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CC - Item IV B - City Manager Designate Employment Agreement0,9 WALLIN, KRESS, REISMAN & KRANITZ LAW OFFICES 2800 TWENTY-EIGHTH STREET. SUITE 315 SANTA MONICA, CALIFORNIA 90405-6205 TELEPHONE 13101 450-9582 FACSIMILE 13101 450-0506 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY ATTORNEY/] j RE: CITY MANAGER DESIGNATE EMPLOYMENT AGREEMENT DATE: APRIL 23, 2002 Pursuant to the Council's previous action (1) designating Bill Crowe as City Manager Designate and (2) directing staff to prepare an employment agreement for Mr. Crowe, attached for Council consideration is an employment agreement with Bill Crowe. The agreement is to take effect on June 1, 2002, the day after Frank Tripepi commences his vacation leave and retirement. The agreement with Mr. Crowe is based upon the existing city manager agreement that has been in place for many years. A copy of Mr. Tripepi's agreement is also attached. Mr. Crowe would be employed as City Manager for a term of four years. In the event that neither the City nor Mr. Crowe give notice of intent not to renew six months prior to expiration, the agreement would automatically renew for additional two year terms. The only significant change from Frank Tripepi's agreement is Bill Crowe's request for clarification that in the event of a termination triggering severance benefits that health insurance coverage would remain in place until the employee accepted employment with those benefits or until the expiration of the severance term, whichever comes first. The Council, of course, retains the right to terminate the employment, at any time, by giving notice and providing the severance benefits contained in the agreement. RECOMMENDATION: That the City Council approve the employment agreement with Bill Crowe and authorize the Mayor to execute the same on behalf of the City. r°:GENDA APR 2 3 2002 ITEM No. Ir. L EMPLOYMENT AGREEMENT . THIS AGREEMENT, made and entered into this 23' day of April, 2002 and between the City of Rosemead, State of California, a municipal corporation, hereinafter called the "City", and Bill Crowe, hereinafter called "Employee". WITNESSETH WHEREAS, the City desires to employ the services of said Bill Crowe 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 June 1, 2002, City hereby employs Bill Crowe 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. 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 June 1, 2002, remain in the exclusive employ of the City until May 31, 2006. 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. 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 ho event shall the Employee receive more than eighteen (18) months' salary as severance pay. In addition to the cash settlement, City shall continue to provide full health benefits to Employee. for the entire severance period, or until Employee secures other employment which provides equivalent health benefits, whichever occurs first. 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. 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 $125,000 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. i 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 . Employee's duties require that he shall have the exclusive and unrestricted use at all times (vacation excepted) during his employment with City of an automobile provided to him by City. City shall be responsible for paying for liability, property damage, and comprehensive insurance and for the purchase, operation, maintenance, repair, and regular replacement of said automobile. 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 any 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. 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. 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: APPROVED AS TO FORM: By: By: By: Robert L. Kress, City Attorney EMPLOYEE By: MAYOR Nancy Valderrama, City Clerk Bill Crowe City of Paramount City Manager Salary Survey May, 2001 CITY SALARY Cerritos $159,471 Downey $157,212 Santa Fe Springs $149,820 South Gate $148,416 Whittier $144,996 Pico Rivera $144,468 La Mirada $140,000 Lakewood $139,740 Paramount $139,056 Commerce $137,640 Norwalk $135,000 Compton $120,000 Lynwood $113,640 Bellflower $107,412 Average $138,348 Paramount Deviation from Avg. 0.51% Median $140,000 Paramount Deviation from Median -0.68% CITY OF ROSEMEAD Bill Crowe Don Wagner Current Annual Salary $ 75,732.80 $ 84,988.80 Retirement (PERS + PARS) 17,158.78 19,255.91 FICA 4,695.43 5,269.31 Medicare 1,098.13 1,232.34 Workers Comp 1,824.18 2,047.13 Total Current Cost $ 100,509.32 $ 112,793.48 Proposal Annual Salary $ 125,000.00 $ 105,000.00 Retirement (PERS + PARS) 28,321.25 23,789.85 FICA 7,750.00 6,510.00 Medicare 1,812.50 1,522.50 Workers Comp 3,010.88 2,529.14 Total Current Cost $ 165,894.63 $ 139,351.49 Total Cost Increase $ 65,385.31 $ 26,558.01 65% 24% klo:bc_djw_salary(Sheet1) 4/16/02 7:48 AM Page 1 EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 9th day of November, 1993, by and between the City of Rosemead, State of California, a municipal corporation, hereinafter called the "City", and Frank G. Tripepi, hereinafter called "Employee". W I T N E S S E T H WHEREAS, the City desires to continue to employ the services of said Frank G. Tripepi as City Manager of the City of Rosemead, pursuant to the provisions of Article II, Chapter 1 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 retain his present employment as city manager of City; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows; SECTION I. Duties City hereby agrees to employ said Frank G. Tripepi as City Manager of said City for the term provided in Section 2 hereof, to perform the functions and duties specified in Sections 2107 and 2108 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 1 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. 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 remain in the exclusive employ of City until October 31, 1997. Employee agrees to not 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. D. In the event written notice is.not given by either party to this Agreement to the other at least six (6) months 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 six (6) month's 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 one months' gross salary for each year of service with the City of Rosemead, subject to.the limitations of Government Code §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 2 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 provi.sion. C. Employee shall give the City three (3) 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. Salary City agrees to pay Employee for his services rendered pursuant hereto an annual base salary, as approved in the current year's City of Rosemead budget, 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 S. 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 Employee's duties require that the Employee shall have the exclusive and unrestricted use at all times (vacation excepted) during his employment with City of an automobile provided to him by City. City shall be responsible for paying for liability, property damage, and comprehensive insurance and for the purchase, operation, maintenance, repair, and regular replacement of said automobile. 3 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 associa- tions 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, the California Contract Cities Association 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 4 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 any 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. inconsistentwith or in conflict with law or the provisions of this Agreement. 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. This Agreement shall become effective commencing November 9, 1993. D. 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. 5 IN WITNESS WHEREOF, the City of Rosemead has caused this greement to be signed and executed in its behalf by its Mayor, nd duly attested by its City Clerk, and Employee has signed and xecuted this Agreement, both in duplicate the day and year first bove written. CITY OF ROSEMEAD By: MAYOR TTEST: CITY CLERK AS TO FORM: Robert L. Kress, City Attorney EMPLOYEE By: Frank G. Tripepi 6 FIRST AMENDMENT TO EMPLOYMENT AGREEMENT THIS FIRST AMENDMENT to the employment agreement dated November 9, 1993 by and between the City of Rosemead, hereinafter called the "City" and Frank G. Tripepi, hereinafter called "Employee": Whereas, Employee has served the City first as Assistant City Manager and then as City Manager since 1974; and Whereas, Employee has expressed his intention to retire from the City service, effective October 1, 2002; and Whereas, Employee and City wish to amend the employment agreement between the parties to reflect the anticipated retirement of and payment of accrued benefits to Employee. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree that the Employment Agreement between the parties, dated November 9, 1993, is hereby amended as follows: 1. From June 1, 2002 through September 30, 2002, Employee shall take accrued vacation leave from City. On May 31, 2002, Employee will turn in City's car, keys to City Hall, City credit cards and all other City equipment he has in his possession. During the time of this vacation leave, Employee will be free to pursue any other employment interests he chooses. 2. On October 1, 2002, the first day of the first month after his 55th birthday, Employee will retire from the service of the City. 3. On or before December 31, 2001, City will pay, if Employee so elects, Employee for the amount of his accrued vacation benefits that will be not be necessary for the June 1, 2002 through September 30, 2002 scheduled vacation period. 4. Except as specifically addressed in this First Amendment to Employment Agreement, all terms and conditions of the November 9, 1993 Agreement between the parties shall remain unchanged. 5. Effective October 1, 2001, Employee is hereby granted a 5% salary increase in recognition of his 30 years in municipal management. 6. If Employee is terminated, prior to the agreed retirement date of October I, 2002, he shall be entitled to severance pay in an amount equal to his gross salary for the period of time remaining between termination and October 1, 2002. This is in lieu of the severance pay benefit provided in Section 3. A. of the Employment Agreement. IN WITNESS WHEREOF, the City of Rosemead has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested to by its City Clerk, and Employee has signed and executed this Agreement, both in duplicate on the 13th day of November, 2001. CITY OF ROSEMEAD Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney EMPLOYEE: Frank G. Tripepi RESOLUTION NO. 2002-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF $422,739.13 NUMBERED 37368 THROUGH 37517 MOTION BY COUNCILMEMBER CLARK, SECOND BY COUNCILMAN VASQUEZ that the Council adopt Resolution No. 2002-19. Vote resulted: Yes: Imperial, Taylor, Bruesch, Clark, Vasquez No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. IV. CONSENT CALENDAR (CC-E was removed for discussion purposes) CC-A APPROVAL OF PLANS AND SPECIFICATIONS AND AUTHORIZATION TO SEEK BIDS FOR 2001-2002 SLURRY SEAL PROJECT ON VARIOUS CITY STREETS *Aft~C-B CITY MANAGER DESIGNATE EMPLOYMENT AGREEMENT CC-C SALARY ADJUSTMENT FOR ASSISTANT CITY MANAGER CC-D APPROVAL OF AGREEMENT FOR THE SUMMER YOUTH LUNCH PROGRAM MOTION BY COUNCILMAN TAYLOR, SECOND BY MAYOR PRO TEM VASQUEZ that the Council approve the aforementioned items on the Consent Calendar. Vote resulted: Yes: Imperial, Taylor, Bruesch, Clark, Vasquez No: None Absent: None u Abstain: None *Phe Mayor declared said motion duly carried and so ordered. CC-E AUTHORIZATION TO ALLOCATE JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT FUNDS TO THE COUNTY OF LOS ANGELES DISTRICT ATTORNEY'S OFFICE Mayor Bruesch asked what services will the City receive? CCMIN:4-23-02 Page #2'