HomeMy WebLinkAboutCharles Adams - 2019-06-18 /9pa1/E7� ro- o- I
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City of Huntington Beach
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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
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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
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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
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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
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"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.
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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.
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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.
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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