EMPLOYMENT AGREEMENT FOR CITY OF MANTECA INTERIM CITY MANAGER This Agreement is entered into, effective this 16th day of March, 2022 through December 12, 2022, by and between the City of Manteca, a municipal corporation (hereinafter called the “CITY”) and Toni Lundgren (hereinafter called “LUNDGREN”) (together the “Parties”).
R E C I T A L S
WHEREAS, the City Council of the City of Manteca is desirous of employing LUNDGREN to act as and perform the duties of the Interim City Manager; WHEREAS, LUNDGREN represents that she is qualified to perform the duties and services of the position of Interim City Manager and is agreeable to filling that position; WHEREAS, the CITY has established and set forth the duties, conditions, and responsibilities of the position of Interim City Manager; WHEREAS, the City represents that the appointment of LUNDGREN as Interim City Manager helps to ensure the CITY has adequate staffing and maintains consistency with the CITY staff for the remainder of the Council’s current term; WHEREAS, it is the desire of the CITY and LUNDGREN to enter into this interim employment agreement (“Agreement”) concerning compensation, benefits, terms and conditions of her employment as the Interim City Manager, effective March 16, 2022; WHEREAS, the Parties recognize, acknowledge, and agree that nothing herein shall jeopardize the rights and tenure of LUNDGREN regarding her position as Deputy City Manager; WHEREAS, LUNDGREN recognizes, acknowledges, agrees, and understands that the CITY has the absolute right and ability to conduct an external recruitment for a permanent City Manager at any point during her tenure as Interim City Manager or to end her appointment as Interim City Manager at any point during this term, consistent with this Agreement; WHEREAS, LUNDGREN and the CITY, by and through the City Council, recognize, acknowledge, agree, and understand that under no circumstance shall LUNDGREN be elevated to the position of permanent City Manager during this term, unless she participates in and is selected via an external recruitment as noted above; and WHEREAS, the Parties agree that as Interim City Manager, LUNDGREN shall serve at the behest and pleasure of the City Council.
INITIALS OF LUNDGREN: ______
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
EMPLOYMENT AND TERM: CITY hereby employs LUNDGREN, and LUNDGREN hereby accepts employment with the CITY in the position of Interim City Manager, on the terms and conditions and for the compensation set forth herein, for the term beginning March 16, 2022 through December 12, 2022, at 6pm (the day before new City Councilmembers and/or a Mayor are sworn in), unless terminated earlier as set out herein.
The CITY may terminate this Agreement without cause on forty-eight (48) hours’ notice. The Parties understand and agree that, in the event of said termination, LUNDGREN shall not be entitled to any severance. If the CITY does terminate the Agreement, LUNDGREN shall be permitted to go back to her position as Deputy City Manager.
LUNDGREN may terminate this Agreement without cause by submitting a thirty (30) days’ written notice of termination to the CITY. If LUNDGREN voluntarily resigns from the position of Interim City Manager, she will provide the CITY with a minimum of thirty (30) days’ advance written notice.
During the thirty (30) day period subsequent to said written notice of resignation and/or termination (by either the CITY or LUNDGREN), LUNDGREN shall continue to discharge her duties as Interim City Manager to the best of her ability, unless the City Council opts, in its sole discretion, to place LUNDGREN on paid leave during all or any portion of said thirty (30) day period.
The Parties agree, and LUNDGREN explicitly acknowledges, that should the CITY find a permanent City Manager during the term set out above, said time frames may become null and void at the sole election and discretion of the CITY, the CITY may appoint a permanent City Manager, and provide LUNDGREN anywhere from one (1) to four (4) weeks’ notice to conclude this Agreement.
The Parties further agree, and LUNDGREN acknowledges, understands, and agrees, that nothing herein precludes and/or limits the CITY from conducting an external recruitment for a permanent City Manager during the term set out in this Agreement.
DUTIES, FUNCTIONS, AND REPORTS: CITY hereby employs LUNDGREN as Interim City Manager to perform the duties of the City Manager as set forth in the City Manager’s current job description and Manteca Municipal Code, Chapter 2.08, which is incorporated into this Agreement by reference as if set forth in full. The Parties further agree:
LUNDGREN has the authority to recruit, terminate, separate, and discipline employees, as well as direct the workforce within her discretion to serve the best interests of the CITY.
In addition to the functions and responsibilities of the Interim City Manager, LUNDGREN shall serve as the Purchasing Officer, Municipal Employee Relations Officer, Chief Administrative Officer of the Manteca Financing Authority, and such other offices and duties as are normally associated with the office of the City Manager.
Further, LUNDGREN shall act as the Chief Administrator of the City, Executive Director of the Manteca Successor Agency and the Manteca Housing Authority, Personnel Officer, and Emergency Operations Center Director as included functions of the Interim City Manager position.
LUNDGREN shall perform her obligations and responsibilities diligently and within the time parameters indicated by the City Council, and shall apply the highest degree of professionalism, ethics, integrity, and competency to the discharge of every aspect of her obligations.
LUNDGREN shall not engage in any activity that is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law. LUNDGREN shall comply fully with her reporting and disclosure obligations under regulations promulgated by the Fair Political Practices Commission (“FPPC”).
LUNDGREN agrees to remain in the exclusive employ of the CITY during the term of this Agreement. LUNDGREN shall dedicate her full energies and qualifications to her employment as the Interim City Manager, and shall not engage in any other employment except as may be specifically approved in writing in advance by the City Council.
LUNDGREN shall devote her full time to her position as Interim City Manager and shall generally work normal office hours consistent with CITY guidelines. It is recognized that LUNDGREN may have to devote time outside the normal office hours to business or related business activities, meetings, correspondence, and/or functions of the CITY, and to that end, LUNDGREN will need to exercise a flexible work schedule.
In general, LUNDGREN shall perform all duties and functions specified in the CITY’s Municipal Code, ordinances, resolutions, policies, and the responsibilities set out in the job description and municipal ordinances for City Manager.
LUNDGREN shall not spend any time consulting on and/or working on non-CITY connected business without the prior approval of the City Council. Such outside business activities shall not interfere with the performance of LUNDGREN’s duties under this Agreement.
Consistent with the CITY’s Municipal Code, LUNDGREN shall report to the City Council.
LUNDGREN recognizes that the CITY may need to contact CalPERS HR regarding this appointment, consistent with CalPERS policy.
LUNDGREN acknowledges that she lives within forty (40) miles of CITY’s administrative offices.
LUNDGREN acknowledges and agrees that due to her status as an Interim City Manager, certain rights and/or privileges as set out in the Municipal Code Section 2.08 may not apply to her including, but not limited to, those discussed below. As such, LUNDGREN waives such rights.
3. COMPENSATION: CITY agrees to pay LUNDGREN a base salary of $200,000/year subject to applicable payroll taxes and withholdings, for services under this Agreement. Payments will be made on regularly scheduled CITY payroll dates, and shall be subject to all applicable payroll taxes and withholdings. LUNDGREN’s benefits and coverages shall be tied to Executive Management Team Memorandum of Understanding (SSB) only for the duration of this term. All other benefits for LUNDGREN shall be set out in this Agreement in Section 4.
CAR STIPEND; OTHER EXPENSES. CITY shall provide LUNDGREN with a car stipend of $300/month. CITY shall also provide LUNDGREN, if she so elects, with a CITY issued cell-phone and CITY issued iPad during the duration of her term as Interim City Manager, which LUNDGREN shall surrender to the CITY following the end of her term and/or the end of this Agreement, whichever occurs earlier, unless such items are already in LUNDGREN’s position vis-à-vis her position as Deputy City Manager. The CITY, by and through the City Council, may also approve that LUNDGREN attend select conferences and/or continuing education meetings/summits, subject to City Council approval.
LIABILITY. Subject to the terms and limitations of the Government Claims Act (Government Code sections 810 et seq.), CITY agrees to indemnify, hold harmless and defend at its expense LUNDGREN from any and all claims, actions, losses, damages, charges, and expenses, including attorneys’ fees to which LUNDGREN may be subject to, arising out of, or resulting from the performance of this Agreement and LUNDGREN’s duties hereunder. This section shall not apply to liability incurred by LUNDGREN for actions that are outside the scope of services or which result from willful or malicious conduct or gross negligence.
NO PROPERTY RIGHT IN EMPLOYMENT. LUNDGREN understands and agrees that the term of her employment as Interim City Manager is governed only by this Agreement and that no right of regular employment for any specific term is created by this Agreement. LUNDGREN further understands that she acquires no property interest in her employment as Interim City Manager by virtue of this Agreement, that the employment of her as Interim City Manager is “at will,” as defined by the laws of the State of California (meaning that she can be terminated at any time for any reason or for no reason), and that she is not entitled to any pre- or post-deprivation administrative hearing or other due process upon termination or any disciplinary action, including, but not limited to, any appeal procedures set forth in the Manteca Personnel Rules and Regulations. Moreover, because it is an interim position, the due process requirements of the Manteca Municipal Code applicable to City Manager positions, including the notice and hearing provisions contained at Section 2.08.100, et seq., shall not apply. Notwithstanding the above, nothing herein shall effect the tenure and/or rights of LUNDGREN as Deputy City Manager.
NOTICE. Notices required pursuant to this Agreement shall be given by personal service upon the Party to be notified or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows:
If to CITY:
City of Manteca
1001 W. Center Street
Manteca, CA 95337
Attention: City Attorney
If to LUNDGREN:
Address on file with the CITY.
NON-ASSIGNMENT OF AGREEMENT. This Agreement is intended to secure the individual services of the LUNDGREN and is not assignable and/or transferable by LUNDGREN to any third party.
GOVERNING LAW AND VENUE. This Agreement shall be interpreted according to the laws of the State of California. The exclusive venue to resolve any disputes related to this Agreement shall be the Superior Court for the County of San Joaquin, California.
ENFORCEABILITY AND SEVERABILITY. If any term, covenant, condition, section, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.
CONFLICT OF INTEREST. LUNDGREN agrees that during the term of this Agreement, she will not maintain any financial interest or engage in any other contract employment, occupation, work, endeavor, or association, whether compensated or not, that would in any way conflict with, or impair LUNDGREN’s ability to perform the duties described in this Agreement. Any work performed for CITY outside the terms of this Agreement must be approved in advance in writing by the City Council. LUNDGREN agrees to disclose whether she is performing work for any other CalPERS public agency employer as required by this Agreement.
ENTIRE AGREEMENT; APPLICABILITY; AND MODIFICATION. This Agreement constitutes the entire understanding of the Parties hereto. This Agreement supersedes any previous contracts, agreements, negotiations or understandings, whether written or oral, between the Parties. LUNDGREN shall be entitled to no other compensation or benefits than those specified herein, and LUNDGREN acknowledges that no representation, inducements or promises not contained in this Agreement have been made to LUNDGREN to induce LUNDGREN to enter into this Agreement. No changes, amendments, or alterations hereto shall be effective unless in writing and signed by both Parties. LUNDGREN understands that no oral modifications of this Agreement made by any officer, agent, or employee of CITY is effective. LUNDGREN specifically acknowledges that in entering into and executing this Agreement, she relies solely upon the provisions contained herein and no others. To the extent applicable and/or permitted by law, this Agreement shall apply retroactively.
NO PRESUMPTION OF DRAFTER. The Parties acknowledge and agree that the terms and provisions of this Agreement have been negotiated and discussed between the Parties, and this Agreement reflects their mutual agreement regarding the subject matter of this Agreement. Because of the nature of such negotiations and discussions, it would be inappropriate to deem any Party to be the drafter of this Agreement, and, therefore, no presumption for or against validity or as to any interpretation, based upon the identity of the drafter, shall be applicable in interpreting or enforcing this Agreement.
ASSISTANCE OF COUNSEL. Each Party to this Agreement warrants to the other Party that the Party has either had the assistance of counsel in negotiation for, and preparation of, this Agreement or could have had such assistance and voluntarily declined to obtain such assistance.
BONDING. The CITY shall bear the full cost of any fidelity or other bond required of LUNDGREN as the Interim City Manager under any law or ordinance.
COMPLIANCE WITH AB 1344. Notwithstanding any other provision of this Agreement, CITY and LUNDGREN agree to fully comply with the Government Code sections that are part of AB 1344, as it became effective on January 1, 2012 (“AB 1344”), and to fully comply with other applicable law as it exists as of the date of execution of this Agreement, and as the Agreement may be amended from time to time thereafter. In that regard, the following Government Code sections are hereby incorporated into the terms of this Agreement:
§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position, §53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position, §53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position, §53243.3. Reimbursement of non-contractual payments upon conviction or crime involving office or position and §53243.4. Abuse of office or position defined.
LUNDGREN has reviewed, is familiar with, and agrees to comply fully with each of those provisions if any are ever applicable to LUNDGREN, including that LUNDGREN agrees that any cash settlement or severance LUNDGREN may receive as a result of any termination shall be fully reimbursed to the CITY if LUNDGREN is convicted of a crime involving an abuse of her office or position. [REST OF THE PAGE LEFT INTENTIONALLY BLANK]
IN WITNESS WHEREOF, the above Parties have executed this Agreement as of the date first written above:
CITY OF MANTECA TONI LUNDGREN
By: Benjamin Cantu, Mayor
ATTEST APPROVED AS TO FORM
Acting City Clerk L. David Nefouse, City Attorney
REVIEWED AS TO FORM:
________________________________________
Dawn Cortesi, Acting Human Resources Director