B0785-0301\2790680v1.doc 3/16/2023
AGENDA REPORT
Meeting Date: March 21, 2023
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND NANCY HUNTCOFFEY Attachment: 1. Amendment No. 1
INTRODUCTION
This Amendment will amend the Employment Agreement between City Manager Nancy Hunt-Coffey and the City of Beverly Hills made on June 21, 2022.
DISCUSSION
Because the City Manager is not part of a “group or class of employment” under Government Code section 20636(e), CalPERS has greater latitude in determining what constitutes “compensation earnable” during the final compensation period. So, while the City’s retirement formula for CalPERS classic members is based on the highest year’s salary, CalPERS has the authority to examine the final three years of employment and restrict the increases of the City Manager’s “compensation earnable” (referred to colloquially as “PERSable” compensation) to that received by the most comparable group (i.e., the executive group).
The attached Amendment to Ms. Hunt-Coffey’s Employment Agreement increases her annual base salary from $366,221 to $391,400, which tempers the impact that Government Code section 20636(e) may have on her retirement benefits. The modified salary is equal to Mr. Chavez’s salary upon his retirement from the City Manager position, and reflects Ms. Hunt-Coffey’s over 35 years of experience as a public sector employee. To mitigate the financial impact of the salary increase, the Amendment reduces Ms. Hunt-Coffey’s management G-1
Meeting Date: March 21, 2023
B0785-0301\2790680v1.doc
incentive pay from $975 per month to $625 per month. It also lowers the annual cost of living increase to CPI up to 3% rather than up to 4%.
Finally, the Amendment changes the expiration date of the Agreement from December 31, 2025 to March 31, 2026 so that it remains three years, and adjusts the timeline of the severance provision accordingly.
FISCAL IMPACT
This Amendment to the City Manager’s Employment Agreement will likely increase her compensation by approximately $16,000-$20,000 per year. The impact in this fiscal year can be absorbed within existing appropriations. In future years this impact will be addressed in the budget.
Laurence S. Wiener,
City Attorney
Approved By
Attachment 1
B0785-0301\2790679v1.doc -1-
AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF BEVERLY HILLS AND NANCY HUNT-COFFEY The Employment Agreement, made as of June 21, 2022, identified as Agreement No. 396-22 (“Agreement”), between the City of Beverly Hills (“City”) and Nancy HuntCoffey (“Employee”), a copy of which is on file in the office of the City Clerk, is amended by this Amendment No. 1 (“Amendment”), effective as of April 1, 2023.
A. On June 21, 2022, the City and Employee entered into the Agreement providing for employment of Employee as City Manager from January 1, 2023 through December 31, 2025.
B. Section 3.A of the Agreement provides an annual base salary to Employee of three hundred sixty-six thousand two hundred twenty-one dollars ($366,221), with an annual cost of living increase of up to four percent (4%).
C. Section 3.B of the Agreement states that Employee shall receive Management Incentive Pay in the amount of nine hundred seventy-five dollars ($975) per month.
D. Section 10.A of the Agreement provides for a severance benefit to Employee in the event the City terminates the Agreement without cause. If the City terminates the Agreement on or before December 31, 2023, Employee shall receive a severance benefit equal to twelve (12) months of her then applicable base salary.
If the City terminates the Agreement between January 1, 2024 and December 31, 2024, Employee shall receive a severance benefit equal to nine (9) months of her then applicable base salary. If the City terminates the Agreement between January 1, 2025 and December 31, 2025, Employee shall receive a severance benefit equal to six (6) months of her then applicable base salary. All severance payments are subject to the limitations provided in Government Code sections 53260 - 53264, and sections 53243 - 53243.4.
NOW, THEREFORE, the parties amend the Agreement as follows:
1. Section 1 is amended to read:
“Unless sooner terminated, as provided in this Agreement, this Agreement shall remain in full force and effect from January 1, 2023, to and including March 31, 2026.”
2. Section 3.A is amended to read:
“Employer agrees to pay Employee an annual base salary of $391,400 (three hundred ninety-one thousand four hundred dollars), subject to legally permissible or required withholding, prorated and paid on Employer’s normal paydays. Starting in July 2023, Employee will receive an annual cost of living increase, to reflect the consumer price index (CPI) up to and including 3% of her base salary.” DocuSign Envelope ID: 6AF54016-F8C8-4534-AFE9-A5B2C8354D88 B0785-0301\2790679v1.doc -2-
3. The first sentence of Section 3.B is amended to read:
“In addition to base pay, Employee shall receive Management Incentive Pay (MIP) in the amount of $625 per month, with an annual 3% increase beginning in July of 2023.”
The remaining portion of Section 3.B is not amended.
4. Section 10.A. is amended to read:
“If Employer terminates this Agreement (thereby terminating Employee’s employment) without cause, Employer shall pay Employee severance as follows:
1. If termination is effective on or before March 31, 2024, Employer shall pay Employee a lump-sum severance benefit equal to twelve (12) months of her then applicable base salary.
2. If termination is effective following the period specified in SubParagraph 1, above, and on or before March 31, 2025, Employer shall pay Employee a lump sum severance benefit equal to nine (9) months of her then applicable base salary.
3. If termination is effective following the period specified in SubParagraph 2, above, and before March 31, 2026, Employer shall pay Employee a lump sum severance benefit equal to her then applicable base salary.”
5. Except as expressly amended by this Amendment, all of the provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused this Amendment to be signed and executed personally or on its behalf by its duly authorized representative.
EMPLOYEE
__________________________
NANCY HUNT-COFFEY
[Signatures continue on following page.]
DocuSign Envelope ID: 6AF54016-F8C8-4534-AFE9-A5B2C8354D88 B0785-0301\2790679v1.doc -3-
CITY
CITY OF BEVERLY HILLS,
A California Municipal Corporation
By: _______________________
LILI BOSSE, Mayor
City of Beverly Hills, California
ATTEST:
__________________________(Seal)
HUMA AHMED
City Clerk
APPROVED AS TO FORM:
__________________________
LAURENCE S. WIENER
City Attorney
DocuSign Envelope ID: 6AF54016-F8C8-4534-AFE9-A5B2C8354D88 Certificate Of Completion
Envelope Id: 6AF54016F8C84534AFE9A5B2C8354D88 Status: Sent Subject: Please sign Amendment No. 1 to Nancy Hunt-Coffey Employment Agreement Source Envelope:
Document Pages: 3 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Shani Parker
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EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 208.87.234.180
Record Tracking
Status: Original
3/15/2023 2:47:28 PM
Holder: Shani Parker
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Laurence S. Wiener
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.233.201
Sent: 3/15/2023 2:53:51 PM
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Signed: 3/15/2023 3:16:10 PM
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Nancy Hunt-Coffey
[email protected]
Assistant City Manager
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Using IP Address: 198.245.189.166
Sent: 3/16/2023 3:12:44 PM
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Signed: 3/16/2023 4:46:17 PM
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Cindy Owens
[email protected]
Policy & Management Analyst
City of Beverly Hills
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Sent: 3/15/2023 3:16:13 PM
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Lili Bosse
[email protected]
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(None)
Electronic Record and Signature Disclosure:
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Huma Ahmed
[email protected]
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Jill Doohen
[email protected]
City of Beverly Hills
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(None)
Sent: 3/15/2023 3:16:11 PM
Electronic Record and Signature Disclosure:
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Shani Parker
[email protected]
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 3/15/2023 3:16:12 PM
Viewed: 3/15/2023 3:42:52 PM
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Not Offered via DocuSign
Dorina Mohan
[email protected]
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Adrianne Tarazon
[email protected]
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Michelle Ramos-Vergara
[email protected]
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(None)
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Michael Dunn
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