Loading...
HomeMy WebLinkAboutItem 14 - Appointed Officials' Compensation Department Name: Human Resources Cost Center: 2007 For Agenda of: December 8, 2020 Placement: Consent Estimated Time: N/A FROM: Mayor Heidi Harmon Prepared By: Monica Irons, Director of Human Resources SUBJECT: APPOINTED OFFICIALS’ COMPENSATION RECOMMENDATION 1. Adopt a Resolution (Attachment A) approving amendment to the City Manager’s employment contract; and 2. Adopt a Resolution (Attachment B) approving amendment to the City Attorney’s employment contract; and 3. Authorize the Mayor to execute amended contracts of employment with the City Manager and City Attorney adjusting their respective salaries and deferred compensation contributions and providing flexibility to cash out of accrued vacation. Background In 1999 Council implemented a structured annual evaluation to formally review the performance of its two appointed officials, the City Manager and City Attorney. The process is facilitated by a consultant who collects Council input on appointed officials’ performance and their progress achieving Council adopted goals, typically in April of each year. This process also includes review and consideration of appointed official compensation. Council met with the consultant in closed session on May 19, 2020 to discuss the appointed officials’ performance. The session was delayed slightly due to the COVID19 pandemic. While Council concluded that the appointed officials had met or exceeded performance expectations in all categories, accomplished the 2019-20 goals provided by Council, and were eligible for a compensation adjustment; Council and the appointed officials mutually agreed that any adjustment be delayed given the economic uncertainty presented by the pandemic. Council again met with the consultant in closed session on November 10, 2020 t o provide additional performance feedback given the unprecedented challenges presented by the pandemic. Council further evaluated appointed officials’ compensation, carefully weighing the leadership demonstrated by the appointed officials throughout the pandemic, the desire to retain both appointed officials, the leadership and skills necessary to navigate complex issues facing the City, comparative market data indicating both appointed officials were paid below the median of the market, the cost of replacing either or both of the appointed officials, and the fiscal sustainability of the City. Item 14 Packet Page 255 Ultimately, Council agreed to provide a five percent salary increase for each appointed official. The adjustment to salary brings the City Manager’s effective salary (normalized for employee and employer contribution to CalPERS) to the median of the comparison agency market. The same adjustment to the City Attorney’s compensation brings her effective salary to 4.5% below the median of the comparison agency market. Council also authorized an increase in the City’s contribution to the appointed officials’ deferred compensation from 2.5% to 5% of salary, bringing both appointed officials’ total compensation (salary and benefits) to the median of the market. Slight modification to the vacation cash out language in both the City Manager and City Attorney contracts provides flexibility to exchange up to three weeks of accrued vacation for cash compensation annually. Policy Context The appointed officials’ evaluations were conducted in accordance with the Appointed Officials Evaluations Guide. The recommendations in this report are consistent with the Council adopted Compensation Philosophy. Public Engagement Compensation for appointed officials in comparison agencies was considered by Council. No other public engagement was conducted as appointed officials are appointed and serve at the will of the Council. CONCURRENCE No other departments were asked to review this report as the appointed officials’ evaluations and compensation are the authority of the Council. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2020-21 Funding Identified: Yes, the appropriated budget includes a contingency fund for negotiated increases. Item 14 Packet Page 256 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $25,100 $36,272 State Federal Fees Other: Total $25,100 $36,272 Providing increases to the City Manager and City Attorney the first full pay period in December will result in approximately $25,100 funding needed through the end of the fiscal year, and $36,272 annually ongoing. There is sufficient funding in 2020-21 budget appropriations to cover these increases. ALTERNATIVES Renegotiate adjustments to the City Manager and City Attorney compensation based on new or different information. This alternative is not recommended because this process represents a good faith negotiation between the employees and the Council. Attachments: a - Draft Resolution - 2020 City Manager Contract (Red-lined) b - Draft Resolution - City Attorney Contract (Red-lined) Item 14 Packet Page 257 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT FOR THE CITY MANAGER WHEREAS, on September 29, 2017 the City Council approved a contract of employment appointing Derek Johnson to the position of City Manager; and WHEREAS, the City Council conducted performance evaluations of this appointed official on May 19, 2020 and November 10, 2020, in accordance with the Appointed Officials’ Performance Process as modified in December of 2011. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council hereby approves the amended contract of employment attached hereto as Exhibit A. Item 14 Packet Page 258 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2. The City Council shall evaluate the performance of the City Manager annually. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______ day of ____________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ___________________________. ____________________________________ Teresa Purrington City Clerk Item 14 Packet Page 259 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A AMENDED CONTRACT OF EMPLOYMENT WITH DEREK J. JOHNSON, CITY MANAGER THIS CONTRACT is entered into as of this December 8, 2020 by and between the CITY OF SAN LUIS OBISPO, State of California (hereinafter referred to as "CITY"), and DEREK J. JOHNSON, a contract employee (hereinafter referred to as "DEREK J. JOHNSON"); WITNESSETH: WHEREAS, Charter Section 703 provides that the SAN LUIS OBISPO CITY COUNCIL (hereinafter referred to as "COUNCIL") is responsible for the appointment and removal of the CITY MANAGER, and WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the responsibility for supervision of the CITY MANAGER; and WHEREAS, the COUNCIL wishes to appoint a CITY MANAGER and to set the terms and conditions of said employment; and WHEREAS, DEREK J. JOHNSON desires to accept the position of CITY MANAGER consistent with certain terms and conditions of said employment, as set forth in this CONTRACT. NOW, THEREFORE, the parties do mutually agree as follows: Section 1. Effective Date. A. The appointment of DEREK J. JOHNSON is effective September 29, 2017 B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of DEREK J. JOHNSON at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 12 of this Contract. C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of DEREK J. JOHNSON to resign at any time from his position with the CITY, subject only to the provision set forth in Section 13 of this Contract. Section 2. Duties and Salary. A. CITY agrees to employ DEREK J. JOHNSON as full-time City Manager of the City to perform the functions and duties specified in the Charter and Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time to time assign. Item 14 Packet Page 260 Resolution No. _____ (2020 Series) Page 4 R ______ B. It is recognized DEREK J. JOHNSON is an exempt employee but is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager's position. The parties acknowledge DEREK J. JOHNSON will not regularly participate in a formal 9-80 work schedule as is provided to department heads and certain other City employees as part of the City's Trip Reduction Incentive Program. However, DEREK J. JOHNSON is authorized, with appropriate notification to Council, to from time to time modify his regular work schedule in order to take time off with pay while ensuring appropriate coverage of his duties as City Manager. Leave pursuant to this provision shall not be used in lieu of vacation or administrative leave. C. COUNCIL agrees to pay DEREK J. JOHNSON, for his services rendered pursuant hereto, a starting annual base salary of $218,374 $238,550 effective the second first full pay period in April 2019 December 2020 payable in installments at the same time as the other management employees of the CITY are paid. In addition, COUNCIL agrees to increase said base salary by the cost-of-living adjustment approved by the COUNCIL for all CITY management employees under any successor Management Compensation Resolutions. Section 3. Benefits. A. In addition to the salary set forth in Section 2 of this CONTRACT, DEREK J. JOHNSON shall be entitled to a car allowance of $450 per month, a City contribution decreasing to 2.5% of salary effective in August 2018 of 5.0% of salary to a 401 (a) supplemental retirement plan, the ability to cash out up to three weeks' vacation at the end of each fiscal year once during the calendar year, or upon reaching the vacation accrual cap during the year upon the request of DEREK J. JOHNSON, and the same benefits as those offered by the CITY to the CITY MANAGER, in accordance with the Resolution 10922 (2018 Series), Resolution 8661 (1997 series) and any successors. A one-time cash out of 107 hours of accrued vacation effective the first full pay period of April 2019 in recognition of JOHNSON'S commitment and leadership and limited ability to use vacation during 2018- 19. Section 4. Performance Evaluation. A. Upon appointment to the position of City Manager DEREK J. JOHNSON will assume the goals established by Council for the former City Manager until such time as DEREK J. JOHNSON and Council mutually agree on new goals. On or before January 31, 2018, Council will provide feedback to DEREK J. JOHNSON on performance to goals and expectations. Further, Council shall conduct an "interim" evaluation by March 30, 2018. An annual formal Council evaluation will be conducted in March of 2019 in accordance with the City's Appointed Official Evaluation Process. Consistent with the schedule outlined above, based on the Appointed Officials Evaluation Process, and subject to performance as assessed by the COUNCIL, the CITY MANAGER compensation shall be reviewed by COUNCIL no later than April 2019. Item 14 Packet Page 261 Resolution No. _____ (2020 Series) Page 5 R ______ B. Each calendar year thereafter, COUNCIL shall review and evaluate the performance and compensation of DEREK J. JOHNSON in accordance with the adopted Appointed Officials Evaluation Process, best management practices, and informed by comparison agency data. Section 5. Outside Activities. Conduct and Behavior. A. DEREK J. JOHNSON shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL. B. DEREK J. JOHNSON shall comply with all local and state requirements regarding conflicts-of-interest. Section 6. Dues and Subscriptions. COUNCIL agrees to budget for and to pay for professional dues and subscriptions of DEREK J. JOHNSON necessary for his continuation and full participation in national, regional, state, and local associations, and organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the CITY. Section 7. Professional Development. A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of DEREK J. JOHNSON for professional and official travel, meetings, and occasions adequate to continue the professional development of DEREK J. JOHNSON and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities meetings and conferences, International City/County Managers' Association and such other national, regional, state, and local governmental organizations, groups and/or committees. B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of DEREK J. JOHNSON for short courses, institutes, and seminars that are necessary for his professional development and for the good of the CITY. C. Other professional development may be agreed upon from time to time between the COUNCIL and DEREK J. JOHNSON. Section 8. General Expenses. COUNCIL recognizes that certain expenses of a non-personal and job- affiliated nature are incurred by the CITY MANAGER, and hereby agrees to authorize the Finance Director to reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. Item 14 Packet Page 262 Resolution No. _____ (2020 Series) Page 6 R ______ Section 9. Indemnification. In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify DEREK J. JOHNSON against any claims, demands, causes of actions, losses, damages, expenses (including but not limited to attorney's fees as may be authorized against public entities or officers consistent with state law) or liability of any kind whether stated in or arising from tort, professional liability or any other legal action or equitable theory, whether groundless or otherwise arising out of an alleged act or omission occurring in the performance of DEREK J. JOHNSON's duties as CITY MANAGER to the fullest extent permitted by law. CITY may compromise and settle any such claim or suit and shall pay the amount of any settlement or judgment rendered thereon. Section 10. Other Terms and Conditions of Employment. The COUNCIL, in consultation with DEREK J. JOHNSON, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of DEREK J. JOHNSON, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this CONTRACT, the CITY Charter or any other law. Section 11. No Reduction of Pay and/or Benefits. COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary, compensation or other financial benefits of DEREK J. JOHNSON, except to the degree of such a reduction across-the-board for all employees of the CITY or DEREK J. JOHNSON provides written consent to the reduction. Section 12. Termination and Severance Pay. A. In the event DEREK J. JOHNSON'S employment is terminated by the COUNCIL without cause, or he resigns at the request of a majority of the COUNCIL during such time that he is otherwise willing and able to perform the duties of CITY MANAGER, and if DEREK J. JOHNSON signs, delivers to the City Council, and does not revoke, the General Release Agreement in the form attached hereto as Exhibit A, the COUNCIL agrees to pay him a lump sum cash payment equal to six (6) months compensation. For the purposes of this clause "compensation" shall include base salary, car allowance, City contribution to deferred compensation, and City contribution to health insurance at time of separation as well as cash out of accrued Administrative Leave and cash out of a portion of accrued sick leave as if CITY MANAGER was retiring as provided in the Management Compensation Resolution 10785 (2017 Series) and any successors. B. In the event that DEREK J. JOHNSON is terminated for "good cause" the COUNCIL shall have no obligation to pay the lump sum severance payment mentioned above. For the purpose of this CONTRACT, "good cause" shall mean any of the following: 1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt misconduct, or conviction of any felony. Item 14 Packet Page 263 Resolution No. _____ (2020 Series) Page 7 R ______ 2) Conviction of a misdemeanor arising directly out of DEREK J JOHNSON'S duties pursuant to this Agreement. 3) Willful abandonment of duties outlined in this Agreement. "Good cause" shall not mean a mere loss of support or confidence by a majority of the COUNCIL. C. Any termination of employment shall be done consistent with limitations established in the City Charter Section 709. Additionally, the CITY shall provide a minimum of 30 days prior written notice to DEREK J. JOHNSON of the intent to terminate this Agreement. D. In the event the CITY terminates the CITY MANAGER for any reason or no reason, the CITY and the CITY MANAGER agree that no member of the COUNCIL, the City Management staff, nor the CITY MANAGER, shall make any written, oral or electronic statement to any member of the public, the press, or any city employee concerning the CITY MANAGER'S termination except in the form of a joint press release or statement, the content of which is mutually agreeable to the City and the CITY MANAGER. The joint press release or statement shall not contain any text or information that is disparaging to either party. Either party may verbally repeat the substance of the joint press release or statement in response to an inquiry. Nothing herein shall be construed to prevent the City from referring to or responding to inquiries about third party or outside agency investigations or actions pertaining to the official performance of the CITY MANAGER. Section 1 3. Resignation. In the event DEREK J. JOHNSON voluntarily resigns his position with the CITY, he shall give the COUNCIL at least 45 days advance written notice. Section 14. General Provisions. A. The text herein shall constitute the entire CONTRACT between the parties. B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and executors of the parties. C. It is the intent of the COUNCIL that this CONTRACT and the appointment of DEREK J. JOHNSON as CITY MANAGER are in accordance with the requirements and provisions of the Charter. Wherever possible, the provisions of this CONTRACT shall be construed in a manner consistent with the Charter. If any provision of this CONTRACT conflicts with the Charter, the Charter shall control. D. If any provision, or any portion thereof, contained in this CONTRACT is held unconstitutional, invalid or unenforceable, the remainder of this CONTRACT, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. Item 14 Packet Page 264 Resolution No. _____ (2020 Series) Page 8 R ______ IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. _____________________________ ________________________ DEREK JOHNSON DATE CITY MANAGER ____________________________ _______________________ HEIDI HARMON DATE MAYOR ATTEST: ____________________________ _______________________ TERESA PURRINGTON DATE CITY CLERK APPROVED AS TO FORM: ____________________________ ______________________ J. CHRISTINE DIETRICK DATE CITY ATTORNEY Item 14 Packet Page 265 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT FOR THE CITY ATTORNEY WHEREAS, on January 2, 2010 the City Council approved a contract of employment appointing Christine Dietrick to the position of City Attorney; and WHEREAS, the City Council conducted performance evaluations of this appointed official on May 19, 2020 and November 10, 2020, in accordance with the Appointed Officials’ Performance Process as modified in December of 2011. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council hereby approves the amended contract of employment attached hereto as Exhibit A. Item 14 Packet Page 266 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 2. The City Council shall evaluate the performance of the City Attorney annually. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ____ day of ______________ 2020. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _____________________________________ Mark Amberg Contract Assistant City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ___________________________. ____________________________________ Teresa Purrington City Clerk Item 14 Packet Page 267 Resolution No. _____ (2020 Series) Page 3 R ______ Exhibit A AMENDED CONTRACT OF EMPLOYMENT WITH J. CHRISTINE DIETRICK CITY ATTORNEY THIS CONTRACT is amended this 8th day of December 2020 by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city (hereinafter referred to as "CITY"), and J. CHRISTINE DIETRICK, a contract employee (hereinafter referred to as "CHRISTINE DIETRICK"); WITNESSETH: WHEREAS, Charter Section 701 provides that the SAN LUIS OBISPO CITY COUNCIL (hereinafter referred to as "COUNCIL") is responsible for the appointment and removal of the CITY ATTORNEY, and WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and accepts the responsibility for supervision of the CITY ATTORNEY; and WHEREAS, the COUNCIL is desirous of appointing a CITY ATTORNEY and wishes to set the terms and conditions of said employment; and WHEREAS, CHRISTINE DIETRICK desires to continue in her position of CITY ATTORNEY consistent with certain terms and conditions of said employment, as set forth in this CONTRACT. NOW, THEREFORE, the parties do mutually agree as follows: Section 1. Effective Date. A. The appointment of CHRISTINE DIETRICK is effective January 1, 2010. B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of CHRISTINE DIETRICK at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 12 of this Contract. C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of CHRISTINE DIETRICK to resign at any time from her position with the CITY, subject only to the provision set forth in Section 13 of this Contract. Section 2. Duties and Salary. A. CITY agrees to employ CHRISTINE DIETRICK as full-time CITY ATTORNEY of the City to perform the functions and duties specified in the Charter and Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time to time assign. Item 14 Packet Page 268 Resolution No. _____ (2020 Series) Page 4 R ______ B. COUNCIL agrees to pay CHRISTINE DIETRICK, for her services rendered pursuant hereto, an annual base salary of $206,622 $225,706 payable in installments at the same time as the other management employees of the CITY are paid. In addition, COUNCIL agrees to increase said base salary by the cost- of-living adjustment approved by the COUNCIL for all CITY management employees under any successor Management Compensation Resolutions. Section 3. Benefits. In addition to the salary set forth in Section 2 of this CONTRACT, CHRISTINE DIETRICK shall be entitled to a car allowance of $250 per month, a City contribution of 3.5% 5.0% of salary to a 401(a) supplemental retirement plan, decreasing to 2.5% of salary effective in August 2018, the ability to cash out up to three weeks' vacation at the end of each fiscal year or upon reaching the vacation accrual cap once during the calendar year, upon CHRISTINE DIETRICK'S request, and the same benefits as those offered by the CITY to the CITY ATTORNEY, in accordance with the Management Compensation Resolution, Resolution No. 10920 (2018 Series) and any successors. Section 4. Performance Evaluation. A. By April 30, 2010, COUNCIL and CHRISTINE DIETRICK shall establish mutually agreeable written goals, performance objectives, and priorities for the performance period ending March 30, 2011. Further, Council shall conduct an "interim" evaluation by October 29, 2010. An annual formal Council evaluation will be conducted in March of 2011 in accordance with the City's Appointed Official Evaluation Process. Consistent with the schedule outlined above, based on the Appointed Officials Evaluation Process, and subject to performance as assessed by the COUNCIL, the CITY ATTORNEY compensation shall be reviewed by COUNCIL in April 2011 consistent with the Management Pay-for- Performance System in place at that time. B. Each calendar year thereafter, COUNCIL shall review and evaluate the performance and compensation of CHRISTINE DIETRICK in accordance with the adopted Appointed Officials Evaluation Process, best management practices, and informed by comparison agency data. Section 5. Outside Activities, Conduct and Behavior. A. CHRISTINE DIETRICK shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL. B. CHRISTINE DIETRICK shall comply with all local and state requirements regarding conflicts-of-interest. Item 14 Packet Page 269 Resolution No. _____ (2020 Series) Page 5 R ______ Section 6. Dues and Subscriptions. COUNCIL agrees to budget for and to pay for professional dues and subscriptions of CHRISTINE DIETRICK necessary for her continuation and full participation in national, regional, state, and local associations, and organizations necessary and desirable for her continued professional participation, growth, and advancement, and for the good of the CITY. Section 7. Professional Development. A. COUNCIL hereby agrees to budget for and to pay for travel and subsistence expenses of CHRISTINE DIETRICK for professional and official travel, meetings, and occasions adequate to continue the professional development of CHRISTINE DIETRICK and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities Annual Conference, League of California Cities City Attorneys Department Conference, and such other national, regional, state, and local governmental organizations, groups and/or committees. B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of CHRISTINE DIETRICK for short courses, institutes, and seminars that are necessary for her professional development and for the good of the CITY. C. Other professional development may be agreed upon from time to time between the COUNCIL and CHRISTINE DIETRICK. Section 8. General Expenses. COUNCIL recognizes that certain expenses of a non-personal and job- affiliated nature are incurred by the CITY ATTORNEY, and hereby agrees to authorize the Finance Director to reimburse or to pay said general and reasonable expenses, consistent with CITY policies, upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. Section 9. Indemnification. In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify CHRISTINE DIETRICK against any claims, demands, causes of actions, losses, damages, expenses (including but not limited to attorney's fees as may be authorized against public entities or officers consistent with state law) or liability of any kind whether stated in or arising from tort, professional liability or any other legal action or equitable theory, whether groundless or otherwise arising out of an alleged act or omission occurring in the performance of CHRISTINE DIETRICK'S duties as CITY ATTORNEY to the fullest extent permitted by law. CITY may compromise and settle any such claim or suit and shall pay the amount of any settlement or judgment rendered thereon. Item 14 Packet Page 270 Resolution No. _____ (2020 Series) Page 6 R ______ Section 10. Other Terms and Conditions of Employment. The COUNCIL, in consultation with CHRISTINE DIETRICK, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of CHRISTINE DIETRICK, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this CONTRACT, the CITY Charter or any other law. Section 11. No Reduction of Pay and/or Benefits. COUNCIL shall not at any time during the term of this CONTRACT, reduce the salary, compensation or other financial benefits of CHRISTINE DIETRICK, except to the degree of such a reduction across-the-board for all employees of the CITY or CHRISTINE DIETRICK provides written consent to the reduction. Section 12. Termination and Severance Pay. A. In the event CHRISTINE DIETRICK'S employment is terminated by the COUNCIL, or she resigns at the request of a majority of the COUNCIL during such time that she is otherwise willing and able to perform the duties of CITY ATTORNEY, the COUNCIL agrees to pay her a lump sum cash payment equal to nine (9) months compensation (salary and all appointed officials fringe benefits). Additionally, CITY shall extend to CHRISTINE DIETRICK the right to continue and purchase at her expense health insurance pursuant to the terms and condition of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) or any successor legal requirement. CHRISTINE DIETRICK is the CITY ATTORNEY for the purposes of the benefits under the California Joint Powers Insurance Authority of which the CITY is a member. Any associated severance benefit as a result of termination shall be in accordance with the terms and conditions of the California Joint Powers Insurance Authority's Memorandum of Liability Coverage in effect at the time of termination. B. In the event that CHRISTINE DIETRICK is terminated for "good cause" the COUNCIL shall have no obligation to pay the lump sum severance payment mentioned above. For the purpose of this CONTRACT, "good cause" shall mean any of the following: 1) Malfeasance, dishonesty for personal gain, willful violation of law, corrupt misconduct, or conviction of any felony. 2) Conviction of a misdemeanor arising directly out of CHRISTINE DIETRICK'S duties pursuant to this Agreement. 3) Willful abandonment of duties outlined in this Agreement. "Good cause" shall not mean a mere loss of support or confidence by a majority of the COUNCIL. Item 14 Packet Page 271 Resolution No. _____ (2020 Series) Page 7 R ______ C. Any termination of employment shall be done consistent with limitations established in the City Charter Section 709. Additionally, the CITY shall provide a minimum of 30 days prior written notice to CHRISTINE DIETRICK of the intent to terminate this Agreement. Section 13. Resignation. In the event CHRISTINE DIETRICK voluntarily resigns her position with the CITY, she shall give the COUNCIL at least two (2) months advance written notice. Section 14. General Provisions. A. The text herein shall constitute the entire CONTRACT between the parties. B. This CONTRACT shall be binding upon and inure to the benefit of the heirs at law and executors of the parties. C. It is the intent of the COUNCIL that this CONTRACT and the appointment of CHRISTINE DIETRICK as CITY ATTORNEY are in accordance with the requirements and provisions of the Charter. Wherever possible, the provisions of this CONTRACT shall be construed in a manner consistent with the Charter. If any provision of this CONTRACT conflicts with the Charter, the Charter shall control. D. If any prov1s1on, or any portion thereof, contained in this CONTRACT is held unconstitutional, invalid or unenforceable, the remainder of this CONTRACT, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. Item 14 Packet Page 272 Resolution No. _____ (2020 Series) Page 8 R ______ IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. _____________________________ ______________________ J. CHRISTINE DIETRICK DATE CITY ATTORNEY ____________________________ _____________________ HEIDI HARMON DATE MAYOR ATTEST: ____________________________ ______________________ TERESA PURRINGTON DATE CITY CLERK APPROVED AS TO FORM: ____________________________ _____________________ MARK AMBERG DATE CONTRACT ASSISTANT CITY ATTORNEY Item 14 Packet Page 273 BLANK PAGE This page is intended to be blank so that you can print double-sided. Item 14 Packet Page 274