HomeMy WebLinkAboutReso 34-2014RESOLUTION NO. 34 -2014
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING A CITY MANAGER
EMPLOYMENT AGREEMENT BETWEEN THE CITY OF
SOUTH SAN FRANCISCO AND MICHAEL FUTRELL FOR
SERVICE AS CITY MANAGER.
WHEREAS, the City of South San Francisco conducted a recruitment for the position of
City Manager; and
WHEREAS, the City of South San Francisco and Michael Futrell desire to execute an
Employment Agreement for services as City Manager and Executive Director of the Successor
Agency to the Redevelopment Agency of the City of South San Francisco.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that the Employment Agreement, attached hereto as Exhibit A, is hereby approved.
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said
Employment Agreement on behalf of the City of South San Francisco.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 12"' day of March,
2014 by the following vote:
AYES: Councilmembers Mark N. Addiego Pradeep Gupta, and Liza Normandy
Vice Mayor Richard A. Garbarino and Mayor Karyl Matsumoto
NOES:
None
ABSTAIN:
None
ABSENT:
None
ATTEST: � �-A"- . -�A,.-.�
Anna Brown, Deputy City Clerk
City Manager Employment Agreement
TABLE OF CONTENTS
Introduction
P. 1
Section 1: Term and Contract Renewal
P. 1
Section 2: Duties and Authority
P. 1
Section 3: Compensation
P. 1
Section 4: Health, Disability and Life Insurance Benefits
P. 2
Section 5: Holiday, Vacation, Administrative and Sick Leave
P. 2
Section 6: Automobile
P. 2
Section 7: Retirement
P. 2
Section 8: General Business Expenses
P. 3
Section 9: Termination
P. 4
Section 10: Severance
P. 4
Section 11: Resignation
P. 5
Section 12: Performance Evaluation
P. 5
Section 13: Outside Activities
P. 5
Section 14: Moving and Relocation Expenses
P. 5
Section 15: Bonding
P. 5
Section 16: Cash Settlement Reimbursement
P. 5
Section 17: Notices
P. 5
Section 18: General Provisions
P. 6
City Manager Employment Agreement
Introduction
This Agreement, made and entered into this 12th day of March, 2014, by and between the City
of South San Francisco, a municipal corporation, (hereinafter called "Employer ") and Michael
Futrell, (hereinafter called "Employee ") an individual who has the education, training and
experience in local government management, both of whom agree as follows:
Section 1: Term and Contract Renewal
A. This Agreement shall remain in full force in effect for two years from April 7, 2014 unless
terminated by the Employer or Employee as provided in Section 9, 10 or 11 of this Agreement.
B. The Employee and Employer may extend the term of this Agreement by amending this
agreement in writing. In the event that the Employer does not intend to extend the term of this
Agreement, Employer will provide the Employee with notice of such intent at least six (6)
months prior to expiration of the current term. In the event the Employer fails to provide such
notice, Employee shall receive compensation equivalent to the salary set forth herein beyond
the termination of the Agreement for the period necessary to constitute an effective period of
six (6) months' notice. For example, if Employer gives notice of intent not to extend the term
of the Agreement four (4) months prior to term expiration, Employee shall be entitled to an
additional two (2) months' salary.
C. Notwithstanding the foregoing, any extension to the term of this Agreement shall require
mutual agreement and execution by the Employer and Employee of a written amendment.
Section 2: Duties and Authority; Scope of Agreement
Employer agrees to employ Michael Futrell as City Manager and Executive Director of the
South San Francisco Successor Agency to perform the functions and duties specified in
Government Code Section Sections 34851 through 34859 and South San Francisco Municipal
Code section 2.36.040, and to perform other legally permissible and proper duties and
functions. Employee shall receive the benefits set forth in Employer's "Compensation Plan for
the Executive Management Unit" except as any specific benefit set forth in that document is
amended by a specific provision of this Agreement. Employee shall serve as an at -will
employee of the City and nothing in this agreement, City's personnel rules, policies,
procedures, ordinances or resolutions shall limit the right of Employer to treat Employee as an
at -will employee.
Section 3: Compensation
Base Salary: Employer agrees to pay Employee an annual base salary of two hundred and
thirty -five thousand dollars ($235,000), payable in installments at the same time that the other
management employees of the Employer are paid.
Section 4: Health, Disability and Life Insurance Benefits
A. The Employer agrees to provide the same vision, dental and comprehensive medical
insurance for the Employee and his dependents as is provided in the Executive Management
Compensation Plan.
B. The Employer agrees to maintain and to make required premium payments for the same
short term and long term disability coverage for the Employee as is provided in the Executive
Management Compensation Plan.
C. Employer agrees to provide the same Life and Accidental Health and Dismemberment
Insurance, Retirement Health Savings and Executive Wellness benefits to Employee as is
provided in the Executive Management Compensation Plan.
Section 5: Holiday, Vacation, Sick, and Administrative Leave
Employee shall accrue Holiday, Vacation, Administrative, floating holiday and Sick Leave as
set forth and at the rate specified in the Executive Management Compensation Plan.
Employee's tenure in public service has been considered to determine the Vacation accrual
rate. As a result, upon effective date of this Agreement, Employee's Vacation accrual rate shall
start at the accrual rate equal to that of an employee with five years of City service, as specified
in the Executive Management Compensation Plan, with future years of service counting from
the initial five year mark. Rates of accrual, accrual caps, forfeiture and payouts of unused leave
time shall be as provided in the Executive Management Compensation Plan. Upon the
effective date of this contract Employee shall be credited with an additional sixty (60) hours of
vacation leave which is available immediately.
Section 6: Automobile
The Employee's duties require exclusive and unrestricted use of an automobile to be provided
to the Employee at the Employer's cost, subject to approval by Employer, which shall not be
withheld without good cause. The Employer shall• be responsible for paying for liability,
property damage, and comprehensive insurance, and for the purchase (or lease), operation,
(including fuels and lubricants) maintenance, repair, and regular replacement of a full -size
automobile. The vehicle provided herein may be used by Employee for both business use and
incidental personal use of Employee.
Section 7: Retirement
A. The Employer agrees to enroll the Employee into the CalPERS retirement system as a new
miscellaneous member at the formula mandated by law which is 2% @ 62 with a final
compensation period of 3 years average. Employee will pay 50% of the normal cost of the
CalPERS contribution, presently 6.5 %. Employer will pay to CalPERS the Employer's required
share, which is presently 6.5 %.
B. Employer participates in Social Security and Medicare. The Employee shall have his
statutory contribution to Social Security and Medicare deducted from his paycheck for his
share and the Employer will pay its share of Social Security and Medicare.
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C. Subject to the terms and conditions of the City's Deferred Compensation Plan and IRS
rules, Employee may participate in the City's section 457 Deferred Compensation Plan. The
City will not make any contribution to the Deferred Compensation Plan on Employee's behalf.
D. Because Employee was hired after April 24, 2010, in lieu of offering City -paid retiree
medical insurance, the City will contribute 1.5% of Employee's base salary to a Retirement
Health Savings ( "RHS ") Account presently administered through ICMA -RC. Employee may
additionally contribute to the Retirement Health Savings Account through ICMA -RC to the
extent permitted under the existing RHS Plan policy and IRS rules and regulations. Employee
may request special RHS plan participation rules be adopted for his individual employment
unit so long as they comply with IRS regulations and provide for no cost to the City. Further,
Employee's RHS plan participation will not be governed by the RHS Plan provisions (section
4.12) of the Executive Management Compensation Plan.
Section 8: General Business Expenses
A. Subject to annual approval of the Employer's Operating Budget by the City Council,
Employer agrees to budget for and to pay for professional dues and subscriptions of the
Employee necessary for continuation and full participation in national, regional,
state, and local associations, and organizations necessary and desirable for the
Employee's continued professional participation, growth, and advancement, and for the good
of the Employer.
B. Subject to annual approval of the Employer's Operating Budget by the City Council,
Employer agrees to budget for and to pay for travel, registration and subsistence expenses of
Employee for professional and official travel, meetings, and occasions to adequately continue
the professional development of Employee and to pursue necessary official functions for
Employer, including but not limited to the ICMA Annual Conference, The National League of
Cities Annual Conference, the League of California Cities, and such other national, regional,
state, and local governmental groups and committees in which Employee serves as a member.
C. Subject to annual approval of the Employer's Operating Budget by the City Council,
Employer also agrees to budget for and to pay for travel, registration and subsistence expenses
of Employee for courses, institutes, and seminars that are necessary for the Employee's
professional development and for the good of the Employer.
D. The Employer acknowledges the value of having Employee participate and be
directly involved in local civic clubs or organizations. Accordingly, subject to annual
approval of the Employer's Operating Budget by the City Council, Employer shall pay for the
reasonable membership fees and/or dues to enable the Employee to become an active member
in local civic clubs or organizations.
E. Technology: The Employer shall provide Employee with a computer, software, fax /modem,
cell phone and pager required for the Employee to perform the job and to maintain
communication. Further, Employer shall provide Employee with a personal technology
allowance of Seventy -Five dollars ($75.00) per month.
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Section 9: Termination
Employee acknowledges that he is employed as an at -will employee. For the purpose of this
agreement, termination shall occur when:
A. The majority of the governing body votes to terminate the Employee without cause at a duly
authorized public meeting. Employee shall not be terminated pursuant to this Section 9A during the
60 -day period preceding or following any City election for membership on the City Council, or
during the 60 -day period following any change of membership on the City Council.
B. If the Employer reduces the base salary, compensation or any other financial benefit of the
Employee, unless it is applied in no greater percentage than the average reduction of all
department heads, such action may be regarded as a termination.
C. Breach of contract declared by either party with a 30 day cure period for either Employee or
Employer. Written notice of a breach of contract shall be provided in accordance with the
provisions of Section 17.
D. Employee is convicted in any state or federal court of i) any felony or ii) any misdemeanor
resulting from an act of moral turpitude.
E. Should Employer withdraw this offer of employment and/or terminate this agreement prior
to April 7, 2014, the Employer shall provide a severance payment to Employee equal to six
months' salary at the current rate of pay. Notwithstanding the foregoing, Employer is not required
to pay severance pursuant to this Section 9E in the event Employee is tennnated pursuant to Section
9D.
Section 10: Severance
A. Except as provided in Subsection 9C when Employee is the Party in Breach, or as provided in
subsection 9D, severance shall be paid to the Employee when employment is terminated as
defined in Section 9, subsections (A) or (B).
B. If the Employee is terminated during the first year of employment under this Agreement; the
Employer shall provide a severance payment equal to six months' salary at the current rate of
pay. If the Employee is terminated after one year or more of employment under this Agreement,
the Employer shall provide a severance payment equal to nine months' salary at the current rate
of pay. This severance shall be paid in a lump sum unless otherwise agreed to by the Employer
and the Employee.
C. During the period of time that severance is paid in accordance with the provisions of this
Section 10, the Employer shall pay the cost to continue the following benefits: Medical, dental
and vision insurance for the employee and all dependents as provided in Section 4A.
D. If the Employee is terminated because of an action constituting a felony or a misdemeanor
involving moral turpitude, then the Employer is not obligated to pay severance under this
section.
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Section I1: Resignation
In the event that the Employee voluntarily resigns his position with the Employer, the
Employee shall provide a minimum of 30 days' notice unless the parties agree otherwise.
Section 12: Performance Evaluation
Employer shall review the performance of the Employee six months after his first day of
employment, and annually thereafter, subject to a process, form, criteria, and format for the
evaluation which shall be selected by the Employer. The process at a minimum shall include
the opportunity for both parties to: (1) prepare a written evaluation, (2) meet and discuss the
evaluation, (3) present a written summary of the evaluation results and (4) formulate goals for
the following year. The final written evaluation should be completed and delivered to the
Employee within 30 days of the evaluation meeting.
Section 13: Outside Activities
The employment provided for by this Agreement shall be the Employee's sole employment.
Section 14: Moving and Relocation Expenses
Employee has agreed that it is his intention to establish residence within the corporate
boundaries of the city of South San Francisco within three months of employment, and thereafter
to maintain residence within the corporate boundaries of the City. Before moving, Employee
shall obtain bids from three moving companies. Employer shall pay directly for the expenses of
moving Employee and his family and personal property from Honolulu, Hawaii to South San
Francisco, California up to the lesser of the lowest of the three bids. Said moving expenses include
packing, moving, storage costs, unpacking, and insurance charges. In addition to the direct
costs of moving, within a reasonable time following execution of this Agreement, Employer
will pay employee a one -time stipend of $20,000 to cover costs of relocation and will
reimburse the Employee for one month of COBRA benefits for the month of April 2014.
Section 15: Bonding
Employer shall bear the full cost of any fidelity or other bonds required of the Employee under
any law or ordinance.
Section lb: Cash Settlement Reimbursement
If this Agreement is terminated, any cash settlement related to the termination that Employee
may receive from the Employer shall be fully reimbursed to the Employer in the event that the
Employee is convicted of a crime involving an abuse of his office or position, as that term is
defined by California Government Code Section 53243.4.
Section 17: Notices
Notice pursuant to this Agreement shall be given by depositing in the custody of the
United States Postal Service, postage prepaid, addressed as follows:
(1) EMPLOYER:
Mayor and City Council
City of South San Francisco
400 Grand Avenue
South San Francisco, CA 94080
(2) EMPLOYEE:
Michael Futrell
101 Hickey Blvd, Suite A
South San Francisco, CA 94080
Alternatively, notice 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 of transmission
in the United States Postal Service.
Section 18: General Provisions
A. Integration. This Agreement sets forth and establishes the entire understanding between the
Employer and the Employee relating to the employment of the Employee by the Employer.
Any prior discussions or representations by or between the parties are merged into and
rendered null and void by this Agreement. The parties by mutual written agreement may
amend any provision of this agreement during the life of the agreement. Such amendments
shall be incorporated and made a part of this agreement.
B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as well
as their heirs, assigns, executors, personal representatives and successors in interest.
C. Effective Date, This Agreement shall become effective on April 7, 2014.
D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not
affect the validity of any other provision. In the event that any provision of this Agreement is
held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if
they have been executed by both parties subsequent to the expungement or judicial
modification of the invalid provision.
CITY OF SOUTH SAN ARANCISCO EMPLOYEE
Mayor Michael Futre
C.
Attest:
City Clerk
Approved as to Fonn:
s
C' Attorney
2235201.10