HomeMy WebLinkAboutReso 64-2018 (18-360)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 64 -2018
File Number: 18 -360 Enactment Number: RES 64 -2018
RESOLUTION APPROVING AMENDMENT NO. 4 TO THE
EMPLOYMENT AGREEMENT BETWEEN THE CITY OF SOUTH
SAN FRANCISCO AND MICHAEL FUTRELL AND THE CITY OF
SOUTH SAN FRANCISCO.
WHEREAS, on March 12, 2014, the City Council approved by resolution an employment agreement
with Michael Futrell for services as City Manager of the City of South San Francisco, and Executive
Director of the Successor Agency to the Redevelopment Agency of the City of South San Francisco
( "Employment Agreement "); and
WHEREAS, on June 24, 2015, the City of South San Francisco approved Amendment No. 1 to the
Employment Agreement; and
WHEREAS, on July 13, 2016, the City of South San Francisco approved Amendment No. 2 to the
Employment Agreement; and
WHEREAS, on August 9, 2017, the City of South San Francisco approved Amendment No. 3 to the
Employment Agreement; and
WHEREAS, the City of South San Francisco and Michael Futrell hereto desire to further amend the
Employment Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that
Amendment No. 4 to the Employment Agreement, attached hereto as Exhibit A, is hereby approved.
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said Amendment No. 4 to
the Employment Agreement on behalf of the City of South San Francisco.
BE IT FURTHER RESOLVED that the Finance Director, or his/her designee, shall be authorized to
maintain and amend the 401(a) retirement plan contemplated in Section 7(E) of the Employment
Agreement in a manner consistent with the terms of the Employment Agreement and this Amendment
No. 4, subject to approval as to form by the City Attorney.
City of South San Francisco Page 1
File Number. 18 -360
Enactment Number: RES 64 -2018
At a meeting of the City Council on 4/25/2018, a motion was made by Pradeep Gupta, seconded by Mark
Addiego, that this Resolution be approved. The motion passed.
Yes: 4 Mayor Normandy, Mayor Pro Tern Matsumoto, Councilmember Gupta, and
Councilmember Addiego
Absent: 1
Attest
City of South San Francisco Page 2
AMENDMENT NO. 4 TO THE EMPLOYMENT AGREEMENT BETWEEN
MICHAEL FUTRELL AND THE CITY OF SOUTH SAN FRANCISCO
RECITALS
WHEREAS, on March 12, 2014, the City of South San Francisco and Michael Futrell
entered into an Employment Agreement for services as City Manager of the City of South San
Francisco and Executive Director of the Successor Agency to the Redevelopment Agency of the
City of South San Francisco ( "Employment Agreement "); and
WHEREAS, the parties have previously entered into Amendment No. 1, Amendment No.
2, and Amendment No. 3 to the Employment Agreement; and
WHEREAS, the parties now seek to further amend the Employment Agreement to
modify the terms.
NOW, THEREFORE, the parties hereto agree as follows:
Section 1(A) of the Employment Agreement is hereby amended to read as follows:
A. This Agreement shall remain in full force in effect from April 7, 2014 through April
6, 2021, unless terminated by the Employer or Employee as provided in Section 9 or
Section 11 of this Agreement.
2. Section 3(A) of the Employment Agreement is hereby amended to read as follows:
A. Base Salary: Employer agrees to pay Employee an annual base salary of two hundred
and eighty one thousand and four hundred eighty nine and sixty -five cents
($281,489.65), effective April 11, 2018, payable in installments at the same time that
the other management employees of the Employer are paid.
Section 7(E) of the Employment Agreement is hereby amended to read as follows:
E. Defined Contribution Plan: Employer will establish and maintain a 401(a) retirement
plan (Plan) for Employee to participate in as described in this Section 7(E).
Each calendar plan year during the term of this Agreement, Employer shall make
an Employer contribution to the Plan based on the portion of Employee's income
for such calendar year that exceeds the limitation ( PEPRA Limit) set forth in
California Government Code § 7522.10(c) ($121,388 for the 2018 calendar year).
ii. The Employer contribution shall be made on a payroll -by- payroll basis once the
Employee's pay for the calendar year has reached the PEPRA Limit.
iii. Employer contributions to the Plan shall be made at a rate, as a percentage of pay,
equal to the then current total employer contribution rate as set forth in the latest
Employer's Ca1PERS actuarial valuation for the miscellaneous plan, which is
presently the sum of the Employer's normal cost rate (as a percentage of payroll)
and the Employer's payment of unfunded accrued liability (as a percentage of
payroll) (29.191% as of July 1, 2017, 29.179% as of July 1, 2018).
iv. Employee's sole benefit and/or payment pursuant to this Section 7.E. shall consist
of the payment of the Employee's account balance under the terms of the Plan.
v. The parties acknowledge and agree that because the Plan is intended to be a tax -
qualified plan under Internal Revenue Code (Code) Section 401(a), Employee's
rights and benefits under the Plan will be subject to the terms of the Plan and all
applicable rules and limitations, including, but not limited to:
a. The compensation cap established in Code Section 401(a)(17) ($275, 000
as of January 1, 2018); and
b. The limitation on per participant annual additions established in Code
Section 415(c)(1)(A) ($55,000 as of January 1, 2018).
vi. Employer contributions to the Plan shall cease as of the date of termination of this
Agreement and no Employer contributions shall be made with respect to
severance pay or any other amounts paid to Employee following such termination.
All other terms of the Employment Agreement, Amendment No. 1, Amendment No. 2,
and Amendment No. 3 not modified by this Amendment No. 4 shall remain in full force and
effect.
ATTEST:
City Clerk
Mayor
City of South San Francisco
Michael Futrell
2
APPROVED AS TO FORM:
City Attorney