Administrative
Report
P.2., File # 24-0883 Meeting Date: 5/21/2024
To: MAYOR AND CITY COUNCIL
From: ZEIN OBAGI, COUNCILMEMBER DISTRICT 4 SCOTT BEHRENDT, COUNCILMEMBER DISTRICT 5
TITLE
DISCUSSION AND DIRECTION TO STAFF REGARDING AMENDMENT OF THE EMPLOYMENT
AGREEMENT WITH MIKE WITZANSKY TO SERVE AS CITY MANAGER
EXECUTIVE SUMMARY
Effective November 16, 2021, the City of Redondo Beach (“City”) and City Manager Mike Witzansky (City Manager”) entered into an Employment Agreement (the “Agreement”). On January 17, 2023, the City and City Manager entered into a First Amendment to the Agreement (the “First Amendment”).
Pursuant to the Agreement, the City Council (“Council”) conducted a performance evaluation of the City Manager. As part of that evaluation, the Council and City Manager utilized the assistance of consultant Rick Haydon of Municipal Resource Group, LLC (“MRG”), and the Council selected Council Members Zein E. Obagi, Jr. and Scott Behrendt to serve on the City Manager Compensation Subcommittee (the “Compensation Subcommittee”).
After meeting with Mr. Haydon, reviewing a survey of city manager compensation from certain cities in the region, and conducting the Council’s closed session performance evaluation, the Compensation Subcommittee recommends that the City Manager’s Agreement be further amended as follows:
· Annual salary increased by $15,000 from $265,000 to $280,000 (i.e., approximately 5.7%); · The salary increase be retroactive to January 1, 2024; and · The Agreement term extended to December 31, 2026 (i.e., approximately 13 months).
BACKGROUND
The Agreement, effective November 16, 2021, provided the City Manager a salary of $250,000 and three (3) year term. The Agreement also includes a severance payment provisions in the event of a termination for a reason other than for cause that requires payment of salary for eight (8) months, or for the remaining term of Agreement, whichever is less. With respect to a performance evaluation, the Agreement provided in part:
Commencing with the completion of the City Manager's first full year with the City, City Council may annually review and evaluate his performance and compensation in closed session. If possible, this annual review should take place in October of each year to allow for timely evaluation and payment
P.2., File # 24-0883 Meeting Date: 5/21/2024
annual review should take place in October of each year to allow for timely evaluation and payment of the annual Base Salary adjustment and/ or performance bonus, if City Council determines in its discretion that City Manager is eligible for either. Said review and evaluation will normally be in accordance with specific performance measures and rating criteria mutually agreed to by City Council and City Manager.
(Agreement, Section 5.)
On January 17, 2023, following an evaluation of the City Manager’s performance, the City entered into the First Amendment, which extended the term to November 15, 2025, and increased the City Manager’s annual salary to $265,000.
On January 16, 2024, the Council met in closed session to discuss its performance evaluation of the City Manager, and on February 6, 2024, and March 19, 2024, respectively, the Council approved an Agreement, and First Amendment, for Consulting Services with MRG to help facilitate the evaluation, which included (1) the City Manger’s self-evaluation; (2) a 360-degree feedback evaluation from the City Manager’s Executive Team, consisting of 12 direct reports; (3) evaluation by each of the five Council Members; and (4) a salary survey and analysis of certain other city managers.
Following receipt from MRG of all of the foregoing, and a May 14, 2024 closed session performance evaluation discussion with the Council and City Manager, the Compensation Subcommittee recommends the following, to be prepared by the City Attorney as a Second Amendment to the Agreement:
· An annual salary increase to $280,000;
· The salary increase retroactive to January 1, 2024; and · The Agreement term extended to December 31, 2026.
FISCAL IMPACT
The fiscal impact of the Second Amendment to the Agreement is an additional $15,000 for each of the three calendar years of 2024, 2025, and 2026, for a total of $45,000. In addition, should any Council elect to terminate the Agreement for a reason other than for cause, by extending the term of the Agreement to December 31, 2026, the City Manager will be eligible to receive eight months of severance pay until April 2026 (after which time, any severance pay will decrease commensurate with the time remaining in the term of the Agreement).
ATTACHMENTS
· City Manager Salary Survey
· Employment Agreement between the City of Redondo Beach and City Manager · First Amendment Employment Agreement between the City of Redondo Beach and City Manager