HomeMy WebLinkAboutContract 1579 — iC
CITY MANAGER EMPLOYMENT AGREEMENT
Between
City of Cathedral City
and
Charles P. McClendon
This Employment Agreement ("Agreement") is entered into as of January 22, 2014, by
and between the City of Cathedral City, California, a municipal corporation (the "City"), and
Charles P. McClendon, an individual ("Employee"), with respect to Employee's employment as
City Manager for the City. Employee and City are sometimes referred to hereinafter individually
as a"Party" and collectively as the "Parties".
RECITALS
WHEREAS, the City operates under the City Manager form of government pursuant to
Government Code section 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 term of this Agreement ("Term") shall be one (1) year,
commencing on March 3, 2014. Unless otherwise terminated pursuant to the provisions of this
Agreement, the Term shall automatically renew for a new Term identical in duration to the initial
Term, and such renewal shall continue without further action of the Parties or until termination
occurs. An election by the City Council not to renew this Agreement shall entitle Employee to
exercise the severance provisions under this Agreement.
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 Chapter 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 as well as the provisions of the City's Executive, Administrative, Professional and
Confidential Employee Policy ("Executive Policy"). Should there be any conflict between the
provision of this Agreement and the Executive Policy, the provisions of this Agreement shall
govern.
a. Salary. Employee shall be paid an annual base salary of$192,000.00. 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. If the Employee possesses a Master's Degree
he is entitled to an educational stipend equal to five-percent (5%) of base salary pursuant to the
Executive 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 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. The City will make a prorated payment per pay period equally to the annual
contribution to the plan in the same year equal to $6,200.00. Employee will make a matching
contribution of a minimum of$1,200 annually.
d. Vacation Leave. Employee shall be provided with an initial advance of 120
hours of vacation leave upon commencement of employment. Thereafter, Employee shall accrue
a total of 20 days annual vacation at 200 hours equivalent to 7.69231 hours per pay period during
each year of this Agreement for a total of 200 hours per calendar year. Employee shall be
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eligible to cash out the accrued hours after nine months employment and will accrue additional
hours once the accrual of the original 120 hours employment is reached. Unused vacation time
will be treated and future accrual rates will be pursuant to Article 6.6 of the Executive Policy.
e. Sick Leave. Employee shall be provided with an advanced accrual of 120 hours
of hours of sick leave upon commencement of employment pursuant to this Agreement.
Thereafter, Employee shall accrue additional sick leave of 3.69 hours per pay period up to a total
of 96 hours per year after the time that the original 120 hours would have been accrued.
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 Policy.
f. Holidays. Employee shall be entitled to receive the same paid holidays as other
City employees. Currently there are 9 fixed and 3 floating paid holidays, which holidays are
subject to change by the City Council, but only in the same manner applicable to all 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 or Emergency.
g. Car Allowance. Employee shall be paid a car allowance of $600.00 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 also utilize a City pool vehicle for the conducting of City
business, if one is available.
h. Technology Stipend. Employee will be provided with a $150.00 monthly
Technology Stipend in lieu of being provided with a 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. Relocation Expenses. Employee shall receive up to a $10,000.00 reimbursement
for moving expenses based on receipts of the actual expenses. Employee shall also receive
reimbursement of actual and reasonable expenses for travel, up to 5 nights lodging in Cathedral
City and meals for a trip from current residence to find a residence in Coachella Valley in which
to relocate.
5. 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.
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6. 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 shall review and
evaluate Employee's performance on at least an annual basis or other more frequent basis at
Council's sole discretion.
7. Bonding. City shall bear the full cost of any fidelity or other bonds required of
Employee by law.
8. 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 section 810 et seq. The City shall provide at its expense separate legal
counsel to Employee if the City's legal counsel has a legal conflict of interest between the
representation of the City's interest and the Employee's interest. This provision, including legal
defense, shall extend indefinitely beyond Employee's employment with the City on any litigation
matters that arose during said employment or as a result of said employment. If the Employee is
required to testify or be a witness in any legal proceeding on behalf of the City or by subpoena
by any plaintiff against City, the City shall reimburse Employee for all reasonable expenses for
travel to participate in the legal matter.
9. Professional Associations, Memberships and Subscriptions. The Parties agree that
Employee should 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. This
provision includes the obligation of the City to specifically fund membership and attendance for
the annual conferences for ICMA (International City/County Manager Association), League of
California Cities, and League of California Cities City Manager Department. The City may
budget and pay for such other dues, conferences, seminars and educational courses on behalf of
the Employee, as may be deemed appropriate by the City Council.
10. Termination of Employment. The City employs Employee to serve as its City
Manager, at the pleasure of the City Council, 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 fewer than 45 calendar days notice of his resignation, then
he shall receive a reduced disbursement of sick pay accrued under this Agreement, or any other
applicable City policies, equivalent to the number of work days below the 45 calendar day
notice, and will be only 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
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any provisions for termination of the City Manager contained in Chapter 2.08 of the Cathedral
City Municipal Code.
c. City Council's Right to Terminate. The Term of this Agreement as stated in
Section 1 above, shall not impede or diminish the right of the City Council to terminate
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 severance will
provide that Employee 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 (6) months or until
Employee commences employment with another employer, whichever occurs first. The City
Council may place Employee on administrative leave during the 30 to 60 day notice to terminate
without cause period. Following the date written notice of termination is received, 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 receipt of the written notice of
termination 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 Employee will
only be entitled to that compensation that is required by law to be paid to an employee upon
termination of employment:
1. Continued violation of adopted City Council policies and procedures after
being warned and advised at least once at a public meeting of the City
Council to cease and desist from said violation;
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2. Proven theft of City property;
3. Willful insubordination of executing any lawful directive of the City
Council after being warned and advised at least once at a public meeting
of the City Council to cease and desist from said willful insubordination;
4. Conviction of a felony, malfeasance in office or of a misdemeanor relating
to Employee's fitness to perform assigned duties;
5. Unauthorized or excessive absences from the City after the City Council
has warned Employee in writing of such excessive absences. Excessive
absences includes absence due to incarceration of longer than the
Employee's available accrued vacation paid time off. Customary use of
vacation and sick leave when ill or injured is not considered excessive
absence;
6. Engaging in City business while under the undue influence of alcohol or
illicit drugs after being warned in writing by the City Council of said
occurrence and directed to cease and desist from said activity.
7. "Willful Misconduct" as defined in Section 2.08.160 of the Cathedral City
Municipal Code.
8. Violation of the ICMA Code of Ethics resulting in a public censure by
ICMA. ICMA shall be the sole determining body of any violation of the
ICMA Code of Ethics.
d. Abuse of Office. Any and all severance, paid leave, defense payments or
other benefits which may be provided to Employee under this Agreement upon termination or in
the event of an investigation shall be subject to and interpreted to comply with the limitations set
forth in Government Code sections 53243 through 53244 and 53260, including without
limitation, the obligation of Employee to reimburse City for any severance paid should
Employee be convicted of a crime involving an abuse of office or position as defined in
Government Code section 53243.4.
11. 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 a majority vote of the City Council.
12. 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,
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.
13. 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:
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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.
14. 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 Council.
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.
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.
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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 CATHEDRAL CITY
ilk II -
leen J. De' 'sa, Mayor
EMPLOYEE
B •
/ 4 4 ,11, a-L.--
Charles P. McClendon, Employee
ATTEST:
Deputy C.4 Clerk X
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