CITY OF ORANGE
AGREEMENT FOR EMPLOYMENT
OF CITY MANAGER
THIS AGREEMENT FOR EMPLOYMENT, (“Agreement”) made and entered into to be effective on March 14, 2022, by and between the City of Orange, a municipal corporation (hereafter, “City”) and Robert J. Houston, an individual.
1. The City Council of the City hereby appoints Robert J. Houston as the City Manager of the City for a period commencing on or about March 14, 2022 and expiring on March 31, 2025, unless otherwise extended or terminated as herein provided.
2. Robert J. Houston (hereafter, “City Manager”) desires to perform the duties of City Manager for the City and hereby accepts such appointment under the terms and conditions set forth in this Agreement.
3. Compensation
a. Effective upon appointment as City Manager, the salary of the City Manager is established at $280,000.00 annually and shall be paid in the same manner and at the same times as other monthly salaries in the City are paid. During the term of this Agreement, if any across the board salary increases are approved for the Non-Safety Executive Management Team listed in Exhibit “A” to Resolution No. 11332 or as such Resolution may be amended, then the City Manager shall be entitled to the same percentage increase.
b. The City Manager’s performance shall be reviewed by the City Council at the first meeting in September of each year of this Agreement. At such time the City Council may determine any salary adjustments, extensions or other revisions to this Agreement. It is the responsibility of the City Attorney to agendize the annual performance evaluation, although any member of the City Council may agendize the City Manager’s performance review at any time. Annual written evaluations by the City Council, if any, shall be shared and discussed with the City Manager in closed session or individually per the City Council’s discretion.
2 c. Except as otherwise provided for in this Agreement, within the first six months of employment, City Manager shall receive a performance review and be considered for additional compensation at the September 13, 2022, City Council meeting.
4. Benefits
a. In addition to any benefits provided in this Agreement, City Manager shall receive those benefits and be governed by all applicable rules and regulations related to those benefits provided for Executive Management in Resolution No. 11332 or as such Resolution may be amended; provided that it is understood that the City Manager shall pay Miscellaneous Member Contributions to the California Public Employees’ Retirement System (CalPERS) at the same level and in the same manner as Executive Management as provided in Resolution No. 11332 or as such Resolution may be amended.
b. City Manager shall receive an annual deferred compensation contribution of $12,000.00, payable bi-weekly. The amounts contributed by the City shall be subject to the terms and conditions of the City of Orange Deferred Compensation Plan. c. City Manager’s duties require an available and unrestricted use of an automobile for business purposes and City Manager agrees to have a personal vehicle available for such use. City Manager shall receive an automobile allowance of $600.00 per month, payable bi-weekly. The car allowance is not pension reportable (non-PERSable compensation) and is subject to all tax withholdings, required by law. City Manager shall maintain a current and valid Driver License and be responsible for all operation, maintenance, and insurance costs associated with said automobile. d. In recognition of City Manager’s significant public sector experience, the parties agree that paid vacation accrual, in accordance with Resolution No. 11332, Exhibit A, Section 19 A., shall be commensurate with an employee with 20 years of service, and accrue at a rate of 224 vacation hours per year.
e. Upon employment with City, City Manager shall be provided a bank of 80 hours of vacation and 40 hours of sick leave.
3 5. Termination
a. The City reserves the right to terminate this Agreement for any reason prior to March 31, 2025, by providing City Manager written notice of its election to terminate as authorized by a majority of the City Council and as provided in Orange Municipal Code Section 2.16.070 and as it may be amended.
b. Except as otherwise provided herein, in the event City Manager is terminated prior to March 31, 2025, the City shall pay City Manager full salary as set forth in Section 3.a of this Agreement or as it may be later amended, and health benefits for six months, or the actual time left in the Agreement term, whichever is less. This severance amount shall only be payable, provided that City Manager has executed a release, waiving any rights, claims, or any other actions arising out of termination of this Agreement in a form acceptable to the City Attorney and City Council. c. Except as otherwise provided herein, City Manager may not be terminated within 90 days after any municipal election for the selection or recall of one or more of the members of the City Council.
6. Notwithstanding anything contained herein to the contrary, in the event the City Manager is terminated for cause, City Manager shall forfeit any and all benefits and payments he may be entitled to including, without limitation, severance payments and all benefits described in this Agreement. In addition to other grounds as provided in Orange Municipal Code Section 2.16.070, the following shall also be considered grounds for termination for cause:
a. A conviction or plea of nolo contendre of a felony or a crime involving moral turpitude that adversely affects the City or the City Manager’s reputation; b. A conviction or plea of nolo contendre of a misdemeanor arising out of the City Manager’s duties or performance under this Agreement;
c. A conviction or plea of nolo contendre of any crime involving “an abuse of office or position,” as that term is defined in Government Code Section 53243.4; d. Willful abandonment of duties consisting of the failure to report to work for five consecutive working days (for reasons not medically-related) and without notifying staff and the City Council of City Manager’s status;
4 e. Willful and intentional failure to carry out materially significant and legally constituted policy decisions of the City Council, as directed by the City Council; f. Willful destruction or misuse of City property;
g. Willful violation of the federal, state, or City discrimination laws, including but not limited to, race, religion, creed, color, national origin, ancestry, physical or mental disability, marital status, sex, sexual orientation, or age concerning either members of the general public or City employee(s) while acting in the course and scope of employment; h. Any other intentional or grossly negligent action or inaction by the City Manager that: 1) materially and substantially impedes or disrupts the operations of the City or its organizational units; 2) is detrimental to employees or public safety; 3) violates properly established rules or procedures of the City causing a material and substantial adverse impact on the City; or 4) has a material and substantial adverse effect on the City’s interests as clearly defined and delineated by properly established City Council action, policy, direction, regulations, ordinances, or City Municipal Code provisions.
7. City Manager shall notify the Mayor and City Council of absences during regular business hours. City Manager shall provide a telephone number(s) where he can be reached during such absences. City Manager shall designate an acting City Manager who shall be authorized to perform the duties and responsibilities of City Manager in his absence.
8. In the event the City Manager voluntarily resigns his position with the City before expiration of the term of this Agreement or any extension thereof, City Manager shall give the City Council 60 days written notice, unless the parties otherwise agree. In the event of voluntary resignation or expiration of this Agreement, City Manager is not entitled to the severance payment and benefits described in this Agreement.
9. This Agreement may only be amended in writing, signed by both parties.
10. This Agreement contains the understanding of the parties and no promises or representations not included in this Agreement shall have any force or effect. Each party agrees that they have engaged in arms-length bargaining and have been provided the opportunity to have the Agreement reviewed by an attorney of their choice.
11. Neither party may assign the performance of this Agreement. 5 12. If any provision or portion hereof is held unconstitutional, invalid or unenforceable, the remainder of this Agreement shall be deemed severable and shall not be affected and shall remain in full force and effect, and the City Council and the City Manager shall be deemed to have intended to enter into this Agreement even absent such provision or portion hereof.
IN WITNESS WHEREOF , the parties hereto have executed this Agreement which shall commence on the effective date herein.
DATE OF EXECUTION: CITY OF ORANGE, a municipal corporation, Mark A. Murphy, Mayor
ATTEST:
Pamela Coleman, City Clerk
DATE OF EXECUTION: ROBERT J. HOUSTON, an individual,
APPROVED AS TO FORM:
Gary A. Sheatz, City Attorney