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SR 09-26-2017 3M City Council Report City Council Meeting: September 26, 2017 Agenda Item: 3.M 1 of 3 To: Mayor and City Council From: Donna Peter, Director, Human Resources Department Subject: Contract for Service as Assistant City Manager/Chief Operating Officer and Deputy City Manager/Director of Policy Recommended Action Staff recommends that the City Council: Approve and adopt the Resolution of the proposed Employment Agreements with Katie Lichtig as Assistant City Manager/Chief Operating Officer and Anuj Gupta as Deputy City Manager/Director of Policy, and authorize the City Manager to execute the agreements. The Agreements will establish Ms. Lichtig’s salary at $22,959 per month and Mr. Gupta’s salary at $14,667 per month. Executive Summary After an extensive search process for two key positions within the City Manager’s office, the City Manager has selected Katie Lichtig to the position of Assistant City Manager/Chief Operating Officer and Anuj Gupta to the position of Deputy City Manager/Director of Policy. California law requires that the salaries be set and approved in public. The vote on the approval of the employment agreements set the Assistant City Manager/ Chief Operating Officer’s salary at $22,959 per month and at $14,667 per month for the Deputy City Manager/Director of Policy and fulfill that legal requirement in keeping with the earlier pledge to keep the combined costs consistent with the prior total budgetary impact of these two positions Background Both these positions have been part of the City Manager’s Office for more than a decade. When both became vacant, the scope of duties for each was adjusted, with the Assistant City Manager role reshaped to emphasize the duties of a Chief Operating Officer and the Deputy City Manager to be Director of Policy. Given the scope and 2 of 3 complexity of Santa Monica City government, differentiation of the role of the City Manager as Chief Executive Officer and the Assistant City Manager as Chief Operating Officer is consistent with trends in business, major non-profits and increasingly in full- service municipal governments. The new emphasis on policy-making and implementation for the Deputy City Manager is the result of both Santa Monica’s continuing leadership in pursuing innovative local policy initiatives and the Council’s desire for greater rigor and civic engagement in the policy-making process. Following the announcement that Assistant City Manager Elaine Polachek’s would end her tenure with the City, staff retained an outside recruitment to conduct a nationwide search. A strong pool of applicants were reviewed and the top finalists were interviewed in August 2017. On August 7, 2017, City Manager Rick Cole announced Katie Lichtig as the new Assistant City Manager/Chief Operating Officer. The position of the Deputy City Manager has been vacant since January, but filled on an interim basis since March. A similarly extensive nationwide search was conducted and on August 23, 2017, Anuj Gupta was selected and offered the position. Discussion The proposed contract between the City and Ms. Lichtig will establish a monthly salary of $22,959. (The prior maximum salary for this position was $25,264.) The contract will specify that Ms. Lichtig will receive the same benefits provided to all members of the City's Executive Pay Plan. Additionally, the contract provides for vacation to be accrued at 1.75 days per month which is based on prior years of service in the public sector with an initial bank of 40 hours of vacation and 40 hours of sick leave. Ms. Lichtig will be moving from San Luis Obispo and will be reimbursed for relocation costs up to a maximum of $14,000. Ms. Lichtig will receive the standard accrual of Management Leave Days per the Executive Pay Plan retroactive to July 1, 2017. The proposed contract between the City and Mr. Gupta establishes a monthly salary of $14,667 per month and will also receive the same benefits provided to all members of the City’s Executive Pay Plan. (The prior maximum salary for this position was 3 of 3 $15,677.) The starting vacation accrual rate is 1.25 days per month with an initial bank of 40 hours of vacation and 40 hours of sick leave. Mr. Gupta is a resident of Santa Monica and is not in need of relocation. Mr. Gupta will receive the standard accrual of Management Leave Days per the Executive Pay Plan retroactive to July 1, 2017. Following approval and execution of the contract, Ms. Lichtig will officially begin her service as Assistant City Manager/Chief Operating Officer on October 9, 2017. It is anticipated that Mr. Gupta will begin his service as Deputy City Manager/Director of Policy on September 25, 2017. Financial Impacts and Budget Actions Salaries and benefits for the Assistant City Manager/Chief Operating Officer and the Deputy City Manager/Director of Policy positions are included in the FY 2017-18 budget in the City Manager’s Office. Prepared By: Tatiana Morrison, Executive Administrative Assistant Approved Forwarded to Council Attachments: A. Resolution REFERENCE:    RESOLUTION NO. 11077  (CCS)