preparation., administration and operation of the
City's finance divisions which include Accounting, utility Billing & Collections, Purchasing,
and Budget/Revenue/Treasury. The incumbent is responsible for formulating financial
policy, and managing the day-to-day financial operations of the City.
Information Systems Functions:
Coordinates the implementation of information systems to achieve City-wide goals and
objectives, Recommends long-term plans and strategies for effective utilization of
information technology systems. Monitors management systems, work flow analysis, and
reviews and evaluates existing programs, and. procedures. Oversees contract negotiations and
authorizes final contract agreements with vendors for implementation.
NI 't H ��T
® Modern and highly complex principles and practices of municipal government
administration, organization development, economic development functions and services.
* Principles of personnel administration, supervision, and training.
« Methods and techniques of public administration research, analysis, and report preparation.
o Principles and practices of municipal budget preparation and administration.
* Pertinent Federal, Mate, and local laws, codes, and regulations.
® Select, supervise, train, and evaluate professional staff:
Interpret applicable laws, rules, and regulations.
Prepare and analyze fiscal and organizational reports, statements, and correspondence.
o Analyze, interpret, summarize, and present administrative and technical information and data
in an effective manner.
w Develop, prepare, and administer a large municipal budget.
* Establish and maintain cooperative working relationships with City Council members, staff,
committee members, public officials, business leaders, and the general public.
* Communicate clearly and concisely, both orally and in writing.
CLASS SPECIFICATION CITY OF LORI
Deputy City Manager/Internal Services Manager Director
Page 3 of 3
Any combination equivalent to experience and education that would likely provide the required
nowledges and abilities would be qualifying. A. typical combination is:
Education -
Possession of a Bachelor's degree from ars accredited college or university, with. major course
work in public administration, finiance or a closely related field. A Master's degree in. public
administration is highly desirable.
Ten years of management experience and four of those years must demonstrate experience in
financial management and human resources, preferably in a public agency or governmental
setting.
LICEN ES AND CERTIFICATES,
Possession of an appropriate, valid Driver's License from the California Department of
Motor Vehicles.
Prepared by Human Resources
May 2005
Prepared by Human Resources
L W
Library
Board 11 11 City Attorney
Library
Community Center CommunityI I Electric Utft
I I Development
Citizens
Lqu&=I
City Manager
City Clerk
Fire Parks and Police
I I Recreation I I
Boards and
Commissions
Deputy C*
manager/Internal
Services Director
Public Work!3 Internal Services
I I Department
12/21/05
Flnandaloemces
BudgeURevenuel
Human Resources
information Systems
Systems
L=
Treasury Division
Division
Divis7in
12/21/05
�t a
12121105
Treasury Division
12121/05
Human Resources
Manager
(vacant until 711107)
Administrative
Administrative Clerk-�—H Secretary -
Canfidential Confidential
Risk Personnel
Management I I Services
Management Analyst
Risk Manager Tra€nee/l/li
HIS Technician
12/21/05
Network
Administrator
Network
Technician (2)
Information
Systems
Coordinator
Data Processing
Manager
9=
Information
Systems
Manager
Sensor Programmer Information Systems Information Systems
Analyst I I Specialist I i Analyst
12/21/05