1994 AGN JUN 08 I29 - Laserfiche WebLink

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AGENDA REPORT City Council Meeting May 31, 1994 the contract is greater than 18 months, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by 18. (b) The cash settlement formula described in subdivision (a) is a cap or maximum ceiling on the amounts that may be paid by as local agency employer to an employee and shall not be construed as a target or example of the amount of the cash settlement to be paid by a local agency employer to an employee in all contract termination cases." (Government Code Section 53620) Thus, any contract with a new City Manager may provide up to the maximum cash settlement amount permitted by statute. The current City Manager ordinance permits termination without additional compensation of the City Manager for any reason if a unanimous vote to terminate occurs. It permits termination without additional compensation for any reason after notice and hearing with a simple majority vote. As an alternative to a cash settlement provision in a contract with the City Manager, the Council may wish to submit an amendment to the City Manager Ordinance to the electorate that requires a "super majority" vote for termination. The Council could propose amending the City Manager Ordinance so that five or six votes are required for termination. This would give a City Manager a sense of security and independence from the political shifts that tend to occur on the Council without exposing the City to liability for termination compensation. Alternatively, the Council could submit a proposal to amend the City Manager's Ordinance by permitting the Council to establish the terms of employment and termination on a case by case basis. Such an amendment would also require approval by the electorate. In short, there are any number of possible approaches to changing the way in which the City deals with City Managers. Only a few issues have been considered here. It might be advisable, if the Council wishes to proceed to consider changes such as those outlined in this report, or others yet to be contemplated, to establish a subcommittee to recommend particular contract provisions or amendments to the City Manager Ordinance. There is still time to place any ordinance amendments on the November ballot, if the Council moves forward quickly. RECOMMENDATION If the City Council wishes to develop contractual terms for the employment of the City Manager, or if the Council wishes to amend the City Manager Ordinance to permit more flexibility in the employment of the City Manager, it should direct staff to prepare a contract for