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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/02/2008 - ITEMS RELATING TO THE CONTRACT AND COMPENSATION OF ITEM NUMBER: 38 AGENDA ITEM SUMMARY DATE: December2, 2008 FORT COLLINS CITY COUNCIL STAFF: Janet Miller SUBJECT Items Relating to the Contract and Compensation of the City Manager. STAFF RECOMMENDATION Not applicable. EXECUTIVE SUMMARY A. Resolution 2008-126 Approving a First Addendum to the City Manager's Employment Agreement. B. First Reading of Ordinance 159,2008,Amending Section 2-596 of the City Code and Setting the Salary of the City Manager. City Council met in executive session on November 18 and November 25, 2008 to conduct the performance review of City Manager Darin Atteberry. Ordinance No. 159, 2008, establishes the salary of the City Manager. BACKGROUND City Council is committed to compensating employees in a manner which is fair, competitive and understandable. The goal as an employer is to attract and retain quality employees and to recognize and reward quality performance. In order to accomplish this goal the City Council and the City Manager meet twice a year to discuss performance and set goals for the coming year. In 2008, the total compensation paid to the City Manager included the following: December 2, 2008 -2- Item No. 38 2008 SALARY AND BENEFITS ANNUAL NON-MONETARY BENEFITS Salary $ 176,455 Vacation(30 days per year) Medical Insurance 9,240 Holidays (1 I days per year) Dental Insurance 600 Life Insurance 510 Long Term Disability 1,394 ICMA (457) 5,294 ICMA (401) 17,646 Car Allowance 9,000 Total Monetary Compensation $ 220,138 The resolution establishing the process for evaluating the performance of the City Manager, City Attorney, and Municipal Judge states that any change in compensation for the City Manager, City Attorney and Municipal Judge will be adopted by the Council by ordinance in sufficient time for the change in compensation to take effect as of the first full pay period of the ensuing year. Ordinance No. 159, 2008, will establish the 2009 salary of the City Manager. In addition, the Council has agreed to consider amendments to the City Manager's employment contract that would: • increase the amount of annual vacation leave that can be converted to cash in a particular year from 80 hours to 120 hours (without increasing the amount of annual vacation leave); • state that the City Manager's rate of vacation accrual will be pro-rated on a bi-weekly basis in accordance with the number of pay periods in each year; • clarify that the City Manager's service as a member of the board of directors of community organizations will be considered to be within the performance of his duties to the City; and • clarify that, except as otherwise provided in the Employment Agreement, all benefits and working conditions that apply to service area directors of the City shall apply to the City Manager as well. Resolution 2008-126 would approve these changes. RESOLUTION 2008-126 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING A FIRST ADDENDUM TO THE CITY MANAGER'S EMPLOYMENT AGREEMENT WHEREAS, Darin A. Atteberry has been employed by the City Council as City Manager since December, 2004 and has served the City well in that capacity; and WHEREAS,the City and Mr.Atteberry have previously entered into that certain employment agreement dated December 21, 2004 ("Employment Agreement"); and WHEREAS, the Council and Mr. Atteberry have agreed to revise the Employment Agreement to: • increase the amount of annual vacation leave that can be converted to cash in a particular year from 80 hours to 120 hours(without increasing the amount of annual vacation leave); • state that the City Manager's rate of vacation accrual will be pro-rated on a biweekly basis in accordance with the number of pay periods in each year; • clarify that the City Manager's service as a member of the board of directors of community organizations will be considered to be within the performance of his duties to the City; and • clarify that,except as otherwise provided in the Employment Agreement,all benefits and working conditions that apply to service area directors of the City shall apply to the City Manager as well. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the First Addendum to the City Manager's Employment Agreement,attached hereto as Exhibit "A" and incorporated herein by this reference, is hereby approved by the City Council, and the Mayor is hereby authorized to execute the First Addendum substantially in the form shown on Exhibit "A" with such modifications, if any,as the Mayor may, upon consultation with the City Manager and Mayor Pro Tern, consider to be in the best interests of the City. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 2nd day of December A.D. 2008. Mayor ATTEST: City Clerk EXHIBIT " A" FIRST ADDENDUM TO THE CITY MANAGER' S EMPLOYMENT AGREEMENT THIS FIRST ADDENDUM is made and entered into this day of December, 2008 , by and between the City of Fort Collins, Colorado, a municipal corporation (hereinafter referred to as the "City") and Darin A. Atteberry (hereinafter referred to as "Atteberry") . WITNESSETH . WHEREAS , the City and Atteberry have previously entered into that certain agreement dated December 21 , 2004 (hereinafter referred to as the "Employment Agreement") ; and WHEREAS, the City Council and Atteberry have agreed upon certain modifications to the Employment Agreement which they wish to set forth in this First Addendum to the Employment Agreement. NOW, THEREFORE, in consideration of the mutual promises and benefits contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree to amend the terms and conditions of the Employment Agreement as follows : Section 1 . That Subsection A. ( 1 ) of Section IV of the Agreement, pertaining to Vacation and Sick Leave, is hereby amended so as to read in its entirety as follows : SECTION IV. VACATION AND SICK LEAVE A. Atteberry shall be granted thirty (30) days of annual vacation leave, commencing as of the first pay period in January, 2005 . Five (5) days of such vacation leave shall be credited to Atteberry as of the first full pay period of each year. The remaining balance of twenty five (25) days of annual vacation leave shall accrue throughout the remainder of each such calendar year a*�i- Weekly aeon'- ratpa. of 7 60 hollr-sand be pro-rated on a biweekly basis . Notwithstanding any City policy to the contrary, vacation leave accrued and unused by Atteberry shall be subject to the following terms and conditions : ( 1 ) At any time during the term of this Agreement, but not more than twice annually, Atteberry may elect to receive the cash equivalent of a portion of his accrued, unused vacation, based upon his then current rate of pay; provided, however, that no more than eighty 0)one hundred 1 twenty ( 120) hours of accrued, unused vacation leave may be converted to a cash payment in any given calendar year. The amount of said payment shall be based upon Atteberry' s current rate of pay at the time of conversion. Section 2 . That the title of Section V. of the Agreement, pertaining to Disability, Health and Life Insurance, is hereby amended to read "Section V. Disability, Health, Life Insurance and Other Benefits," and a new Subsection C . is added to read as follows : C . All provisions of the City Charter and Code, and regulations and rules of the City relating to other fringe benefits and working conditions shall also apply to Atteberry as they would to service directors of the City, unless said benefits and working conditions are otherwise specifically set forth in this Employment Agreement. Section 3 . That Section X of the Agreement, pertaining to Community Activities, is hereby amended so as to read in its entirety as follows : SECTION X. COMMUNITY ACTIVITIES The City recognizes the desirability of Atteberry participating in service and charitable organizations in the community and in the event Atteberry becomes a member of such service and charitable organizations, the City will pay all reasonable expenses and fees related to such membership . In the event that Atteberry becomes a member of the board of directors of a community organization based on his position as City Manager, his duties as such director shall be considered to be within the scope of his duties as City Manager for purposes of the indemnification provision set forth at Section XV of this Agreement. Section 4 . Except as expressly amended by this First Addendum, all other terms and conditions of the Employment Agreement shall remain unchanged and in full force and effect. 2 IN WITNESS WHEREOF, the parties hereto have caused this First Addendum to the City Manager' s Employment Agreement to be executed as of the day and year first above written. THE CITY OF FORT COLLINS , COLORADO A Municipal Corporation By : Mayor ATTEST : City Clerk EMPLOYEE : Darin A. Atteberry 3 ORDINANCE NO. 159, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 2-596 OF THE CODE OF THE CITY OF FORT COLLINS AND SETTING THE SALARY OF THE CITY MANAGER WHEREAS , pursuant to Article III, Section 1 of the City Charter, the City Council (the "Council") is responsible for fixing the compensation of the City Manager; and WHEREAS , the City of Fort Collins is committed to compensating its employees in a manner which is fair, competitive and understandable ; and WHEREAS , the City ' s pay philosophy is based on total compensation, which includes not only base salary but also deferred compensation payments, vacation and holiday leave, and amounts paid by the City for medical, dental, life and long-term disability insurance; and WHEREAS , the Council met with the City Manager to conduct a review and establish next year' s goals ; and WHEREAS , the Council believes that the base salary of the City Manager should be established at the amount of effective January 12, 2009, so that the total compensation paid to the City Manager in 2009 will be in the amount of —. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 2-596 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec . 2 -596. Salary of the City Manager. The base salary to be paid the City Manager shall be one hundred seventy-si� thousand four �mndred fifty-five dollars ($ 5 . ) per annum, payable in biweekly installments . Forty (40) percent of such sum shall be charged to the city electric utility, twenty (20) percent to the city water utility and forty (40) percent to general government expense. Section 2 . That the effective date of the salary adjustment referred to in Section 1 above shall be January 12 , 2009 . Introduced, considered favorably on first reading, and ordered published this 2nd day of December, A.D . 2008 , and to be presented for final passage on the 16th day of December, A.D . 2008 . Mayor ATTEST : City Clerk Passed and adopted on final reading on the 16th day of December, A . D . 2008 . Mayor ATTEST : City Clerk