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HomeMy WebLinkAboutAgenda Report - September 4, 1985 (62)CITY MANAGER EMPLOYMFN'P A(P..,_,. City Manager Peterson presented for Council review a proposed employment agreement which sets forth certain terms and conditions of employment of the City Manager. RFS. No. 85-120 Follcwing discussion, on motion of Council Member Pinkerton, Snider second, Council adopted Resolution No. 85-120 approving an Agreement concerning the employment of the City Manager and authorizing the Mayor and City Clerk to execute the subject Agreement on behalf of the City. Further, City Manager Peterson was directed to formulate a policy statement for the Council which would allow for annual performance evaluations and review by the City Council of the City Manager, City Attorney, and City Clerk. Council also requested that the poilicy statement include Council's authority to r est from the City Manager the performance evalua `ods of Department Heads as prepared by the City Manager. y s� sF'b r� r. .L .c' tt h�MiC. Yl t .yt..,,t, 9n TO: THE CITY COUNCIL DATE FROM: THE CITY MANAGER'S OFFICE SUBJECT: CITY MANAGER EMI-LO174ENT AGREEMENT 4, 1985 P,BCOVIAEVDED ACTION: That the City Council review the attached . . . . . . . . . . agreement concerning the employment of the City Manager and take action as deemed appropriate. BACKGROUND INFORMATION: The attached memo (Exhibit A), distributed to the City Council last month, discusses the proposed employment agreement which sets forth certain terms and conditions of employment of the City Manager. The agreement (Exhibit B) was discussed briefly at a recent shirtsleeve session. I will be pleased to discuss this matter at 'Wednesday night's meeting and answer any questions Councilmen-bers may have. Respec tfully suhnitted, Thomas A. Peterson City Manager TAP:jj CITY COUNCIL DAVID M. HINCHMAN, Mayor FRED M. REID Mayor Pro Tempore EVELYN M. OLSON JAMES W. PINKERTON. Jr. JOHN R. (Randy) SNIDER nl EXHIBIT A CITE' OF LORI CITY HALL, 221 WEST PINE STREET CALL BOX 3GG6 LODI, CALIFORNIA 95241-1910 (209) 334-5634 July 22, 1985 To: The Honorable Mayor and Members of the City Council 91?rom: City Manager Subject: Employment Agreement THOMAS A. PETERSON City Manager ALICE M. REIMCHE City Clerk RONALD M. STEIN City Attorney Shortly after my appointment to the position of City Manager, then -Mayor Randy Snider suggested that we develop an employment agreement to cover the basic aspects of our relationship. Such agreements are becoming quite common in the city management career field and were discussed at the recent Mayors and Councilmembers Executive Forum last week in Monterey. Utilizing several existing employment agreements in place in other cities, and with the help of City Attorney Ron Stein, I have assembled the attached agreement for the City Council's review. The most significant point is that this is an agreement, not a contract. Specifically, paragraph 14b (page 3) reads: "Nothing in this agreement shall prevent, limit or otherwise interfere with the rights of the City Council to terminate the services of EMPLOYEE" (in this case, the City Manager). City Managers have traditionally shunned fixed -term contracts, except in cases of extreme political instability, preferring to remain "at pleasure" appointees. I believe this status (at pleasure) is the cornerstone of Council -Manager relations. The agreement sets forth a number of other issues discussed by Councilmember Snider and me. The paragraph setting forth severance pay merits note. That time period which is becoming most common is six months, which was also disc;issed at the Monterey meeting. However, some existing agreements provide for shorter periods (three and four months; for example), while in rare cases, others provide for nine months. This latter time period is not in common use-, according to those on the panel which addressed this issue. The City Attorney has advised me that this matter may be appropriately discussed in closed sesion. While there is no sense of urgency here from a time standpoint, it would be in order, if the Council so chooses, to take action on this at a meeting in the near future. I look forward to discussing this agreement with Councilmembers at your convenience. A G R E E M E N T THIS AGREEMENT made and entered into this day of , 1985, by and between the -CT'I'Y— OF LODI , CA1TPD NTA— a municipal corporation, hereinafter called "CITY", and THOMAS A. PETERSON, hereinafter called "EMPLOYEE", both of whom understand as follows: 1. General City hereby agrees to continue to employ F24PLOYEE as City Manager of CITY to perform the functions and duties specified in Article II of the City of Lodi Municipal Code, and such other functions and duties as the City Council shall from time to time assign to him. 2. Base Compensation CITY agrees to pay EMPLOYEE a base salary of $56,232 per year, which sum may be adjusted from time to time by action of the City Council, payable in twenty-six (26) equal installments at the same time as other City. employees are generally paid. Exhibit "B" so W I T N E S S E T H: WHEREAS, EMPLOYEE has been and is now engaged in the discharge of his duties as City Manager; and 1 i WHEREAS, EMPLOYEE has the duty to exercise administrative supervision and control over all departments of CITY and to act as appointing authority of all department heads as provided in Title 11, Section 2.12.060, subsections (B) and (C) of the City of Lodi Municipal Code; and WHEREAS, EMPLOYEE has the duty and herein commits to devote his full time and energies in the best interest of CITY, and to act in accordance with the duties and responsibilities of =` the position of City Manager as set forth in Title 2, Chapter r 2.12 of the Lodi Municipal Code; and WHEREAS, it is the desire of CITY to (1) retain the services of EMPLOYEE and to provide inducement for him to remain in such employment; and (2) to make possible full work productivity by assuring EMPLOYEE'S morale and peace of mind with respect to future security; and (3) to provide a just means for terminating EMPLOYEE'S services at such time as he may be unable to discharge fully his duties due to age, disability, or because CITY otherwise desires to terminate his employ; NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. General City hereby agrees to continue to employ F24PLOYEE as City Manager of CITY to perform the functions and duties specified in Article II of the City of Lodi Municipal Code, and such other functions and duties as the City Council shall from time to time assign to him. 2. Base Compensation CITY agrees to pay EMPLOYEE a base salary of $56,232 per year, which sum may be adjusted from time to time by action of the City Council, payable in twenty-six (26) equal installments at the same time as other City. employees are generally paid. Exhibit "B" so 3. Deferred Compensation In addition to said base compensation, CITY agrees to deposit annually an amount equal up to three (3) percent of EMPLOYEE'S base compensation in a deferred compensation plan approved by CITY on behalf of EMPLOYEE, provided an equal amount is deposited by EMPLOYEE. 4. Automobile To assist and facilitate EMPLOYEE'S duties and responsibuilities on behalf of CITY, CITY agrees to provide EMPLOYEE with an automobile of a type and style reasonably appropriate to EMPLOYEE's office. All expenses for the purchase, lease, maintenance, insurance, fuel and the like shall be paid by CITY. 5. Dues, Subscriptions, MemberFhips CITY shall pay such professional dues, subscriptions and memberships in such organizations necessary for EMPLOYEE to maintain professional relationships in appropriate national, regional, state and local associations and organizations necessary and desirable for his continued professional growth and advancement and benefit to CITY. 6. General Expenses EMPLOYEE shall be permitted to attend conferences, seminars, and/or other such meetings, the reasonable cost of which shall be paid by CITY. 7. Vacation Leave EMPLOYEE shall be granted paid vacation leave at the same rate of accumulation granted all other City employees. Upon termination or resignation of employment, EMPLOYEE or those entitled to his estate, shall receive a lump sum payment for unused or accumulated vacation time to his credit at his payrate as of the date of termination. 8. Sick Leave EMPLOYEE shall be granted sick leave at the same rate of accumulation granted all other City employees, except that EMPLOYEE shall be credited with 12 days sick leave effective April 1, 1985. EMPLOYEE shall earn no additional sick leave for the following twelve (12) months, after which EMPLOYEE shall earn sick leave at the same rate of accumulation granted all other City employees. -2- 9. Administrative Leave CITY agrees to grant EMPLOYEE eighty (80) hours of administrative leave per calendar year, forty (40) hours of which may be taken in pay. 10. Holidays EMPLOYEE shall receive the same number of paid holidays granted all other City employees. 11. Retirement CITY is a full member of the Public Employees Retirement System (PERS) to which CITY agrees to contribute to EMPLOYEE'S retirement account the total amount required by it and EMPLOYEE'S contribution of seven (7) percent to the membership contract with PERS for each pay period. 12. Health Insurance CITY agrees to provide EMPLOYEE and his dependents with medical, dental, vision, and long terra disability insurance at no premium cost to EMPLOYEE. The amount of any deductible or co-insurance under CITY'S insurance plan shall be paid by EMPLOYEE. 13. Severance Pay In the event EMPLOYEE is terminated by City Council during such time that EMPLOYEE is willing and able to perform the functions and duties of City Manager, then, in that event, CITY agrees to pay EMPLOYEE a lump sum cash payment equal to six (6) months' aggregate salary. However, if EMPLOYEE is terminated because of his conviction of any illegal act involving personal gain to him, then, in that event, CITY shall have no obligation to pay the aggregate severance stun provided in this section. 14. Employment Term a. EMPLOYEE shall serve as an "at pleasure" appointee of the City Council. b. Nothing in this agreement shall prevent, limit or otherwise interfere with the rights of the City Council to terminate the services of EMPLOYEE. c. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of EMPLOYEE to resign at any time from his position of City Manager, subject only to the provisions set forth in Section 15 hereof. -3- -� s 1 15. Other Terms and Conditions All provisions of the City of Lodi Municipal Code, official policies and regulations and rules of CITY relating to vacation, retirement system contributions, holidays and other fringe benefits and working conditions as they.now exist or hereafter may be amended, also shall apply to EMPLOYEE as they would to other management employees of CITY in addition to said benefits set out herein. 17. Severability If any provision, or any portion of any provision hereof, is held to be unconstitutional, invalid, or unenforceable, the remainder of this agreement, or portion hereof, shall be deemed severable and shall not be affected, but shall remain in full force and effect. 18. Execution IN WITNESS WHEREOF, the City Council of the City of Lodi has caused this agreement to be signed and executed in its behalf by the Mayor, and EMPLOYEE has signed and executed this agreement as of the day and year first above written. EMPLOYEE CITY By: By: 1 i t y �e r -- -- al9t`yo r--- -- - ATTEST: Ui Ty-CTe rrR-"-__ __�-- APPROVED AS TO FORM: C -3—U Attorrnney`� - -4- 15. Resignation In the event EMPLOYEE terminates this agreement by voluntary resignation of his position with CITY, EMPLOYEE shall not be entitled to severance pay otherwise provided j in Section 13 herein. In the event EMPLOYEE voluntarily resigns his position with CITY, he shall give CITY at least forty-five days advance written notice. He shall be entitled to -all earned salary and in -lieu vacation leave. 15. Other Terms and Conditions All provisions of the City of Lodi Municipal Code, official policies and regulations and rules of CITY relating to vacation, retirement system contributions, holidays and other fringe benefits and working conditions as they.now exist or hereafter may be amended, also shall apply to EMPLOYEE as they would to other management employees of CITY in addition to said benefits set out herein. 17. Severability If any provision, or any portion of any provision hereof, is held to be unconstitutional, invalid, or unenforceable, the remainder of this agreement, or portion hereof, shall be deemed severable and shall not be affected, but shall remain in full force and effect. 18. Execution IN WITNESS WHEREOF, the City Council of the City of Lodi has caused this agreement to be signed and executed in its behalf by the Mayor, and EMPLOYEE has signed and executed this agreement as of the day and year first above written. EMPLOYEE CITY By: By: 1 i t y �e r -- -- al9t`yo r--- -- - ATTEST: Ui Ty-CTe rrR-"-__ __�-- APPROVED AS TO FORM: C -3—U Attorrnney`� - -4- 7 RESOLUTION NO. 85-120 RESOLVED, that the City Council of the City of Lodi does hereby approve the IInTplcyment Agreement with City Manager The mas A. Peterson, dated September 4, 1985, a copy of which is attached hereto, shown as Exhibit "A" and thereby made a part hereof. BE IT FURTHER RESOLVED, that the City Council of the City of Lodi does hereby authorize the Mayor and City Clerk to execute the subject agent on behalf of the City. Dated: September 4, 1985 I hereby certify that Resolution No. 85-120 was passed and adopted City Council of the City of Lodi in a Regular Meeting held September 4, 1985 by the following vote: AYES: Council Members - Olson, Pinkerton, Reid, Snider, and Hinchman (Mayor) NOES: Council Menbers - None ABS EW,: Council Members - None ABSTAIN: Council Members - None ALICE M. REIY(M City Clerk