2007-017 City Manager Contract
RESOLUTION NO. 2007-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS
AUTHORIZING THE APPROVAL AND EXECUTION OF THE UPDATED
CONTRACT FOR THE CITY MANAGER
WITNESSETH:
WHEREAS, the City Council desires to execute a revised employment contract dated
May 9,2007, for the continued services of Phil Cotton as City Manager of the City of Encinitas
pursuant to Chapter 2.24 of the Encinitas Municipal Code ("Municipal Code"); and
WHEREAS, Phil Cotton desires to continue to serve the City Council and the City of
Encinitas as City Manager of the City of Encinitas;
NOW THEREFORE, the City Council of the City of Encinitas hereby resolves to
approve and direct the Mayor to execute the attached City Manager Employment Agreement.
PASSED AND ADOPTED this 9th day of May, 2007.
AYES: Bond, Dalager, Stocks
NAYS: Barth, Houlihan
ABSENT: None
ABSTAIN: None
ATTEST:
AaL~~~I1~
Deborah Cervone, City Clerk
CITY MANAGER
EMPLOYMENT AGREEMENT
THIS AGREEMENT is entered into by and between the City of Encinitas, a municipal
corporation (the "City"), and Phil Cotton, this 9th day of May, 2007, and is made in reference to
the following facts:
A. The City, by and through the City Council of the City of Encinitas (the
"Council"), desires to continue to employ the services of and appoint as City
Manager Phil Cotton (the "City Manager").
B. Phil Cotton desires to continue to serve as the City Manager for the City of
Encinitas.
THEREFORE, IT IS AGREED AS FOLLOWS:
1.0 EMPLOYMENT
1.1 The City Council agrees to appoint and to continue to employ Phil Cotton as City
Manager for the City of Encinitas.
1.2 Chapter 2.24 of the Municipal Code relating to the position of city manager is
incorporated herein by this reference as though fully set forth at length and made
a part of this Agreement.
1.3 City Manager hereby agrees to perform the services generally associated with the
position of city manager as required by this Agreement at the pleasure of the
Council.
1.4 So long as City Manager is providing services to the City, City Manager shall use
his best efforts in performing his obligations and duties.
2.0 TERM OF EMPLOYMENT
The City Manager shall serve for an indefinite term at the will of the Council and may
have his services terminated by a majority vote of the Council in accordance with
provisions in the Municipal Code and this Agreement.
3.0 SCHEDULED EVALUATIONS OF PERFORMANCE AND
SALARY /BENEFITS
In conjunction with annual performance evaluations of City Manager the Council shall
conduct an annual review of City Manager's salary and benefits.
4.0 SALARY AND BENEFITS
4.1 Salary. Effective upon the date of employment, the City Manager shall receive a
base annual total compensation of $198,723 ("base compensation") payable in
equal installments at the same time as other employees of the City are paid and
additional compensation in the form of those benefits specified herein. The City
Manager may, at his discretion, divide his compensation between salary, deferred
compensation, City's cafeteria plan, any election to buy-back credits from prior
years under the Public Employees' Retirement System.
4.2 Deferred Compensation.
4.2.1 City Offered Plans. City Manager may utilize any portion of his base
compensation to participate in any form of deferred compensation offered
by the City, or any plan having been approved by the Council. City will
contribute on City Manager's behalf nine percent (9%) of base
compensation towards approved deferred compensation plans;
alternatively, City Manager may in his sole discretion, receive said amount
as base compensation.
4.2.2 Transfer Upon Termination. In the event that City Manager accepts
employment with another employer and such employer desires to make
payments into the deferred compensation plan mentioned above, the City
shall, at City Manager's request, transfer the ownership of City Manager's
share of said program to the new employer.
4.3 Vacation Benefit. City Manager shall accrue vacation benefits on a bi-weekly
basis at the rate of 7.08 hours. All other provisions of the current City vacation
policies shall apply.
4.4 Other Leave Benefits. City Manager is entitled to the same leave benefits
(income protection program ("IPP")), jury duty, bereavement, etc., that the City
provides to other employees. Upon the effective date of this Agreement, City
Manager shall be credited with the maximum amount of five (5) units accrued in
the IPP.
4.5 Retirement Benefit. City Manager shall be included in the same retirement plan
provided other general employees of the City.
4.6 Health Benefits. City Manager shall be entitled to the same health benefits that
the City provides to other City employees.
4.7 Disability/Life Insurance Benefits. City agrees to obtain and maintain disability
income and life insurance policies providing benefits to City Manager equal to
those provided to other City employees.
5.0 PROFESSIONAL DEVELOPMENT
The Council may approve, as part of the City Manager's professional development, leave
time and an expense allowance to allow City Manager to attend meetings and
conferences, such as the International City Manager's Association ("ICMA") and the
League of California Cities ("LCC"), as the Council deems appropriate.
6.0 TERMINATION AT PLEASURE.
6.1 City Termination. In the event that this Agreement is terminated by the
Council without "cause" (as that term IS defined herein or in City's
Personnel Guidelines), City agrees to provide not less than six (6) months
notice of termination. In the event notice is not given, or in the event less
than six (6) months notice is given City agrees to pay City Manager
severance compensation as follows:
6.1.1.1 Without Notice. In the event notice is not given,
severance compensation shall be the equivalent of nine (9) months of City
Manager's then annual total compensation and additional compensation in
the form of those benefits specified herein.
6.1.1.2 With Notice. In the event less than six (6) months
notice is given, City Manager shall be entitled to severance compensation
in the amount of a pro rated portion of said compensation specified in
Section 6.1.1.1. In no event shall more than six (6) months of said
compensation be paid to City Manager.
6.1.1.3 If City Manager accepts a position with another agency or
firm and submits a letter of resignation, there will be no severance
compensation.
6.2 City Manager Termination. This Agreement may be terminated at the
City Manager's pleasure, in which case City Manager shall deliver to Mayor of
City a resignation, in writing, that is effective no sooner than ninety (90) days
after delivery of the same unless the Council agrees to an earlier date.
7.0 TERMINATION FOR CAUSE
7.1 City's Right to Terminate for Cause. City shall have the right to terminate this
Agreement for "cause", in which event City Manager shall not be entitled to
severance compensation. Termination for cause includes termination following
any conviction or plea of no contest for any illegal act, or violation of State or
Federal law, or if City Manager engages in an illegal act involving moral
turpitude or personal gain, or knowingly and intentionally violates City or State
conflict of interest law, or commits abuse of office.
7.2 Bondable. This Agreement shall be terminated for cause if City Manager is
unable to qualify for the bond required by the Municipal Code. City shall pay the
full cost of any fidelity or other bonds required of City Manager.
8.0 GENERAL PROVISIONS
8.1 Reporting Date. City Manager shall continue his employment with the City under
the new terms of the Agreement on May 9, 2007.
8.2 Entire Agreement. This Agreement shall constitute the entire agreement between
the parties hereto.
8.3 Severability. If any provision, or any portion thereof, contained in this
Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder
of this Agreement, or any portion thereof, shall be deemed severable, shall not be
affected, and shall remain in full force and effect.
IN WITNESS WHEREOF, the Council of the City ofEncinitas, California, has
authorized this Agreement to be signed and executed this 9th day of May, 2007.
ATTEST:
/IlI~CA~
Deborah Cervone, City Clerk
AP2jA~
Glenn Sabine, City Attorney
APPROVED AND ACCEPTED:
Dated: 5/1 I ! f) 7
~.Q:Q W- _
Phil Cotton