AT-WILL EMPLOYMENT AGREEMENT BETWEEN
CITY OF STOCKTON AND STEVE COLANGELO AS INTERIM CITY MANAGER (AT-WILL AND NON-CLASSIFIED POSITION)
This At-Will Employment Agreement is made and entered into on August __ 2025, by and between the City of Stockton, a California charter city and municipal corporation ("CITY") and Steve Colangelo, an individual, ("EMPLOYEE") on the following terms and conditions set forth below (“AGREEMENT”). CITY and EMPLOYEE shall be collectively referred to as “PARTIES” or individually referred to as “PARTY.”
RECITALS
WHEREAS, the CITY is in the process of recruiting a full-time replacement for its City Manager, and the CITY requires the services of an Interim City Manager; and WHEREAS, Employee represents that he has the necessary and specialized experience, skills, and expertise required to serve as the City’s Interim City Manager; and WHEREAS, the City Council of the City (“City Council”) desires to appoint Employee to the position of Interim City Manager subject to the terms and conditions of the AGREEMENT; and NOW THEREFORE, it is hereby agreed by CITY and EMPLOYEE as follows:
AGREEMENT
INTERIM CITY EMPLOYMENT. The CITY hereby appoints Employee as its Interim City Manager, effective August ___, 2025 (“Effective Date”), and Employee hereby accepts such employment.
AT-WILL AGREEMENT. EMPLOYEE is at-will and serves at the pleasure of City Council and can be terminated at any time with or without cause. Employee’s at-will status means there is no guarantee as to length of time for employment. No CITY representative has authority to agree to anything contrary to employee at-will status unless it is specific, in writing, and signed by City Council.
TERM. This Agreement shall commence on the Effective Date. This AGREEMENT shall expire as of the first of the following to occur: (1) A permanent City Manager assumes that office; (2) by the end of the day November 4, 2025; or (3) upon termination of the Agreement by either EMPLOYEE or CITY as provided in Section 7 [SEPARATION] of this Agreement. //
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INTERIM CITY MANAGER’S COMMITMENTS.
DUTIES AND RESPONSIBILITIES.
EMPLOYEE shall perform all of the functions and duties of the City Manager as set forth in: the City Manager class specification attached hereto and incorporated herein by reference as Attachment “A,” which may be amended from time to time; the CITY’s Charter, Municipal Code, rules, policies, procedures, regulations, ordinances and resolutions, which may also be subsequently amended from time to time. EMPLOYEE shall also perform other legally permissible and/or customary and appropriate duties and functions of the City Manager as the CITY COUNCIL may assign from time to time, together with such additional services consistent with the laws of the United States and State of California.
Employee shall perform his duties to the best of his ability in accordance with the highest professional and ethical standards of the profession. Employee shall devote his attention, skill, ability, and productive time to the performance of Employee’s duties and responsibilities and CITY’s business.
The CITY’s personnel rules, policies, procedures, regulations, ordinances and resolutions shall apply to EMPLOYEE in the same manner as applied to other non-classified at-will Department Heads. As feasible, their provisions shall be read to apply in tandem with the terms of this AGREEMENT. However, to the extent an express provision of this AGREEMENT conflicts, this AGREEMENT shall govern.
Conflict of Interest.
Employee shall not engage in any business or transaction or shall have a financial or other personal interest or association, direct or indirect, which is in conflict with the proper discharge of official duties or would tend to impair independence of judgment or action in the performance of official duties. Personal as distinguished from financial interest includes an interest arising from blood or marriage relationships or close business, personal, or political associations.
Employee shall also comply with the conflict-of-interest provisions under California law and any conflict-of-interest code applicable to Employee’s City employment. Employee is responsible for submitting to Human Resources the appropriate Conflict of Interest Statements prior to performing any services under this AGREEMENT, and thereafter as required by law.
HOURS OF WORK.
Employee is expected to engage in those hours of work that are necessary to perform the duties and fulfill the obligations of the Interim City Manager position, which fall both within and outside of customary and normal business hours. The position of Interim City Manager shall be deemed an exempt position under state and federal wage and hour laws. Employee’s compensation (whether salary or benefits or other allowances) is not based on hours worked and Employee shall not be entitled to any compensation for overtime.
Employee may engage in teaching, consulting, speaking, or perform other non-City connected activities for which he is compensated only with the express prior consent of the City Council.
Disability or Inability to Perform. If, as the result of long-term or permanent disability, sickness, accident, injury, mental incapacity or other personal health-related reason, the City determines that Employee is unable to perform his essential duties, with or without reasonable accommodation, after exhausting all available and authorized use of accrued sick leave, vacation, or other authorized paid/unpaid leave available under applicable City policies or state or federal law, the City Council may terminate Employee. If the City Council does elect to terminate Employee due to incapacity, Employee shall be terminated without cause, as provided in Section 7.c [TERMINATION WITHOUT CAUSE] below. In exercising this option, the City will comply with its obligations under applicable state and federal disability laws.
BASE SALARY.
On the Effective Date of this AGREEMENT, CITY shall compensate EMPLOYEE for his services rendered pursuant to this AGREEMENT a gross monthly salary of $20,833.33 payable in installments at the same time and in accordance with the CITY’s payroll procedures for other CITY employees, and subject to all applicable payroll taxes and withholdings. Effective the first day of the pay period that includes July 1, 2025, Employee shall receive a three percent (3%) increase to his base salary.
At the discretion of the City Council, this Agreement may be amended to incorporate any salary and/or benefit adjustments granted, provided, or required by the City Council. The City shall not at any time during the term of this Agreement reduce the base salary, compensation, or other economic benefits of Employee, unless as part of a general City management reduction, and then in no greater percentage than the average reduction of all City Department Heads whose salaries, compensation or economic benefits are reduced.
BENEFITS.
Economic Benefits. Except as set forth in this AGREEMENT, CITY agrees to provide EMPLOYEE with the economic benefits provided under the “City of Stockton Unrepresented Management/Confidential and Law Employees’ Compensation Plan” for employees designated under the Management Plan “MA” and/or “Department Heads,” dated July 1, 2023, and as may be amended by the CITY COUNCIL from time to time, as set forth in Section 5.b, above.
No Retirement Benefits. Pursuant to Government Code § 20305 and related California Public Employees’ Retirement System (CalPERS) regulations and policy statements, EMPLOYEE shall not receive any retirement benefits CITY commonly provides to its employees including those pension benefits in “City of Stockton Unrepresented Management/Confidential and Law Employees’ Compensation Plan” plan, unless required by law. CalPERS service credit will not be accrued, and no additional retirement rights or benefits will be granted to EMPLOYEE unless required by law.
City VEHICLE. EMPLOYEE shall be assigned a city vehicle for use during the term of employment under this AGREEMENT. Use of the city vehicle shall be subject to and consistent with the rules under Administrative Directive MAN-16 which govern use of city vehicles for other city employees.
Professional Development. The CITY agrees to pay for reasonable sums of professional dues, subscriptions, travel and subsistence expenses of EMPLOYEE for professional participation in appropriate organizations such as, but not limited to, the League of California Cities, subject to prior review and approval by CITY. Notwithstanding the foregoing, the City Council shall have discretion to establish appropriate amounts, in the annual City budget or otherwise, of official and professional development expenses and travel costs.
SEPARATION.
Resignation. Employee may resign from the position of Interim City Manager at any time and agrees to provide the City Council with a minimum of 30 days advanced written notice of the effective date of EMPLOYEE’s resignation, unless the PARTIES otherwise agree in writing. If EMPLOYEE separates from CITY employment, EMPLOYEE shall be entitled to only the compensation accrued up to the date of termination, and such other termination benefits and payments as may be required by law or applicable provisions of the “City of Stockton Unrepresented Management/Confidential and Law Employees’ Compensation Plan” for employees designated under the Management Plan “MA” and/or “Department Heads. This Agreement shall terminate upon the effective date of EMPLOYEE’s resignation.
Removal.
Employee is an at-will employee serving at the pleasure of the City Council. Employee has no constitutionally protected property or other interest in his employment as Interim City Manager. Nothing in this AGREEMENT shall be construed to create a property interest for EMPLOYEE in the position of Interim City Manager.
The City Council may terminate Employee at any time, with or without cause, by a majority vote of its members. This Agreement shall terminate upon the effective date of Employee’s termination.
Termination Without Cause. If the CITY COUNCIL terminates EMPLOYEE as the Interim City Manager without cause, (cause is defined in Section 7.d. below). EMPLOYEE shall be entitled to only the compensation accrued up to the date of termination, and such other termination benefits and payments as may be required by law or applicable provisions of the “City of Stockton Unrepresented Management/Confidential and Law Employees’ Compensation Plan” for employees designated under the Management Plan “MA” and/or “Department Heads. In the event the CITY terminates EMPLOYEE without cause, then the CITY may terminate this AGREEMENT immediately, and EMPLOYEE shall no longer be employed by the CITY and this AGREEMENT shall terminate.
Termination For Cause.
Notwithstanding the provisions of Section 6.C. [TERMINATION WITHOUT CAUSE], the City Council may terminate Employee for cause. As used in this section, “cause” shall mean only one or more of the following:
Incompetency such as failure of EMPLOYEE to comply with the minimum standards for the position of Interim City Manager Neglect of duty, such as failure to timely perform the duties required of Employee's position or failure to implement policy directions of the City Council Any grossly negligent action or inaction by Employee that materially and adversely: (a) impedes or disrupts the operations of City or its organizational units; (b) is detrimental to employees or public safety; or (c) violates City’s properly established rules or procedures Dishonesty involving employment
Being under the influence of alcohol or intoxicating drugs while on duty Absence without leave
Conviction of a crime or conduct constituting a violation of state or federal law that renders it more difficult for Employee to deliver public service. “Conviction” includes entry of a plea of nolo contendere or a plea bargain Improper or unauthorized use of City property
Failure to engage or participate in good faith in an interactive process to attempt to identify an effective reasonable accommodation to resolve a physical or mental infirmity(s) or defect(s) affecting job performance when it is within the capacity of the employee to do so.
Acceptance from any source of any emolument, reward, gift, or other form of remuneration in addition to Employee’s regular compensation, as a personal benefit to Employee in connection with actions performed in the normal course of Employee’s assigned duties Falsification of any City report or record or of any report or record required to be, or, filed by Employee Engagement in prohibited harassment, discrimination, retaliation, or abusive conduct Engaging in any incompatible activity or prohibited conflict-of-interest A material breach of this Agreement
For purposes of this provision, a determination that “cause” exists shall be based on demonstrable, or otherwise reasonably proven, sustained, corroborated, or admitted conduct.
In the event the CITY terminates Employee for cause, then the City may terminate this Agreement immediately, and Employee shall no longer be employed by the CITY and this AGREEMENT shall terminate. EMPLOYEE shall be entitled to only the compensation accrued up to the date of termination, and such other termination benefits and payments as may be required by law or applicable provisions of the “City of Stockton Unrepresented Management/Confidential and Law Employees’ Compensation Plan” for employees designated under the Management Plan “MA” and/or “Department Heads.
NO SEVERANCE. EMPLOYEE shall not be entitled to any severance pay Manager upon the termination or expiration of this AGREEMENT for any reason or EMPLOYEE’s resignation or termination from the Interim City Manager position or from CITY employment for any reason.
RETURN OF CITY PROPERTY. Upon the termination or expiration of this AGREEMENT for any reason, EMPLOYEE’s resignation or termination from the Interim City position or from CITY employment for any reason, EMPLOYEE agrees to immediately surrender any and all writings containing information relating to the conduct of the CITY’s business prepared, owned, used, or retained by EMPLOYEE regardless of physical form or characteristics, and any and all equipment, tools, or other materials of whatever nature provided to EMPLOYEE by CITY in his capacity of Interim City Manager.
Indemnification.
In accordance with and to the extent provided by California's Tort Claims Act (Gov. Code § 825 et seq.) and Government Code sections 995-996.6, the City shall defend and indemnify Employee against and for all losses sustained by Employee in direct consequences of the discharge of Employee's duties on the City's behalf for the period of Employee's employment.
Nothing in this agreement shall expand the City’s defense and indemnification obligations beyond those provided in the Government Code Tort Claims Act (Gov. Code § 825, et seq.) and Government Code sections 995-996.6. Further, in the event City provides funds for legal criminal defense pursuant to this sub-section and terms of the Government Code, EMPLOYEE shall reimburse the City for such legal criminal defense funds if EMPLOYEE is convicted of a crime involving an abuse of office or position, as provided by Government Code sections 53243 — 53243.4.
City and Employee agree that it is their mutual intent to fully comply with Government Code sections 53243 – 53244, as applicable. Upon conviction as set forth in Government Code sections 7522.72 or 7522.74, Employee may forfeit the benefits in accordance with those sections.
This Section 8 [INDEMNIFICATION] shall survive termination of this Agreement.
BONDING. CITY shall bear the full cost of any fidelity or other bonds the CITY requires of EMPLOYEE under any law or ordinance or otherwise.
AMENDMENTS. This agreement may only be modified in writing and duly authorized and executed by both parties.
SEVERABILITY. If any provision of this agreement is found by a court of competent jurisdiction over the PARTIES to be illegal or unenforceable, the remainder of this agreement shall not be affected and shall remain in full force and effect to the greatest extent permitted by law, unless the parts found to be illegal or unenforceable are wholly inseparable from the remaining portion of this AGREEMENT.
Jurisdiction and Venue. Any dispute concerning this agreement shall be governed by the laws of the State of California, and the Parties agree that venue shall be in San Joaquin County, California.
ENTIRE AGREEMENT. This agreement and its Attachment contains the entire agreement of the PARTIES. No promise, representation, warrant or covenant not included in this agreement has been or is relied on by any party hereto.
NOTICE.
Any notices, including change of address of either party during the term of this Agreement, which Employee or the City shall be required, or may desire, to make pursuant to this Agreement shall be in writing and shall be either hand-delivered or sent by prepaid first class mail and addressed as follows:
TO CITY: Mayor
City of Stockton
425 N. El Dorado St
Stockton, CA 95202
TO EMPLOYEE: Steve Colangelo
[Most recent address on file with Human Resources]
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IN WITNESS WHEREOF CITY has caused this AGREEMENT to be signed and executed on its behalf by its Mayor, and duly attested by City Clerk, and EMPLOYEE has signed and executed this AGREEMENT, as of the day and year first above written.
EMPLOYEE
STEVE COLANGELO
INTERIM CITY MANAGER
CITY OF STOCKTON
CHRISTINA FUGAZI
MAYOR
ATTEST:
KATHERINE D. ROLAND, CMC, CPMC
CITY CLERK
APPROVED AS TO FORM:
LORI M. ASUNCION
CITY ATTORNEY
Attachment “A”
[ATTACH CITY MANAGER CLASS SPECIFICATION HERE]
AT-WILL EMPLOYMENT AGREEMENT BETWEEN CITY OF STOCKTON AND STEVE COLANGELO AS
INTERIM CITY MANAGER
EXHIBIT 1