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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. 2 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. 3 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. 4 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