HomeMy WebLinkAbout04-16-2019 Item 05, Appointed Officials Compensation Department Name: Human Resources
Cost Center: 2007
For Agenda of: April 16, 2019
Placement: Consent
Estimated Time: NA
FROM: Mayor Heidi Harmon
PREPARED BY: Monica Irons, Director of Human Resources
SUBJECT: APPOINTED OFFICIALS’ COMPENSATION
RECOMMENDATION
1. Adopt a resolution (Attachment A) approving an amendment to the City Manager’s
employment contract (Attachment B);
2. Adopt a resolution (Attachment C) approving an amendment to the City Attorney’s
employment contract (Attachment D); and
3. Aut horize the Mayor to execute amended contracts of employment with the City Manager
and City Attorney adjusting their respective salaries and providing a cash out of accrued
vacation for the City Manager.
Background
In 1999 Council implemented a structured annual evaluation to formally review the performance
of its two appointed officials, the City Manager and City Attorney.
The process is facilitated by a consultant who collects Council input on appointed officials’
performance in the areas of their pro fessional relationship with each respective staff, legal
advocacy (City Attorney only), leadership, community relations, financial management (City
Manager only), and their progress achieving major Council adopted goals. Council reviews a
summary prepared by the consultant, based upon two sources 1) data collected from appointed
officials’ direct reports and peers concerning their experience with both appointed officials, and
2) individual interviews by each Council member. The draft performance evaluatio n documents
are discussed with Council as a whole and finalized. Council also reviews and approves goals
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 comprehensive and constructive feedback. The process
also includes Council approved individual goals against which the next year’s performance is
evaluated.
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2019 Compensation Considerations
This process also includes review and annual consideration of appointed official compensation.
Council met with the consultant in closed session on March 7, 2019 , to discuss the appointed
officials’ performance. Council concluded that the appointed officials had met or exceeded
performance expectations in all categories and accomplished the 2018 -19 goals provided by
Council.
Council carefully considered several factors in determining compensation adjustments for the
appointed officials including performance and the desire to retain both appointed officials, the
leadership and skills necessary to navigate complex issues facing the City, comparative market
data, the cost of replacing either or both of the appointed officials, and the fiscal sustainability of
the City. After careful consideration, Council agreed to provide a three percent merit increase in
the City Manager’s salary and a five percent merit increase in the City Attorney’s salary.
Increases for the appointed officials are cons istent with pay for performance guidelines used with
Department Head and management employees that provide for two to six percent merit
increases.
In addition, Council authorized a one-time cash-out of 107 hours of accrued but unused vacation
for the City Manager in April 2019. Given the demands of transitioning to the role of City
Manager, critical staff vacancies, and several high priority issues, the City Manager has not taken
advantage of earned vacation. This one-time cash-out of vacation affords the City Manager
additional one-time compensation in recognition of the sacrifices he has made during the past
year to lead the City, while not affecting on-going or pensionable compensation. Slight
modification to the vacation cash out language in both the City Manager and City Attorney
contracts now provides flexibility to exchange up to 40 hours of vacation for cash compensation
annually if they reach the vacation cap prior to fiscal or calendar year end, consistent with cash
out provisions for other emplo yee groups.
Policy Context
The appointed officials’ evaluations were conducted in accordance with the Appointed Officials
Evaluations Guide. The recommendations in this report are consistent with the Council adopted
Compensation Philosophy.
Public Engagement
Compensation for appointed officials in local and comparison agencies was considered by
Council. No other public engagement was conducted as appointed officials are appointed and
serve at the will of the Council.
CONCURRENCE
No other departments were asked to review this report as the appointed officials’ evaluations and
compensation are the authority of the Council.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
FISCAL IMPACT
Budgeted: No Budget Year: 2018-19
Funding Identified: Yes, a contingency fund exists for negotiated increases.
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $14,000 $16,200
State
Federal
Fees
Other:
Total $14,000 $16,200
The City Manager’s vacation cash out the first full pay period in April w ill result in
approximately $10,900 one-time fiscal impact. Increases to the salaries of the City Manager and
City Attorney effective the second full pay period in April will result in an ongoing increase of
approximately $3,100 through the end of the 2018-19 fiscal year. The annualized on-going
impact of the salary increases is $16,200. There is sufficient funding in existing resources to
cover the one-time and ongoing increases.
ALTERNATIVES
Renegotiate adjustments to the City Manager and City Attorney compensation based on new or
different information. This alternative is not recommended because this process represents a
good faith negotiation between the employees and the Council.
Attachments:
a - 2019 City Manager Resolution
b - Amendment to the City Manager’s Employment Contract(Legislative Draft)
c - 2019 City Attorney Resolution
d - Amendment to the City Attorney’s Employment Contract (Legislative Draft)
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT
FOR CITY MANAGER
WHEREAS, on September 29, 2017 the City Council approved a contract of employment
appointing Derek Johnson to the position of City Manager; and
WHEREAS, the City Council conducted performance evaluations of this appointed
official on March 7, 2019, in accordance with the Appointed Officials’ Performance Process as
modified in December of 2011.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Council hereby approves the amended contract of employment
attached hereto as Exhibit A.
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Resolution No. _____ (2019 Series) Page 2
R ______
SECTION 2. The City Council shall evaluate the performance of the City Manager
annually.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The forego ing resolution was adopted this 16th day of April 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
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AMENDED CONTRACT OF EMPLOYMENT
WITH DEREK J. JOHNSON CITY MANAGER
THIS CONTRACT is entered into as of this April 16, 2019 by and between
the CITY OF SAN LUIS OBISPO, State of California (hereinafter referred to as
"CITY"), and DEREK J. JOHNSON, a contract employee (hereinafter referred to
as " DEREK J. JOHNSON”);
WITNESSETH:
W HEREAS, 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
W HEREAS, the COUNCIL, on behalf of the CITY acknowledges and
accepts the responsibility for supervision of the CITY MANAGER; and
W HEREAS, the COUNCIL wishes to appoint a CITY MANAGER and to set
the terms and conditions of said employment; and
W HEREAS, DEREK J. JOHNSON desires to accept the position of CITY
MANAGER consistent with certain terms and conditions of said employment, as
set forth in this CONTRACT.
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of DEREK J. JOHNSON is effective September 29,
2017.
B. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of the COUNCIL to terminate the services of DEREK J. JOHNSON at any
time, subject only to San Luis Obispo CITY Charter Section 709 and the provisions
set forth in Section 12 of this Contract.
C. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of DEREK J. JOHNSON to resign at any time from his position with the
CITY, subject only to the provision set forth in Section 13 of this Contract.
Section 2. Duties and Salary.
A. CITY agrees to employ DEREK J. JOHNSON as full-time City
Manager of the City to perform the functions and duties specified in the Charter
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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. It is recognized DEREK J. JOHNSON is an exempt employee but is
expected to engage in those hours of work that are necessary to fulfill the
obligations of the City Manager’s position. The parties acknowledge DEREK J.
JOHNSON will not regularly participate in a formal 9-80 work schedule as is
provided to department heads and certain ot her City employees as part of the
City’s Trip Reduction Incentive Program. However, DEREK J. JOHNSON is
authorized, with appropriate notification to Council, to from time to time modif y his
regular work schedule in order to take time off with pay while ensuring appropriate
coverage of his duties as City Manager. Leave pursuant to this provision shall not
be used in lieu of vacation or administrative leave.
C. COUNCIL agrees to pay DEREK J. JOHNSON, for his services
rendered pursuant hereto, a starting annual base salary of $ 218,374 payable in
installments at the same time as the ot her management employees of the CITY
are paid. In addition, COUNCIL agrees to increase said base sala ry by the cost-
of-living adjustment approved by the COUNCIL for all CITY management
employees under any successor Management Compensation Resolutions .
Section 3. Benefits.
A. In addition to the salary set forth in Section 2 of this CONTRACT, DEREK
J. JOHNSON shall be entitled to a car allowance of $450 per month, a City
contribution of 3.5% of salary to a 401 (a) supplemental retirement plan,
decreasing to 2.5% of salary effective in August 2018, the ability to cash out up to
three weeks’ vacation at the end of each fiscal year or upon reaching the vacation
accrual cap during the year , upon the request of DEREK J. JOHNSON, and the
same benefits as those offered by the CITY to the CITY MANAGER, in accordance
with the Resolution 10922 (2018 Series), Resolution 8661 (1997 series) and any
successors. A one-time cash out of 107 hours of accrued vacation effective April
?, 2019 in recognition of JOHNSON’S commitment and leadership and limited
ability to use vacation during 2018-19.
Section 4. Performance Evaluation.
A. Upon appointment to the position of City Manager DEREK J.
JOHNSON will assume the goals established by Council for the former City
Manager until such time as DEREK J. JOHNSON and Council mutually agree on
new goals. On or before January 31, 2018, Council will provide feedback to
DEREK J. JOHNSON on performance to goals and expectations. Further, Council
shall conduct an “interim” evaluation by March 30, 2018. An annual formal Council
evaluation will be conducted in March of 201 9 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
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performance as assessed by the COUNCIL, the CITY MANAGER compensation
shall be reviewed by COUNCIL no later than April 2019.
B. Each calendar year thereafter, COUNCIL shall review and evaluate
the performance and compensation of DEREK J. JOHNSON in accordance with
the adopted Appointed Officials Evaluation Process , best management practices,
and informed by comparison agency data .
Section 5. Outside Activities, Conduct and Behavior.
A. DEREK J. JOHNSON shall not engage in teaching, consulting or
other non-CITY connected business without the prior approval of COUNCIL.
B. DEREK J. JOHNSON shall comply with all local and state
requirements regarding conflicts-of-interest.
Section 6. Dues and Subscriptions.
COUNCIL agrees to budget for and to pay for professional dues and
subscriptions of DEREK J. JOHNSON necessary for his continuation and full
participation in national, regional, state, and local ass ociations, and organizations
necessary and desirable for his continued professional participation, growth, and
advancement, and for the good of the CITY.
Section 7. Professional Development.
A. COUNCIL hereby agrees to budget for and to pay for trave l and
subsistence expenses of DEREK J. JOHNSON for professional and official travel,
meetings, and occasions adequate to continue the professional development of
DEREK J. JOHNSON and to adequately pursue necessary official functions for the
CITY, including but not limited to the League of California Cities meetings and
conferences, International City/County Managers’ Association and such other
national, regional, state, and local governmental organizations, groups and/or
committees.
B. COUNCIL also agrees to budget for and to pay for travel and subsi stence
expenses of DEREK J. JOHNSON for short courses, institutes, and seminars that
are necessary for his professional development and for the good of the CITY.
C. Other professional development may be agreed upon from time to time
between the COUNCIL and DEREK J. JOHNSON.
Section 8. General Expenses.
COUNCIL recognizes that certain expenses of a non -personal and job-
affiliated nature are incurred by the CITY MANAGER, and hereby agrees to
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authorize the Finance Director to reimburse or to pay said general and reasonable
expenses, consistent with CITY policies, upon receipt of duly executed expense or
petty cash vouchers, receipts, statements or personal affidavits.
Section 9. Indemnification.
In addition to that required under state and local law, CITY shall defend,
save harmless, and indemnify DEREK J. JOHNSON against any claims, demands,
causes of actions, losses, damages, expenses (including but not limited to
attorney’s fees as may be authorized against public entities or officers consistent
with state law) or liability of any kind whether stated in or arising from tort,
professional liability or any other legal action or equitable theory, whether
groundless or otherwise arising out of an alleged act or omission occurring in the
performance of DEREK J. JOHNSON’s duties as CITY MANAGER to the fullest
extent permitted by law. CITY may compromise and settle any such claim or suit,
and shall pay the amount of any settlement or judgment rendered thereon.
Section 10. Other Terms and Conditions of Employment.
The COUNCIL, in consultation with DEREK J. JOHNSON, shall fix any such
other terms and conditions of employment, as it may determine from time to time,
relating to the performance of DEREK J. JOHNSON, provided such terms and
conditions are not inconsistent with or in conflict with the provisions of this
CONTRACT, the CITY Charter or any other law.
Section 11. No Reduction of Pay and/or Benefits.
COUNCIL shall not at any time during the term of this CONTRACT, reduce
the salary, compensation or other financial benefits of DEREK J. JOHNSON,
except to the degree of such a reduction across -the-board for all employees of the
CITY or DEREK J. JOHNSON provides written consent to the reduction.
Section 12. Termination and Severance Pay.
A. In the event DEREK J. JOHNSON’s employment is terminated by
the COUNCIL without cause, or he resigns at the request of a majority of the
COUNCIL during such time that he is ot herwise willing and able to perform the
duties of CITY MANAGER, and if DEREK J. JOHNSON signs, delivers to the City
Council, and does not revoke, the General Release Agreement in the form
attached hereto as Exhibit A, the COUNCIL agrees to pay hi m a lump sum cash
payment equal to six (6) months compensation. For the purposes of this clause
“compensation” shall include base salary, car allowance, City contribution to
deferred compensation, and City contribution to health insurance at time of
separation as well as cash out of accrued Administrative Leave and cash out of a
portion of accrued sick leave as if CITY MANAGER was retiring as provided in the
Management Compensation Resolution 10785 (2017 Series) and any successors.
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B. In the event that DEREK J. JOHNSON is terminated for “good cause”
the COUNCIL shall have no obligation to pay the lump sum severance payment
mentioned above. For the purpose of this CONTRACT, “good cause” shall mean
any of the following:
(1) Malfeasance, dishonesty for personal gain, willful violation of law,
corrupt misconduct, or conviction of any felony.
(2) Conviction of a misdemeanor arising directly out of DEREK J.
JOHNSON’s duties pursuant to this Agreement.
(3) Willful abandonment of duties outlined in this Agreement.
“Good cause” shall not mean a mere loss of support or confidence by a
majority of the COUNCIL.
C. Any termination of employment shall be done consistent with
limitations established in the City Charter Section 709. Additionally, the CITY shall
provide a minimum of 30 days prior written notice to DEREK J. JOHNSON of the
intent to terminate this Agreement.
D. In the event the CITY terminates the CITY MANAGER for any reason
or no reason, the CITY and the CITY MANAGER agree that no member of the
COUNCIL, the City Management staff, nor the CITY MANAGER, shall make any
written, oral or electronic statement to any member of the public, the press, or any
city employee concerning the CITY MANAGER’S termination except in the form of
a joint press release or statement, the content of which is mutually agreeable to
the City and the CITY MANAGER. The joint press release or statement shall not
contain any text or information that is disparaging to either party. Either party may
verbally repeat the substance of the joint press release or statement in response
to an inquiry. Nothing herein shall be construed to prevent the City from referring
to or responding to inquiries about third party or outside agency investigations or
actions pertaining to the official performance of the CITY MANAGER.
Section 13. Resignation.
In the event DEREK J. JOHNSON voluntarily resigns his position with the
CITY, he shall give the COUNCIL at least 45 days advance written notice.
Section 14. General Provisions.
A. The text herein shall constitute the entire CONTRACT between the
parties.
B. This CONTRACT shall be binding upon and inure to the benefit of
the heirs at law and executors of the parties.
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C. It is the intent of the COUNCIL that this CONTRACT and the
appointment of DEREK J. JOHNSON as CITY MANAGER are in accordance with
the requirements and provisions of the Charter. W herever 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 W HEREOF, CITY and EMPLOYEE have executed this
Contract on the day and year first set forth above.
_____________________________ _______________
DEREK J. JOHNSON DATE
_____________________________ ________________
HEIDI HARMON, MAYOR DATE
ATTEST:
_____________________________ ________________
TERESA PURRINGTON DATE
CITY CLERK
APPROVED AS TO FORM:
__________________________________
J. CHRISTINE DIETRICK
CITY ATTORNEY
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RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING A CONTRACT OF EMPLOYMENT
FOR CITY ATTORNEY
WHEREAS, on January 2, 2010 the City Council approved a contract of employment
appointing Christine Dietrick to the position of City Attorney; and
WHEREAS, the City Council conducted performance evaluations of this appointed
official on March 7, 2019, in accordance with the Appointed Officials’ Performance Process as
modified in December of 2011.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The City Council hereby approves the amended contract of employment
attached hereto as Exhibit A.
SECTION 2. The City Council shall evaluate the performance of the City Attorney
annually.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The forego ing resolution was adopted this 16th day of April 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2019 Series) Page 2
APPROVED AS TO FORM:
_____________________________________
Roy Hanley
Interim Assistant City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
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AMENDED CONTRACT OF EMPLOYMENT
WITH J. CHRISTINE DIETRICK, CITY ATTORNEY
THIS CONTRACT is amended this 16th day of April, 2019 by and between
the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city
(hereinafter referred to as "CITY"), and J. CHRISTINE DIETRICK, a contract
employee (hereinafter referred to as "CHRISTINE DIETRICK”);
WITNESSETH:
WHEREAS, Charter Section 701 provides that the SAN LUIS OBISPO CITY
COUNCIL (hereinafter referred to as “COUNCIL”) is responsible for the
appointment and removal of the CITY ATTORNEY, and
WHEREAS, the COUNCIL, on behalf of the CITY acknowledges and
accepts the responsibility for supervision of the CITY ATTORNEY; and
WHEREAS, the COUNCIL is desirous of appointing a CITY ATTORNEY
and wishes to set the terms and conditions of said employment; and
WHEREAS, CHRISTINE DIETRICK desires to continue in her position of
CITY ATTORNEY consistent with certain terms and conditions of said
employment, as set forth in this CONTRACT.
NOW, THEREFORE, the parties do mutually agree as follows:
Section 1. Effective Date.
A. The appointment of CHRISTINE DIETRICK is effective January 1,
2010.
B. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of the COUNCIL to terminate the services of CHRISTINE DIETRICK at
any time, subject only to San Luis Obispo CITY Charter Section 709 and the
provisions set forth in Section 12 of this Contract.
C. Nothing in this Contract shall prevent, limit or otherwise interfere with
the right of CHRISTINE DIETRICK to resign at any time from her position with the
CITY, subject only to the provision set forth in Section 13 of this Contract.
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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, an annual base salary of $ 206,622 payable in
installments at the same time as the other management employees of the CITY
are paid. In addition, COUNCIL agrees to increase said base salary by the cost -
of-living adjustment approved by the COUNCIL for all CITY management
employees under any successor Management Compensation Resolutions.
Section 3. Benefits.
In addition to the salary set forth in Section 2 of this CONTRACT,
CHRISTINE DIETRICK shall be entitled to a car allowance of $250 per month, a
City contribution of 3.5% of salary to a 401(a) supplemental retirement plan ,
decreasing to 2.5% of salary effective in August 2018, the ability to cash out up to
three weeks’ vacation at the end of each fiscal year or upon reaching the vacation
accrual cap during the year, upon CHRISTINE DIETRICK’S request, and the same
benefits as those offered by the CITY to the CITY ATTORNEY, in accordance with
the Management Compensation Resolution, Resolution No. 10920 (2018 Series)
and any successors.
Section 4. Performance Evaluation.
A. By April 30, 2010, COUNCIL and CHRISTINE DIETRICK shall
establish mutually agreeable written goals, performance objectives, and priorities
for the performance period ending March 30, 2011. Further, Council shall conduct
an “interim” evaluation by October 29, 2010. An annual formal Council evaluation
will be conducted in March of 2011 in accordance with the City ’s Appointed Official
Evaluation Process. Consistent with the schedule outlined above, based on the
Appointed Officials Evaluation Process, and subject to performance as assessed
by the COUNCIL, the CITY ATTORNEY compensation shall be reviewed by
COUNCIL in April 2011 consistent with the Management Pay-for-Performance
System in place at that time.
B. Each calendar year thereafter, COUNCIL shall review and evaluate
the performance and compensation of CHRISTINE DIETRICK in accordance with
the adopted Appointed Officials Evaluation Process , best management practices,
and informed by comparison agency data.
Section 5. Outside Activities, Conduct and Behavior.
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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 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
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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 provi sions of this
CONTRACT, the CITY Charter or any other law.
Section 11. No Reduction of Pay and/or Benefits.
COUNCIL shall not at any time during the term of this CONTRACT, reduce
the salary, compensation or other financial benefits of CHRISTINE DIETRICK,
except to the degree of such a reduction across -the-board for all employees of the
CITY or CHRISTINE DIETRICK provides written consent to the reduction.
Section 12. Termination and Severance Pay.
A. In the event CHRISTINE DIETRICK’S employment is terminated by the
COUNCIL, or she resigns at the request of a majority of the COUNCIL during such
time that she is otherwise willing and able to perform the duties of CITY
ATTORNEY, the COUNCIL agrees to pay her a lump sum cash payment equ al to
nine (9) months compensation (salary and all appointed officials fringe benefits).
Additionally, CITY shall extend to CHRISTINE DIETRICK the right to continue and
purchase at her expense health insurance pursuant to the terms and condition of
the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) or any
successor legal requirement. CHRISTINE DIETRICK is the CITY ATTORNEY for
the purposes of the benefits under the California Joint Powers Insurance Authority
of which the CITY is a member. An y 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:
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(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 pr ovisions 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.
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_____________________________ _______________
_____________________________ _______________
J. CHRISTINE DIETRICK DATE
______________________________ _______________
____________________________ ________________
HEIDI HARMON, MAYOR DATE
ATTEST:
____________________________ ________________
TERESA PURRINGTON DATE
CITY CLERK
APPROVED AS TO FORM:
ROY HANLEY
INTERIM ASSISTANT CITY ATTORNEY
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