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HomeMy WebLinkAbout2013-023 Rachelle Rickard CM Agreement EMPLOYMENT AGREEMENT FOR RACHELLE RICKARD CITY MANAGER CITY OF ATASCADERO AS OF JUNE 28, 2013 EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into and effective on June 28, 2013, by and between the City of Atascadero (hereinafter called "City") and Rachelle Rickard (hereinafter called "City Manager"). RECITALS WHEREAS, the City desires to employ the services of Rachelle Rickard, as City Manager of the City of Atascadero, and WHEREAS, the City desires to provide certain benefits, establish certain conditions of employment, and to set working conditions of said City Manager, and WHEREAS, the City desires to (1) retain the services of City Manager and to provide inducement for her to remain in such employment, and (2) to make possible full work productivity by assuring City Manager's morale and peace of mind with respect to future security; and provide an equitable means of terminating her services, and WHEREAS, City Manager desires to be employed as the City Manager of the City of Atascadero NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: AGREEMENT SECTION 1. TERM The City hereby employs City Manager for a term of five (5) years commencing on June 28, 2013 ("Commencement Date") at 12:00 pm, and continuing through the end of business on June 30, 2018 or until terminated pursuant to Section 4 of this Agreement ("Term"). The Anniversary Date shall be June 28th of each year. This Agreement shall automatically extend for subsequent one (1) year terms ("Extended Term") on each Anniversary Date unless the City provides written notice of non-extension or of termination of this Agreement to City Manager no less than one month prior to the Anniversary Date. Upon notification, this Agreement will remain in force for the remaining Term plus Extended Term of the contract. SECTION 2. DUTIES The City agrees to employ City Manager as City Manager of the City to perform the functions and duties as currently in effect, as set forth in Chapter 4 of the Atascadero Municipal Code, or as hereafter may be established by ordinance, resolution or action of the City Council. The City Manager's schedule of work each day and week shall vary in accordance with the work required to be performed. It is recognized that the City Manager must devote a great deal of her time outside normal office hours to the business of the City and to that end, will be allowed to take time off during normal office hours. The City Manager is a full-time, FLSA exempt, employee. SECTION 3. COMPENSATION The City agrees to compensate City Manager for her services as City Manager by payment of salary in a manner consistent with other City employees. City Manager's monthly salary as of the Commencement Date of this Agreement shall be $ 12,492.36. In accordance Resolution 2011-059, the City Manager shall participate in the furlough program. City Manager shall receive automatic annual step increases of 5% in salary for each of the next two years upon her anniversary date. The City Council may, from time-to-time, by resolution, adjust City Manager's salary. SECTION 4. TERMINATION City Manager shall serve at the will and pleasure of the City Council and may be removed from office (terminated) at any time with or without cause 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 City Manager at its sole discretion. 1. Notice of Termination. In the event City Manager is terminated without cause by the City during the Term or any subsequent Extended Term of this Agreement, during which time the City Manager is willing and able to perform her duties under this Agreement, the City Council agrees to provide the City Manager with ninety (90) days written notice of termination. Any termination without cause shall be a termination of employment in good standing. 2. Severance Payment. In the event City Manager is terminated without cause, City Manager shall be entitled to a severance payment in the amount of twelve months' base salary and continuation of all existing health benefits for twelve months. If City Manager finds other employment that provides health benefits and she qualifies to begin receiving those health benefits, then the health benefits provided by the City shall terminate. The foregoing salary and health benefits shall be referred to collectively as "Severance Pay." Notwithstanding the above, in no event shall the total cash value of the Severance Pay exceed the value of eighteen months' base salary. 3. In addition to the Severance Payment, City Manager upon termination without cause shall also receive (1) the cash value of all vacation leave, (2) the cash value of unused administrative leave, (3) the cash value of one-half of the accrued sick leave balance and (4) cash value of unused floating holiday. 4. In exchange for the Severance Pay, the City Manager hereby expressly waives any right she may have under any applicable law, City policy, or otherwise to appeal or grieve her termination and the terms of this Agreement. 5. The above severance provisions are intended to comply with the provisions of Government Code section 53260, et seq. Any severance payment under this Agreement is also subject to the forfeiture or repayment provisions of Government Code section 53243, et seq. 6. Transition Waiting Period. During a period of one hundred and twenty (120) days immediately following the date of installation of any person elected to the Council at a regular or special City Election, or of any person newly appointed to the Council, the Council shall take no action, whether immediate or prospective, to remove, suspend, request the resignation of, or to reduce the salary or benefits of the City Manager. 7. Termination for Cause. In the event that it is determined that City Manager has been terminated for cause, she shall not be entitled to any Severance Pay. Termination shall be for "cause" only if City Manager: (i) is convicted of a felony that adversely affects her reputation or the reputation of the City; (ii) engages in uncorrected drug or alcohol abuse, (iii) has repeated and protracted unapproved absences; or (iv) engages in the willful or insubordinate refusal to carry out a lawful directive of the •City Council, provided that such directive was made in an open session meeting of the City Council and repeated in at least one subsequent open session meeting. If City Manager is terminated with cause, then City Manager shall receive upon termination (1) the cash value of all vacation leave, (2) the cash value of unused administrative leave and (3) cash value of unused floating holiday. In the event the City Manager is terminated with cause, then the City Manager shall not be entitled to receive upon termination any payment for accrued sick leave. & In the event that City Manager is convicted of a crime involving an abuse of his office or position, as defined in California Government Code section 53243.4, City Manager shall be required to fully reimburse the City in accordance with California Government Code sections 53243, 53243.1, 53243.2 and/or 53243.3. 9. Upon conviction of a covered felony under Government Code section 7522.72 or 7522.74, City Manager may forfeit benefits in accordance with those sections. SECTION 5. RESIGNATION 1. City Manager may resign at any time with one hundred and twenty (120) days written notice. 2. Resignation Resulting from City Breach of Agreement. If the City Manager resigns over a material and uncorrected breach of this Agreement by the City, City Manager shall be entitled to Severance Pay and (1) the cash value of all vacation leave, (2) the cash value of unused administrative leave, (3) the cash value of one-half of the accrued sick leave balance and (4) cash value of unused floating holiday. In such event, City Manager shall first notify the City in writing of her intention to resign within 30 calendar days of when she either knew or should have known with reasonable diligence of the acts or omissions underlying her potential resignation. City Manager shall be entitled to Severance Pay only if the City fails to correct said act or omission within 30 calendar days of its receipt of said notice and if City Manager subsequently follows through with her resignation. City Manager shall also be entitled to Severance Pay if the City Manager resigns as a result of a request to resign by a majority of the City Council. Any Severance Pay paid to City Manager under this Section shall be subject to all limitations on the payment of Severance Pay set forth above. 3. Other Resignations. In the event City Manager resigns for any reason other than those set forth in the Resignation Resulting from City Breach of Agreement provision, she shall not be entitled to any Severance Pay. SECTION 6. COUNCIL COMMITMENTS 1. City Council commits to participate in a duly noticed team building/strategic planning workshop annually based upon the City's ability to fund. 2. City Council agrees, in concept, to an annual department head strategic planning workshop. The details and costs of such a workshop will be handled in each annual budget. 3. City Council commits to an appropriate employee incentive program, to be administered by City Manager. Annually, funds shall be included in the budget to be used as employee incentives at the direction of the City Manager. SECTION 7. OUTSIDE ACTIVITIES Upon prior approval of the City Council, City Manager may undertake outside professional activities for compensation, as agreed to by the parties, which may include consulting, teaching, training, speaking, and writing, of up to 10 hours per month, provided they do not otherwise interfere with City Manager's normal duties and are done only during non-business hours, personal leave, or holiday time and are not done with any existing vendors or contractors of the City. Under no circumstances shall any outside activities, whether or not for compensation, create a conflict of interest with the duties of the City Manager and the interests of the City. SECTION 8. BENEFITS 1. In addition to the compensation set forth in Section 2 of this Agreement, City Manager shall be entitled to receive the same benefits as are accorded all other Executive City management employees except as herein provided. City Manager shall be entitled to the following benefits: a. City Council shall engage in a review of the City Manager's performance annually City Council and City Manager shall define such goals and performance objectives which they determine necessary for the proper operation of the City in the attainment of the City Council's policy objectives, and the City Council and City Manager shall further establish a relative priority among those various goals and objectives reduced to writing. These goals and objectives shall be obtainable generally within the time limits as specified in the operating and capital budgets and appropriations provided. b. In addition to benefits described herein, City Manager shall be entitled to the same benefits granted to Executive Management Positions, as set forth in the Compensation Pian provided by the City's Personnel Rules and City Council Resolution No. 2011-059, which may be repealed, replaced or amended by the City Council. As used herein, benefits include, but are not limited to, vacation, sick leave, stay well bonus, sick leave payback, personal leave, bereavement leave, administrative leave [administrative leave to be taken at City Manager's sole discretion], furlough program, holiday pay, retirement {PERS} benefits and payments, health insurance, dental insurance, vision insurance, life insurance, Post Retirement Health Benefit for Executive Management, long-term disability and education incentive pay. Accrual shall be at rates afforded other Executive Management Employees. Instead of any life insurance benefits provided to Executive Management, City Manager shall receive additional term-life insurance with a death benefit of two times the annual salary of City Manager. City Manager's medical payback is frozen consistent with the City's Executive Management group. C. City Manager must take a vacation for at least two consecutive weeks every calendar year and the balance of her vacation days may be taken by City Manager on days of her choice. d. City Manager shall carry over all leaves of absence and benefits that accrued during her prior positions with the City on an hour-for-hour basis. Any future accrual of leaves of absence shall be subject to any rules set forth for other executive management employees, which shall include, but is not limited to, limitations on leave accrual. Effective June 27, 2013, Rachelle Rickard shall be entitled to a pay out of 500 hours from her historic leave bank which has a current balance of 749.61 hours using the salary base of her position as the City's Director of Administrative Services which payment shall be included in the pay period ending June 28, 2013. e. The Sick Leave Payback provides that management and confidential employees shall be paid for one-half of her accumulated Sick Leave when the employee terminates employment in "good standing". Termination of the City Manager without cause will be considered terminating employment in "good standing". f. City will budget for and pay the travel and subsistence expenses of the City Manager for official travel, meetings, professional development of the City Manager and necessary official and other functions for the City, including, but not limited to, national, regional, state, and local conferences, governmental groups, and committees. City will budget and pay for necessary professional dues and subscriptions to organizations, City shall reimburse City Manager for any expenses incurred under this section 8f in accordance with the City's standard purchasing policies. g. City will also budget and pay for the maintenance of City Manager as a Certified Public Accountant, which includes but is not limited to registration, travel and subsistence for required continuing education requirements and biannual licensing fees. City shall reimburse City Manager for any expenses incurred under this section 8 g in accordance with the City's standard purchasing policies up to an annual maximum of$1600.00. h. City shall pay for City Manager's membership in, and for all fundraising "fines" as may be assessed by a civic organization, dues and other costs associated with City Manager's involvement in civic organizations, as requested by the City Council, i. City Manager shall receive five hundred dollars ($500.00) each month as an automobile allowance. The allowance is in exchange for (1) City Manager making available for her own use a personal automobile, and (2) for her use of her personal automobile for City related business and/or functions during, before and after normal work hours. City Manager is not precluded from using City vehicles for City business during before, and after the normal work day. A City vehicle will not be provided to City Manager for her exclusive use and no City vehicle shall be utilized by City Manager for commuting purposes. City Manager will be entitled to mileage reimbursement at standard rates for trips over two hundred (200) miles. SECTION 9. DEFERRED COMPENSATION 1. City Manager shall not receive any deferred compensation benefits set forth in City Council Resolution No. 2011-059. This section 9 solely provides all deferred compensation benefits to be provided to City Manager. 2. City agrees to contribute the maximum sum allowed by law into City Manager's 457 deferred compensation account with ICMA Retirement Corporation including any pre- retirement incentives. Such contribution shall be pro-rated equally and shall be paid per City practice across 24 pay-periods. 3. City shall pay a contribution equal to five percent (5%) of City Manager's base salary to a tax deferred supplemental retirement plan (i.e 403b, 401a, or other similar plans) in favor of City Manager. All contributions are fully vested in City Manager and shall not be available to the City. SECTION 10. GENERAL PROVISIONS 1. This Agreement shall constitute the entire Agreement between the parties. 2. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, personal representatives, successors and assigns of City Manager. 3. In accordance with California Government Code section 53262, this Agreement shall become effective upon the City Council's ratification in an open session, with the minutes of the session reflecting such ratification. 4. This contract may be modified only in a writing ratified by the City Council in open session and signed by all the parties. 5. The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party's right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 6. in the event any portion of this Agreement is declared void, such portion shall be severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated. IN WITNESS WHEREOF, the above parties have executed this Agreement as of the date first written above. CITY OF ATASCADER BY: . ......Y'19--: -' J Tom O'Malley,,Ma r Rad elle Rickard, Crty [Vana-ger ATTEST I -- o BY: /104 m�j 4 Marcia McClure Torgerson, City C--Nler "�'