HomeMy WebLinkAboutMark D. Alvarado - Interim CFO - 2023-06-26 (2) 2000 Main Street,
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City of Huntington Beach
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File #: 23-570 MEETING DATE: 6/26/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Adopt Resolution No. 2023-33 appointing Mark D. Alvarado as Interim Chief Financial Officer
and approving the Employment Agreement X
Statement of Issue:
The City is in the process of conducting a recruitment to fill the Chief Financial Officer vacancy
created by the resignation of the former Chief Financial Officer on January 12, 2023.
The City Manager recommends the City Council appoint Mark D. Alvarado as Interim Chief Financial
Officer until the recruitment process for a permanent Director concludes.
Financial Impact:
No additional funding is requested. Funding is included in the FY 2023-2024 budget.
Recommended Action:
A) Adopt Resolution No. 2023-33, "A Resolution of the City Council of the City of Huntington Beach
appointing Mark D. Alvarado 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 Mark D. Alvarado."
Alternative Action(s):
Do not approve the Recommended Action, and direct staff to present an alternative solution.
Analysis:
The City is conducting a recruitment to fill the position of Chief Financial Officer. To maintain the
integrity of the City's services and to provide executive support to the Finance Department, it is
recommended that the City Council approve the appointment of Mark D. Alvarado to serve as the
Interim Chief Financial Officer through the conclusion of the recruitment process. The adoption of
Resolution 2023-33 and the execution of Mark D. Alvarado's employment agreement is required by
CaIPERS for employment of retired annuitants at the Department Head/Executive level pursuant to
City ofHuntington Beach
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File #: 23-570 MEETING DATE: 6/26/2023
Government Code Section 21221(h).
Alvarado has over 30 years of experience in Public Finance including employment as the
Director/Assistant City Manager level for a public agency and financial consultation for several other
Southern California public agencies. The recruitment to fill the position is anticipated to be filled by
December of this year.
The hourly compensation for the position of Chief Financial Officer is the Non-Associated Range NA
0269, at $108.03 per hour with no City-provided benefits. The interim appointment of Mark D.
Alvarado is compliant with California Government Code Section 21221(h).
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will
not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non-Applicable -Administrative Item
Attachment(s):
1. Resolution No. 2023-33
2. Mark D. Alvarado Employment Agreement
3. Mark D. Alvarado Resume
City of Huntington Beach Page 2 of 2 Printed on 6/23/2023
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RESOLUTION NO. 2023 -33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
APPOINTING MARK D. ALVARADO AS INTERIM CHIEF FINANCIAL OFFICER
WHEREAS, Government Code Section 21221(h) of the Public Employees' Retirement
Law permits the governing body to appoint a CalPERS 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 Mark D.
Alvarado as an Interim appointment retired annuitant to the vacant position of Chief Financial
Officer for the City of Huntington Beach under Government Code 21221(h), effective July 3,
2023; 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 Mark D. Alvarado, 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 the permanent appointment, or by not later than July 3, 2024, whichever is earlier;
and
WHEREAS, the entire employment agreement, contract or appointment document
between Mark D.Alvarado 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 $18,724.84 and the
hourly equivalent is$108.03;the minimum monthly base salary for this position is$13,972.13 and
the hourly equivalent is$80.61; and
WHEREAS,the hourly rate paid to Mark D. Alvarado will be $108.03; and
WHEREAS, Mark D. Alvarado 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
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RESOLUTION NO. 2023-3 3
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of
Huntington Beach hereby certifies the nature of the employment of Mark D.Alvarado 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 Mark D. Alvarado, because the City of Huntington Beach
requires experienced Financial oversight at the department head level for the Finance Department
serving a full service organization consisting of eleven departments and approximately 1,500 full
time and part time employees.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
special meeting thereof held on t%e 26t111ay of July 2023.
Mayor
D D APPRO / D: APPROVED AS 0 FORM:
\*&11,
City Manages, Ci Attorney
INITIATED AND APPROVED:
Assistant City Manage
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NOTE TO FILE
The attached agreement was not executed due to the appointment of
Sunny Han as Chief Financial by City Council action effective
July 18, 2023.
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND MARK D. ALVARADO
THIS AGREEMENT is entered into this 3rd day of July 2023, between e City of
Huntington Beach, a Charter City and California municipal corporation ("City ' and Mark D.
Alvarado, ("Alvarado.")
RECITALS
The City Manager may, appoint an Interim Chief Financ'. Officer to assist the City, at
such salaries or compensation as the Council may by ordinanc= or resolution prescribe; and
The City desires to temporarily employ the servi•es of Alvarado as an Interim Chief
Financial Officer of the City of Huntington Beach; and
It is the desire of the City to provide certain ••mpensation, establish certain conditions of
employment, and to set working conditions of Al arado; and
It is the desire of the City to:
(1) Secure and retain the service of Alvarado on a temporary basis as set forth herein,
and to provide inducement for him to re ain in such employment; and
(2) To provide a means f, terminating Alvarado's service at such time as he may be
unable fully to discharge his du 'es, the law requires, or when City may otherwise desire to
terminate his employ; and
By entering this Ag ement, Alvarado desires to accept employment as an Interim Chief
Financial Officer of the ty.
NOW, THE' EFORE, in consideration of the mutual covenants here contained, the parties
agree as follows.
SE r TION 1. DUTIES. City agrees to employ Alvarado as an Interim Chief Financial
Officer of the City to perform the functions and duties of that office including under City
Man.ter's direction, generally providing department management and oversight as further set
fo- in the Class Specification of Chief Financial Officer attached hereto as Exhibit "A," the
unicipal Code of the City of Huntington Beach and the City Charter, and to perform other legally
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permissible duties and functions as Chief Financial Officer as the City Manager shall from 'me to
time assign. Alvarado shall devote his full attention and effort to the office and p form the
mentioned duties and functions in a professional manner.
SECTION 2. STATUS AND TERM.
(a) Alvarado shall serve for a definite term of one year commncing July 3, 2023, and
ending on the pay period end date immediately preceding the begin jitig of the pay period of the
permanent appointment, or by not later than July 3, 2024 (Tempora}y Basis). Notwithstanding the
Term of Employment, Alvarado shall serve at the pleasure of the City Manager and shall be
considered an at-will employee of the City in the capacity of/retired annuitant, in compliance with
all requirements and limitations as listed in Government Cede Sections 7522.56 and 21221(h), and
any other relevant provisions of law, commencing uppii execution of this agreement, and not to
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exceed a term of one (1) year. Alvarado's total ,Avork hours from the effective date of this
Agreement through July 3, 2024 shall not exceed"nine hundred sixty (960) hours per fiscal year,
unless mutually agreed-to by the City Managet and Alvarado.
(b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of the City Manager to terminate the employment of Alvarado at any time.
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(c) Alvarado may resign ayany time from his position with the City as provided herein.
The term "employed" (and/derivations of that term as used in the preceding paragraph)
shall include employment by a other legal entity or self-employment. However, shall not be
construed to include occasion teaching,writing, consulting or military reserve service performed
on Alvarado's time off, an
ith the advance approval of the City Manager.
/
SECTION 3. ALARY. City agrees to pay Alvarado for his services rendered pursuant
to this Agreement Non-Associated Range NA0269, at $108.03 per hour (hourly salary), of the
City's classificati'n and compensation plan or resolutions or ordinances from time-to-time enacted
that govern sup compensation for the position of Chief Financial Officer.
CTION 4. OTHER BENEFITS. Alvarado shall receive no benefits other than his
hourl, salary.
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SECTION S. TERMINATION.
(a) The City Manager may terminate the employment of Alvarado at any time % out
advance notice, without just cause, and without payment of severance.
(b) In the event Alvarado voluntarily resigns, Alvarado shall give the r ity seven (7)
calendar days written notice prior to the last workday, unless the City Man. .er and Alvarado
otherwise agree.
(c) It is understood that after notice of termination in any fo , Alvarado and the City
will cooperate to provide for an orderly transition.
SECTION 6. FINANCIAL DISCLOSURE.
(a) Alvarado shall follow all State laws in uding the Political Reform Act. In
furtherance thereof,Alvarado shall report to the City a ownership interest in real property within
the County of Orange, excluding personal residen ' . Such reporting shall be made in writing by
Alvarado to the City within ten(10)calendar da of the execution of this Agreement and,further,
within ten(10)calendar days of acquisition o•that interest in real property.Additionally,Alvarado
shall report in writing to the City any mancial interest greater than Ten Thousand Dollars
($10,000) in value in a firm doing w• for the City or from whom the City intends to make a
purchase immediately upon receipt .f notice by Alvarado of the intended work or purchase.
(b) In addition, Alv. .do shall annually complete and file a Form 700 Statement of
Economic Interest with the C. Clerk.
SECTION 7. NDEMNIFICATION. City shall defend and indemnify Alvarado any
action, including bu not limited to any: tort, professional liability claim or demand, or other
noncriminal legal, quitable or administrative action,whether groundless or otherwise, arising out of
an alleged act or •mission occurring in the performance of Alvarado's duties as an employee or officer
of City, othe- than an action brought by City against Alvarado, or an action filed against City by
Alvarado. n addition, the City shall reimburse Alvarado documented reasonable expenses for the
travel, 1.dging, meals, of Alvarado should Alvarado be subject to such, should an action be pending
after ermination of Alvarado. City shall be responsible for and have authority to compromise and
se e any action, with prior consultation with Alvarado, and pay the amount of any settlement or
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judgment rendered on that action. Alvarado shall cooperate fully with City in the settl-. ent,
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 A_ eement between
the parties.
(b) This Agreement shall become effective upon execution of ' is agreement.
(c) If any provision, or any portion of any provision, con .fined in this Agreement is
held unconstitutional, invalid, or unenforceable, the remainder of is Agreement, or any portion
of it, shall be deemed severable, shall not be affected and shall r•main in full force and effect.
(d) No amendment of this Agreement shall be eff- tive unless in writing and signed by
both parties here.
IN WITNESS WHEREOF,City has caused is Agreement to be signed and executed on
its behalf by City Council, and Alvarado has signed and executed this Agreement, both in
duplicate, the'day and year first above writte
MARK D. ALVARADO
APPROVED A FORM:
City Manager Ci Attorney
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Res. No. 2023-33
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 an adjourned regular meeting thereof held
on June 26, 2023 by the following vote:
AYES: Kalmick, Moser, Van Der Mark, Strickland, McKeon, Bolton, Burns
NOES: None
ABSENT: None
ABSTAIN: None
e61-4/714.444)
City Clerk and ex-officio Clerk of the
City Council of,the City of
Huntington Beach, California
Moore, Tania
From: Ted Ross <tedross_0077@msn.com>
Sent: Saturday, June 24, 2023 12:22 PM
To: supplementalcomm@surfcity-hb.org
Subject: Consent Calander item 2; 23-570 Adopt Resolution No. 2023-33 appointing Mark D.
Alvarado as Interim Chief Financial Officer
Reference: Consent Calander item 2; 23-570 Adopt Resolution No. 2023-33 appointing Mark D.
Alvarado as Interim Chief Financial Officer and approving the Employment Agreement A) Adopt
Resolution No. 2023-33, "A Resolution of the City Council of the City of Huntington Beach appointing
Mark D. Alvarado 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 Mark D.
Alvarado."
Upon reviewing the attached agenda backup materials supporting adoption of this consent item, I
offer for your consideration my analysis:
• Nowhere is any evidence provided for comparative analysis of Mr. Alvarado's resume in
comparison with the job description for which he's being considered a candidate. I find no fault
with his experiences, but I can't determine the applicability of those levels of experiences or
comparative levels of responsibility with those required of this selected position.
• Although he possesses a degree in accounting and has a CPA qualification, I fail to see the
expected companion degree of MBA that would be an expected mandatory criteria for
selection for Chief Financial Officer of Huntington Beach.
• Why was a consultant selected for candidacy over existing City financial staff personnel? My
expectation would be the current Chief Financial Officer would have groomed her successor
from within the staff?
• At best, I find only inferential supporting data upon which to base your decision!
The City of Huntington Beach and the position of Chief Financial Officer deserve the best possible
candidate selected to render financially sound leadership under very trying circumstances.
Ted Ross
Huntington Beach resident
SUPPLEMENTAL
COMMUNICATION
Meeting Date: (D/a Co%.93
Agenda Item No.; (0 _s 70)
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Mark D. Alvarado, CPA
EDUCATION University of Southern California
Los Angeles, CA
Bachelor of Science in Accounting, 1983
Certified Public Accountant, 1988
State of California License
EXPERIENCE GOVERNMENTAL FINANCIAL CONSULTANT
2017 to Present
Assist governmental entities with many finance department responsibilities.
Services include creating and or overseeing the citywide budget process,the
creation of capital improvement budgets, budget projections, budget and
accounting review, year-end closing and audit preparation, debt financing
including pension obligation bonds, pension cost analysis, organizational
review of the finance department, General Fund long term forecasting,
financial sustainability plans that include long term pension costs, fee and
charge review and implementation, financial policy review and update,
OPEB trust set up, and retiree medical plan alternatives.
Clients include:
✓ City of Irvine
✓ City of Ontario
✓ City of La Verne
✓ City of El Monte
✓ City of Monrovia
✓ City of San Gabriel
✓ City of Santa Ana
✓ Orange County Fair Association
✓ City of Huntington Beach
CITY OF MONROVIA
1992 to 2016
Administrative Services Director/Assistant City Manaj'er—2009 to 2016
In conjunction with the City Manager, provided direct oversight and
supervision of operational and/or functional areas of all City departments.
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Mark D.Alvarado,CPA
This included reviews of all budgets with department heads, making
recommendations related to their content, financing, and implementation
strategies with the City Manager.
Responsible for the overall financial strategy of labor negotiations with the
City's employee associations. Directed the Human Resources Manager to
negotiate certain employee benefits and created the policy to have all
employees pay a portion of pension costs. Gave direction to the Human
Resources Manager on employee disciplinary actions.
Assisted and participated in the selection, evaluation, development and
termination of City employees, and assisted in the execution of disciplinary
action. Also worked with each department head to review staffmg levels
and make recommendations to the City Manager on any new staffing.
Worked with the Economic Development staff to maintain the Successor
Agency properties, including gathering information for land use decisions,
marketing available properties for sale, and worked with the State
Department of Finance to let us keep our economic vision for land use.
Served as Interim City Manager for four months in 2012. In that time
represented the Redevelopment Agency in mediation regarding a lawsuit
over the sale/condemnation of certain property, saving the Agency $4
million. Also oversaw the dissolution of redevelopment agencies by the
State, beginning the process of creating our Oversight Board and
eliminating the seven funded positions.
In conjunction with the Human Resources/Risk Management Manager,
oversee all litigation claims against the City, including investigations,
discussions with legal counsel, and any proposed settlement scenarios.
Administrative Services Director—1996 to 2009
Full responsibility for all financial activities associated with general
accounting, payroll, accounts payable, accounts receivable, utility billing,
purchasing, and budgeting. Responsible for managing the City's overall
estimated $60 million annual budget, including the former Redevelopment
Agency and the current Successor Agency. Presented to Council a balanced
budget for 20 consecutive years. In 2009 coordinated with the City
Manager a plan to reduce the City budget over $2 million due to the
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Mark D.Alvarado,CPA
economic downturn. Over three years,reduced staffing 20% and increased
employee pension contributions.
Oversaw the financing and debt repayment of the City's$33 million bonded
debt, along with the Successor Agency's $63 million in bonded debt.
Completed refinancing's of all the Agency's debt over the last 10 years.
Managed the City's overall investment portfolio, ranging from $30 million
to $40 million.
Oversaw the financial audit conducted by an outside CPA firm. Our audited
financial statements received an excellence in financial reporting award for
20 consecutive years.
Before this, spent four years as the Assistant Finance Director, from 1992
to 1996.
VICENTI,LLOYD & STUZMAN, CPA's
La Verne, CA
1989 to 1992
Audit Supervisor
Responsible for planning and coordinating 300-700 hour audit engagements
of local educational agencies and other governmental agencies. Duties
entailed assisting in year-end closing of the financial records, developing
budgets and forecasts,review of financial records,and the review of internal
control policies and procedures.
BAKER&ROBERTS, CPA's
El Monte, CA
1986 to 1989
Audit Supervisor
Responsible for performing detailed examinations of the financial records
for governmental agencies. The financial records include the General Fund,
all Special Revenue, Capital Project, Proprietary, Fiduciary, and Debt
Service Funds.
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Mark D.Alvarado,CPA
BEVERLY ENTERPRISES
Pasadena, CA
1984 to 1985
Tax Accountant
Preparation of $1 billion+ federal consolidated and 195 state and local
income tax returns covering 47 states for health care company.
INTERNAL REVENUE SERVICE
Los Angeles, CA
1981 to 1984
Revenue Agent
Conducted income tax audits. Position entailed formulation of audit
programs for corporate and individual income tax returns, interviews and
settlement conferences with taxpayers and representatives.
COMPUTER
EXPERIENCE Proficient with Windows and all Microsoft Office programs.
AFFILIATIONS/
ORGANIZATIONS California Society Municipal Finance Officers Association
• Member since 1993; Board member 2000 to 2008; President 2006;
Chapter Chair 1999 to 2003
Government Finance Officers Association
• Member since 1996
City of Monrovia Employees Federal Credit Union
• Board member from 2012 to 2019
Holy Name of Mary School, San Dimas
• Finance Committee member since 2012; Chair since 2016
• Festival Committee Chair 2011 to 2019
REFERENCES Furnished Upon Request
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