(8)AR 081908 City Manager Employment Agreement

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ITEM #10 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF August 19, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY ATTORNEY SUBJECT: APPROVAL OF CITY MANAGER EMPLOYMENT AGREEMENT DATE: August 13, 2008 BACKGROUND: The City Council and City Manager Daryl Parrish originally entered into a City Manager employment agreement in June 2001. The agreement has since been amended five (5) times, through five separate amendments approved by the City Council. The City Council recently evaluated the City Manager's performance, with the assistance of Dr. Bill Mathis of the Mathis Consulting Group. DISCUSSION/ANALYSIS: As a result of the City Manager's performance evaluation and negotiations, the City Council directed the preparation of revisions to Mr. Parrish's employment agreement, including an extension of the agreement term and base salary increases. The term of the agreement will be extended to 2010, with an automatic rolling evergreen clause which will maintain a twenty-four (24) month term unless and until the City Council provides notice not to continue the automatic extensions. The salary increases include a two percent (2%) increase (initially agreed to be effective immediately, but which Mr. Parrish has asked to be delayed until October 1, 2008), in addition to the previously negotiated COLA (minimum 2% and maximum 3%) also to be effective on October 1, 2008 (it had been scheduled for July 1, 2008, but all City COLA increases have been postponed to October). In addition, this Agreement provides for a two percent (2%) increase to become effective in one year; provided, however, that before this date and based upon a performance evaluation, the City Council shall meet and consider whether this adjustment shall be increased by up to a maximum of two percent (2%) (for a total adjustment of up to four percent (4%), in its sole discretion, based upon performance and budget concerns. In addition, the agreement has been restated to include all relevant provisions of the five (5) approved amendments, as well as minor clean-up language to the severance provision (to indicate that the severance cannot be more than the unexpired term as provided for my law and that it is not applicable to automatic terminations provided for in the agreement) and a consolidation of the performance review, goals and objectives and agreement revision provisions (original Sections 7, 8 and 9 and are now consolidated into Section 7). RV PUB\NSTUBBS\752412.3