HomeMy WebLinkAboutAgenda Report - April 2, 2008 E-17AGENDA ITEM E-17
CITY OF LODI
%W COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Ratifying Employment Agreement Entered into Between
City Manager Blair King and Directorof Public Works F. Wally Sandelin
MEETING DATE: April 2, 2008
PREPARED BY: City Manager
RECOMMENDED ACTION: Adopt resolution ratifying the terms of the employment agreement
entered into between City Manager Blair King and Director of Public
Works F. Wally Sandelin.
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 F. Wally
Sandelin to serve as the Directorof Public Works.
The City Manager wishes to provide the terms and conditions related to employment that extends beyond
the Manager's authority and therefore requires ratification by the City Council. Of particular interest to the
Council is the following:
The proposed Employment Agreement provides for a six-month severance if the Directorof Public
Works is terminated without cause; and
The second year of the agreement allows for a ten percent (10%) pay differential between the Public
Works Director and the Public Works Department's next highest paid executive or mid -management
position (this does not necessarily mean a 10% pay increase), plus up to a five percent (5%) increase
at the Manager's discretion.
As has been previously indicated to City Council, it is the Manager's intention to have all members of the
Executive Management Team under a "standard employment agreement."
A copy of the Employment Agreement is attached.
FISCAL IMPACT: A well-qualified, competent Public Works Director is a significant asset. The
first year's salary falls within the current approved range for the position.
The salary represents a five percent (5%) increasefor Mr. Sandelin.
FUNDING AVAILABLE: Funding is available for the Directorof Public Works in the Public Works
Depa �dt
ns, Budget anag
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Blair l! g
BK City Manager
Attachment
APPROVED:
Bl&LXjAd, City Manager
f3�Yi1���L�1�ii•Ci � � :. ��
A RESOLUTION OF THE LODI CITY COUNCIL
RATIFYING THE EMPLOYMENTAGREEMENT
ENTERED INTO BETWEEN CITY MANAGER
AND PUBLIC WORKS DIRECTOR
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
ratify the Employment Agreement entered into between City Manager Blair King and
Public Works Director F. Wally Sandelin, as shown on ExhibitA attached hereto.
Dated: April 2, 2008
hereby certify that Resolution No. 2008-60 was passed and adopted by the City
Council cf the City of Lodi in a regular meeting held April 2, 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
�NNIFE PERRIN
Deputy City Clerk
2008-60
EXHIBIT A
EMPLOYMENTAGREEMENT
ExeOutive Management
Exempt Service
Public Works Director
TKC a AGREEMENT entered into on , by and between the CITY OF LODt a
municipal corporation (hereinafter referred to as "City') and F. Wally Sandelin, an individual
(hereinafter referred to as "Employee").
WHEREAS, City desires to employ the services of Employee as Public Works Director;
and
WHEREAS, Employee desires to serve as Public Works Director for the City beginning
April 7,2008; and
WHEREAS, City and Employee agree in writing to the terms and conditions of
employment as PublicWorks Director; and
WHEREAS, Employee and City agree and acknowledge that Employee's employment
as Public Works Director is his sole and exclusive employment with City, and that their
employment relationship is governed solely and exclusivety by this Agreement.
NOW, THEREFORE, in consideration of the promises and conditions set forth herein,
the parties mutually agree as follows:
1. EMOloyment; City agrees to employ Employee as Public Works Director, in
accordancewith the fallowing provisions:
(a) Employee shall serve as PublicWorks Director, and shall be responsible
for managing and directing the operations cFthe PublicWorks Department.
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 ali
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 Public Works Director, and shall not engage in any other employment except as
may be specifically approved in writing in advance by the City Manager.
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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 professional licenses, maintain membership in professional organizations
related to Public Works administration and related professional disciplines; attend workshops,
seminars and other similar activities designed to advance Employee's professional
development; and, representthe City in professional associationsand other organizations.
3. ,M The term of the Agreement shall be for a period of two (2) years,
commencing April 7, 2006, until April 6, 2010 unless terminated by either party in accordance
with the provisions set forth in Paragraph 4. The Agreement (or any renewal of this Agreement)
shall be automatically renewed, unless either party gives a written notice that the contract will
not be renewed at least six months prior to the expiration of this Agreement (or any subsequent
renewal). In the event this written notice is given, Employee shall not be entitled to severance
payas provided in Paragraph 5 herein.
4. Restaftation 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 shalt
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 maldng statements that would
negatively impact either party.
(e) Employee may choose to resign or refire 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 Paragraph4 (d) shall remain applicable.
5. Severance; Pte. If Employee is terminated by the City Manager without cause
while still willing and able to perform the duties of Public Works Director, City agrees to pay
Employee a cash payment equal to six (6) months' aggregate salary and the City's cost of six
(6) months' health insurance benefits only (no other benefits will be accrued or converted to a
cash equivalent) subject to reduction as set forth in this Paragraph 5. The severance payment
will be paid in installments coinciding with the City's regular paydays during the severance
period 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,
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Employee shall fulfill all of his obligations under this Agreement, and shall sign an
Acknowledgment and Release of Claims against the City in a form acceptable to the City
Attorney Payment under this Paragraph 5 will release City from any further obligations under
this Agreement, or any other transaction between the parties
6. 101111IN11012111110 a ONNOwt dw It go §WgIgIggo Vft CU: Employee
further represents and acknowledges That his employment as Public Works 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. SaIary,.
(a) City agrees to pay Employee $138,750 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) After one year, and subject to a satisfactory performance evaluation, a salary
increase will be granted by the City Managerto establish a ten percent (10%)
differential between the public works director and the public works
department's next highest paid executive or mid management position,
including incentive pay ("Second Year's Base Salary"). In addition, the City
Manager will have discretion to grant an additional five percent increase over
the Second Year's Base Salary.
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 Benefs 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 fifteenth year of employment (i.e_, Employee shall accrue twenty days
of vacation per year increasingfrom there as provided in the Executive Management Statement
of Benefits.) Moreover, Employee shall retain all sick leave and vacation leave he has accrued
as City Engineer but at his new pay rate. Employee will also earn and accumulate sick leave as
provided in the Executive Management Statement Cf Benefits.
9. Performance Evalustfon: The City Manager shall review and evaluate the
performance of Employee each year and set goals and objectives for the ensuing year.
10. AWwirnent: 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. Author to Work in the UnNed 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.
12. Cell PhoneNehicle: Employee will be provided with a Cell Phone for
employment related use at the City's expense on terms consistent with other Executive
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Managers. Employee will also be provided with access to the Public Works Pool Car for work
related use on an as available basis.
13. Natice: All notices required herein chaff be sent first class mail to the parties as
follows.
To CITY: Blair King, City Manager
City of Lodi
P. O. Box 3006
Lodi. CA 95241-1910
To EMPLOYEE: F. Wally Sandelin
2304 Cochran Road
Lodi, California 95240
Notice shall be deemed effectively served upon deposit in the United States mail
14. Entire Anreernent 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. 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.
CITY OF LODI, a municipal corporation EMPLOYEE
Blair King
City Manager
ATTEST:
By:
Randi Johl, J.D.
City Clerk
APPROVED AS TO FORM:
D. Stephen Schwabauer
City Attorney
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F. Waily Sandelin