(1)AR 052809 Employment Agreement

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CITY OF COLTON AGENDA REPORT FOR COUNCIL SPECIAL MEETING OF MAY 28, 2009 TO: Honorable Mayor and City Council FROM: Dean Derleth, City Attorney SUBJECT: Amendment to Police Chief Miller's Employment Agreement to Provide for Interim City Manager Services While a Permanent City Manager is Recruited DATE: May 28, 2009 BACKGROUND: As you know, City Manager Daryl Parrish announced his resignation from the City of Colton, and his last day with the City is May 28, 2009. At a special meeting held on May 12, 2009, the City Council announced that in closed session it had voted unanimously to appoint Police Chief Bob Miller to perform Interim City Manager duties, pending negotiation of an acceptable amendment to his Employment Agreement. DISCUSSION/ANALYSIS: The City Attorney and a Council ad-hoc committee made up of Mayor Chastain and Council Members Toro and Yzaguirre have negotiated a proposed amendment to Police Chief Miller's Employment Agreement, a copy of which is attached hereto. The proposed amendment provides that Chief Miller will perform Interim City Manager duties, along with his Police Chief duties, for up to one year, though we understand that the City Council is confident that a permanent City Manager will be recruited in much less time than one year. As consideration for Chief Miller performing two roles for the City, the amendment provides an increase of approximately 16% above his current compensation, for a total temporary compensation of $217,104. As you know, Police Chief Miller does not wish to fill the permanent City Manager position, and is particularly interested in making certain that he is able to retain his Police Chief position upon the conclusion of his Interim City Manager services. To this end, therefore, the amendment provides the Chief with this protection. FINANCIAL IMPACT: The $217,104 represents an approximate annualized cost savings of $172,781, since Chief Miller is performing the duties of two positions and the City Manager's current salary is approximately $202,931. Funds for the additional temporary compensation are available in the City Manager's budget. ORANGE\DDERLETH\57332.3