HomeMy WebLinkAboutStaff Report 4.A 08/01/2016DATE: August 1, 2016
TO: Honorable Mayor and Members of the City Counc'
FROM: John C. Brown, City Manager
Agenda Item #4.A
SUBJECT: Resolution Approving the Fourth Amended Employment Agreement with the City
Manager
RECOMMENDATION
It is requested that the City Council adopt the attached resolution approving the Fourth Amended
At -Will Agreement for Employment of the City Manager, and Authorizing the Mayor to execute
said Agreement.
BACKGROUND
The City Manager, City Attorney, and City Clerk report to the City Council, and are employed
pursuant to Employment agreements which dictate their compensation, benefits, and working
conditions.
In February 2008, the City Council approved an at -will employment agreement (the Agreement)
for the City Manager, effective April 1, 2008. The Agreement had a five year term ending March
31, 2013. The Agreement was amended in 2008 and 2009, to correct a provision, and to
implement a temporary (18 month) 3.1 percent pay cut associated with the 2009 -11 "furloughs ".
The Agreement was amended again in 2013 to extend the term until June 30, 2019. The
Agreement was most recently amended in February 2016 to delete references to the Unit 8
Compensation Plan and to instead specify all benefits. This was done to avoid potential conflicts
and to eliminate inconsistencies with applicable provisions of State law. Base salary has not
increased since the original Agreement went into effect in April, 2008.
With the exception of one bargaining unit, all of the City's represented employees negotiated and
received salary adjustments during the past 14 months. Those adjustments ranged from a total of
3 percent for a wage re- opener, to 4 percent with a wage re- opener in the third year of the contract,
depending on the bargaining group. The increases were effective at various times, depending on
when contracts were ratified, beginning in June 2015 and concluding with Unit 8, Department
Directors and Assistant City Attorneys, in March 2016. The group most closely related to the City
Manager, Unit 8, received a 4 percent adjustment in March 2016. Public Safety mid -level
managers received the same increase in January 2016.
A common component in all the salary adjustments granted this past year, reflecting one element
of the City Council's Negotiating Principles, was a `give- back ": something of monetary value
given by bargaining units to the City to help offset the cost of a salary adjustment. Units 8 and 10
exchanged the benefit of cashing out 20 hours -worth of Administrative Leave at the end of each
fiscal year as part of their give- backs. In 2015, Unit 8 voluntarily agreed to cap the City's
obligation for their medical insurance at January 2014 levels. In addition, merit adjustments — their
version of salary step advancements - were withheld from Department Directors and other Unit 8
employees between 2008 and 2016. This budget reduction was not implemented for any other
represented unit in the City. Virtually every one of these employees was hired during this period,
and had they been members of any other bargaining unit would have received step increases of 5
percent each year for up to five years. The value of these savings significantly offset the cost of
their 2016 salary increase.
DISCUSSION
The Agreement dictates each year, prior to adopting the budget, the City Council will evaluate the
City Manager's performance. The Agreement further provides the City Council, at its discretion,
can grant a merit -based adjustment, a cost -of- living adjustment, or both. The City Council has
regularly evaluated my performance since 2008. Given the City's financial condition, however,
salary adjustments have not been requested, considered, or granted with any previous evaluation.
This year, the Council evaluated my performance in the time between April and June 2016. An
evaluation was shared with me on June 20, 2016 and a work plan upon which, in part, my
performance will be evaluated in 2017, was thoroughly discussed.
A Council subcommittee, acting as the Council's labor negotiators, met with me in late June to
discuss compensation and proposed changes to the Agreement including those to facilitate
compensation give- backs.
The subcommittee discussed changes with the full Council in July, and came to agreement with
me on the changes included in the Fourth Amended At -Will Agreement, incorporated as Exhibit A
to the attached resolution. Most changes in the document are minor, and can be characterized as
clarifications of existing terms and conditions. The most substantive changes are found in Sections
2, 9, 13, 15, and 16, and in Section 10 of Exhibit 1 to the Agreement. Section 2, Term, extends the
Agreement to anew expiration date of August 31, 2021. Section 9, Compensation, provides for a
four (4) percent salary increase, effective August 1, 2016; Section 13, Vacation, eliminates
unlimited accrual and establishes an accrual limit of 600 hours of vacation leave. Section 15,
Administrative Leave, reduces the amount of pay -out at June 30th the Manager can receive
annually from 40 hours to 20 hours, which tracks a giveback made by other Management
employees. Changes in Section 16 now allow for carry -over of unused floating holidays to a
subsequent fiscal year. And finally, the annual dental benefit provided by Section 10 of Exhibit 1
to the Agreement, Dental Insurance, is increased from $1,500 to $2,000. This is the same increase
provided by the City Council to other employee groups. A redlined copy of the document showing
all changes is provided as Attachment 3 to this report.
FINANCIAL IMPACTS
The annual cost of the salary adjustment provided in the Fourth Amended Agreement is $8,320.
Total annual cost, including salary and benefits is $10,787. The value of the Administrative Leave
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give back is $2,000 per year. I also voluntarily accepted the cap on the City's share of Medical
Insurance beginning in 2015, which is currently saving the City $420 per year. Capping Vacation
accrual is cost avoidance, as it limits the City's exposure to payouts, so no monetary value is
attributed to that in this discussion. Between 2009 and 20151 also voluntarily assumed the cost of
professional organization dues, which saved the City $9,100; declined to accept the hybrid vehicle
offered by the City in my original Agreement, saving the City approximately $25,000; and
typically do not utilize the mileage reimbursement provision of the 2013 Agreement to
compensate for using my personal vehicle for City business. Combined, the monetary value of
these give -backs fully offsets the cost of the proposed salary and benefits adjustment into fiscal
year 2020/21.
ATTACHMENTS
1. Resolution
2. Exhibit A to Resolution — Fourth Amended At -Will Agreement
3. Redlined Fourth Amended At -Will Agreement
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ATTACHMENT 1
Resolution No. 2016- N.C.S.
of the City of Petaluma, California
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
APPROVING THE FOURTH AMENDED AT -WILL AGREEMENT FOR
EMPLOYMENT OF CITY MANAGER AND AUTHORIZING THE MAYOR TO
EXECUTE THE AGREEMENT
WHEREAS, CITY and City Manager (the Parties) entered an At -Will Agreement for
Employment of City Manager dated February 7, 2008 and effective April 1, 2008; and,
WHEREAS, that Agreement was amended for the first time on May 21, 2008; and
WHEREAS, the First Amended Agreement was amended in March 2010 to implement a
temporary pay reduction taken by the City Manager as part of a Citywide program of pay
reductions and furloughs that were effective December 28, 2009 through June 26, 2011; and
WHEREAS, the Parties negotiated and agreed to amend the Agreement to extend the
Expiration Date and certain other provisions of the Agreement; and
WHEREAS, the Second Amended Agreement, which extends the Expiration Date to June
30, 2019, was approved by the City Council on March 14, 2013; and
WHEREAS, the Third Amended Agreement, which deleted references to the Unit 8
Compensation Plan and instead specified the benefits granted to the City Manager to avoid
potential conflicts and inconsistencies with applicable provisions of the State law, was approved
by the City Council on February 1, 2016; and
WHEREAS, the Parties desire to amend the Agreement to provide for clarification of
certain provisions, to extend the Expiration Date, to provide for an increase in annual
Compensation and Dental Benefits consistent with those granted to some other employee groups,
and to modify Administrative Leave, Vacation Leave, and Health Benefits provisions to provide
certain compensatory cost reductions; 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 the
Fourth Amended At -Will Agreement for Employment of City Manager attached as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby approves the Fourth Amended At -Will Agreement for Employment of City Manager,
attached as Exhibit A and incorporated herein by reference.
BE IT FUTHER RESOLVED that the City Council of the City of Petaluma hereby
authorizes the Mayor to execute said Agreement.
S
EXHIBIT A
FOURTH AMENDED AT -WILL
AGREEMENT FOR EMPLOYMENT OF CITY MANAGER
This Amended Agreement (Agreement) is made and entered into this day of ,
2016, by and between the City of Petaluma, California ( "the CITY "'), a charter city, and John C.
Brown ( "City Manager "). This Agreement shall have an effective date of August 1, 2016
( "Effective Date "). The parties agree as follows:
1. Appointment of City Manager:
The Petaluma City Council appointed John C. Brown as City Manager of the City of
Petaluma beginning on April 1, 2008. The City Council of the CITY hereby
acknowledges the continuing appointment of John C. Brown as City Manager of the City
of Petaluma, California.
2. Term:
a. Duration and Effective Date. The term of this Amended Agreement (Agreement)
shall commence on August 1, 2016 and, if not terminated earlier in accordance
with section 5, this Agreement will expire on August 31, 2021. ( "Expiration
Date ").
b. Extending the he Expiration Date. The parties to this Agreement may agree to
amend the Expiration Date in writing. Should either party desire to extend the
Expiration Date, written notice must be provided to the other party 180 days prior
to the Expiration Date. Upon written receipt of said notice, the parties shall
commence discussions and negotiations. The parties have no obligation to agree
to extend the Expiration Date. Any extension of the Expiration Date must be in
writing in accordance with section 29 (a) of this Agreement.
3. At -Will Employment:
City Manager is an at -will employee in accordance with California Labor Code section
2922, and shall serve at the pleasure of the City Council. The terms of CITY's Personnel
Rules, Policies, Procedures, Ordinances and Resolutions shall not apply to City
Manager, and nothing in this Agreement is intended to, or does, confer upon City
Manager any right to or expectation of any right or property interest in continued
employment. If a decision to terminate City Manager's employment is made by the City
Council, whether with or without cause, the City Manager shall be entitled to only that
due process as is provided by City Charter, ordinance, or this Agreement. Nothing in this
Agreement shall prevent, limit or otherwise interfere with the right of City Manager to
resign at any time from his position with CITY, subject to section 5(a) of this Agreement.
4. Duties and Responsibilities:
a. City Manager shall continue his duties under this Agreement on August 1, 2016.
b. City Manager shall serve as the City Manager of the City of Petaluma, and shall
be vested with the powers, duties and responsibilities and perform the functions
and duties specified under the laws of the State of California, the Petaluma City
Charter and the Petaluma Municipal Code, and the Ordinances and Resolutions of
the CITY and other applicable law, and such other duties and functions as the
City Council may from time to time assign.
C. City Manager agrees to remain in the exclusive employ of CITY, and devote his
full productive time and attention to CITY's business, during the term of this
Agreement.
d. The CITY recognizes that City Manager is expected to devote necessary time
outside normal office hours to business of the CITY. City Manager shall be
allowed to take reasonable time off for such work, as City Manager shall deem
appropriate during normal office hours. As an exempt employee, City Manager
shall not receive overtime or extra compensation for work performed outside
normal business hours. City Manager will, however, receive administrative leave
in accordance with Section 15.
5. Termination of Employment:
a. City Manager may terminate this Agreement, with or without cause, by giving the
CITY a minimum of sixty (60) days written notice in advance of termination,
unless the parties agree otherwise. During the period following notice of
termination and until the termination becomes effective, all the rights and
obligations of the parties under this Agreement shall remain in full force and
effect. City Manager will not be entitled to receive any severance pay if his
resignation is voluntary.
b. The City Council may terminate this Agreement, with or without cause. City
Council shall give City Manager a minimum sixty (60) days prior written notice
of termination provided, however, that if City Manager is terminated for cause, as
defined in this Agreement, the sixty (60) day written notice requirement shall not
apply and City Manager may be terminated with notice as provided in Section 5
(c).
C. Prior to terminating this Agreement for cause, pursuant to Section 7, the City
Council shall give City Manager at least ten (10) days prior written notice of the
alleged cause for termination. Within the ten -day period, but not earlier than five
days after the notice has been given, the City Council shall meet with City
Manager in closed session and give City Manager an opportunity to address the
City Council regarding the alleged cause for termination. City Manager may also
choose to have allegations brought against him heard in open session in
accordance with California Government Code Section 54957 (b) (2). After
hearing City Manager's response to the allegations, the City Council shall make a
decision as to whether to terminate the Agreement and shall inform City Manager
in writing of its decision.
d. Upon separation from CITY for any reason, City Manager will be paid for all
accrued and unused vacation, administrative leave, and floating holidays, subject
to the limitations imposed elsewhere in this Agreement.
6. Termination Without Cause:
a. For the purpose of this Agreement, termination without cause shall be deemed to
occur when:
The majority of the governing body votes to terminate the City Manager at
a duly authorized public meeting without cause, as defined in Section 7 of
this Agreement.
2. The City Council, the citizens or the Legislature acts to amend any
provisions of the City Charter, codes, or other enabling legislation
pertaining to the role, powers, duties, authority, or responsibilities of the
City Manager's position that substantially changes the form of
government. City Manager shall have the right to declare that such
amendments constitute termination without cause.
3. The City Council reduces the base salary, compensation or any other
financial benefit of the City Manager (unless it is applied in no greater
percentage than the average reduction of all department directors). Such
action will be regarded as a termination without cause.
4. Material breach of this Agreement is declared in writing by City Manager
specifying the reasons therefore, but only if CITY has not cured such
declared material breach within thirty (30) days of receipt of notice of the
declared material breach.
7. Termination for Cause:
a. For purposes of this Agreement, cause for termination by CITY means:
Willful and repeated failure to perform the duties of City Manager or other
material breach of this Agreement declared in writing by CITY by notice in
accordance with Section 29 and not cured within thirty days of receipt of
notice of the declared material breach;
2. Conviction of City Manager for an employment related criminal act;
3. Conviction of City Manager for a felony; or
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4. A finding by a court, jury, State or Federal Attorney General, the Fair Political
Practices Commission, or any successor agency, that City Manager engaged in
intentional or negligent misconduct in relation to the performance of City
Manager's duties.
b. Pursuant to Government Code Sections 53243, 53243.1, and 53243.2, if City
Manager is convicted of a crime involving an abuse of his office or position, all of
the following shall apply:
1. If City Manager is provided with administrative leave pay pending an
investigation, City Manager shall be required to fully reimburse City such
amounts paid.
2. If CITY pays for the criminal legal defense of City Manager, City
Manager shall be required to fully reimburse CITY such amounts paid.
3. If this Agreement is terminated, any Severance Pay and Severance
Benefits related to the termination that City Manager may receive from
CITY shall be fully reimbursed to CITY or void if not yet paid to City
Manager.
For purposes of subsection 7 (b), abuses of office or position means either
A. an abuse of public authority, including waste, fraud, and violation
of the law under color of authority; or
B. a crime against public justice, including but not limited to, a crime
described in Title 7 (commencing with Section 92) of Part 1 of the
California Penal Code.
8. Severance Pay:
a. If CITY terminates City Manager during the term of this Agreement seven
months or more prior to the Expiration Date and without cause in accordance with
Section 6, then City Manager shall be entitled to a severance payment equal to
seven (7) months of base salary at the rate in effect at the time of termination, plus
CITY's share of the cost of continuing health, dental, and vision insurance for
City Manager and all dependents as provided in Section 18(b) for seven (7)
months. At City Manager's election, and pursuant to City Manager's written
instructions at the time of severance, severance pay shall be paid either in a lump
sum cash payment within thirty (30) days of the date of termination, or in equal
monthly payments. Should City Manager elect to receive severance pay in equal
payments, the number of such monthly payments shall not exceed seven (7).
b. If CITY terminates City Manager with less than seven months remaining until the
Expiration Date and without cause in accordance with Section 6, then the
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maximum severance City Manager may receive shall be an amount equal to City
Manager's monthly salary multiplied by the number of months left on the
unexpired term of the Agreement, plus CITY's share of the cost of continuing
health, dental, and vision insurance for City Manager and all dependents as
provided in Section 18 (b) for the same duration of time.
C. All payments required under Sections 8 (a) and 8 (b) are subject to and shall be
interpreted to comply with the limitations set forth in Government Code Section
53260. CITY's share of the cost of Health, Dental and Vision benefits shall
continue for the same duration of time as covered in the settlement or until the
City Manager finds other employment, whichever occurs first.
d. If CITY terminates City Manager for cause, he will not be entitled to any
severance payment. The determination of whether there is cause for termination
shall be consistent with Section 7.
9. Compensation:
a. Base Salary. City agrees to pay City Manager an annual base salary of $216,320,
payable in installments at the same time that the other employees of the CITY are
paid.
b. Merit Adjustment. CITY may increase City Manager's compensation. in such
amounts and to such extent as the City Council may determine is desirable on the
basis of any annual performance review of City Manager.
C. Cost of Living Adjustment. CITY shall consider, on an annual basis, cost of
living adjustment to City Manager's compensation. Such adjustments shall be
separate of any adjustments granted pursuant to Section 9 (b) of this Agreement.
d. In effecting this section, City and City Manager mutually agree to abide by the
provisions of applicable law.
10. Deferred Compensation:
a. 457 Plan. CITY shall make available to City Manager the City's Deferred
Compensation Plan with ICMA Retirement Corporation (RC) and agrees to pay
an amount designated by City Manager and allowed by law into the ICMA -RC on
City Manager's behalf in an equal proportionate amount each pay period, and to
transfer ownership to succeeding employers upon City Manager's resignation or
termination.
b. CITY agrees to maintain all necessary agreements provided by ICMA -RC for
City Manager's continued participation in said ICMA -RC plan.
11. Disability:
If City Manager is permanently disabled or otherwise unable to perform his duties
because of sickness, accident, injury, mental incapacity or health for a period of ninety
(90) successive days beyond any accrued sick leave, CITY shall have the option to
terminate this Agreement. Upon termination pursuant to this provision, CITY shall have
no obligation to pay severance benefits pursuant to Section 8.
12. Use of Automobile:
City Manager shall have the use of CITY -owned vehicle to conduct CITY business. If
such vehicle is not available, City Manager may elect to use his privately owned vehicle,
in which case City shall reimburse City Manager for actual business travel at the
maximum amount per mile then allowed by the Internal Revenue Service.
13. Vacation Leave:
a. As of the Effective Date of this Agreement, City Manager has a balance of 543.22
hours of accumulated Vacation leave. City Manager shall continue to accrue
vacation hours at the rates specified in the table below. City Manager shall not
accrue vacation time in excess of 600 hours.
Years of Service
Vacation Accrual (hrs.)
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120
10
128
11
136
12
144
13
152
14
160
15
168
16 or greater
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b. Vacation leave shall be taken at times and in amounts selected by the City
Manager, taking the operational needs of the City into account.
C. Fixed holidays shall not be charged as vacation leave when vacation and
holiday(s) coincide.
14. Sick Leave:
a. Eli ig bili1y. Sick leave shall be used only in case of personal illness, disability or
the illness or injury of City Manager's family members, which requires City
Manager's attention. The term family members shall include: spouse, children,
parents, spouse's parents, brothers, sisters or other individuals whose relationship
to the employee is that of a dependent or near dependent.
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b. Accrual. As of the Effective Date of this Agreement, City Manager has a balance
of 691.91 hours of accumulated Sick leave. Sick leave shall continue to accrue
and be credited to the City Manager's personal account at the rate of eight (8)
hours for each month of continuous service.
C. Retirement Payout. In the event of the death or retirement at any time during the
term of this Agreement, City Manager may place all sick leave hours into the
CalPERS sick leave conversion benefit. Upon completion of ten (10) or more
continuous years of service with the City, and upon death or retirement, City
Manager shall be paid or shall receive to his benefit fifty percent (50 %) of his
accumulated but unused sick leave. City Manager may elect not to receive this
benefit and instead place all sick leave hours into the Ca1PERS sick leave
conversion benefit, or City Manager may do a combination of both, to receive a
payout of up to fifty percent (50 %) of his accumulated but unused sick leave with
the balance placed into the Ca1PERS sick leave conversion benefit.
Administrative Leave:
City Manager shall be credited with ninety six (96) hours of administrative leave each
fiscal year.
a Carry Forward of Leave. City Manager may carry forward up to forty (40) hours
of unused administrative leave into the next fiscal year. City Manager may not
maintain balances of more than one hundred and thirty six (13 6) hours in any
fiscal year. Carry forward administrative leave may only be taken as paid time
off, has no cash value, and shall not be included in the totals subject to payment
under Section 5 (d).
b. Annual Payment for Unused Leave. City Manager shall receive payment for up
to twenty (20) hours of unused administrative leave at the end of each fiscal year.
Payment shall be at the employee's base pay rate as of June 30. Payment shall be
made on the last pay period of the fiscal year.
16. Holidays and Holiday Leave:
The City observes the following twelve (12) fixed -date holidays per year:
Independence Day
Labor Day
Columbus Day
Veterans' Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve
Christmas Day
New Year's Day
Martin Luther King Day
Presidents' Day
Memorial Day
a. Observance. The actual date of the observed holidays is determined by City
Council resolution each fiscal year. If participating in a 5/8 schedule, when a
holiday falls on a Saturday, that holiday will be observed on the prior Friday.
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When a holiday falls on a Sunday, that holiday will be observed on the following
Monday. Should this conflict with a Friday or Monday designated holiday, the
Friday or Monday holiday will occur on the preceding Thursday or following
Tuesday. If participating in a 4/10 schedule, when a holiday falls on a Friday or
Saturday, that holiday will be observed on Thursday. When a holiday falls on a
Sunday, that holiday will be observed on the following Monday. Should this
conflict with a Friday or Monday designated holiday, the Friday or Monday
holiday will occur on the preceding Wednesday or following Tuesday.
b. Floating Holidays. CITY shall provide City Manager one 8 -hour "Floating
Holiday" each fiscal year which may be taken at a time selected by City Manager,
subject to operational requirements of the City. The floating holiday will be added
to City Manager's bank of leave with the first payroll period each January during
the term of this Agreement. Any unused floating holiday leave remaining in City
Manager's leave bank at the end of a fiscal year may be carried forward to the
succeeding year.
17. Other Leaves:
a. Industrial Injury Leave:
1. Benefits shall be payable when City Manager's absence is due to
industrial injury as provided in California State Workers' Compensation
Law. During the first three (3) workdays when his absence has been
occasioned by injury suffered during his employment and he receives
Workers' Compensation benefits, he shall receive full pay. Following this
period, sick leave may be a supplement to the Workers' benefits provided.
Compensation is at his regular rate for a period not to exceed six (6)
months, or until such sick leave is exhausted, or the disability is abrogated,
or he is certified "permanent and stationary" by a competent medical
authority. The City shall pay him the regular salary, based on the
combination of the Workers' Compensation benefit plus sick leave.
2. Sick leave for industrial injury shall not be allowed for a disability
resulting from sickness, self - inflicted injury, or willful misconduct.
3. The City may, with City Manager's agreement, retire City Manager prior
to the exhaustion of accumulated sick leave, at which time all accrued but
unused sick leave shall be abrogated, subject only to the limitations
provided under this Agreement.
b. Bereavement Leave:
City Manager shall be granted up to thirty -two (32) hours of bereavement
leave in the event of death in his immediate family. For the purpose of
bereavement leave, immediate family shall mean spouse, qualified
domestic partner, father, father -in -law, mother, mother -in -law, brother,
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brother -in -law, sister, sister -in -law, child (including stepchildren), step-
parents, grandparents and grandchildren or person with whom City
Manager has a relationship in loco parentis. Up to an additional eight (8)
hours of accrued sick leave may be granted to supplement bereavement
leave.
2. In the event City Manager must travel more than three- hundred (300)
miles to attend a funeral or memorial service, an additional eight (8) hours
of bereavement leave shall be granted instead of the use of eight (8) hours
of sick leave.
C. Victims of Domestic Violence and Sexual Assault Leave:
The City of Petaluma provides appropriate leave, in accordance with California
Labor Code Section 230.
d. Election Officer Leave And Voting Leave:
eave:
When City Manager's actual work schedule otherwise would prevent him from
voting in any State, County, or General election, he may be granted up to two (2)
hours of paid time to vote, in accordance with Election Code 14000. City
Manager must provide the City with at least two (2) working days' written notice
that he will be taking time off to vote.
e. Leave Of Absence Without Pay:
CITY may grant City Manager a leave of absence without pay pursuant to State
and Federal Law. Good cause being shown by a written request, CITY may
extend such leave of absence without pay or benefits for an additional period not
to exceed six (6) months. No such leave shall be granted except upon written
request of City Manager setting forth the reason for the request, and the approval
will be in writing.
£ Jury Duty Leave:
If City Manager is summoned for jury duty, he shall be entitled to a leave of
absence with full pay for such period of time as may be required to attend the
court in response to such summons. City Manager may retain payment for travel
but shall make payable to the City any and all fees which he may receive in
payment for service as a juror. For Grand Juries this compensation shall not
extend beyond twenty (20) working days.
g. Family care and medical leave (FMLA & CFRAh
FMLA and /or CFRA Leave. CITY shall provide City Manager with
family and medical care leave as required by City policy, State and
Federal law and as specifically provided in the Federal Family and
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Medical Leave Act of 1993 (FMLA) and the California Family Rights Act
of 1993 (CFRA). City Manager will provide thirty (30) days advance
notice of leave, if possible.
2. FMLA and /or CFRA — Second Opinion. City Manager shall provide
CITY with a health care provider certification. CITY, at City expense,
may require a second opinion on the validity of the certification. Should a
conflict arise between health providers, a third and binding opinion, at
City expense shall be sought.
18. Disability, Health, and Life Insurance:
a. CITY agrees to purchase and to pay during the term of this Agreement, premiums
on term life insurance policies equal in amount to one and one -half 1 -1/2 times
the amount of the annual compensation package of City Manager described in
Section 9.
b. CITY agrees to provide and to pay the CITY's share of premiums for medical,
dental, and vision insurance for the City Manager and his dependents in
accordance with Exhibit 1. City Manager shall have the right to select medical,
dental and vision coverage from the plan options specified in Exhibit 1.
C. CITY agrees to have in force and make required premium payments for City
Manager's participation in the CITY's current group disability plan. Currently that
Plan is provided through CIGNA, and replaces 60% of annual earnings, to a
maximum of $3,000 per month after being disabled for sixty (60) days.
19. Retirement:
a. California Public Employees Retirement System. City has previously enrolled
City Manager into the California Public Retirement System, (PERS). City agrees
to make all the appropriate contributions on the City Manager's behalf, for the
employer share required. City Manager shall pay the entire contribution for the
PERS employee share required.
b. City Manager has continuously been employed with CITY since April 1, 2008,
and does and shall continue to participate in the 2% at 55 formula retirement plan
provided to Miscellaneous members, calculated at the single highest one -year
compensation.
C. The City's contract with PERS, for Miscellaneous members with the two percent
(2 %) at fifty -five (55) formula retirement plan, includes the following optional
benefits:
1. Third Level - 1959 Survivor's Benefit as provided in Section 21573 (April
5, 1999).
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2. Military Service Credit as provided in Section 21024 (January 1, 1992).
3. One -Year Final Compensation as provided Section 20042 (November 1,
1980).
4. Credit for Unused Sick Leave as provided in Section 20965 (November 1,
1980).
5. Cost of Living Allowance two percent (2 %) as provided by Section 21329
(April 1, 1971).
6. Retired Death Benefit of five- hundred dollars ($500.00) as provided in
Section 21620 (December 1, 1969).
7. Death Benefit Continues as provided in Section 21551 (January 1, 2000).
Prior Service Credit as provided in Section 20055 (January 1, 1950).
d. The City shall continue to defer that portion of the employee's contribution paid
to Ca1PERS through section 414(h)(2) of the Internal Revenue Code pursuant to
City of Petaluma Resolution 90 -363 N.C.S.
e. 401(A) Plan. The City of Petaluma shall contribute on behalf of City Manager
seven percent (7 %) of the compensation amount specified in provision 9(a) of this
Agreement, as such compensation may be amended from time to time, into the
City of Petaluma 401(A) Government Money Purchase Plan and Trust.
20. Dues and Subscriptions:
Subject to budgetary approval by the CITY, CITY agrees to pay for professional dues
and subscriptions of City Manager necessary for City Manager's continuation and full
participation in national, regional, state and local associations and organizations
necessary and desirable for CITY MANAGER's continued professional participation,
growth and advancement and for the good of CITY.
21. Professional Development:
a. Subject to budgetary approval by CITY, CITY agrees to pay for, to the extent
allowed by law, travel and subsistence expenses of City Manager for official
travel, meetings and events as necessary and appropriate to continue the
professional development of City Manager and to adequately represent CITY at
gatherings such as the ICMA annual conference, California League of Cities
meetings and conferences, and such other national, regional, state and local
governmental groups and committees thereof in which City Manager participates
as a representative of CITY.
15
b. Subject to budgetary approval by CITY, CITY agrees to pay for, to the extent
allowed by law, travel and subsistence expenses of City Manager for short
courses, institutes and seminars that are necessary for City Manager's professional
development and for the good of CITY.
22. General Expenses:
CITY recognizes that certain expenses of a non - personal nature are incurred by City
Manager for the benefit of the CITY in the course of performance of City Manager's
duties 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, statements or personal affidavits to
the extent allowed by law and subject to budgetary approval.
23. Bonding:
CITY shall bear the full cost of any fidelity or other bonds required of City Manager
under any law or ordinance.
24. Continuity:
In the event of a change of the elected representation of the City Council, there will be a
ninety (90) day period commencing upon the seating of new City Council members when
the City Council can take no action regarding the provisions of City Manager's contract,
unless both parties agree or the action is for cause.
25. Attorney Fees:
In the event of any suit or action by either party under this Agreement, the prevailing
party in such suit or action shall be entitled to reasonable attorney fees and costs to be
fixed by the court.
26. Reasonable accommodation:
In accordance with the California Fair Employment and House Act (FEHA) and the
Americans with Disability Act (ADA), CITY will reasonably accommodate any known
protected disability of City Manager.
27. Other Terms and Conditions of Employment:
The City Council, in consultation with City Manager, shall fix any other terms and
conditions of employment, as it may determine from time to time, relating to the
performance of City Manager, provided such terms and conditions are not inconsistent
with or in conflict with the provisions of this Agreement, the Petaluma City Charter, the
Petaluma Municipal Code or any other applicable state or federal law.
m
28. Indemnification:
a. CITY shall defend, hold harmless and indemnify City Manager 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
or omission occurring in the performance of the City Manager's duties in
accordance with the provisions of California Government Code Section 825 and
following as amended from time to time and provide a defense in accordance with
California Government Code Section 995 and following. Notwithstanding
anything to the contrary in this Agreement, CITY reserves the right to refuse to
provide a defense of City Manager for the reasons set forth in California
Government Code section 995.2 or other applicable provisions of law.
b. Following termination or expiration of this Agreement, for any reason, when City
Manager serves as a witness, advisor and /or consultant to CITY regarding
pending litigation, CITY agrees to pay City Manager consulting fees at an hourly
rate equal to the base wage paid to City Manager at the time of separation, CITY
also agrees to pay reasonable travel expenses and miscellaneous costs related to
such consulting.
29. 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. CITY:
Mayor and City Council
11 English Street
Petaluma CA 94952
b. CITY MANAGER:
John C. Brown
City Manager
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.
30. Performance Evaluations:
a. City Council shall review and evaluate the performance of City Manager at least
once annually in advance of the adoption of the annual operating budget. Said
17
review and evaluation shall be in accordance with specific criteria developed
jointly by CITY and City Manager. Said criteria may be amended as the City
Council may from time to time determine and in consultation with City Manager.
The City Council shall conduct its evaluation of City Manager in closed session.
The City Council shall provide City Manager with the written evaluation and
provide an adequate opportunity for City Manager to discuss City Manager's
evaluation with City Council.
b. In recognition of accomplishments and objectives, and satisfactory performance, a
potential annual merit increase shall be negotiated.
Annually, the City Council and City Manager 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.
d. In effecting the provisions of this section, the City Council and City Manager
mutually agree to abide by the provisions of applicable law.
e. City Manager will timely cause to be placed on the City Council agenda each year
a "closed session" for purpose of City Manager's performance evaluation.
31. 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 remain
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.
This agreement shall be binding upon and inure to the benefit of the heirs at law
and executors of City Manager.
1W
CITY MANAGER
19-2
CITY
John C. Brown, City Manager David Glass, Mayor
ATTEST:
Claire Cooper
City Clerk
APPROVED AS TO FORM:
Eric W. Danly
City Attorney
W
H
["01111,19191
HEALTH - RELATED BENEFITS
PEMHCA Contribution:
The City currently provides health benefits through the California Public Employees'
Retirement System (CalPERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for City
Manager's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to CalPERS. This amount is established annually by PERS and is the
minimum amount the agency must pay on behalf of the employee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 2 of this Exhibit.
2. Additional Contribution:
The amount of the City's additional contribution for City Manager and his covered family
members shall be $1,264.95 for employee plus one. This amount does not include the City
PEMCHA contribution identified in Section 1. City's additional contribution shall not exceed
this amount unless and until a different amount is negotiated by the parties.
3. Employee Contribution:
City Manager shall contribute to his CalPERS Health Premium in the amounts less the City's
PEMHCA contribution and less the additional benefit paid by the City.
4. Retired Employees — CalPERS and PEMHCA:
A. The City currently provides health benefits through the California Public Employees'
Retirement System (CalPERS) Health Benefits Program under the Public
Employees' Medical and Hospital Care Act (PEMHCA). In order for City Manager
to be eligible to receive health benefits through CalPERS upon retirement, he must
meet the following definition of "annuitant" under CalPERS law:
Employee must be a member of CalPERS; and
2. Employee must retire within one - hundred - twenty (120) days of separation
from employment with the City of Petaluma and receive a monthly retirement
allowance from CalPERS.
B. The monthly employer contribution for annuitants is the required minimum
PEMHCA contribution.
C. The City pays this contribution directly to CalPERS. The retiree is required to
contribute to the cost of the health benefit coverage. The retiree's monthly
all
contribution shall be the cost of the monthly health benefit premium less the amount
of the City's contribution.
5. Ca1PERS Annuitant — PEMHCA Health Benefits:
In accordance with the PEMHCA provisions if an employee is a CalPERS annuitant as
defined in Section 4 (A) and receives health benefits under the PEMHCA, the employee
is eligible to receive the City's PEMHCA contribution amount specified in Section 7
below, regardless of the number of years of service with the City of Petaluma.
6. Less Than 20 Years of Service — Not Receiving PEMHCA Health Benefits:
A retired employee with less than twenty (20) years of service with the City of Petaluma
who is not enrolled in the Ca1PERS health benefit program does not receive any retiree
benefit from the City.
7. Less Than 20 Years of Service — Receiving PEMHCA Health Benefits:
A retired employee with less than twenty (20) years of service with the City of Petaluma who
is a Ca1PERS annuitant as defined in Section 27.1 and enrolled in the Ca1PERS health benefit
program is eligible to receive the City's minimum PEMHCA contribution as set by
Ca1PERS.
8. Cash In -Lieu of Health and Dental Benefits:
A. If City Manager has health and or dental benefit insurance coverage from a source
other than the City, he may request cash in lieu of health and dental benefits. To
be eligible for the cash in -lieu benefit program he must waive his coverage under
the City's health and /or dental benefits, agree to the terms and conditions of the
cash in -lieu benefit program and have written verification of health and /or dental
benefits insurance.
B. The cash in -lieu amount for health coverage shall be in the amount of fifty percent
(50 %) of the health insurance premium amount that the City would otherwise pay
for the employee and his family members. The cash in -lieu amount for dental
insurance benefits shall be in the amount of fifty percent (50 %) of the established
dental program composite rate.
C. Upon declining medical and /or dental insurance, City Manager will be required to
meet the terms and conditions regarding CITY'S medical and /or dental plan. If he
decides to stop receiving the medical /dental cash back and wishes to re- enroll into
the City's medical and /or dental plan, then he must meet the current terms and
conditions of the City's medical and /or dental plan. The City cannot guarantee
that once he leaves a particular medical and /or dental plan, that he may be able to
re- enroll in his /her prior plan and under the same terns and conditions of his prior
plan.
21
9. Section 125 Plan:
The City of Petaluma has established and shall offer to City Manager an Internal Revenue
Code Section 125 plan. The Section 125 plan is subject to federal law and plan
provisions. The Section 125 Plan offered by the City provides employees with a tax
savings through the following programs:
A. Pre -Tax Health Insurance Premiums:
This program allows employees to pay his or her share of health insurance
premiums with pre -tax dollars.
B. Flex Spending Accounts (FSAs) :
Medical Reimbursement
This program permits employees to pay for common out -of- pocket
medical expenses (not covered by insurance) such as deductibles, co -pays,
and vision and dental care with pre -tax dollars.
2. Dependent Care Reimbursement
This program permits employees to pay for most child and or dependent
care expenses with pre -tax dollars.
10. Dental Insurance:
CITY shall provide a dental plan for the term of the Compensation Plan and pay the total
premium costs for City Manager and eligible dependents. The maximum benefit amount
is two thousand dollars ($2,000) per person per calendar year.
11. Vision Insurance:
CITY shall provide a vision plan for City Manager and eligible dependents. The cost
shall be paid for by the City. City Manager and his eligible dependents are eligible for
eye exams every twelve (12) months with a twenty -five ($25.00) deductible. Frames are
available every twelve (12) months with a maximum benefit of one - hundred - twenty
dollars ($120.00) and lenses are available every twelve (12) months with a maximum
benefit of two - hundred dollars ($200.00).
12. Employee Assistance Proms:
City will provide an Employee Assistance Program to City Manager and his immediate
family. This licensed counseling service will provide assistance and referrals for
marriage and family problems, alcohol and drug dependency, emotional, personal, and
stress- related concerns and other issues. All counseling services are confidential.
OJOJ
ATTACHMENT 3
FOURTH T4HRWAMENDED AT -WILL
AGREEMENT FOR EMPLOYMENT OF CITY MANAGER
This Amended Agreement (Agreement )- is made and entered into this day of
F , 2016, by and between the City of Petaluma, California ( "the CITY "'), a charter
city, and John C, Brown ( "City Manager" ). This Agreement shall have an effective date of
FAugust, 2016 ( "Effective Date "). The the—parties agree as follows:
1. Appointment of City Manager:
The Petaluma City Council appointed John C. Brown as City Manager of the City of
Petaluma beginning on April 1, 2008. The City Council of the CITY hereby
acknowledges the continuing appointment of appoints John C. Brown as to the posi4;
of City Manager of the City of Petaluma, California.
2. Term:
a. — Duration and Effective Date. The term of this Amended Agreement (Agreement)
shall commence on Eebm «are- 1, 2046- August 1, 2016 and, if not terminated earlier in
accordance with _section 5, this Agreement will expire on August 31, 2021 June 30,
241 -9. ( "Expiration Date ").
b. Extending the Expiration Date. The parties to this Agreement may agree to
amend the Expiration Date in writing. Should either party desire to extend the
Expiration Date, written notice must be provided to the other party 180 days prior
to the Expiration Date. Upon written receipt of said notice, the parties shall
commence discussions and negotiations. The parties have no obligation to agree
to extend the Expiration Date. Any extension of the Expiration Date must be in
writing in accordance with section 29 (a) of this Agreement.
3. At -Will Employment:
City Manager is an at -will employee in accordance with California Labor Code section
2922, and shall serve at the pleasure of the City Council. The terms of CITY's Personnel
Rules, Policies, Procedures, Ordinances and Resolutions shall not apply to City
Manager, and nothing in this Agreement is intended to, or does, confer upon City
Manager any right to or expectation of any right or property interest in continued
employment. If a decision to terminate City Manager's employment is made by the City
Council, whether with or without cause, the City Manager shall be entitled to only that
due process as is provided by City Charter, ordinance, or this Agreement. Nothing in this
t
f
Agreement shall prevent, limit or otherwise interfere with the right of City Manager to
resign at any time from his position with CITY, subject to section 5(a) of this Agreement.
4. Duties and Responsibilities:
a. City Manager shall continue his duties under this Agreement on February
4-August 1,-2016.
b. City Manager shall serve as the City Manager of the City of Petaluma, and shall
be vested with the powers, duties and responsibilities and perform the functions
and duties specified under the laws of the State of California, the Petaluma City
Charter and the Petaluma Municipal Code, and the ordinances and Resolutions of
the CITY and other applicable law, and such other duties and functions as the
City Council may from time to time assign.
C. City Manager agrees to remain in the exclusive employ of CITY, and devote his
full productive time and attention to CITY's business, during the term of this
Agreement. The Agreement, „+ ,,..,,ever- shall not be , nstf ,oa to r o„ ludo
oeeasional teaehing E) r w-fiting per-formed by City Manager dut4ng City Manager's
JxT
time off, City Manager shall seek and r-eeei H, in W-Fiting, f+OM the
City Geuiieil before undeftaking sueh work during his time offl.
d. The CITY recognizes that City Manager is expected to devote necessary time
outside normal office hours to business of the CITY. City Manager shall be
allowed to take reasonable time off for such work, as City Manager shall deem
appropriate during normal office hours. As an exempt employee, City Manager
shall not receive overtime or extra compensation for work performed outside
normal business hours. City Manager will, however, receive administrative leave
in accordance with Section 15.
5. Termination of Employment:
a_City Manager may terminate this Agreement, with or without cause, by giving the
CITY a minimum of sixty (60) days written notice in advance of termination, unless
the parties agree otherwise. During the period following notice of termination and
until the termination becomes effective, all the rights and obligations of the parties
under this Agreement shall remain in full force and effect. City Manager will not be
entitled to receive any severance pay if his resignation is voluntary.
b. _The City Council may terminate this Agreement, with or without cause. City Council
shall give City Manager a minimum sixty (60) days prior written notice of
termination provided, however, that if City Manager is terminated for cause, as
defined in this Agreement, the sixty (60) day written notice requirement shall not
apply and City Manager may be terminated with notice as provided in Section 5
(c).
—7._
C. Prior to terminating this Agreement for cause, pursuant to Section 7, the City
Council shall give City Manager at least ten (10) days prior written notice of the
alleged cause for terminatio� °�.�ge-s. Within the ten -day period, but not
earlier than five days after the notice has been given, the City Council shall meet
with City Manager in closed session and give City Manager an opportunity to
address the City Council regarding the alleged cause for terminationehffl- City
Manager may also choose to have allegations brought against him heard in open
session in accordance with California Government Code Section 54957 (b) (2).
After hearing City Manager's response to the alle atg ionseharges, the City Council
shall make a decision as to whether to terminate the Agreement and shall inform
City Manager in writing of its decision.
d.- Upon separation from CITY for any reason, City Manager will be paid for all
eaaccrued, and unused vacation, administrative leave, and floating holidays,
subject to the limitations imposed elsewhere in this Agreement.without limit.
6. Termination Without Cause:
a. For the purpose of this Agreement, termination without cause shall be deemed to
occur when:
1. The majority of the governing body votes to terminate the City Manager at
a duly authorized public meeting without cause, as defined in Section 7 of
this Agreement.
2. The City Council, the citizens or the Legislature acts to amend any
provisions of the City Charter, codes, or other enabling legislation
pertaining to the role, powers, duties, authority, or responsibilities of the
City Manager's position that substantially changes the form of
government. City Manager shall have the right to declare that such
amendments constitute termination without cause.
3. The City Council reduces the base salary, compensation or any other
financial benefit of the City Manager (unless it is applied in no greater
percentage than the average reduction of all department directors). Such
action will be regarded as a termination without cause.
4. Material breach of this Agreement is declared in writing by City Manager
specifying the reasons therefore, but only if CITY has not cured such
declared material breach within thirty (30) days of receipt of notice of the
declared material breach. CITY mav also terminate this n ereeme+A f
7. Termination for Cause:
a. For purposes of this Agreement, cause for termination by CITY means:
1. Willful and repeated failure to perform the duties of City Manager or other
material breach of this Agreement declared in writing by CITY by notice in
accordance with Section 29 and not cured within thirty days of receipt of notice of
the declared material breach;
2. Conviction of City Manager for an employment related criminal act;
3. Conviction of City Manager for a felony; or
4. A finding by a court, jury, State or Federal Attorney General, the Fair Political
Practices Commission, or any successor agency, that City Manager _ engaged in
intentional or negligent misconduct in relation to the performance of City
Manager's duties.
b. Pursuant to Government Code Sections 53243, 53243. 1, and 53243.2, if City
Manager is convicted of a crime involving an abuse of his office or position all of
the following shall apply:
If City Manager is provided with administrative leave pay pending an
investigation, City Manager shall be required to fully reimburse City such
amounts paid.
2. If CITY pays for the criminal legal defense of City Manager, City
Manager shall be required to fully reimburse CITY such amounts paid.
3. If this Agreement is terminated, any Severance Pay and Severance
Benefits related to the termination that City Manager may receive from
MA
b. Pursuant to Government Code Sections 53243, 53243. 1, and 53243.2, if City
Manager is convicted of a crime involving an abuse of his office or position all of
the following shall apply:
If City Manager is provided with administrative leave pay pending an
investigation, City Manager shall be required to fully reimburse City such
amounts paid.
2. If CITY pays for the criminal legal defense of City Manager, City
Manager shall be required to fully reimburse CITY such amounts paid.
3. If this Agreement is terminated, any Severance Pay and Severance
Benefits related to the termination that City Manager may receive from
CITY shall be fully reimbursed to CITY or void if not yet paid to City
Manager.
For purposes of subsection 7 (b), abuses of office or position means either
A. an abuse of public authority, including waste, fraud, and violation
of the law under color of authority; or
B. a crime against public justice, including but not limited to, a crime
described in Title 7 (commencing with Section 92) of Part 1 of the
California Penal Code.
Severance Pay:
a. If CITY terminates City Manager during the term of this Agreement seven months or
more prior to the Expiration Date and without cause in accordance with Section 6, then
City Manager shall be entitled to a severance payment equal to seven (7) months of base
salary at the rate in effect at the time of termination, plus CITY's share of the cost of
continuing health, dental, and vision insurance for City Manager and all dependents as
provided in Section 18(b) for seven (7) months. At City Manager's election, and pursuant
to City Manager's written instructions at the time of severance, severance pay shall be
paid either in a lump sum cash payment within thirty (30) days of the date of termination,
or in equal monthly payments. Should City Manager elect to receive severance pay in
equal payments, the number of such monthly payments shall not exceed seven (7).
b. If CITY terminates City Manager with less than seven months remaining until the
Expiration Date and without cause in accordance with Section 6, then the maximum
severance City Manager may receive shall be an amount equal to City Manager's
monthly salary multiplied by the number of months left on the unexpired term of the
Agreement, plus CITY's share of the cost of continuing health, dental, and vision
insurance for City Manager and all dependents as provided in Section 18 (b) for the same
duration of time.
c. All payments required under Sections 8 (a) and 8 (b) are subject to and shall be
interpreted to comply with the limitations set forth in Government Code Section 53260.
CITY's share of the cost of Health, Dental and Vision benefits shall continue for the
same duration of time as covered in the settlement or until the City Manager finds other
employment, whichever occurs first.
d. If CITY terminates City Manager for cause, he will not be entitled to any severance
payment. The determination of whether there is cause for termination shall be consistent
with Section 7, and/ tirwn)
9. Compensation:
10-
r
a. Base Salary. City agrees to pay City Manager an annual base salary of
$288080216,320, payable in installments at the same time that the other
management employees of the CITY are paid.
b. Merit Adjustment. CITY may increase City Manager's compensation in such
amounts and to such extent as the City Council may determine is desirable on the
basis of any annual performance salami review of City Manager.
C. Cost of Living Adjustment. CITY shall consider, on an annual basis, cost of
living adjustment to City Manager's compensation. Such adjustments shall be
separate of any adjustments granted pursuant to Section 9 (b) of this Agreement.
d. In effecting this section, City and City Manager mutually agree to abide by the
provisions of applicable law.
10. Deferred Compensation
a. 457 Plan. CITY shall make available to City Manager the City's Deferred
Compensation Plan with ICMA Retirement Corporation (RC) and agrees to pay an
amount designated by City Manager and allowed by law into the ICMA -RC on City
Manager's behalf in an equal proportionate amount each pay period, and to transfer
ownership to succeeding employers upon City Manager's resignation or termination.
b. CITY agrees to maintain all necessary agreements provided by ICMA -RC for City
Manager's continued participation in said ICMA -RC plan.
11. Disability:
If City Manager is permanently disabled or otherwise unable to perform his duties
because of sickness, accident, injury, mental incapacity or health for a period of ninety
(90) successive days beyond any accrued sick leave, CITY shall have the option to
terminate this Agreement. Upon termination pursuant to this provision, CITY shall have
no obligation to pay severance benefits pursuant to Section 8.
12. Use of Automobile:
City Manager shall have the use of CITY -owned vehicle to conduct CITY business. If
such vehicle is not available, City Manager may elect to , e+ ' eLeet ^ „, use his privately
owned vehicle, in which case City shall reimburse City Manager for actual business
travel at the maximum amount per mile then allowed by the Internal Revenue Service.
13. Vacation,Leave:
a. A. As of the Effective Date of this Agreement, City Manager has a balance of 543.22
hours of accumulated Vacation leave. City Manager shall continue to accrue vacation
11 --°
hours at the rates specified in the table below. City Manager shall not accrue vacation time
in excess of 600 hours. over- time, and hm,e c-re dite rto City Managef's Personal aeeo
vaeation at the rate of teft (10) hours per- fnefith tip to a mwdnfflm of eleven and one t
(11 1/3) hows P e0fisistent with the following sehedule and at the same rate
"ullu apply to y le employed by CITY 5inee April 1, 2 a. 'There shall be no
Years of Service Vacation Accrual (hrs.)
-5-9 120
10 128
11 136
12 144
13
152
14
160
15
168
16 or greater
200
B. Vacation leave, shall be taken at times and in amounts selected by the City
Manager, taking the operational needs of the City into account.
C. Fixed holidays shall not be charged as vacation leave when vacation and holiday(s)
coincide.
14. Sick Leave
A. Eligibility_ Sick leave shall be used only in case of personal illness, disability or the
illness or injury of City Manager's family members, which requires City Manager's
attention. The term family members shall include: spouse, children, parents, spouse's
parents, brothers, sisters or other individuals whose relationship to the employee is that of
a dependent or near dependent.
B. Accrual. As of the Effective Date of this Agreement, City Manager has a balance of
691.91 hours of accumulated Sick leave. Sick leave shall continue to accrue and be
credited to the City Manager's personal account at the rate of eight (8) hours for each
month of continuous service.
C. Retirement Payout. In the event of the death or retirement at any time during the term of
this Agreement. City Manager may place all sick leave hours into the CalPERS sick leave
conversion benefit. Upon completion of and the com „le4io of ten (10) or more
continuous years of service with the City, and upon death or retirement, City Manager
shall be paid or shall receive to his benefit fifty percent (50 %) of his accumulated but
unused sick leave. City Manager may elect not to receive this benefit and instead place all
sick leave hours into the CalPERS sick leave conversion benefit, or the °mployeeCity
Manager may do a combination of both, to receive a payout of up to fifty percent (50 %)
of his4w+ accumulated but unused sick leave with the balance placed into the CalPERS
sick leave conversion benefit.
. -12.,.
y$
15. Administrative Leave. City Manager shall be credited with ninety six (96) hours of
administrative leave each fiscal year.
a. Carry Forward of Leave. City Manager may carry forward up to forty (40) hours of
unused administrative leave into the next fiscal year. City Manager may not maintain
balances of more than one hundred and thirty six (13 6) hours in any fiscal year. Carry
forward administrative leave may only be taken as paid time off, has no cash value,
and shall not be included in the totals subject to payment under Section 5 (d).
b. Annual Payment for Unused Leave. City Manager shall receive payment for up to
twenty forty — (2048) hours of unused administrative leave at the end of each fiscal
year. Payment shall be at the employee's base pay rate as of June 30. Payment shall
be made on the last pay period of the fiscal year.
16. Holidays and Holiday Leave. The City observes the following twelve (12) fixed -date
holidays per year. Those h lida ,s for- fiseal , o f 2015/16
Independence Day
Labor Day
Columbus Day
Veterans' Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve
Christmas Day
New Year's Day
Martin Luther King Day
Presidents' Day
Memorial Day
a. Observance. The actual date of the observed holidays is determined by City Council
resolution each fiscal year. If participating in a 5/8 schedule, when a holiday falls on a
Saturday, that holiday will be observed on the prior Friday. When a holiday falls on a
Sunday, that holiday will be observed on the following Monday. Should this conflict
with a Friday or Monday designated holiday, the Friday or Monday holiday will occur on
the preceding Thursday or following Tuesday. If participating in a 4/10 schedule, when a
holiday falls on a Friday or Saturday, that holiday will be observed on Thursday. When a
holiday falls on a Sunday, that holiday will be observed on the following Monday.
Should this conflict with a Friday or Monday designated holiday, the Friday or Monday
holiday will occur on the preceding Wednesday or following Tuesday.
b. Floating Holidays. CITY shall provide City Manager one (I)-8 -hour "Floating Holiday ",
each fiscal year which may be taken at a time selected by City Manager, subject to
operational requirements of the City. The floating holiday will be added to City
Manager's bank of leave with the first payroll period each January during the term of this
Agreement. Any unused floating holiday leave remaining in i City Manager's leave bank
at the end of a fiscal vear may be carried forward to the succeeding vear.
17. Other Leaves.
A. Industrial Injury Leave
1. Benefits shall be payable when City Manager's absence is due to industrial injury as
provided in California State Workers' Compensation Law. During the first three (3)
workdays when his absence has been occasioned by injury suffered during his
_.1.3 -._
employment and he receives workers' compensation benefits, he shall receive full
pay. Following this period, sick leave may be a supplement to the workers' benefits
provided. Compensation is at his regular rate for a period not to exceed six (6)
months, or until such sick leave is exhausted, or the disability is abrogated, or he is
certified "permanent and stationary" by a competent medical authority. The City shall
pay him the regular salary, based on the combination of the workers' compensation
benefit plus sick leave.
2. Sick leave for industrial injury shall not be allowed for a disability resulting from
sickness, self - inflicted injury, or willful misconduct.
3. The City may, with City Manager's agreement, retire City Manager prior to the
exhaustion of accumulated sick leave, at which time all accrued but unused sick leave
shall be abrogated, subject only to the limitations provided under this Agreement.
B. Bereavement Leave
I . City Manager shall be granted up to thirty -two (32) hours of bereavement leave in the
event of death in his immediate family. For the purpose of bereavement leave,
immediate family shall mean spouse, qualified domestic partner, father, father -in -law,
mother, mother -in -law, brother, brother -in -law, sister, sister -in -law, child (including
stepchildren), step - parents, grandparents and grandchildren or person with whom City
Manager has a relationship in loco parentis. Up to an additional eight (8) hours of
accrued sick leave may be granted to supplement bereavement leave.
2. In the event City Manager must travel more than three- hundred (300) miles to attend
a funeral or memorial service, an additional eight (8) hours of bereavement leave
shall be granted instead of the use of eight (8) hours of sick leave.
C. Victims of Domestic Violence and Sexual Assault Leave.
The City of Petaluma provides appropriate leave, in accordance with California Labor
Code Section 230.
D. Election Officer Leave And Voting Leave
When City Manager's actual work schedule otherwise would prevent him from voting in
any State, County, or General election, he may be granted up to two (2) hours of paid
time to vote, in accordance with Election Code 14000. City Manager must provide the
City with at least two (2) working days' written notice that he will be taking time off to
vote.
E. Leave Of Absence Without Pay
CITY may grant City Manager a leave of absence without pay pursuant to State and
Federal Law. Good cause being shown by a written request, CITY may extend such leave
of absence without pay or benefits for an additional period not to exceed six (6) months.
No such leave shall be granted except upon written request of City Manager setting forth
the reason for the request, and the approval will be in writing.
F. Jury Duty Leave
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If City Manager is summoned for jury duty, he shall be entitled to a leave of absence with
full pay for such period of time as may be required to attend the court in response to such
summons. City Manager may retain payment for travel but shall make payable to the
City any and all fees which he may receive in payment for service as a juror. For Grand
Juries this compensation shall not extend beyond twenty (20) working days.
G. Family care and medical leave (FMLA & CFRA)
I. FMLA and /or CFRA Leave. CITY shall provide City Manager with family and
medical care leave as required by City policy, State and Federal law and as specifically
provided in the Federal Family and Medical Leave Act of 1993 (FMLA) and the
California Family Rights Act of 1993 (CFRA). City Manager willmust provide thirty (30)
days advance notice of leave, if possible.
2 FMLA and /or CFRA — Second Opinion. City Manager shall provide CITY with a
health care provider certification. CITY, at City expense, may require a second opinion
on the validity of the certification. Should a conflict arise between health providers, a
third and binding opinion, at City expense shall be sought.
18. Disability, Health, and Life Insurance:
A. CITY agrees to purchase and to pay during the term of this Agreement, premiums
on term life insurance policies equal in amount to one and one -half 1 -1/2 times
the amount of the annual compensation package of City Manager described in
Section 9.
B. CITY agrees to provide and to pay the CITY's share of premiums for medical,
dental, and vision insurance for the City Manager and his dependents in
accordance with Exhibit 1.. City Manager shall have the right to select medical,
dental and vision coverage from the plan options specified in Exhibit 1.
C. CITY agrees to have in force and make required premium payments for City
Manager's participation in the CITY's current group disability plan. Currently that
Plan is provided through CIGNA, and replaces 60% of annual earnings, to a
maximum of $3,000 per month after being disabled for sixty (60) days.
19. Retirement:
A. California Public Employees Retirement System. City has previously enrolled City
Manager into the California Public Retirement System, (PERS). City agrees to make
all the appropriate contributions on the City Manager's behalf, for the employer share
required. . City Manager shall pay the entire contribution for the PERS employee
share required.
A. City Manager has continuously been employed with CITY since April 1, 2008, and
does and shall continue to participate in the 2% at 55 formula retirement plan
provided to Miscellaneous members, calculated at the single highest one -year
compensation.
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B. The City's contract with PERS, for Miscellaneous members with the two percent
(2 %) at fifty -five (55) formula retirement plan, includes the following optional
benefits:
1. Third Level - 1959 Survivor's Benefit as provided in Section 21573 (April 5,
1999).
2. Military Service Credit as provided in Section 21024 (January 1, 1992).
3. One -Year Final Compensation as provided Section 20042 (November 1, 1980).
4. Credit for Unused Sick Leave as provided in Section 20965 (November 1, 1980).
5. Cost of Living Allowance two percent (2 %) as provided by Section 21329 (April
1, 1971).
6. Retired Death Benefit of five- hundred dollars ($500.00) as provided in Section
21620 (December 1, 1969).
7. Death Benefit Continues as provided in Section 21551 (January 1, 2000).
8. Prior Service Credit as provided in Section 20055 (January 1, 1950).
C. The City shall continue to defer that portion of the employee's contribution paid to
Ca1PERS through section 414(h)(2) of the Internal Revenue Code pursuant to City of
Petaluma Resolution 90 -363 N.C.S.
D. 401(A) Plan. The City of Petaluma shall contribute on behalf of City Manager seven
percent (7 %) of the compensation amount specified in provision 9(a) of this
Agreement, as such compensation may be amended from time to time, into the City
of Petaluma 401 (A) Government Money Purchase Plan and Trust.
Dues and Subscriptions:
Subject to budgetary approval by the CITY, CITY agrees to pay for professional dues
and subscriptions of City Manager necessary for City Manager's continuation and full
participation in national, regional, state and local associations and organizations
necessary and desirable for CITY MANAGER's continued professional participation,
growth and advancement and for the good of CITY.
Professional Development:
a. Subject to budgetary approval by CITY, CITY agrees to pay for, to the extent
allowed by law, travel and subsistence expenses of City Manager for official
travel, meetings and events as necessary and appropriate to continue the
professional development of City Manager and to adequately represent CITY at
gatherings such as the ICMA annual conference, California League of Cities
meetings and conferences, and such other national, regional, state and local
governmental groups and committees thereof in which City Manager participates
as a representative of CITY.
b. Subject to budgetary approval by CITY, CITY agrees to pay for, to the extent
allowed by law, travel and subsistence expenses of City Manager for short
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22.
courses, institutes and seminars that are necessary for City Manager's professional
development and for the good of CITY.
General Expenses:
CITY recognizes that certain expenses of a non - personal nature are incurred by City
Manager for the benefit of the CITY in the course of performance of City Manager's
duties 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, statements or personal affidavits to
the extent allowed by law and subject to budgetary approval.
23. Bonding:
24.
25.
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27
CITY shall bear the full cost of any fidelity or other bonds required of City Manager
under any law or ordinance.
Continuity:
In the event of a change of the elected representation of the City Council, there will be a
ninety (90) day period commencing upon the seating of new City Council members when
the City Council can take no action regarding the provisions of City Manager's contract,
unless both parties agree or the action is for cause,
Attorney Fees:
In the event of any suit or action by either party under this Agreement, the prevailing
party in such suit or action shall be entitled to reasonable attorney fees and costs to be
fixed by the court.
Reasonable accommodation.
In accordance with the California Fair Employment and House Act (FEHA) and the
Americans with Disability Act (ADA), CITY will reasonably accommodate any known
protected disability of City Manager.
Other Terms and Conditions of Employment:
The City Council, in consultation with City Manager, shall fix any other terms and
conditions of employment, as it may determine from time to time, relating to the
performance of City Manager, provided such terms and conditions are not inconsistent
with or in conflict with the provisions of this Agreement, the Petaluma City Charter, the
Petaluma Municipal Code or any other applicable state or federal law.
Indemnification:
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a. CITY shall defend, hold harmless and indemnify City Manager 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
or omission occurring in the performance of the City Manager's duties in
accordance with the provisions of California Government Code Section 825 and
following as amended from time to time and provide a defense in accordance with
California Government Code Section 995 and following. Notwithstanding
anything to the contrary in this Agreement, CITY reserves the right to refuse to
provide a defense of City Manager for the reasons set forth in California
Government Code section 995.2 or other applicable provisions of law.
b. Following termination or expiration of this Agreement, for any reason, when City
Manaaer serves as a witness, advisor and/or consultant to CITY reizardina
pending litigation, CITY agrees to pay City Manager consulting fees ees
onsu tin ro °s at an hourly rate equal to the base wage paid to City Manager at
the time of separation and travel expenses when City Manager serves as-a
litigation. witness, a&isof aad/of eensulta+A to CITY regarding pending CITY
also agrees to pay reasonable travel expenses and miscellaneous costs related to
such consulting.
29. 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. CITY:
Mayor and City Council
11 English Street
Petaluma CA 94952
b. CITY MANAGER:
John C. Brown
City Manager
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.
30. Performance Evaluations:
City Council shall review and evaluate the performance of City Manager 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 City Manager. Said criteria may be amended as the City
Council may from time to time determine and in consultation with City Manager.
The City Council shall conduct its evaluation of City Manager in closed session.
The City Council shall provide City Manager with the written evaluation and
provide an adequate opportunity for City Manager to discuss City Manager's
evaluation with City Council.
b. In recognition of accomplishments and objectives, and satisfactory performance, a
potential annual merit increase shall be negotiated.
C. Annually, the City Council and City Manager 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.
d. In effecting the provisions of this section, the City Council and City Manager
mutually agree to abide by the provisions of applicable law.
e. City Manager will timely cause to be placed on the City Council agenda each year
a "closed session" for purpose of City Manager's performance evaluation.
31. 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 remain
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 shall be binding upon and inure to the benefit of the heirs at law
and executors of City Manager.
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�y
CITY MANAGER
CITY
John C. Brown, City Manager David Glass, Mayor
DATED:
ATTEST:
Claire Cooper
City Clerk
APPROVED AS TO FORM:
Eric W. Danly
City Attorney
DATED:
e
EXHIBIT 1
HEALTH - RELATED BENEFITS
1. PEMHCA Contribution.
The City currently provides health benefits through the California Public Employees'
Retirement System (CalPERS) Health Benefits Program under the Public Employees'
Medical and Hospital Care Act (PEMHCA). The City's employer contribution for City
Manager's health benefits shall be the minimum required by PEMHCA. The City pays this
contribution directly to CalPERS. This amount is established annually by PERS and is the
minimum amount the agency must pay on behalf of the employee for medical insurance.
It is separate and apart from the annual health insurance rates and the additional
contribution noted in Section 2 of this Exhibit.
2. Additional Contribution
The amount of the City's additional contribution for City Manager and his covered family
members shall be $1,264.95 for employee plus one, and $1,678.34 f r emoeyee plus two Of
mere. Thise-se amounts does not include the City PEMCHA contribution identified in Section
1. City's additional contribution shall not exceed this ese amounts unless and until a different
amount is negotiated by the parties.
3. Employee Contribution
City Manager shall contribute to his CalPERS Health Premium in the amounts less the City's
PEMHCA contribution and less the additional benefit paid by the City.
4. Retired Employees — CalPERS and PEMHCA
A. The City currently provides health benefits through the California Public Employees' Retirement
System (CalPERS) Health Benefits Program under the Public Employees' Medical and Hospital Care
Act (PEMHCA). In order for City Manager to be eligible to receive health benefits through CalPERS
upon retirement, he must meet the following definition of "annuitant" under CalPERS law:
1. Employee must be a member of CalPERS; and
2. Employee must retire within one - hundred - twenty (120) days of separation from
employment with the City of Petaluma and receive a monthly retirement allowance
from CalPERS.
B. The monthly employer contribution for annuitants is the required minimum PEMHCA
contribution.
C. The City pays this contribution directly to CalPERS. The retiree is required to contribute to the
cost of the health benefit coverage. The retiree's monthly contribution shall be the cost of the monthly
health benefit premium less the amount of the City's contribution.
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CalPERS Annuitant — PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a CalPERS annuitant as defined in
Section 4 (A) and receives health benefits under the PEMHCA, the employee is eligible to
receive the City's PEMHCA contribution amount specified in Section 7 below, regardless of the
number of years of service with the City of Petaluma.
6. Less Than 20 Years of Service — Not Receiving PEMHCA Health Benefits
A retired employee with less than twenty (20) years of service with the City of Petaluma who is
not enrolled in the CalPERS health benefit program does not receive any retiree benefit from the
City.
7. Less Than 20 years of Service — Receiving PEMHCA Health Benefits
A retired employee with less than twenty (20) years of service with the City of Petaluma who is a
CalPERS annuitant as defined in Section 27.1 and enrolled in the CalPERS health benefit program is
eligible to receive the City's minimum PEMHCA contribution as set by CalPERS.
8. Cash in -lieu of health and dental benefits
A. If City Manager has health and or dental benefit insurance coverage from a source other
than the City, he may request cash in lieu of health and dental benefits. To be eligible for
the cash in -lieu benefit program he must waive his coverage under the City's health
and /or dental benefits, agree to the terms and conditions of the cash in -lieu benefit
program and have written verification of health and /or dental benefits insurance.
B. The cash in -lieu amount for health coverage shall be in the amount of fifty percent (50 %)
of the health insurance premium amount that the City would otherwise pay for the
employee and his family members. The cash in -lieu amount for dental insurance benefits
shall be in the amount of fifty percent (50 %) of the established dental program composite
rate.
C. Upon declining medical and /or dental insurance, City Manager will be required to meet
the terms and conditions regarding CITY's medical and /or dental plan. If he decides to
stop receiving the medical /dental cash back and wishes to re- enroll into the City's
medical and /or dental plan, then he must meet the current terms and conditions of the
City's medical and /or dental plan. The City cannot guarantee that once he leaves a
particular medical and /or dental plan, that he may be able to re- enroll in his /her prior plan
and under the same terms and conditions of his prior plan.
9. Section 125 plan
The City of Petaluma has established and shall offer to City Manager an Internal Revenue
Code Section 125 plan. The Section 125 plan is subject to federal law and plan
provisions. The Section 125 Plan offered by the City provides employees with a tax
savings through the following programs:
(A) Pre -Tax Health Insurance Premiums
This program allows employees to pay his or her share of health insurance premiums
with pre -tax dollars.
(B) Flex Spending Accounts (FSAs)
(1) Medical Reimbursement
This program permits employees to pay for common out -of- pocket medical
expenses (not covered by insurance) such as deductibles, co -pays, and vision and
dental care with pre -tax dollars.
(2) Dependent Care Reimbursement
This program permits employees to pay for most child and or dependent care
expenses with pre -tax dollars.
10. Dental insurance
CITY shall provide a dental plan for the term of the Compensation Plan and pay the total
premium costs for City Manager and eligible dependents. The maximum benefit amount is two
e-ne-thousand five i,,,ndr- °a _dollars x$21,0500) per person per calendar year. OAhedetie
11. Vision insurance
CITY shall provide a vision plan for City Manager and eligible dependents. The cost shall be
paid for by the City. City Manager and his eligible dependents are eligible for eye exams every
twelve (12) months with a twenty -five ($25.00) deductible. Frames are available every twelve
(12) months with a maximum benefit of one - hundred - twenty dollars ($120.00) and lenses are
available every twelve (12) months with a maximum benefit of two - hundred dollars ($200.00).
12. Employee assistance program
City will provide an Employee Assistance Program to City Manager and his immediate family.
This licensed counseling service will provide assistance and referrals for marriage and family
problems, alcohol and drug dependency, emotional, personal, and stress - related concerns and
other issues. All counseling services are confidential.
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