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CC 2017-03-28_12a Appointment of City Manager MEMORANDUM TO: CITY COUNCIL FROM: ROBERT K. MCFALL, INTERIM CITY MANAGER SUBJECT: CONSIDERATION OF A RESOLUTION CONFIRMING THE APPOINTMENT OF JAMES BERGMAN AS CITY MANAGER FOR THE CITY OF ARROYO GRANDE DATE: MARCH 28, 2017 RECOMMENDATION: It is recommended the City Council adopt a Resolution confirming the appointment of James Bergman as City Manager for the City of Arroyo Grande and authorizing the Mayor to execute the employment agreement. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Total annual compensation for the City Manager is approximately $237,100 including all salary and benefits. The current FY 2016-17 budget assumed total costs of $242,100 for the position. Variances from the budget include an estimate for annual leave buy back provisions included in the employment agreement. BACKGROUND: The previous City Manager separated employment with Arroyo Grande in June, 2016. Immediately following, the City Council engaged in the recruitment of a City Manager, which has transpired over the past several months. With the assistance of an executive search firm, over 50 applicants were screened as potential candidates. On March 11, 2017, the City Council interviewed the highest ranked candidates and determined that Mr. Bergman was the most qualified and well suited applicant for the position. ANALYSIS OF ISSUES: Based on the City Council's direction, negotiations ensued with Mr. Bergman, resulting in the employment agreement and Resolution that are attached for Council consideration. Key terms of the employment agreement include a base salary of $179,000 annually and a City contribution to a deferred compensation program of $2,200 annually, all in accordance with the City Manager Recruitment bulletin and consistent with the compensation package provided to the previous City Manager. In accordance with CalPERS rules, as Mr. Bergman was previously an employee of Arroyo Grande, he will return to the CalPERS retirement formula of 2.5% at 55 provided at that time. The compensation package includes additional benefits similar to those afforded other executive employees, such as medical, dental, vision and life insurance, annual leave and auto allowance. Item 12.a. - Page 1 CITY COUNCIL CONSIDERATION OF A RESOLUTION CONFIRMING THE APPOINTMENT OF JAMES BERGMAN AS CITY MANAGER FOR THE CITY OF ARROYO GRANDE MARCH 28, 2107 PAGE 2 A resident of Arroyo Grande, Mr. Bergman has over 20 years of public service experience. Mr. Bergman was previously the Planning and Building Director for the County of San Luis Obispo, a department with a budget and number of employees generally comparable to the City of Arroyo Grande. Prior to working for the County, Mr. Bergman was the Community Development and Planning/Building Director for the City of Windsor and the Planning Manager for the City of Arroyo Grande. Mr. Bergman obtained a Bachelor of Arts in Political Science from Cal State Chico, graduating “Summa Cum Laude” and earned a Masters of City and Regional Planning from Cal Poly, San Luis Obispo, graduating “With Distinction.” When Mr. Bergman left Arroyo Grande for a promotional opportunity, he shared with some that his dream would be to return as its City Manager. Within the cover letter Mr. Bergman submitted with his application, he made this statement regarding his leadership approach: “…to work respectfully with the entire spectrum of the community, listening more than talking, finding more in common with individuals and groups than differences, using the inherently strong social capital of this community, bringing those shared ideas to the correct table, and stepping away and letting the accolades fall where they belong onto the community itself.” Pending approval by the City Council, Mr. Bergman’s start date will be May 1, 2017. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution confirming the appointment of James Bergman as City Manager; 2. Do not adopt a Resolution confirming the appointment; or 3. Provide direction to staff. ADVANTAGES: The City Council has interviewed and vetted several potential candidates for the City Manager position. Appointing Mr. Bergman completes the recruitment process. DISADVANTAGES: There are no identified disadvantages to the recommendation. ENVIROMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2 Item 12.a. - Page 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPOINTING JAMES BERGMAN AS CITY MANAGER FOR THE CITY OF ARROYO GRANDE AND AUTHORIZING THE MAYOR TO EXECUTE THE EMPLOYMENT AGREEMENT WHEREAS, the City of Arroyo Grande ("City") is a general law city with a Council- Manager form of government; and WHEREAS, the City Council appoints the City Manager in accordance with Chapter 2.08 of the Arroyo Grande Municipal Code; and WHEREAS, the former City Manager's employment with the City ended on June 28, 2016; and WHEREAS, the City Council desired to recruit for a new City Manager; and WHEREAS, an Interim City Manager was appointed on August 24, 2016, to serve while the City Council conducted a City Manager recruitment process; and WHEREAS, on March 11, 2017, the City Council met in closed session and directed the Interim City Manager to negotiate an employment agreement with James Bergman for the City Manager position; and WHEREAS, the negotiations resulted in an agreement as to the terms and conditions of employment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande that James Bergman is appointed to serve as the City Manager for the City of Arroyo Grande and the Mayor is authorized, on behalf of the City Council, to execute the City Manager Employment Agreement, a copy of which is attached as Exhibit A, setting forth the terms and conditions of employment for James Bergman, effective May 1, 2017. On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 28th day of March, 2017. Item 12.a. - Page 3 RESOLUTION NO. PAGE 2 _______________________________________ JIM HILL, MAYOR ATTEST: _______________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _______________________________________ ROBERT McFALL, INTERIM CITY MANAGER APPROVED AS TO FORM: _______________________________________ HEATHER WHITHAM, CITY ATTORNEY Item 12.a. - Page 4 EXHIBIT A Item 12.a. - Page 5 Item 12.a. - Page 6 Item 12.a. - Page 7 Item 12.a. - Page 8 Item 12.a. - Page 9 Item 12.a. - Page 10 Item 12.a. - Page 11 Item 12.a. - Page 12 Item 12.a. - Page 13 Item 12.a. - Page 14 Item 12.a. - Page 15 Item 12.a. - Page 16 Item 12.a. - Page 17 Item 12.a. - Page 18