City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council consider approval of an Amendment to the
Executive Employment Agreement with the City Manager which clarifies and
implements the residency incentive language, as set forth in Exhibit “B,” thereto.
BACKGROUND:
During the City Council meeting held on July 12, 2010, the City Council considered
and approved an Executive Employment Agreement which appointed John Nachbar
as City Manager for the City of Culver City (Employment Agreement), and set forth
the terms and conditions of his employment. As the City Council was interested in
facilitating the City Manager’s presence in the community and his participation in
civic and community affairs, Section 5(D) of the Employment Agreement offered, as
a residency incentive, a loan to assist him in obtaining a primary residence in Culver
City. The language of Exhibit “B” to the Employment Agreement, providing for the
loan, states that it is for the “purchase” of property.
DISCUSSION:
For the past year and a half, the City Manager, who currently resides in a rental
property located in the City, has been actively searching for a Culver City home to
purchase as his residence. In April 2011, as a result of what he observed in the real
estate market, Mr. Nachbar informed the City Council that he realized there may be
Meeting Date: 05/14/2012 Item Number: A-1
CITY COUNCIL AGENDA ITEM: Approval of an Amendment to Exhibit “B” of the
Employment Agreement of the City Manager Clarifying and Implementing the
Residency Incentive.
Contact Person/Dept.: Carol A. Schwab/
City Attorney
Phone Number: (310) 253-5660
Fiscal Impact: Yes X] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Meetings and Agendas – City Council (05/10/12)
Department Approval:
Carol Schwab (05/10/12)
City Attorney Approval:
Carol Schwab (05/10/12)
Chief Financial Officer Approval:
Jeff Muir (05/10/12)
City Manager Approval:
N/A City of Culver City, California
Agenda Item Report
situations in which the home he might purchase (generally for a lower purchase
price) would need remodeling. Thus, rather than obtaining a loan for just the
purchase price, he might be interested in a loan to cover the construction costs for
additional improvements, as well. However, the overall cap of and the security for
the loan amount as provided for in the Employment Agreement would not need to be
revised.
Mr. Nachbar has now been successful in finding a home to purchase and has
entered into a purchase and sale agreement and escrow has been opened.
However, the property is in need of additional remodel/improvements. Therefore, to
implement the provisions of the Employment Agreement providing for a residency
incentive in the form of a loan to have the City Manager reside in the City, the City
Attorney has prepared the attached Amendment to Exhibit “B” to the Agreement.
This amends the language of Exhibit “B” of the Employment Agreement and clarifies
that the residency incentive loan applies to both the “purchase” and “improvement”
of a property. The proposed Amendment, attached hereto, would also provide for a
process to make certain that both the purchase component and the improvement
component of the loan are secured appropriately in accordance with the original
language of the Employment Agreement.
This is the second Amendment to the Employment Agreement. The first, adopted in
December 2010, implemented the City Manager’s voluntary reduction in salary as a
result of his agreement to pay the full employee share (8%) of the retirement
contribution. There is also language in Section 9 of the Agreement which offers a
stipend to the City Manager for his duties as Executive Director of the
Redevelopment Agency. Although the Redevelopment Agency no longer exists, the
City Manager is still carrying out duties for the Successor Agency and Housing
Authority. Many employees formerly reimbursed by the Agency are impacted in a
similar manner and issues relating to payment for employees are still being resolved
between numerous California cities and the State. Therefore, it is Staff’s intent to
bring any modifications to this provision of the Employment Agreement to the City
Council during the Budget process, when other changes to staff reimbursement and
salaries will be considered.
FISCAL ANALYSIS:
There is no change in the fiscal impact, which is within the parameters established
by the City Council in 2010, when the Employment Agreement was approved during
a publically noticed and agendized City Council meeting.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
1. Executive Employment Agreement
2. Proposed Amendment to Exhibit “B” of the Employment Agreement
MOTION:
That the City Council:
1. Approve the Amendment to Exhibit “B” of the Employment Agreement clarifying
and implementing the Residency Incentive; and,
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the Mayor to execute such documents on behalf of the City
MEETING DATE: 05/14/12
AGENDA ITEM: Approval of an Amendment to Exhibit "B" of the
Employment Agreement of the City Manager Clarifying
and Implementing the Residency Incentive.
ATTACHMENTS
Pages
1. City Manager's Employment Agreement
1 —19
2. Amended Exhibit B
20-22 Conti-ad No. 2010-
JOHN NACHBAR, CITY MANAGER
EXECtillVE EMPLOYMENT AGREEMENT
This Employment Agreement is entered into on this 12 th day of July 2010, by
and between the City of Culver City, California, a municipal corporation, hereinafter
referred to as 'Gay", and John Nachbar, hereinafter known aS "Employee'. The City and
the Employee are collectively referred to as the Parties' and agree as follows:
RECITALS
The City Council of the City desires to enter into this Agreement:
1. To appoint Employee as City Manager. •
2. To encourage the highest standards of public service on
the part of Employee and provide assurances to Employee regarding
his employment by offering coilain coripensation, benefits and other
incen Wes_
3. To ensure that Employee shall do his utmost to Promote
the City's interests, and devote such time and effort as necessary to
properly perform his duties.
4. To establish an equitable process for terminating
Employee's services at such time ache may be unable to fully
discharge his duties, or when City may desire to otherwise terminate
his employment in accordance with this Agreement
5. To establish a framework for a working relationship
built on mutual respect among the City Council, City Manager, staff
and the Community. Contract No 2010-
B. Employee desires to accept such employment with City on the terms
and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual
• covenants and conditions contained herein, the Parties agree as follows:
.1. EMPLOYMENT AND DUTIES:
The City hereby agrees to employ Employee as City Manager of the City of
Culver City. Employee is appointed by and serves at II le pleasure of the City
Council in an at-will capacity: Employee shall exercise the powers and
perform the duties of the position of City Manager, as set forth in the City
Charter, Culver City Municipal Codp, resolutions, policies, and other rules
and regulations of City including, but not limited to, those daties listed in .
Exhibit gA" attached hereto and incorporated herein by this reference. in
addition, Employee shall exercise such other powers and perform such other
lawful duties as the City Council may from time-to-time assign to Employee.
2. TERM OF AGREEMENT:
A. This Agreement shall continue in full force and effect unless and until
modified by City and Employee in writing or unless and until such time as
Employee's employment relationship is terminated in accordance with
Section 3.
2 Contract No. 2010-
. Unless approved in advance or otherwise directed by the City Council,
Employee shall not engage in any activity, consulting service or enterprise,
for compensation or otherwise, which in the determination of the City
Council, actually or potentially in conflict with or inimical to or which -
interferes with, his duties and responsibilities to Employer.
3. TERMINATION OF AGREEMENT:
A. 13y City Council action, City may terminate this Agreement, at
any tire, with or without cause, upon thirty (30) days written notice to
Employee. if Cityterminates this AgreeiTIVI it for any reason other than
reasons set forth in Section 4 of this Agreement, City shall provide severance
pay to Employee on the effective date of sudi termination in an amount
equal to the Employee's base salary and benefits for a six-month period at
Employee's rate of pay on the effecive date of such
termination. Under no
circumstance shall the City terminate this .Agreement within ninety (90) days
immediately follOvving a regular municipal electon. •
B. Employee may terminate this Agreernentat any time upon thirty
(30) dap written notice to the City Upon Employee's termination of this
Agreement, Employee shalt not be entitled to any severance pay, with the
exception of all unused accruals as outlined in the Culver City Management
Group Memorandum of Understanding ("GCMG Mai).
C. In the event Employee is unable to perform his duties, with or
without reasonable accommodation, due to incapacity or illness, as verified
appropriately by the City's physician, Employee shall be permitted to use his
3
3 Contract No 2010-
leave as permitted by law, and the Council may also grant any other form of
leave it deems appropriate.
4. DISCIPLINE AND/OR TERMINATION FOR CAUSE:
A. This Agreement may be terminated by the City Council for
"cause!' For purposes of this Agreement, 'cause' shall be defined as
circumstances where Employee:
0) Consistently and repeatedy refuses and/or vvillfully fails
to perform the duties . of his position;
D:msistently and - repaatedy rams and/or wilifCilly fails
to catty with° orders, directions or decisions of the City
Council; or
(iii) Corrimits any material act of dishonesty, _malfeasance,
moral turpitude, fraud, or theft.
El, City reserves the right to take appropriate disciplinary action for
cause.
C. Employee shall be provided written notice of City's intent to take
disciplinary action for Cause at least ten (10) calendar days prior to the City
Council meeting at which a final decision will be made_ Employee shall be
provided an opportunity to respond to the notice Of intended action. Any
decision or action o-f the City Council following such response shall be final.
D Due to The salaried and exempt nature of Employee's position
under the Fair Labor Standards Act (FLSA), if Employee is relieved of duty
during the pendency of the above process, Employee shall continue to
4 Contract No. 2010-
receive full pay and benefits until final action of the City Council has been
taken.
5. SALARY AND COMPENSATION:
Employee shall be compensated as set forth below, and paid
pursuant to the payroll procedures and provisions affecting Management
employees of the City. Except as specifiwIly provided herein, Employee
shall receive all the benefits, including vacation and sick leave accrual,
provided to other Management employees as described lathe adopted
GCMG. MOU for the 2005-2C)10 period, and- as-ntay be amended in- the
future.
A. Sala and Other Com enSation
1. Salary. Employee shall be placed in the City's
Classification and Salary Plan. Employee's basa annual salary shall be
$245,049, which includes $12,000 annual Redevelopment Agency stipend as
set forth in Section 5.A,2.
Employee's base annual salary, except as it may be adjusted
for "cost-of-living" provided in subsection (B) below, shall constitute the •
"Salary' for this position for the term of the Agreement. Payment of
Employee's Salary shall be made in biweekly installments in the same
manner as other employees of the City.
2. Redevelopment Agency Stipend_ Per Resolution of the
Culver City Redevelopment Agency, Employee receives a quarterly stipend
totaling the amount of $12,000 annually to compensate Employee for
5 Contract No, 2010-
• performing the duties of the Executive Director of the Redevelopment
Agency. The City shall take necessary action, if possible, to include payment
of the Redevelopment Agency stipend as part of the base annual salary.
B. CPI Effective August 2011, and each twelve (12) month
anniversary thereafter, City agrees to increase the base salary identified in
subsection ()(1) above, by an amount equal to the percentage increase in
the Consumer Price Index (CPly for Urban Wage Earners and Clerical
Workers (1982-84=100) for the Los Angeles Metropolitan area for the
immediately preceding twelve (12) months or any negotiated salary
adjusirnent contained in the ectoG - finti, whichever -is greater;
C. Relocation and Temporary Housing Assistance. City shall
reimburse Employee for the moving expenses of Employee's household
possessions and cars from Overland Park, Kansas to Culver City, Caltfomia.
The reimbursement shall be based upon the lowest of three (3) estimates for
an insured, full service move. In addition, City shall provide Employee with
relocation and temporary housing assistance allowance. The net allowance
shall be payable in one lump sum following the commencement of this
Agreement and shall not exceed twenty thousand dollars ($20,00.0).
D. Residency Incentive. Employee shall be offered a Residency
Incentive as set forth in the Residency Incentive Agreement attached to this
Agreement as Exhibit '13* and incorporated herein by this reference
E. Vacation and Sick Leave. In addition to leave accruals
provided within the CCMG MOU for the 2005-2010 period, and as may be
amended in the future, Employee shall be granted a starting bank of 60 Contract No. 2010-
hours of vacation leave and 40 hours of sick leave upon initially reporting and
assuming the duties of City Manager:
F. Administrative Leave. Employee shall be entitled to ten (10)
days of Administrative Leave during each year of this Agreement Any
unused Administrative Leave at the end of each year of this Agreement shall
be forfeited.
0. Auto Allowance. Employee shall receive Six Hundred Dollars
($600) per month automobile allowance as full reimbursement of use of his
personal vehicle for City related business and commuting purposes.
H. Deferred Coi upensationtRetention B-onus. Effective August
2011 and upon satisfactory performance, Employee shall receive a
contribution from the City for deferred compensation in the amount of
$12,500. Effective August 2012 ancrupon satisfactory performance,
Employee shall receive a contribution from the City for deferred
oompensation in the amount of $17,500. In order to be eligible for this
benefit, Employee must be continuously employed for the twelve months
prior to the payment of each deferred compensation/retention bonus.
Employee shalt be responsible for any taxes clue in regard to this deferred
compensatIon/retention bonus.
I. Cellular Telephone. In accordance with City policy, Employee
shall be provided with a cellular phone or a monthly stipend, as approved by
City Council, in order to be accessible by City officials.
7 Contract No. 2010-
6. PERFORMANCE EVALUATION:
The CityCouncilshail review and evaluate the performance of
Employee quarterly for the first year of this Agreement and at -least once per
year thereafter for the remainder of the term of this Agreement At a "
minimum, the annual review shall take place on or about the anniversary,
date of this Agreement Said reviews and evaluations shall be in accordance
With specific written criteria developed by the City Council in consultation with
the Employee, and may be amended from time-to--lime. The Mayor shall
provide Employee with a written summary of the findings of the City Council,
and provide an adequate opportunity for Empleyee-to discuss his
with the City Council. The City Council and/or Employee may desire
additional performance evaluations between anniversary dates. .Such
evaluations shall be less fomial and may be conducted without written
comments or reports.
7. OTHER TERMS AND CONDITIONS OF EMPLOYMENT:
A. Other Conditions. The City Council may, from time-to-time in
writing, fix other terms and conditions of employment relating to Employee,
provided suchlerms and conditions are not inconsistent with or in conflict
with the provisions of this Agreement, the City Charter, Culver City Municipal
Code, or other applicable law,
8. Communications with the City Council. It will be the obligation
of the Employee to be accessible to the Mayor and all Members of the City
Council on as equal a basis as reasonably possible and to communicate
8 Contract No. 2010-
information to the Mayor and all Members of the City Council in a similar and
equal manner at approximately the same time.
C. Notification of Leave from Office. Employee shall provide the
City Council With reasonable notice prior to taking two (2) or more
consecutive Vacation or administrative days off.
13. indemnification_ City shall defend, hold harmless and
indemnify Employee against any tort, professional liability claim or demand or
other legal action, whether groundless or otherwise, arising out of an alleged
act or omission occurring in the course and scope of Employee's duties as
City Manager; in accordance with the-provisionsof applicable-lam including
Government Code Section 825, and shall further provide Employee a
defense in accordance with the provisions of applicable law, including
California Government Code Section 995, et seq., subject to the limitations
and qualifications contained in these or other applicable statutes. City may -
compromise and settle any such claim or suit and pay the amount of any
settlement or judgment resulting therefrom. The ob,ligatiOn to defend and
indemnify Employee shall survive the te rmination or expiration of this
Agreement as to - liability incurred during the term hereof. Nothing in this
subsection shall be deemed to reduce the Qitys obligation to defend or
indemnify Employee under applicable Federal, State or lobe! law.
8. GENERAL PROVISIONS:
A Entire Agreement This Agreement represents the entire
Agreement between the City and Employee regardin-g the matters described
9 Contract No.2010-
hereunder, and all preliminary negotiations and agreements are deemed a
part of this Agreement. No verbal agreement or implied covenant shall be
held to vary the provisions of this Agreement. This Agreement shall bind
and inure to the benefit of the Parties to this Agreement, and any subsequent
successors, heirs and assigns.
'1± Modification. This Agreement may not be modified, nor may
any of the terms, provisions or conditions be modified or waived or otherwise
affected, except by a written amendment signed by all parties hereto.
C. Notice. Any notice given to City under this Agreement shall be
•iven-in-writing to -City, either by personal service or by register,ed•and
certified mail, postage prepaid, addressed to the City of Culver City, City
Clerk at City's principal place of business. Any notice to Employee shall be
given in a like manner, and if mailed shall be mailed to the Employee at his
home address as shown in City's personnel files.
D. Severability. If any provision of this Agreement is held invalid
or unenforceable, the remainder of /Ns Agreement shall nonetheless remain
in full force and effect.
E. Resolution of Disputes. Should a dispute arise between the
Parties specifically concerning the amount of salary or period for which salary
is to be paid, the Parties agree that the dispute shall be submitted to binding
arbitration. Such arbitration shall be conducted by a mutually agreed
arbitrator and pursuant to the rules of the American Arbitration Association.
Each Party shall bear one-half the costs of the arbitraton. The arbitrator may
award costs and attorney's fees to the prevailing party as determined by the
to Dated: at et:OCt 2.4C
Contract No. 2010-
arbitrator. The Parties agree that any disputes resolved by arbitration shall
be -ffnal and binding. Any other disputes arising out of this Agreement, not
Specifically referenced herein, shall not be subject to, the pnwisions of this
Section.
F. Govemind Law. The terms of this Agreement shall be
interpreted according to the laws of the State of California. If litigation arises
out of this Agreement, then venue shall be in the Superior Court of Los
Angeles County.
G.
Effective pate. The effective date of This Agreement is the date
it is signed Ion berlaW Of the City.
EMPLOYEE
Dated; aZa SUL.
By
Nachbar
Title: City Manager
ATTEST:
ktok-a=t-k
Martin R. Cole, City Clerk
APPROVED AS T9 FORK
11
11 PERSONSEI. DEPARTMENT
Exhibit "A"
Page 1 of 5
ereeweeeeee ee see e ---
-
CTY
The occupant of this classffication is in the unclaseiffed service Pursuant to the City Charter, the City Manager,
as the Chief Executive Officer of the City, is responsible to the City Council for the management of all City affairs,
including the day-to-day management of the City organization. The City . Manager, formulates municipal
objectives, goals, and plans, including both annual budgets and multi-year capital improvement programs, for
presentation to, and consideration by the City Council, and ensures their effective and economical achievement
upon Council approval The City Manager assists the City Council in meeting ifs planning, poky making,
performance evalualion, community leadership roles, and in maintaining a sound financial position for the City.
ee -seeeete.bee,We ereal peeeee . --e tele getee„- e—feefieteee_ __ _
This position is appointed by, and receives policy direction from, the City Council. Responsibilities include
general supervision of all City employees and exercise of supervision over the follovving positions: Assistant City
Manager, City Controller, Information Tecenology Director, Personnel and Empbyee Relations Director,
Community Development Director, Parks, Recreation and Community Service Director, Public Works Director/City
Engineer, Transportation Director, and the Executive Assistant to the City Manager. As thief Executive Officer,
the City Manager also supervises -the Chief of Police , and the- FiFe. Chief, -and- directs- and supeneses the
administration of all City departments. Additionally, the City Manager shall exercise supervision over the City
Treasurer and City Clerk as of the date specified in the City Charter_ The City Manager also serves as the
Executive Director of the Redevelopment Agency.
MMFM
The following tasks are essential for this position. Ineumbents in this classification may not perform all, of these
tasks, or may perform similar related tasks not listed here.
1. Assists the City Council in the development of overall, qualitative, and quantitative short-term and long range
policy goals and objectives for the City,
2. Implements plans for maintaining an effective and efficient program of municipal operations to mobilize skills
and resources to deliver services to the community and to provide programs to meet comrnunfty needs
consistent with the City Council approved budget.
3. Efficiently executes policy decisions of the City Council.
4. Works cooperatively with the City Attorney.
5. Works closely with City Council-to ensure communication and conversion. of Council policy decisions into
staff assignments and accomplishments.
6. Ensures executive management establishes and reports on objectives for the programs and activities for
which they are responsible. and coordinates effort to ensure efficacy and efficiency in pursuing and
achieving City Council identified goals. .
7_ Prepares, either directly or through executive management staff, proposals for City Council consideration on
a variety of issues with impact on the City. Reviews and approves all agenda items for agenda inclusion and
presentation be the City Council_ Coordinates the preparation of City Council and agenda items and ensures
the timely delivery of agenda packets.
8. Develops and submits, for Council information and/or consideration, various reports and recommendations
related to the fiscal status of the City, including: the annual operating budgets, fiscal plans, work plans, and
multi-year capital improvement project budgets.
9. Implements the budget as adopted by the City Council. Ensures the City Council is informed regarding the
City's 'Mandel status and forecasts.
le. Advises the City Council while Council considers appointments of the City Attorney, Chief of Police, and Fire
Chief.
Revised June 2006
November 1998 Exhibit. "A" Page 2
Page 2 of 5 City Manager
11. Recommends policies and procedures for Council adoption Which foster an environment which attracts the
most qualified employees and encourages employees" professional development.
12. Personally serves the community by directly attempting resolution of citizen complaints unable to be resolved
at other levels. Meets periodically with community leaders, the media, and other interested parties to
discuss problems and opportunities
13_ Assists in the development of municipal legislation and provides for The prompt execution of Council actions
including the enforcement of municipal laws and ordinances_ Represents the City's interests at the federal,
state, county/regional level as well as before state agencies, the Governor, and during legislative sessions
14._ Assists individual members of the City Council by providing counsel regarding inceiriesand complaints.
15. Conducts all grievance hearings appealed from Department determirrations. Approves safety disability
retirement requests/recorninenctations. Meets with employee labor association representatives and City
employees in general.
16. In the event of an emergency during normal business hours, is assigned the defies and responsibilities of
Director of Emergency Services per the Culver City Municipal Code.
17_ Performs other related duties as authorized by the City Charter and as directed by the City Council.
mitIMM
Knowledge of:
• Principles and practices of City management.
• City government structure and functions.
€ Laws-as they relate to City-gm:eminent-
• Principles and practices of local government budgeting and financial administration_
Personnel administration principles and practices.
• Labor relations.
Skill and Ability to:
. Work with diverse community groups.
Establish effective working relationships with the Grey Couneit
Establish organizativnai priorities_
Develop, Motivate, and manage senior staff assigned to the various operating programs of the City.
Executegovernmental projects and programs in accordance with the policy of the City Council.
Relate city governmental programs to social, environmental, political, and economic changes and needs
within the community.
Express self clearly and concisely in both verbal and written forms.
NAM
r
Possession of a )ealid California Class G driver's license.
Any combination equivalent to training and experience that could likely provide the required knowledge, side and
abilities would be qualifying. A typical. way to obtain the knowledge, skills and abilities would be a Master's
Degree from an accredited college or university in public administration and ten years of responsible experience
at the Assistant City Manager level or five years Assistant City Manager and five years Department Head.
e'rrecuemee
— Tr.
Require vision (which may be corrected) to read small print
Perform work which is primarily sedentary.
Is subject to office environmental
13 Exhibit "A"
Page 1 ofl
Page 3 of 5
§ 3-02-010 CITY MANAGER.
A. Appointment; compensation
1. The City Manager shall be appointed by the City Council solely on the basis of his executive
and administrative qualifications and ability to serve in the =classified service under the supervision of
the City C-ouncil.
2. The City Manager shall receive such compensation as the City Council shall from time to
time determine and fix by resohrtion.
(65 Code, § 249)
B. Duties andpowers. The City Manager shall have the following dirties and powers:
1. Recominendations to City Council To conduct studies and to make recommendations to the
City Council concerning all functions of City government following analysis thereof; to recommend
ordinances for adoption by the City Council, subject to the prior approval of the City Attorney as WI the
form thereof;
2. Investigation ofcomplaints_ To investigate all complaints in relation to matters concerning
the administration of the City government, and to tRire appropriate measures to obtain compliance with
. the obligations of permits, franchises and privileges grantedby the City;
3_ Supervision ofpublic property. To exercise general supervision over all public buildings,
parks, and all other property which is subordinate to the control of the City Council;
4. Public Relations Officer. To serve as Ptiblic Relations Officer of the City and to cooperate
with all organizations which advance the interests of the City and its residents;
5. Inventory controi, To prepare and keep current an inventory of personal property owned by
the City, and to recommend the acquisition, transfer or disposition of City property; and
6. Personnel Officer. To serve as Personnel Officer, personally or by delegation, and to
recommend in all matters pertaining thereto.
(65 Code, § 2-20) (Ord. No. CS-84; Ord. No. 2006-009 § 8)
whammilifi,1.4-11-rn;-ni.ad-rof /4 r111? 111 CfnitAC:t Exhibit nAm
Page 4 of 5
The City Council shall designate one newspaper circulated in the City for
the publication of all notices and other matters required to be published in a
newspaper. When possible, a change to another newspaper shall not be made
until a notice of the intention to change is published in the previously designated
newspaper.
The charges for such publications in the designated newspaper shall not
exceed the rates charged to the general public for similar publications_
All legal notices or other matters required to be published shall also be
posted in at least three public places within the City.
Posting of legal notices in three public places shall be sufficient, without
. publication if the designated newspaper is unavailable and a suitable
replacement cannot be designated.
ARTICLE 1111, CITY ADMINISTRATION
SECTION 700. POWERS AND DUTIES OF CITY MANAGER.
The City Council shall appoint the City Manager who shall be the chief
executive officer of the City, responsible to the City Council for the management
of all City affairs placed in the City Manager's Charge by or under this Charter, by
ordinance, resolution or other action of the City Council. The City Manager, or
his or her designee, shalt
(a) Appoint, suspend and remove ail City employees, including
Department Heads, the City Clerk and the City Treasurer, except as otherwise
provided by State law or this Charter,
(b) Direct and supervise the administration of all City departments,
except as otherwise provided by this Charter;
(c) Attend all City Council meetings, at which i the City Manager shall
have the right to take part in discussion, but shall not vote;
(d) Prepare and submit to the City Council an annual' budget pursuant
to this Charter, and implement the final budget approved by the City Council; and
(e) Perform such other duties as are specified in this Charter, or by
ordinance, resolution or other action of the City Council.
Page 14 of 32
5 Exhibit "A'
Page 5 of 5
SECTION 701. NON-INTERFERENCE BY CITY COUNCIL.
Neither the City Council, nor any Council Member shall!
(a) Order or direct the City Manager to appoint or remove any person
to or from any position of employment with the City;
(b) Except as -otherwise permitted by this Charter or by ordinance,
order or direct the City Manager to enter into a municipal contract or make a
purchase of supplies from any particular person or entity;
(c) Interfere in any way with the performance of the duties of any City
employee; or
(d) interfere in any way with the duties of the City's elections official in
the conduct of elections. -
Irlothing in this section shall prevent the City Council, or any of its
members, from advising the City Manager of any information which might assist
the City Manager in the discharge of the City Manager's duties; or contacting City
employees for the purpose of inquiry, obtaining information or advising
employees of citizen complaints.
AR77CLE VIII. ANNUAL BUDGET
SECTION 800. BUDGET PREPARATION.
All Department Heads shall, upon request, provide the City Manager with
estimates of revenues and expenditures for their departments, detailed in the
manner prescribed by the City Manager. The City Manager shall review the
estimates, hold conferences with department personnel, and prepare a proposed
budget
SECTION 801. SUBMISSION TO CITY COUNCIL
At least 45 days prior to the beginning of each fiscal year, the City
Manager shall submit a proposed budget to the City Council. After reviewing the
proposed budget, the City Council shall set the date and time for a public hearing
on the proposed budget and, at least 10 days prior to its scheduled date, shall
cause notice of such public -hearing to be published in a newspaper circulated in
the City and designated by the City Council.
Page 16 of 32 Exhibit "B"
Page 1 of 1
Residency Incentive
To facilitate Employee's presence in the community and his participation in civic and
community affairs, City will provide Employee a loan to assist with a down payment for
Employee to purchase real property, subject to all of the following:
1. The property must be the employee's permanent place of residence and must be
within the corporate boundaries of the City of Culver City.
2. The Joan shall be evidenced by a note secured by a First Deed of Trust and in a
form approved by the City Attorney's office.
3. The loan shall not exceed 90% of the purchase price of the property up to $1. 2 .million.
4. The Employee shall have the option of an interest-only or interest and principal 30
year note with hi-weekly payments in the form of payroll deduction. The
amortization period may be Jess than 30 years or paid early with no pre-payment
penalty at the request of the ,employee_
5. The initial annual interest rate on the loan shall be one-half percentage point
greater than the effective yield on investments in the State of California Local
Agency Investment -Fund. for the month immediately Pre- eeding e5recutibh Of the
loan agreement.
6. On August 1 of each year the interest rate shall be reset one-half percentage point
above the effective yield on investments in the State of California Local Agency
Investment Fund for the month ending the preceding June 30, provided further that
the interest rate shall not increase by more than one-half percent per year and no
more than three and one-half percent during the life of the loan from the initial rate
established in accordance with subsection "5" above. The rate shall not decrease.
7. The Employee shall be responsible for property taxes and insurance. The City shall
be named as an additional insured in an endorsement to the policy.
The loan shall be payable in full within twenty-four (24) months of the date
employee leaves employment with the City or upon the sale, lease or transfer of the
property, whichever is earlier_
9. in enforcing its rights and collecting any sums due, the City shall have all rights
normally possessed by a lien holder in such a transaction and, in addition, shall
have the power to collect sums due by payroll deduction or by deduction from other
employee benefits payable to employee if that is deemed necessary by the Chief
Financial Officer to protect the interests of the City.
'10. Cash expenses to fund the loan, including escrow fees, appraisal fees, and title
fees, shall be paid by the employee (unless paid by the seller of the property), but
may be added to the principal amount of the loan secured by the first trust deed.
The employee shall be required to employ an appraiser who meets the approval of
the Chief Financial Officer. Contract No. 2010-237A
JOHN NACHBAR, CITY MANAGER
AMENDMENT TO -
EXECUTIVE EMPLOYMENT AGREEMENT
This Amendment to Employment Agreement is entered into on this 20 th day of
December, 2010, by and between the City of Culver City, California, a municipal •
corporation, hereinafter referred to as "City", and John Nachbar, hereinafter known as
"Employee". The City and the Employee are collectively referred to as "the Parties" and
agree as follows:
WHEREAS, on July 12, 2010, the Parties entered into a contract to appoint
Employee as City Manager (the "Executive Employment Agreement"); and
WHEREAS, the parties desire to modify and amend a certain provision of the
Executive Employment Agreement; and
WHEREAS, at its meeting of December 13, 2010, the City Council authorized
this Amendment to the Executive Employment Agreement.
NOW THEREFORE, in consideration of the foregoing, City and Employee mutually
agree as follows:
1. Paragraph 5 Salary and Compensation shall be amended by adding the
following:
J. Employee Retirement Contribution: Employee shall pay the full 8%
CalPERS employee contribution rate.
2. Except as expressly set forth herein, all terms and conditions of the Executive
Employment Agreement shall remain in full force and effect.
3. This Amendment shall be effective as of December 20, 2010.
EMPLOYEE
Dated:
By:
Name: John Nachbar
Title: City Manager
(Signatures Continued on Page 2)
Page 1 Contract No. 2010-237A
(Signatures Continued from Page 1)
CITY OF CULVER CITY
Dated:
By:
Christopher Armenia,
Mayor, City of Culver City
ATTEST:
APPROVED AS TO FORM:
Martin R. Cole, City Clerk Carol Schwab, City Attorney
Page 2
i9 AMENDED
EXHIBIT "B"
Residency Incentive
To facilitate Employee's presence in the community and his participation in civic and
community affairs, City will provide Employee loans for Employee to purchase and
improve real property, subject to all of the following:
1. The property must be the employee's permanent place of residence and
must be within the corporate boundaries of the City of Culver City.
2. The loans may be disbursed in one or multiple phases, including a purchase
phase and an improvement phase and shall be evidenced by note(s)
secured by Deed(s) of Trust in a form approved by the City Attorney's
Office. Such Deed(s) of Trust shall not be subordinated to any other
Deed(s) of Trust without the written approval of the City.
3. The aggregate amount of the loans shall not exceed $1.2 million (Maximum
Loan Amount) and the Maximum Loan-to-Value Ratio shall be 90%.
4. For the purchase phase, an appraisal shall be conducted by a qualified
appraiser, subject to the approval of the City Attorney in consultation with
the Chief Financial Officer. The Purchase Phase Loan shall not exceed the
Maximum Loan-to-Value Ratio contained in Paragraph 3 hereof, Prior to
disbursement of funds into escrow by the City, a Note secured by Deed of
Trust between the City and Employee shall be duly executed. The Deed of
Trust shall be recorded in conjunction with the grant deed.
5. Within 24 months of the date of close of escrow for the purchase of the
property, Employee shall commence and conclude the Improvement Phase.
Such improvements may be financed through an Improvement Phase Loan.
The maximum amount of the Improvement Phase Loan shall be the
difference between the Maximum Loan Amount and the Purchase Phase
Loan.
6. Prior to disbursement of any funds from the Improvement Phase Loan,
Employee shall submit an Improvement Plan for approval by the City
Attorney, in consultation with the Chief Financial Officer.
7. Upon approval of the Improvement Plan, a second Note to be secured by
Deed of Trust shall be executed between the City and Employee. The
amount of the second Note and Deed of Trust shall be the difference
between the Maximum Loan Amount and the Purchase Phase Loan. The
second Note shall be referred to as the Improvement Phase Loan.
8. Subsequent to recordation of the second Deed of Trust, the Improvement
Phase Loan may be disbursed in multiple draws upon presentation by
Employee to the City of invoices or other similar documents that are
consistent with the Improvement Plan. Upon approval of such documents
by the City Attorney, the Chief Financial Officer shall be authorized to
disburse Improvement Phase Loan Funds.
Page B-1 9. Within 60 days of the conclusion of the Improvement Phase, the City
Attorney shall cause to be prepared a "Post-Improvement Appraisal" of the
property by a qualified appraiser.
10. Based upon the valuation provided in the "Post-Improvement'Appraisal" and
the aggregate total of the Purchase Loan and the Improvement Loan
(hereinafter the Post Improvement Loan Amount), the City Attorney, in
consultation with the Chief Financial Officer, shall determine the Post-
Improvement Loan To Value ratio which shall be the ratio of the Post-
Improvement Loan Amount to the Post-Improvement Appraisal.,
11. In the case the Post-Improvement Loan to Value Ratio exceeds the
Maximum Loan To Value Ratio contained in Paragraph 3 hereof, then the
City Attorney shall present Employee with a demand to provide sufficient
reimbursement to the City so that the Post-Improvement Loan to Value
Ratio is equal to or less than the Maximum Loan to Value Ratio. Such
reimbursement shall be made no later than 90 days from the date of such
demand from the City to Employee. As an alternative to direct
reimbursement, Employee may also provide a pledge of assets (for
example an irrevocable letter of credit), subject to the approval of the City
Attorney in consultation with the Chief Financial Officer.
12. The Employee shall have the option of an interest-only or interest and
principal 30 year note(s) with bi-weekly payments in the form of payroll
deduction. The amortization period may be less than 30 years or paid early
with no pre-payment penalty at the request of Employee.
13. The initial annual interest rate on the loan shall be one-half percentage point
greater than the effective yield on investments in the State of California
Local Agency Investment Fund for the month immediately preceding
execution of the loan agreement.
14. On August 1 of each year the interest rate shall be reset one-half
percentage point above the effective yield on investments in the State of
California Local Agency Investment Fund for the month ending the
preceding June 30, provided further that the interest rate shall not increase
by more than one-half percent per year and no more than three and one-
half percent during the life of the loan from the initial rate established in
accordance with Paragraph 5 hereof. The rate shall not decrease.
15. The Employee shall be responsible for prompt payment of property taxes
and insurance. The City shall be named as an additional insured in an
endorsement to all insurance policies.
16. The loans shall be payable in full within twenty-four (24) months of the date
employee leaves employment with the City or upon the sale, lease or
transfer of the property, whichever is earlier.
17. In enforcing its rights and collecting any sums due, the City shall have all
rights normally possessed by a lien holder in such a transaction and, in
addition, shall have the power to collect sums due by payroll deduction or by
deduction from other employee benefits payable to Employee if that is
Page B-2
;\.\ deemed necessary by the City Attorney in consultation with the Chief
Financial Officer to protect the interests of the City.
18. Cash expenses to fund the loan, including escrow fees, appraisal fees
(including the Post Improvement Phase Appraisal), and title fees, shall be
paid by the Employee (unless paid by the seller of the property), but may be
added to the principal amount of the loans, subject to the Maximum Loan to
Value Ratio and the Maximum Loan Amount contained in Paragraph 3
hereof.
Page B-3