PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.D
SUBJECT/TITLE:
APPROVAL OF INTERIM CITY MANAGER EMPLOYMENT AGREEMENT WITH JORGE E. GARCIA
RECOMMENDATION:
Approve an Interim City Manager Employment Agreement with Assistant City Manager Jorge E. Garcia.
BACKGROUND:
James R. Lewis has served as Pismo Beach’s City Manager since February 2013. In May 2023, Lewis indicated that he would be leaving Pismo Beach, to accept the City Manager position in Atascadero. The City Council will begin a recruitment process to select the new City Manager, which may take approximately three to six months to complete.
The Assistant City Manager, Jorge E. Garcia, was asked by the City Council to serve in an Interim City Manager capacity to keep the organization’s progress moving forward during the transition. Garcia has accepted the Interim City Manager assignment, subject to the terms of the attached agreement.
During his time as Interim City Manager, Garcia will assume the full duties and responsibilities of the City Manager position while retaining all of his regular Assistant City Manager duties. The attached Interim City Manager Agreement reflects a maximum term of six months for the interim assignment, and it includes a ten percent base salary increase over the regular Assistant City Manager salary as compensation for the additional City Manager duties, and no other additional benefits or compensation are being considered as part of the agreement.
Conclusion and Recommendation
Staff recommends that the City Council approve the Interim City Manager Employment Agreement with Jorge E. Garcia.
FISCAL IMPACT:
There is no direct fiscal impact as there is sufficient budget with the salary savings from the vacant City Manager position. The current monthly salary for the Assistant City Manager is $15,752. The proposed ten percent increase during the term of the agreement is for $1,575, for a total of $17,327 monthly, and would be adjusted for cost-of-living increases consistent with other management employees.
ALTERNATIVES:
1. Provide alternative direction.
Council Agenda 5-16-2023 12.D-1
ATTACHMENTS:
1. Interim City Manager Employment Agreement
Submitted by: Meeting Date: May 16, 2023
James R. Lewis, City Manager
City Manager Approval:
Council Agenda 5-16-2023 12.D-2
EMPLOYMENT AGREEMENT
INTERIM CITY MANAGER
THIS AGREEMENT (“Agreement”) is made and entered into this 16th day of May, 2023 by and between the City of Pismo Beach ("City"), and Jorge E. Garcia ("Employee").
A.On May 10, 2023 the City Council of the City of Pismo Beach ("City Council") appointed Employee as Interim City Manager effecƟve May 27, 2023 ("Start Date"); and
B.City Council and Employee desire to memorialize in this Agreement certain benefits, terms, and condiƟons of employment of Employee.
NOW, THEREFORE, in consideraƟon of the mutual covenants contained herein and the foregoing recitals that are incorporated into this Agreement, the parƟes agree as follows:
1.Employment. City hereby agrees to employ Employee as Interim City Manager of the City of Pismo Beach commencing on the Start Date, to serve at the pleasure of the City Council subject to the terms and condiƟons set forth in this Agreement.
2.Term. Agreement shall be in effect from May 27, 2023, and may be terminated only according to its terms.
If Agreement has not been terminated before November 30, 2023, the City Council will meet to discuss its terms.
3.DuƟes. Commencing on the Start Date, Employee shall perform the funcƟons and duƟes of the City Manager as specified in Chapter 2.08 of the Pismo Beach Municipal Code (“PBMC”) and such other legally permissible and proper duƟes and funcƟons consistent with the office of the City Manager, as the City Council assigns.
4.City Council Commitments.
a.City Council and Employee shall meet to formally develop goals and expectaƟons for his performance as the Interim City Manager.
b.As defined in PBMC Chapter 2.08.060, the City Council and its members shall interact with the administraƟve employees through the Interim City Manager, except for the purpose on inquiry and neither the City Council nor any members thereof shall give orders to any subordinates of the Interim City Manager.
5.Salary. City agrees to pay Employee ten percent (10%) above his current Salary Range and Step, or any superseding salary schedule, commencing on the Start Date for the duraƟon of this appointment, pursuant to this Agreement. The Interim City Manager’s posiƟon is exempt from the overƟme provisions of the Fair Labor Standards Act and is not eligible for overƟme pay.
6.Benefits/ReƟrement. The sums payable to Employee under this Agreement are in addiƟon to all other fringe benefits, reƟrement plans and contribuƟons, expense and subsistence allowances, leaves, reimbursements and allowances, and other perquisites Employee receives in his posiƟon as Assistant City Manager pursuant to City Council ResoluƟon R‐2022‐063, the Personnel ResoluƟon covering Non‐ Represented Full‐Time City Employees ("Personnel ResoluƟon") or any superseding resoluƟon in effect during the duraƟon of this Agreement.
7.Professional Development. Employee agrees to acƟvely parƟcipate in such state, regional, and local organizaƟons as necessary for the representaƟon of City and for effecƟve performance of his duƟes. City shall pay in advance or reimburse Employee for reasonable and necessary expenses incurred by Employee relaƟng to such acƟviƟes pursuant to the City’s policies.
Council Agenda 5-16-2023 12.D-3
Attachment 1
8.Termina Ɵon.
a.Mutual Consent. This Agreement may be terminated at any Ɵme upon the mutual, wriƩen agreement of both City and Employee.
b.By Employee. Employee may terminate this Agreement at any Ɵme by giving City not less than fiŌeen (15)days’ prior wriƩen noƟce.
c.By City. City may terminate this Agreement without cause at any Ɵme upon the affirmaƟve vote of not less than three members of the City Council.
d.Upon Hiring of City Manager. When the City Council hires a City Manager, this Agreement will terminate on the day prior to the City Manager's start date.
9.Return Rights to Previous PosiƟon. Employee shall have full return rights to the posiƟon of Assistant City Manager if this Agreement is terminated pursuant to Paragraph 8. If Employee returns to the Assistant City Manager classificaƟon aŌer the City hires a City Manager, Employee shall conƟnue to earn the salary set out in Paragraph 5 unƟl November 30, 2023. The City agrees that the posiƟon of Assistant City Manager will not be filled with a permanent replacement during Employee’s services as the Interim City Manager under this Agreement. This paragraph will survive the terminaƟon of this Agreement.
10.General Provisions.
a.EnƟre Agreement. This wriƩen Agreement contains the enƟre understanding between the parƟes as to the subject maƩer hereof and supersedes all prior and contemporaneous oral and wriƩen understandings or agreements of the parƟes and as such, is fully integrated. No promise, representaƟon, warranty, or covenant not included in this Agreement has been or is relied on by any party. b.Severability. If any porƟon of this Agreement or the applicaƟon thereof is held unconsƟtuƟonal, invalid, or unenforceable, the remainder of this Agreement shall not be affected and shall remain in full force and effect to the greatest extent permiƩed by law.
c.Amendments. This Agreement may be amended only in wriƟng and duly authorized and executed by both parƟes.
d.Pursuant to Government Code SecƟon 53243.2, regardless of the term of this Agreement, if the Agreement is terminated, any cash seƩlement related to the terminaƟon that Manager may receive from City shall be fully reimbursed to City if Manager is convicted of a crime involving an abuse of his office or posiƟon as Interim City Manager of City.
11.NoƟces. NoƟces pursuant to this Agreement shall be given by deposiƟng such noƟce in the custody of the United States postal service, postage prepaid, addressed as follows:
For City
City Clerk
760 Maƫe Road
Pismo Beach, CA 93449
For Employee
Jorge E. Garcia
(address on file)
The parƟes have executed this Agreement the day and year first wriƩen above.
Signatures begin on the following page.
Council Agenda 5-16-2023 12.D-4
Attachment 1
CITY:
City of Pismo Beach, a Municipal CorporaƟon
Signed:
Name: Ed Waage
Title: Mayor
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City AƩorney
EMPLOYEE:
Jorge E. Garcia
Signed:
Name: Jorge E. Garcia
Dated: ________________________________
Council Agenda 5-16-2023 12.D-5
Attachment 1