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CC - Item 4E - Contract between Rosemead and City Manager• TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY CO CIL FROM: TY MANAGER DATE: FEBRUARY 28, 2006 u RE: CONSIDERATION OF CONTRACT BETWEEN THE CITY OF ROSEMEAD AND THE CITY MANAGER At its February 14, 2006, meeting the City Council hired Andrew Lazzaretto as City Manager effective March 1, 2006, and instructed the City Attorney to present the City Council with an employment contract at the next Council meeting. The contract presented for consideration is for a three-year term at an annual salary of $175,000.00. The contract also provides for an $800 per month automobile allowance rather than an automobile provided by the City. The contract is in other material respects identical to the previous City Manager's employment agreement. Recommendation: Approval. COUNCIL AGENDA 2/28106 Item No: IV - CC- E 0 TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY CO CIL FROM: TY MANAGER DATE: FEBRUARY 28, 2006 • RE: CONSIDERATION OF CONTRACT BETWEEN THE CITY OF ROSEMEAD AND THE CITY MANAGER At its February 14, 2006, meeting the City Council hired Andrew Lazzaretto as City Manager effective March 1, 2006, and instructed the City Attorney to present the City Council with an employment contract at the next Council meeting. The contract presented for consideration is for a three-year term at an annual salary of $175,000.00. The contract also provides for an $800 per month autornobile allowance rather than an automobile provided by the City. The contract is in other material respects identical to the previous City Manager's employment agreement. Recommendation: Approval. • EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 28th day of February, 2006 by and between the City of Rosemead, State of California, a municipal corporation, hereinafter called the "City", and Andrew C. Lazzaretto, hereinafter called "Employee" or "Lazzaretto". WITNESSETH WHEREAS, the City desires to employ the services of said Andrew Lazaretto as City Manager of the City of Rosemead, pursuant to the provisions of Title 2, Chapter 2.08 of the Rosemead Municipal Code; and WHEREAS, it is the desire of the City Council to provide certain benefits, establish certain conditions of employment, and to set working conditions of said Employee; and WHEREAS, it is the desire of the City Council to (1) retain the services of Employee and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring Employee's morale and peace of mind with respect to future security, (3) to act as a deterrent against malfeasance or inadequate performance on the part of the Employee, and (4) to provide a just means for terminating Employee's services at such time as he may be unable fully to discharge his duties due to disability or when City may desire to otherwise terminate his employ; and WHEREAS, Employee desires to be retained as City Manager of City, NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows; SECTION 1. Duties Effective March 1, 2006, City hereby employs Lazaretto as City Manager of said City for the term provided in Section 2 hereof, to perform the functions and duties specified in Sections 2.08.080 and 2.08.090 of said Municipal Code, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. SECTION 2. Term A. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City Council to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3, paragraphs A and B, of this Agreement. 0 • B. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time from his position with City, subject only to the provisions set forth in Section 3, paragraph C, of this Agreement. C. Employee shall, following the assumption of the office of City Manager on March 1, 2006, remain in the exclusive employ of the City until February 28, 2009. Employee agrees to not to seek, to accept, nor to become employed by any other employer until said termination date, unless said termination date is effected as hereinafter provided. The term employed by any other employer' shall not be construed to include occasional teaching, writing, or consulting performed on Employee's time off. Additionally, City recognizes that Lazaretto currently has his own business and in accepting this job with City, Lazaretto will need to devote time to closing down that business over the next several months. D. In the event written notice is not given by either party to this Agreement to the other at least 180 days prior to the termination date as hereinabove provided, this Agreement shall be extended on the same terms and conditions as herein provided for an additional period of two years. This Agreement shall continue thereafter for two-year periods unless at least 180 days' written notice is given prior to time of expiration of a two-year period. SECTION 3. Termination and Severance Pay A. In the event Employee is terminated by the City Council before expiration of the aforesaid term of employment and during such time as Employee is willing and able to perform the duties of City Manager, then in that event City agrees to pay Employee a lump such cash payment equal to eighteen months' aggregate salary severance pay, subject to the limitations of Government Code Section 53260 (a). In no event shall the Employee receive more than eighteen (18) months' salary as severance pay. In the event Employee is terminated because of his conviction of any illegal act involving personal gain to him, then, in that event, City shall have no obligation to pay such severance pay provided for in this paragraph. B. In the event City at any time during the employment term reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction for all City employees, or in the event City refuses, following written notice, to comply with any other provision hereof benefiting Employee, or if Employee resigns following a suggestion, whether formal or informal, by the City Council that he resign, then, in that event, Employee may at his option be deemed to be "terminated" at the date of such reduction, such refusal, or such resignation, for the purpose of the above severance pay provision. • 0 C. Employee shall give the City six months' written notice in advance in the event Employee voluntarily resigns his position with City before expiration of the aforesaid term of employment. SECTION 4. Sala City agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $175,000 payable in installments at the same time as other employees of City are paid. In addition, City agrees to increase said base salary and/or other benefits of Employee in such amounts and to such an extent as the City Council may determine to be desirable on the basis of an annual salary review of said Employee. Such review shall be made at the same time as similar consideration is given other employees of City generally. SECTION 5. Hours of Work A. It is recognized that Employee must devote a great deal of his time outside normal office hours to business of the City, and to that end Employee will be allowed to take equivalent compensatory time off as he shall deem appropriate during said normal office hours. B. Employee shall not spend more time than ten (10) hours per week in teaching, consulting, or other noncity-connected business without the express prior approval of the City Council SECTION 6. Automobile Allowance Employee's duties require that during his employment with City he have the exclusive and unrestricted use at all times (vacation excepted) of an automobile. In lieu of City providing an automobile and paying for liability, property damage, and comprehensive insurance and for maintaining, repairing and replacing the automobile, City shall pay Employee a monthly auto allowance of $800. SECTION 7. Dues and Subscriptions City agrees to budget and to pay the professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for Employee's continued professional participation, growth, and advancement, and for the good of the City. SECTION 8. Professional Development A. City hereby agrees to budget and to pay the travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for City, including but not limited to the Annual Conference of the International City Management Association, the League of California Cities, and such other national, regional, state, and local governmental groups and committees thereof which Employee serves as a member. B. City also agrees to budget and to pay for the travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for his professional development and for the good of the City. SECTION 9. Chamber of Commerce Membership City recognizes the desirability of representation in and before the local Chamber of Commerce, and Employee is authorized to become a member of such civic organization. City shall pay all expenses incident to such membership. SECTION 10. Vacation Sick and Administrative Leave A. Employee shall accrue, and have credited to his personal account, vacation and sick leave at the same rate as other general employees of City. B. Employee shall be entitled to Administrative Leave of five (5) days during each fiscal year. This leave may not be taken in conjunction with accrued vacation and must be taken off each year so as not to accrue. SECTION 11. Disability Health and Life Insurance A. City agrees to provide hospitalization, surgical, and comprehensive medical insurance for Employee and his dependents and to pay the premiums thereon. Such insurance shall be at least equal to that provided all other City employees. B. City shall provide travel insurance for Employee while he is traveling on City business, with Employee to name beneficiary thereof. SECTION 12. Other Terms and Conditions of Employment A. The City Council shall fix and such other terms and conditions of employment, as it may determine from to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with law or the provisions of this Agreement. 0 0 B. All provisions of the Municipal Code, and regulations and rules of City relating to vacation and sick leave, retirement and pension system contributions, holidays, and other fringe benefits and working conditions as they now exist or hereafter may be amended, shall apply to Employee in like manner as they would to other employees of City, unless other specific provisions with respect thereto are made herein. C. Employee shall be entitled to receive the same vacation and sick leave benefits as are accorded department heads, including provisions governing accrued vacation and payment therefor on termination of employment. SECTION 13. General Provisions A. The text herein shall constitute the entire Agreement between the parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. C. If any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect. SECTION 14. Attorney's Fees In the event that any legal action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing party shall, in addition to any other relief and costs, be entitled to reasonable attorney's fees. IN WITNESS WHEREOF, the City of Rosemead has cause this Agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and Employee has signed and executed this Agreement, both in duplicate the day and year first above written. CITY OF ROSEMEAD ATTEST: By: MAYOR By: Nina Castruita, City Clerk APPROVED AS TO FORM: By: Peter L. Wallin, City Attorney 0 0 EMPLOYEE By: Andrew C. Lazaretto