Item Coversheet
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report 

November  3, 2020
ORDERS OF BUSINESS

TO:

Honorable Mayor and City Council Members 
SUBMITTED BY:

Jan Reimers, Council Member
APPROVED BY: 

Chip Rerig, City Administrator
SUBJECT:

Resolution 2020-077 authorizing the Mayor to execute a fourth amendment to the City Administrator At-Will Employment Agreement effective November 1, 2020

 
RECOMMENDATION:

Adopt Resolution 2020-077 authorizing the Mayor to execute a fourth amendment to the City Administrator At-Will Employment Agreement effective November 1, 2020.

BACKGROUND/SUMMARY:

The City Administrator position is an appointee of the City Council and therefore is employed under an Employment Agreement specifying the terms and conditions of employment.  On February 6, 2016 the City Council authorized and offered the position of City Administrator to Chip Rerig effective March 1, 2016 and set forth the terms and conditions of employment in a written “Employment Agreement” (Exhibit A).  The terms and conditions of employment include items such as base salary and performance evaluations, benefits and termination of employment/severance. 

 

As indicated in Section 7 of Mr. Rerig’s employment agreement:

 

The City Council shall evaluate Administrator’s performance at least six (6) months from the date of Administrator’s appointment, and at least twelve (12) months every year thereafter, or on any schedule deemed appropriate by the City Council.  Said review and evaluation shall be in accordance with specific objectives developed by the City Council in consultation with Administrator. 

 

The City Council is committed to providing an annual evaluation using the performance evaluation tool that was created by Municipal Resource Group (MRG).  Based on the performance indicators such as:  Leadership and Management, Community Relationships/External Leadership, Financial Management, and Strategic Visioning for the Organization’s Future, the City Council discussed this over the course of five (5) closed session meetings (March 2, July 6, September 22, October 5 and October 22).  The City Council and employees throughout the organization were asked to respond to written questions and virtual interviews were held with each council member.  Based on the 360 degree survey by employees, interviews by City Council, and the performance indicators, Mr. Rerig’s performance over the previous year and half (November 2018 through July 2020), received a “highly competent” performance overall rating.  In addition, as part of the review, goals were set for the coming year and will be reviewed quarterly.  The City Council will modify his employment agreement as follows:

 

·         Extend contract from March 1, 2023 to March 1, 2025.

·         40.0 hours additional executive leave (one-time basis) and must be used by December 31, 2021.

·         Use of City Take Home Vehicle. 

Senate Bill 1436, requires a local agency’s legislative body, prior to taking final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive (i.e., City Administrator), to receive an oral report in an open meeting and requires a summary of a recommendation for a final action.  The City Administrator’s Employment Agreement – Fourth Amendment will be modified as follows:

   4.  Term:  City Administrator’s employment commenced March 1, 2016, and shall continue until March 1, 2025, or the date of earlier termination in accordance with provisions in this Agreement.  Commencing March 1, 2018, and on every succeeding March 1st thereafter while this Agreement is in effect, and on the condition that Administrator receives positive performance reviews in the two preceding years, this Agreement shall be automatically extended for two (2) additional years unless prior to that date the City Council notifies Administrator of its intention not to extend the Agreement for two additional years.  The City Council’s election not to extend this Agreement shall not entitle Administrator to Severance pursuant to Section 6 of this Agreement.

 

8.         Benefits

 

F. No Car Allowance / Use of City Take Home Vehicle.  City Administrator’s duties require him to be available and to respond to the demands of City business at all times and outside of regular business hours, including weekends.  City shall not pay City Administrator a monthly car allowance but permit City Administrator to use a City-owned vehicle for business purposes, to commute to or from work, and for personal purposes.

 

    L. Vacation, Sick, Executive, and Bereavement Leave

 

Executive LeaveIn recognition of his prior service to the City, City Administrator was deemed to have accrued 80 hours of Executive Leave on the date of commencement of employment.  Thereafter, the City has granted and will continue to grant 80 hours of Executive Leave on July 1 of each year.  In addition, City will grant City Administrator a one-time bank of 40 executive leave hours, for a total of 120 hours; these additional 40 executive leave hours must be used by December 31, 2021.  Executive Leave shall not roll over from year to year.  Executive Leave shall have no cash value and may not be cashed out during or at the end of Administrator’s tenure with the City.

 

All other terms in the agreement remain the same.

 

Note:  This item was reviewed and approved by Mayor Dave Potter and Councilmember Jan Reimers.  Then, Maxine Gullo, Assistant City Administrator submitted and approved accordingly not Chip Rerig, City Administrator.   This agenda template is hard coded that Chip Rerig, City Administrator approves all City Council agenda items and we were unable to modify/change it before agenda publication.

 

FISCAL IMPACT:

The City Administrator’s salary and benefits are authorized in the annual budget fiscal year along with all other City employee compensation and benefits. 

PRIOR CITY COUNCIL ACTION:

Resolution 2016-012:  A Resolution of the City Council of Carmel-by-the-Sea Authorizing the Mayor to execute an employment agreement between the City of Carmel-by-the-Sea and Chip Rerig, City Administrator.

 

Resolution 2017- 088: A Resolution of the City Council Approving the First Amendment to the City Administrator At-Will Employment Agreement.

 

Resolution 2018-110:  A Resolution of the City Council of the City of Carmel-by-the-Sea authorizing the Mayor to execute a Second Amendment to the City Administrator At-Will Employment Agreement effective March 1, 2018.

 

Resolution 2020-034:  A Resolution of the City Council of the City of Carmel-by-the-Sea authorizing the Mayor to execute a Third Amendment to the City Administrator At-Will Employment Agreement effective June1, 2020.

 

ATTACHMENTS:
ATTACHMENTS:
Description
Attachment #1 - Resolution 2020-077 City Administrator Fourth Amendment
Exhibit A_Fourth Amendment. to City Administrator Agreement