HomeMy WebLinkAboutStaff Report 5.B 08/03/2009Revised'5.B
CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
August 3, 200'
Agenda Title: Resolution Approving the Second Amendment to the
Meeting Date: August 3, 2009
Agreement for Employment for City Clerk.
Meeting Time: 7:00 PM
Category: ❑ Presentation ❑ Appointments ❑ Consent ❑ Public Hearing ❑ Unfinished Business ® New Business
Department:
Director:
Contact Person:
Phone Number:
�°
Claire Cooper/
778 -4360
City Clerk
Claire Cooper
Pamala Robbins
778 -4343
Total Cost of Proposal or Project: None
Name of Fund: General Fund
Account Number: 1100 - 11320 -51110
Amount Budgeted: $91,915.00
Current Fund Balance: N/A
Recommendation: It is recommended that the City Council take the following action: Adopt Resolution
approving the Second Amendment to the Agreement for Employment of City Clerk Claire Cooper to remove
incorrect wording regarding seven percent (7 %) contribution by the City on the employee's behalf to the
California Public Employee Retirement System.
1. ❑ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading
2. ❑ First reading of Ordinance approved without unanimous vote: Ordinance has been published /posted prior to second
reading; see Attachment
3. ❑ Other action requiring special notice: Notice has been given, see Attachment
Summary Statement: The City entered into an Agreement for Employment of City Clerk Claire Cooper on
June 6, 2005. The Agreement provided for an annually compensation of $86,538. That compensation amount
was amended on June 4, 2007 to provide for an annual compensation of $91,915.00. That remains the annual
compensation to date. Recently the California Public Employees Retirement System ( "PERS ") reviewed the
City's payroll reporting and enrollment processes as these processes relate to the City's health and retirement
contracts with PERS ,and issued a report. In that report, PERS determined that the City needs to correct the
reporting of the City Cleric's compensation and make adjustments, if any, in how the City reports the City
Clerk's annual compensation. The recommended Resolution corrects the wording of the Agreement and thus
clarifies that the City Clerk, not the City pays the employee's seven percent (7 %) PERS contribution and that the
City Clerk's annual compensation is $91,915:00. This correction does not involve a cost to the City.
Attachments to Agenda Packet Item:
1. Second Amendment to Employment Agreement.
2. Draft Resolution Approving Second Amendment to Employment Agreement.
Reviewed by Finance Director:
Reviewed by CiU Attorney:
Approved InL ate Manager:
��o,
ate:
Date:
Date:
Rev. # 2 Date Last Revised: 7 -13 -2009 File:
CITY OF PETALUMA, CALIFORNIA
AUGUST 3, 2009
AGENDA REPORT
FOR
RESOLUTION APPROVING THE SECOND AMENDMENT TO THE
AGREEMENT FOR EMPLOYMENT FOR CITY CLERK
RECOMMENDATION:
Adopt Resolution approving the Second Amendment to the Agreement for Employment of City Clerk
Claire Cooper to remove incorrect wording regarding seven percent (7 %) contribution by the City on the
employee's behalf to PERS.
2. BACKGROUND:
The City's Agreement for Employment with City Clerk Claire Cooper, Section 4. Compensation states,
"The City agrees to pay Employee for her services rendered annual compensation of Eighty -Six
Thousand Five Hundred Thirty Eight Dollars($ 86,538.00), of which seven percent (7 %) of the annual
compensation will be contributed by the City on Employee's behalf to the California Public
Employment Retirement System, for a total annual compensation of $86,538.00 inclusive of the PERS
contribution.
That Agreement was amended on June 4, 2007 and states, The City agrees to pay Employee for her
services rendered annual compensation of Ninety -One Thousand Nine Hundred Fifteen
Dollars($91,915.00), of which seven percent (7 %) of the annual compensation will be contributed by the
City on Employee's behalf to the California Public Employee Retirement System, for a total annual
compensation of $91,915.00 inclusive of the PERS contribution.
The City compensates the City Cleric an annual amount of $91,915 and reports that compensation as
salary to PERS. The City Clerk pays seven percent (7 %) of her annual compensation to PERS. The
City does not pay that contribution on her behalf.
Recently PERS reviewed the City's compliance with its contract provisions and determined that the City
has incorrectly been reporting the City Clerk's salary to PERS. PERS made this determination based
upon the language of the Agreement, because PERS believes it implies that the City has a program
known as Employer Paid Member Contribution (EPMC) based upon the following language, "...seven
percent (7 %) of the annual compensation will be contributed by the City on Employee's behalf...." The
City does not have EPMC. Employees of the city make the seven percent (7 %) contribution from their
earnings and pay that amount directly to PERS. The City did at one time have EPMC and it is likely
that the Agreement language was simply carried over in error.
The City advised PERS that the City does not have EPMC, that the Agreement was in error to the extent
it implied the City has EPMC, and that the City will correct the unintentional error.
2
The recommended Resolution corrects the language in the Agreement and states that the City Clerk is
responsible for payment of the member contribution. PERS has approved the contract amendment
revision language.
3. FINANCIAL IMPACTS:
City Clerk Claire Cooper's annual compensation amount is $91,915. The City Clerk pays seven percent
(7 %) of her salary to PERS as required. The Resolution approving the Second Amendment to the
Agreement for Employment for City Clerk does not change the Clerk's compensation. Therefore, the
adjustments to the contract will not result in any cost to the City and there is no financial impact.
SECOND AMENDMENT TO
AGREEMENT FOR EMPLOYMENT OF CITY CLERK
RECITALS
WHEREAS, the CITY and CITY CLERK are parties to an EMPLOYMENT AGREEMENT
( "Agreement "); and,
WHEREAS, the current EMPLOYMENT AGREEMENT was executed June 6, 2005; and,
WHEREAS, the First Amendment to the Employment Agreement was executed on June 4,
2007; and,
WHEREAS, it is the desire of the City to clarify the compensation of the CITY CLERK,
NOW, THEREFORE, CITY and CITY CLERK hereby agree to amend Section Four (4) of the
EMPLOYMENT AGREEMENT as modified by the First Amendment to the Employment Agreement
to read in full as follows:
Section 4. Compensation.
The City agrees to pay Employee for her services rendered annual compensation of
Ninety -One Thousand Nine Hundred Fifteen Dollars ($91,915.00). Employee is responsible for
payment of all mandatory member contribution amounts to the California Public Employee
Retirement System ( "CalPERS11).
C\/c4 ERC11,fer Q retGI GRRUGI G�SGfl lTT T -$91,915.00, 'in GIUSiVe Gf the PERS
GeRfribution, pGyable iR iRStGIIMeRt5 Gt the sGme time Gs ether empleyees ef the City Gre paid.
All terms and conditions of the Employment Agreement shall other than as expressly stated
herein shall remain in full force and effect.
2
IN WITNESS WHEREOF, the CITY has caused this Second Amendment to be signed and
duly executed by the Mayor on behalf of the City of Petaluma, duly attested to by the Deputy
City Clerk, and duly signed and executed by Claire Cooper on behalf,of herself as Employee,
EMPLOYEE:
Claire Cooper
APPROVED AS TO FORM:
Eric Danly, City Attorney
APPROVED:
Pamela Torliatt, Mayor
ATTEST:
Deborah Padovan, Deputy City Clerk
Resolution No. 2009 -XXX N.C.S.
of the City of Petaluma, California
RESOLUTION APPROVING SECOND AMENDMENT TO
EMPLOYMENT AGREEMENT
FOR CITY CLERK CLAIRE COOPER
WHEREAS, the City of Petaluma ( "CITY ") and Claire Cooper ( "CITY CLERK ")
currently have in place an Employment Agreement ( "AGREEMENT "); and,
WHEREAS, the First Amendment to the Employment Agreement was executed
on June 4, 2007; and,
WHEREAS, it is the desire of the City to clarify the compensation of the CITY CLERK.
NOW, THEREFORE, BE IT RESOLVED that the City Council approves the Second
Amendment to Employment Agreement for City Clerk Claire Cooper, effective June 4, 2007,
with a total compensation of $91,915.00.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 3`d day of August, form:
2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
City Clerk
Mayor
City Attorney