POINT ARENA CITY COUNCIL
AGENDA ITEM SUMMARY
AGENDA ITEM: IX C
MEETING DATE: 4/22/2025
TITLE
City Manager Employment Agreement
RECOMMENDED ACTION
Authorize Mayor Anna Dobbins to Execute the City Manager Employment Agreement with Molly Haviland, effective July 1, 2025.
ANALYSIS
The City of Point of Arena, Municipal Code Section 2.05 “City Manager” establishes the Office of the City Manager and describes the City Manager’s duties. The Interim City Manager Peggy Ducey is leaving the position on June 30, 2025. Since November, the full City Council has explored various options for hiring a new City Manager. They weighed a variety of factors, including:
• City Managers hired from outside the Point Arena community rarely stay longer than a year, which creates an ongoing revolving door that prevents stability within the organization;
• Experienced City Managers hired from outside Mendocino County are accustomed to a much higher salary than the City can provide; • Staff hired from outside Point Arena often have difficulty managing and adapting to the unique cultural and financial challenges in the community.
Based on these and other factors, the City Council decided to recruit within the City organization rather than conducting outside recruitment. After interviewing potential candidates, the Council determined, contingent on an acceptable employment agreement reviewed by the City Attorney, that Molly Haviland would be their choice as the next City Manager of Point Arena. Paul Andersen has agreed to remain on staff as the Assistant City Manager/City Clerk and Interim City Manager Peggy Ducey has agreed to remain as a part-time Executive Consultant to advise and continue to train Molly in the duties and responsibilities of the City Manager. With this organizational structure, the City will be able to rebuild a financially stable and highly efficient organization in the years to come.
The attached Agreement provides for the conditions of employment and employment relationship of the City Manager.
FISCAL IMPACT
None
ATTACHMENTS
City Manager At-Will Employment Agreement for Professional Services
CITY MANAGER SIGNATURE
_________________________________
Peggy Ducey, Interim City Manager
CITY MANAGER AT-WILL EMPLOYMENT AGREEMENT
FOR PROFESSIONAL SERVICES
THIS CITY MANAGER AT-WILL EMPLOYMENT AGREEMENT FOR PROFESSIONAL SERVICES made and entered into July 1, 2025 by and between the CITY OF POINT ARENA, ("CITY/City Council"), and Molly Haviland, 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 of; and WHEREAS, CITY desiresto engagethe services of Molly Haviland 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 subjectto 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 Molly Haviland effective July 1, 2025 as the City Manager of CITY to perform the functions and duties of City Manager asset forth in the City of Point Arena Municipal Code, resolutions, ordinances, and/or regulations of the City, and to perform 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 July 1, 2025, and terminate on July 1, 2028, unless terminated earlier in accordance with this Agreement.
B. Nothing in this Agreementshall prevent, limit or otherwise interfere with the right ofthe 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 her 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 determination of a permanent disability and inability to perform with reasonable accommodation of CITY MANAGER to perform the essential duties of her position; or
4. Upon the effective date of retirement from CITY'S service; or
5. Upon the 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 the 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 four (4) 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 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 Workplace " policies.
E. Should CITY MANAGER be terminated or suspended for cause, CITY MANAGER shall have a written notice of the cause of her removal or suspension from duty, and may be heard on the cause of her 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 her 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 her 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 her 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 her 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 $93,600. 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. In the event of severe financial constraints, CITY may decrease work week hours for a determined period of time, at a rate of $45/hour.
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, July 1.
Except as hereinafter provided, the 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 the CITY MANAGER with a summary written statement of the findings of the City Council and provide an adequate opportunity for the CITY MANAGER to discuss her 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 fixtures shall be deemed the property of the CITY. The CITY agrees to reimburse CITY MANAGER up to $1,500 as a technology stipend.
Section 8: AUTOMOBILE.
The CITY MANAGER’s duties require that he have the exclusive and unrestricted use at all times during her employment with the City of an automobile. The CITY MANAGER will furnish her own personal vehicle for which the CITY shall reimburse the 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 MANAGER will carry a Comprehensive, Collison Automobile and Uninsured 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, the 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 July 1. If the leave is not used by June 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 her 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.
B. CITY agrees to pay the premium for her spouse as part of CITY MANAGER’s health benefit.
C. CITY agrees to provide life insurance in the amount of $100,000 to CITY MANAGER with an effective date of July 1, 2025.
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 for CITY MANAGER necessary for her continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for her 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 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 her 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 asthey 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: Molly Haviland, P.O. Box 394, Point Arena, CA 95468 Alternately, noticesrequired 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 her death they shall inure to her heirs at law and executors of her 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 July 1, 2025. The "Anniversary Date" of this Agreement shall be July 1.
F. If any section or any portion 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 her for an injury arising out of an act or omission occurring within the scope of her employment. The parties shall 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: _______________________________________________ Anna Dobbins, Mayor CITY MANAGER:
By: ________________________________________________ Molly Haviland Approved as to form:
By: ___________________________________________ Baron Bettenhausen, City Attorney