Date post: | 13-Apr-2018 |
Category: |
Documents |
Upload: | l-a-paterson |
View: | 221 times |
Download: | 0 times |
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 1/7272
To:
From:
Subject:
CITY OF CARMEL-BY-THE-SEA
Council Report
December
3,
2013
Members of the City Council
Consideration
of
a Resolution Amending
the
Employment Agreement
of
City Administrator, Jason Stilwell
Recommendation s):
Adopt the attached Resolution
Attachment
I) amending the City
Administrator s Employment Agreement
Attachment
II).
Executive Summary:
Jason Stilwell assumed the position of City Administrator on September
28,
2011. The City Council has reviewed the City Administrator s Contract
and is recommending certain changes to its length, retirement provisions
and tot l compensation.
Analysis/Discussion:
The City Administrator s current agreement runs through September
28,
2014. The City Council desires to ensure Jason Stilwell s continued
employment with the City of Carmel-by-the-Sea and is recommending
an
Amendment
to
the terms of the Agreement including, extending it until
September 28, 2017, requiring Stilwell to contribute a portion of the
required employer contribution
for
retirement equal to 3 of reportable
compensation, and modifications to salary and certain benefits.
The Amendment also addresses the cost difference in retirement tiers.
When the original employment agreement was drafted it anticipated th t
Stilwell would be placed in the second retirement
tier
upon its
implementation. Due to
CALPERS
legal constraints the City
Administrator s retirement benefits could not be reduced. The contract
Amendment acknowledges and addresses
the
intent
of
the parties
th t
Stilwell would have moved to the Tier
II
retirement plan which would
have resulted in a lower City contribution and cost.
To
recover this cost
1
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 2/7273
Fiscal Impact:
and to comply
with
the
intent of
the parties Stilwell will pay the City
for
the difference between the tiers. Before January 15, 2014, Stilwell will
pay an amount equal to four thousand two hundred eighteen dollars
( 4,218.00}. This represents the difference between the cost of Tier I and
the Tier
II
retirement plans based on CALPERS actuarial assumptions.
Stilwell will continue
to
make the payment contribution through payroll
deductions beginning in January 2014. The City will engage
an
actuary
to
continue to review the cost difference between the Tiers and the
payment amount may be adjusted in the
future
.
The Amendment modifies certain compensation, and
allowances/benefits including a revised salary of one hundred eighty-five
thousand three hundred and twenty-five ( 185,325.00) effective
September 28 2013. The current automobi le allowance will
be
increased
one hundred dollars ( 100.00) per
month
from
three
hundred fifty
dollars ( 350.00} per month
to
four
hundred
fifty
dollars ( 450.00}
per
month. The deferred compensation contribution will be increasing three
hundred dollars ( 300.00), going from five hundred fifty dollars { 550.00)
per month to eight hundred fifty dollars ( 850.00)
per
month.
A new provision has been added that provides a 5,000 performance
incentive/retention payment. This
is
a one-time non-base building
amount. The City Administrator will also be eligible for additional
performance incentives tied to the accomplishment of the City's key
initiatives and goals. This amount will be determined by the City Council
and not exceed 8,000. This will also be a one-time, re-earnable, non
base building payment
An additional new provision is added in the Amendment solely for the
establishment of an annual performance pool for the Senior
Management Team and their performance in achieving the City's key
initiatives and goals. The City Council will be responsible for establishing
the
pool. Pool compensation will be non-base building and re-earnable
and based on the City Administrator's assessment of the Senior
Management Team's performance.
The Amendment reflects modest changes in compensation, salary and
benefits. The current cost is approximately 13,000. f this amount, the
actual ongoing costs associated with the outlined changes are
approximately 8,000 annually due
to
the City Administrator contributing
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 3/7274
Budgeted (yes/no}:
Yes
more toward the cost of retirement. Additionally there is a one-time cost
associated with
the
5,000 performance incentive. The total annual cost
would have been approximately 14,000. However, this amount is
reduced by the City Adminis trator paying approximately 4,218.00
annually for the difference between the Tier I and Tier II reti rement plans
and approximately 1,853 for the 3 contribution towards the
employer's contribution for retirement.
As
stated,
the
5,000 is a one
time cost and
it
is anticipated
that
there will be additional one-time costs
associated with performance incentives and the performance pool. The
fiscal impact of these costs
is
estimated to be 8,000 to 16,000
depending on how much of the performance incentive is earned.
Funding Source( general fund, grant, state):
General Fund
Previous Council
Action/Decision History:
Reviewed by:
City Administrator D
Asst. City
Admin .
Public
Safety Dir
D
D
Attachments:
City Attorney
D
Dir
ofCPB
Library
Dir
D
D
Administrative Services
D
Dir
of
Public Svcs
Other
D
D
ttachment I Resolution amending
the
City Administ rator's Employment Agreement
ttachment II Contract Amendment
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 4/7275
ATTACHMENT I
ITYOF
CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
ADOPTING AN AMENDMENT
TO
THE
EMPLOYMENT AGREEMENT WITH JASON
STILWELL CITY ADMINISTRATOR
WHEREAS, the City Council has reviewed the City Administrator s performance and Employment
Agreement; and
WHEREAS, the City Council desires to ensure City Administrator Stilwell s continued employment; and
WHEREAS, the City Council wishes to amend the City Administrator s Employment Agreement.
NOW, THEREFORE,
BE
IT
RESOLVED THAT THE CITY COUNCIL OF
THE
CITY OF CARMEL
BY-THE-SEA does hereby:
1. Adopt an Amendment to the Employment Agreement with Jason Stilwell, City Administrator.
PASSED ND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this
rd day ofDecember
2 13
by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Daryl A. Betancur, CMC
Deputy City Clerk
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
SIGNED
Jason Burnett,
MAYOR
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 5/7276
TT CHMENTII
l l R S T M E N D M E N T T O E ~ L O Y M E N T G R E E M E N T
CITY DMINISTR TOR
This First Amendment to Employment Agreement ( First Amendment ) is entered into
effective the day
of
2013, by and between the CITY OF CARMEL-BY-
THE SEA (the CITY ) and JASON STILWELL ( STILWELL ) for the purpose
of
amending
the Employment Agreement between the CITY and STILWELL (the Parties ) dated September
28, 2011 (the Agreement ).
The Parties agree as follows:
Modifications to Retirement Contributions
1
Section H(2)(f)
of
the Agreement is revised to read in its entirely as follows:
STILWELL is enrolled in the Tier I retirement plan with CalPERS (2% at age 55, F AS I).
STILWELL acknowledges that it was the intent
of
the parties to the Agreement that upon the
CITY's adoption
of
the Tier II retirement plan with CalPERS (2% at age 60, FAS 3), which
occurred in November 2012, that STILWELL would move to that Tier II plan which would
result in a lower CITY contribution to CalPERS on behalf
of
STILWELL. STILWELL further
acknowledges that the parties later determined that STILWELL would be unable to move to the
Tier II plan due to restrictions under the laws and regulations governing CalPERS , resulting in
the CITY contributing an amount to CalPERS on behalf
of
STILWELL in excess
of
what the
parties intended, which amount is currently 2.39%
of
STILWELL's reportable compensation,
and which percentage amount may increase or decrease from year to year (the PERS
Overpayment/Underpayment ). To recover this PERS Overpayment/Underpayment and to
comply with the intent
of
the parties, STILWELL agrees that a) on or before the forty-fifth
45th)
day after the City Council
of
the CITY approves this First Amendment, STILWELL will pay the
CITY for the PERS Overpayment/Underpayment for the period from November 1, 2012 through
October 31, 2013, which is equal to four thousand two hundred eighteen dollars ($4,218.00); 2)
on or before January 15, 2014, STILWLL will pay the CITY for the PERS
Overpayment/Underpayment for the period from November 1, 2013 through December 31, 2013,
which is equal to $703.00; 3 effective the first pay period beginning in January 2014,
STILWELL will pay the CITY for the PERS Overpayment/Underpayment by payroll deduction
in an amount equal to 2.39%
of
his reportable compensation; and 4) in the event that an actuarial
analysis performed by a CITY -engaged actuary
or
by CalPERS determines that the amount
of
the difference between the
CITY's
contribution for the Tier I plan and for the Tier II plan is other
than 2.39%, the amount
of
the PERS Overpayment/Underpayment will be adjusted within sixty
(60) days
of
this determination to reflect this actuarially determined contribution difference.
2. Add section H(2)(g) to read as follows: As soon as practicable after the effective
date
of
CITY's compliance with the provisions
of
Government Code section 20516 to allow
unrepresented employees to pay a portion
of
the employer contribution toward CalPERS,
STILWELL will contribute a portion
of
the required employer contribution through payroll
deduction equal to 3
of
his reportable compensation.
DOCSOC/ 1644821v4/102910-0001
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 6/7277
Modifications to Compensation and llowances
3
Section F l) of the Agreement is revised
to
read in its entirely as follows: The
CITY agrees to pay STILWELL the sum of one hundred eighty-five thousand three hundred
twenty-five dollars ($185,325.00), in salary per annum effective September 28, 2013, payable in
installments at the same time as other employees
of
the CITY are paid subject to customary
withholding.
4 Section G
of
the Agreement is revised to read in its entirely as follows: In
recognition ofthe need for STILWELL to travel on CITY business from time to time, the CITY
shall pay STILWELL the sum of four hundred fifty dollars ($450.00) per month as an
automobile allowance effective the first day of the pay period starting after the City Council
of
the CITY approves this First Amendment.
5 Section H(2)(e) of the Agreement is revised to read in its entirely as follows:
The CITY shall make a monthly contribution to a 457 Deferred Compensation Account on
behalf
of
STILWELL in the amount
of
eight hundred fifty dollars ($850.00) per month effective
the first day of the pay period starting after the City Council of the CITY approves this First
Amendment.
6
Add section H(2)(h) to read as follows: In light
of
increases in the
job
responsibilities ofthe City Administrator, and as an incentive toward future performance and
retention, STILWELL will receive a one-time only five thousand dollar ($5,000.00)
incentive/retention payment within forty-five (45) days after the City Council of the CITY
approves this First Amendment.
7. Add section H(2)(i) to read as follows: Upon STILWELL's submission of a
written analysis in January 2014 reflecting, to the satisfaction
of
the CITY, that the CITY
achieved its Key Initiatives and Goals, STILWELL will receive a one-time only performance
incentive in such amount as may be determined in the sole discretion
of
the City Counsel, up to a
maximum amount of eight thousand dollars ($8,000.00), payable within forty-five (45) days of
the date the City Council receives the written analysis from STILWELL consistent with the
terms of this provision.
Modification
o
Duties
8. Add new section I(2) (numbering existing section I as I(1) to read as follows:
STILWELL acknowledges that it is the intent
of
the City Council
to
establish an annual
performance pool for the senior management team, including the City Administrator, for
calendar year 2014. Compensation adjustments, if any, for the senior management team will be
based on the senior management team achieving the Key Initiatives and Goals for the CITY.
The amount of the performance pool will be determined by the City Council. The allocation of
such pool to the members
of
the senior management team based on the achievement of the Key
Initiatives and Goals for the CITY will be determined in the discretion of the City
Administrator.
DOCSOC/1644821 v4/102910-000 I
7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf
http://slidepdf.com/reader/full/resolution-amending-the-employment-agreement-of-city-administrator-jason-stilwell 7/7278
Modification
o
Term
9
Section B(1)
of
the Agreement is revised to read in its entirely as follows: This
Agreement and STILWELL's employment with the CITY shall terminate effective September
28, 2017 unless terminated earlier by either party in accordance with the provisions set forth in
Article
D
of
this Agreement, or until terminated by death or permanent disability
of
STILWELL.
No Further Changes
10 . Except as expressly provided above, the remaining terms of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the City Council has caused this First Amendment to be signed and
executed in its behalf by its MAYOR. It has also been executed by STILWELL.
Jason Stilwell Date
CITY OF CARMEL-BY-THE SEA
Jason Burnett, MAYOR Date
-3-
DOCSOC/1644821 v4/l 02910-0001