HomeMy WebLinkAboutResolution 2003-059 N.C.S. 03/24/2003Resolution No. 2003-059 ~J,~,S,
of the City of Petaluma, California.
APPOINTING MICHAEL BIERMAN CITY MANAGER,
APPROVING AGREEMENT FOR EMPLOYMENT OF CITY MANAGER,
AND AUTHORIZING MAYOR TO EXECUTE SAID AGREEMENT
WHEREAS, Michael Bierman was appointed to the position of Interim City Manager
effective August 19, 2002; and,
WHEREAS, the City Council desires to appoint Michael Bierman as Petaluma City
Manager; and,
WHEREAS, the City Council and Michael Bierman desire to agree to an employment
agreement outlining the terms of the employment, compensation and benefits relating to the
position of City Manager; and,
WHEREAS, Michael Bierman desires to accept employment as the City Manager of the
City of Petaluma.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby appoints Michael Bierman City Manager of the City of Petaluma.
BE IT FURTHER RESOLVED that the City Council of the City of Petaluma hereby
approves the AGREEMENT FOR EMPLOYMENT OF CITY MANAGER, a copy of which is
attached as Exhibit A.
BE IT FURTHER RESOLVED that the City Council of the City of Petaluma hereby
authorizes the Mayor to execute said AGREEMENT FOR EMPLOYMENT OF CITY
MANAGER on the City's behalf.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a (Regular) (Adjourned) (Special) meeting
on the 2.4.`h.......... day of March , 20 03, by the t
following vote: ••••••••• ••~ •••••••••• •Y••••••••
i Attorne
AYES: Canevaro, Mayor Glass, Harris, Healy, Moynihan, Vice Mayor O'Brien, Torliatt
NOES: None
ABSENT: None
ATTEST: .......................... ............ .... .. ..... .................... .... .. ........ ' • .. ............
City Cl rk Mayor
Council File ...................................
Res. No. ....._~.Q.Q~r.O.S~......_N.C.S.
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Exhibit A
AGREEMENT FOR EMPLOYMENT OF CITY ~VIAiVAGER
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This Agreement is made and entered into this ~~ day of ~(.f~C~w'
2003, by and between the CITY OF PETALUMA ("the C1TY"), a charter city, and
MICHAEL BIERMAN ("BIERMAN"): This Agreement (the "Agreement") shall have an
effective date of April 1, 2003 ("Effective Date"). In consideration of the mutual
covenants contained herein, the parties agree as follows:
WHEREAS, City desires to employ the services of BIERMAN as the City
Manager for CITY; and
WHEREAS, it is the desire of .the Petaluma C'ity.Council (the governing board of
CITY) to provide certain benefits,.. to establish certain conditions of employment and to
set working conditions of BIERMAN; and
WHEREAS, BIERMAN desires to accept employment as City Manager of CITY;
and
NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties agree as follows:
Appointment. of City Manager:
The City Council of the CITY hereby appoints BIERMAN to the position of City
Manager for the Petaluma, California.
2. Term ofAgreement:
The term of this Agreement shall be from the Effective Date for a period of five
(5) years or until terminated by either party in accordance with the provisions of
paragraph 5.
The parties to this Agreement may agree to extend or amend the term of this
Agreement in writing. Should either party desires to extend the term of this Agreement,
either party shall provide written notice to the other party 180 days prior to the expiration
of the term of this Agreement. Upon receipt of said notice the parties shall commence
discussions and negotiations, provided that there is no obligation on the parties to agree
to any extension and any such extension agreed upon by the parties must be in writing.
3. At-Will. Employment:
BIERMAN. is an at-will employee who shall serve at the pleasure of the City
Council. The terms of the CITY's Personnel Rules, Policies, Procedures, Ordinances or
Resolutions shall not apply to BIERMAN, and nothing in this .agreement is intended to,
Agreement for Employment of City Manager Page 1 of 9
(Between BIERMAN and City of Petaluma)
Reso, No. 2003-059 N.C.S.
or does, confer upon B.I,ERMAN any right to any property interest in continued'
employment, or any due process right to a hearing before or after the decision to
terminate his employment for good cause.
Nothing; in this agreement shall prevent, limit or otherwise .interfere with the right
of BIERMAN to resign atany time from h'is.positon with CITY, subject only to the
provisions set forth in 'section 5 of this agreement.
4. Duties:and Responsibilities:
a. B1'ERMAN shall commence his duties on or before April 1, 2:003.
b. BIERMAN shall perform the functions and duties specified under the laws
of the State of Ca_lifo"rnia, the. Petaluma City Charter and the-Petaluma Municipal Code,.
and the Ord;riances and Resolutions of the CITY, a'nd °such other duties and functions
as the City Council may from time-to-.time.: assign; BIERMAN shall serve as the City
Manager of the CITY, and he shall, be vested with the powers., duties and
responsib`ilifies set forth, in the Petaluma City Charter and Petaluma. Municipal Code and
California law. '
c. ' BIERMAN agrees to devote h'is productive time, ability a_ntl attention to the
CITY's business during the term of this Agreement. BLERMAN shall not hold
secondary employment, .and shall be employed exclusively by the CITY.. However, the
CITY recognizes hat B1ERMAN is expected to devote necessary time outside normal
office hours to business of the CITY. BIERMAN shall be allowed to.take reasonable
time off for such work, as he shall deem appropriate during normal office hours. As an
exempt employee, BIERMAN shall not receive overtime or extra compensation for work
performed outside normal business hours.
5. Termination of'Employment and Severance:
a. BIERMAN may terminate this Agreement, with or without cause,; by giving
the C1TY sixty (60) days written notice in advance of termination unless the parties
agree otherwise. During. the notice period, all ffie rights and obligations of ;the parties.
under this Agreerent shall remain in full force and effect BLERMAN wills not receive any
severance pay if BIERMAN's resignation is solely voluntary on BiERMAN's part.
b, The City .Council may terminate this. Agreement,. with or without cause.
City Council shall: give BIERMAN a minimum sixty (60) days wrifiten notice prior to
terminating BLERMAN as City Manager, provided however'that if BLERMAN 'is
terminated for cause as defined in this agreement, the sixty (60) day written: notice`
requirement shall not apply and BIERMAN may be terminated effective immediately
upon written notice.
c, If the, CJTY discharges BIERMAN'without;cause during~the term of this
Agreement and BIERMAN is willing and able to perform his duties under'this
Agreement, then BLERMAN shall be entitled to a severance payment equal to the
Agreement for Employment,of City Manager Page 2 of,9
(Between BIERMAN and Cify of Petaluma) =
Reso. No. 2003-059 N.C.S.
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annual compensation package amount'of:$1'95.,.00.0.-This provision will not apply in the
event that CITY discharges BIERMAN for cause; in which case BIERMAN will not be
entitled to any severance payment or continuation of benefits. The determination of
whether there is good cause for termination shall be in the sole discretion of the City
Council.
d. For purposes of this agreement,, cause shall. mean: (1) willful and repeated
failure to perform the duties of City Manager; (2) conviction. of an employment related
criminal act; (3) conviction of a felony; or (4) malfeasance materially related to the job.
6. Compensation:
CITY agrees to pay BIERMAN for his services tendered pursuant hereto an
annual compensation package of $195,000.00, to be divided at option of BIERMAN to
the extent allowed by law, into. annual base salary, BIERMAN's share of PERS, ICMA-
RC deferred compensation, .and payments for health, dental and vision insurance.
The payment schedule shall be payable in installments at the same time as the
other management employees of CITY are paid.
In addition, CITY may increase said compensation package of BIERMAN in such
amounts and to such extent as the Council may determine that is desirable to do so on
the basis of any annual salary review of BIERMAN.
In the event that. CITY, at any time during the term of this agreement, reduces the
salary or other financial benefits of BIERMAN in a greater percentage than applicable
across the board reduction for all employees of :CITY, or in the event CITY refuses,
following written notice, to comply with any other provision benefiting BIERMAN herein,
or BIERMAN resigns following a formal action by the Council suggesting that BIERMAN
resign, then in that event BIERMAN may, at his option, be deemed to be "terminated" as
of the date of such reduction or such refusal to comply.
7. Disability:
If BIERMAN is permanently disabled or otherwise unable to perform his duties
because of sickness, accident, injury, mental incapacity or health for a period of six
successive weeks beyond any accrued sick leave, or for forty (40) working days over a
sixty (60) working day period, CITY shall have the option. to terminate this agreement.
Termination. pursuant to this provision shall not subject CITY to payment of severance
benefits as specified "in Section 6(c).
8. Moving and Relocation Expenses:
BIERMAN shall be reimbursed, or CITY may pay directly, for the expenses of
packing and moving Bl'ERMAN, BIERMAN's family and BIERMAN's personal property
from Columbia,. South Carolina. to Petaluma, California with said payment or
reimbursement not to exceed the sum of $1.5,000.00, which shall include unpacking,
Agreement for Employmen4'.of City Manager - Page 3 of 9
(Between BIERMAN and City of Petaluma)
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any storage costs necessary, and in urance charges.
9. Housing Assistance:
CITY agrees to loan funds specifically designated as housing assistance fo
BIERMAN. The total amount to be loaned will be $100,000.00 upon BIERMAN's
selection of statable housing within the CITY's boundaries. This housing loan will be
forgiven and considered compensation as taxab.fe wages to BIERMAN based on the
following schedule of completed' employment:
Third .year employment (year ending 2006): 25% or $25;Q00.
Fourth year employment (year ending 2007): 25% or $25;000.
Fifth year employment (year ending 2008),: 50% or $50,000.
At the designation of BIERMAN, a portion of all of the remaining 50% or $50,000
may be considered deferred compensation..and applied in not more than'two
incremental amounts{i.e., year ending 2008 and 20D9).
The loan shall be represented. by a promissory note, shall. be secured by,a deed
of trust to the `;real property purchased and subordinate only to a purchase money first:
deed of trust and such other liens. and encumbrances. as City, in its absolute discretion,
may approve. The form of promissory note and deed of trust shalt be subject, to City's
approval, shall be executed by BIERMAN and his spouse and. shall include the fojlowing
items:
(a) The loan shall not' bear interest for the first five years.
(b) The loan shall be forgiven in the amount to be considered. as
compensation as taxable'. wages to BIERMAN based on the above
schedule and if BIERMAN is an employee of CITY.
(c) Should BIERMAN's employment be terminated, either by CITY or
BIERMAN, the remaining.balance of said loan shall `b'e alf due and
payable in full five years after the date bf termination but may be prepaid
without penalty in whole or' in part. at an,y time before the due date.
(d) The loan obligation shall be stabject-to acceleration by CITY at
CITY's election in the event of a sale. or conveyance of the reap property in
which ease the loan obligation'. shall become immediately due and payable
in full unless the balance of the loan is invested in a home within the;
CITY's boundaries and subject to a terms of a promissory note and deed
of trust agreed upon by the parties.
The provisions herein-are-subject#o any and all Internal Revenue Service or
California Franchise Tax Board laws and regulations. C1TY makes no representations
Agreement for Employment of City Manager Page 4; of 9
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Reso..No.2003.=059' N.C.S:-
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to BIERMAN as to the appropriateness of said schedule.
10. Automobile:
BIERMAN's duties require that he shall have the exclusive and unrestricted use
at all times during his employment with CITY an automobile provided to him by CITY..
CITY shall. be responsible for paying for liability, property damage and comprehensive .
insurance with C1TY's currently existing coverage, and for the purchase, operation,
maintenance, repair and regular replacement of said. automobile. BIERMAN may
supplement CITY insurance coverage with this own personal insurance at his cost.
11. Vacation, Sick and Holiday Leave:
(a) As an inducement to BIERMAN to become City Manager, at signature
hereof, BIERMAN shall be credited with ten (10) days of vacation leave and five (5)
days of sick leave plus any accrued vacation and sick leave earned during the interim
assignment. BIERMAN shall accrue over time, and have credited to his personal
account, vacation at the rate of one and a quarter days per month up to a maximum of
three (3) weeks per year,
(b) Sick leave shall accrue and be credited to BIERMAN's personal account
as with other department directors.
(c) Administrative leave shall be credited to BIERMAN's account as with other
department directors and pro-rated for the balance of the current fiscal year.
(d) Holidays shall be credited to BIERMAN's account as with other
department directors.
12. Disability, Health and Life Insurance:
(a) CITY agrees to purchase and to pay during. the term of this agreement,
acquired premiums on term life insurance policies .equal in amount to one and one-half
(1 %2) times the amount of the annual compensation package of BIERMAN described in
Section 6.
(b) CITY agrees to provide medical, dental and vision benefits. Payments for
premiums are included in the amount of BIERMAN's annual compensation package as
described in Section 6.
(c) CITY agrees to put in force and make required premium payments for the
group disability plan. currently in place by the CITY.
13. Retirement:
CITY agrees to execute ail necessary agreements provided by ICMA Retirement
Corp. ("ICMA-RC") for BIERMAN's continued participation in said ICMA-RC retirement
Agreement for Employment of City Manager Page 5 of 9
(Between BIERMA(V and City of Petaluma) .
Reso. No. 2003-059 N.C.S.
plan and agrees to pay an, amount designed by BIERMAN and.is allowed by, law into the
ICMA-RC on BIERMAN's behalf in an equal proportionate. amount: each pay period, acid
to transfer ownership to succeeding employers upon; BIERMAN's resignation or
termination. The amounts paid °are ihc,luded in the amount of BIERMA'_N's annual
compensation package described in Section 6.
14. Dues And Subscriptions:
Subject to budgetary approval by the CITY,' CITY agrees to pay for professional
dues and subscriptions of BIERMAN necessary for his continuation and full participation.
in national, regional, state- and local associations and organizations .necessary and
desirable for his continued professional participation, growth and ..advancement and for
the good of CITY.
15. Professional Development:
(a) Subject to budgetary approval by CITY, CITY agrees to pay for, fo the
extent allowed byelaw, travel and subsistence expenses of BIERMAN for professional
official travel, meetings and occasions adequate to continue the professional'
development of BIERMAN and to .adequately pursue necessary official functions for
CITY, ncluding but not limited to ICMA.annual conference, the State League of
Municipalities, and such other national, regi_onal;, state and local-governmental groups
and committees thereof.uvhich BIERMAN serves as a member.
(b) Subject to budgetary approval by CITY, CITY agrees to pa,y for, to the
extent allowed .by law; for travel :and. subsistence expenses of BIERMAN for short
courses;, institutes and seminars that are necessary for his professional development
and for'the good of CITY.
16. General Expenses:
CITY recognizes that certain expenses of a, non;: personal and ,generally job-
affiliate nature are incurred by BIERMAN and hereby agrees to reimburse or to pay said
general expenses, and CITY's Finance Director is hereby authorized to disburse such
monies upon receipt of duly executed expenses of petty cash vouchers, receipts.,.
appeovai is or personal affidavits to the extent allowed by law and subject to budgetary
17. Bonding:
CITY shall, bear the full cost ,of any fidelity or other bonds required of BIERMAN
under any law or ordinance.
18. Continuity:
I'n the-eventof ach'a'nge of.the`~'elected representation of the.City Council, there:
wilt be a'sixty (60) day period when the City Council can take no acfio,n regarding the
Agreement for Employment;of City Manager. Page 6 of-9
(Between BIERMAN and Gity of Petaluma) ~ "
- Reso. No. 2003=059.N.C.S.
provisions of BIERMAN's contract, unless both parties agree or if action is for cause.
19. Other Terms and Conditions of Employment:
The City Council, in consultation with BIERMAN shall fix any other terms and
conditions of employment, as it may determine from time to time, relating to the
performance of BIERMAN, provided such terms and conditions are not inconsistent with
or in conflict with the provisions of this agreement, the Petaluma City Charter, the
Municipal Code or any other applicable state or federal law.
20. No Reduction of Benefits:
CITY shall not at any time during the term of this agreement reduce the salary,
compensation or other financial benefits of BIERMAN, except to the degree of such a
reduction across the board for employees of CITY.
21'. Indemnification:
CITY shall defend, hold harmless and indemnify BIERMAN against any tort, civil
rights, personnel, discrimination, professional liability claim or demand or other legal
action, whether groundless or otherwise, arising out of an alleged act of omission
occurring in the performance of the BIERMAN's duties in accordance with the
provisions of California Government Code Section 825 and provide a defense in
accordance with Government Code Section 995. ~BIERMAN's conviction for any felony
or should he act in a~ manner described in Government Code Section 825.6 shall be a
basis for City's exemption of this indemnification. CITY may compromise and settle any
such claim or suit and pay the amount of any settlement or judgment there from.
22. Notices:
Notices pursuant to this Agreement shall be in writing given by deposit in the
custody of the United States Postal Service, first class postage prepaid, addressed as
follows:
a. The CITY:. Mayor and City Council
11 English Street
Petaluma CA 94952
b. BIERMAN: Michael Bierman
11 English Street
Petaluma CA 94952
Alternatively, notices required pursuant to this Agreement may be personally
served in the same manner as is applicable to civil judicial process. Notice shall be
deemed given as of the date of personal service or as of the date of deposit of such
written notice, postage prepaid, with the United States Postal Service.
Agreement for Employrrient of City Manager Page 7 of 9
(.Between BIERMAN and City of Petaluma)
Reso. No. 2003-059 N.C.S.
23. Performance Evaluations`
(a) City Council shall review and eualuate the performance of BIERMAN at
least once annually in advance of the adoption of the annual operating budget. Said
review and evaluation shall be in accordance with specific criteria developed jointly by
CITY and B'IERMAN. Said. criteria.. may b,e added fo'or deleted from as the'Gity Council
may from time to time determine and in consultation with BIERMAN: Further, the Mayor
of CITY sha11 provide Bl'ERMAN wifih a 'summary written statement of the findings of the
.City Council and provide an adequate opportunity for B'PERMAN to discuss his
evaluation with City Council.
(b) Annually, the Gity Council and~BIERMAN shall define such goals and
performance objectives as they determine :necessary for the proper operation of CITY
and the attainment of the City Council's policy objectives and shall further establish a
relative priority among those various goals and objectives, said goals and objectives to
be reduced to writing. Said goals and objectives shall generally be attainable within the
time limitations as specified in the annual operating and capital budgets and
appropriations provided.
(c) In effecting the provisions ~of this section, the City Council and BIERMAN
mutually agree to abide by. the provisions of applicable law.
(d) BIERMAN will timely cause to be placed on the City Cou~eil agenda each
year a."closed session" for purpose of his performance evaluation..
24. Miscellaneous:
a. The text herein shall constitute the entire. Agreement between the parties.
This Agreement may -not be modified.,. except by written agreement executed by both
parties.
b. If any provision, or any portion thereof, .contained in this Agreement is held
unconstitutional, invalid or unenforceable,. the remainder of this Agreement,. or portion
thereof; .shall be deemed severable, shall not be affected and shall rem_ ain in full force
and effect.
c. This Agreement shall be governed by the laws of the State of California.,
~d. The parties agree that any ambiguity in this Agreement shall not be
construed or interpreted against, or in favor of, either party.
e. This agreement shah be binding upon and inure to the benefit of the heirs
at law and executors of BIERMAN,
Agreement for Employment of City Manager
(Between BIERMAN and City of Petal~~ma)
Page :8 of 9
Reso. No. 2003-059 N.C.S.
°~ ` .
DATED.:
~ ~a~ -03
DATED:
ATTEST:
~~
C ty CI rk
#622709
MICHAEL BIERMAN
CIT
bY~ ~ .~
David Glass
MAYOR
Agreement for Employment of City Manager Page 9 of 9
(Between BIERMAN and City of Petaluma)
Reso. No. 2003-059 N.C.S.