1 EMPLOYMENT AGREEMENT
FOR INTERIM CITY MANAGER
This Employment Agreement (“Agreement”) is entered into by and between the CITY OF RICHMOND, a California municipal corporation (“City”), MARK SCOTT effective October 3, 2026.
RECITALS
A. The City Manager position for the City of Richmond (“City Manager Position”) will become vacant effective October 3, 2026.
B. The City Council has determined that the City Manager Position requires specialized executive and administrative skills and that an experienced interim City Manager is necessary to provide continuity of municipal operations, leadership to City staff, and continued implementation of the City Council’s policies and priorities during the recruitment and selection of a permanent City Manager.
C. The City Council has authorized and/or initiated an open recruitment process for a permanent City Manager and intends to continue that recruitment process while Employee serves as Interim City Manager.
D. Employee is a retired member of the California Public Employees’ Retirement System (“CalPERS”) and represents that Employee is eligible to serve as a retired annuitant under applicable provisions of the California Public Employees’ Retirement Law, including Government Code section 21221(h).
E. Government Code section 21221(h) permits the governing body of a contracting agency to make an interim appointment of a retired person to a vacant position during recruitment for a permanent appointment where the position requires specialized skills, subject to the limitations and requirements established by law.
F. The City Council has determined that Employee possesses the specialized skills, executive experience, institutional knowledge, and governmental management experience necessary to perform the duties of Interim City Manager.
G. The City Council desires to appoint Employee as Interim City Manager pursuant to Government Code section 21221(h), and Employee desires to accept that appointment subject to the terms and conditions of this Agreement.
H. The parties intend that Employee's service under this Agreement constitute a temporary, limited-duration retired annuitant appointment and not reinstatement from retirement.
NOW, THEREFORE, the parties agree as follows:
2 1. APPOINTMENT
1.1 Appointment. The City hereby appoints Employee to serve as Interim City Manager, effective October 3, 2026, subject to approval by the City Council and all applicable requirements of California law.
1.2 Authority. Employee shall serve as the City's Interim City Manager and shall exercise the powers and perform the duties of the City Manager provided by the City's Charter, municipal code, ordinances, resolutions, applicable state and federal law, and policies adopted by the City Council.
1.3 At-Will Appointment. Employee shall serve at the pleasure of the City Council. Nothing in this Agreement creates a property interest in continued employment or guarantees employment for any particular period.
2. LIMITED-DURATION RETIRED ANNUITANT APPOINTMENT
2.1 Government Code Section 21221(h). The parties expressly acknowledge that this appointment is made pursuant to Government Code section 21221(h).
2.2 Vacant Position and Recruitment. The City Council has determined that the City Manager Position is vacant and that the City is undertaking recruitment for a permanent City Manager.
2.3 Single Appointment. Employee acknowledges that Government Code section 21221(h) provides that a retired person may only be appointed once to the vacant position under that subdivision.
2.4 No Permanent Appointment. Employee shall not be considered a permanent City Manager by virtue of this Agreement. The City retains complete discretion to select a permanent City Manager through its recruitment and selection process.
2.5 No Unemployment Insurance. By accepting this appointment and executing this Agreement, Employee acknowledges and certifies that Employee has not received unemployment insurance benefits arising out of previous annuitant employment in the past 12 months.
3. TERM
3.1 Commencement. Employee's appointment shall commence on October 3, 2026.
3.2 Expiration. Unless earlier terminated pursuant to this Agreement, the appointment shall continue until the earlier of:
(a) the appointment and commencement of employment of a permanent City Manager; (b) termination by the City Council;
3 (c) resignation by Employee; or
(d) the date on which Employee is no longer legally eligible to serve under Government Code section 21221(h) or other applicable law, April 3, 2027.
3.3 No Guaranteed Term. The parties acknowledge that the anticipated duration of the appointment is dependent upon the City's recruitment and selection process and applicable CalPERS restrictions.
4. HOURS OF SERVICE
4.1 Maximum Hours. Employee shall not work more than 960 hours during any fiscal year, including hours worked for any other CalPERS-covered employer to the extent required by applicable law.
4.2 Tracking of Hours. Employee shall accurately record all hours worked for the City.
Employee shall promptly notify the City if Employee performs services for another CalPERScovered employer that may affect the applicable annual limitation.
4.3 No Additional Hours Without Legal Authorization. Employee shall not work hours in excess of the applicable statutory limitation unless expressly authorized by law and approved by the City Council in a manner consistent with CalPERS requirements.
5. COMPENSATION
5.1 Hourly Rate. Employee shall be compensated at the rate of $182.74 per hour.
5.2 Salary Schedule Compliance. The hourly rate shall not exceed the maximum monthly base salary paid to employees performing comparable duties, as listed on the City's publicly available salary schedule, divided by 173.333, as required by Government Code section 21221(h).
5.3 No Additional Compensation. Consistent with Government Code section 21221(h), Employee shall not receive benefits, incentives, compensation in lieu of benefits, or any other form of compensation in addition to the permitted hourly rate.
5.4 Payroll. Employee shall be paid through the City's regular payroll system, subject to all legally required payroll deductions and withholdings.
6. CALPERS STATUS
6.1 Retired Annuitant Status. Employee shall remain a retired annuitant and shall not accrue additional service credit or otherwise become reinstated from retirement as a result of this appointment, provided the appointment remains compliant with applicable law.
6.2 Employee Responsibility. Employee shall provide the City with information reasonably necessary to establish and maintain compliance with CalPERS requirements. 4 6.3 Change in Eligibility. Employee shall immediately notify the City of any change in circumstances that could affect Employee's eligibility to serve as a retired annuitant.
7. BENEFITS
Employee shall not be entitled to the City's regular employee benefits, including, without limitation, vacation accrual, sick leave accrual, health insurance, dental insurance, vision insurance, life insurance, disability insurance, deferred compensation contributions, vehicle allowance, or other employee benefits, except to the extent a particular benefit is legally required and consistent with Employee's status as a retired annuitant.
8. DUTIES AND EXPECTATIONS
Employee shall:
(a) manage and administer the City's day-to-day municipal operations; (b) implement policies and directives adopted by the City Council; (c) supervise the City's department heads and executive management team; (d) prepare and administer the City's budget and financial operations consistent with Council direction;
(e) maintain effective communication with the Mayor and City Council; (f) attend City Council meetings and other meetings reasonably necessary to perform the duties of Interim City Manager;
(g) work collaboratively with the City Attorney, department heads, employees, labor representatives, and community stakeholders;
(h) provide continuity of leadership during the recruitment and transition to a permanent City Manager; and
(i) perform all other duties customarily assigned to the City Manager under the City's Charter, ordinances, resolutions, and applicable law.
9. CITY COUNCIL RELATIONSHIP
9.1 Employee shall report directly to the City Council.
9.2 Employee shall implement the lawful direction of the City Council and shall maintain appropriate communication with the Mayor and individual Councilmembers consistent with the City's council-manager form of government and applicable law.
9.3 Nothing in this Agreement authorizes an individual Councilmember to direct Employee to take action inconsistent with duly adopted City Council policy or applicable law. 5 10. CONFIDENTIALITY AND CITY PROPERTY
Employee shall comply with all applicable City policies concerning confidentiality, public records, information security, electronic communications, conflicts of interest, ethics, and use of City property and systems. These obligations shall survive expiration or termination of this Agreement. Upon expiration or termination of the appointment, Employee shall immediately return all City property, equipment, records, documents, keys, identification cards, access devices, electronic devices, files, passwords, and other materials in Employee's possession or control and shall cooperate with the City in terminating or transferring access to City systems and accounts.
Employee shall conduct City business using City-provided systems and accounts to the extent practicable and shall comply with all applicable records-retention, public-records, electronic communications, and information-governance requirements. Employee shall not intentionally use personal accounts or devices to circumvent City records-retention or public-records requirements.
Employee shall not use confidential, nonpublic, privileged, or otherwise protected City information for Employee's personal benefit or for the benefit of any third party, either during or after the Term.
11. CONFLICTS OF INTEREST AND ETHICS
Employee shall comply with all applicable federal, state, and local conflict-of-interest and governmental ethics requirements, including applicable provisions of the Political Reform Act, Government Code section 1090, the City's conflict-of-interest code, and applicable AB 1234 requirements.
Employee shall complete all legally required ethics and conflict-of-interest disclosures and training applicable to the position.
12. OUTSIDE EMPLOYMENT AND ACTIVITES
During the Term, Employee shall not engage in outside employment, consulting, business activities, or other professional activities that interfere with Employee's duties to the City, create an actual or potential conflict of interest, involve representation of another person or entity before the City, or reasonably create the appearance of a conflict. Employee shall disclose to the City Attorney any such activity before engaging in it.
13. INDEMNIFICATION
To the extent mandated by the California Government Code, the City shall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring in the performance of Employee’s services under this Agreement. This section shall not apply to any intentional tort or crime 6 committed by Employee, to any action outside the course and scope of Employee’s employment, or any other intentional or malicious conduct or gross negligence of Employee.
14. RESIGNATION
Employee may resign by providing the City Council with written notice. Unless otherwise agreed by the City Council, Employee shall provide at least fourteen (14) calendar days' notice.
15. TERMINATION
The City Council may terminate Employee's appointment at any time, with or without cause, consistent with Employee's at-will status and applicable law.
Upon termination, Employee shall be compensated only for authorized hours actually worked through the effective date of termination and shall have no entitlement to severance or other compensation, except as expressly required by law.
16. PERMANENT CITY MANAGER RECRUITMENT
Employee acknowledges that the City intends to recruit and appoint a permanent City Manager.
Employee shall cooperate reasonably with the recruitment and transition process, including providing information concerning City operations and assisting with an orderly transition to the permanent City Manager. Employee shall maintain current and reasonably complete records concerning significant City operations, pending matters, major projects, personnel matters, litigation, contracts, financial matters, Council directives, and other matters necessary for an orderly transition. Upon request of the City Council, Employee shall prepare or participate in preparing transition memoranda and shall brief the incoming permanent City Manager concerning pending and significant matters. Employee shall not participate in the City's final selection of the permanent City Manager except as specifically authorized by the City Council.
17. COMPLIANCE WITH LAW
This Agreement shall be interpreted and implemented consistent with Government Code sections 21221(h), 7522.56, and all other applicable provisions of the California Public Employees' Retirement Law.
If any provision of this Agreement conflicts with a mandatory provision of applicable law or CalPERS requirements, the applicable law shall control.
18. NO CONTRACTUAL RIGHT TO REINSTATEMENT
Nothing in this Agreement shall be construed as an agreement or promise that Employee will be appointed as the permanent City Manager or otherwise reinstated to active membership in CalPERS.
19. ENTIRE AGREEMENT
7 This Agreement constitutes the entire agreement between the parties concerning Employee's appointment as Interim City Manager and supersedes prior oral or written understandings concerning the subject matter of this Agreement. Any amendment must be in writing and approved by the City Council to the extent required by law.
20. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of California.
21. AUTHORITY
The parties represent that they have authority to enter into this Agreement and that the Agreement has been approved in accordance with applicable City law.
22. INDEPENDENT LEGAL ADVICE
The City and Employee represent and warrant to each other that each had the opportunity to receive legal advice from independent and separate legal counsel with respect to the legal effect of this Agreement, that each has carefully reviewed this entire Agreement, that each and every term thereof is understood, and that the terms of this Agreement are contractual and not a mere recital. This Agreement shall not be construed against the Party or its representatives who drafted it or who drafted any portion thereof.
CITY OF RICHMOND
By: ______________________________
Mayor
Date: ____________________________
Approved as to Form:
By: ______________________________
City Attorney
Date: ____________________________
EMPLOYEE
_________________________________
Mark Scott
Date: ____________________________