resolution amending the employment agreement of city administrator jason stilwell 12-03-13.pdf

7/27/2019 Resolution Amending the Employment Agreement of City Administrator Jason Stilwell 12-03-13.pdf

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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



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



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



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



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



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



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

resolution amending the employment agreement of city administrator jason stilwell 12-03-13.pdf

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