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HomeMy WebLinkAboutCharles Adams - 2019-06-18 /9pa1/E7� ro- o- I A City of Huntington Beach II t909 � i' File #: 19-690 MEETING DATE: 6/17/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Dave Kiff, Interim City Manager PREPARED BY: Michele Warren, Director of Human Resources Subject: Adopt Resolution No. 2019-43 appointing Charles Adams as Interim Chief Financial Officer and approving the Employment Agreement Statement of Issue: The City is in the process of conducting a nationwide recruitment to fill the Chief Financial Officer vacancy created by the resignation of former Chief Financial Officer Gilbert Garcia on May 31, 2019. It is recommended the City Council appoint Charles Adams as Interim Chief Financial Officer until the recruitment process concludes. Financial Impact: No fiscal impact. Recommended Action: A) Adopt Resolution No. 2019-43, "A Resolution of the City Council of the City of Huntington Beach Appointing Charles Adams as Interim Chief Financial Officer;" and, B) Approve and authorize the City Manager to execute the "Employment Agreement Between the City of Huntington Beach and Charles Adams." Alternative Action(s): Do not Adopt Resolution No. 2019-43 and do not approve the Employment Agreement and direct Staff to present an alternative solution. Analysis: Chief Financial Officer Gilbert Garcia resigned from City service on May 31, 2019. The City is in the process of conducting a nationwide recruitment to fill the position. Carol Molina-Espinoza is currently City of Huntington Beach Page 1 of 2 Printed on 6/12/2019 powere3lgy LegistarT°^ File #: 19-690 MEETING DATE: 6/17/2019 serving as the Acting Chief Financial Officer. To maintain the integrity of City service with respect to the City's overall financial well-being, it is recommended that the City Council approve the appointment of Charles Adams to serve as the Interim Chief Financial Officer until the City Council concludes the ongoing national recruitment to fill the vacancy. The adoption of Resolution No. 2019- 43 and the execution of the employment agreement is required by CalPERS for employment of retired annuitants at the Department Head/Executive level pursuant to Government Code Section 21221(h). The Office of Human Resources has recently begun the process of launching a national recruitment for the vacant Chief Financial Officer position. It is anticipated that the position will be filled by late October or early November, 2019. Mr. Adams has served as the Interim Finance Director for the City of Irvine and as the Acting Managing Director for Finance and Administration for the Long Beach Harbor Department. Mr. Adams has additional career public service as the Assistant Director for the County of Los Angeles Department of Public Works, the City Controller for the City of Long Beach and the Chief Financial Manager - Utilities Department for the City of Palo Alto. Mr. Adams obtained a Bachelor's Degree in Business Administration from Michigan State University and holds a Master's Degree in Personnel Management from Central Michigan University. The hourly compensation for the position of Chief Financial Officer is $100.13 with no City-provided benefits. The interim appointment of Mr. Adams is compliant with California Government Code Section 21221(h). Environmental Status: N/A Strategic Plan Goal: Enhance and maintain high quality City services Attachment(s): 1. Resolution No. 2019-43 2. Charles Adams Employment Agreement 3. Charles Adams Resume City of Huntington Beach Page 2 of 2 Printed on 6/12/2019 powere3224,LegistarT"' Resolution No. 2019-43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPOINTING CHARLES ADAMS AS INTERIM CHIEF FINANCIAL OFFICER WHEREAS, Government Code Section 21221(h) of the Public Employees' Retirement Law permits the governing body to appoint a Ca1PERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, the City Council of the City of Huntington Beach desires to appoint Charles Adams as an Interim appointment retired annuitant to the vacant position of Chief Financial Officer for the City of Huntington Beach under Government Code Section 21221(h), effective June 18, 2019; and WHEREAS, the City Council of the City of Huntington Beach, and Charles Adams certify that Charles Adams has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, an appointment under Government Code Section 21221(h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and WHEREAS, the governing body has authorized the search for a permanent appointment on June 10, 2019, and WHEREAS, this Government Code Section 21221(h) appointment shall only be made once and therefore will end on the pay period end date immediately preceding the beginning of the pay period of appointment of the permanent appointment, or by not later than December 13, 2019, whichever is earlier; and WHEREAS, the entire employment agreement, contract or appointment document between Charles Adams and the City of Huntington Beach has been reviewed by this body and is attached herein; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum monthly base salary for this position is $17,355.87 and the hourly equivalent is $100.13; the minimum monthly base salary for this position is $14,008.80 and the hourly equivalent is $80.82; and WHEREAS, the hourly rate paid to Charles Adams will be $100.13 and 19-7701/205459 1 Resolution No. 2019-43 WHEREAS, Charles Adams has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Huntington Beach hereby certifies the nature of the employment of Charles Adams as described herein and detailed in the attached employment agreement/contract/appointment document and that this appointment is necessary to fill the critically needed position of Chief Financial Officer for the City of Huntington Beach by June 18, 2019, because the City of Huntington Beach requires experienced fiscal oversight at the department head level of its more than $300M budget (all funds) for FY 2019-20. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 17th day of June , 2019. Mayor REVIEWED AND APPROVED: APPROVED AS FORM: City anager it Attorney INITIATE AND AP ROVED: c ector of Human Resources 19-7701/205459 2 Res. No. 2019-43 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on June 17, 2019 by the following vote: AYES: Carr, Semeta, Peterson, Posey, Delgleize, Hardy NOES: None ABSENT: Brenden RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California EMPLOYMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND CHARLES ADAMS THIS AGREEMENT is entered into this 18 day of June , 2019, between the City of Huntington Beach, a California municipal corporation, subsequently called "City," and Charles Adams, subsequently called"Adams." RECITALS The City Manager may, subject to the approval of the City Council, appoint an Interim Chief Financial Officer to assist the City, at such salaries or compensation as the Council may by ordinance or resolution prescribe; and The City,through the City Manager,desires to employ the services of Adams as an Interim Chief Financial Officer of the City of Huntington Beach; and It is the desire of the City to provide compensation, establish certain conditions of employment, and to set working conditions of Adams; and It is the desire of the City to: (1) Secure and retain the services of Adams and to provide inducement for him to remain in such employment; and (2) To provide a means for terminating Adams's service at such time as he may be unable fully to discharge his duties or when City may otherwise desire to terminate his employ; and By entering this Agreement,he desires to accept employment as an Interim Chief Financial Officer of the City. NOW, THEREFORE, in consideration of the mutual covenants here contained,the parties agree as follows: SECTION 1. DUTIES. City agrees to employ Adams as an Interim Chief Financial Officer of the City to perform the functions and duties of that office including under administrative direction, providing management oversight in directing the activities and operations of the Finance Department as further set forth in the Class Specification of Chief Financial Officer attached hereto as Exhibit 19-7701/205448 1 "A," the Municipal Code of the City of Huntington Beach and the City Charter, and to perform other legally permissible duties and functions as Chief Financial Officer as the City Manager shall from time to time assign. Adams shall devote his full attention and effort to the office and perform the mentioned duties and functions in a professional manner. SECTION 2. STATUS AND TERM. (a) Adams shall serve for a definite term not to extend beyond December 13, 2019, at the pleasure of the City Manager and shall be considered as an at-will employee of the City in the capacity of retired annuitant, commencing upon execution of this agreement and adoption of Resolution No. 2019-43. (b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Manager to terminate the employment of Adams at any time. (c) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Adams to resign at any time from his position with the City. (d) Adams shall neither accept other employment or become employed by any other employer without the prior written approval of the City Manager. The term "employed" (and derivations of that term as used in the preceding paragraph) shall include employment by another legal entity or self-employment. However, shall not be construed to include occasional teaching,writing, consulting or military reserve service performed on Adams's time off, and with the advance approval of the City Manager. SECTION 3. SALARY. City agrees to pay Adams a fixed salary for his services rendered pursuant to this Agreement at Non-Associated Range NA0518, $100.13 per hour, of the City's classification and compensation plan or resolutions or ordinances from time-to-time enacted that govern such compensation for the position of Chief Financial Officer. SECTION 4. OTHER BENEFITS. (a) Adams shall receive no benefits other than his hourly salary. 19-7701/205448 2 SECTION 5. TERMINATION. (a) The City Manager may terminate the employment of Adams at any time without advance notice, without just cause, and without payment of severance for; (i) a willful breach of this Agreement or the willful and repeated neglect by Adams to perform duties that he is required to perform; (ii) conviction of any criminal act relating to employment with City; (iii) conviction of a felony. (c) Subsequently, the decision of the City Manager as to whether reasons set forth in Section (a)(i-iii) exist or do not exist shall be final as between the parties. (e) In the event Adams voluntarily resigns, Adams shall give the City seven(7) calendar days written notice prior to the last workday, unless the City Manager and Adams otherwise agree. (f) It is understood that after notice of termination in any form, Adams and the City will cooperate to provide for an orderly transition. SECTION 6. FINANCIAL DISCLOSURE. (a) Adams shall report to the City Manager any ownership interest in real property within the County of Orange, excluding personal residence. Also, Adams shall report to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for the City or from which the City intends to make a purchase. Such reporting shall be made in writing by Adams to the City Manager within ten (10) calendar days of the execution of this Agreement and, further, within ten (10) calendar days of acquisition of that interest in real property. Additionally, Adams shall report in writing to the City Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value in a firm doing work for the City or from whom the City intends to make a purchase immediately upon notice of the intended work or purchase. (b) In addition, Adams shall annually complete and file a Form 700 Statement of Economic Interest with the City Clerk. 19-7701/205448 3 SECTION 7. INDEMNIFICATION. City shall defend and indemnify Adams against any action, including but not limited to any: tort, professional liability claim or demand, or other noncriminal legal, equitable or administrative action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Adams's duties as an employee or officer of City, other than an action brought by City against Adams, or an action filed against City by Adams. In addition, the City shall reimburse Adams the documented reasonable expenses for the travel, lodging, meals, of Adams should Adams be subject to such, should an action be pending after termination of Adams. City shall be responsible for and have authority to compromise and settle any action, with prior consultation with Adams, and pay the amount of any settlement or judgment rendered on that action. Adams shall cooperate fully with City in the settlement, compromise, preparation of the defense, or trial of any such action. SECTION 8. GENERAL PROVISIONS. (a) The text herein, including recitals, shall constitute the entire Agreement between the parties. (b) This Agreement shall become effective upon the adoption of Resolution No. 2019- 43. (c) If any provision, or any portion of any provision, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or any portion of it, shall be deemed severable, shall not be affected and shall remain in full force and effect. (d) No amendment of this Agreement shall be effective unless in writing and signed by both parties here. 19-7701/205448 4 IN WITNESS WHEREOF, City has caused this Agreement to be signed and executed on its behalf by its City Manager, and Adams has signed and executed this Agreement, both in duplicate, the day and year first above written. CHARL S ADAMS: CITY OF HUNTINGTON BEACH City Anager APPROV C' Attorney 19-7701/205448 5 CHARLES W. ADAMS EDUCATION 1980 - M. A., Personnel Management, Central Michigan University; 1970 - B. A., Business Administration, Michigan State University; EXPERIENCE December 2010 to Present Retirement Career Public sector consultant providing high level interim managerial support in administrative areas such as finance, budget, procurement, human relations, employment related mediations, contract negotiations, internaVexternal audits, information technology, and fleet services. Assignments have been at the City of South El Monte as Finance Director and as Assistant City Manager (2010-2013); Port of Long Beach as Finance Director (2014) and as Managing Director of Finance and Administration ( 2016-2017); City of Irvine as Director of Administrative Services (2015-2016). January 1992 to January 2010 County of Los Angeles Department of Public Works February 2007 to January 2010 Assistant Director Budget: $150 million - Direct $1.7 billion - Indirect Personnel: 670 Chief Administrative Officer of a multipurpose organization of 4,200 employees responsible for the County's Capital Projects, Roads, Bridges and Highways, Flood Control and Water Conservation, Water and Sewer Districts, Building and Safety Code enforcement, Waste Management, Lighting Districts, Improvement Districts, General Aviation Airports, Transit Systems, Traffic Control and Emergency Response within the County of Los Angeles. These activities serve' an unincorporated population of approximately 1 million residents and provide contract services to approximately 35 cities; I directed the activities of the Chief Financial Officer, Chief Information Officer, Internal Audit Manager, and the Deputy Director responsible for Human Resources, Labor Relations, Materials Management, Procurement, Contracts, and Fleet Services. Also, I was the Project Director for the implementation of an ERP replacement system that was successfully implemented on July 1, 2008. August 1998 to January 2007 Deputy Director responsible for Human Resources Division, Financial Management Branch, and Administrative Services Division January 1992 to July 1998 Chief Financial Officer responsible for the Financial Management Branch 326 December 1987 to December 1991 City Controller City of Long Beach, California Budget: $ 5.0 million - Direct $1.2 billion - Indirect Personnel: 50 Planned, organized, and directed the central accounting and financial record keeping activities for a large full service City to ensure the orderly flow of funds from revenue sources through final disbursement; assisted in establishing and ensuring conformity with the City's goals and financial conformity with generally accepted accounting principles. Managed year-end closing process, including preparation of the City's Annual Financial Report and Annual Redevelopment Report. Represented the City before Financial Rating Agencies. Member of the City's Central Budget Review Committee and the City's Investment Committee; acted for the Finance Director in his absence. January 1983 to December 1987 Chief Financial Manager, Utilities Department City of Palo Alto, California Budget: $2 million - Direct; $110 million - Indirect Personnel: 35 Responsibilities were for the enterprise accounting of the electric, gas, water, wastewater collection, wastewater treatment, and refuse operations; also included customer accounting, customer information, customer services and meter reading; main tasks were coordination and control of the utility department's annual budget and capital program, generating financial reports and forecasts, financing, monitoring the investment of utility reserves and the processing and collection of revenues. Member of the City's Labor Negotiation Team. Represented the City before Financial Rating Agencies. Selected Professional[Volunteer Activities/ Professional Awards • California Society of Municipal Finance Officer • Current member and past co-chair of cash management and seminar committees • Government Finance Officers Association • Current member • American Society for Public Administration • Current member • Government Finance Officers Association, Award for Excellence in Financial Reporting, Fiscal Years 1988 through 1991 • California Society of Municipal Finance Officers, Award for Excellence in Financial Reporting, Fiscal Years 1988 through 1991 327