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HomeMy WebLinkAboutAgenda Report - October 21, 2015 I-044 AGENDA ITEM dM &1& CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Ratification of Employment Agreement Entered into Between City Manager Stephen Schwabauer and Chief of Police Tod B. Patterson MEETING DATE: October 21, 2015 PREPARED BY: City Manager RECOMMENDED ACTION: Ratification of employment agreement entered into between City Manager Stephen Schwabauer and Chief of Police Tod B. Patterson. BACKGROUND INFORMATION: Lodi Municipal Code Chapter 2.12.060 vests the City Manager with authority to select subordinate staff. The Chief of Police position became vacant upon the retirement of Chief Mark Helms in June 2015. Since that time Tod B. Patterson has served as Interim Chief. The City Manager wishes to provide terms and conditions related to employment that extend beyond the Manager's authority and therefore require ratification by the City Council. The agreement is an "at -will" agreement and contains a base salary of $169,950 annually, six-month severance payment for termination other than cause, a one-time uniform allowance consistent with police mid -managers, a vehicle for work-related use, 2015 longevity payment (non -reoccurring), cash out of 2015 holiday leave bank (non -reoccurring), and benefits similar to what other City executive managers receive under the City's Executive Management Statement of Benefits. Executive benefits do not normally include longevity pay and holiday cash out and the Chief's contract will not include them going forward. However, Captain Patterson would lose those benefits for the majority of the year that he has already worked without this one-time exception. FISCAL IMPACT Ratification of this employment agreement will result in a savings of $5898.75 in FY 2015/16. FUNDING AVAILABLE: This position was included in the FY 2015/16 budget at a salary cost of $175,848.75. APPROVED: Step en a a K City Manager Bauer,,. CiN Manager EMPLOYMENT AGREEMENT Executive Management Exempt Service Police Chief THIS AGREEMENT entered into on October 21, 2015, by and between the CITY OF LODI, a municipal corporation (hereinafter referred to as "City") and Tod B. Patterson, an individual (hereinafter referred to as "Employee"). WHEREAS, Employee desires to be employed as Police Chief and City desires to employ the services of Employee as Police Chief; and WHEREAS, City and Employee agree in writing to the terms and conditions of employment as Police Chief; and WHEREAS, Employee and City agree and acknowledge that Employee's employment as Police Chief 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 Police Chief, in accordance with the following provisions: (a) Employee shall serve as Police Chief, and shall be responsible for managing and directing the operations of the Lodi Police 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 Police Chief, and shall not engage in any other employment except as set forth in this agreement or as may be specifically approved in writing in advance by the City Manager. 2. Start Date: Employee shall begin work as Police Chief on October 26, 2015. 3. 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 police 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. 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. In such event, Employee shall not be entitled to severance pay as provided in Paragraph 5 herein. 5. Severance Pay: If Employee is terminated by the City Manager without cause while still willing and able to perform the duties of Police Chief, 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 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 Wa 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 in a form acceptable to the City Attorney. Payment under this paragraph will release City from any further obligations under this Agreement, or any other transaction between the parties. 6. Em to Ment as Department Head is Sole Employment with City: Employee further represents and acknowledges that his employment as Police Chief 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. Employee is authorized to continue his pursuits as a college instructor as long as that activity does not cause a breach of this Agreement or create a conflict of interest under California law. 7. Salary: (a) City agrees to pay Employee $14,162.50 in salary per month for his services, payable in installments at the same time as other employees of the City are paid and subject to customary withholding. The City may reduce base salary compensation or other financial benefits of Employee as part of general salary reduction in pay among and common to all employees. In addition, Employee shall pay nine percent (employee's share) of his salary towards the California Public Employees Retirement system benefit. (b) At any time, a minimum of a ten percent (10%) salary differential shall exist between the Police Chief and the Police Department's next highest paid executive or mid -management position, including incentive pay. In addition, the City Manager will have discretion to grant up to an additional three percent (3%) increase in salary after one year, subject to a satisfactory performance evaluation. The Police Chief will receive additional two percent (2%) adjustments in the first pay periods of calendar years 2016 and 2017, respectively, as set forth in Council Resolution 2015-73. 8. Benefits: (a) 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. Employee will be provided with a one-time uniform allowance of $950.00 that will not recur in any subsequent renewals of this Agreement. Employee's vacation leave shall be calculated based upon his actual years of service with the City, increasing from there as provided in the Executive Management Statement of Benefits. Moreover, Employee shall retain all sick leave and vacation leave he accrued prior to his start date, October 26, 2015, and is entitled to sick leave conversion based upon his initial date of employment with the City. (b) The City agrees to provide Employee with the 2015 Longevity payment in the amount of $3,000, to be paid in November 2015. The Employee will not -3- be eligible for any additional Longevity payment while employed as the Police Chief. The City also agrees to allow the Employee to cash out his 2015 Holiday Leave bank in January 2016. Holiday Leave accrued by Employee on or after January 1, 2016, will be governed by the Executive Management Statement of Benefits. (c) The foregoing benefits 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, life insurance and deferred compensation. 9. Vehicle Use: The City requires that Employee have transportation readily available for his use during his employment with City, and, to the end of assuring that Employee has a vehicle available, Employee shall be assigned an appropriate vehicle equipped with necessary safety equipment and communications devices. Due to his on-call status, Employee shall be allowed use of said vehicle for personal use up to three hours away from the Lodi Police Department if necessary to accommodate a call to duty. 10. 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. 11. 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. 12. 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. 13. Notice: All notices required herein shall be sent first class mail to the parties as follows: To CITY: City of Lodi Attn: City Manager's Office P. O. Box 3006 Lodi, CA 95241-1910 To EMPLOYEE: Tod B. Patterson c/o Lodi Police Department 215 W. Elm Street Lodi, CA 95240 -4- Notice shall be deemed effectively served upon deposit in the United States mail. Either party may change the "Notice" address by notifying the other party in writing of such change. 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. 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: JENNIFER M. FERRAIOLO City Clerk APPROVED AS TO FORM: JANICE D. MAGDICH j City Attorney EMPLOYEE TOD B. PATTERSON CITY OF LODI, a municipal corporation in -5- STEPHEN SCHWABAUER City Manager