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HomeMy WebLinkAboutAgenda Report - December 3, 2008 E-05` 5AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Ratification of Employment Agreement Entered into Between City Manager Blair King and Deputy City Managerllnternal Services DirectorJordan V. Ayers MEETING DATE PREPARED BY: December 3,2008 City Manager RECOMMENDED ACTION: Adopt Resolution ratifying the terms of the employment agreement entered into between City Manager and Deputy City Manager/Internal Services Director Jordan V. Ayers. BACKGROUND INFORMATION: Lodi Municipal Code Section 2.12.060 vests with the City Manager the power to select subordinate staff. The Deputy City Manager/Internal Services Director position has been vacant since July 3, 2008 with the departure of James Krueger. As a result of an open and competitive selection process, the City Manager has selected Jordan Ayers to fill the vacancy created with Mr. Krueger's departure. The City Manager wishes to provide Mr. Ayers with certain terms and conditions related to employment that extend beyond the Manager's authority and therefore require ratification by the City Council. The proposed agreement is an "at -will" agreement and contains a base salary of $145,000 annually, six month severance paymentfor termination other than cause, a one-time 15 day sick and vacation leave bank that will expire within 12 months, vacation accrual at 15 days per year, and benefits similar to what other executive management and regular City employees enjoy. FISCAL IMPACT: Although this position has been vacant for approximatelyfive and a half months, it has been budgeted for a full 12 months at approximately $125,000. Blair King City Manager APPROVED: Blair Ki y Manager 13=�Y�1���L�1i•li•L���Z�Z:��! A RESOLUTION OF THE LODI CITY COUNCIL RATIFYINGTHE EMPLOYMENT AGREEMENT BETWEEN THE CITY MANAGER AND DEPUTY CITY MANAGER/INTERNAL SERVICES DIRECTOR JORDAN V. AYERS NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the Employment Agreement entered into between the City Manager and Deputy City Manager/Internal Services Director Jordan V. Ayers, as shown on Exhibit A attached. Date: December 3,2008 I hereby certify that Resolution No. 2008-234 was passed and adopted by the Lodi City Council in a regular meeting held December 3, 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 &JOHL City Clerk 2008-234 Iy/:40111111I1 EMPLOYMENT AGREEMENT ExacutWe Management Exempt Service Deputy City Managerlinternal Services Director THtS AGREEMENT is entered Into on , 2008, by and Between the CITY OF LODI, a municipal corporation (hereinafter referred to as "City") and Jordan V. Ayers, an individual (hereinafter referred to as "Employee") WHEREAS, City desires to employ the services of Employee as Deputy City Manager/ Internal Services Director; and WHEREAS, Employee desires to serve as Deputy City Managerlinternal Services Directorfor the City beginning December 15,2008; and WHEREAS, City and Employee agree in writing to the terms and conditions of employment as Deputy City Manager/ Internal Services Director; and WHEREAS, Employee and City agree and acknowledge that Employee's employment as Deputy City Managerllnternal Services 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 Deputy City Managed internal Services Director, in accordance with the following provisions: (a) Employee shell serve as Deputy City Manager/ Internal Services Director, and shall be responsible for managing and directing the operations of the Budget, Financial Services, Human Resources and Information Systems Divisions of the City Manager's Office. (b) Employee shell 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 shell not engage in any activity which is cr may became 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 cf this Agreement. Employee shall dedicate his full energies and qualifications to his employment as Deputy City manager/ Internal Services Director, and shall not engage in any other employment except as may be specifically approved in writing in advance by the City Manager. 2. To promote continued professional growth and berveflit to the City, Et a , at City expense and consistent with budgetary constraints maintain professional licenses and certifications, maintain membership in professional organizations related to finance and 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. RINEF7777-77771 (a) Resignation — in the event Employee terminates this agreement by voluntary resignation of his position with the City, Employee shall not be entitled to severance pay otherwise provided in Section 5 of this contract. In the event Employee voluntarily resigns his position with City, he shall give City at least forty-five (45) days advance written notice and shall be entitled to all earned salary and vacation leave (b) Termination & Removal —The parties recognize and affirm that Employee may be terminated by the City Manager with cause, which shali mean gross Insubordination, incapacity, dereliction of duty, conviction d any felony or any 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 Managershall 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 professionaNsm, 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. 4. EMPLOY1111ENT TERM: (a) Employee is an "at will" employee and shall serve at the pleasure of the i City Manager. (b) Except as provided in Section 3, nothing in this Agreement shall prevent, limit or otherwise inteffere with the rights of the City Manager to terminate the services of Employee. (c) Except as provided in Section 3 of this Agreement, nothing in this Agreement shall prevent, limit or otherwise interfere with the right of employee to resign at any time from his position as Deputy City Manager/internal Services Director. 5. Severance Nw; If Employee is terminated by the City Manager without cause while stili willing and able to parlbrin the duties of Deputy City Managed Internal Services Director, City agrees to pay Employee cash payment equal to six (6),nonths' aggregate salary and the City's cost of six (6) months' health insurance benefits (no other benefits will be accrued or converted to a cash equivalent) subject to reduction as set forth in this Paragraph 5. The -2- severance payment will be paid in installments coinciding with the City's regular paydays during the severance period and subject to customary w(thholdings. In the event Employee retains new employment during the six-month severance period, any remaining severance paymentwill be forfeited as of the date Employee begins his new employment. To be eligible for such severance pay, Employee shall fall 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. Ems4aymni as 113madment Hwd la Sote Emolo.yu nt vWth Cky. Employee further represents and acknowledges that his employment as Deputy City Managed Intemal Services 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. • City agrees do pay EMpioyee $145,000 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. In accordance with Section 9 of this contract, the City Manager may grant an increase subject to performance and city resources. 8. Benefits The City shall provide Employee the same benefits as provided to management employees in accordancewith the terms of the Executive Management Statement of Benefits dated 1998 and as they may be amended, increased or decreased, except as modified herein. Except as provided 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: 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 15 days per year, equivalent to six years of service, future vacation leave shall be earned according to the Executive Management Statement of Benefits, wilh the sixth year of service equal the 12"', the ninth year equal to the 15°1 year and so on. In addition, Employee shall be granted a one-time 15 day vacation/sick leave Bank that can only be used during Employee's first 12 months d employment. This Bank shall expire upon Employee's first anniversary with the City. During Employee's first year regular vacation will be accrued on top of the vacation bank. Employee may participate in City's deferred compensation program. City contributes up to a maximum of three percent (3%)of base salary. 9. Performance Evaluation: The City Manager shall review and evatuate the performance of Employee each year and set goals and objectives for the ensuing year. Such review and evaluation shall be in accordancewith specific criteria developed in the performance plan in consultation with Employee and the City Manager. 10. l 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. bgftft I W0% in f Ug" • Employee represents, under penalty of perjury, that he is authorized to work in the United States. In accordance with C274A (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 Phone: Employee will be provided with a Cell Phone for employment related use at the City's expense on terms consistent with other Executive Managers. -3- follows 13. o ce: Ail notices required herein shall be sent first cuss mail to the parties as To CITY Blair King, City Manager City of Lodi P. Q Box 3006 Lodi, CA 05241-1910 To EMPLOYEE: Jordan V. Ayers 2448 E I Burlap Cr Rancho Cordova, CA 96670 Noticeshall be deemed effectively served upon deposit in the United States mail. 14, Entire Agrsernent: 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 mayonly be amended by written instrument signed by Employee and the City Manager and specifically approved by the City Council in open session 15. §AX&UdMft 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 Blair King City Manager Attest: By, fundi Johi. J.D. City Clerk APPROVED AS TO FORM: D. Stephen Schwabauer City Attorney 4 EMPLOYEE