CITY MANAGER AT-WILL EMPLOYMENT AGREEMENT
FOR PROFESSIONAL SERVICES
THIS CITY MANAGER AT-WILL EMPLOYMENT AGREEMENT FOR PROFESSIONAL SERVICES agreement made and entered into November 20,2020February 15, 2023 by and between the CITY OF POINT ARENA, ("CITY/City Council"), and Paul Andersen, an individual, ("CITY MANAGER"), both of whom understand as follows:
RECITALS:
WHEREAS, the City of Point of Arena Municipal Code Section 2.05 City Manager and following, establishes the Office of the City Manager, and delineates the duties thereof; and WHEREAS, CITY desiresto engagethe services of Paul Andersen to perform the duties of the Office of the City Manager of the City of Point Arena, as provided by the City of Point Arena Municipal Code; and
WHEREAS, it is the desire of the Point Arena City Council to provide certain benefits, to establish certain conditions of employment, and to set working conditions of said CITY MANAGER within the framework of an at will employment relationship;and WHEREAS, it is the intention of the parties to fully comply with the provisions of the City of Point Arena Municipal Code; and
WHEREAS, the parties acknowledge that CITY MANAGER is subject to the ICMA Code of Ethics; and
NOW, THEREFORE, the CITY AND CITY MANAGER enter into this AGREEMENT and, FURTHERMORE, in consideration ofthemutual covenantsherein contained,theparties hereto agree as follows:
Section 1: DUTIES
CITY hereby agrees to employ Paul Andersen effective February 15, 2021 as the City Manager of CITY to perform the functions and duties of City Manager as set forth in the City of Point Arena Municipal Code, resolutions, ordinances, and/or other regulations of the City, and to perform other legally permissible and proper duties and functions as the City Council shall from time-to-time assign.
Section 2: TERM.
A. The terms of this Agreement shall commence on February 15, 20231 and terminate on February 15, 20243 unless terminated earlier in accordance with this Agreement.
B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Council to terminate the services of CITY MANAGER at any time, subject only to the provisions set forth in Section 3.
C. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of CITY MANAGER to resign at any time from his position with CITY, subject only to the provision set forth in Section 4 of this Agreement.
Section 3: TERMINATION AND SEVERANCE PAY.
A. This Agreement shall terminate upon the occurrence of any of the following events:
1. Upon thirty(30) days written notice given to the CITY by CITY MANAGER; or
2. Upon the death of CITY MANAGER; or
3. Upon a determination of a permanent disability and inability to perform with reasonable accommodation of CITY MANAGER to perform the essential duties of his position; or
4. Upon the effective date of retirement from CITY'S service; or
5. Upon decision of the City Council of CITY to terminate CITY MANAGER, with or without cause.
B. In the event CITY MANAGER is terminated without cause, CITY agrees to pay CITY MANAGER a lump sum cash severance payment equal to the total of four (4) months of the CITY MANAGER’s then current aggregate salary, and all accrued benefits (including vacation, administrative leave and holidays).
C. In the event CITY MANAGER is terminated for cause or conviction, then, in that event, CITY shall have no obligation to pay the aggregate severance sum designated in the above paragraph.
D. Notwithstanding the provisions of Section 3.A.1 and 3.A.5, above, CITY MANAGER may not be terminated (excepting a termination for cause) for a period of three (3) months following a municipal election wherein (a) new Council Member(s) is/are seated. "Termination for Cause" shall include, but is not limited to:
1. Willful breach of the Agreement as interpreted pursuant to Labor Code Section 2924.
2. Habitual neglect of the duties required to be performed as City Manager as interpreted pursuant to Labor Code 2924.
3. Any acts of dishonesty, fraud, misrepresentation or other acts of moral turpitude.
4. Conviction of any act which would constitute a crime, whether misdemeanor or felony, and which would bring disrespect to the Office of City Manager or the CITY.
5. Willful violations of CITY policies of a serious nature, including but not limited to, for example, CITY's Sexual Harassment or "Drugs in the Work Place" policies.
E. Should CITY MANAGER be terminated or suspended for cause, CITY MANAGER shall have a written notice of the cause of his removal or suspension from duty, and may be heard on the cause of his removal or suspension before a public hearing of the City Council if CITY MANAGER requests a public hearing and if the City Council so agrees. Notwithstanding the foregoing notice and opportunity to be heard, if the City Council so agrees, on the cause of his removal at a public hearing, CITY MANAGER is an at-will employee who shall serve at the pleasure of the City Council, and nothing in this agreement is intended to, or does, confer upon CITY MANAGER any right, or expectation of any right or property interest, in continued employment.
F. In the event CITY at any time during the term of this Agreement reduces the salary or other financial benefits of CITY MANAGER consistent with or in a greater percentage than an applicable across-the-board reduction for all employees of CITY, or in the event CITY refuses, following written notice, to comply with any other provision benefitting CITY MANAGER herein, or CITY MANAGER resigns following a suggestion, whether formal or informal, by the Council that he resign, then in that event the CITY MANAGER may, at his option, be deemed to be terminated at the date of such reduction or such refusal to comply and is deemed terminated without cause within the meaning and context of the herein severance pay provision.
G. If CITY MANAGER becomes permanently disabled or unable to perform his duties due to sickness, accident, injury, mental incapacity or health for a period of three (3) successive months, or another time period to be determined by the parties, beyond any accrued sick leave and provision of other leave such FMLA or CFRA, the CITY shall have the option to terminate this Agreement. Upon termination pursuant to this provision CITY shall have no obligation to pay severance pursuant to Section 3 B.
Section 4: RESIGNATION.
In the event CITY MANAGER voluntarily resigns his position with CITY, then CITY MANAGER shall give CITY a thirty-day (30) written notice in advance, unless the parties agree otherwise.
Section 5: COMPENSATION.
Under this Agreement, CITY MANAGER’s compensation will be an annual base salary of $75,500 84,379. This amount remains based upon an anticipated 40-hour work week, payable in installments at the same time as other employees of the CITY are paid.
CITY may increase said salary and/or benefits in such amounts and to such extent as the Council may determine that it is desirable to do so based on periodic performance and salary review. Said reviews will be conducted on an annual basis on or before the Anniversary Date of the Agreement, February 15.
Except as hereinafter provided, CITY MANAGER shall receive such other and further benefits as are accorded other employees of the CITY, including, but not limited to, health insurance, cost of living adjustments, holidays, sick, and bereavement leave days Section 6: PERFORMANCE EVALUATION.
A. The City Council shall review and evaluate the performance of CITY MANAGER in closed session at least once annually prior to the Anniversary Date established. Said review and evaluation shall be in accordance with specific criteria developed jointly by the City Council and CITY MANAGER. Said criteria may be revised as the City Council may from time to time determine, in consultation with CITY MANAGER. Further, the City Council shall provide CITY MANAGER with a summary written statement of the finding of the City Council and provide an adequate opportunity for CITY MANAGER to discuss his evaluation with the City Council.
B. Annually, the City Council and CITY MANAGER shall define such goals and performance objectives that they determine necessary for the proper operation of the City of Point Arena and in the attainment of the City Council's policy objectives, and shall further establish a relative priority among those various goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided.
C. In effecting the provisions of this Section, the CITY and CITY MANAGER shall abide by the provisions of applicable law.
Section 7: EQUIPMENT.
CITY shall provide at CITY's cost all reasonable office, computing, and communications equipment (including cellular phone), furniture, and fixtures necessary and convenient to carry out the terms of this Agreement. Such equipment, furniture and fixturesshall be deemed the property of the CITY. CITY agrees to pay CITY MANAGER a technology stipend of $120 per month .
Section 8: AUTOMOBILE.
CITY MANAGER’s duties require that he have the exclusive and unrestricted use at all times during his employment with the City of an automobile. CITY MANAGER will furnish his own personal vehicle for which the CITY shall reimburse City Manager for the actual miles driven on CITY business. The reimbursement rate shall be equivalent to the Standard Internal Revenue Service mileage rate. The CITY MANGER will carry a Comprehensive, Collison Automobile and Unsiured Motorist Policy for no less than $100,000/$300,000/$100,000.
Section 9: VACATION, ADMINISTRATIVE LEAVE, HOLIDAYS, AND SICK LEAVE.
A. CITY MANAGER shall accrue Vacation Leave at a rate of 4.5 hours per pay period. Upon termination of employment, CITY MANAGER shall receive compensation for all earned vacation on record based on the pay level of CITY MANAGER at the time of separation from employment. CITY MANAGER may request at any time, a cash out payment of all vacation time accrued over 96 hours. At no time may CITY MANAGER have a total balance of vacation hours in excess of two times the employee’s annual rate of accrual or 200 hours whichever is less.
When CITY MANAGER reaches the maximum accrual, he or she shall cease accruing vacation leave until the balance falls below the maximum accrual.
B. CITY MANAGER shall receive 32 hours of Administrative Leave annually accrued in total as of October 1st. If the leave is not used by September 30 of each subsequent year, the unused balance will not carry forward. Administrative Leave must be taken as time off and is not compensable upon termination.
C. CITY MANAGER shall utilize and accrue, and have credited and removed from his personal account, holidays(including personal holiday), and sickleave atthe same rate and on the same basis as other employees of the City.
D. CITY MANAGER shallbe giventhe same holidaysasother employees ofthe City.
Section 10: HEALTH BENEFITS, DISABILITY AND LIFE INSURANCE.
A. CITY agrees to provide health benefits, workers compensation, and short-term disability coverage to CITY MANAGER on the same basis as provided to other employees of CITY, and to pay all premiums thereon.
B. CITY agrees to pay the premium for his minor dependent as part of CITY MANAGER’s health benefit.
C. CITY agreesto provide life insurance in the amount of $100,000 to CITY MANAGER with an effective date of January 1, 2021.
Section 11: SIMPLE IRA.
CITY provides a Savings Incentive Match Plan for the Employees (SIMPLE) IRA and will match contributions equal to CITY MANAGER’s salary reduction contributions up to a limit of three percent (3%) of CITY MANAGER’s base wages for the year.
Section 12: DUES AND SUBSCRIPTIONS.
CITY agrees, to the extent it is financially able and with City Council approval, to budget for and to pay for professional dues and subscriptions of CITY MANAGER necessary for his continuation and full participation in national, regional, state, and local associations and
organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the CITY.
Section 13: PROFESSIONAL DEVELOPMENT.
A. CITY hereby agrees, to the extent it is financially able and with City Council approval, to budget for and to pay for travel and subsistence expenses of CITY MANAGER for professional and office travel, meetings, and occasions adequate to continue the professional development of CITY MANAGER and to adequately pursue necessary official functions for CITY, including but not limited to the ICMA Annual Conference, California League of Cities, , and such other national, regional, state, and local governmental groups and committees thereof which CITY MANAGER serves as a member.
B. Upon prior approval by the City Council, CITY also agrees, to the extent it is financially able, to budget for and to pay for travel and subsistence expense of CITY MANAGER for short courses, institutes, and seminars that are necessary for his professional development and for the good of the CITY.
Section 14: INDEMNIFICATION.
CITY shall defend, hold harmless and indemnify CITY MANAGER against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of any alleged act or omission occurring during CITY MANAGER’S employment under this agreement, in accordance with the provision of California Government Code Section 825 and following as amended from time to time. CITY will provide a defense in accordance with California Government Code Section 995 and following. Notwithstanding anything to the contrary in this Agreement, CITY reserves the right to refuse to provide a defense of CITY MANAGER for the reasons set forth in California Government Code Section 995.2 or other applicable provisions of law. City has sole discretion to compromise and settle any such claims, or disputes and whether or not to pay the amount of any settlement judgment rendered thereon.
Section 15: BONDING.
CITY shall bear the full cost of any fidelity or other bonds required of CITY MANAGER under any law or ordinance.
Section 16: OTHER TERMS AND CONDITIONS OF EMPLOYMENT.
A. The City Council, in consultation with CITY MANAGER, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of CITY MANAGER provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City of Point Arena Municipal Code or any other law.
B. All provisions of the City of Point Arena Municipal Code, regulations and rules of the CITY relating to vacation and sick leave, holidays and other benefits and working conditions as they now exist or hereafter may be amended also shall apply to CITY MANAGER as they would to other
employees of CITY, in addition to said benefits enumerated specifically for the benefit of CITY MANAGER except as herein provided.
Section 17 : NOTICES.
Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service certified mail, return receipt requested, addressed as follows:
(1) CITY: City of Point Arena, P.O. Box 67, Point Arena, California 95468 (2) CITY MANAGER: Paul Andersen, P.O. Box 1074, Point Arena, CA 95468 Alternately, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course transmission in the United States Postal Service.
Section 18 : GENERAL PROVISIONS.
A. The terms herein shall constitute the entire Agreement between the parties. Any changes to the agreement must be in writing and agreed upon by both parties.
B. If any funds pursuant to this Agreement are owed City Manager at the time of his death they shall inure to his heirs at law and executors of his estate.
C. This Agreement constitutes the entire agreement between the parties. CITY and CITY MANAGER hereby acknowledge that they have neither made nor accepted any other promise or obligation with respect to the subject matter of this Agreement.
D. This Agreement may be amended only by a writing signed by CITY MANAGER, approved by the City Council at a public meeting and executed on behalf of the CITY.
E. This Agreement became effective commencing February 15, 2021 . The "Anniversary Date" of this Agreement shall be February 15.
F. If any section or any portion thereof, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected, and shall remain in full force and effect.
G. CITY and CITY MANAGER agree that they will, at all times, assist each other in defending any litigation involving CITY, or CITY MANAGER's duties with CITY, and CITY agrees to defend CITY MANAGER against any claim or action against him for an injury arising out of an act or omission occurring within the scope of his employment. The partiesshall each comply with the requirements of Section 825 of the Government Code or its successor, in implementing this paragraph.
H. Should any litigation occur regarding the interpretation of this Agreement, the prevailing party shall, in addition to damages, be entitled to recover reasonable attorney's fees and costs.
I. Any action arising out of a dispute shall have its venue in Mendocino County.
IN WITNESS WHEREOF, the City of Point Arena has caused this Agreement to be signed and executed its behalf by its Mayor, and CITY MANAGER has signed and executed this Agreement, both in duplicate, the day and year first above written.
City of Point Arena:
By: _______________________________________________ Barbara BurkeyScott Ignacio, Mayor CITY MANAGER:
By: ________________________________________________ Paul Andersen Approved as to form:
By: ___________________________________________ Ginevra Chandler, City Attorney