ITEM 4.4
CITY MANAGER' S REPORT
AUGUST 8, 2022 CITY COUNCIL REGULAR MEETING
ITEM: COMPLETE ANNUAL PERFORMANCE REVIEW
PROCESS FOR CITY MANAGER AND CITY ATTORNEY
RECOMMENDATION: ADOPT RESOLUTION APPROVING AMENDMENT
NUMBER THREE TO THE CITY MANAGER
EMPLOYMENT AGREEMENT, AMENDMENT NUMBER
TWO TO THE CITY ATTORNEY EMPLOYMENT
AGREEMENT, AND RELATED BUDGET AMENDMENT
BAC KG ROU N D:
The City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney, each year in July pursuant to their written procedure. At the July 11, 2022 regular City Council meeting, the parties met in closed session for their performance discussion as required.
The City Council completed the annual performance evaluations for the City Manager and the City Attorney on July il, 2022, and unanimously approved a 6% salary increase for the City Manager and 5% salary increase for the City Attorney, effective ) uly 11, 2022. Tonight' s action formalizes the approval of the City Council action taken on July 11, 2022.
REASON FOR RECOMMENDATION:
As affirmed by the announcement following closed session on July 11, 2022, Amendments to the Employment Agreements for City Manager and City Attorney have been prepared as directed and are recommended for adoption by the City Council.
FISCAL IMPACT:
The budget amendment required covers the salary increase and CaIPERS benefits / overhead costs for each employee. Budget increase for FY 22/ 23, is as follows:
City Manager 1010- 1120- 410- 1100 20, 000
City Attorney 1010- 1120- 410- 1100 15, 000
ATTAC H M E NTS:
A. Resolution
B. Amendment No. 3 to City Manager Employment Agreement C. Employment Agreement and Amendment No. 1 and 2 for City Manager D. Amendment No. 2 to City Attorney Employment Agreement E. Employment Agreement and Amendment No. 1 for City Attorney CITY MANAGER' S REPORT PAGE 2
AUGUST 8, 2022 CITY COUNCIL MEETING
APPROVAL OF AMENDMENT NO. 3 TO CITY MANAGER EMPLOYMENT
AGREEMENT & AMENDMENT NO 2 TO CITY ATTORNEY EMPLOYMENT
AGREEMENT
APPROVALS:
l 1 , i
eresa Vargas Date
Government Services Director
City Clerk
Iv( icha C C':_ lanEvc no
Special Counsel Date
RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING AMENDMENT NUMBER THREE TO THE CITY MANAGER
EMPLOYMENT AGREEMENT, AMENDMENT NUMBER TWO TO THE CITY
ATTORNEY EMPLOYMENT AGREEMENT, AND RELATED BUDGET AMENDMENT WHEREAS, the City Council reviews the performance of the two Council appointed officials, City Manager and City Attorney, each year in July pursuant to their written procedure; and
WHEREAS, at the July 11, 2022 regular City Council meeting, the parties met in closed session for their performance discussion as required; and WHEREAS, the City Council completed the annual performance evaluations for the City Manager and the City Attorney on July 11, 2022, and unanimously approved a 6% salary increase for the City Manager and 5% salary increase for the City Attorney, effective July 11, 2022; and
WHEREAS, tonight' s action formalizes the approval of the City Council action taken on July 11, 2022; and
WHEREAS, as affirmed by the announcement following closed session on ] uly 11, 2022, Amendments to the Employment Agreements for City Manager and City Attorney have been prepared as directed and are recommended for adoption by the City Council.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby approves Amendment Number Three ( 3) to the City Manager Employment Agreement, and Amendment Number Two ( 2) to the City Attorney Employment Agreement; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop approve the corresponding budget amendment required to cover the salary increase and CaIPERS benefits / overhead costs for each employee, budget increase for FY 22/ 23, is as follows:
City Manager 1010- 1120- 410- 1100 20, 000
City Attorney 1010- 1120- 410- 1100 15, 000
The foregoing resolution was passed and adopted this 8t'' day of August 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
ti4ichaei G. Colaptu nc
Teresa Vargas, City Clerk Special Counsel
Amendment Number Three to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
August 8, 2022
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit " A", was entered into between the parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City Council unanimously agreed to renew and extend the Employment Agreement( Amendment Number One) attached and hereto incorporated herein as Exhibit " B".
On or about November 19, 2018 the City Council approved Amendment Number Two, attached and incorporated herein as Exhibit " C".
The City Council hereby approves a performance- based increase in the City Manager' s current base salary of 6%, effective July 11, 2022.
Unless specifically stated above, no other changes to the original agreement ( or Amendments) are intended by this Amendment.
EMPLOYEE CITY OF LATHROP
By: By:
Stephen J. Salvatore Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
s iiek acl G_ Colantuono
Special Counsel
ATTEST:
Teresa Vargas, City Clerk/ Government Services Manager
Attachments:
Exhibit " A"— Employment Agreement for Stephen J. Salvatore effective September 17, 2012 Exhibit " B"— Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit " C"— Amendment Number Two to Employment Agreement dated November 19, 2018 V
A1 1`ACHM NY ._._....
Amendment Number Two to Employment Agreement Between the City of Lathrop and Stephen J. Salvatore
November 19, 2018
The original Employment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit" A", was entered into between he parties for services of City Manager on or about September 17, 2012.
On or about August 17, 2015, the City council unanimously agreed to renew and extend the Employment Agreement pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit" B". In addition, the Employment Agreement automatically renewed for an additional 3 years in September 2018.
The City Council has met and with a vote of 4- 0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base annual salary by 5%;
2. Up to forty( 40) hours of sick leave can be cashed out annually; and
3. Employer will contribute$ 2, 179 per month towards the Employee' s health, dental and vision insurance benefits, and any such increases to benefits provided to other management employees.
Unless specifically stated above, no other changes to the original agreement( or Amendment One) are intended by this Agreement.
EMPLOYEE CITY OF LATHROP
B • By:
en J. Salvatore Sonny Dhaliwal, Mayor
Date: d/' d j•!8 Date: /
APPROVED AS TO FORM:
Salvador Navarrete, City Attorney
ATTEST:
resa Vargas, City Cler
Attachments:
Exhibit" A"— Employment Agreement for Stephen J. Salvatore, effective September 17, 2012 Exhibit" B"— Amendment Number One to Employment Agreement dated August 17, 2015 Exhibit A
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (" Contract") is made and entered into this 17 day of September, 2012, by and between the City of Lathrop, California, a general law city organized under the laws of the State of Califomia, hereinafter called " Employer," and Stephen J.
Salvatore, an individual, hereinafter called " Employee," and is effective as of September 17, 2012(" Effective Date").
The parties agree as follows:
SECTION 1. DUTIES.
Employer hereby employs Employee as City Manager to perform the functions and duties specified• in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions of the City of Lathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
SEGTYON 2. TERM.
A. The terrn of this Contract shall initially be for three ( 3) years, commencing as of the Effective Date, and shall be automatically renewed and extended for additional three( 3) year periods at the end of each three year period, unless either party shall provide written notice of non-renewal at least ninety ( 90) days prior to the end of the period in which notice is given.
B. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign as City Manager or as an employee of the City at any time for any reason.
C. Employee shall rema.in in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approvat of Employer.
D. The term " employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed. during Employee' s time off.
E. Employee' s initial date of hire was January 1, 2008, but this Agreement is effective as the Effective Date specified above.
SECTION 3. SALARY.
Employer agrees to pay Employee, commencing with the Effective Date for his duties, the base annual salary of one hundred and seventy one thousand one hundred thirly one dollazs
x `` -
171, 131) payable in installments at the same time and in the same manner as other Employees of the Employer are paid.
On the one ( 1) year anniversary of the Effective Date, the City Council shall conduct an annual performance evaluation. This evaluation shall be completed as ajoint effort between Employee and Employer. If desired, an outside facilitator, to be mutually agreed upon by Employer and Employee, and at Employer' s sole cost, may be utilized. On the subsequent anniversaries, Employer may grant znerit increases to the base annual salary and provide other benefits to Employee under this Contract at their discretion.
SECTION 4. FIOUR,S OF WORK.
It is recognized that Employee rnust devote a grea.t deal of time outside normal office hours to business of Employer. To that end, Employee will be granted management leave at a rate offour 4) weeks of nnanagement leave per calendar year. Management leave is futly credited on January 1 st of each year.
SECTION 5. AUTOMOBILE ALLOWANCE.
Employer shall receive an a automobile allowance of$450. 00 per month for the general business use of his personal vehicle; however, Employer shall also rennburse Employee at the IRS standard mileage rate for any business use of his personal vehicle for any single business trip totaling more than 100 miles.
SECTION 6. TERMINATION.
This Contract shall terminate upon the occurrence of any ofthe followi.ng events:
A. The death ofEmployee.
B. The dissolution or bankruptcy of Employer.
C. The disability ofEmployee, as defined herein.
D. The majority of the City Council of Employer votes to terminate the Employee at a duly authorized meeting. Except for non-renewal of contract pursuant to 2A, the Employer however shall not ternunate Employee within a" cooling off' period of nineTy ( 90) days either before or after an election for which a City Council Member is elected.
E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee sha11 have the right to declare that such amendments constitute ternunation.
F. If the Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless any such reduction is pursuant to a City wide furlough program, such action shall consritute a breach ofthis Contract and will be regarded as termination.
G. If the Employee resigns following an offer to accept resignation, by majority of the City Council of Employer, then the Employee may declare a termination as of the date of the requested resignation.
H. Breach of contract declared by either party with a thirty ( 30) day cure period for eithez Employee or Employer to be provided. Written notice of a breach of contract shall be provided.
I. Conviction of Employee of any public offense that is a felony, and/ or involves moral turpitude, and / or the punishment for which includes a prohibition of holding public employment.
SECTION 7. CONFIDENTIALITY.
Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee during his service as City Manager shall at a11 times be conducted in closed session of the City Council and shall be considered confidential to the full extent perrnitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of Ernployee' s evaluation with their respective legal counsel.
SECTION 8. SEVERANCE P AY.
If this Contract is ternunated pursuant to Section 6, Paragraph B, D, E, F, G or City breach of Contract, Employer shall pay severance to Employee in the amount of six ( months' salary.
Instead of six of severance pay in accordance with this Section, Employee may elect to treat the non- renewal of the Contract ( as described in herein and in Section 2) as a termination that entitles him to three ( 3) months' severance pay in addition to regulaz pay during the 90 day notice period ofnon-renewal referenced in Section 2A.
If this contract is terminated for any reason specified herein, Employee shall be paid for all accrued and unused sick leave, vacation time, paid holidays; and the value of all benefits including employer' s contribution to PERS, Health Insurance allowance, and car allowance.
Severance will be paid in one payment witlun 30 days oftermination.
SECTION 9. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty ( 30) days prior to the effective date of resignation. The Employer shall have no further obligation to provide payments and benefits to Employee for lus service as City Manager af er the effective date of the resignation except for all accrued and unused management leave, sick leave and vacation time. The City requests that Employee provide six ( 6) to twelve ( 12) months advance notice in the event that he determines to retire from service.
SECTION 10. INDEIMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 ofthe California Government Code, commencing with section 810.
SECTION 11. BONDING.
Employer shall bear the full cost of any fidelity or other bonds required ofthe F.mployee under any law or ordinance.
SECTION. 12. DISABILITY. ADNSTMENTS. HEALTH AND LIFE
INSURANCE. COST- OF- LYVING. VACATION AND SICK LEAVE.
Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer relating to vacation and sick leave, retirement system coutributions, holidays and other fiinge benefits and working conditions as they now exist or hereafter may be amended also sha11 apply to Employee as they would to other unrepresented employees of the Employer. An annual cost of living increase adjustment shall be applied to the base annual salary going forward to Employee as established for all other non-represented employees. Additionally, Employee will accrue vacation and sick leave at a rate as outlined in the City' s Administrative Policies Manual based on his initial hire date.
SECTION 13. RETIREIVYENT.
Employer shall pay Employee' s contribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody ofthe United States Postal Service, postage prepaid, addressed as follows:
1) Employer Mayor, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 2) Employee At his address as reflected in his personnel records ofthe City.
Alternatively, nofices required pursuant to this Contract may be personally served in t ie same manner as is applicable to 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 ttotice in the course of transmission in the United States Postal Service.
SECTION 15. GENERAL PROVISIONS.
A. The text herein shall constitute the entire Contract between the parties.
I
Page4of6
B. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, 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 Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
EMPLOYEE CTTY OF LA OP
By:
en J. Salvatore J Chaka s,
Date: Q Z Date: a `
APPROVED AS TO FO .
Salvador Navarrete, City Attomey
ATTEST:
Mitzi rtiz, ' Clerk
Amendmeeet Wumber One to Employment Agreement betwreen
The City of Lathrop and Stephen J. Salvatore
At gust 17. 2015
The original Emplayment Agreement between the City of Lathrop and Stephen J. Salvatore, attached hereto and incorporated herein as Exhibit" A", was entered into between the parties for the services of City Manager on or about September 17, 2012.
The City Council has met and unanimously agreed to renew and extend this Empioyment Agreement pursuant to the conditions as described in Section 2 ofthe Employment Agreement.
IN WITNESS WHEREOF the City of Lathrop has caused this Amendment No. 1 to be signed and executed in fts behaif by its NAayor and duly attested by its City Cierk, and the employee has signed and executed this Amendment both in duplicate.
EMPLOYEE CI7Y OF LATHROP
B •
ephen 1. Salvatore Sonny D aliwal, Mayor
Date:. R• l7•I S Date: /
APPROVED AS TO FORM:
Salvador Navarrete, City Atto ney
ATTEST:
eresa Vargas, City( c
Attachment: Exhibit A— Employment Agreement for Stephen J. Salvatore effert(ve September 17, 2012 1 ATTACHMENT ..
Amendment Number One to Employment Agrecment Between the City olLathrop and Salvador V. Navarrete
November 19, 2018
The original EmpJoyment Agreement between the City of Lathrop and Salvador V. Navarrete; attached hereto and incorporated herein as Exhibit" A", was entered into between the parties for services ofCity Attorney on or about Jsnuary 14, 2008.
The Employment Agreement has automatically renewed in January of 2013 and January of 2018 pursuant to the conditions as described in Section 2 of the Employment Agreement, attached hereto and incorporated herein as Exhibit" B".
The City Council' has met and with a vote of 4- 0, with Councilmember Dresser absent, approves the followin amendment to the Employment Agreement, effective November 19, 201 S:
1. Increase current base salary by 5%; and
2. If Employee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacation time.
Unless specifically stated above, no other changes to the original agreement( or Amendment One) are intended by this Agreement.
EMPLOYEE CITY OF LATHROP
By: By:
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: Date:
APPROVED AS TO FORM:
1'z:./,
c ef G Col. t. r^-, 5 o r.' w.. 1r/
ATTEST:
Teresa Vargas, City Clerk
Attachments:
Exhibit" A"— Employment Agreement for Salvador V. Navanete effective January 14, 2008.
AT ACHMENT
5 ORIGINAL
MPLOYMENT CONTRACT
THIS EMPLOYMENT CONTRACT(" Contract") is made aad entered into this l Ith day ofDecember, 2007, by and between the City of Lathrop, Califomia, a general law city organized under the laws of the State of California, hereinafter called" Employer," and Salvador V. Navarrete, an individual, hereinafter called Employee," and is effective as of January 14, 2008(" Effectiva Date").
The pazties agree as follows:
SECTION 1. DUTIES.
A. General.
Employer hereby amploys Employee as City Attorney to perform the funcrions and duties specified in the laws of the State of California, the Municipal Code of the City of Lathrop, and the Ordinances and Resolutions ofthe City ofLathrop, and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign.
B. Description of Duties.
In amplification of Section lA.ofthe Contract, Employee shall serve as general counsel and chief legal advisor to employer, and perform all legal duties for Employer, except i) When, in the opinion of Employer, it would be more appropriate to hire outside specialist counsel. In such event, Employee shall assist Employer in selecting such outside specialist counsel. Such outside specialist counsel may serve in lieu ofEmployee on any particular matter, or may assist Employee; or
u) When counsel for Employer is otherwise provided, as in the case of counsel provided by insurers in connection with various insurance policies held by Employer, or provided by the Risk Management Authority of which Employer is a member; or iu) When a contlict exists such that Employee is prohibited by law or rules of professional conduct from representing or advising Employer.
C. In further amplification of Section 1. A. ofthis contract, Employee shall, unless excused by Employer, attend all meetings of the City Council and the Planning Commission of the City of Lathrop, and meetings of such other Boards or Commissions ofthe City as the City Council may, from time to time, direct.
D. In further amplification of Section 1. A ofthis Contract, it is recognized and agreed that Employee reports to the City Council ofEmployer, and not to the City Manager of Employer, but Employee will co-ordinate with the City Manager ofEmployer to ensure the legal needs ofEmployer are met. Employee shall operationally be considered a deparEment head with all the rights, duties and obligations thereof.
SECTION 2. TERM.
A. The term of this Contract shall initially be for five( 5) years, commenciag as of the Effective Date, and shall be automatically renewed and extended for an additional five( 5) year period atthe end of each renewal and extension period, unless either party shall provide written notice of non- renewal at least ninety( 90) days prior to the end ofthe period in which notice is given. In the event Employer declares its intention notto renew and axtend this Contract, then Employee, while continuing to perform all of his daties hereunder, ma.y undertake the pursuit of new employment opporlunities.
B. Nothing in this Contract shail prevent, limit, or otherwisa interfara with the right of Employee to resign at any time for any reason.
C. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 of this Contract D. Employee shall remain in the exclusive employ of Employer, and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.
E. The term" employed" shall not be construed to include occasional teaching, writing, speaking, or consulting performed during Employee' s time off.
SECTION 3. DISABILTi' Y.
If Employae shall, for whatever reason, become incapable of performing any of the essential functions of City Attorney, even with reasonable accommodation by Employer, either
1. Permanently, or
2. For a period exceeding the period ofleave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in this paragraph 2 is a reasonable accommodation. by Employer, and that granting longer time would ba an undue hazdship on Employee.
SECTION 4. SALARY_
Employer agrees bo pay Employee, effective January 14, 2008, for his duties, a base annual salary of one hundred fifty thousand dollars($ 150, 000) payable in instsllments at the same tinae and in the same manner as other Employees of the Employer are paid.
The City Council shall conduct an annual performance evaluation within fifteen( 15) days of January 14' each year commencing in 2009. This evaluation sha11 be completed as ajoint effort between Employee and Employer. ff desired, an outside faciIitator, to be mutually agreed upon by Employer and Employee, and at Employer' s sole cost, may be utilized. Upon satisfactory completion ofthis annual performance review, Employer may grant merit increases to the base salary and other benefits to provide to Employee under this Contract. Any such modifications shall be in writing and signed by Employee and Employer.
SECTION 5. HOURS OF WORK.
It is recognized that Employee must devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be granted fifteen( 15) days of management leave per calendar year.
Management leave is fully credited on January 1" of each year and cannot be cashed out or mlled over.
SECTION 6. AUTOMOBILE ALLOWANCE.
Employer shall receive an sutomobile aliowance of$450.00 per month for the general business use ofhis personal vehicle; however, Employer shall also reimburse Employea atthe IRS standard mileage rate for any business use of his personal vehicle for any s`mgle business trip totaling more than 100 miles.
SECTION 7. TERMINATION
This Contract shall terminate upon the occurrence of any of the following events:
A. Tha death ofEmployee.-
B. The dissolution or banlauptcy of Employer.
C. The disabiIity ofEmployee, as defined in Section 3 ofthis Contsact.
D. The majority ofthe City Council ofEmployer voYes to terminate the Employee at a duly suthorized meeting.
E. If the Employer, citizens or legislature act or acts to amend any provision of applicable iaw that substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.
F. If the Employer reduces the base salary, wmpensation or any other financial benefit of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Contract and will be regarded as termination.
G. If the Employee resigis following an offer to accept resignation, or a suggesdon that Employee resign, whether formal or informal, by any member of the City Council of Employer acting as representative of the majority of the City Council, then the Employee may declare a termination as of the date of the suggestion.
H. Breach of contract declared by either party with a thirty( 30) day cure period for either Employee or Employer to be provided. Written notice of a breach of contract shall be provided.
I. Conviction of Employee of any public offense that is a falony, and/ or involves moral turpitude, and/ or the punishment for which includes a prohibition of holding public employment.
SECTION 8. CONFIDENTIALTTY
A. Unless the Employee expressly requests otherwise in writing, the evaluation of the Employee shall at all times be conducted in closed session ofthe City Council and shall be considered confidential to tha maximum and full extent permitted by law. Nothing herein shall prohibit the Employer or the Employee from sharing the content of the City Attorney' s evaluation with their respective legal counsel.
B. In the event of termination or resignation, tha Employer and Employee agree not to make comments or statements about each other and sha11 respond to inquiries by only conf'irming that such termination or resignation occurred. In addition, the Employer and Employee agree not to discuss the circumstances surrounding employmant and termination with any person other than their respective legal counsel, including but not limited to members of the media, public, and City staff.
SECTION 9. SEVERANCE PAY
If this Contract is terminated because of the reasons specified in Section 7. C, 7. D, 7.E, 7.F, 7.G, or an uncured breach by Employer pursuant to 7.H, EmpIoyer shall pay saverance pay to Employee up to a maximum of nine( 9) months' salary. Employee may elect to treat the non- renewal of the Contract( as described in Section 2A) as a termination that entitles him to severance pay in accordance with this Section. A severance bank of six 6) months pay is granted on the 61$` day after the Effective Date of this Contract. Employee thereafter shall earn one( 1) additional month of severance per year of service, not to exceed a combined total of nine( 9) months severance.
IfEmployee is tenninated by the Employer within the three( 3) months preceding or following a General Election where one or more. City Council seats aze contested on the ballot of such election( the election cool-offperiod"), then Ernployee will be granted an additional three( 3) months severance salary only— no payout on additional benefits or leave accruals) to the severance bank currently earned.
Iftlus contracted is terminated for any reason specified in Section 7 within the first 60 days of employment, Employee will receive three( 3) months of severance pay.
Ifthis contract is terminated for any reason specified in Section 7, Employee sha.11 be paid for all accrued and unused sick leave, vacation time, paid holidays; and the cash value of all benefits including employer' s contribution to PERS, Health Insurance allowance, and car allowance. Severance will be paid in monthly installments equal in number to the number of months' severance due employee pursuant to this Section.
SECTION 10. NOTICE TO RESIGN
Employee may terminate this Contract by providing written notice to the City at least thirty( 30) days prior to the effective date of resignation. The City shall have no further obligation to provide payments and benefits after the effective date of the resignation. The City requests that Employee provide six( 6) to twelve( 12) montlts advance notice in the event that he determines to retire from service.
SECTION 11. VACATION AND SICK LEAVE.
Employee will accrue vacation at a rate of fifteen( 15) days per year. Up to forty( 40) hours of unused vacation hours earned may be cashed out. Employee will accrue ninety-six( 96) hours of sick leave per year. Up to forty( 40) hours of sick leave can be cashed out annually after Employee accrues ninety- six( 96) hours. There is no cap on accrual.
SECTION 12. DISABILITY. COST- OF-LNING ADJUSTMENTS. HEALTH AND LIFE INSURANCE.
Employee sha11 be provided the same disability, COLA adjustments( beginning with 2008 adjustment), health, dental, vision and life insurance benefits that are presently provided to other management employees of Employer and any such increases to benefits will not require City Council action to be effective. Employer will contribute$ 1, 620 per month towards Employee' s cafeteria plan.
SECTION 13. RETiREMENT.
Employer shall pay Employee' s contribution to the Public Employees Retirement System in accordance with adopted policies ofEmployer.
SECTION 14. DiTES AND SUBSCRIPTIONS.
Employer shall budget and pay for 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 his continued pmfessional participation, growth and advancement and for the good ofEmployer.
SECTION 15. PROFESSIONAL DEVELOPIV NT.
A. Employer shall budget for and pay the travel and subsistence expenses ofEmployee for professional official travel, meeting, s and occasions( maximum of three annually) adequate to continue the professional development ofEmployee and to adequately pursue necessary offi'cial and other functions for Employer, including but not limited to the League of California Cities and such other national, regional, state and local govemmental g"roups and committees thereof ofwhich Employee may serve as a member. Employer shall budgat and pay for ti e travel and subsistence expense ofEmployee for short courses, institutes and seminars necessary for her professional development and for the good ofthe Employer.
SECTION 16. REIlVIBURSEMENT OF EXPENSES.
To the extent Employee necessarily incurs expensas in the performance of her duties, Employee will receive prompt reimbiirsement therefore. Employee shall submit a claim form to Employer in the form and manner required of any employee. The requirement for a claim form shall apply to mileage reimbursement under Section 6 ofthis Contract.
SECTION 17. INDEMNIFICATION.
Employer shall defend, save harmless and indemnify Employee in accordance with Division 3. 6 of the California Government Code, commencing with section 810.
SECTTON 18. BONDING.
Employer sha11 bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.
SECTION 19. OTI R TERMS AND CONDTTiONS OF EMPLOYA NT..
Unless otherwise specifically provided herein, a11 provisions ofthe Municipal Code and regulations and rules ofFanployer including but not limited to those relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions, as they now exist or hereafter may be amended also shall apply to Employee as they would to other unrepresented employees ofthe Employer.
SECTTON 20. NOTICES.
Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows:
1) Employar: Mayor, City of Lathrop, 390 Towne Ceutre Drive, Lathrop, CA 95330 2) Employee: Salvador V. Navarrete, 3378 Lighthouse Court, Atwater, CA 95301 Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall ba deemed given as ofthe date of personal service or as ofthe date of deposit of such written notice in the course oftransmission in the United States Postal Service.
SECTION 21. GENERAL PROVISIONS.
A. The text herein shalI constitute the entire Contract between the parties.
B. Ifthe Employee dies prior to the expiration ofthe term of employment, any monies that may be due to him from Employer under this Agreement as ofthe date of his death shall be paid to his beneficiaries or personal represenmtives.
C. This Contract shall become effective on the date first written above.
D. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder ofthis Contract, or portion thereof, shall be deamed severable, shall not be affected and shall remain in full force and effect.
IN WITNESS WHEREOF, the City of Lathrop has caused this Contract to be signed and executed in its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, the day and year first above written.
EMPLOYER"
CITY OF p
By:
Kris S les, ay
l
r
Rick Caldeira, City Clerk
APPROVED AS TO FORM:
v
JO . STOVALL, Interim City Attomey
EMPLOYEE"
Salvador V. Navarrete
Amendment Number One to Employment Agreement Between the City of Lathrop and Salvador V. Navarrete
November 19, 2018
The original Employment Agreement between the City of Lathrop and Salvador V. Navarrete,' attached hereto and incorporated herein as Exhibit" A", was entered into between the parties for services of City Attomey on or about January 14, 2008.
The Employment Agreement has automatically renewed in January of 2013 and 7anuary of 2018 pursuant to the conditions as described in Section 2 of the Emplbyment Agreement, attached hereto and incorporated herein as Exhibit" B".
The City Council has met and with a vote of 4-0, with Councilmember Dresser absent, approves the following amendment to the Employment Agreement, effective November 19, 2018:
1. Increase current base salary by 5%; and
2. If Employee resigns his position, he will be paid for all accrued and unused management leave, sick leave and vacarion time.
Unless specifically stated above, no other changes to the original agreement( or Amendment One) aze intended by this Agreement.
EMPLOYEE CITY OF LATHROP
By: By:
Salvador V. Navarrete Sonny Dhaliwal, Mayor
Date: — Date: /
APPROVED AS TO FORM:
ATTEST:
eresa Vazgas, City Cl
Attachments:
Exhibit" A"— Employment Agreement for Salvador V. Navarrete effective January 14, 2008.