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HomeMy WebLinkAboutAgenda Report - February 21, 2018 H-01TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Ratification of Employment Agreement Entered into Between City Manager Stephen Schwabauer and Fire Chief Eugene Stoddart MEETING DATE: February 21, 2018 PREPARED BY: City Manager RECOMMENDED ACTION. Ratification of employment agreement entered into between City Manager Stephen Schwabauer and Fire Chief Eugene Stoddart. BACKGROUND INFORMATION: Lodi Municipal Code Chapter 2.12.060 vests the City Manager with authority to select subordinate staff. The Fire Chief position became vacant upon the retirement of Chief Larry Rooney in September of 2017. Since that time Gene Stoddart 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 would begin the Chief's services on March 12, 2108. It is an "at -will" agreement and contains a base salary of $165,630.45 annually, six-month severance payment for termination other than cause, a one-time uniform allowance, a vehicle for work-related use, 2018 pro rata longevity payment (non -reoccurring), cash out of 2018 pro rata 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, Deputy Chief Stoddart would lose those benefits for the portion of the year that he has already worked without this one-time exception. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: This position was included in the FY 2017/18 budget at a salary and benefits of $289,621. APPROVED: Step en chwa City Manager Stephen chwabauy Manager EMPLOYMENT AGREEMENT Executive Management Exempt Service Fire Chief THIS AGREEMENT entered into on February , 2018, by and between the CITY OF LODI, a municipal corporation (hereinafter referred to as "City") and EUGENE STODDART, an individual (hereinafter referred to as "Employee"). WHEREAS, City desires to employ the services of Employee as Fire Chief; and Employee desires to serve as Fire Chief for City; and WHEREAS, City and Employee agree in writing to the terms and conditions of employment as Fire Chief; and WHEREAS, Employee and City agree and acknowledge that Employee's employment as Fire 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 Fire Chief, in accordance with the following provisions: (a) Employee shall serve as Fire Chief, and shall be responsible for managing and directing the operations of the Fire 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 Fire Chief, and shall not engage in any other employment except as may be specifically approved in writing in advance by the City Manager. 2. Start Date: Employee shall begin work as City's Fire Chief on March 12, 2018 (hereinafter referred to as "Start Date"). 3. Maintenance of Professional E pertise: To promote continued professional growth and benefit to the City, Employee shall, at City expense and consistent with budgetary constraints: maintain professional licenses and certifications, maintain membership in -1- professional organizations related to Fire 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 the severance pay referenced 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 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 the severance pay referenced in Paragraph 5 herein. (c) The parties recognize and affirm that Employee may be terminated by the City Manager without cause. In that event, and only in that 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. In such event, Employee shall not be entitled to the severance pay referenced 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 Fire 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 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, 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. Employment as Department Head is Sole Employment with City: Employee further represents and acknowledges that his employment as Fire 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. -2- 7. Salary: City agrees to pay Employee $165,630.45 in salary per year 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. 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, as amended May 16, 2012, and as they may be amended, increased or decreased, from time to time by action of the City Council, except as modified herein. These are the sole and exclusive benefits to be provided to Employee. 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. Any improvement or modification of such benefits may only be made by written instrument signed by the City Manager. 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 (Section 8.2). Moreover, Employee shall retain all sick leave and vacation leave he accrued prior to his Start Date (March 12, 2018). (b) City agrees to provide Employee with the 2018 Longevity payment set forth in the Lodi Fire Mid -Management (LFMM) Statement of Benefits, dated January 1, 2015 — December 31, 2017, on a pro -rata basis for the period January 1, 2018 to his Start Date. Employee will not be eligible for any additional Longevity payment while employed as the Fire Chief. City also agrees to allow Employee to cash out his 2018 Holiday Leave bank on a pro - rata basis for the period January 1, 2018 to his Start Date. Holiday Leave accrued by Employee on or after his Start Date will be governed by the Executive Management Statement of Benefits. 9. Use of City Vehicle: City requires that Employee have transportation readily available for his use during his employment with City, to that end, 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 Fire 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. 3 13. Cell Phone and Uniform Allowance: Employee will be provided with a Cell Phone for employment related use at the City's expense or a monthly stipend, at the Employee's choice, on terms consistent with other Executive Managers and pursuant to City policy. Employee will also be provided with a one-time uniform allowance of $950.00 that will not recur in any subsequent renewals of this Agreement. follows: 14. Notice: All notices required herein shall be sent first class mail to the parties as To CITY: To EMPLOYEE: Stephen Schwabauer, City Manager City of Lodi P. O. Box 3006 Lodi, CA 95241-1910 Eugene Stoddart c/o Lodi Fire Administration 210 W. Elm Street Lodi, CA 95240 Notice shall be deemed effectively served upon deposit in the United States mail. 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. CITY OF LODI, a municipal corporation EMPLOYEE By Stephen Schwabauer Eugene Stoddart City Manager ATTEST: APPROVED AS TO FORM By: By: Jennifer M. Ferraiolo Janice D. Magdich City Clerk City Attorney -4-