24438.00000\42409265.1
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EMPLOYMENT AGREEMENT
CITY MANAGER
THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of July 1, 2024 (the “Effective Date”), between the City of San Jacinto, a municipal organization organized under the laws of the State of California (“City”) and Robert A. Johnson (“City Manager” or “Employee”). City and City Manager are sometimes individually referred to as “Party” and collectively as “Parties.”
RECITALS
A. City and Employee entered into an Employment Agreement dated July 1, 2019, where Employee agreed to serve as City Manager of City, which was amended four times and terminates June 30, 2025 (collectively, the “Original Agreement”).
B. City and Employee now desire to enter into this Agreement, which shall terminate the Original Agreement on the Effective Date of this Agreement and supersede the Original Agreement.
I. TERM
The City hereby employs the Employee as City Manager commencing on July 1, 2024, and continuing through June 30, 2028 (“Term”). Upon expiration of this Term, this Agreement shall automatically renew for a period of one (1) year unless written notice expressing one Party’s intention to terminate this Agreement is provided to the other Party by June 30, 2027.
Following this initial automatic renewal period, this Agreement shall be automatically renewed for additional one-year periods on an ongoing basis unless written notice expressing one Party’s intention to terminate this Agreement is provided to the other Party no less than one year prior to the expiration of whichever one year period is in effect at that time.
II. SALARY
Employee shall be entitled to no salary or compensation (other than the fringe benefits set forth in Section IX below) except as stated in this Section II as follows:
Employee’s base salary shall be $25,255.50 per month, effective July 1, 2024. Employee shall be compensated on a pro rata basis of his base salary for the first and last months of his employment. Employee shall be paid pursuant to the procedures regularly established and as they may be amended by the City in its sole discretion.
On about July 1, 2025, and on each anniversary thereafter, the City Council shall consider, and when warranted award the Employee, an annual salary increase. Such increase shall be awarded at the City Council’s discretion, based on the City Council’s most recent personnel evaluation of Employee. Any salary increase shall be conditioned on the City Council’s most recent personnel evaluation resulting in a finding that Employee has satisfactorily DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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performed all job duties. Each annual salary increase may be up to four (4) percent of Employee’s base salary at the time of such evaluation.
Employee shall receive a yearly Cost of Living Adjustment (“COLA”) of five (5) percent each City fiscal year.
Annual adjustments to salary shall be effective as of July 1 of the respective year of the adjustment. The annual adjustment shall not be implemented unless set forth in a written amendment to this Agreement, signed by both parties, that the City Council duly approves in an open session.
III. DUTIES
Employee shall perform the duties of the City Manager as prescribed by Section 2.12.060 of the San Jacinto Municipal Code. In addition to the powers and duties set forth in the Municipal Code, the City Manager shall have such powers and duties which are delegated to him by the City Council. The City Manager shall execute all powers and duties in accordance with the policies adopted by the City Council and the State of California Government Code.
IV. CITY MANAGER AND COUNCIL RESPONSIBILITIES
The City Manager shall be the Chief Executive Officer of the City. As such, the City Manager shall have the responsibility for implementing City Council policy, whereas the City Council shall retain the responsibility for formulating and adopting said policy.
The City Council and its members shall deal with the administrative services of the City only through the Employee, except for the purpose of inquiry. Neither the City Council nor any member thereof shall give orders to any subordinate of the Employee. Employee shall take direction only from a majority of the City Council as expressed at a duly noticed Brown Act meeting. Employee shall not be required to take direction from individual City Councilmembers or less than a majority of Councilmembers.
V. OTHER DUTIES
The City Manager (or his designee) shall: (1) review all policies proposed to the City Council and make appropriate recommendations to the Council; (2) periodically evaluate employees as provided for by California law and City policy; (3) advise the Council of possible sources of funds that might be available to implement present or contemplated City programs or services; (4) maintain and improve his professional competence by available means, including subscription to and reading of appropriate periodicals, and joining and participating in appropriate professional associations and their activities; (5) establish and maintain an appropriate community relations program; and (6) serve as liaison between the Council and as its designated representative with respect to all employer-employee matters, and make recommendations to the Council concerning those matters. Notwithstanding that a designee of the City Manager may perform said duties, the City Manager shall be the person ultimately DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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responsible to the Council for the proper implementation of the duties and responsibilities described in this Agreement.
VI. OUTSIDE PROFESSIONAL ACTIVITIES
The Employee may undertake outside professional activities for compensation, including consulting, teaching, training, speaking and writing provided they do not interfere with Employee's normal duties and are done only during non-business hours, personal leave or holiday time of Employee and are not done with any existing vendors or contractors of the City.
Under no circumstances shall such outside activities create a conflict of interest with the duties of the City Manager and the interests of the City.
VII. EVALUATION
Employee shall meet with the City Council in closed session annually, beginning on or about July 1, 2025, to review the Employee's performance and to discuss the City Council's evaluation of said performance. It shall be Employee’s obligation to remind City Council of the need to conduct this annual performance evaluation. Additional closed sessions may be scheduled at the direction of the City Council to discuss the Employee’s performance as deemed necessary by the City Council.
VIII. TERMINATION
The Employee shall serve at the will and pleasure of the City Council and may be removed from office (terminated) at any time for any reason or no reason upon a majority vote of the City Council. Nothing in this Agreement shall prevent the City Council from terminating this Agreement and the services of the Employee at its sole discretion.
A. Termination without Cause
(i) Termination with Advance Notice. In the event Employee is terminated by the City without cause during the term of this Agreement, during which time Employee is willing and able to perform his duties under this Agreement, the City shall provide Employee with sixty (60) days’ written notice prior to the effective date of termination. Upon termination, City shall provide Employee with: (1) twelve (12) months’ salary; and (2) continuation of all existing health benefits currently offered the Employee, for the lesser of twelve (12) months or until Employee finds other employment, whichever occurs first. The salary and benefits shall be referred to collectively as “Severance Pay.” (ii) Termination without Advance Notice. In lieu of termination with notice as set forth in Subsection (i) above, the City may immediately terminate Employee from his employment without advance notice, in which case the Severance Pay shall be (1) twelve (12) months’ salary; and (2) continuation of all existing health benefits currently offered the Employee, for the lesser of twelve (12) months or until Employee finds other employment, whichever occurs first.
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(iii) In exchange for Severance Pay under either Subsections (i) or (ii) above, the Employee hereby expressly waives any right he may have under any applicable law, City policy, or otherwise to appeal or grieve his termination and the terms of this Agreement.
B. Termination for Cause
In the event that it is determined that the Employee has been terminated for cause, the Employee shall not be entitled to any Severance Pay. Termination shall be “for cause” if Employee: (i) acts in bad faith and to the detriment of the City; (ii) refuses or fails to act in accordance with any specific direction or order of the City Council; (iii) exhibits misconduct or dishonesty in regard to his employment or v) is determined to have mislead the City Council or engaged in any dishonesty during the application process or his interview with the City Council prior to his appointment as City Manager; (v) engages or is found to have engaged in any misconduct outside of his employment with the City that materially impacts the City’s reputation; or (vi) is convicted of either a misdemeanor that materially impacts the City’s reputation or Employee’s ability to perform his duties or felony crime. The removal of the Employee from office pursuant to this paragraph shall be only on a majority vote of the whole City Council. In case of his intended removal, the Employee shall be furnished with a written notice stating the City Council's intention to remove him and the reasons therefore, at least thirty (30) days before the effective date of removal. Within seven (7) days after the furnishing of the Employee of such notice, he may, by writing, addressed to the City Council and delivered to the City Clerk, request a hearing before the City Council. Thereupon, the Mayor shall fix a time for such public hearing. Such hearing shall be held at the usual meeting place of the City Council, before the expiration of the aforesaid thirty (30) day period and the Employee shall attend and be heard. After furnishing the Employee with written notice of his intended removal from office, the City Council may suspend him from further duty, but his compensation shall continue until his removal by motion of the City Council, duly made and passed following the close of the public hearing. This Section VIII of this Agreement is mutually agreed to by the City Council and Employee in lieu of Municipal Code sections 2.12.080(B), pursuant to San Jacinto Municipal Code section 2.12.100.
C. Resignation
If Employee desires to resign from his position, he will provide the City Council with at least sixty (60) calendar days' notice, in writing. In the event that the Employee resigns from his employment with the City, the Employee shall not be entitled to any Severance Pay.
Notwithstanding the foregoing, if Employee desires to resign from his position after July 1, 2025, Employee may request to stay employed with the City for a six (6) month period and help the City Council transition to a new city manager. In that case, the City will provide Employee with: (1) six (6) months’ salary; and (2) continuation of all existing health benefits currently offered the Employee. In exchange, the City Council may request City Manager to perform the following tasks: (1) choose an interim city manager to run the day to day operations of the City; and/or (2) run the city manager recruitment for a new, permanent city manager. During this six (6) month period, Employee will not be in the office at City Hall, but will be available on an as needed basis for consultation with the interim city manager, City DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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Council, and/or city attorney, either at City Hall, by video, or at another location. If appropriate, the City Council may allow and pay for Employee to attend annual conferences such as Cal Cities, SCAG, ICSC, etc.
D. Abuse of Office
Pursuant to Government Code Sections 53243, 53243.1 and 53243.2, if City Manager is convicted of a crime involving an abuse of his office or position, all of the following shall apply:
(1) if City Manager is provided with administrative leave pay pending an investigation, City Manager shall be required to fully reimburse City such amounts paid; (2) if City pays for the criminal legal defense of City Manager (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), City Manager shall be required to fully reimburse City such amounts paid; and (3) if this Agreement is terminated, any Severance Pay and Severance Benefits related to the termination that City Manager may receive from City shall be fully reimbursed to City or void if not yet paid to City Manager. For purposes of this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority; or (2) a crime against public justice, including, but not limited to, a crime described in Title 7 (commencing with Section 92) of Part 1 of the Penal Code. In addition to the salary and compensation in Section II, above, Employee shall be entitled only to the following fringe benefits:
IX. FRINGE BENEFITS
In addition to the salary and compensation in Section II, above, Employee shall be entitled only to the following fringe benefits:
A. Time Off
Employee shall be provided with paid time off as follows:
(i) Vacation time to be accrued on a pro rata basis each pay period at the rate of 160 hours per year.
(ii) Sick Leave accruing on a pro rata basis each pay period at a rate of 96 hours per year. Sick leave may accrue up to a maximum of 960 hours. Upon completion of two years of service with the City, Employee may sell back to the City up to 96 hours of sick leave at the end of each calendar year, provided that after selling back any sick leave, Employee still retains a balance of 100 hours.
(iii) Management leave accruing on a pro rata basis each pay period at a rate of 96 hours per year, which is in addition to sick leave and vacation time. Management leave time carries over for twelve (12) months and if not used during that period or the subsequent year, it expires. It may not be cashed out upon separation from employment. (iv) Paid holidays as follows: New Year's Day, President's Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Veterans' Day, Thanksgiving Day, DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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Thanksgiving Friday, Christmas Eve, Christmas Day, and for each six month period or portion thereof one (1) floating holiday.
B. Retirement
Employee shall be enrolled in the City’s retirement program through CalPERS consistent with the City’s existing contract with CalPERS for such benefits and applicable law.
In this regard, it is understood that Employee will be a “classic” CalPERS member under Tier II of the City’s contract with CalPERS, which provides for a retirement formula of 2% at 55.
If Employee elects to participate in City’s deferred compensation plan, City will match the Employee’s annual contribution effective July 1, 2024.
C. Health/Dental/Vision Insurance
Employee shall be eligible to enroll in the City’s health, dental, and vision plans to the same extent as and under the same terms of other management employees.
D. Cafeteria Benefit (Non-Health)
Employee shall be entitled to participate in the non-health cafeteria benefit to the extent and under the same rules that said benefit is also provided to management employees.
E. Life Insurance
The City shall provide employee with life insurance to the same extent as and under the same terms of other management employees.
F. Professional Membership
Upon approval by the City Council, the City will pay dues for Employee’s membership in professional associations related to his position as City Manager or that are in the City’s interests.
G. Automobile Allowance
City shall provide Employee with an automobile allowance of six hundred dollars ($600) per month, or portion thereof.
H. Cellular Phone Allowance
City shall provide Employee with the use of a cellular phone or a cellular phone allowance of one hundred fifty dollars ($150) per month, or portion thereof. The cellular phone shall not be used by persons other than the Employee. The Employee may use the cellular phone for incidental personal purposes, consistent with the City's adopted electronic device policy or DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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other applicable policies. The City shall also provide for maintenance, repair and replacement costs of said cellular phone, in accordance with City policy.
X. GENERAL PROVISIONS
A. Any modifications of this Agreement will be effective only if made in writing and signed by both the Employee and the City.
B. The salary and compensation set forth in Section II and the fringe benefits set forth in Section IX shall be the exclusive consideration provided to Employee under this Agreement. Employee shall not be entitled to any additional compensation, salary increases, or fringe benefits provided to any other city employees or bargaining groups unless this Agreement is duly amended to incorporate such provision.
C. All compensation, benefits and comparable payments to be provided to the Employee under this Agreement shall be less withholdings required by law. The compensation, benefits and comparable payments set forth in this Agreement shall be provided subject to any rules, regulations, agreements, or policies established for the City’s management group, as of the date of this Agreement.
D. This Agreement supersedes any and all other agreements, either oral or written, between the Parties hereto with respect to the employment of the Employee by the City and contains all of the covenants and agreements between the Parties with respect to the employment of the Employee by the City.
E. Each Party agrees and acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not embodied herein and that any agreement, statement, or promise not contained in this Agreement shall not be valid or binding on either Party.
F. If any provision of this Agreement is held by a Court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.
DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 24438.00000\42409265.1
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CITY OF SAN JACINTO
By: ___________________________
Phil Ayala, Mayor
Dated: ___________________________
Attest: ___________________________
Julia Espinoza, City Clerk
Approved as to Form:
___________________________
City Attorney, Best Best & Krieger
ROBERT A. JOHNSON
By:
Robert A. Johnson
Dated: ___________________________
DocuSign Envelope ID: AB8EC064-CFCB-4EA0-8FB7-D50EEB3D677E 7/3/2024
7/8/2024