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HomeMy WebLinkAbout06-02-2015 B2 Appointed Officials Evaluations and CompensationCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Mayor Jan Howell Marx Prepared By: Monica Irons, Director of Human Resources SUBJECT: APPOINTED OFFICIALS’ EVALUATIONS AND COMPENSATION RECOMMENDATION 1. Adopt a resolution approving car allowance and one-time lump-sum payment to the City Manager. 2. Adopt a resolution adjusting the salary of the City Attorney. 3. Authorize the Mayor to execute amended contracts of employment with the City Manager and City Attorney. DISCUSSION Background In 1999 Council began following a structured process to annually evaluate the job performance of its two appointed officials, the City Manager and City Attorney. The process is facilitated by a consultant who collects input on the appointed officials’ performance in the areas of Council– City Manager or Council-City Attorney relationship, legal advocacy (City Attorney only), leadership, community relations, financial management (City Manager only), and progress to major goals. The consultant summarizes input for Council from the appointed officials’ direct reports. The consultant then interviews each Council member and drafts the performance evaluation documents prior to meeting with Council as a whole to finalize. Council also reviews and approves goals for each appointed official during this annual process. Appointed Officials’ goals are linked to Major City Goals established by Council as part of the City’s comprehensive financial planning process. The overall process takes approximately eight to twelve weeks to complete and provides appointed officials with constructive feedback. At the same time as they are conducting the performance evaluations Council considers appropriate compensation for the appointed officials. In 2013, Council amended the contract of the City Attorney removing emphasis from the Management Pay for Performance System used with unrepresented management and department head employees and placing emphasis on market comparisons for Council’s consideration of compensation. The same language is recommended for inclusion in the City Manager’s contract to more accurately reflect Council’s compensation considerations. This change recognizes that the appointed officials differ from other management employees in that they are hired by, and serve at the will of, the City Council. City Manager and City Attorney compensation is negotiated and agreed upon in Employment Contracts between the City and each appointed official. In determining the appropriate compensation, Council considers a variety of factors that include performance, market compensation data, recruitment and retention challenges, workload, accomplishments, etc. 06-02-2015 B2 B2 - 1 Appointed Officials’ Evaluations and Compensation Page 2 2015 Compensation Considerations Council met with the consultant in closed session on April 22, 2015, to discuss the appointed officials’ performance and compensation. Council considered the commendable performance of the City Manager and City Attorney, accomplishment of goals, Council’s desire to retain these highly qualified and experienced individuals, the current compensation of the City Manager and City Attorney, and market data for comparable positions. Council concluded adjustments to compensation were appropriate. The City Manager was hired in January 2010 and in 2011 all unrepresented management employees including the two appointed officials accepted a 6.8% total compensation reduction by paying the full 8% Member contribution to CalPERS. However, the City Manager also recommended Council accept a waiver of her negotiated car allowance and her ability to cash out unused administrative leave hours increasing her total compensation reduction to 10.3%. Since that time, no other increases or adjustments to her compensation have been made. Given this history, as well as performance, retention, and compensation movement in the market, Council determined providing a $450 per month car allowance and a one-time lump-sum incentive of $7,600 (less applicable taxes) was appropriate for the City Manager. The car allowance would be effective April 9, 2015 and the lump-sum incentive provided on the first regular payroll following adoption by Council. The City Attorney was also hired in January 2010 and in 2011 agreed to pay the full 8% Member contribution to CalPERS and eliminate her ability to cash out unused administrative leave. Council has adjusted the City Attorney’s salary in recent years given it has been well below the median of the comparison market. Council concluded a seven percent market equity adjustment was appropriate bringing her annual salary to $187,252 effective April 9, 2015. No other changes to the City Attorney’s compensation, or that of the City Manager, were requested or recommended at this time. FISCAL IMPACT The proposed compensation adjustments can be absorbed in the current budget and accommodated in the 2015-17 financial plan. ATTACHMENTS 1. Resolution – City Manager compensation adjustment 2. Amended City Manager Employment Contract – with markup 3. Amended City Manager Employment Contract – final 4. Resolution – City Attorney compensation adjustment 5. Amended City Attorney Employment Contract – with markup 6. Amended City Attorney Employment Contract - final T:\Council Agenda Reports\2015\2015-05-19\Appointed Officials Evaluations and Compensation (Irons) B2 - 2 ATTACHMENT 1 Page 1 of 2 RESOLUTION NO. (2015 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY MANAGER WHEREAS, on January 1, 2010 the City Council approved a contract of employment appointing Katie Lichtig to the position of City Manager; and WHEREAS, the City Council conducted a performance evaluation on April 23, 2015, 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. Effective April 9, 2015, the City Manager shall receive a monthly car allowance of $450. SECTION 2. Payable on the first regular payroll following adoption of this Resolution the City Manager shall receive a one-time lump-sum payment of $7,600. SECTION 3. All other compensation and benefits afforded to the City Manager under Management Compensation Resolution No. 10488 (2014 Series) and the City Manager Employment Agreement, as amended, shall remain in full force and effect. SECTION 4. The City Council shall evaluate the performance of the City Manager annually. On motion of Council Member, seconded by Council Member, and on the following roll call vote: AYES: NOES: ABSENT: B2 - 3 ATTACHMENT 1 Page 2 of 2 Resolution No. (2015 Series) Page 2 The foregoing Resolution was adopted this 2nd day of June, 2015. ____________________________________ MAYOR JAN MARX ATTEST: _________________________________________ ANTHONY MEJIA, CITY CLERK APPROVED AS TO FORM: _________________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 4 ATTACHMENT 2 Page 1 of 7 AMENDED CONTRACT OF EMPLOYMENT WITH KATIE E. LICHTIG CITY MANAGER THIS CONTRACT is amended as of this 6th 2nd day of DecemberJune, 20151 by and between the CITY OF SAN LUIS OBISPO, State of California (hereinafter referred to as "CITY"), and KATIE E. LICHTIG, a contract employee (hereinafter referred to as " KATIE LICHTIG”); 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 is desirous of appointing a CITY MANAGER and wishes to set the terms and conditions of said employment; and WHEREAS, KATIE LICHTIG 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 KATIE LICHTIG is effective January 19, 2010. B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of KATIE LICHTIG at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 13 of this Contract. C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of KATIE LICHTIG to resign at any time from her position with the CITY, subject only to the provision set forth in Section 14 of this Contract. Section 2. Duties and Salary. A. CITY agrees to employ KATIE LICHTIG as full-time City Manager of the City to perform the functions and duties specified in the Charter and B2 - 5 ATTACHMENT 2 Page 2 of 7 Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time to time assign. B. It is recognized KATIE LICHTIG 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 KATIE LICHTIG 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, KATIE LICHTIG is authorized, with appropriate notification to Council, to from time to time modify her regular work schedule in order to take time off with pay while ensuring appropriate coverage of her 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 KATIE LICHTIG, for her services rendered pursuant hereto, a starting annual base salary of $221,500 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 the Management Compensation Resolution (Resolution No. 10036 (2008 Series) and any successors. D. Notwithstanding Section 2(C), KATIE LICHTIG agrees that she will not receive any across the board salary increases (e.g. “cost of living” increases) from January 1, 2012 through December 31, 2013 pursuant to the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series)). Section 3. Benefits. A. In addition to the salary set forth in Section 2 of this CONTRACT, KATIE LICHTIG shall be entitled to the same benefits as those offered by the CITY to the CITY MANAGER, in accordance with the Reduction in Management Compensation Resolution, Resolution No.10315 ( 2011 Series), Resolution 8661 (1997 series) and successors. Notwithstanding the above, KATIE LICHTIG shall be entitled to the following leave benefits: An initial balance of 40 hours of sick leave and 40 hours of vacation leave; and a vacation leave accrual rate of 160 hours per year in light of her past public sector service. B. KATIE LICHTIG hereby agrees that her monthly car allowance as provided in Resolution 9440 (2003 Series) will be eliminated pursuant to the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series)). C. In addition to the benefits outlined above KATIE LICHTIG shall be entitled to a car allowance of $450 per month effective April 9, 2015 and a one- time lump-sum incentive payment of $7,600 payable on the next regular payroll following approval of her amended employment contract. B2 - 6 ATTACHMENT 2 Page 3 of 7 Section 4. Performance Evaluation. A. By April 30, 2010, COUNCIL and KATIE LICHTIG 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 MANAGER 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 KATIE LICHTIG in accordance with the adopted Appointed Officials Evaluation Process, adopted Management Pay-for- Performance System, or any successor systemsbest management practices, and informed by comparison agency data. Section 5. Outside Activities, Conduct and Behavior. A. KATIE LICHTIG shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL. B. KATIE LICHTIG 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 KATIE LICHTIG 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 KATIE LICHTIG for professional and official travel, meetings, and occasions adequate to continue the professional development of KATIE LICHTIG and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities Annual Conference, International City/County Managers’ Association and such other national, regional, state, and local governmental organizations, groups and/or committees. B2 - 7 ATTACHMENT 2 Page 4 of 7 B. COUNCIL also agrees to budget for and to pay for travel and subsistence expenses of KATIE LICHTIG 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 KATIE LICHTIG. 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. Section 9. Relocation Assistance. A. The CITY shall pay or reimburse KATIE LICHTIG all reasonable relocation expenses incurred in moving her residence and family from Los Angeles County to the City of San Luis Obispo. These expenses shall be limited to the cost of packing, moving, and temporary storage of household furnishings and up to two house-hunting trips. B. The CITY shall reimburse KATIE LICHTIG a monthly temporary housing rental expense not to exceed $2,500 per month to assist her while relocating her personal residence to a new principal residence in San Luis Obispo. This allowance shall be made available only through July 31, 2010. C. The CITY shall make available a loan to KATIE LICHTIG, to assist with the purchase of a principal residence within the corporate limits of the City of San Luis Obispo CITY and KATIE LICHTIG shall execute such notes, deeds of trust, escrow instructions, agreements and other documents as the City Attorney may determine are reasonably necessary to effectuate this second mortgage assistance in a form mutually determined by the City Attorney and KATIE LICHTIG and executed by the Mayor on behalf of CITY. The maximum amount of such a loan shall not exceed $125,000. The interest rate shall be variable, adjusted annually, and tied to the City’s Local Agency Investment Fund rate. The term of the loan shall be for ten years. Payments shall be amortized over 30 years. The loan shall be structured to allow for interest-only payments with a balloon payment at the end of ten years. Rollover of existing equity in another residence shall not be required. Section 10. Indemnification. B2 - 8 ATTACHMENT 2 Page 5 of 7 In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify KATIE LICHTIG 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 KATIE LICHTIG’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 11. Other Terms and Conditions of Employment. The COUNCIL, in consultation with KATIE LICHTIG, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of KATIE LICHTIG, 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 12. 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 KATIE LICHTIG, except to the degree of such a reduction across-the-board for all employees of the CITY or KATIE LICHTIG provides written consent to the reduction. Notwithstanding the above, KATIE LICHTIG expressly agrees to the reduction of compensation, salary, and financial benefits as set forth in the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series)) Section 13. Termination and Severance Pay. A. In the event KATIE LICHTIG’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 MANAGER, 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 KATIE LICHTIG 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. KATIE LICHTIG is the City Manager 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. B2 - 9 ATTACHMENT 2 Page 6 of 7 B. In the event that KATIE LICHTIG 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 KATIE LICHTIG’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 KATIE LICHTIG of the intent to terminate this Agreement. Section 14. Resignation. In the event KATIE LICHTIG voluntarily resigns her position with the CITY, she shall give the COUNCIL at least two (2) months advance written notice. Section 15. 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 KATIE LICHTIG 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. IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. B2 - 10 ATTACHMENT 2 Page 7 of 7 _____________________________ _______________ KATIE E. LICHTIG DATE _____________________________ ________________ JAN MARX, MAYOR DATE ATTEST: ____________________________ ________________ ANTHONY MEJIA DATE CITY CLERK APPROVED AS TO FORM: __________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 11 ATTACHMENT 3 Page 1 of 7 AMENDED CONTRACT OF EMPLOYMENT WITH KATIE E. LICHTIG CITY MANAGER THIS CONTRACT is amended as of this 2nd day of June, 2015 by and between the CITY OF SAN LUIS OBISPO, State of California (hereinafter referred to as "CITY"), and KATIE E. LICHTIG, a contract employee (hereinafter referred to as " KATIE LICHTIG”); 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 is desirous of appointing a CITY MANAGER and wishes to set the terms and conditions of said employment; and WHEREAS, KATIE LICHTIG 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 KATIE LICHTIG is effective January 19, 2010. B. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of the COUNCIL to terminate the services of KATIE LICHTIG at any time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions set forth in Section 13 of this Contract. C. Nothing in this Contract shall prevent, limit or otherwise interfere with the right of KATIE LICHTIG to resign at any time from her position with the CITY, subject only to the provision set forth in Section 14 of this Contract. Section 2. Duties and Salary. A. CITY agrees to employ KATIE LICHTIG as full-time City Manager of the City to perform the functions and duties specified in the Charter and B2 - 12 ATTACHMENT 3 Page 2 of 7 Municipal Code and to perform such other legally permissible and proper duties and functions as the COUNCIL may from time to time assign. B. It is recognized KATIE LICHTIG 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 KATIE LICHTIG 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, KATIE LICHTIG is authorized, with appropriate notification to Council, to from time to time modify her regular work schedule in order to take time off with pay while ensuring appropriate coverage of her 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 KATIE LICHTIG, for her services rendered pursuant hereto, a starting annual base salary of $221,500 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 the Management Compensation Resolution (Resolution No. 10036 (2008 Series) and any successors. D. Notwithstanding Section 2(C), KATIE LICHTIG agrees that she will not receive any across the board salary increases (e.g. “cost of living” increases) from January 1, 2012 through December 31, 2013 pursuant to the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series)). Section 3. Benefits. A. In addition to the salary set forth in Section 2 of this CONTRACT, KATIE LICHTIG shall be entitled to the same benefits as those offered by the CITY to the CITY MANAGER, in accordance with the Reduction in Management Compensation Resolution, Resolution No.10315 ( 2011 Series), Resolution 8661 (1997 series) and successors. Notwithstanding the above, KATIE LICHTIG shall be entitled to the following leave benefits: An initial balance of 40 hours of sick leave and 40 hours of vacation leave; and a vacation leave accrual rate of 160 hours per year in light of her past public sector service. B.In addition to the benefits outlined above KATIE LICHTIG shall be entitled to a car allowance of $450 per month effective April 9, 2015 and a one- time lump-sum incentive payment of $7,600 payable on the next regular payroll following approval of her amended employment contract. Section 4. Performance Evaluation. A. By April 30, 2010, COUNCIL and KATIE LICHTIG shall establish mutually agreeable written goals, performance objectives, and priorities for the B2 - 13 ATTACHMENT 3 Page 3 of 7 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 MANAGER 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 KATIE LICHTIG 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. KATIE LICHTIG shall not engage in teaching, consulting or other non-CITY connected business without the prior approval of COUNCIL. B. KATIE LICHTIG 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 KATIE LICHTIG 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 KATIE LICHTIG for professional and official travel, meetings, and occasions adequate to continue the professional development of KATIE LICHTIG and to adequately pursue necessary official functions for the CITY, including but not limited to the League of California Cities Annual Conference, 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 KATIE LICHTIG for short courses, institutes, and seminars that are necessary for her professional development and for the good of the CITY. B2 - 14 ATTACHMENT 3 Page 4 of 7 C. Other professional development may be agreed upon from time to time between the COUNCIL and KATIE LICHTIG. 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. Section 9. Relocation Assistance. A. The CITY shall pay or reimburse KATIE LICHTIG all reasonable relocation expenses incurred in moving her residence and family from Los Angeles County to the City of San Luis Obispo. These expenses shall be limited to the cost of packing, moving, and temporary storage of household furnishings and up to two house-hunting trips. B. The CITY shall reimburse KATIE LICHTIG a monthly temporary housing rental expense not to exceed $2,500 per month to assist her while relocating her personal residence to a new principal residence in San Luis Obispo. This allowance shall be made available only through July 31, 2010. C. The CITY shall make available a loan to KATIE LICHTIG, to assist with the purchase of a principal residence within the corporate limits of the City of San Luis Obispo CITY and KATIE LICHTIG shall execute such notes, deeds of trust, escrow instructions, agreements and other documents as the City Attorney may determine are reasonably necessary to effectuate this second mortgage assistance in a form mutually determined by the City Attorney and KATIE LICHTIG and executed by the Mayor on behalf of CITY. The maximum amount of such a loan shall not exceed $125,000. The interest rate shall be variable, adjusted annually, and tied to the City’s Local Agency Investment Fund rate. The term of the loan shall be for ten years. Payments shall be amortized over 30 years. The loan shall be structured to allow for interest-only payments with a balloon payment at the end of ten years. Rollover of existing equity in another residence shall not be required. Section 10. Indemnification. In addition to that required under state and local law, CITY shall defend, save harmless, and indemnify KATIE LICHTIG 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, B2 - 15 ATTACHMENT 3 Page 5 of 7 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 KATIE LICHTIG’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 11. Other Terms and Conditions of Employment. The COUNCIL, in consultation with KATIE LICHTIG, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of KATIE LICHTIG, 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 12. 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 KATIE LICHTIG, except to the degree of such a reduction across-the-board for all employees of the CITY or KATIE LICHTIG provides written consent to the reduction. Notwithstanding the above, KATIE LICHTIG expressly agrees to the reduction of compensation, salary, and financial benefits as set forth in the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series)) Section 13. Termination and Severance Pay. A. In the event KATIE LICHTIG’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 MANAGER, 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 KATIE LICHTIG 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. KATIE LICHTIG is the City Manager 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 KATIE LICHTIG 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: B2 - 16 ATTACHMENT 3 Page 6 of 7 (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 KATIE LICHTIG’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 KATIE LICHTIG of the intent to terminate this Agreement. Section 14. Resignation. In the event KATIE LICHTIG voluntarily resigns her position with the CITY, she shall give the COUNCIL at least two (2) months advance written notice. Section 15. 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 KATIE LICHTIG 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. IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. _____________________________ _______________ KATIE E. LICHTIG DATE B2 - 17 ATTACHMENT 3 Page 7 of 7 _____________________________ ________________ JAN MARX, MAYOR DATE ATTEST: ____________________________ ________________ ANTHONY MEJIA DATE CITY CLERK APPROVED AS TO FORM: __________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 18 ATTACHMENT 4 Page 1 of 2 RESOLUTION NO. (2015 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO ADJUSTING COMPENSATION FOR THE CITY ATTORNEY WHEREAS, on January 1, 2010 the City Council approved a contract of employment appointing Christine Dietrick to the position of City Attorney; and WHEREAS, the City Council conducted a performance evaluation on April 23, 2015, 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. Effective April 9, 2015, the City Attorney’s salary shall be increased from $6,731 biweekly to $7,202 biweekly or $187,252 annually. SECTION 2. All other compensation and benefits afforded to the City Attorney under Management Compensation Resolution No. 10488 (2014 Series) and the City Attorney Employment Agreement, as amended, shall remain in full force and effect. SECTION 3. The City Council shall evaluate the performance of the City Attorney annually. On motion of Council Member, seconded by Council Member, and on the following roll call vote: AYES: NOES: ABSENT: B2 - 19 ATTACHMENT 4 Page 2 of 2 Resolution No. (2015 Series) Page 2 The foregoing Resolution was adopted this 2nd day of June, 2015. ____________________________________ MAYOR JAN MARX ATTEST: _________________________________________ ANTHONY MEJIA, CITY CLERK APPROVED AS TO FORM: _________________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 20 ATTACHMENT 5 Page 1 of 6 1 AMENDED CONTRACT OF EMPLOYMENT WITH J. CHRISTINE DIETRICK CITY ATTORNEY THIS CONTRACT is amended this 20th 2nd day of MayJune, 2014 2015 by and between the CITY OF SAN LUIS OBISPO, State of California (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 accept the 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. Formatted: Superscript B2 - 21 ATTACHMENT 5 Page 2 of 6 2 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. B. COUNCIL agrees to pay CHRISTINE DIETRICK, for her services rendered pursuant hereto, an annual base salary of $175,006$187,252 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 the Management Compensation Resolution (Resolution No. 10036 (2008 Series) and any successors. C. Notwithstanding Section 2(B), CHRISTINE DIETRICK agrees that she will not receive any across the board salary increases (e.g. “cost of living” increases) from January 1, 2012 through December 31, 2013 pursuant to the Reduction in Management Compensation Resolution, Resolution No. 10315 (2011 Series). 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% of salary to a 401(a) supplemental retirement plan and the same benefits as those offered by the CITY to the CITY ATTORNEY, in accordance with the Reduction in Management Compensation Resolution, Resolution No. 10315 (2011 Series) and all other benefits afforded Management Employees not in conflict with this Employment Contract pursuant to the Management Compensation Resolution, Resolution No. 10488 (2014 Series). 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. B2 - 22 ATTACHMENT 5 Page 3 of 6 3 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. 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 B2 - 23 ATTACHMENT 5 Page 4 of 6 4 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. 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. Notwithstanding the above, CHRISTINE DIETRICK expressly agrees to the reduction of compensation, salary, and financial benefits as set forth in the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series). 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 B2 - 24 ATTACHMENT 5 Page 5 of 6 5 (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. 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. B2 - 25 ATTACHMENT 5 Page 6 of 6 6 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. IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. _____________________________ _______________ J. CHRISTINE DIETRICK DATE _____________________________ ________________ JAN MARX, MAYOR DATE ATTEST: ____________________________ ________________ ANTHONY MEJIA, CITY CLERK DATE APPROVED AS TO FORM: __________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 26 ATTACHMENT 5 Page 1 of 6 1 AMENDED CONTRACT OF EMPLOYMENT WITH J. CHRISTINE DIETRICK CITY ATTORNEY THIS CONTRACT is amended this 2nd day of June, 2015 by and between the CITY OF SAN LUIS OBISPO, State of California (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 accept the 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. B2 - 27 ATTACHMENT 5 Page 2 of 6 2 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. B. COUNCIL agrees to pay CHRISTINE DIETRICK, for her services rendered pursuant hereto, an annual base salary of $187,252 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 the Management Compensation Resolution (Resolution No. 10036 (2008 Series) and any successors. C. Notwithstanding Section 2(B), CHRISTINE DIETRICK agrees that she will not receive any across the board salary increases (e.g. “cost of living” increases) from January 1, 2012 through December 31, 2013 pursuant to the Reduction in Management Compensation Resolution, Resolution No. 10315 (2011 Series). 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% of salary to a 401(a) supplemental retirement plan and the same benefits as those offered by the CITY to the CITY ATTORNEY, in accordance with the Reduction in Management Compensation Resolution, Resolution No. 10315 (2011 Series) and all other benefits afforded Management Employees not in conflict with this Employment Contract pursuant to the Management Compensation Resolution, Resolution No. 10488 (2014 Series). 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. B2 - 28 ATTACHMENT 5 Page 3 of 6 3 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. 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 B2 - 29 ATTACHMENT 5 Page 4 of 6 4 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. 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. Notwithstanding the above, CHRISTINE DIETRICK expressly agrees to the reduction of compensation, salary, and financial benefits as set forth in the Reduction in Management Compensation Resolution (Resolution No. 10315 (2011 Series). 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 B2 - 30 ATTACHMENT 5 Page 5 of 6 5 (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. 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. B2 - 31 ATTACHMENT 5 Page 6 of 6 6 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. IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this Contract on the day and year first set forth above. _____________________________ _______________ J. CHRISTINE DIETRICK DATE _____________________________ ________________ JAN MARX, MAYOR DATE ATTEST: ____________________________ ________________ ANTHONY MEJIA, CITY CLERK DATE APPROVED AS TO FORM: __________________________________ JON ANSOLABEHERE, ASSISTANT CITY ATTORNEY B2 - 32