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HomeMy WebLinkAbout2007 CON Chris Zapata - Third Amend. Agree.THIRD AMENDMENT TO EMPLOYMENT AGREEMENT This Third Amendment to Employment Agreement is made and entered into this 9th day of January, 2007, by and between the City of National City, a municipal corporation (hereinafter called "Employer") and Chris Zapata, an individual (hereinafter called "Employee"). RECITALS A. Employer and Employee entered into an Employment Agreement ("the Agreement") dated January 20, 2004. B. On or about December 6, 2005, Employer and Employee amended Section 3 of the Agreement, pertaining to Employee's compensation, by adding Subsection D thereto, which reduced Employee's salary by ten percent (10%). C. On or about August 1, 2006, Employer and Employee amended Section 3 of the Agreement to increase Employee's salary by ten percent (10%). D. Employer and Employee wish to amend the Agreement by again amending Section 3 of said Agreement to add Subsection D to Section 3 of the Agreement, in order to provide for a one-time retention incentive payment of $24,000 to Employee, and to amend Sections 6 and 16 of the Agreement to increase Employee's housing allowance and car allowance, respectively, all to be effective immediately. NOW, THEREFORE, in consideration of the mutual benefit to be desired therefrom, Employer and Employee agree that effective immediately, Sections 3, 6 and 16 of the Agreement are hereby amended to read as follows: Section 3 Compensation. A. Base Salary: Employer agrees to pay Employee an annual base salary of $165,000, payable in installments at the same time that the other executive employees of the Employer are paid. B. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the Employer's compensation policies. C. Consideration shall be given on an annual basis to increase salary, based upon increases in the Consumer Price Index. Any additional increase in salary shall be dependent upon the results of the performance evaluation conducted under the provisions of Section 12 of this Agreement. D. Employee shall receive a one-time retention incentive payment of $24,000, to be paid upon approval of this Third Amendment to Employment Agreement by Employer. Third Amendment to Employment Agreement January 9, 2007 Page 2 Section 6 Monthly Vehicle Allowance. The Employer agrees to pay to the Employee, during term of this Agreement and in addition to other salary and benefits herein provided, the sum of $750 per month as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater National City area. For purposes of this Section, use of the vehicle within the greater National City area is defined as travel to locations with a 50 mile radius of the National City Civic Center. Section 16 Housing Assistance Payments. During such time as the Employee maintains his principal residence in National City, the Employer shall pay the Employee $500 per month as a housing assistance payment. With the foregoing exception, each and every provision of the Employment Agreement dated January 20, 2004, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF ATIONAL CITY n Morrison, Mayor Chris Zapat APPROVED AS TO FORM: George H. iser, III City Attorney RESOLUTION NO. 2007 - 5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO EMPLOYMENT AGREEMENT WITH CITY MANAGER CHRIS ZAPATA WHEREAS, on or about January 20, 2004, the City Council approved an Employment Agreement with City Manager Chris Zapata; and WHEREAS, the Employment Agreement was subsequently amended on or about December 6, 2005 and August 1, 2006; and WHEREAS, the City Council and City Manager now wish to amend Sections 3, 6 and 16 of the Employment Agreement, pertaining to a one-time retention incentive, vehicle allowance, and housing assistance payments, respectively. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute a Third Amendment to Employment Agreement with City Manager Chris Zapata. Said Third Amendment to Employment Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 9`h day of Janu Ron Morrison, Mayor ATTEST: Michael R. Dalla, Cit Clerk APPROVED AS TO FORM: George H. iser, III City Attorney Passed and adopted by the Council of the City of National City, California, on January 9, 2007, by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California il City Jerk of the City f National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-5 of the City of National City, California, passed and adopted by the Council of said City on January 9, 2007. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE January 9, 2007 AGENDA ITEM NO. 11 (ITEM TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING TH� MAYOR TO EXECUTE A THIRD AMENDMENT TO EMPLOYMENT AGREEMENT WITH CITY MANAGER CHRIS ZAPATA PREPARED BY George H. Eiser, III (" DEPARTMENT City Attorney (Ext. 4221) EXPLANATION The City Council approved an employment agreement with City Manager Chris Zapata on or about January 20, 2004. The Agreement was subsequently amended on December 6, 2005 and on August 1, 2006. The City Manager has proposed that the Council approve a Third Amendment to Agreement to provide for the following: • Payment of a one-time retention incentive of $24,000 • An increase of the housing allowance to $500 per month • An increase of the vehicle allowance to $750 per month The proposed resolution would approve the above revisions, as contained in the Third Amendment to Agreement, effective immediately. Approval would place the City Manager in the mid -range of compensation for all city managers in the County. Environmental Review y N/A Financial Statement Funds are available. Approved By: Finance Director Undesignated Fund Balance Account No. 001-2501 STAFF RECOMMENDATION Adopt resolution BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Resolution Proposed Amendment to Employment Agreement r'leMorandum f umCity Manager to Mayor and City Council ,?k A-200 (9/99) THIRD AMENDMENT TO EMPLOYMENT AGREEMENT This Third Amendment to Employment Agreement is made and entered into this 9th day of January, 2007, by and between the City of National City, a municipal corporation (hereinafter called "Employer") and Chris Zapata, an individual (hereinafter called "Employee"). RECITALS A. Employer and Employee entered into an Employment Agreement ("the Agreement") dated January 20, 2004. B. On or about December 6, 2005, Employer and Employee amended Section 3 of the Agreement, pertaining to Employee's compensation, by adding Subsection D thereto, which reduced Employee's salary by ten percent (10%). C. On or about August 1, 2006, Employer and Employee amended Section 3 of the Agreement to increase Employee's salary by ten percent (10%). D. Employer and Employee wish to amend the Agreement by again amending Section 3 of said Agreement to add Subsection D to Section 3 of the Agreement, in order to provide for a one-time retention incentive payment of $24,000 to Employee, and to amend Sections 6 and 16 of the Agreement to increase Employee's housing allowance and car allowance, respectively, all to be effective immediately. NOW, THEREFORE, in consideration of the mutual benefit to be desired therefrom, Employer and Employee agree that effective immediately, Sections 3, 6 and 16 of the Agreement are hereby amended to read as follows: Section 3 Compensation. A. Base Salary: Employer agrees to pay Employee an annual base salary of $165,000, payable in installments at the same time that the other executive employees of the Employer are paid. B. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the Employer's compensation policies. C. Consideration shall be given on an annual basis to increase salary, based upon increases in the Consumer Price Index. Any additional increase in salary shall be dependent upon the results of the performance evaluation conducted under the provisions of Section 12 of this Agreement. D. Employee shall receive a one-time retention incentive payment of $24,000, to be paid upon approval of this Third Amendment to Employment Agreement by Employer. Third Amendment to Employment Agreement January 9, 2007 Page 2 Section 6 Monthly Vehicle Allowance. The Employer agrees to pay to the Employee, during term of this Agreement and in addition to other salary and benefits herein provided, the sum of $750 per month as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater National City area. For purposes of this Section, use of the vehicle within the greater National City area is defined as travel to locations with a 50 mile radius of the National City Civic Center. Section 16 Housing Assistance Payments. During such time as the Employee maintains his principal residence in National City, the Employer shall pay the Employee $500 per month as a housing assistance payment. With the foregoing exception, each and every provision of the Employment Agreement dated January 20, 2004, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Ron Morrison, Mayor Chris Zapata APPROVED AS TO FORM: George H. Eiser, III City Attorney RESOLUTION NO. 2007 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO EMPLOYMENT AGREEMENT WITH CITY MANAGER CHRIS ZAPATA WHEREAS, on or about January 20, 2004, the City Council approved an Employment Agreement with City Manager Chris Zapata; and WHEREAS, the Employment Agreement was subsequently amended on or about December 6, 2005 and August 1, 2006; and WHEREAS, the City Council and City Manager now wish to amend Sections 3, 6 and 16 of the Employment Agreement, pertaining to a one-time retention incentive, vehicle allowance, and housing assistance payments, respectively. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute a Third Amendment to Employment Agreement with City Manager Chris Zapata. Said Third Amendment to Employment Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 9th day of January 2007. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney TO: Mayor & Council FROM: Chris Zapata, City Manager RE: EMPLOYMENT AGREEMENT C DATE: January 2, 2007 BACKGROUND Next month I will begin my fourth year as City Manager. I have enjoyed working with you and fellow employees in the organization to serve our community. There has been much positive change during this challenging time. I would like to highlight key areas where significant progress has been made: Prudent Fiscal Oversight and Transparency Identification of budget deficit in 2004, contingency plan development and implementation, efficiency measures and department audits resulting in growth of general fund reserve from $4,400,000 in FY 2002/2003 to $6,700,000 in FY 2005/2006. Labor contracts utilizing one-time payment model, website posting of budgets and audits Recruiting and Promoting Talented Executive Staff Human Resources Director, Police Chief, Fire Chief, Assistant City Manager, Community Services Director, Public Works Director, Finance Director, Public Information Officer, Assistant City Manager, Community Development Agency Director Community Investment & Engagement $3,400,000 street repaving program using rubberized asphalt and advance transnet dollars, $2,400,000 Public Safety Radio purchase utilizing private placement, administrative oversight of $9,500,000 Fire Station, $19,200,000 Library and $2,000,000 Swimming Pool Improvements. City Newsletter, creation of Community Services Department, Neighborhood Council presentations, community organization involvement Fundamental Reorganization and Efficiency Community Development Corporation and City - Reorganization and eliminating of Executive positions to include: Deputy Director Finance, Deputy Director Redevelopment, Deputy Director Economic Development, Building & Safety Director, Deputy Director Human Resources. Implementation of Employee Care Committee, Position Review Process and Purchase Review Team Administrative Oversight & Policy Development Ensuring Growth pays for Growth Maximus Study & Impact fee implementation as well as Downtown Infrastructure Analysis. Strategic Plan Development - Police, Fire, Community Services & Information Systems The above work was done as a team in conjunction with Council, staff and ultimately our customers and community. The environment was one of difficulty due to exponential workload increases and extreme financial challenge. Temporary relief has been provided due to the community's support of the district tax in June. DISCUSSION Our current employment agreement provides for total compensation of $184,800. This includes salary, auto allowance, housing differential and health insurance. There has been no salary increase during my employment with National City. During this three- year period we mutually agreed that my salary would be frozen and the Consumer Price Index Adjustment in my employment agreement would be suspended. We also agreed that for a nine- month period a voluntary 10% cut in pay would take place. As the Chief Administrative Officer for National City I am responsible for 370 full time and 100 plus part-time employees. The overall City Budget is approximately $90 million dollars. In addition, the 35 year old Community Development Corporation has been placed under the administrative oversight of the City Manager. I share the Council's philosophy of community involvement. As an employee and resident of National City, I have involved myself in many service organizations. During my annual evaluations, the Council has provided positive comment regarding my performance on multiple fronts — organizationally, regionally and with the City Council. RECOMMENDATION After a year -long search you hired me with a compensation package that placed me in the upper third of City Managers in San Diego County. I currently am in the bottom third. Given our temporary sales tax, I do not believe it prudent to seek a salary increase which creates ongoing obligations. I propose the following compensation approach: Retention incentive of: $24,000 Housing allowance increase: $250 per month Car allowance increase: $200 per month This would bring my total compensation to $214,000 - my salary would remain at $165,000. This approach places me in the middle of 18 current City Managers and does not create ongoing obligation. I request that this be effective immediately if supported by the City Council. I am available to answer any questions.