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HomeMy WebLinkAboutResolution 2010-029 N.C.S. 03/01/2010Resolution No. 2010-029 N.C.S. of the City of Petaluma, California RESOLUTION APPROVING AMENDMENT 1 TO THE FIRST AMENDED AT-WILL AGREEMENT FOR EMPLOYMENT OF CITY MANAGER AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT WHEREAS, the City and City Manager John C. Brown entered into an At-Will Agreement for Employment dated February 7, 2008 and effective April 1, 2008; and, WI-IEREAS, the City and City Manager John C. Brown executed the First Amended At- Will Agreement for Employment of City Manager dated May 21, 2008 and effective April 1, 2008; and, WHEREAS, the City of Petaluma continues to face financial shortfalls and impending layoffs, and in response to such challenging and difficult financial and economic conditions, all City of Petaluma employees have agreed to reduce their pay by 3.1 % for an eighteen (18) month period effective December 28, 2009 and through June 26, 2011 to reduce the City's operating costs during FY 2009-2010 and FY 2010-2011, and have accepted terms and incentives for doing so; and, WHEREAS, City Manager John C. Brown wishes to participate in the 3.1 % pay reduction under the same terms and conditions and with the same incentives as other City employees; and, WHEREAS, the City Council desires to accept and agree to City Manager John C. Brown's voluntary 3.1 % reduction in annual base salary effective December 28, 2009 and through June 26, 2011; and WHEREAS, the City Council. and City Manager John C. Brown agree to the terms of employment, compensation, and benefits relating to the position of City Manager set forth in Amendment 1 to the First Amended At-Will Agreement for Employment of City Manager attached to this resolution as Exhibit A. Resolution No. 2010-029 N.C.S. Page 1 NOW, 'THEREFORE, BE I'T RESOLVED by the City Council of the City of Petaluma as follows: 1. Amendment 1 to the First Amended At-Will Agreement for Employment of City Manager, which is attached to and made a part of this resolution as Exhibit A, is hereby approved. 2. The Mayor is hereby authorized and directed to execute on behalf of the City Amendment 1 to the First Amended At-Will Agreement for Employment of City Manager attached to and made a part of this resolution as Exhibit A. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE AYES: NOES: ABSENT: ABSTAIN ATTEST: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 151 day of March, 2010, by the following vote: Barrett, Vice Mayor Glass, Healy, Rabbitt, Renee, Mayor Torliatt None Harris None City Clerk city to Resolution No. 2010-029 N.C.S. Page 2 EXHIBIT A Amendment 1 to First Amended At-Will Agreement for Employment of City Manager Dated May 21, 2008 WHEREAS, the City of Petaluma ("CITY") and City Manager John C: Brown ("EMPLOYEE") entered into an At-Will Agreement for Employment dated February 7, 2008 and effective April 1, .2008; and, WHEREAS, the CITY and EMPLOYEE amended the At-Will Agreement for Employment of City manager by executing the First Amended At-Will Agreement ("Agreement") for Employment of City Manager dated May 21, 2008 and effective April 1, 2008; and, WHEREAS, the City of Petaluma continues to face financial shortfalls and impending layoffs, and in response to such challenging and difficult financial and economic conditions, all City of Petaluma employees have agreed to reduce their pay by 3.1 % for an eighteen (18) month period effective December 28, 2009 and through June 26, 201 1 to reduce the CITY's operating costs during FY-2009-2010 and FY 2010-201 1, and have accepted terms and incentives for doing so; and, WHEREAS, EMPLOYEE wishes to participate in the 3.1% salary reduction/leave program under the same terms and conditions and with the same incentives as other CITY employees; and, WHEREAS, the City Council desires to accept and agree to amendments to the terms of the Agreement to implement the agreement between CITY and EMPLOYEE concerning such pay reduction and incentives; NOW, THEREFORE, in consideration of'the mutual covenants herein contained, the parties agree that effective December 28, 2009: The First Amended At-Will Agreement for Employment of City Manager dated May 21, .2008 and effective April 1, 2008 ("Agreement") is hereby amended in accordance with provision 24(a) of the Agreement and fhe following. a. Provision 6(a) of the Agreement is amended to reduce the annual base .salary of $208,000 by 3.1% and to substitute $201,552 as the new temporary annual base salary effective December 28, 2009 through June 26, 201 1. Effective June 27, 201 1, the temporary base salary pursuant to this Amendment shall expire, and the annual base salary shall be restored to the base salary in effect December 27, 2009 or the then current base salary, whichever is greater. b. Anew provision 1 1 (a) (1) of the Agreement is added to read: "EMPLOYEE shall be granted 48 hours special paid leave effective June 27, 201 1. Such special leave must be taken by December 22, 2013. Special leave not used by December 22, 2013 will cease to exist on December 23, 2013 and wilt have no cash value. c. Anew provision 1 1 (a) (2) of the Agreement is added to read: "EMPLOYEE's vacation leave accrual limit pursuant to provision 7 of the Agreement shall be temporarily increased by forty-eight (48) hours from December 28, 2009 through December 22, 2013. Leave hours accrued above the regular accrual limit pursuant to provision 7 of the Agreement shall have no cash value. Effective December 23, 201.3, the vacation leave accrual limit will revert to the regular limit pursuant to provision 7 of the Agreement, and any remaining accrued, unused Resolution No. 2010-029 N.C.S. Page 3 vacation leave in excess of the regular accrual limit pursuant to provision 7 of the Agreement will cease to exist and have no cash value." d. Anew provision 1 1 (c) (1) is added to read: "EMPLOYEE shall receive a bank of 96 hours of special administrative leave, 32 hours of which is to be taken in each of the three, successive six-month periods starting December 28, 2009 and ending June 26, 201 1. Unused special administrative leave hours not taken by June 27, 201 1, December 26, 2010 and June 26, 201 1 do not carry forward, will cease to exist on June 26, 201 1, and have no cash value. Special administrative leave hours may be used flexibly in full or part-day increments, and may be used in lieu of vacation or sick leave." 2. CITY will review its revenue position with employee groups prior to June 30 and December 31, 2010 to determine whether new revenues will be received that would reduce the need for the employee salary concessions granted. Upon a determination that such revenues associated with certain new development or new increased tax .sources will be received, the base salary reduction specified in provision 1 (a) of this Amendment and the special administrative leave specified in provision 1 (d) of this Amendment will be reduced by l hour or the dollar equivalent for every $10,000 in new revenue to be received. 3. Notwithstanding anything to the contrary in this Amendment, if EMPLOYEE separates from City service between December 28, 2009 and June 26, 201 1, any leave balances subject to cash payment in accordance with the Agreement shall be paid at the rates in effect on December 27, 2009, or the salary rate at separation, whichever is higher. If EMPLOYEE .separates employment having used special administrative leave hours that exceed the total value of the base salary reduction pursuant to provision 6(a) of the Agreement as of the date of separation, the value of special leave hours taken that exceed the total value of the base salary reduction as of the date of separation will be deducted from the final pay check. This Amendment shall become effective December 28, 2009 and expire and cease to be of any effect on December 24, 2013 without further action by EMPLOYEE or CITY. Effective December 24, 2013 each term of the Agreement modified pursuant to this Amendment shall be the same as before this Amendment took effect, as if this Amendment never existed, subject to any amendments to the Agreement in accordance with provision 24(a) of the Agreement subsequent to the date of this Amendment. Except as modified by this Amendment, the Agreement remains unchanged and in full force and effect. Dated: EMPLOYEE By John C. Brown, City Manager Dated: CITY By: Pamela Torliatt, Mayor ATTEST: Claire Cooper Resolution No. 2010-029 N.C.S. Page 4