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Item 5D1-Iiy or aourniiaKe, T exas MEMORANDUM .January 25, 2005 TO: Honorable Mayor and Members of the City Council FROM: Shana K. Yelverton, Acting City Manager, ext. 1429 SUBJECT: Authorize the Acting City Manager to enter into a letter of agreement with Charles R. Kiefer to perform the duties of Interim Deputy City Manager Action Requested: Authorize the Acting City Manager to enter into a letter of agreement with Charles R. Kiefer to perform the duties of Interim Deputy City Manager. Background Information: As you know, the City Manager is responsible to the City Council for proper administration of all the affairs of the city. This includes overseeing day -to- day municipal operations, as well as working with the City Council and community. To perform these duties adequately in the city's current environment, the assistance of a deputy city manager is needed, Charles R. Kiefer is an experienced public administrator with over 25 years of service, most recently as the City Manager for the City of Arlington (see attached resume), Although Mr. Kiefer recently retired, he is interested in continuing government work. After numerous conversations, we have concluded that an interim assignment with the City of Southlake would be mutually beneficial. As Interim Deputy City Manager, Mr. K.iefer's responsibilities will include operational oversight of the departments of Public Safety, Public Works, and Community Services. He will also provide general oversight of the City Manager's Office. Additionally, he will assist with the development of strategic initiatives designed to address any organizational deficiencies identified in the ongoing internal investigation and audit. He has also agreed to help with the recruitment and selection of an Assistant City Manager. Per Section 4.15 of the City Charter, I will file a letter ( attached) with the City Secretary designating Mr. Kiefer to perform the duties of Acting City Manager in my absence or disability, upon approval of the letter of agreement. Financial Considerations: Mr, Kiefer will be paid a salary equivalent to $10,500 per month. It is anticipated that we will need his services for at least four months, or until a regular, full time Assistant City Manager is on board. Financial Impact: Costs will be covered through the City Manager's Office budget. Honorable Mayor and City Council Members January 26, 2005 Wage 2 Citizen Input/ Board Review: N/A Legal Review: The City Attorney has reviewed and approved the letter of agreement, Alternatives: NIA Supporting Documents: Proposed Letter of Agreement, dated June 4, 2004 Resume of Charles R. Kiefer Organizational Chart, January 2005 Acting City Manager letter Staff Recommendation: Staff recommends approval of the item, 5 uth 0 City of SoijdVake February 2, 2005 Office of the C11Y )IM17agol Mr. Charles R. Kiefer 2319 Wild Turkey Trail Arlington, Texas 76016 Dear Mr'.. Kiefer: Please allow this letter to serve as a formal offer of the position. of Interim Deputy City Manager for the City of Southlake. I am pleased you have expressed your willingness to assist us in this way, and look forward to working with you. As we have discussed, this temporary position has been structured to provide operational oversight to key city departments. Additionally, we have agreed that you will assist with the recruitment and selection of a regular full time Assistant City Manager and that we will work together on strategic initiatives. Further, you will be designated as Acting City Manager if I cannot fulfill my duties due to absence or disability.. The assignment will begin on Thursday, February 3, 2005. 1 understand you are willing to commit your services to the City of Southlake until an Assistant City Manager is on board, but no longer than four months, until .Tune 3, 2005. Your employment with the City of'Southlake is at -will and either party can terminate the relationship at any time. The City of'Southlake will provide you with compensation of $10,500 per month. The City of Southlake will also cover those state and federal employer benefit matches required by law. Please return a signed copy of this letter to affirm your acceptance of this offer. Sincerely, Shana K. Yelverton Acting City Manager ACCEPTED: 1400 Main Street Suite 460 + Southlake, TX 76092 (817) 481 -1420 • wunv,ci.southlake.tx.vs Charles R. Kiefer 2319 Wild Turkey Trail Arlington, Texas 76016 817 - 446 -8549 (H) 682- 225 -7302 (C) pcldefer @aol.com A seasoned municipal executive with over 25 years of city management experience in a large north Texas community Professional Experience City Manager (1999 — 2005) Arlington, Texas (Population 354,000) Chief Executive Officer of a full- service municipality of 354,000, with an annual operating budget of $328 million, $27 million capital budget, and 2,350 full -tinge employees Major Accomplishments Strategic Planning — Worked with tlhe City Council since 2000 to develop and refine the City's first strategic plan. My executive staff and I have operationalized the plan, developing and reporting regularly on work plan items and performance measures that determine success in achieving its goals and objectives, Cost Effective Service Deliver — Managed a very efficient municipal service delivery system. In 2000, Arlington had the lowest price of government when compared to the 44 largest U.S.. cities, outside of Texas, When comparing the largest cities in Texas in 2004, Arlington's cost of service provision was 22 percent below the average. Of the six largest cities in Texas, Arlington has the lowest employee per citizen ratio, with 65.8 employees per 10,000 residents.. Police Management Study — Directed a study of the Police Department to ensure that the department was operating as efficiently as possible. The department has 700 employees and an annual budget of $57 million. The report had 4.3 recominendations and .39 were implemented. This resulted in an annual savings to the City of $$576,000, Public Works Reor anization — Combined the Transportation and Engineering Services Departments to create a single Public Works Department. This reorganization unproved service delivery by increasing communication and collaboration among employees, and it resulted in an annual savings o €' $600,000, Bud _et Imbalance — Balanced the City's budget over a three -year period in which tlhere were unprecedented revenue shortfalls. Factors including the September 11 tragedy, a loss of retail competitiveness and a significant change in demographics, resulted in steep decline in the City's sales tax collections. Through program reductions, employee layoffs, deferrals, and identification of alternate revenue sources, the City was able to overcorne multi - million dollar deficits, without significant impacts on basic service delivery. All this was accomplished while maintaining the City's AA bond rating. Competitive Services Program — Initiated a competitive services program to examine the efficiency of current processes. The program determines whether the City should retain a particular service, re- engineer it, outsource it, eliminate it, or initiate a managed competition. The City conducted a managed competition with its Fleet Services Division. Based on a "hest value" criterion, the decision was made to outsource the service. The City's Landfill was also analyzed through the competitive services program. It was determined that the City could benefit significantly by leasing the landfill to a private waste management company, which is expected to be in place in mid- 2005.. Street Maintenance Sales Tax — Addressed the City's x$75 million street repair backlog. With a voter approved'/, -cent sales tax increase, the City has generated approximately x$10 million per year, which repairs approximately 150 street miles annually, Econornic Development — Provided municipal services and customer- focused staff resources that encouraged business development and ultimately the diversification of the City's commercial tax base. While I was City Manager, Arlington was able to attract or retain several companies including AmeriCredit Corp., Siemens Dematie postal Automation L-P., Ameriquest and General Motors, I also led the negotiation team that successfully developed the Master Agreement with the Dallas Cowboys Football Chub for a stadium in Arlington, Executive Recruitment and Retention — Hired sixteen of the seventeen members of my executive team. I ensured that the work environment and executive compensation package offered by the City were competitive, and consequently, was able to attract and retain a talented municipal executive team. Workforce Communication and Labor Relations -- Crented a positive working environment through open communication with employees. A recent employee attitude survey indicates that 94 percent of employees with the City of Arlington believe that their jobs are important, 85 percent say that their supervisor treats them fairly, and 80 percent said that they are satisfied with the City as an employer. Deputy City Manager, Arlington, TX (1984 -1999) Assistant City Manager, Arlington, TX (1982 - 1984) Assistant to the City Manager, Arlington, TX (1982 — 19 80) Administrative Assistant, Arlington, TX (1978 — 1980) Education Effective Executive Program, Wharton School, University of Pennsylvania Pro ram for Senior Local and State Government Executives Harvard UnivegLi Master of Public Administration Southern Methodist Univ! rg Bachelor of Science, Northern Kentuc4 University City of Southlake Organizational Chart * Confer with City Manager on day -to -day issues. Date. January 2005 �m M� ,January 26, 2005 Lori Farwell City Secretary City of Southlake 1400 Main Street Suite 270 Southlake, TX 76092 Dear Lori: Section 4.15 of the Home Rule charter for the City of Southlake provides that "a qualified administrative officer of the City" may be designated to perform the duties of the City Manager in his /her absence or disability, As you know, the City Council has designated me to serve as Acting City Manager, and I will continue to serve in that capacity until the effective date of Silly Campbell's retirement, and the date of my appointment as City Manager, March 2, 2005. Due to the current unusual circumstances, Charles R. Kiefer has been hired as Interim Deputy City Manager to assist me with the transition. With City Council's approval of his letter of agreement, Mr. Kiefer will be designated to serve as Acting City Manager if I am unable to perform my duties. Mr,. Kiefer will serve in this capacity until a full time regular Assistant City Manger is on board and designated per Charter provisions.. Sincerely, Shana Yelv r on Acting Cit anager 140 Main Street Suite 460 • Southlake, TX 76092 (817) 481 --1420 • www,cityofsouthlalce.com