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HomeMy WebLinkAboutDeStefano, James - 7/10/2006EMPLOYMENT AGREEMENT 0 - THIS AGREEMENT is made and entered into as of this 'day of July, 2006, by and between the CITY OF DIAMOND BAR, a general law city and municipal corporation (hereinafter "City"), and JAMES DESTEFANO (hereinafter "Employee"), bothh of whom understand as follows: RECITALS A. City desires to engage the services of Employee, and Employee desires to accept employment as City Manager of the City of Diamond Bar. B. The City Council desires to: (1) Encourage the highest standards of fidelity and public service on the part of Employee; and (2) Provide a just means for terminating Employee's services at such time as he may be unable fully to discharge his duties, or when City may desire otherwise to terminate his employment. C. The parties further desire to establish certain benefits and certain conditions of Employee's employment. NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained the parties agree as follows: 1. Duties. City appoints agrees to employ Employee as City Manager of City to perform the functions and duties specified in City's Municipal Code and the Government Code of the State of California, and to perform such other legally permissible and proper duties and functions as the City Council may from time to time assign. Employee shall not consult or engage in other non -City connected business or employment without the prior knowledge and express written approval of the City Council. 2. Term. This Agreement is effective as of July', 2006 and shall continue in effect unless terminated as provided in Section 3 herein. Termination and Resignation. A. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate, by a majority vote of the City Council, the services of Employee without cause, at any time, subject only to the City providing written notice to Employee, and complying with paragraph D of this Section 3. Notice of termination shall not be given during or within a period of ninety (90) days succeeding any general municipal election held in the City at which members of the City Council are elected. B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with City, subject only to Employee providing thirty (30) days prior written notice to the City. C. Notwithstanding the provisions of Paragraph A of this Section 3, in the event Employee is terminated by City for "cause," then City may terminate this Agreement immediately and Employee shall be entitled to only the compensation accrued up to the date of termination. As used in this section, "cause" shall mean any of the following: (1) Conviction of any felony. (2) Conviction of a misdemeanor arising directly out of the City Manager's duties pursuant to this Agreement. (3) Conviction of any crime involving moral turpitude. (4) Removal from office by the Grand Jury. (5) Willful abandonment of duties. (6) A pattern of repeated, willful and intentional failure to carry out clear, unambiguous, materially significant and legally constituted policy decisions of the City Council made by the City Council as a body. D. In the event Employee is terminated by the City Council at any time that Employee is still willing and able to perform the duties of City Manager, and the termination is without cause as "cause" is defined in Paragraph C above, then, subject to the limitations set forth in Government Code Section 53260, the City shall pay Employee a lump sum cash payment equal to six (6) month's aggregate salary and benefits. The word "termination" in this paragraph shall include a reduction in salary (other than an across-the-board reduction applicable to all senior level employees) or other financial benefits of Employee or Employee's resignation, if preceded by a formal request by a majority of the City Council that he resign. E. Effect of Pa ent_of Severance/Release. (1) This section applies only to the following matters: (a) any rights of Employee to receive severance benefits under this Agreement, (b) any right of employee to continued employment with City, and (c) any claim, demand, or cause of action or damages for wrongful termination (collectively the "Released Matters"). (2) This Section does not otherwise affect, waive, nor release any other rights Employee may have under this Agreement, or applicable law. (3) Upon City's full payment of severance benefits to Employee, Employee (a) releases and discharges City and its elected officials, appointed officers, employees, sub -contractors, agents, accounts, attorneys, successors and all other persons acting for, under, or in concert with City both past and present from any and all personal claims, demands, actions, causes of action, obligations, damages, liabilities, losses, costs and expenses, including attorney's fees of any kind or nature whatsoever, past, present and future, arising from, relating to or in connection with the Released Matters, and (b) agrees to waive any and all claims, demands, actions, causes of action, obligations, liabilities, claims of credits or offsets, costs and expenses, including attorney's fees, of any kind or nature whatsoever as to the Released Matters. As to the Released Matters only, Employee acknowledges that he has read and understands California Civil Code § 1542 which states: "A general release does not extend to the claims which a creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him, must have materially affected his settlement with the debtor." The parties agree that full payment of the severance benefits in this Agreement act as a complete and total release of all future claims which may arise out of the Released Matters whether such claims are: currently known or unknown, foreseen or unforeseen, contingent or absolute; and as to the Released Matters the parties intentionally and specifically waive any rights they may have under the provisions of Civil Code § 1542, as well as under any other statutes or common law principles of similar effect, and each party assumes full responsibility, for such injuries, damages, losses or liabilities that any of them may hereafter incur with respect to the Released Matters. This section will survive termination of the Agreement. 4. Revolving Door. Employee must comply with Government Code § 87406.3 for a period of one year after separating from service with City. This section will survive termination of this Agreement. Sam. City agrees to pay Employee for the services required by this Agreement a monthly base annual salary of One Hundred Fifty Seven Thousand Dollars ($157,000.00) payable in installments at the same time as other employees of the City are paid. City agrees to maintain a greater than fifteen (15) percent salary differential between the highest step of the salary range for the Assistant City Manager and Employee. City agrees to pay Employee a monthly car allowance of Five Hundred Dollars ($500) per month. The car allowance is intended to reimburse Employee for the use of his private vehicle for City business. Employee must provide his own automobile for his use in performing his duties and is responsible for all maintenance, repair, fuel and insurance expenses for said vehicle. At the time of his annual evaluation, City agrees to evaluate Employee's salary and/or any other benefits Employee receives under this Agreement and to make modifications in such amounts and to such an extent as City Council in its discretion may determine that it is desirable to do so. 6. Hours of Work. Employee shall work a 9/80 -work schedule, meaning that he is entitled to be off work on alternate Fridays. That notwithstanding, Employee's duties may involve expenditures of time in excess of nine (9) hours per day, eighty (80) hours per two week period, and will also include time outside normal office hours such as attendance at City Council and other meetings. Employee shall be exempt from paid overtime compensation. Retirement and Insurance Benefits. A. Retirement. During the term of this Agreement, City shall contribute to employer's and Employee's portion of Employee's membership in the Public Employees Retirement System. Employee shall pay any legally required Social Security withholding. B. Medical and Other Insurance. City shall provide Employee with the same health insurance, disability insurance and life insurance benefits as is provided to Executive Management employees of the City to be applied towards a cafeteria plan for purchase of health, dental, vision, life insurance and other similar benefits at Employee's election. C. Other Insurance. City shall provide and pay for all other insurance mandated by State law. D. Termination of Benefits. Notwithstanding the foregoing, City's obligation to pay Employee health benefits, including dependents, terminates upon the employment of Employee by another employer on the date such benefits are effective for Employee. 8, Sick Leave, Vacation and Holidays. A. Leave. Employee shall be entitled to sick leave, vacation leave, administrative leave, floating holiday and bereavement leave in the same manner as Executive Management employees of the City. Employee shall accrue leave time at the same monthly rate as provided an Executive Management employee with 15 years of employment with City. Employee shall be credited with ten (10) days of vacation leave and ten (l 0) days of sick leave upon the effective date of this agreement. B. Holidays. Employee shall be entitled to the same number of paid holidays per year as provided to other City employees. 9. Professional Development. City agrees to budget for and pay travel and subsistence expenses of Employee for professional travel, official travel, meetings necessary to pursue official and other functions for the City and to continue professional development of Ernployee, to the extent deemed reasonable by the City Council. 10. Memberships. City agrees to pay Employee's membership dues in the International City Management Association ("ICMA"), California League of Cities and other similar organizations to which City is a member, at City expense with prior City approval. Employee shall have a reasonable right to attend meetings of such organizations. City agrees to pay for such other professional membership dues and subscriptions as are approved in advance by the City Council. 11. General Expenses. City recognizes that certain extraordinary expenses of a nonpersonal and job affiliated nature may be incurred by Employee. City agrees to reimburse Employee for reasonable expenses which are submitted to the City Council within thirty (30) days for approval and which are supported by expense receipts, statements or personal affidavits, and an audit thereof in like manner as other demands against the City. 12. Evaluation of Performance. On or about the six (6) -month anniversary of the commencement of this Agreement, the City Council shall review and provide Employee with an evaluation of his performance based on criteria established by the Council with Employee's assistance. The City Council shall conduct such evaluation annually thereafter. Notwithstanding the foregoing, the City Council may evaluate Employee at any time. 13. Other Terms and Conditions of Em to ent. The City Council may from time to time fix other terms and conditions of employment relating to the performance of Employee provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Municipal Code, or other applicable law. 14. General Provisions. between the parties. A. The text herein shall constitute the entire agreement B. If Employee dies or becomes incapacitated during the term of this Agreement, any accrued and unpaid wages provided by the terms of this Agreement shall be paid by City to Employee's spouse. C. If any provision or portion hereof contained in this Agreement is held to be unconstitutional, invalid or unenforceable the remainder of this Agreement or portion thereof shall be deemed severable and shall not be affected and shall remain in full force and effect. D. City agrees to defend and indemnify Employee in accordance with the California Government Code. E. City shall bear the cost of any fidelity or other bonds required of Employee under any law or ordinance. F. This Agreement may be changed or amended by the mutual written consent of City and Employee. Any benefits to Employee under this Agreement may be increased or added to by motion of the City Council without formal amendment to the Agreement. G. Employee is expected to conform to the ICMA Code of Ethics and must comply with all applicable provisions of the City's conflict of interest code:. IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first above written. EMPLOYEE ."il -.1 (�71 �—o JAMES DES FANO CITY OF DIAMOND BAR B: Aku-4-- ylMAYOR CAROL HERRERA ATTIST: CITY CLERK