1994 AGN JUL 05 I25 - Laserfiche WebLink

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AGENDA REPORT CITY OF COLTON For City Council Meedxz of July 5, 1994 May 31, 1994 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Julie Hayward Biggs, City Attu SUBJECT: City Manager Contract BACKGROUND At the last City Council meeting, Councilmember Bennett suggested that a form contract be created for the position of City Manager. The purpose for developing such a contract is to provide a method of compensation for the City Manager that encourages fiscal responsibility with regard to the handling of the City's finances and that assures security and independence of the City Manager when a new permanent City Manager is hired. As you are all aware, the City Manager Ordinance (Colton Municipal Code Chapter 2.16) controls the terms of employment of the Colton City Manager. Because that ordinance was enacted by a vote of the electorate, it may only be amended by a vote of the people. The City Manager Ordinance specifically notes that the City Manager is to be appointed for an "indefinite term," and requires that the City Manager's salary be set by resolution adopted by the City Council. Nothing in these provisions, however, appears to prohibit a contract with the City Manager that provides compensation, to be set by resolution, predicated on certain performance standards. Similarly, nothing in the City Manager Ordinance precludes a cash settlement in the event of involuntary termination. The City Manager Ordinance does contain specific provisions regarding procedures for termination, and those provisions must be included in any contract developed. Recent legislation has limited the amount of compensation that may be paid under a public employment contract as follows: "(a) All contracts of employment between an employee and a local agency employer shall include a provision which provides that regardless of the term of the contract, if the contract is terminated, the maximum cash settlement that an employee may receive shall be an amount equal to the monthly salary of the employee multiplied by the number of months left on the unexpired term of the contract. However, if the unexpired term of Item Pb. 4.40,