HomeMy WebLinkAbout12/15/2009, C2 - APPOINTMENT OF CITY MANAGER councit 12-15-09
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CITY O F SAN LUIS O B I S P O
FROM: Dave Romero, Mayor
Andrew Carter,Vice Mayor
Prepared By: Monica Irons, Human Resources Director
SUBJECT: APPOINTMENT OF CITY MANAGER
RECOMMENDATION
1. Appoint Katie E. Lichtig as City Manager.
2. Approve contract of employment with Ms. Lichtig and authorize the Mayor to sign.
3. Authorize the Director of Finance and Information Technology to adjust appropriate
accounts to reflect the compensation changes.
DISCUSSION
Background
On July 9, 2009 City Manager Ken Hampian announced his intent to leave his employment by
the City at the end of 2009. Hampian has been City Manager for nine years and was appointed to
the position after serving 11 years in the Assistant City Manager role.
On August 4, 2009, the City contracted with Teri Black & Company(TBC) to conduct a national
recruitment for a city manager. Teri Black is the President of TBC and the principal committed
to this recruitment. Ms. Black met with the Council, community members, department heads,
employees, and labor representatives to understand the desirable qualities for the next city
manager. The search included outreach to professional organizations such as the California
League of Cities, the California International City Managers Association (Cal-ICMA), ICMA,
and the California City Managers Foundation as well as Ms. Black's extensive network in the
city management profession.
The search attracted over 100 candidates. With the assistance of Ms. Black the candidate field
was narrowed and seven candidates were interviewed by the Council at a November 13, 2009
closed session. Four candidates were invited back to continue discussions with the Council and
five department heads on November 14, 2009. At the end of this process, Ms. Lichtig emerged
as the top candidate. The Council provided direction to Ms. Black to begin discussions with Ms.
Lichtig regarding employment with the City.
The Candidate
Ms. Lichtig is currently the Assistant City Manager/Chief Operating Officer for the City of
Beverly Hills, California, where she has served for four years. Prior to her tenure in Beverly
Hills, Ms. Lichtig was the City Manager of Malibu, California and served as a senior executive
City Manager Recruitment Agreement Page 2
with the City of Santa Monica, California. She has served at the local and Federal levels of
government for 25 years. Ms. Lichtig holds a Masters of Public Administration from Syracuse
University and a Bachelor of Arts in Political Science/Public Service from the University of
California at Davis. Ms. Lichtig plans on relocating to San Luis Obispo.
Terms and Conditions of Employment
The agreement is attached in Exhibit A and sets forth the terms and conditions of the City
Manager appointment. It includes the following:
1. Annual salary of$221,500.
2. Health and welfare benefits consistently granted appointed officials, except that Ms.
Lichtig will accrue vacation at 160 hours per year which is commensurate with her 25
years of public sector service. She will also be granted modest initial balances of
vacation and sick leave upon appointment, given the much larger leave balances she is
losing by accepting this position. Health and welfare benefits include health, life and
long-term disability insurance, automobile allowance, deferred compensation
contribution,paid leave, and retirement.
3. Ms. Lichtig and the Council will establish mutually agreeable written goals,performance
objectives, and priorities that will serve as the basis to measure Ms. Lichtig's
performance. An interim performance evaluation will be conducted by Council no later
than October 29, 2010. Subsequent performance evaluations will be conducted annually.
4. Reimbursement for reasonable relocation expenses.
5. Housing Assistance in the form of a loan up to $125,000 for the purpose of purchasing a
primary residence in San Luis Obispo, with the interest rate set at the City's Local
Agency Investment Fund (LAIF) rate, a 10 year term, and interest only payments
amortized over 30 years.
6. A severance benefit consistent with industry standards.
While the salary is higher than the current city manager, it is appropriate based on our experience
during the recruitment process. As Council knows, other candidates at the assistant and city
manager levels were currently earning from $200,000 to $250,000 per year. Recently, several
city manager appointments have announced starting salaries in this same range and other
recruitments are currently advertising similar salaries. We could not have attracted a candidate
of Ms. Lichtig's caliber without negotiating a competitive agreement. The city manager job is
highly complex, involving the implementation of a $100 million budget, supervision of nine
department heads, and management of an organization with over 350 employees and five
represented employee associations/unions. It is a big job and the stakes are high. It demands
much—and it demands the best. Council has agreed it has found the best for San Luis Obispo in
having Ms. Lichtig serve as its new City Manager.
FISCAL IMPACT
Adequate funds are available within existing resources and fund balance will remain at policy
levels.
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City Manager Recruitment Agreement Page 3
ATTACHMENT
Employment Contract
G:\Agenda reports\2009\City Manager Contract\CAR-City Manager Contract.doc Oz
ATTACHMENT
CONTRACT OF EMPLOYMENT WITH KATIE E. LICHTIG
CITY MANAGER
THIS CONTRACT is entered into this 15th day of December, 2009 by and
between the CITY OF SAN LUIS OBISPO, State of California (hereinafter
referred to as "CITY"), and KATIE E. LICHTIG, a contract employee (hereinafter
referred to as " KATIE LICHTIG");
WITNESSETH:
WHEREAS, Charter Section 703 provides that the SAN LUIS OBISPO
CITY COUNCIL (hereinafter referred to as "COUNCIL") is responsible for-the
appointment and removal of the CITY MANAGER, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and
accepts the responsibility for supervision of the CITY MANAGER; and
WHEREAS, the COUNCIL is desirous of appointing a CITY MANAGER
and wishes to set the terms and conditions of said employment; and
WHEREAS, KATIE LICHTIG desires to accept the position of CITY
MANAGER consistent with certain terms and conditions of said employment, as
set forth in this CONTRACT.
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of KATIE LICHTIG is effective January 19, 2010.
B. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of the COUNCIL to terminate the services of KATIE LICHTIG at any
time, subject only to San Luis Obispo CITY Charter Section 709 and the
provisions set forth in Section 13 of this Contract.
C. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of KATIE LICHTIG to resign at any time from her position with the CITY,
subject only to the provision set forth in Section 14 of this Contract.
Section 2. Duties and Salary.
A. CITY agrees to employ KATIE LICHTIG as full-time City Manager of
the City to perform the functions and duties specified in the Charter and
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Municipal Code and to perform such other legally permissible and proper duties
and functions as the COUNCIL may from time to time assign.
B. It recognized KATIE LICHTIG is an exempt employee but is
expected to engage in those hours of work that are necessary to fulfill the
obligations of the City Manager's position. The parties. acknowledge KATIE
LICHTIG will not regularly participate in a formal 9-80 work schedule as is
provided to department heads and certain other City employees as part of the
City's Trip Reduction Incentive Program. However, KATIE LICHTIG is
authorized, with appropriate notification to Council, to from time to time modify
her regular work schedule in order to take time off with pay while ensuring
appropriate coverage of her duties as City Manager. Leave pursuant to this
provision shall not be used in lieu of vacation or administrative leave.
C. COUNCIL agrees to pay KATIE LICHTIG, for her services rendered
pursuant hereto, a starting annual base salary of$221,500 payable in
installments at the same time as the other management employees of the CITY
are paid. In addition, COUNCIL agrees to increase said base salary by the cost-
of-living adjustment approved by the COUNCIL for all CITY management
employees under the Management Pay-for-Performance System (Resolution No.
10036 (2008 Series) and any successors.
Section 3. Benefits.
In addition to the salary set forth in Section 2 of this CONTRACT, KATIE
LICHTIG shall be entitled to the same benefits as those offered by the CITY to
the CITY MANAGER, in accordance with Resolution No. 10036 (2008 Series),
Resolution 9440 (2003 Series), Resolution 8661 (1997 series) and successors.
Notwithstanding the above, KATIE LICHTIG shall be entitled to the following
leave benefits: An initial balance of 40 hours of sick leave and 40 hours of
vacation leave; and a vacation leave accrual rate of 160 hours per year in light of
her past public sector service.
Section 4. Performance Evaluation.
A. By April 30, 2010, COUNCIL and KATIE LICHTIG shall establish
mutually agreeable written goals, performance objectives, and priorities for the
performance period ending March 30, 2011. Further, Council shall conduct an
"interim" evaluation by October 29, 2010. An annual formal Council evaluation
will be conducted in March of 2011 in accordance with the City's Appointed
Official Evaluation Process. Consistent with the schedule outlined above, based
on the Appointed Officials Evaluation Process, and subject to performance as
assessed by the COUNCIL, the CITY MANAGER compensation shall be
reviewed by COUNCIL in April 2011 consistent with the Management Pay-for-
Performance System in place at that time.
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B. Each calendar year thereafter, COUNCIL shall review and evaluate the
performance and compensation of KATIE LICHTIG in accordance with the
adopted Appointed Officials Evaluation Process and adopted Management�Pay-
for-Performance System, or any successor systems.
Section 5. Outside Activities, Conduct and Behavior.
A. KATIE LICHTIG shall not engage in teaching, consulting or other non-
CITY connected business without the prior approval of COUNCIL.
B. KATIE LICHTIG shall comply with all local and state requirements
regarding conflicts-of-interest.
Section 6. Dues and Subscriptions.
COUNCIL agrees to budget for and to pay for professional dues and
subscriptions of KATIE LICHTIG necessary for her continuation and full
participation in national, regional, state, and local associations, and organizations
necessary and desirable for her continued professional participation, growth, and
advancement, and for the good of the CITY.
Section 7. Professional Development.
A. COUNCIL hereby agrees to budget for and to pay for travel and
subsistence expenses of KATIE LICHTIG for professional and official travel,
meetings, and occasions adequate to continue the professional development of
KATIE LICHTIG and to adequately pursue necessary official functions for the
CITY, including but not limited to the League of California Cities Annual
Conference, International City/County Managers' Association and such other
national, regional, state, and local governmental organizations, groups and/or
committees.
B. COUNCIL also agrees to budget for and to pay for travel and
subsistence expenses of KATIE LICHTIG for short courses, institutes, and
seminars that are necessary for her professional development and for the good
of the CITY.
C. Other professional development may be agreed upon from time to time
between the COUNCIL and KATIE LICHTIG.
Section 8. General Expenses.
COUNCIL recognizes that certain expenses of a non-personal and job-
affiliated nature are incurred by the CITY MANAGER, and hereby agrees to
authorize the Finance Director to reimburse or to pay said general and
reasonable expenses, consistent with CITY policies, upon receipt of duly
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executed expense or petty cash vouchers, receipts, statements or personal
affidavits.
Section 9. Relocation Assistance.
A. The CITY shall pay or reimburse KATIE LICHTIG all reasonable
relocation expenses incurred in moving her residence and family from Los
Angeles County to the City of San Luis Obispo. These expenses shall be limited
to the cost of packing, moving, and temporary storage of household furnishings
and up to two house-hunting trips.
B. The CITY shall reimburse KATIE LICHTIG a monthly temporary
housing rental expense not to exceed $2,500 per month to assist her while
relocating her personal residence to a new principal residence in San Luis
Obispo. This allowance shall be made available only through July 31, 2010.
C. The CITY shall make available a loan to KATIE LICHTIG, to assist with
the purchase of a principal residence within the corporate limits of the City of San
Luis Obispo CITY and KATIE LICHTIG shall execute such notes, deeds of trust,
escrow instructions, agreements and other documents as the City Attorney may
determine are reasonably necessary to effectuate this second mortgage
assistance in a form mutually determined by the.City Attorney and KATIE
LICHTIG and executed by the Mayor on behalf of CITY. The maximum amount
of such a loan shall not exceed $125,000. The interest rate shall be variable,
adjusted annually, and tied to the City's Local Agency Investment Fund rate. The
term of the loan shall be for ten years. Payments shall be amortized over 30
years. The loan shall be structured to allow for interest-only payments with a
balloon payment at the end of ten years. Rollover of existing equity in another
residence shall not be required.
Section 10. Indemnification.
In addition to that required under state and local law, CITY shall defend,
save harmless, and indemnify KATIE LICHTIG against any claims, demands,
causes of actions, losses, damages, expenses(including but not limited to
attorney's fees as may be authorized against public entities or officers consistent
with state law) or liability of any kind whether stated in or arising from tort,
professional liability or any other legal action or equitable theory, whether
groundless or otherwise arising out of an alleged act or omission occurring in the
performance of KATIE LICHTIG'S duties as CITY MANAGER to the fullest extent
permitted by law. CITY may compromise and settle any such claim or suit, and
shall pay the amount of any settlement or judgment rendered thereon.
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Section 11. Other Terms and Conditions of Employment.
The COUNCIL, in consultation with KATIE LICHTIG, shall fix any such
other terms and conditions of employment, as it may determine from time to time,
relating to the performance of KATIE LICHTIG, provided such terms and
conditions are not inconsistent with or in conflict with the provisions of this
CONTRACT, the CITY Charter or any other law.
Section 12. No Reduction of Pay and/or Benefits..
COUNCIL shall not at any time during the term of this CONTRACT,
reduce the salary, compensation or other financial benefits of KATIE LICHTIG,
except to the degree of such a reduction across-the-board for all employees of
the CITY.
Section 13. Termination and Severance Pay.
A. In the event KATIE LICHTIG'S employment is terminated by the
COUNCIL, or she resigns at the request of a majority of the COUNCIL during
such time that she is otherwise willing and able to perform the duties of CITY
MANAGER, the COUNCIL agrees to pay her a lump sum cash payment equal to
nine (9) months compensation (salary and all appointed officials fringe benefits).
Additionally, CITY shall extend to KATIE LICHTIG the right to continue and
purchase at her expense health insurance pursuant to the terms and condition of
the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) or any
successor legal requirement. KATIE LICHTIG is the City Manager for the
purposes of the benefits under the California Joint Powers Insurance Authority of
which the CITY is a member. Any associated severance benefit as a result of
termination shall be in accordance with the terms and conditions of the California
Joint Powers Insurance Authority's Memorandum of Liability Coverage in effect
at the time of termination.
B. In the event that KATIE LICHTIG is terminated for "good cause" the
COUNCIL shall have no obligation to pay the lump sum severance payment
mentioned above. For the purpose of this CONTRACT, "good cause" shall mean
any of the following:
(1) Malfeasance, dishonesty for personal gain, willful violation of law,
corrupt misconduct, or conviction of any felony.
(2) Conviction of a misdemeanor arising directly out of KATIE LICHTIG's
duties pursuant to this Agreement.
(3) Willful abandonment of duties outlined in this Agreement.
"Good cause" shall not mean a mere loss of support or confidence by a
majority of the COUNCIL.
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C. Any termination of employment shall be done consistent with limitations
established in the City Charter Section 709. Additionally, the CITY shall provide a
minimum of 30 days prior written notice to KATIE LICHTIG of the intent to
terminate this Agreement.
Section 14. Resignation.
In the event KATIE LICHTIG voluntarily resigns her position with the CITY,
she shall give the COUNCIL at least two (2) months advance written notice.
Section 15. General Provisions.
A. The text herein shall constitute the entire CONTRACT between the
parties.
B. This CONTRACT shall be binding upon and inure to the benefit of the
heirs at law and executors of the parties.
C. It is the intent of the COUNCIL that this CONTRACT and the
appointment of KATIE LICHTIG as CITY MANAGER are in accordance with the
requirements and provisions of the Charter. Wherever possible, the provisions of
this CONTRACT shall be construed in a manner consistent with the Charter. If
any provision of this CONTRACT conflicts with the Charter, the Charter shall
control.
D. If any provision, or any portion thereof, contained in this CONTRACT is
held unconstitutional, invalid or unenforceable, the remainder of this
CONTRACT, or portion thereof, shall be deemed severable, shall not be
affected, and shall remain in full force and effect.
IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this
Contract on the day and year first set forth above.
KATIE E. LICHTIG DATE
DAVID F. ROMERO, MAYOR DATE
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ATTEST:
ELAINA CANO DATE
CITY CLERK
APPROVED AS TO FORM:
P. LOWELL
City Attorney
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