THIRD AMENDED AND RESTATED EMPLOYMENT AGREEMENT
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This Third Amended and Restated Employment Agreement (“ Amended Agreement”) is made and entered into the 3rd day of August, 2022, by and between the City of Hanford, California, a municipal corporation (“City”), and Mario A. Cifuentez, II (“Employee”).
SECTION 1. DUTIES.
City hereby employs Employee as City Manager to perform the functions and duties specified in the laws of the State of California and Ordinances and Resolutions of the City and to perform such other duties and functions as the Hanford City Council (“Council”) shall from time- to-time assign.
SECTION 2. TERM OF AMENDED AGREEMENT.
The term of Employee’s Employment Agreement, dated November 5, 2019, commenced on November 18, 2019 (“Commencement Date”) and shall continue through November 18, 2025.
This Amended Agreement shall commence on August 3, 2022 and will continue through November 18, 2025, or until terminated as set forth below.
SECTION 3. TERMINATION OF AGREEMENT.
A. Employee shall serve at the pleasure of the Council and shall be an “AT -WILL” employee of City and may be terminated with or without cause.
B. This employment relationship may be terminated as follows:
(1) Automatic termination upon expiration of this Amended Agreement.
(2) By Employee, with prior written notice to City of at least thirty (30) calendar days.
(3) By City, without cause, upon City’s cash payment to Employe e, subject to withholdings, of a severance amount equal to nine (9) months of aggregate then-current annual salary if Employee is terminated without cause ; provided however, in accordance with California Government Code Section 53260, the severance amount will not exceed an amount equal to Employee’s then- current monthly salary multiplied by the number of months remaining on the unexpired term of this Amended Agreement.
(4) By City, without payment of any severance or additional compensation past the termination date, for any cause for disciplinary action under the City’s Policy of Administration for Executive Management Employees (“Executive Management Policy”), as well as any of the following:
a. Act of immoral or unprofessional conduct;
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b. Violation of or refusal to obey any federal, state, or municipal laws or regulations;
c. Conviction of a felony;
d. Material breach of this Amended Agreement; or
e. Such other action as may be inconsistent with Employee’s duties under this Amended Agreement.
C. Notwithstanding the foregoing provisions, Employee’s employment shall not be terminated, other than for cause, during or within a period of one hundred eighty (180) calendar days following the date of a regular election for one (1) or more seats on the Council.
D. Employee shall remain in the exclusive employ of City and shall not accept other employment until such time as Employee resigns or is terminated by City, or upon written approval of City.
SECTION 4. COMPENSATION.
In exchange for the services provided by Employee under this Amended Agreement, effective the f irst full pay period in August, 2022, City will pay Employee an annual salary of
TWO HUNDRED TWENTY THOUSAND, SIX HUNDRED AND EIGHT DOLLARS ($220,608.00), which includes an automobile allowance of FIVE HUNDRED DOLLARS ($500.00) per month and a cellular phone/technology allowance of ONE HUNDRED DOLLARS ($100.00) per month, to be paid in installments at the same time other employees of City are paid.
Such compensation shall be adjusted for payroll taxes, workers’ compensation, and other payroll- related liability costs. Adjustments to Employee’s compensation shall occur only through the amendment of this Amended Agreement.
SECTION 5. BENEFITS.
A. Effective PP001 in 2023, City shall provide Employee with eighty (80) hours of Management Leave. It is preferred that Management Leave be used as time off. Employee may also cash out up to sixty-four (64) hours of their Management Leave or convert all or a portion of their leave to deferred compensation. Any Management Leave hours not taken by Employee by PP025 will be compensated their cash out balance, up to sixty-four (64) hours if available in PP026.
Management Leave shall not be carried over to a n ew calendar year. Upon separation from the City, Employee shall be compensated the cash out balance, up to sixty-four (64) hours if available.
The terms of the Management Leave Plan is described in the Compensation and Benefit Summary for the Executive Management Employees Association.
B. City will enroll Employee in the Public Employees’ Retirement System (“CalPERS”). Employee shall pay, at his sole cost, the full employee contribution to CalPERS.
To the extent permitted by CalPERS, City will maintain, in effect, the 3% @ 60 PERS retirement program for Employee as a Classic CalPERS member.
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C. Effective January 1, 2023, City will provide term life insurance for Employee in the amount of TWO HUNDRED THOUSAND DOLLARS ($200,000.00).
D. Health, dental, and vision insurance coverage offered to the members of the Executive Management Employment Association shall be available to Employee.
E. Employee is eligible to received matched employer contributions for deferred compensation up to SEVENTY-FIVE DOLLARS ($75.00) per pay period.
SECTION 6. LEAVE.
A. Employee shall accrue vacation leave at the rate of six and 16/100 (6.16) hours per bi-weekly pay period (160 hours annually) . Upon termination of this Amended Agreement, voluntarily or involuntarily, Employee will be compensated for all accrued vacation time.
B. Employee shall accrue sick leave at three and 69/100 (3.69) hours per bi -weekly pay period (96 hours annually). Upon termination of this Amended Agreement, Employee shall forfeit all accumulated sick leave. Upon retirement, Employee may convert unused sick leave pursuant to Government Code Section 20826.8, as may be amended.
C. The use and accumulation of vacation and sick leave shall be limited in the manner described in Executive Management Policy . Any City Manager approval required under the Executive Management Policy shall, however, require City Council approval for purposes of this Amended Agreement.
D. Except in an emergency, Employee will not be requi red to work on the holidays identified in the Executive Management Policy.
SECTION 7. PERFORMANCE EVALUATION.
A. The Council shall perform a n evaluation at the one (1) year anniversary of the Commencement Date. Thereafter, City will annually evaluate Employee’s performance.
B. Depending on the results of an evaluation, the parties may amend this Amended Agreement to adjust Employee’s compensation to reflect Employee’s performance; for example, the Council’s finding of employee’s positive performance may result in the increase of Employee’s salary or other compensation. Employee acknowledges that he is not entitled to any automatic increases in compensation, and adjustments to Employee’s compensation are within the Council’s sole discretion.
C. All evaluations will utilize a process, form, criteria, and format selected by the Council. A written evaluation shall be completed and delivered to Employee within thirty (30) calendar days after the completion of the Council’s evaluation of Employee.
D. This provision does not limit Council’s authority to perform additional evaluations of Employee’s performance if necessary, including closed session items related thereto.
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SECTION 8. PROFESSIONAL DEVELOPMENT.
City shall annually budget and allocate sufficient funds to pay the expenses of Employee’s travel and subsistence while representing City at the Annual International City/County Management Association Conference, the Annual League of California Cities Conference, conferences of the City Managers’ Department of the League of California Cities, and conferences or meetings of state committees or commissions upon which Employee serves as a member, said membership on said committees or commissions being subject to the approval of the Council, and for such other official meetings and/or travel as are reasonably necessary for Employee to carry out his responsibilities as City Manager.
SECTION 9. CREDIT CARD.
City will provide to Employee a State of California purchasing card (CalCard) that Employee may utilize for City-related expenses. Employee shall only use City’s CalCard for City- related business and in accordance with State law and regulations and the City’s purchasing card policy, the terms of which are incorporated herein by reference. Any misuse of City’s CalCard shall be grounds for discipline, including surrender of CalCard and/or immediate termination of employment for cause. Any legal expenses incurred by the City as a result of Employee’s misuse of CalCard shall be reimbursed by Employee.
SECTION 10. EMPLOYEE’S DUTY TO REIMBURSE CITY.
A. If City terminates Employee without cause and Employee receives a severance amount pursuant to Section 3.B.( 3) of this Amended Agreement and Employee is convicted of a crime involving abuse of his office or position, as defined by California Government Code Section 53243.4, as may be amended, Employee shall immediately reimburse City the full severance amount that Employee received from City.
B. Employee acknowledges that this Amended Agreement is subject to California Government Code Sections 53243- 53243.4, the terms of which are incorporated herein by reference, that require Employee to reimburse City for certain City expenditures if Employee is convicted of a crime involving abuse of his office or position, as defined by California Government Code Section 53243.4. Employee will promptly reimburse City if required to do so pursuant to California Government Code Sections 53243- 53243.4, and i f Employees fails to immediately reimburse City, Employee will pay attorneys’ fees and costs to City for the cost of litigation to recover said amounts subject to California Government Code Section 53243.4.
SECTION 11. BONDING.
City shall bear the full cost of any fidelity or other bonds (or equivalent coverage) required of Employee under any law or ordinance.
SECTION 12. NOTICES.
Notices pursuant to this Amended Agreement shall be in writing given by deposit in the custody of the United Stated Postal Service (certified mail, return receipt requested) or deposit in
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the custody of a nationally recognized delivery service, addressed as follows:
CITY:
City of Hanford
Attn: Mayor
319 N. Douty Street
Hanford, CA 93230
EMPLOYEE:
Mario A. Cifuentez, II
2011 W. Humboldt Drive
Hanford, CA 93230
Alternatively, notices required pursuant to this Amended Agreement may be personally served in the same manner as is applicable to the civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission of the United States Postal Service or nationally recognized delivery service.
SECTION 13. MISCELLANEOUS PROVISIONS.
A. The text of this Amended Agreement and the documents incorporated herein by reference shall constitute the entire agreement between the parties, and supersede any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by City. Each party to this Amended Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by either party, or anyone acting on behalf of either party, which are not embodied herein, and that no other agreement, statement, or promise not contained in this Amended Agreement shall be valid or binding on either party.
B. This Amended Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. This Amended Agreement shall not be assignable.
C. If any provision, or any portion thereof, contained in this Amended Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Amended Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
D. Any modification of this Amended Agreement will be effective only if it is in writing and signed by both Employee and City.
E. No waiver or any breach of any term, condition or provision of this Amended Agreement shall constitute a waiver of any other breach of any other term, condition or provision and no consent of one (1) party to any departures by the other shall be effective unless such waiver shall be in writing and shall be signed by the non-waiving party or a duly authorized agent thereof and the same shall be effective only for a period, on the conditions, and for the specific instances and purposes specified in such writing.
F. This Amended Agreement shall be governed by the laws of the State of California.
The venue for any and all litigation arising from this Amended Agreement shall be in the Superior Court for the County of Kings, California, if in state court, or the United States District C ourt, Eastern District of California, if in federal court.
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G. In the event legal action is brought to enforce this Amended Agreement, the party prevailing in such action shall be entitled to his/its reasonable attorneys’ fees and costs, which will be p aid by the non- prevailing party, except as to enforce Section 10, which contains its own attorneys’ fee provision.
H. In the event of a conflict between this Amended Agreement and any other City rule, regulation, policy, practice, or procedure, this Amended Agreement shall control.
IN WITNESS WHEREOF, the parties have executed this Amended Agreement in Hanford, Kings County, California.
CITY OF HANFORD
By: _______________________________
KALISH MORROW
Mayor
EMPLOYEE
By: _______________________________
MARIO A. CIFUENTEZ, II
APPROVED AS TO FORM:
GRISWOLD, LaSALLE, COBB,
DOWD & GIN, L.L.P., City Attorneys
By: _____________________________
TY N. MIZOTE
ATTEST
By: ______________________________
NATALIE CORRAL
City Clerk
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AGENDA
STAFF REPORT
MEETING DATE: 8/2/2022
AGENDA SECTION: A
SUBJECT:
Council Future Agenda Items
FISCAL IMPACT:
ATTACHMENTS:
Council Future Agenda Items
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Council Future Agenda Items
Originated
Date Item Originator Staff Lead Date Estimate
4/7/20 Discussion of Pay for Parking Options
in the Downtown Area
Council
Consensus John Doyel After presentation of
Downtown Plan
12/21/21
Review of City Ordinance related to
property line setbacks for Patio
structures and Driveway Awnings
Council
Consensus
Tom Webb
8/16/2022
1/18/22
Discussion of options for New
Business Incentives in the Downtown
District
Council
Consensus
Mario
Cifuentez
9/20/2022
3/29/22 Discussion of the future use of
Roundabouts and cost savings
Council
Consensus
TBD TBD
3/29/2022 Discussion of the implementation of
City Geographic Information System
Council
Consensus
Various Staff 9/20/2022
6/7/2022 Presentation and Review of the City’s
First-time homebuyers program
Council
Consensus
Sandra Lerma 9/20/2022
6/7/2022 Presentation on the proposed
improvements to the Civic Auditorium
Council
Consensus
Randy Shaw 8/16/2022
7/19/2022 Study Session to reconsider the
roundabouts in the Downtown
Pedestrian and Traffic Safety project
Council
Consensus
TBD 9/6/2022
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