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HomeMy WebLinkAbout2007/04/24 Item 5 CITY COUNCIL AGENDA STATEMENT ,S}1'f::.. CITY OF '~CHULA VISTA APRIL 24, 2007, Item..2- ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPOINTING DAVID R. GARCIA AS CITY MANAGER AND APPROVING TERMS AND CONDITIONS OF HIS EMPLOYMENT AGREEMENT SUBMITTED BY: "fA CITY ATTORNEY 0- 4/5THS VOTE: YES D NO ~ BACKGROUND The City Council directed that a resolution be prepared setting forth the terms and conditions for the initial employment of the new City Manager, David R. Garcia, as negotiated by the City Council with Mr. Garcia. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" in accordance with Section l5378(b)(2) of the State CEQA Guidelines because it is a personnel related action; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Adopt resolution appointing David R. Garcia as City Manager of the City of Chula Vista, approving the terms and conditions of his employment agreement with the City, and authorizing the Mayor to execute the agreement on behalf of the City. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION 5-1 April 24, 2007, Item----2- Page 2 of2 10 the summer of 2006, the City Council contracted with Bob Murray and Associates to conduct an executive search for a City Manager. Mr. Murray conducted an extensive nationwide search for a candidate based on criteria established by the City Council. On April 17, 2007, the City Council voted in closed session and announced immediately thereafter its intent to appoint David R. Garcia to the position. Since 2003, Mr. Garcia has served as the County Administrator of Yuma County, Arizona. He has also held the following positions: City Manager of Corpus Christi, Texas; Deputy City Manager of the City of Phoenix; Deputy Administrator of the City of Los Angeles' Community Redevelopment Agency; and Special Projects Director for the City of San Antonio. Mr. Garcia has been employed in executive level municipal management for the past 25 years. City of Chula Vista Charter Sections 400(a) and 500 provide that the City Council shall appoint the City Manager, who shall serve as the executive officer of the City. Section 400 further provides that the City Council shall fix the salary and other terms and conditions of the City Manager's employment. The negotiated salary for Mr. Garcia is $225,000 with other compensation and benefits set by and consistent with the City's Compensation Summary for Executive Management. This resolution formally appoints Mr. Garcia as City Manager, approves the employment agreement negotiated between the Council and Mr. Garcia, and authorizes the Mayor to execute the agreement on behalf of the City. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific; consequently, the 500-foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMPACT This agreement is within the amount budgeted for the position. ATTACHMENTS Resolution and employment agreement Prepared by: Sharon Marshall, Senior Assistant City Attorney, Attorney's Office J: IAttorneylSharonM\Agenda Statements \Dave Garcia _04-24-07. dot 5-2 RESOLUTION NO. 2007- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPOINTING DAVID R. GARCIA AS CITY MANAGER AND APPROVING TERMS AND CONDITIONS OF HIS EMPLOYMENT AGREEMENT WHEREAS, the City Council of the City of Chula Vista in closed session on April 17, 2007, agreed to appoint David R. Garcia as the City Manager of the City of Chula Vista by a vote of 5-0, and announced its intent to make that appointment immediately after the closed session; and WHEREAS, David R. Garcia has accepted the appointment; and WHEREAS, it is necessary and appropriate to establish the terms and conditions of the appointment. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that pursuant to Sections 400 and 500 of the Charter of the City of Chula Vista, the City Council appoints David R. Garcia as City Manager of the City of Chula Vista and establishes and approves the terms and conditions of his employment as set forth in the agreement, which is Attachment A and incorporated herein by reference. BE IT FURTHER RESOLVED that the City Council authorizes the Mayor to execute the agreement on behalf of the City. Presented by Approved as to form by Ann Moore City Attorney G-~ Ann Moore City Attorney J:lAttorney\RESO\HR\CITY MANAGER _ 04-24-07.doc 5-3 I THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL -~'(~ \'~'(+.,~\\ Ann Moore City Attorney Dated: \\ \''(1 \ \"3 -,7 (jc-;,l Agreement between the City of Chu\a Vista and David R. Garcia 5-4 AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND David R. Garcia This Agreement is made and entered into this 11th day of June, 2007, by and between the City of Chula Vista ("City"), a chartered municipal corporation ("Employer" or "Council") and David R. Garcia, ("Garcia" or "Manager"), with reference to the following facts: A. Whereas, the City Manager is an appointed position, as set forth by the City of Chula Vista Charter Section 500; and B. Whereas, the City Council desires to appoint Garcia as the City Manager; and C. Whereas, Garcia desires to accept employment as the City Manager; and D. Whereas the Council and Garcia wish to memorialize the terms and conditions of such employment. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Term and Nature of Employment. Nothing herein shall prevent, limit or otherwise interfere with the right of the Manager to resign from his position with the City provided however, that should Garcia resign within six (6) months from his date of appointment, for other than medical reasons, Garcia shall repay the City for all the relocation costs paid to him by the City. a. Employer agrees to pay the Manager an annual salary of $225,000, payable in the same manner as other employees of the City effective the first day of his employment with the City. b. The Employer shall pay the Manager's Public Employees Retirement System contribution. c. The Employer shall pay the Manager an automobile allowance of $1,000 per month. d. The Manager shall be able Compensation Program, provided responsible for paYlng for such with no match from the City. participate in the City's 401(a) from the City. to participate in the Deferred however, Manager shall be amounts from his gross salary In addition, Manager may plan with a 5% of salary match e. The Manager will receive the executive fringe benefit package, except as specifically set forth herein, and shall be covered by the same health, dental and disability insurance plans as all other executive employees. Coverage shall be in full force and effect immediately upon the Manager's start of full time employment with the City. f. The City shall provide Garcia policy in accordance with the City's package. with a executive life insurance fringe benefit g. outside will be hours a off from The City Manager position routinely requires working of normal business hours and on weekends. The Manager available to discharge these duties 7 days a week 24 day as needed. The Manager is authorized to take time work when appropriate and when duty allows. Section 3. Relocation Expenses. a. Employer shall pay for the normal and reasonable moving expenses for relocating Garcia, his family and personal property from Yuma, Arizona to Chula Vista. The moving expenses shall include packing, moving, storage costs for up to 6 months, unpacking, and insurance charges customarily charged by reputable moving companies. Garcia agrees to secure at least three (3) bids from reputable moving companies for such services and shall use the lowest responsible bidder. Employer agrees to pay the moving company for all such expenses directly. b. Employer agrees to reimburse Manager for other reasonable and normal costs necessary to secure housing and for any interim housing needs up to a maximum of $20,000, upon Garcia providing the City with receipts for said expenses. Section 4. Vacation and Sick Leave. a. highest Manager program Manager shall receive sick leave under the City's rate of accrual for executive managers. In addition, may participate in the City's "Sick Leave Buy Backff in accordance with existing City Policy. 2 b. Manager shall receive vacation leave under the City's highest rate of accrual for executive managers. c. The City will provide per year of administrative holidays. the Manager with eighty leave and three (3) (80) hours floating d. On the first day of employment with City, Garcia will be credited with a bank of 80 hours of vacation leave and 80 hours of sick leave. Section 5. Dues, Memberships. Employer agrees to pay, wi thin existing City Policy, for the professional dues, subscriptions, travel and related expenses In the following national, regional and local associations: 1. International City/County Management Association (ICMA). 2. League of California Cities. 3. National League of Cities. 4. San Diego County/City Managers Association. 5. National Academy of Public Administration Section 6. Severance Pay. a. In the event the Manager is terminated without cause, or if the Manager resigns in lieu of termination wi thin the first two (2) years of his employment, the Manager shall receive compensation in a lump sum cash payment equal to twelve (12) months of the Manager's annual salary and health insurance payments. The Manager will also receive payment for all accrued vacation leave. b. In the event the Manager is terminated without cause, or if the Manager resigns in lieu of termination after the first two (2) years of his employment, the Manager shall receive compensation in a lump sum cash payment equal to nine (9) months of the Manager's annual salary and health insurance payments. c. If the Manager is terminated for malfeasance in office or is convicted of a crime involving moral turpitude there will be no severance payments. 3 Section 7. Performance Evaluation. a. The Council shall review and evaluate the performance of the Manager wi thin the first six (6) months of Manager commencing employment with the City; the second performance review shall be at the end of six (6) months after the initial performance review, and then annually thereafter at the anniversary of his appointment. Employer and Manager agree that except for any cost of living adjustments provided to all city employees, any increase to the Manager's salary shall be based on such performance evaluations. b. In the event that the Council chooses to reduce the Manager's salary in a percentage greater than an across the board reduction applicable to all executive employees, the Manager will be deemed to be terminated and the provisions of Section 6.a. will apply. Section 8. Conflict of Interest Prohibition. The Manager shall not employment with the City, in specifically allowed below) Council: engage, during the term of his the following acti vi ties (except as without the prior consent of the 1. Invest or participate, ei ther individually, as a partner, officer, or shareholder, in any business, corporation, business venture or joint venture, which is conducting business in the corporate limits of Chula Vista, except for stock ownership in any company whose capital stock is publicly held and regularly traded. 2. Invest in any real estate or property wi thin the corporate limits of the City of Chula for a personal residence or residential property held for future use as Manager's personal residence. improvements Vista, except acquired or 3. Provide consulting services to any company, business venture or any other types of business entity conducting business in the corporate limits of Chula Vista. Section 9. Indemnification The Employer will defend and pay any costs and judgments assessed against Garcia arising out of any act or omission by Garcia which has occurred in the course and scope of the performance of his duties under this Agreement as permitted and 4 04/24/2007 18:02 8283731120 PAGE 01 provided by law, including without limi.tations California Code Sections 825, 995, and 995.2 through 995.8. This l'\greement is contingent upon 'the completion of d. pre- employment physical by Garcia. The undersigned parties conditions of this 1\greement the 11th day of June 2007. hereby agree and enter into to the termS and this Agreement on Cheryl Cox, Mayor ~ THE CITY OF CHULA VISTA Attest: Susan Bigelow City Clerk Approved as to form by: Ann Moore City Attorney J:\Attomay\SharonM\Agreements\Oav~d Garcia's. contract 4 24 07.doc 5