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HomeMy WebLinkAbout1990-08-28 - AGENDA REPORTS - EMPLOYMENT AGMT CARAVALHO (2)AGENDA REPORT.. City Manager Approval Item to be presented by: CONSENT CALENDAR DATE: August 28, 1990 SUBJECT: Employment Agreement DEPARTMENT: City Manager's Office BACKGROUND George Caravalho This item relates to amending the Employment Agreement between the City Council and the City Manager. A discussion was held as part of the City Manager Evaluation and Team Building session. This Agreement was approved in concept by the Council and has been reviewed by the City Attorney. This Agreement will be for a three (3) year period with a renewal on an annual basis. Other changes include clarification of expenses for service organizations, and brings the City Manager's Administrative Leave provision in line with the other Executive Management employees. Approve Employment Agreement. ATTACHMENTS Employment Agreement document. N V7561 ED Agenda Item: �1 0 CITY MANAGER EMPLOYMENT THIS AGREEMENT, made and entered into this 28th day of August, 1990, by and between the City of Santa Clarita, a Municipal corporation (hereinafter called "the Employer"), and GEORGE A. CARAVALHO (hereinafter called "the -Employee"), both of whom understand as follows: WHEREAS, the governing body of the City of Santa Clarita (hereinafter called "the City Council"), desires to retain the services of the Employee as City Manager, as that office is created in Chapter 2.08 of the Municipal Code of the City of Santa Clarita; and WHEREAS, it is the desire of the City Council to • provide certain benefits and establish certain terms and conditions of employment, as set forth herein. NOW, THEREFORE, in consideration of mutual covenants herein contained, the parties agree -as follows: Section 1. Duties. The City Council hereby agrees to employ the employee as City Manager of the City of Santa Clarita, to perform the functions and duties of the City Manager as specified in Chapter 2.08 of the Santa Clarita Municipal Code, and to perform other legally permissible and proper duties. and functions consistent with the office of the City Manager, as the City Council shall from time to time assign. 17J -1- Sectio . Term. 0 A. The term of this Agreement shall be. for three . years from the date of the execution by the partiesto the Agreement, in the event written notice is not given by the Employer to the Employee 30 days prior to each anniversary date of this Agreement, this Agreement shall be successively extended on the same terms and conditions as herein provided, for an additional period of one year. The issue of extension or non -extension of the agreement should be considered and acted upon by Employer at the time of the annual evaluation of Employee as provided for in Sec. 16. During the term of this Agreement, the.Employee shall be a full-time City Manager. The Employee shall be permitted to engage in teaching, at the Employee's sole expense, for not to exceed six (6) hours per week maximum, and only to the extent and manner to assure that • such activities do not, in the City Council's opinion, interfere with the Employee's performance as a full-time City Manager. B. Nothing in this Agreement shall prevent, limit or otherwise. interfere with the right of the City Council to terminate the services of the Employee, subject to the conditions of this Agreement, at any time, at the sole discretion of the City Council, as provided in Section 2.08.100 of the Municipal Code of the City of Santa Clarita. C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with the Employer. The Employee shall give forty-five (45) days written notice to the Employer • prior to the effective date of resignation, or such lessor period as may be agreed upon by Employer and Employee. -2- • 0 • Section 3. Salary. The Employer agrees to pay the Employee for services rendered, as provided herein, one hundred five thousand two hundred thirty-six and 28/100, ($105,236.28) dollars, payable in installments at the same time and in the same manner as other employees of the City are paid. In addition, the Employer agrees to adjust the salary base or other benefits of the Employee, or both the salary base and benefits of the Employee, in such amounts made at the same time and in the same manner as consideration is given to other management employees with the City. Section 4. Deferred Compensation. The Employer agrees to continue a deferred • compensation program for the Employee and deposit six hundred and twenty-five ($625.00) dollars per .month toward this program, which became effective January 1, 1989. The first such payment was made in January, 1989. Section 5. Pension. The Employer agrees to enroll and continue the Employee as a member of the Public Employee Retirement System (PERS) and will pay for the. Employee's portion of the contribution (7%) into the System. Additionally, the Employer agrees to make available a military service credit provision in its PERS contract. The Employee shall be responsible for the Employer's and the Employee's prior service cost. 0 -3- Section 6. Health Insurance. The Employer agrees to provide the Employee with the same health, dental and optical insurance coverage as is provided other miscellaneous employees of the City. Section 7. Long -Term Disability Insurance. The Employer agrees to provide the Employee with a long-term disability program that is mutually acceptable to both the City Council and the Employee, with coverage generally as follows: (a) Each disability: 66-2/3% of salary; (b) Maximum $4,000.00 monthly; (c) Thirty (30) day waiting period. Section 8. Life Insurance. The Employer agrees to pay up to $2,400.00 annually for a life insurance policy of the Employee's choice on the Employee's life. The Employer also agrees to provide the Employee with the term life insurance equal to twice the Employee's annual salary. Section 9. Physical Examination. The Employer shall bi-annually provide the Employee with a physical examination by a qualified physician. Such physical examination shall include the treadmill cardiovascular evaluation. -4- 0 Section 10. Automobile. The Employee -'s duties require the exclusive and unrestricted use at all times during the duration of this Agreement of an automobile provided by the Employer. The Employer shall be responsible for paying liability, property damage, and comprehensive insurance for the purchase, operation, maintenance, repair and replacement of such an automobile. Section 11. Expense. A. The Employer agrees to budget and to pay the professional dues and subscriptions on behalf of the Employee which are reasonably necessary for the Employee's continuation and full participation in two (2) national, regional, state, or local associations and organizations necessary and desirable for the Employee's continued professional participation, growth and advancement, or for the good of the City. In addition, the Employer agrees to pay a maximum of $1,000 per calendar year toward the Employee's participation in local service organizations. Furthermore, the Employer shall budget and pay for the professional. dues and subscriptions to such additional organizationsasapproved by the City Council. B. The Employer agrees to budget and to pay the travel and subsistence expenses of the Employee for official travel, meetings, and occasions reasonably adequate to continue the professional development of the Employee and reasonably pursue necessary official and other functions for the City, -5- ! 0 including, but not limited to, national, regional, state, and local conferences, governmental groups and committees upon which the Employee serves as a member. Section 12. Vacation and Sick Leave. A. The Employee shall have twenty (20) days paid vacation leave at the date of the commencement of employment and shall accrue twenty (20) days vacation each subsequent year thereafter, in addition to recognized City holidays. S. The Employee shall have twelve (12) days of sick leave on the date of the commencement of employment and annually shall accrue a rate of twelve (12) days each subsequent year thereafter. The Employer shall develop a policy to include consideration of the PERS option to allow accumulated sick leave time to be added to the service time for retirement purposes. Section 13. Administrative Leave. The Employer agrees to provide the Employee with *twelve (12) days of annual administrative leave. *This is consistent with the Administrative Leave defined in Resolution 90-113 adopted on June 26,1990. -6- 0 Section 14. Termination_ and Severance Pay. • A. In the event the Employee is terminated pursuant to Section 2.08.100 of the Municipal Code of the City of Santa Clarita during the term of this Agreement, and during such time as the Employee is willing and able to perform duties under this Agreement, the Employee shall be entitled to a cash payment of compensation equal to the salary specified in Section 3, and benefits specified in Sections 4,5,617,8 & 9 due for a period of two (2) years following the effective date of the termination. • B. If at any time during the term of this Agreement the City Council reduces the salary or other financial benefits of the Employee in greater percentage than an applicable across-the-board reduction to all City employees, or the City Council refuses, following written notice, to comply with any provision of this Agreement benefitting the Employee, or the Employee resigns at the request of a majority of the members of the City Council, the Employee may, .at his option, be deemed terminated and entitled to severance pay as provided in Section 14A. Section 15. Election Protection. The City Council agrees to not terminate the Employee during any ninety (90) calendar day period after a City Council election without the payment of additional severance allowance. This additional severance allowance will offer. new City Council members an.opportunity to.work -7- with and observe the Employee prior to taking any action. if the City Council does terminate the Employee within ninety (90) • days after a City Council election, the -Employee shall be entitled to a severance pay of ninety (90) calendar days in addition to the severance pay allowed by Section 14 of this Agreement. Section 16. Performance Evaluation. A. Annually, the City- Council and the Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the City in the attainment of the City Council's policy objectives, and the City Council and the Employee shall further establish a relative priority among those various goals and objectives to be reduced to writing. This evaluation shall be obtainable generally within the time limits as specified in the annual operating and capital budgets and appropriations provided. B. The City. Council shall review and evaluate the performance of the Employee at least once annually. The annual review and evaluation shall be in accordance with specific criteria developed jointly by the City Council and the Employee. Such criteria may be added to or deleted as the City Council may from time to time determine in consultation with the Employee. C. In recognition of accomplishments of objectives and excellent performance, a merit increase may be granted to the Employee. is D. In giving effect to the provisions of this section, the City Council and the Employee mutually agree to abide by all provisions of applicable -law. Section 17. Other Terms and Conditions of Employment. A. The City Council, in consultation with the Employee, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the Employee, provided such other terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, any ordinance or resolution of the.City, or any other applicable law. B. Fringe benefits and working conditions applicable generally to management employees of the Employer, as such rules now exist or hereinafter may be emended, shall also apply to the Employee, except where such fringe benefits and working conditions are contained within this Agreement or are inconsistent with the terms contained herein. Section 18, General Provisions. A. The text herein shall constitute the entire Agreement between the parties as to the subject matter hereof. -9- • B. This Agreement shall be, binding upon, and insure, where applicable, to the benefit of the heirs at law and executor of the Employee. C. If any provision or any portion hereof is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion hereof shall be deemed severable, shall not be affected, and shall remain in full force and effect. D. This Agreement may be amended only in writing. Section 19. Notices. Notices pursuant to this Agreement shall be given by depositing such notice in the custody of the United States postal service, postage prepaid, address as follows: . City Council City of Santa Clarita 23920 Valencia Blvd., #300 Santa Clarita, -CA 91355 -OR- George A. Caravalho 25257 N. Avenida Rondel Santa Clarita, CA 91355 Alternatively, any notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice at the date such notice is given. Notice shall be deemed given as of the date of personal service -10- • E • 0 or as of the date of deposit of such written notice in the course of transmission in the United States postal service. Section 20. Cancel Prior Agreement. This Agreement cancels and supercedes any and all prior employment agreements between the Employee and the Employer. INWITNESS WHEREOF, the parties have executed this Agreement the day and year first above write /% DATED: 1990 DATED: 1990 APPROVED AS TO FORM: City Attorney -11- George A. Caravalho CITY OF SANTA CLARITA, A General Law City, 'M_1 ATTEST: Mayor City Clerk