CC - Item 6E - Consideration of Contract for City Manager/Interim City Manager Services' ROSEMEAD CITY COUNCIL
# _ STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCI
FROM: JEFF STEWART, INTERIM CITY MANAGER
DATE: MAY 12, 2009
SUBJECT: CONSIDERATION OF CONTRACT FOR CITY MANAGER/INTERIM
CITY MANAGER SERVICES
SUMMARY
The City Council is scheduled to conduct interviews in closed session with candidates
for the position of Interim City Manager on May 9, 2009. The identity of the person
selected to serve as Interim City Manager or City Manager, if any, will not be known
until after the completion of the interview process. If the City Council selects a
candidate, and if the Council is able to agree to terms on an interim employment
agreement with a candidate (other than compensation, which must be discussed in
open session), the item will be considered formally by the City Council on May 12, 2009.
If an Interim City Manager Services Agreement is prepared for consideration on the May
12, 2009 City Council agenda, a copy will be made available to the public at the same
time it is available to the City Council.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
JEFF STEWART
INTERIM CITY MANAGER
APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER:
CITY MANAGER
EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF ROSEMEAD
AND
JEFFRY B. ALLRED
This Employment Agreement (the "Agreement") is made and entered into effective May
12, 2009 by and between the City of Rosemead, California, a municipal corporation (the
"City") and Jeffry B. Allred, an individual (the "City Manager"). The City and the City
Manager are sometimes individually referred to as a "Party" and collectively as "Parties."
L RECITALS
(a) The City requires the services of a City Manager.
(b) The City Manager has the necessary education, experience, skills and expertise to
serve as the City's City Manager.
(c) The City Council of the City desires to employ the City Manager to serve as the
City Manager of City.
(d) The City Council of the City desires to provide certain benefits, establish certain
conditions of employment and to set working conditions of City Manager.
(e) The City Manager desires to accept at-will employment as City Manager of City.
(f) In consideration of these Recitals and the performance by the Parties of the
promises, covenants, and conditions herein contained, the Parties agree as
provided in this Agreement.
2. EMPLOYMENT
The City hereby employs the City Manager as its City Manager, and the City Manager
hereby accepts such employment.
(a) ' Period of Employment
(i) Employee shall, following the assumption of the office of City Manager
on June 15, 2009, remain in the exclusive employ of the City for an
indefinite term subject to the provisions contained in this Agreement and
the Rosemead Municipal Code concerning separation from service.
Employee agrees not to accept, nor to become employed by any other
employer until said termination date, unless said termination date is
effected as hereinafter provided.
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(b) Medical Exam/Fitness For Duty
Prior to assuming the office of City Manager on June 15, 2009, the City Manager
shall successfully complete a medical/fitness for duty exam, the cost of which will
be paid for by the City.
3. COMPENSATION
The City agrees to provide the following compensation to the City Manager during the
tern of the Agreement:
(a) Compensation
(i) Base Salary
(1) The annual salary for the position of City Manager shall initially
be $175,000.00.
(2) The City Manager shall be paid at the same intervals and in the
same manner as regular City employees.
(3) The City Manager's salary shall be increased commensurate with
the percentage increase approved by the City Council for other
City Department Heads.
(ii) Performance Evaluation
The City Council will review and evaluate the performance of the City
Manager from time to time. Failure of the City Council to provide a
performance evaluation shall not limit the City's ability to terminate this
Agreement pursuant to the terms set forth herein.
(b) Bonding
The City shall bear the full cost of any fidelity or other bonds required of the City
Manager under any law or ordinance.
(c) Benefits
The City Manager shall receive the benefits set forth and attached hereto as
Exhibit A, the City of Rosemead Benefits Summary - Executive Management
Team Members, which may be modified from time to time at the discretion of the
City Council.
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(d) Reimbursement
The City shall reimburse the City Manager for reasonable and necessary travel,
subsistence and other business expenses incurred by the City Manager in the
performance of his duties.
4. SEPARATION
(a) Resignation/Retirement
The City Manager may resign at any time and agrees to give the City at least 45
days advance written notice of the effective date of the City Manager's
resignation, unless the Parties otherwise agree in writing.
(b) Termination & Removal
(i) The City Manager is an at-will employee and serves at the pleasure of the
City Council.
(ii) Except as is provided in section 4(b)(iii) below, the City Council may
remove the City Manager at any time, with or without cause, by a majority
vote of its members. Notice of termination shall be provided to the City
Manager in writing. Termination as used in this agreement shall also
include requests that the City Manager resign, a reduction in salary or
other financial benefits of the City Manager (including a general City
Management salary reduction), a material reduction in the powers and
authority of the City Manager, or the elimination of the City Manager's
position. Any such notice of termination or act constituting termination
shall be given at or effectuated at a duly noticed regular meeting of the
City Council.
(iii) In accordance with section 2.08.060 of the City of Rosemead Municipal
Code, as may be modified from time to time, the City Manager shall not
be removed from office during or within a period of ninety (90) days next
succeeding any general municipal election held in the City at which
election a member of the City Council is elected; the purpose of this
provision is to allow any newly elected member of the City Council or a
reorganized City Council to observe the actions and ability of the City
Manager in the performance of the powers and duties of his or her office.
(iv) Given the at-will nature of the position of City Manager, an important
element of the employment agreement pertains to termination. It is in
both the City's interest and that of the City Manager that any separation of
the City Manager is done in a businesslike manner.
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(c) Severance Pay
(i) In the event the City Manager is terminated by the City Council during
such time that the City Manager is willing and able to perform the City
Manager's duties under this Agreement, then in that event the City agrees
to continue to compensate the City Manager at his then current rate of pay,
as severance pay, for a total of six months, including all benefits and
accrued leaves.
(ii) Commencing on June 15, 2010, the City Manager shall accrue an
additional one (1) month of severance pay, and an additional one (1)
month of severance pay every June 15 thereafter, up to a total of nine (9)
months of severance pay.
(d) Separation for Cause
(i) Notwithstanding the provisions of Section 4(c), the City Manager may be
terminated for cause. As used in this section, "cause" shall include but not
be limited to the following: theft or attempted theft; dishonesty; willful or
persistent material breach of City Manager's duties; repeated and
protracted unexcused absences from the City Manager's office; engaging
in unlawful discrimination or harassment of employees or any third party
while on City premises or time; conviction of a felony; and engaging in
conduct tending to bring embarrassment or disrepute to the City.
(ii) In the event the City terminates the City Manager for cause, except as set
forth in section 4(b)(iii) above, the City may terminate this Agreement
immediately, and the City Manager shall be entitled to only the
compensation accrued up to the date of termination, payments required by
Section 4(e) below, and such other termination benefits and payments as
may be required by law. In this circumstance, the City Manager shall not
be entitled to any severance benefits provided by Section 4(c).
(c) Payment for Unused Leave Balance
(i) On separation from City employment, the City Manager shall be paid for
all unused accrued leave allowances provided in Exhibit A, in accordance
with City policy or as required by law.
(ii) In the event the City Manager dies while employed by the City under this
Agreement, the City Manager's beneficiaries or those entitled to the City
Manager's estate shall be entitled to the City Manager's earned salary and
any in-lieu payments for accrued benefits, including compensation for the
value of all accrued leave balances provided in Exhibit A, in accordance
with City policy or as required by law.
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5.. DUTIES AND RESPONSIBILITIES
(a) Duties & Authority
(i) The City Manager shall be the chief executive officer of the City and be
responsible to the City Council for the proper administration of all affairs
of the City.
(ii) The City Manager shall perform all of the duties of the City Manager as
set forth in Section 2.08 of the Rosemead Municipal Code and as may be
modified from time to time, the California Government Code, and City
policies and procedures approved by the City Council, as may be provided
from time to time.
(b) ICMA Code of Ethics
(i) The Parties acknowledge that the City Manager is a member of the
International City Management Association (`ICMA"). The Parties
mutually desire that the City Manager be subject to and comply with the
ICMA Code of Ethics (Exhibit B).
(ii) The City Manager commits to comply with the ICMA Code of Ethics.
6. MISCELLANEOUS PROVISIONS
(a) Amendments
This Agreement may be amended at any time by mutual agreement of the City
and the City Manager. Any amendments are to be negotiated, put in writing, and
adopted by the City Council.
(b) Conflict of Interest
(i) The City Manager shall not engage in any business or transaction or shall
have a financial or other personal interest or association, direct or indirect,
which is in conflict with the proper discharge of official duties or would
tend to impair independence of judgment or action in the performance of
official duties. Personal as distinguished from financial interest includes
an interest arising from blood or marriage relationships or close business,
personal, or political associations. This section shall not serve to prohibit
independent acts or other forms of enterprise during those hours not
covered by active City employment, providing such acts do not constitute
a conflict of interest as defined herein.
(ii) The City Manager shall also be subject to the conflict of interest
provisions of the California Government Code and any conflict of interest
code applicable to the City Manager's City employment.
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(iii) The City Manager is responsible for submitting to the City Clerk the
appropriate Conflict of Interest Statements at the time of appointment,
annually thereafter, and at the time of separation from the position.
(c) Proprietary Information
"Proprietary Information" is all information and any idea pertaining in any
manner to the business of City (or any City affiliate), its employees, clients,
consultants, or business associates, which was produced by any employee of City
in the course of his or her employment or otherwise produced or acquired by or
on behalf of City. Proprietary Information shall include, without limitation, trade
secrets, product ideas, inventions, processes, formulae, data, know-how, software
and other computer programs, copyrightable material, marketing plans, strategies,
sales, financial reports, forecasts, and customer lists. All Proprietary Information
not generally known outside of City's organization, and all Proprietary
Information so known only through improper means, shall be deemed
"Confidential Information." During his employment by City, City Manager shall
use Proprietary Information, and shall disclose Confidential Information, only for
the benefit of City and as is or may be necessary to perform his job
responsibilities under this Agreement. Following termination, City Manager shall
not use any Proprietary Information and shall not disclose any Confidential
Information, except with the express written consent of City. City Manager's
obligations under this Section shall survive the tennination of his employment
and the expiration of this Agreement.
(d) Indemnification
Subject to, in accordance with, and to the extent provided by the California Tort
Claims Act [Government Code Section 810 et seg.], the City will indemnify,
defend, and hold the City Manager harmless from and against any action,
demand, suit, monetary judgment or other legal or administrative proceeding, and
any liability, injury, loss or other damages, arising out of any act or omission
occurring during City Manager's tenure as City Manager.
(e) Severability
If any clause, sentence, part, section, or portion of this Agreement is found by a
court of competent jurisdiction or arbitrator to be invalid, illegal, void or
unenforceable, such clause, sentence, part, section, or portion so found shall be
regarded as though it were not part of this Agreement and the remaining parts of
this Agreement shall be fully binding and enforceable by the Parties hereto.
(f) Laws Affecting Title
In addition to those laws affecting a City Manager, the City Manager shall have
the same powers, rights and responsibilities as a Chief Executive Officer, City
Administrative Officer, Administrator, and/or City Administrator as those terms
are used in local, state or federal laws.
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(g) Jurisdiction and Venue
This Agreement shall be governed by and construed in accordance with the laws
of the State of California, and the Parties agree that venue shall be proper only in
Los Angeles County, State of California.
(h) Integration
This Agreement is intended to be the final, complete, and exclusive statement of
the terns of the City Manager's employment by City. This Agreement
supersedes all other prior and contemporaneous agreements and statements,
whether written or oral, express or implied, pertaining in any manner to the
employment of City Manager, and it may not be contradicted by evidence of any
prior or contemporaneous statements or agreements. This Agreement represents
the entire agreement of the Parties, and no representations have been made or
relied upon except as set forth herein.
(i) Notice
All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be effective upon delivery by hand or three (3)
business days after deposit in the United States mail, postage prepaid, certified or
registered, and addressed to City at the address below, and or at the last known
address maintained in the City Manager's personnel file. City Manager agrees to
notify City in writing of any change in his address during his employment with
City. Notice of change of address shall be effective only when accomplished in
accordance with this Section.
(1) If to the City:
Rosemead City Hall
8838 East Valley Boulevard
Rosemead, CA 91770
ATTN: Mayor & City Council
(2) If to the City Manager:
Jeffry B. Allred
0) Assignment
City Manager shall not assign any rights or obligations under this Agreement.
City may, upon prior written notice to City Manager, assign its rights and
obligations hereunder.
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(k) Attorney's Fees
In any legal action, arbitration, or other proceeding brought to enforce or interpret
the terns of this Agreement, the prevailing party shall be entitled to recover
reasonable attorneys' fees and costs.
(1) Interpretation
This Agreement shall be construed as a whole, according to its fair meaning, and
not in favor of or against any Party. By way of example and not in limitation, this
Agreement shall not be construed in favor of the Party receiving a benefit nor
against the party responsible for any particular language in this Agreement.
Captions are used for reference purposes only and should be ignored in the
interpretation of the Agreement. This Agreement may be altered, amended or
modified only by an instrument in writing, executed by the City Council and City
Manager and by no other means. Each Party waives their future right to claim,
contest or assert that this Agreement was modified, cancelled, superseded or
changed by any oral agreement, course of conduct, waiver or estoppel.
(m) Acknowledgment
City Manager acknowledges that he has had the opportunity to consult legal
counsel in regard to this Agreement, that he has read and understands this
Agreement, that he is fully aware of its legal effect, and that he has entered into it
freely and voluntarily and based on his own judgment and not on any
representations or promises other than those contained in this Agreement.
(continued on next page)
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7. EXECUTION
IN WITNESS WHEREOF, the Parties have executed this Agreement, as of the date
first indicated above.
City City Manager
CITY OF ROSEMEAD Jeffry B. Allred
A Municipal Corporation An Individual
By:
Margaret Clark
Mayor
ATTEST:
By:
Gloria Molleda
City Clerk
APPROVED AS TO FORM:
By:
Joseph M. Montes
Interim City Attorney
Jeffry B. Allred
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EXHIBIT A
CITY OF ROSEMEAD
BENEFITS SUMMARY - EXECUTIVE MANAGEMENT TEAM MEMBERS
RETIREMENT- PERS
6% Team member share paid by City
2.7% @ 55 formula
> Single highest year calculation
PARS Retirement Supplement that can enhance the
retirement benefit to 3% @ 55 after 20 years
For eligible team members: Team member and
spouse retiree medical benefits until Medicare
eligible
> Sick Leave Credit
WELLNESS PROGRAM (FISCAL YEARI
The City will reimburse team members up to $500/flscal
year towards the cost of engaging in a pre-approved
wellness program.
TUITION REIMBURSEMENT (FISCAL YEAR)
Team members are eilglble for tuition reimbursement of
up to $5,000/fiscal year. Classes must be job related
and approved by the City Manager's Office.
SICK LEAVE
> Accruable - 4.62 hour per pay period
> 120 hours of sick leave / year (New team members
can bring up to 200 hours of sick leave provided that
your former employer did not compensate you for
those accruals. )
> Team members may begin taking accrued sick leave
after 30 days of employment.
ADMINISTRATIVE LEAVE
> Up to 80 hours per year (Buyback up to 50% when
50% used)
VACATION
100 - 160 hours of annual vacation accrual,
depending on years of service (with vacation
buyback program)
Team members may begin taking accrued vacation
after six months on the job.
Years of Service Hours Per Year
1 100
2- 13 140
14+ 160
HOLIDAYS- (9 Days)
New Year's Day
Martin Luther King Jr.
Presidents Day
Memorial Day
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Christmas Day
FLOATING HOLIDAYS- (2 Days)
2 Hoating Holidays per calendar year
WORK-LIFE BALANCE
4/10 work schedule
CAR ALLOWANCE
$800 per month or city vehicle
HEALTH. DENTAL & VISION PLANS
> Benefit allowance of $1,600/month
> PERS Medical Plans
> Ameritas Dental Plan
VSP Vision Plan for team member and dependents
> Any unused balance can be taken as cash back,
applied to a deferred compensation plan or used to
pay for other city sponsored plans.
LIFE INSURANCE
> $100,000
> $25-$1,848/month
> 15-day wait period
LONG TERM DISABILITY
> $100-$8,000/month until age 65 in an injury
> 90-day waft period
DEFERRED COMPENSATION
Income may be deferred through plan with 1CMA. The
City will contribute a percentage of team member's
salary to a deferred Cnmpensatfon account based on
years of service in Rosemead.
TEAM MEMBER ASSISTANCE PROGRAM
Magellan Health - health & wegrwss assistance
CREDIT UNION/BANK
F & A Federal Credit Union or Bank of the West
COMPUTER LOAN PROGRAM
The City will finance a minimum of $500 and a
maximum of $2,000 per eligible team member at 0%
interest
7125(09
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EXHIBIT B
ICMA Code Of Ethics
The ICMA Code of Qhics eras adopted by the ICMA membership in 1924, and mast
recently amended by the membership to May 1998.
The nessbn or IGMA is W create mEeknoe In total g>.ermnoe by oavefepi g endlodad,g pot ore] fees]
gaarrrerkn.wg.,wd wadkAda To hirer its rmala,n, certain etnaples, as eraaam! by are, Riles of
p nasrfi q del govern the wMrA of amy member of ICMA who shall'.
1. Be dedeaud W the earmpta of dtodW and
d noomIc tonal goveneed by resyaeM
awed alfidad and below 11" professional
general maraganret Is essertid to he
aGie vmre W Une objecthv.
2 AtFml the dgdty and warn of Re servkea
nell.'larad b/ po,,gmm,rA and ReWdn a
wratrad.,' or a . and veoJest attitude
meted fecal gavaraned ears and a deep
se. of social reapondbaty w a sleeted
PtaoseneM1
1 f1! dedes0ad W flu lfrfeat Ideal6 d roror std
ntegdy in lt pume oM pwwM them a
ot
In orlon at the of the 0111caN of other
andconfidence of
ls an; employees. is wa'er
o8rcbla eN and atd W fine IM public
4 Rawgize dut the dial hno8w of brad
gmemma/ W W rmes is to save are befit
noees t, of M of me Rape.
C tiWnnl pdfey xvawah b steeled Wltials;
Reads them wtm ids and ad+lw on orations
of poAry na a Make nor Ireland Motors and
amtg wmmery game; and upald and
mv.mot bMi gwemnsvu poetics soaped
by eected offiaiula
7. Rehm from ell polresl ach rem, with
udamne'Jwc ooAki In Pa oral
admrR9HtaR {tellBllhINll peflKA(gIKY1 nIIN!
eseten or Rte .now. or ins snplaying
logdatke roof.
8. Make A o day wrtmoly to ueyree Ire
rmarbere Pafasdanel abMy and to doml p
rte compcmnM of as-1 se, n 9e t. d
naragamd hs mngia.
9. Keep 9e wmrurtty racmed an bowl
government meta; arcdrage carnnfdrarm
earseen to crowns and so IwM government
a#eets; smpMw&e hardy art ca 4mus
uo vfee to the pWae; and emit W ingfove the
golry and Image or Peat service
Imesal any avwatrrdert on Pow--stonal
nesporaldriiks Mleeirg the member stad0
M bee W MR W official poAdes wataul
' itenfeience, end ru de each Probe.. w1RpW
dsorYrlretlm on re bash of prlndple end
ludke,
It. 14rnrle of melba of personnel on Vie main
of morn so true fairness and! Impartau'r,
gr e n a mentors dedsae, perfattng m
Appoinim,mis, Fey aulAwarft ptarobr4
and dxpnc.
9. Rwo nos get efeced reposomfe as d the
peope am entitled m' 0e dedl W the
estaMahmet of beat gesernment pdfeq
lespo n oady for ptic/ aMCdlon reels with the
member,
Page 16 W 1s
12 Seek no favor; believe that personae
aggrandizement or Pd! seared by
oredxtle] Idwmt. d by rrhwe of pbdp
drre is drw n
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