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HomeMy WebLinkAboutContract 1543 ORIGINAL CITY MANAGER EMPLOYMENT AGREEMENT Between City of Cathedral City and Gary "Andy" Hall This Employment Agreement is entered into as of December 28, 2012, by and between the City of Cathedral City, California, a municipal corporation (the "City"), and Gary Andrew Hall, an individual ("Employee"), with respect to Employee's employment as City Manager for the City. (Employee and the City are collectively referred to as the "Parties"). RECITALS WHEREAS, the City operates under the City Manager form of government pursuant to Government code Sections 34851 et seq.; and, WHEREAS, the City Manager holds office at the pleasure of the City Council pursuant to Government Code Section 36506; and WHEREAS, the City requires the services of a City Manager; and WHEREAS, the City desires to appoint Employee as the City Manager of the City; and WHEREAS, Employee has the necessary education, experience, skills and expertise to serve as the City Manager for the City; WHEREAS, the parties hereto acknowledge that under both California law and the Municipal Code of Cathedral City, the City Manager is the Chief Executive Officer of the City and is solely responsible for the operations and personnel of the City; and WHEREAS, it is agreed that City Council members will deal with administrative services of the City through the City Manager; and WHEREAS, it is agreed the City Manager shall take his orders and instructions from the City Council only when sitting in a duly convened meeting of the City Council and no individual Councilmember shall give any orders or instructions to the City Manager. NOW THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows regarding the terms and conditions of employment between the City and Employee: TERMS AND CONDITIONS 1. Term of Employment. The initial term of this Agreement is for three (3) years, commencing December 28, 2012, and ending on December 27, 2015, unless terminated earlier in accordance with the terms of this Agreement. At any point prior to the expiration of this Agreement, the parties may mutually agree in writing to extend the term of the Agreement. Thereafter, this Agreement shall automatically renew from year to year on the same terms and conditions described herein unless mutually agreed upon in writing between the Parties. 2. Obligations of the City. The City shall provide Employee with the compensation and benefits specified in this Agreement. 3. Duties and Obligations of Employee. Employee shall perform all duties of the City Manager as described in the Cathedral City Municipal Code Section 2.08 and any other related duties as may be prescribed by the City Council, including but not limited to serving as the Executive Director of the Cathedral City Downtown Foundation, Cathedral City Public Finance Authority, and the Successor Agency to the Redevelopment Agency of Cathedral City. a. Employee shall act in the best interests of the City at all times and shall perform all of his duties in a competent and professional manner. b. Employee acknowledges that the position of City Manager is a full-time position and agrees to devote all necessary time and attention to City business during the term of this Agreement. Employee shall not engage in any other employment, whether for compensation or otherwise, without the prior written consent of the City Council. 4. Employee Compensation. The City agrees to provide Employee the following salary and benefits: a. Salary. Employee shall be paid an annual base salary of One hundred and eighty- two thousand one hundred-ninety dollars ($182,190). Payments shall be made in accordance with the City's normal payroll practices and procedures. Employee's salary may be adjusted at the sole discretion of the City Council. Any increase or decrease is not effective until the Parties draft and sign an amendment to this Agreement that states the new annual base salary and the effective date of that new salary which is adopted by the City Council at a duly noticed public meeting. The parties acknowledge that Employee possesses a Master's Degree and that he is therefore entitled to an educational stipend equal to five-percent (5%) of base salary pursuant to the Executive, Administrative, Professional, and Confidential Employee Policy, which is subject to change at the discretion of the City Council. b. Insurance/Ca1PERS. Medical, Dental, Vision, Short Term Disability, Long Term Disability, Life Insurance and participation in the Ca1PERS retirement system shall be provided to Employee on the same terms and conditions as described in Article 11 of the of Executive, Administrative, Professional, and Confidential Employee Policy, which is subject to change in the discretion of the City Council. c. Deferred Compensation. Employee shall be eligible to participate in a joint contribution deferred compensation (457) plan selected by Employee from providers offered by the City. If Employee contributes at least $1,200.00 or more per year to the plan, then the City will make a matching contribution to the plan in the same year equal to $2,400.00. d. Vacation Leave. Employee shall be provided with an initial 200 hours of vacation leave upon commencement of employment. Thereafter, Employee shall accrue a total of 10.15 vacation hours per pay period during each year of this Agreement for a total of 264 hours per calendar year. Employee shall be eligible to carry over and cash out his accrued but 2 unused vacation time pursuant to Article 6.6 of the Executive, Administrative, Professional and Confidential Employee Policy. e. Sick Leave. Employee shall be provided with and initial 200 hours of sick leave upon commencement of employment pursuant to this Agreement. Thereafter, Employee shall accrue a total of 3.69 hours of sick leave per pay up to a total of 96 hours per year. Employee shall be able to carry over and cash out his accrued but unused sick leave time pursuant to Article 6.12 of the Executive, Administrative, Professional, and Confidential Employee Policy. f. Holidays. Employee shall be entitled to receive the same paid holidays as other City employees. Employee will not be required to work on paid holidays unless required by the City Council or otherwise necessitated by the demands of City business. g. Car Allowance. Employee shall be paid a car allowance of $500.00 per month and will be entitled to reimbursement for permitted travel expenses in accordance with the City's Travel and Expenditure Reimbursement Policy. Employee is required to provide proof of vehicle insurance prior to being paid the car allowance and shall maintain appropriate vehicle insurance during the entire term of the Agreement in order to be eligible to continue receiving the car allowance. Employee may utilize a City pool car during the conduction of City business, if one is available. h. Technology Stipend. Employee will be provided with a $150 monthly Technology Stipend in lieu of City paid cell phone and iPad. i. Taxes. Employee shall be responsible for any and all federal, state, local or other taxes resulting from any compensation or benefits provided to him by the City. The City shall withhold from any compensation or benefits provided under this Agreement all federal, state, local or other taxes as may be required pursuant to law or governmental regulation or ruling. j. Reimbursement of Expenses. Employee shall be entitled to reimbursement for transportation, business and travel expenses incurred in the performance of his duties as City Manager, subject to the City's discretion and approval and consistent with the City's Travel and Expenditure reimbursement policy. Employee shall submit to the City, on a monthly basis, an itemized account of all such expenditures, setting forth the date, the purpose for which each expenditure was incurred, and the amounts thereof, together with such receipts showing the payments. 5. Performance Evaluation. The City Council, in conjunction with Employee, may develop annual goals, objectives, and performance standards for Employee for the benefit of the City and in furtherance of the City's policy objectives. The City Council may, in its sole discretion, review and evaluate Employee's performance on an annual or other basis, whether more or less frequently. 6. Bonding. City shall bear the full cost of any fidelity or other bonds required of Employee by law. 3 • 7. Indemnification. City shall defend and indemnify Employee against any claim(s) on the same terms and conditions, and in the same manner prescribed by the Government Claims Act, Government Code Sec. 810, et seq. 8. Professional Associations, Memberships and Subscriptions. The parties agree that Employee will actively participate in such state, regional and local professional organizations and subscribe to such professional publications as may be reasonably necessary in carrying out his duties as City Manager and in order to maintain and enhance his professional skills. The City will budget and pay for such dues and educational courses required to maintain certain professional certifications, on behalf of the Employee, as may be deemed appropriate by the City Council. 9. Termination of Employment. The City employs Employee to serve as its City Manager, at the pleasure of the City, upon the terms and conditions set forth in this Agreement. a. Resignation. Employee may resign from employment with the City by providing written notice to the governing body of the City at least 45 calendar days prior to his final day of employment. If employee provides less than 45 calendar days' notice of his resignation, then he shall receive a reduced disbursement of accrued sick pay under this Agreement, equivalent to the the number of work days below the 45 calendar day notice, or any other City policies and will only be entitled to receive compensation that is required by law to be paid to an employee upon termination of employment. The parties may mutually agree in writing to allow Employee to resign with less than 45 calendar days' notice. b. Involuntary Termination. Employee is an "at-will" employee who serves at the pleasure of the City Council and is subject to dismissal without any right of notice or hearing except that the City shall notify Employee in writing of his termination. Moreover, pursuant to Cathedral City Municipal Code section 2.08.170, the terms of this Agreement shall supersede any provisions for termination of the City Manager contained in Chapter 2.08 of the Cathedral City Municipal Code. The Term of this Agreement as stated in Section 1 above shall not impede or diminish the right of the City Council to terminate the Employee at any time during said Term (or successor Term). The sole purpose of stating an Agreement Term is to define the compensation of the City Manager during the period of time during which the Council has exercised its sole discretion in employing Employee as City Manager. i. Termination without Cause. Following a minimum of 30 days' up to a maximum of 60 days' notice to terminate by the City, without cause, Employee will be carried on the City's payroll, and Employee shall be entitled to receive his base salary and hospital, medical, dental and other insurance coverage according to provisions existing at the time of notice of termination for an additional six months or until Employee commences employment with another employer, whichever first occurs. The City Council may place Employee on administrative leave during this period. Following written notice of termination, Employee will not accrue any vacation, sick, floating time, or other leave and shall not be paid any other compensation under this Agreement, including but not limited to the aforementioned car allowance and matching contribution to the Employee's 457 plan. Employee will be reimbursed for any bona fide City business expenses incurred prior to the written notice of termination 4 pursuant to the terms of this Agreement, but shall not incur nor be entitled to reimbursement for any expenses incurred following receipt of written notice of termination. In addition, if the City receives any inquiries by prospective employers during this period, then the City will affirm Employee's continued employment with the City. Nothing in this Agreement shall limit the City Council's authority to appoint a new City Manager on either an acting or permanent basis following written notice of termination to Employee. ii. Prohibition on Termination without Cause within Ninety days after City Council Election. Notwithstanding any other terms of this Agreement, the City Manager shall not be given notice of termination without cause less than ninety (90) days following a general municipal election in which a new member of the City Council is elected. The intent of this provision is to allow any newly elected member of the City Council or a reorganized City Council to observe the actions and ability of the City Manager in the performance of his duties. After ninety (90) days, no further restriction shall exist upon the City Council's ability to terminate Employee without cause. iii. Termination with Cause. If Employee is terminated for any of the following reasons, then the City Council shall provide the Employee with written notice of termination that specifies the reason(s) for the termination and the City shall not be obligated to pay Employee any severance pay under this Agreement or any City policies and will only be entitled to that compensation that is required by law to be paid to an employee upon termination of employment: i. Violation of administrative policies and procedures; ii. Theft of City property; iii. Insubordination; iv. Conviction of a felony, or conviction of a misdemeanor relating to Employee's fitness to perform assigned duties; v. Unauthorized or excessive absences from the City; vi. Failure to maintain satisfactory working relationships with other employees or the public; vii. Improper use of City funds; viii. Unauthorized use of City property; ix. Any act of moral turpitude or dishonesty; x. Other failure of good behavior either during or outside of employment such that Employee's conduct causes discredit to the City; xi. Violation of the Political Reform Act; xii. Violation of Government Code Section 1090; and/or, xiii. "Willful misconduct" as defined in Section 2.08.160 of the Cathedral City Municipal Code. 10. Suspension/Administrative Leave. Except as otherwise provided by this Agreement, Employee may be suspended with full pay and benefits at any time and for any reason during the Term of this Agreement at the direction of the majority of City Council. 11. Confidential Information. Employee acknowledges and stipulates that in the performance of his duties, the City discloses and entrusts him with certain confidential or proprietary information. Employee agrees not to directly or indirectly disclose or use at any time any such information, whether it be in the form of records, lists, data, personnel information, 5 drawings, reports, or otherwise, of a business or technical nature, which was acquired or viewed by Employee during Employee's relationship with the City unless such disclosure is authorized by the City in writing, required by law, or required in the performance of the duties of the City Manager. This provision shall survive the termination or expiration of this Agreement. 12. Notice. Any notices required hereunder shall be in writing and shall be given by personal delivery or overnight courier service to the Party to whom it is to be given at the address set forth below, or at such other address as each Party hereto may direct by notice given in accordance with the terms and conditions of this section. All notices shall be deemed effective upon personal delivery or upon three (3) business days following deposit with any overnight courier service in accordance with this section: For the City of Cathedral City: City Clerk The City of Cathedral City 68700 Avenida Lalo Guerrero Cathedral City, CA 92234 Any notice required to be given to Employee under this Agreement shall be addressed to him at his last known address as reflected in the City's personnel records. Any Party may change its address for the purpose of this section by giving written notice of such change to the other Party in the manner herein provided. 13. General Provisions. a. Governing Law and Severability. This Agreement shall be governed by the laws of the State of California. If any clause, sentence, section or other provision of this Agreement is, for whatever reason, deemed void, unlawful or otherwise unenforceable, then such shall be severed and the balance of this Agreement construed as if the severed language was not a part hereof. b. Modification, Amendment, Waiver. No modification or amendment of any provision of this Agreement shall be effective unless approved in writing and signed by both Parties. The failure of a Party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of either party thereafter to enforce each and every provision hereof in accordance with its terms. c. Assignment. Neither the Agreement nor any of the rights or obligations created herein shall be assignable by Employee without the written approval of the City. d. Counterparts. This Agreement may be executed in any one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The transmission of an executed signature page by any Party may also be accomplished via facsimile or via electronic transmission, and such copies of such documents may be treated as if they were originals. e. Section Headings. The section headings used herein are not a substantive part of this Agreement and are included solely for convenience and have no bearing upon and do not in any way limit the application of the terms and conditions of this Agreement. 6 f. Incorporation. The Recitals are true and correct and are incorporated herein by this reference. g. Venue. All judicial proceedings involving disputes over the terms of this Agreement shall be initiated and conducted in the applicable court in Riverside County, California. h. Entire Agreement. This Agreement represents the entire and integrated contract between the City and Employee and supersedes all prior understandings, negotiations, representations, or agreements. i. Effect of Waiver. The failure of either Party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other Party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times. j. Voluntary Agreement. Employee represents and warrants that he has read carefully and fully understands all the provisions of this Agreement, that he is free to enter into this Agreement and to render the services described in it, that he entering into and performance of this Agreement will not breach or violate or conflict with any other agreement(written or oral) to which he is a party, and that he has had an opportunity to consult with his legal counsel prior to entering into this Agreement and has either done so or voluntarily chosen not to do so. Employee is voluntarily entering into this Agreement. The City represents and warrants that it has the right and power to enter into this Agreement. IN WITNESS WHEREOF, the Parties have entered into this Employment Agreement for the City Manager as of the date first written above. CITY OF CAT•" DRAL CITY By: 11 .1 fi • or EMPLOYEE By: � Gary"And " Hall ATTEST: BY: City C -