HomeMy WebLinkAboutAgenda Report - October 21, 2015 I-03AGENDA ITEM
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Amending Section 7 (b) of City Manager's Employment
Agreement
MEETING DATE: October 21, 2015
SUBMITTED BY: Mayor
RECOMMENDED ACTION: Adopt Resolution Amending Section 7 (b) of City Manager's
Employment Agreement.
BACKGROUND INFORMATION: Section 7 (b) of the City Manager's current employment contract
states that the City Manager shall at all times be the highest paid
City employee. For purposes of this section, pay is measured as
including salary, health benefits and retirement benefits (deferred compensation and PERS). A proposal
is before Council to revise this provision of the City Manager's employment contract to state that the City
Manager shall at all times be the highest paid City employee in terms of base salary.
It is proposed that the reference to health benefits and retirement benefits be removed from the method
of measuring compensation.
FISCAL IMPACT: Removal of the health and retirement components from the calculation of
pay in the City Manager's contract for this purpose will allow for competitive
salaries in the executive management positions without forcing an increase
in the City Manager's pay. There is no salary adjustment as a result of this
amendment.
FUNDING AVAILABLE: Not applicable
Johnson
Mayor
APPROVED: 1f
"I
Bob Johnson, Mayor
CONTRACT AMENDMENT TO CITY MANAGER
EMPLOYMENT AGREEMENT
THIS CONTRACT AMENDMENT made and effective this day of October, 2015, by
and between the CITY OF LODI, a municipal corporation, hereinafter called "City", and
Stephen Schwabauer, hereinafter called "Employee."
WITNESSETH:
1. CONTRACT: City and Employee, entered into a City Manager Employment Agreement
on June 4, 2014. City and employee now desire to amend the Agreement.
2. FIRST AMENDMENT: City and Employee now wish to amend Section 7 (b) of the Lodi
City Manager's Employment Agreement, to remove the reference to benefits from the
method of measuring the City Manager's pay, and shall read as follows:
7. COMPENSATION:
(b) City agrees that Employee shall at all times be the highest paid City
employee in terms of base salary. Salaries approved by the City
Manager through authority derived from the City Council will not trigger
this salary differential provision (i.e., only salaries originated, directly
reviewed and approved by the City Council will trigger this provision).
3. TERM AND TERMS: All other terms and conditions, including compensation paid tc
Employee, will remain as set forth in the City Manager Employment Agreement,
attached hereto as Exhibit A and made a part hereof as though fully set forth herein.
CITY OF LODI, a municipal corporation EMPLOYEE:
BOB JOHNSON
Mayor
Attest:
JENNIFER M. FERRAIOLO
City Clerk
Approved as to Form:
JANICE D. MAGDICH
City Attorney f
STEPHEN SCHWABAUER
City Manager
RESOLUTION NO. 2015-187
A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING AMENDMENT TO SECTION 7(b) OF THE LODI
CITY MANAGER'S EMPLOYMENT AGREEMENT
WHEREAS, Section 7(b) of the Lodi City Manager's current employment
contract states that the City Manager shall at all times be the highest-paid City
employee; and
WHEREAS, for purposes of this section, pay is measured as including salary,
health benefits and retirement benefits (deferred compensation and PERS); and
WHEREAS, due to the widening gap between the PERS rates for Miscellaneous
employees (i.e., City Manager) and Safety employees (i.e., Police and Fire Chiefs), a
proposal is before Council to revise this provision; and
WHEREAS, PERS retirement rates for Fiscal Year 2015/16 are 19.994 percent
for Miscellaneous employees and 40.870 percent for Safety employees; and
WHEREAS, the proposal presented to the City Council is to remove the
reference to PERS retirement benefits from the method of measuring the
City Manager's compensation; and
WHEREAS, removal of the PERS retirement component from the calculation of
pay in the City Manager's contract for this purpose will allow for competitive salaries in
the noted Safety positions without forcing an increase in the City Manager's pay.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve amending Section 7(b) of the Lodi City Manager's Employment Agreement
dated June 4, 2014, to remove the reference to PERS retirement benefits from the
method of measuring the City Manager's pay.
Dated: October 21, 2015
I hereby certify that Resolution No. 2015-187 was passed and adopted by the
Lodi City Council in a regular meeting held October 21, 2015 by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi,
and Mayor Johnson
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
NIFER FERRAIOLO
City Clerk
2015-187