EMPLOYMENT AGREEMENT FOR CITY MANAGER SERVICES
This Employment Agreement for City Manager Services between the City of Pleasant Hill ("City") and Ethan Bindernagel ("Employee") is entered into effective June 26, 2023.
WHEREAS, the City Council of the City of Pleasant Hill ("Council") desires to employ the services of Ethan Bindernagel as City Manager of the City of Pleasant Hill, as provided in Chapter 2.10 of the Pleasant Hill Municipal Code; and
WHEREAS, it isthe desire of the City Council to provide certain benefits and establish certain conditions of employment for the City Manager; and WHEREAS, Employee desires to accept employment as City Manager of the City of Pleasant Hill.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:
1. Powers and Duties. City agrees to employ Employee as City Manager of the City of Pleasant Hill to diligently and faithfully perform the functions and duties set forth in Chapter
2.10 of the Pleasant Hill Municipal Code, the City's ordinances and resolutions and such other duties as may be required of the City Manager by the City Council. Employee shall concurrently serve as the Executive Director of the Redevelopment S u c c e s s o r Agency.
2. Term. The term of this Agreement commences on June 26, 2023, and continues until terminated in accordance with the provisions of Paragraph 4 or until terminated by the event of the death or permanent disability of Employee.
3. Exclusive Employment. Employee agrees to remain in the exclusive employ of the City and shall not accept employment from or on behalf of any person, firm, corporation, or entity during the term of this Agreement. This shall not be construed to prevent Employee from performing occasional teaching, writing, speaking or incidental consulting for other governmental agencies or not-for-profit organizations during Employee's time off provided such services shall not present a conflict of interest with the City or impair Employee's ability to fully perform the duties as City Manager for the City.
4. Termination and Severance.
(a) Employee serves at the pleasure of the Council as an at-will employee. Council shall have the right to terminate this Agreement at any time upon a three-fifth's (3/5) vote, except that this Agreement may not be terminated by Council within six months following any municipal election or mid-term appointment at which time any seat on the Council is changed.
The purpose of this exception is to allow the Council adequate time to objectively evaluate Employee's performance.
In the event Council terminates this Agreement as provided in paragraph 4(a) above during the first year of employment, City shall pay to Employee severance pay in an amount equal to six (6) months’ salary. For purposes of this calculation, salary should not include the value of any benefits received by Employee. Beginning with the second year of employment and commencing on July 1, 2024, in the event Council terminates this Agreement as provided in paragraph 4(a) above, City shall pay to Employee severance pay in an amount equal to twelve (12) months’ salary. For purposes of this calculation, salary should not include the value of any benefits received by Employee. The severance pay maybe paid, at the option of the Employee, in (1) a lump sum payment within fifteen (15) working days after the effective date of Employee's termination; (2) a lump sum on January 1 of the year following termination; or (3) twelve (12) equal monthly installments commencing on the fifth day of the month following termination.
Such payment will release City from any further obligations under this Agreement. (b) Employee may choose to resign the office of City Manager instead of being terminated if a decision to initiate termination proceedings under Section 2.10.080 of the Pleasant Hill Municipal Code has been made by the City Council in closed session. In such an event, Employee shall be entitled to severance pay as set forth in paragraph 4(a), above.
(c) City may terminate this Agreement "for cause" without obligation to make any cash payment to Employee (other than compensation and benefits accrued but unpaid at the date of termination) for any of the following reasons: (1) willful neglect of duty; (2) conviction of any criminal offense involving moral turpitude; (3) violation of duties to the City of honesty and sobriety; and (4) any other act of a similar nature of the same or greater seriousness such that the credibility of the Employee as a city official is placed in jeopardy. (d) Employee may terminate this Agreement at any time upon 30 days’ written notice.
During the 30-day notice period, Employee shall continue to faithfully and competently perform the duties of City Manager as set forth in this Agreement.
5. Compensation. Effective June 26, 2023, City agrees to pay Employee a salary of $22,917 per month ($275,000 per year). Thereafter, future salary adjustments shall be at the sole discretion of the City Council based upon an evaluation of Employee's performance.
6. Benefits. In addition to Employee's salary, Employee shall receive the following benefits:
(a) Management Group Benefits. Employee shall be entitled to all of the benefits and rights afforded top management by the Management Pay Plan, asit may be amended from time to time, including, but not limited to, holiday pay, sick leave, vacation, annual cost of living increases, administrative leave, City-paid health, dental, vision, life, long-term disability, worker's compensation insurance benefits, retirement benefits through the California Public Employees’ Retirement System (PERS),and deferred compensation and money purchase p1an (ICMA 457 Retirement Plan and ICMA 401(a) Retirement Plan). (b) Vacation Leave Benefits. Employee shall receive 20 days of vacation leave which shall be immediately available effective June 26, 2023, and shall accrue vacation thereafter pursuant to the Management Pay Plan for employees who have accrued 20 days vacation. In recognition of Employee’s current employment with the City of Pleasant Hill, Employee shall be entitled to transfer any previously accrued vacation time and sick leave to Employee’s new position of City Manager.
2 (c) Professional Development. The City shall pay professional association dues, and ordinary educational, business, and travel expenses for the City Manager's participation in the activities of the League of California Cities, the International City Management Association and California City Manager's Association. Additional business travel, training, and conference expenses shall be paid by City in accordance with budgeted expenditure approval by the City Council.
7. Performance Evaluations. The Council may review and evaluate Employee’s performance as City Manager on an annual basis. In addition, the Council may review and evaluate Employee’s performance as City Manager after the first six (6) months’ of employment as City Manager.
8. Indemnification. Consistent with California Government Code Sections 825 and 995, and subject only to the limitations provided therein, City shall defend and pay any costs, expenses and settlements or judgements assessed against City Manager arising out of any civil action or proceeding brought against City manager in his official or individual capacity, or both, for an act or omission by City Manager occurring in the course and scope of City Manager’s performance of his duties under this Agreement, provided, however, City shall have no indemnification obligation for costs, expenses, settlements or judgements arising from City Manager conduct that falls within Section 4 (c)(2) of this agreement. The City’s obligations under this Section shall survive any termination of this Agreement.
9. Amendments. This Agreement may be amended from time to time by mutual agreement of City and Employee, provided that no such amendment shall be effective nor have any force or effect unless expressed in writing, duly authorized and executed by both parties thereto.
10. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the City and Employee. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the subject matter thereof
11. Severability. Should any part of this Agreement be declared by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect.
IN WITNESS WHEREOF, City and Employee have executed this Agreement as of the date first written above.
EMPLOYEE: CITY OF PLEASANT HILL
Ethan Bindernagel, City Manager Timothy M. Flaherty, Mayor 3