HomeMy WebLinkAboutSunny Han - 2023-07-18 (2) '��NTiNGTo 2000 Main Street,
Huntington Beach, CA
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File #: 23-606 MEETING DATE: 7/18/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Travis K. Hopkins, Assistant City Manager
PREPARED BY: Theresa St. Peter, Interim Human Resources Director
Subject:
Appointment of Sunny Han as Chief Financial Officer and Approval of the Employment
Agreement
Statement of Issue:
The prior Chief Financial Officer resigned from the City of Huntington Beach on January 12, 2023.
Effective January 13, 2023, Sunny Han was appointed as Acting Chief Financial Officer.
As such, the City Manager recommends the City Council approve the appointment of Sunny Han as
Chief Financial Officer due to specific terms within her Employment Agreement that require Council
approval.
Financial Impact:
Funding for this position is included in the FY 2023/24 budget.
Recommended Action:
Approve and authorize the City Manager to execute the "Employment Agreement between the City of
Huntington Beach and Sunny Han" for the position of Chief Financial Officer.
Alternative Action(s):
Do not approve the Recommended Action, and direct staff to present an alternative solution.
Analysis:
Sunny Han was initially hired by the City of Huntington Beach in December 2010 as a Senior
Accountant. Ms. Han received promotions during her tenure with the City and was most recently
appointed Assistant Chief Financial Officer on May 20, 2020. She has served as Acting Chief
Financial Officer since January 13, 2023, and has done an excellent job of leading the Finance
Department and overseeing the City's overall budget. As a result, she is recommended to
permanently fill the Chief Financial Officer vacancy.
City of Huntington Beach Page 1 of 2 Printed on 7/13/2023
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File #: 23-606 MEETING DATE: 7/18/2023
In accordance with City Resolution No. 2022-09 regarding Non-Associated Employees Pay and
Benefits, Section A, Item 7: "The City Manager is authorized to set the salaries of executive
management positions identified in Exhibit 1A at any rate at or below Step E of the designated salary
range....However, no salary for a new employee may be set above Step E at any time without City
Council approval." It is recommended that Ms. Han be appointed to Step G, the top step of the
salary range for Chief Financial Officer. Additionally, it is requested that a severance of nine (9)
months be granted to Ms. Han should she be terminated not for cause during the first twelve (12)
months of her appointment as Chief Financial Officer. Thereafter, the severance would be for six (6)
months should she be terminated not for cause. Therefore, City Council approval of the
"Employment Agreement between the City of Huntington Beach and Sunny Han" is requested.
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. Sunny Han - Employment Agreement
City of Huntington Beach Page 2 of 2 Printed on 7/13/2023
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Sunny Han_Chief Financial Officer Employment Agreement
July 8,2023
Page 1 of 19
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF HUNTINGTON BEACH AND SUNNY HAN
THIS AGREEMENT is entered into this 18th day of July, 2023, between the City
of Huntington Beach, a California municipal corporation, hereinafter "City," and Sunny
Han, hereinafter"Han."
WITNESSETH
WHEREAS, the City Manager has been empowered to appoint and remove
department heads; and
WHEREAS, the City, through the City Manager, desires to employ the services of
Han as the Chief Financial Officer of the City of Huntington Beach; and
WHEREAS, the City seeks to provide certain benefits, establish certain conditions
of employment, and to set working conditions of Han; and
WHEREAS, the City intends to:
(1) Secure, retain, and employ the services of Han; and
(2) Provide a means for terminating Han's service; and
(3) Han accepts employment as the City's Chief Financial Officer;
NOW, THEREFORE, in consideration of the mutual covenants herein contained,,
the parties agree as follows:
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 2 of 10
Sunny Han
Chief Financial Officer Employment Agreement
SECTION 1, DUTIES.
The City agrees to employ Han as Chief Financial Officer of the City to perform
the functions and duties of that office as set forth in the Municipal Code of the City of
Huntington Beach and the City Charter, and to perform other duties and functions as the
City Manager shall from time to time assign. Han shall devote her full attention and effort
to the office and perform the mentioned duties and functions in a professional manner.
SECTION 2, STATUS AND TERM.
(a) Han shall serve for an indefinite term at the pleasure of the City Manager
and shall be considered an at-will employee of the City.
(b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the
right of the City Manager to terminate the employment of Han at any time, subject only
to the provisions set forth in Section 6, subparagraphs (a), (b) and (c) of this Agreement,
and Section 401 of the Charter of the City of Huntington Beach.
(c) Nothing in this Agreement shall prevent, limit, or otherwise interfere with
the right of Han to resign at any time from her position with the City, subject only to the
provisions set forth in Section 6, subparagraph (d), of this Agreement,
(d) Han agrees to remain in the exclusive employ of City for an indefinite period
of time and shall neither accept other employment nor become employed by any other
employer without the prior written approval of the City Manager until notice of Han's
resignation is given.
Sunny Han--Chief Financial Officer Employment Agreement
July 8,2023
Page 3 of 10
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 Han's time off, and with the advance approval of
the City Manager.
SECTION $. SALARY.
City agrees to pay Han for her services rendered pursuant to this Agreement at
Range NA269, Step G — ($108.03/hour) of the City's classification and compensation
plan or Resolutions or Ordinances from time to time enacted that govern such
compensation.
SECTION 4. OTHER BENEFITS.
In addition to the foregoing benefits, Han shall also receive all such other benefits
that are generally applicable to non-associated employees (Department Heads) hired
after 12/27/97, as set forth in Huntington Beach City Council Resolution No. 2016-50,
entitled "A Resolution Of The City Council Of The pity Of Huntington Beach Modifying
Salary And Benefits For Non-Represented Employees Including The Elected City
Attorney, City Clerk, And City Treasurer, " a copy of which is attached hereto as Exhibit
"A" and incorporated by reference as fully set forth herein. This includes provision of an
auto allowance (auto allowance is currently set at $230.77 paid bi-weekly), as stated in
Exhibit "A", along with reimbursement of out-of-town travel at the approved mileage
rates. Han shall also be eligible for a cell-phone stipend (smartphone) in the amount of
$50.00 per month, paid bi-weekly or use of a City-issued cell phone. The benefits
provided to Han pursuant to this Section may be modified by the City from time to time,
upon adoption of a successor Resolution.
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 4 of 10
SECTION 5. ADMINISTRATIVE LEAVE.
The City Manager may place Han on Administrative Leave with full pay and
benefits at any time during the term of this Agreement.
SECTION 6. TERMINATION AND SEVERANCE PAY.
(a) Except as provided in subsection (b), in the event the City Manager
terminates the employment of Han, and during such time that Han is willing and able to
perform her duties under this Agreement, during the first twelve (12) months of this
Agreement, the City shall pay to Han a severance payment equal to salary payments
which Han would have been receiving over a nine (9) month period at Han's current rate
of pay in effect on the day prior to the date of termination. Effective beginning the second
year of this Agreement, the City shall pay to Han a severance payment equal to salary
payments which Han would have been receiving over a six (5) month period at Han's
then current rate of pay in effect on the day prior to the date of termination. In addition,
during the first twelve months of this Agreement, for the lesser of nine (9) months after
the date of termination or the time Han secures health and medical insurance through
comparable employment, the City shall maintain and pay for health, medical, disability,
the continuation of retirement benefits and life insurance in such amounts and on such
terms as have been received by Han and Han's dependents at the time of such
termination; however, no other additional benefits shall accrue during this nine (9) month
period, Effective beginning the second year of this Agreement, for the lesser of six (6)
months after the date of termination or the time Han secures health and medical
insurance through comparable employment, the City shall maintain and pay for health,
medical, disability, the continuation of retirement benefits and life insurance in such
amounts and on such terms as have been received by Han and Han's dependents at
the time of such termination; however, no other additional benefits shall accrue during
this six (6) month period.
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 5 of 10
(b) (1) Notwithstanding subsection (a) above, the following reasons shall
constitute grounds to terminate the employment of Han without severance pay:
CO a willful breach of this agreement or the willful and repeated
neglect by Han
to perform duties that she is required to perform;
(ii) conviction of any criminal act relating to employment with the City;
(iii) conviction of a felony.
(2) Prior to the time that the City Manager terminates Han without
severance pay for any of the reasons set forth in Section (b)(I) above, and only in that
case, the City Manager shall provide Han with written notice of proposed termination
which will include the reason and factual basis for termination. Within ten days of such
notice, Han may request an opportunity to respond to the reasons and factual basis
provided by the City Manager. If such a request to respond is made, the City Manager
shall conduct a meeting, which may be informal in nature, so that Han may respond to
the notice of proposed termination. At such meeting, Han may be represented by an
attorney of her choice and present evidence or information relevant to the reasons and
factual basis set forth in the notice of proposed termination. Subsequently, the decision
of the City Manager as to whether reasons set forth in Section (b)(I) exist or do not exist
shall be final as between the parties.
(c) In the event the City at any time during the term of this Agreement, reduces
the salary of Han from its current level, except as part of an across-the-board reduction
for all Directors of City, or in the event City refuses, following written notice, to extend to
Han any non-salary benefit customarily available to all Directors, or in the event Han
resigns following a suggestion, whether formal or informal, by the City Manager that she
resign, then, Han may, at her option, be deemed to be "terminated." The termination
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 6 of 10
date will occur then at the date of reduction or refusal to extend or such suggestion of
resignation within the meaning and context of the severance pay provision in
subparagraph (a) above; provided that the option to be deemed terminated is exercised
by written notice from Han and delivered to the City Manager within ten .(10) working
days of notification of such reduction, refusal to extend, or suggestion of resignation. In
that event, the severance payment shall be calculated from the date Han exercises the
option to be deemed terminated.
(d) In the event Han voluntarily resigns her position, Han shall give City written
notice at least thirty (30) days prior to the last workday, unless the City Manager and
Han otherwise agree.
(e) It is understood that after notice of termination in any form, Han and the
City will cooperate to provide for an orderly transition. Specific responsibilities during
such transition may be specified in a written separation agreement.
SECTION 7. DISABILITY.
If Han is medically, physically disabled or otherwise unable to perform her duties
because of sickness, accident, injury, mental incapacity or ill health, and has provided
proof of the same from a medical professional, she shall be eligible for Disability Leave
upon exhausting all accrued sick leave, general leave and executive leave, and duty
injury leave if applicable, Disability Leave shall be unpaid and shall be approved by the
City Manager for a time period of up to three (3) months. The length of such time period
of the Disability Leave shall be dependent upon the length of the disability as
demonstrated by Han. If Han is unable to return to work at that time, the City shall have
the option to terminate the employment of Han, subject to the requirements imposed on
City by Section 6, paragraph (a).
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 7 of 10
SECTION 8. PERFORMANCE EVALUATION.
The City Manager shall review and evaluate in writing the performance of Han
at least once annually. That review and evaluation shall be in accordance with specific
criteria developed in consultation with Han and the City Manager. Those criteria may
be added to or subtracted from as the City Manager may from time to time determine,
in consultation with Han.
SECTION 9. GENERAL AND EXECUTIVE LEAVE
(a) Han shall accrue General Leave in accordance with the General Leave
accrual provisions applicable to Department Heads of the City as contained in the
Non-Associated Resolution (Exhibit"A"). Han shall be credited for her years of service
at other CaIPERS agencies in determining her annual general leave accrual
allowance. Han shall be credited eighty (80) hours of Executive Leave on January 1
of each calendar year, and shall initially be provided with a prorated number of
Executive Leave hours for the remainder of the calendar year upon execution of this
Agreement.
(b) Executive Leave must be used in the same calendar year it is credited,
and unused Executive Leave may not be carried forward to the next calendar year or
cashed out at any time. General Leave shall be accrued in accordance with the
appropriate provisions of the Non-Associated Resolution (Exhibit "A"). Han shall
provide the City Manager with reasonable notice prior to taking two (2) or more
General Leave or Executive Leave days off.
SECTION 10. PROFESSIONAL DEVELOPMENT.
The City agrees to budget and pay for Han's professional memberships as
normally accorded to Department Heads. Han shall also receive paid leave, plus
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 8 of 10
registration, travel and reasonable expenses for short courses, conferences and
seminars that are necessary for professional/personal development and, in the
judgment of the City Manager, for the good of the City, and subject to budget
limitations and to established travel policies and procedures.
Within the first twenty-four (24) months of the effective date of this Agreement,
Han will attend one (1) leadership for public sector executive education course (with
costs and expenses paid by the City), which shall be subject to the approval of the
City Manager.
SECTION 11. FINANCIAL DISCLOSURE.
Han shall report to the City Manager any ownership interest in real property
within the County of Orange, excluding personal residence. Han shall also complete
and file annually, Financial Disclosure 700 Forms. Also, Han shall report to the City
Manager any financial interest greater than Ten Thousand Dollars ($10,000) in value '
in a firm doing work for City or from which City intends to make a purchase. Such
reporting shall be made in writing by Han to the City Manager within ten (10) calendar
days of the execution of this agreement and within ten (10) calendar days of
acquisition of that interest in real property. Additionally, Han shall report in writing to
the City Manager any financial interest greater than Ten Thousand Dollars ($ 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.
SECTION 12. INDENNIFICATION.
The City shall defend and indemnify Han against actions, including but not limited
to any: tort, professional liability claim or demand, or other non-criminal legal, equitable
or administrative action, arising out of an alleged act or omission occurring in the
performance of Han during the discharge of her duties as an employee / officer of the
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 9 of 1Q
City, other than an action brought by the City against Han, or an action filed against the
City by Han. The City shall pay the reasonable expenses for the travel, lodging, meals,
and lost work time of Han should Han be subject to such, should an action be pending
after termination of Han. The City shall be responsible for and have authority to
compromise and settle any action, with prior consultation with Han, and pay the amount
of any settlement or judgment rendered on that action. Han shall cooperate fully with the
City in the settlement, compromise, preparation of the defense, or trial of any such
action.
13. GENERAL PROVISIONS.
(a) The text herein shall constitute the entire Agreement between the parties.
(b) This Agreement shall become effective commencing July 8, 2023.
(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.
IN WITNESS WHEREOF, City has caused this Agreement to be signed and
executed on its behalf by its City Manager, and Han has signed and executed this
Agreement, both in duplicate, the day and year first above written.
CITY: HAN:
Sunny Han—Chief Financial Officer Employment Agreement
July 8,2023
Page 10 of 10
7 Al Zelinka, City Ma ler O Sunn a
APPROVED AS TO FORM: Receive and File
*4fIL e6Selezzat&
City Clerk 3
City Attorney
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