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HomeMy WebLinkAbout12 - City Manager Employment Agreement and Recruitment of New City Manager - Council CommentsApril 10, 2018 Item No. 12 April 10th Council Meeting Councilman Herdman's Comments on Agenda Item No. 12 1. First, I am concerned about the item placed on the Council agenda tonight dealing with the termination of our city manger's employment that was never discussed with, or authorized by the entire council. There are three council members who were left completely out of the process from the very beginning, The amendment to the city manager's contract was never authorized by the entire council. I recognize that even if the entire council had been involved in this process, the council majority would have had the votes to initiate the termination of our city manager's employment. Nevertheless, City Charter and Council policy have been violated by not involving the entire council. And let it be understood that in no way is the termination of our city manger's employment justified from a performance standpoint. Our city manager's annual reviews reflect year after year of outstanding performance. 2. Second, I am concerned about my ability to vote on a motion to approve the city manger's sixth amended contract that was not authorized by the entire council. How can I vote on an unauthorized action by the council majority without violating council policy and the city charter myself?? 3. Third, we have a city charter that was approved by the voters, and has been in place since 1955. The action taken by the council majority departs from 63 years of policy implementation and past practice. The entire City Council, per the charter, had a right to participate in this entire process. I am concerned about the damage that this action has had in the confidence and trust that the community has in this body going forward. 4. My fourth concern has to do with action that the council majority took to revise council policy A-1. An ad hoc committee of three was appointed by then mayor, Kevin Muldoon, to take a look at all council policies for possible update and revision. This is an annual task that is to be completed by the council. A revised policy A-1 was presented to the council for approval after the ad hoc committee completed their work. We were given the revised policy just a few days before the revision item was agendized for approval. Not near enough time was provided for council members who were not part of the ad hoc committee to study the changes before being asked to approve the revisions. We were told that the changes were just "clean up" items when in reality the revisions made to this policy literally amended our form of government and governance without any explanation to the entire council or the public. I am convinced that this was an intentional move by the council majority to facilitate the action that they are taking tonight in terminating our city manager's employment. (over) Remarks, continued....... 5. My fifth concern are words like "mutually agreed upon", and "Final Compensation Payment" in lieu of "severance" in the sixth amended contract. These terms simply do not express the truth in relation to the circumstances behind the termination of our city manager. Once again, the public is misled, and clearly points to the lack of transparency in this process. 6. My sixth concern is the cost to taxpayers that this amended contract represents. Our city manger will continue to earn his base salary of $265,00 per annum, and as a condition of his termination will receive a negotiated Final Compensation Payment of $84,0000, and a one-time $20,000 contribution made to the city manager's deferred compensation account. An additional $5,000 in legal fees is also be paid for the negotiation of the amended sixth contract. The total cost of this termination package adds up to over $200,000 of taxpayer money. 7. Seventh, the council is now faced with the task of selecting a new city manager. This process going forward needs to be fair, open and transparent. and based on a consensus decision reached by the entire council. The hiring process needs to involve a professional recruitment firm, as well as public input, and the final selection must be based on the council having reached consensus. There is action being taken here tonight that steps away from past practice, from 63 years of well-defined procedural policy; action that will change the direction of this city, as well as its rich history. For these reasons I will not support any action tonight that terminates our city manager's employment. He should be allowed to work out his present contract with dignity and the respect he deserves, and exercise his right and privilege to retire at his own choosing. A city manager of Mr. Kiff's caliber should not be forced to speed up his retirement. April 10, 2018 Item No. 12 CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION WITHOUT CAUSE AS TOLD BY MR. KIFF TO COUNCILMEMBER DIANE DIXON APRIL 9, 2018 Prior "hints and directives" in public regarding City Manager Kiff: o 2015: Duffield: "We have Kiff where we want him. We want to get rid of him." Stated to several people in the community and reported back to Kiff. o 2016: "Give him a gold watch and move on" — Duffy and Peotter to Herdman; reported in column in Daily Pilot o 2016: Duffield in dinner conversation: "Dave will be fired and given gold watch and patted on the back and retired." Reported to Kiff by mutual friend. o 2016-17 Peotter recommends to Dave Kiff Mark Denny, assistant City Manager of Dana Point, to come in as Kiff's successor 4/10/2018 9:25 AM 1 CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION WITHOUT CAUSE AS TOLD BY MR. KIFF TO COUNCILMEMBER DIANE DIXON APRIL 9, 2018 February 12, 2018: Mayor Duffield and Mayor pro tem O'Neill meet with Kiff at regular Monday agenda review meeting (City Attorney Harp was dismissed): o Duffield, O'Neill: We want to talk some serious business with you about speeding up your retirement. o Kiff: I was planning to retire after the November election, as the timing might allow for better candidates to apply." o Duffield: That makes sense. o O'Neill: No. Shaking head. o O'Neill: We want this change during summertime. We will make sure you are whole. We will have time to celebrate your career. 4/10/2018 9:25 iaM2 CHRONOLOGY OF ACTIONS LEADING TO CITY MANAGER KIFF'S TERMINATION WITHOUT CAUSE AS TOLD BY MR. KIFF TO COUNCILMEMBER DIANE DIXON APRIL 9, 2018 o You will be on the books until December 31 but you would leave in the summer when a replacement is hired. Think about this and get back to us Friday (February 16) with your terms. Friday February 16: Kiff presented his terms: o Amicable transition; stay until age 54 (November 2018), city -paid attorney; o $20,000 in retiree medical /or paid into deferred compensation account Subsequently, Kiff's lawyer and the City's outside counsel negotiated terms resulting in Kiff's retirement effective August 31, 2018 with contract ending December 31, 2018. 4/10/2018 9:25 AM3