HomeMy WebLinkAbout12-06-2011 C2 Irons• council mEmonandum
December 1, 2011
TO: City Council
VIA: Katie Lichtig, City Manager
FROM: Monica Irons, Director of Human esources
SUBJECT: December 61h Agenda Item: Reduction in Management Compensation
Rick Bolanos, Partner with the law firm of Liebert Cassidy Whitmore was asked to review and
approve as to form Attachments one through four of the December 6, 2011, Reduction in
Management Compensation, Council Agenda Report. The review by outside Counsel was
necessary as both the City Attorney and Assistant City Attorney may be affected by the proposed
changes. Slight modifications adding further clarification and a correction to a resolution
reference were made to the City Manager and City Attorney contracts. The signed agreements
are enclosed.
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RED FILE
MEETING AGENDA
ITEM #-
ATTACHMENT 1
Pagel of 3
RESOLUTION NO. (2011 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
REGARDING MANAGEMENT COMPENSATION FOR APPOINTED OFFICIALS,
DEPARTMENT HEADS, AND MANAGEMENT EMPLOYEES AND SUPERSEDING
PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the unrepresented management employees (Appointed Officials, Department
Heads, and Management employees) of the City of San Luis Obispo met multiple times during the
months of September and October to identify sustainable reductions in total compensation costs to
achieve Council's labor relations objectives to reduce total compensation costs and implement
sustainable pension cost containment and reductions; and
WHEREAS, the City of San Luis Obispo strives to provide excellent service to the
community at all times, and supports this standard by promoting organizational values including
customer service, productivity, accountability, innovation, initiative, stewardship, and ethics; and
WHEREAS, to achieve its service standards the City must attract and retain well qualified
employees who exemplify its organizational values, and
WHEREAS, the unrepresented management employees acknowledge the fiscal challenges
facing the City of San Luis Obispo and are committed to working with the City to help achieve
long -term sustainable solutions; and
WHEREAS, the unrepresented management employees have demonstrated sensitivity to
the fiscal challenges facing the City for several years by agreeing to no across the board salary
increases (e.g. "cost of living" increases) since January 2009; and
WHEREAS, the unrepresented management employees have also agreed to no increases in
the City's contribution to health care for the past two calendar years, while medical premiums have
increased in that same timeframe and will increase again in 2012; and
WHEREAS, the unrepresented management employees remain committed to providing
high quality service to the citizens of San Luis Obispo in an efficient and effective manner;
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis Obispo
hereby revises management compensation as follows:
SECTION 1. Unrepresented management employees will begin paying the full Member
Contribution to Ca1PERS (e.g. eight percent of salary for Miscellaneous employees and nine
percent of salary for Safety employees) and the City will no longer report to CAPERS the Member
Contribution as additional compensation, effective the first full payroll period in January 2012.
SECTION 2. There will be no across the board salary increases (e.g. "cost of living"
increases).
G: \CouncilWgenda reports\201 I \Management Comp Reso - December 6th\ATTACHMENT 1- Management Resolution 2012.doc
ATTACHMENT 1
Page 2 of 3
SECTION 3. There will be no increase to the City's health contribution.
SECTION 4. Cash out of administrative leave is eliminated.
SECTION 5. City Manager's car allowance as set forth in Resolution 9440 (2003
Series) is eliminated.
SECTION 6. The Mayor is hereby authorized to execute amended contracts with the
City Manager and the City Attorney reducing their compensation as specified in this resolution.
SECTION 7. The City shall continue to provide employees certain fringe benefits as set
forth in Exhibit "A ", fully incorporated by reference.
SECTION 8. Unrepresented management employees acknowledge the City's need to
achieve long term financial sustainability and pension cost reductions through the establishment
of a second tier retirement formula for new employees. If the City amends the CalPERS
Miscellaneous contract to provide a second tier retirement formula, management employees will
participate as required by CalPERS.
SECTION 9. All prior resolutions relating to management and appointed official
compensation and benefits are hereby superseded to the extent inconsistent with this resolution.
SECTION 10.This resolution shall be in effect from January 1, 2012 through December
31, 2013.
SECTION 11. The Director of Finance and Information Technology shall reduce the
appropriate accounts to reflect the compensation changes.
Upon motion of
seconded by
, and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 6th day of December, 2011.
Mayor Jan Marx
GACouncil\Agenda reports\201 EManagement Comp Reso - December 6thW.TTACHMENT 1- Management Resolution 2012.doc
ATTACHMENT 1
Page 3 of 3
ATTEST:
Elaina Cano
City Clerk
APPROVED AS TO FORM:
Richard C. Bolanos
Partner, Liebert Cassidy Whitmore
GACouncilWgenda reports\2011\Management Comp Reso - December 6th\ATTACHMENT 1- Management Resolution 2012.doc
ATTACHMENT 2
Page 1 of 2
RESOLUTION NO. (2011 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO CEASING
TO PAY AND REPORT THE VALUE OF EMPLOYER PAID MEMBER
CONTRIBUTIONS FOR APPOINTED OFFICIALS AND MANAGEMENT EMPLOYEES
AND SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the Council of the City of San Luis Obispo has the authority to implement
Government Code Section 20636(c) (4) pursuant to Section 20691; and
WHEREAS, the Council of the City of San Luis Obispo has a resolution which no longer
provides for the normal member contributions to be paid by the employer and reported as additional
compensation for appointed officials and management employees; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption
by the Council of the City of San Luis Obispo of a Resolution to no longer pay and report the value
of said Employer Paid Member Contributions (EPMC); and
WHEREAS, the governing body of the City of San Luis Obispo has identified the
following conditions for the purpose of its election to no longer pay EPMC;
• This benefit shall no longer apply to all employees of the Appointed Officials,
Department Heads, and Management classifications.
• Zero percent of the normal contributions will be paid as EPMC, and the same zero
percent (value) of compensation earnable {excluding Government Code Section
20636(c)(4)1 will be reported as additional compensation.
• The effective date of this Resolution shall be January 26, 2012;
NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of San Luis
Obispo hereby:
SECTION 1. Elects to no longer pay the EPMC, as set forth above, and therefore has
nothing to report as EPMC additional compensation.
SECTION 2. Directs that prior resolutions relating to management and appointed
official compensation and benefits are hereby superseded to the extent inconsistent with this
resolution.
Upon motion of
_ , and on the following vote:
, seconded by
AYES:
GACouncil\Agenda reports\201 lWanagement Comp Reso - December 6th\ATTACHMENT 2- Management Resolution 2012EPMCMI.doc
NOES:
ABSENT:
The foregoing resolution was adopted this 6th day of December, 2011.
Mayor Jan Marx
ATTEST:
Elaina Cano
City Clerk
APP ED AS TO FORM:
Richard C. Bolanos
Partner, Liebert Cassidy Whitmore
ATTACHMENT 2
Page 2 of 2
GACouncilWgenda reports\201 Management Comp Reso - December 6th\ATTACHMENT 2- Management Resolution 2012EPMCMI.doc
ATTACHMENT 3
AMENDED CONTRACT OF EMPLOYMENT WITH KATIE E. LICHTIG
CITY MANAGER
THIS CONTRACT is enteFe,+ ;„+ ^amended as of this 15th -6th day of
December, 2009 -2011 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
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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 Pay -fer_Perfermonr0e c teR;Compensation
Resolution (Resolution No. 10036 (2008 Series) and any successors.
D Notwithstanding Section 2(C), KATIE 1,JCH i IC agrees that she will
not receive any across the board salary increa es (e .q. "cost of living" increases)
from January 1, 2012 through December 31, 2013 pursuant to the Reduction in
M inngement Compensation Resolution (Resolution No. (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 Resoluti(Al. Resolution No. ( 2011. Series),
.LReselutien 9440 (2003 , 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.
(2011 Series))
Section 4. — Performance Evaluation.
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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 systems.
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
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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.
I 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,
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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. 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
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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:
(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.
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IN WITNESS WHEREOF, CITY and EMPLOYEE have executed this
Contract on the day and year first set forth above.
KATIE E. LICHTIG
DATE
JAN MARX, MAYOR DATE
ATTEST:
ELAINA CANO
CITY CLERK
I
APPROVED AS TO FORM:
RI HARD C. BOLANOS
PARTNER, LIEBERT CASSIDY WHITMORE
DATE
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ATTACHMENT 4
AMENDED CONTRACT OF EMPLOYMENT WITH J. CHRISTINE DIETRICK
CITY ATTORNEY
THIS CONTRACT is on+ ^r^d ;„+ ^amended this 15th 6th day of December,
2089 -2011 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 703 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:
I Section 1. — Effective Date..
I 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.
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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, a starting annual base salary of $155,000
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 P. fgr_PegepmaRGe
Sy�temCompensation '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 hoard salary increases (e.g. "cost of living"
increases) from January 1. 2012 through December 31, 2013 Dursuant to the
Reduction in Management Compensation Resolution (Resolution No.
(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. ( 201 i:AGG36(2008 Series` °nom' ._.___
I 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
2
accordance with the adopted Appointed Officials Evaluation Process and
adopted Management Pay- for - Performance System, or any successor systems.
I 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
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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 (Rg5 elution No.
(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
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(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.
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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:
ELAINA CANO
CITY CLERK
APPROVED AS TO FORM:
RICHAR C. BOLANO
PARTNER, LIEBERT CASSIDY WHITMORE
DATE
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