HomeMy WebLinkAboutAgenda Report - January 16, 2008 E-08AGENDA ITEM 'r,"'8
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Adopt Resolution of the Lodi City Council Ratifying the Employment
Agreement Extension between the City Manager and Electric Utility Director
George Morrow
MEETING DATE:
PREPARED BY:
January 16,2008
City Manager
RECOMMENDED ACTION:
BACKGROUND INFORMATION:
January 23, 2006 to January 22,2008.
service is of significant value to the
referenced in the attached agreement
Adopt Resolution ratifying the employment agreement
extension with Electric Utility Director George Morrow.
Electric Utility Director George Morrow, entered into a
two-year employment agreement with the City effective
As the end of that term is approaching and Mr. Morrow's
City, it is recommended that his contract be renewed as
The extended Agreement mirrors the terms of his original contract, setting forth a two-year term
with one automatic two-year extension and a six-month severance package in the event he is
terminated without cause during the term of the contract. The only change is to provide the City
Manager the authority to grant up to a maximum of a five percent salary increase at the end of
the first two-year term.
FISCAL IMPACT: Salary costs as approved in the annual budget.
Approved:
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Blair King, Ci ager
Evans, Budget Manager
APPROVED:
BI ' ' g, City Manager
months' aggregate salary and the City's cost of six (6) months' health insurance benefits subject
to reduction as set forth in this Paragraph 5. The severance payment will be paid over time at the
same time as other employees of the City are paid and subject to customary withholdings. In the
event Employee retains new employment during the six month severance period, any remaining
severance payment will be forfeited as of the date Employee begins his new Employment. To be
eligible for such severance pay, Employee shall fulfill all of his obligations under this
Agreement, and shall sign an Acknowledgment and Release of Claims against the City. Payment
under this paragraph will release City from any further obligations under this Agreement, or any
other transaction between the parties.
6. Emplovment as Department Head is Sale Employment with City: Employee
further represents and acknowledges that his employment as Electric Utility 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. Salary:
(a) City agrees to pay Employee $159,171 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.
(b) A salary increase of up to five percent (5%) may be granted by the City
Manager effective each January 23 with a satisfactory performance evaluation.
8. Benefits: The City shall provide Employee the same 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, retirement, 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.) Employee will also earn and accumulate sick leave and vacation as provided in the
Executive Management Statement of Benefits.
9. Performance Evaluation: The City Manager shall review and evaluate the
performance of Employee each year and set goals and objectives for the ensuing year. Such
review and evaluation shall be in accordance with specific criteria developed in the performance
plan in consultation with Employee and the City Manager.
10. Assignment: Employee shall not assign any of the duties and responsibilities, or
obligations of this Agreement except with the express written consent of the City Manager.
11. Authoritv to Work in the United States: Employee represents, under penalty of
perjury, that he 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
KM
RESOLUTION NO. 2008-05
A RESOLUTION OF THE LODI CITY COUNCIL
RATIFYING THE EMPLOYMENT AGREEMENT
EXTENSION BETWEEN THE CITY MANAGER AND
ELECTRIC UTILITY DIRECTOR GEORGE MORROW
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
ratify the Employment Agreement Extension between the City Manager and Electric
Utility Director George Morrow; and
BE IT FURTHER RESOLVED that the terms of the extended Agreement sets
forth a two-year term with one automatic two-year extension and a six-month severance
package in the event he is terminated without cause during the term of the contract; and
BE IT FURTHER RESOLVED that the extended Agreement further authorizes
the City Manager to grant up to a maximum of a five percent salary increase at the end
of the first two-year term.
Dated: January 16, 2008
I hereby certify that Resolution No. 2008-05 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 16, 2008, by the following
vote:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Johnson, and
Katzakian
NOES: COUNCIL MEMBERS — Mayor Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
RANDIJOHL
City Clerk
2008-05
EMPLOYMENT AGREEMENT
Executive Management
Exempt Service
Electric Utility Director
THIS AGREEMENT entered into on January 16, 2008, by and between the CITY OF
LODI, a municipal corporation (hereinafter referred to as "City") and George F. Morrow, an
individual (hereinafter referred to as "Employee").
WHEREAS, Employee has served as Electric Utility Director from January 23, 2006 to
January 22, 2008 and City desires to continue to employ the services of Employee as Electric
Utility Director; and
WHEREAS, Employee desires to continue to serve as Electric Utility Director for the
City beginning January 23,2008; and
WHEREAS, City and Employee agree in writing to the terms and conditions of
employment as Electric Utility Director; and
WHEREAS, Employee and City agree and acknowledge that Employee's employment
as Electric Utility 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 set forth herein,
the parties mutually agree as follows:
1. Employment: City agrees to employ Employee as Electric Utility Director, in
accordance with the following provisions:
(a) Employee shall serve as Electric Utility Director, and shall be responsible
i'or managing and directing the operations of the Electric Utility Department in accordance with
an agreed upon performance plan.
(b) Employee shall perform 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
general 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
defined under California law. Employee shall comply fully with his reporting and disclosure
obligations under regulations promulgated by the Fair Political Practices Commission (FPPC).
(d) Employee agrees to remain in the exclusive employ of the City during the
term of' this Agreement. Employee shall dedicate his full energies and qualifications to his
employment as Electdc Utility Director, and shall not engage in any other employment except as
may be specifically approved in writing in advance by the City Manager.
2. Maintenance of Professional Expertise: To promote continued professional
growth and benefit to the City, Employee shall, at City expense and consistent with budgetary
constraints: maintain membership in professional organizations related to city utility
administration and related professional disciplines; attend workshops, seminars and other similar
activities designed to advance Employee's professional development; and, represent the City in
professional associations and other organizations.
3. Term: The term of the Agreement shall be for a period of two (2) years,
commencing January 23, 2008, 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. This Agreement will be automatically renewed one time for an additional two (2)
year period on the same terms and conditions if neither party gives notice of intent to not renew
it at least six (6) months prior to its expiration. This Agreement may also be renewed with
amendments by the City Manager and Employee, at any time prior to its expiration. Any
amendments to or renewals of this Agreement beyond the first automatic renewal shall require
Council consent.
4. Resignation or Termination:
(a) Employee may resign at any time and agrees to give City at least 30 days
advance 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 moral turpitude or involving personal gain to him,
or material breach of this Agreement. 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 terminated by the
City Manager without cause. In 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 Manager. This employment relationship is based on the mutual respect
between the parties 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 remain applicable.
5. Severance Pay: If Employee is terminated by the City Manager during the initial
or any renewed term of this Agreement without cause while still willing and able to perform the
duties of Electric Utility Director, City agrees to pay Employee a cash payment equal to six (6)
-2
months' aggregate salary and the City's cost of six (6) months' health insurance benefits subject
to reduction as set forth in this Paragraph 5. The severance payment will be paid over time at the
same time as other employees of the City are paid and subject to customary withholdings. In the
event Employee retains new employment during the six month severance period, any remaining
severance payment will be forfeited as of the date Employee begins his new Employment. To be
eligible for such severance pay, Employee shall fulfill all of his obligations under this
Agreement, and shall sign an Acknowledgment and Release of Claims against the City. Payment
under this paragraph will release City from any further obligations under this Agreement, or any
other transaction between the parties.
6. Employment as Department Head is Sole Employment with City: Employee
further represents and acknowledges that his employment as Electric Utility 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. Salary:
(a) City agrees to pay Employee $159,171 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.
(b) A salary increase of up to five percent (5%) may be granted by the City
Manager effective each January 23 with a satisfactory performance evaluation.
8. Benefits: The City shall provide Employee the same 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
Managcr. As used herein, benefits include, but are not limited to: vacation, sick leave, holidays,
administrative leave, retirement, 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.) Employee will also earn and accumulate sick leave and vacation as provided in the
Executive Management Statement of Benefits.
9. Performance Evaluation: The City Manager shall review and evaluate the
performance of Employee each year and set goals and objectives for the ensuing year. Such
review and evaluation shall be in accordance with specific criteria developed in the performance
plan in consultation with Employee and the City Manager.
10. Assignment: Employee shall not assign any of the duties and responsibilities, or
obligations of this Agreement except with the express written consent of the City Manager.
11. Authority to Work in the United States: Employee represents, under penalty of
perjury, that he 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 must execute the verification required by that
Act.
3
12. Cell PhoneNchicie: Employee will be provided with a Cell Phone for
employment related use at the City's expense on terms consistent with other Executive
Managers. Employee will be provided with a City vehicle.
13. Not Used
14. Notice: All notices required herein shall be sent first class mail to the parties as
follows:
To CITY: City of Lodi
P. O.Box 3006
Lodi, CA 95241-1.910
To EMPLOYEE:
George Morrow
1516 Sylvan Way, # 510
Lodi, CA 95242
Notice shall be deemed effectively served upon deposit in the United States mail. Either parry
may change the address notices are to be sent to them by notifying the other party in writing of
such change.
15. 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.
16. Severability: If any provision of this Agreement is invalid or unenforceable, it
shall be considered deleted herefrom 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:
B y:
EMPLOYEE
George Morrow, Electric Utility Director
CITY OF LODI, a municipal corporation
Blair King, City Manager
Randi Johl, City Clerk
.A.
APPROVED AS TO FORM:
Steve Schwabauer, City Attorney