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Home My WebLink About08 - Employment Agreement with Police Chief8-1 NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT CITY OF April 12, 2016 Agenda Item No. 8 ABSTRACT: Following an open recruitment, the City Manager selected Jon Lewis for the position of Police Chief. The proposed Employment Agreement (Exhibit 1) is presented for consideration by the City Council. RECOMMENDATION: Adopt Resolution No. 2016-52, A Resolution of the City Council of the City of Newport Beach, California, Authorizing the City Manager to Execute an Employment Agreement between the City of Newport Beach and Jon Lewis for Services of Police Chief. FUNDING REQUIREMENTS: The current adopted budget includes sufficient funding for this Employment Agreement. DISCUSSION: As outlined in Exhibit 1, the initial term of the proposed employment agreement is three years, with an automatic extension for subsequent one-year terms unless the City provides Chief Lewis with notice of non-renewal six months prior to the contract expiration. In addition to the benefits provided to all employees in the Executive Management category of the unrepresented Key and Management Group, the proposed Employment Agreement also provides for the following: Compensation: The City agrees to pay Chief Lewis an annual base salary of $213,500.00; Adjustments to Compensation: Chief Lewis may receive increases in annual compensation consistent with the increases provided for the Police Management Association pursuant to its Memorandum of Understanding, as long as the TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM:Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY:Barbara J. Salvini, Human Resources Director – bsalvini@newportbeachca.gov PHONE:949-644-3259 TITLE:Employment Agreement with Police Chief Employment Agreement with Police Chief April 12, 2016 Page 2 8-2 increases do not exceed the “Cost of Living” as defined by Government Code Section 3511.1 or successor statute; Holiday: Chief Lewis is required to work Memorial Day, Independence Day, Labor Day and New Years’ Eve. For these specific holidays he will be paid 1.23 hours per pay period, which the City will report to CalPERS as special compensation. The City will not report the other Holidays as special compensation; Uniform Allowance: The City will report the value of uniforms provided to Chief Lewis at $1,350.00, which is intended to reflect clothing such as pants, shirts jackets, and related attire; and report the pay as special compensation to CalPERS; Administrative Leave: Chief Lewis will be entitled to 80 hours of Administrative Leave per calendar year; Annual Physical Exam: The City will reimburse Chief Lewis for the actual cost of an examination, up to a maximum of $1,000; Severance: If terminated without cause within the first two years of the proposed employment agreement, the City will pay Chief Lewis 9 months’ base salary plus medical benefits to the maximum extent provided by law. If terminated without cause after two years, the City shall pay 6 months base salary plus medical benefits to the maximum extent provided by law. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A – Resolution No. 2016-__ Authorizing the City Manager to Execute an Employment Agreement Exhibit 1 – Employment Agreement RESOLUTION NO. 2016– A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND JON LEWIS FOR SERVICES OF POLICE CHIEF WHEREAS, following the retirement of the former Police Chief on December 23, 2015, the City Manager conducted an open and competitive recruitment to fill the vacancy; and WHEREAS, at the conclusion of a rigorous selection process, the City Manager, pursuant to his authority under Section 504 of the Newport Beach City Charter, selected Jon Lewis as the new Police Chief; and WHEREAS, the City of Newport Beach desires to enter into an Employment Agreement with Jon Lewis for services of Police Chief (Exhibit “1”). NOW THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows: Section 1: The recitals provided above are true and correct and are incorporated into the operative part of this resolution. Section 2: The City Council does hereby authorize the City Manager to execute the Employment Agreement between the City of Newport Beach and Jon Lewis attached hereto as Exhibit “A” and incorporated herein by this reference. Section 3: The Employment Agreement requires Jon Lewis to work Memorial Day, Independence Day, Labor Day and New Years’ Eve (“Mandatory Working Holidays”). For these Mandatory Working Holidays he will be paid 1.23 hours per pay period, which the City will report to CalPERS as special compensation. Section 4: Under the terms of the Employment Agreement, the City will report the value of uniforms provided to Jon Lewis at $1,350.00 per year as special compensation in accordance with CalPERS regulations, which is intended to reflect clothing such as pants, shirts jackets, and related attire. 8-3 ATTACHMENT A Section 5: The City Council recognizes that CalPERS will ultimately determine whether the uniform allowance and Mandatory Working Holidays qualify as special compensation and should CalPERS determine that the uniform allowance or Mandatory Working Holidays do not qualify as special compensation, the City shall have no liability in this regard or duty to represent Jon Lewis in proceedings related to such a determination. Section 6: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 8: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this ____ day of _________, 2016. ______________________ Diane B. Dixon Mayor ATTEST: __________________________ Leilani I. Brown City Clerk 8-4 8-5 8-6 8-7 8-8 8-9 8-10 8-11 8-12 8-13 8-14 8-15 8-16 8-17 8-18 8-19 8-20 8-21 8-22 8-23 8-24 8-25 8-26