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HomeMy WebLinkAboutStaff Report 273-05" City of Palo Alto City Manager's Report 6 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE DATE: JUNE 6, 2005 CMR: 273:05 SUBJECT: APPOINTMENT OF RUSSELL CARLSEN AS HUMAN RESOURCES DIRECTOR RECOMMENDATION The City Manager recommends that the Council confirm his appointment of Russell Carlsen as City of Palo Alto Human Resources Director. BACKGROUND Municipal Code Section 2.08.020 requires that the City Council confirm the City Manager's appointment of City department heads. DISCUSSION Mr. Carlsen brings to the City extensive management experience in both the public and private sectors. He received his Masters Degree in Management/Human Resources from the University of Redlands and his Bachelors Degree from the University of Washington. Mr. Carlsen has served as interim city manager and city manager in a number of California communities. He took a leave of absence from his current job working as chief of staff for a King County council member in order to come to Palo Alto in March 2005. Since coming to Palo Alto, he has been pivotal to such key initiatives as the Utilities investigation, the Hourly Unit labor negotiations, and preparation for implementation of the 2005-05 General Fund staffing reductions. He is a key member of the team overseeing implementation of changes to the span of control issues identified in the City Auditor's report. He is also leading an initiative to prepare a restructuring plan for the Human Resources Department, in conjunction with a citywide team appointed by the City Manager. RESOURCE IMPACT The a111).ual salary for the Human Resources Director position is $ 144,310. The City will be providing Mr. Carlsen with relocation assistance as authorized in the Management Benefit and Compensation Plan. This will not include a real estate loan. CMR: 273:05 Page 1 of2 POLICY IMPLICATIONS This appointment is consistent with existing City policy that new department heads be hired as "at will" employees. PREPARED BY CITY MANAGER APPROVAL CMR: 273:05 Page 2 of2 EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PALO ALTO AND RUSSELL CARLSEN THIS AGREEMENT is between the City of Palo Alto I a municipal corporation and chartered city ("City") I and Russell Carlsen, its Director of Human Resources wi th the City of Palo Alto ("Carlsen"). It is effective on the latest date next to the signatures on the last page. This Agreement is entered into on the basis of the following facts, among others: A. City, acting by and through its duly appointed Ci ty Manager and wi th the approval of its duly elected Ci ty Council, .desires to employ Carlsen as its Director of Human Resources with the City of Palo Alto subject to the terms and conditions set forth in this Agreement, the Pa~o Alto Municipal Code and in the Charter· of the City of Palo Alto (the "Charter") . B. Carlsen desires to be employed by the City as its Director of Human Resources wi th the City of Palo Alto, subj ect to the terms and conditions set forth in this Agreement, the Palo Alto Municipal Code, and in the Charter. C. Ci ty and Carlsen desire to establish specific terms and conditions relating to compensation and benefits, performance evaluations, and related matters. D. Notwithstanding any provision of the City of Palo Alto Merit System Rules and Regulations, the City desires Carlsen to serve on an at-will basis, with no expectation of continued employment, and with no right to pre-or post- separation due process of appeal. E. Carlsen desires a predictable amount of severance notice and severance pay should his employment be terminated with or without cause or notice. BASED UPON THE FOREGOING, CITY AND CARLSEN AGREE AS FOLLOWS: 1. Employment. City will appoint and employ Carlsen as Director of Human Resources wi th the Ci ty of Palo Alto and Carlsen will accept the appointment and employment for the City for an indefinite term. -1-. 050601 sm 8260102 2. Duties of Director of Human Resources. Carlsen shall perform the duties established for the Director of Human Resources by the Charter, Palo Alto Municipal Code, direction of the City Manager, or as otherwise provided by law, ordinance, or regulation. 2.1. Full Energy and Skill. Carlsen shall devote his full energy, skill, ability, the performance of his duties. and productive time to 2.2. No Conflict. Carlsen shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or potentially in conflict with, inimical to, or which interferes with the performance of his duties. Carlsen acknowledges that he is subject to the various conflict of interest requirements found in the California Government Code and State and local policies and regulations. 2.3 Permission Required For Outside Activities. Carlsen shall not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, without the express, written permission of the City Manager. 3. Compensation. Director of Human Resources, provided in this Section 3. While performing the duties of Carlsen shall be compensated as 3.1. Compensation. Carlsen shall receive an ini t.ial base annual salary of One Hundred Forty Four Thousand Three Hundred and Ten Dollars ($144,310.00) commencing on the effective date of the contract. 3.2. Salary Adjustments. Not less than once each year, the City Manager shall meet with Carlsen for the express purpose of evaluating the performance. of Carlsen. The City Manager will act in good faith in determining whether to increase the salary of Carlsen, but the ultimate decision in this regard is within the sole discretion of the City Manager. 3.3. Variable Management Compensation.. Carlsen shall be entitled to receive Variable Management Compensation pursuant to the terms of the City Council-approved Management Compensation plan. -2- 050601 8m 8260102 4. Regular Benefits and Allowances. Carlsen will be eligible for, and shall receive, all regular benefits (i .e., health insurance, PERS contribution paid by City, etc.), and vacation, sick leave, and manageme~t leave as are generally provided to management employees pursuant to the City Counci1- approved Management Compensation Plan. 5. Addi tional Benefits and Allowances. In addition to the benefits specified in section 4, Carlsen shall receive the following additional benefits and allowances. 5.1 Automobile Allowance. a $325 monthly auto allowance. Carlsen shall receive 5.2 Sick Leave Balance Upon Start of Employment. Carlsen shall be credited with ninety-six (96) hours of sick leave to use if necessary, immediately upon the start of employment. Carlsen will not accrue additional sick leave during the first year of employment. This sick leave is being advanced instead of being accrued on a bi-week1y basis over the course of Carlsen's first year of employment. If Carlsen separates from City employment prior to accruing (advanced) sick leave Carlsen agrees to provide a personal check in the amount of the sick leave used· but not yet accrued during his service with. the City. 5 . 3 Vacation Leave. Carlsen shall receive one hundred sixty (160) hours of vacation accrual per year, based on his service with a prior employer. This vacation leave shall be available to Carlsen for use immediately on the start of employment, without any waiting period. The vacation leave is being advanced instead of being accrued on a bi-weekly basis over the course of Carlsen's first year of employment. If Carlsen separates from City employment prior to accruing (advanced) vacation leave for which he receives pay, Carlsen agrees to provide a personal check in the amount of the vacation leave used but not yet accrued during his service with the City . . 5.4. Payment for COBRA Benefits Until Regular Ci ty Benefits Become Effective. Ci ty and Carlsen acknowledge that City health care benefits become effective and available on the first day of the first month after an employee's start date. City will to pay the cost of COBRA benefits for Carlsen until City benefits become effective. 5.5. Relocation Assistance. relocation costs for Carlsen as follows: -3- 050601 sm 8260102 Ci ty will pay for 5.5.1. Household Goods Shipment. Full costs will be paid for the shipment of all personal items normally considered "Household Goods." Full costs will be paid for the storage of Household Goods for up to thirty (30) days. Items excluded include recreational vehicles, firewood, building materials, sand, boats, airplanes, and perishable items such as food and plants consistent with the "Management and Professional Personnel and Council Appointees Compensation Plan" under "Basic Benefits for Council-Appointed Officers, Assistant City Manager and Department Heads." 5.5.2. Reimbursement for Relocation Expenses. Carlsen ·shall receive full reimbursement for relocation expenses consistent with the "Management and Professional Personnel and Council Appointees Compensation Plan" under "Basic Benefits for Council-Appointed Officers, Assistant City Manager and Department Heads." 5.5.3. En Route Expenses. Carlsen shall receive full reimbursement for the reasonable costs of en route expenses for a single roundtrip via car to and from Seattle, Washington, for the purpose of completing mov~ng arrangements. 5. 5 .4 . Temporary Living Expenses. Carlsen shall receive full reimbursement for the reasonable costs of temporary lodging expenses during the period between which this agreement becomes effective and the date on which Carlsen takes possession of his Palo Alto apartment, on or about July 5, 2005. 5.5.5. Renter Expenses. Carlsen shall receive full reimbursement for the reasonable costs arising from the need to break his existing lease in Seattle, Washington, and the full cost of the first and last month's rent for his Palo Alto rental accommodations. 5.6. Long-Term Rental Subsidy. Carlsen has decided to rent in the City of Palo Al to. for an undetermined period of time, and shall receive a rental subsidy of five hundred dollars ($500.00) per month for up ito forty-eight (48) months. Carlsen may request, and City Manager may authorize, extension of this renter subsidy for an additional twelve (12) months. 6. Additional Expenses of Employment. City shall pay the following usual and customary employment expenses: 6.1. The cost of any fidelity or other bonds required by law for the Director of Human Resources. -4- 050601 sm 8260102 7. Duration of Employment. Carlsen understands and agrees that he has no constitutionally protected property or other interest in his employment as Director of Human Resources. He understands that notwithstanding any provision in the Merit System Rules and Regulations, he has no right to pre-or post- disciplinary due process. He understands and agrees that he works at the will and pleasure of the City Manager and that he may be terminated, or asked to resign, at any time, with or without cause, upon 30 days written notice to Carlsen. Carlsen may terminate this agreement upon 30 days written notice to the City Manager. 7.1. Severance Pay. If Carlsen is asked to resign or is terminated as Director of Human Resources, he shall receive a cash payment, or payments (without interest) at intervals specified by Carlsen, equivalent to the sum of his then-current monthly salary, multiplied by six (6), and the cash value, as reasonably determined by City, .of his monthly non- salary benefits mUltiplied by six (6). The monthly non-salary benefits shall be those specified in sections 4 and 5.2 of this Agreement. All normal wi thholdings shall be made with respect to any amounts paid under this section, as required by law. 8. Miscellaneous. 8.1. Notices. Notices given under this Agreement shall be iIi writing and shall be ei·ther: a) served personally; or b) sent by facsimile (provided a hard copy is mailed within one (1) business day); or c) delivered by first-class United States mail, certified, with ·postage. prepaid and a return receipt requested; or d) sent by Federal Express, or some equivalent private mail delivery service. Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States maii, postage prepaid. Notices . shall be directed to the addresses shown below, provided that a party may change such party's address for notice by giving written notice to the other party in accordance with this subsection. CITY: 050601 sm 8260102 Attn: Mayor City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Phone: ( 65 0 ) 329 - 2 2 2 6 FAX: (650) 328-3631 -5- DIRECTOR OF HUMAN RESOURCES: Russell Carlsen clo City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Phone: 650-329-2376 Fax: 650-329-2696 8.2. Entire Agreement/Amendment. This Agreement consti tutes the entire understanding and agreement between the parties as to those matters contained in it, and supersedes any and all prior or contemporaneous agreements, representations and understandings of the parties. This Agreement may be amended at any time by mutual agreement of the parties, but any such amendment must be in writing, dated, and signed by the parties and attached hereto. 8.3. Applicable Law and Venue. This Agreement shall be interpreted according to the laws of the State of California. Venue of any action regarding this Agreement shall be in the proper court in Santa Clara County. 8.4. Severability. In the event any portion of this Agreement is declared void, such portion snaIl be ,severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated. 8.5. Waiver.' Any failure of a party to insist upon strict compliance with any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such term, undertaking, or condition. To be effective, a waiver must be in writing~ signed and dated by the parties. 8.6. Representation by Counsel. Carlsen and City acknowledge that they each did, or had the opportunity to, consult with legal counsel of their respective choices with respect to the matters that are the subj ect of this Agreement prior to executing it. II II II -6-- 050601 sm 8260102 8.7 Section Headings. The headings on each of the sections and subsections of this Agreement are for the convenience of the parties only and do not limit or expand the contents of any such section or subsection. Dated: Dated: Attest: City Clerk Approved as to Form: By: Melissa C. Tronquet Deputy City Attorney 050601 sm 8260102 CITY OF PALO ALTO By Mayor By City Manager DIRECTOR OF HUMAN RESOURCES Russell Carlsen -7- , .