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HomeMy WebLinkAboutAgenda Report - September 7, 2005 E-22AGENDA ITEM Poft 102w CITY OF LODI %W COUNCIL COMMUNICATION FM AGENDA TITLE: Ratification of Employment Agreement Entered into Between City Manager Blair King and Community Development Director Randall Hatch MEETING DATE: September 7, 2005 PREPARED BY: Blair King, City Manager RECOMMENDED ACTION: Adopt Resolution Ratifying the Terms of the Employment Agreement entered into between City Manager Blair King and Community Development Director Randall Hatch. BACKGROUND INFORMATION: Lodi Municipal Code Section 2.12.060 vests with the City Manager the power to select subordinate staff. Based upon an open and competitive selection process, the City Manager selected Mr, Randall Hatch to serve as the City's Community Development Director. The City Manager wishes to provide Mr. Hatch certain terms and conditions related to employment that extend beyond the Manager's authority and therefore require ratification by the City Council. Specifically, the Manager, via an employment agreement, wishes to provide Mr. Hatch a severance payment equal to six months of salary if Mr. Hatch should be terminated without cause. The proposed employment agreement is a two-year "term" agreement. It is noted that several other members, but not all, of the City's Executive Management Team, have employment agreements with severance provisions. It is unclear whether the previous agreements have been ratified by the City Council. FISCAL MAPACT: The proposed annual salary is $121,800. This falls within the approved range for this position. The Agreement allows for an increase after 12 months and a satisfactory performance evaluation of up to five percent. If the maximum is granted, a slight range adjustment would be required prior to September 2006. Blair King City Manager APPROVED: g, City Manager RESOLUTION NO. 2005-186 A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING THE EMPLOYMENT AGREEMENT ENTERED INTO BETWEEN CITY MANAGER AND COMMUNITY DEVELOPMENT DIRECTOR NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hereby ratifies the Employment Agreement entered into between City Manager Blair King and Community Development Director Randall Hatch, as shown on Exhibit A attached hereto. Dated: September 7, 2005 hereby certify that Resolution No. 2005-186 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 7, 2005, by the foHowing vote: AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, and Mayor Beckman NOES: COUNCIL MEMBERS -- Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk 2005-186 EXHIBIT A EMPLOYMENT AGREEMENT Executive Management ENenipt Service Community Development Director THIS AGREEMENT entered into on August 2-5', 2005 by and between the CITY OF LOD1, a IllUniCipal corporation (hereinafter referred to as "City„) and Randall Latch, an individual (hereinafter re{erred to as "Employee"). WHERLsAS, City desires to employ the services of Employee as Community Development Director; and WHEREAS, Employee desires to serve as Community Developn-rent Director for the City beginning September 26,2005,- and WHEREAS, City and Employee agree in writing to the terms and conditions of enlploynlent as Community Development Director; and WHEREAS, Employee and City agree and acknowledge that Employee's employment as Community Development Director is his sole and exclusive employment with City, and that their employment relationship is governed solely and exclusively by this Agreement. NOW, THEREFORE, in consideration of the promises and conditions sct forth herein, the parties mutually agrcc as follows: 1. Em lov hent: City agrees to employ Employee as Community Development Director, in accordance with the following provisions: (a) Employee shall serve as Community Development Director, and shall be responsible for managing and directing the operations of the Community Development Department in accordance with an agreed upon performance plan. (b) Employee shall perforin his duties to the best of his ability in accordance with the highest professional and ethical standards of the profession and shall comply with all gencrul rules and regulations established by the City. (c) Employee shall not engage in any activity which is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as dciined under California law. Employee shall comply fully with his reporting and disclosure obligations under regulations promulgated by the Fair Political Practices Commission (FPPQ. (d) Employee agrees to remain in the exclusive employ of the City during the term of this Agreement. Employce snail dedicate his full energies and qualifications to his cljiploymem as Community Dcvclopment Director, and shall not engage in any other employment except as may be specifically approved in writing in advance by the City Manager, 2. Maintenatice of Professional Expertise: To promote continued professional growth and benefit to the City, Employee shall, at City expense and consistent with budgetary constraints: I3iaintain membe5hip in pi-afessioital orgaitlzations related to Community Development administration and related professional disciplines; attend workshops, seminars and other similar activities designed to advance Employee's professional development; and, represent the City in proicssional associations and other organizations. 3. 'Terga: Tile term of the Agreeinent shall be for a period of two (2) years, commencing September 26, 2005, until terminated by either party in accordance with the provisions set forth in Paragraph 4, or until terminated by the event of the death or Permanent disability of Employee. The Agreement may be renewed, under lei -ins mutually agreed by the parties, no later than eighteen (I8) months after commencement of Employee's employment with City. 4. Resinatign or Termination; (a) Employee may resign at any time and agrees to give City at least 30 days a.dvaiice written notice of the effective date of his resignation. In such event, Employee shall not be entitled to severance pay as provided in Paragraph 5 herein. (b) The parties recognize and affirm that Employee may be terminated by the City Manager with cause, which shall mean gross insubordination, incapacity, dereliction of duty, conviction of a crime involving acts of inoral tuipitude or involving personal gain to him, or material breach of this Agreenient. In such event, Employee shall not be entitled to severance pay as provided in .Paragraph 5 herein. (c) The parties recognize and affirm that Employee may be tenninated by the City Man:tgcr without cause. III such event, Employee shall be entitled to severance pay as provided in Paragraph 5 herein. (d) In the event of termination and in recognition of Employee's professional status and integrity, Employee and the City Manager shall prepare a joint public statement to be made by the City Maivager. This employment relationship is based on the mutual respect between the panics and a desire to maintain the highest degree of professionalism. In communicating with third parties about the parties' employment relationship and the circumstances under which it may have been severed, the parties shall (a) protect and advance their mutual respect, and professionalism, and (b) refrain from making statements that would negatively impact either party. (e) Employee may choose to resign or retire his office instead of being terminated if agreed to by the City Manager. In such an event the public announcement, as provided for in Paragraph 4 (d) above, will note Employee has resigned or retired. The provisions of Paragraph 4 (d) shall rcniairi applicable. 5. Severance Pay: If Employee is terminated by the City Manager without cause while still willing and able to perform the duties of Community Developnxnt Director, City agrees to pay Employee a cash payment equal to six (6) montlis' aggregate salary and the City's cost of six (6) months' health insurance benefits subject to reduction as set forth in this -I- Paragraph 5. The severance payment will be paid at the same time as other employees of the City are paid and subject to customary witltlloldtngs. In the event, Employee retains new employment during the six month severance period, any remaining severance payment will be forfeited as of the elate Employee begins his new Employment. To be eligible for such severance pay, Employee shall fulfill all of his obligations tinder this Agreement, and shall sign an Acknowledgment and Release of Claims against the City, Payment under this paragraph will rcl=se City from ally furthrl- obligations under this Agreement, or any other transaction between the parties 6. Ern xlo meat -is De tal-tn:erit Heat! is Sole Em to meet with City: Employee further- represents and acknowledges that his employment tris Community Development Director is his sole and exclusive employment with the City. Employee has no right to any other exempt position with the City, or to any employment in the classified service. 7. Salarv: (a) City agrees to pay Employee $121,800 in salary per annum for his services, payable in installments at the same time as other employees of the City are paid and subject to customary withholding. (a) Thereafter, a salary increase of up to live percent (5%) may be granted by the City Manager after twelve (12) months of employment and a satisfactory performance evaluation. 8. Renef;ts: The City shall provide Employee the sante benefits as provided to management employees in accordance with the terms of the Executive Management Statement of Benefits dated 1998 and as they may be amended, increased or decreased, except as modified herein. These are the sole and exclusive benefits to be provided to Employee. Any improvement or modification of such benefits may only be made by written instrument signed by the City Manager. As used herein, benefits include, but are not limited to: vacation, sick leave, holidays, administrative leave:, retirenlcilL, vision insurance, health insurance, dental insurance, long term disability insurance and life insurance. Employee's vacation leave shall be calculated as if Employee was in his sixth year of employment (i.e., Employee shall accrue fifteen days of vacation per year increasing from there as provided in the Executive Management Statement of Benefits.) Moreover, Employee shall be granted 12 days of sick leave and 5 days of vacation leave immediately upon the execution of this Agreement. Any unused balance of sick leave and vacation leave resulting from the initial allocation at the end of Employee's first year of employment will be forfeited and removed .from Employee's sick, leave and vacation leave balances. Employee will also darn and accumulate sick leave and vacation as provided in the Executive Management Statement of Benefits. 9. Pei-forznanre Evaluation: The City Manager shall review and evaluate the perform llicc of 1"nlllloyee each year and set goals and objectives for the enSnitlg year. Such review and evaluation shall be in accordance with specific criteria developed in (lie performance plan in consultation with Employee and the City Manager. 10, MsiAgn ment: lsnnployeu shall not assign any ol- the duties and responsibilities, or obligations of this Agreement except with the express written consent of the City Manager. -3- It. Authority to Work in the United States: Employee represents, under penalty of pejjury, that lie is authorized to work in the United States. In accordance with §274A (8 USC 1324) of the Immigration Reform and Control Act of 1986 before this Agreement can become effective, Employee must provide documentary evidence to City consistent with the Act, that he is legally entitled to work in the United States, and niust execute the verification required by that Act. 12. Cell Phone/Vehicle: Employee will be provided with a Cell Phone for employment related use at the City's expense on ternis consistent with other Executive Managers. Employee will also be provided with access to the Community Development Pool Car for work related use on an as available basis. 13. Notices: All notices required herein shall be sent first class mail to the parties as follows: To CITY: To EMPLOYEE: City of Lodi P. 0. Box 3006 Lodi, CA 95241-1910 Randall Hatch 7505 Oakcreek Drive Stockton, CA 95207 Notice shall be deemed effectively served upon deposit in the United States mail - 14. Entire Agreement: This Agreement contains the entire agreement between the parties hereto. No promise, representation, warranty, or covenant not included in this Agreement has been or is relied on by any party hereto. This Agreement may only be amended by written instrument signed by Employee and the City Manager and specifically approved by the City Council in open session. 15. Seyerabil&. If any provision of this Agreement is invalid or unenforceable, it shall be considered deleted lierefrom and the remainder of this Agreement shall be unaffected and shall continue in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year written above, ATTEST: Susan Blackston, 0i Clerk -4- CITY OF LODI, a municipal corporation BY: Blair King, Cit- APPROVED i APPROVED AS TO