HomeMy WebLinkAboutResolution 2017-043 N.C.S. 03/20/2017Resolution No. 2017-043 N.C.S.
of the City of Petaluma, California
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PETALUMA APPROVING A NEW AT -WILL
AGREEMENT FOR EMPLOYMENT OF CITY ATTORNEY
WHEREAS, the Petaluma City Council appointed Eric Danly as City Attorney of the
City of Petaluma by Resolution No. 2005-205 N.C.S., adopted December 5, 2005; and
WHEREAS, by the same resolution, the City Council approved the fourth amendment to
an agreement for legal services originally executed August 29, 1994 with Meyers, Nave, Riback,
Silver and Wilson; and
WHEREAS, Eric Danly served as the Petaluma City Attorney as an employee of
Meyers, Nave, Riback, Silver and Wilson pursuant to the agreement with the City of Petaluma
beginning December 5, 2005; and
WHEREAS, to reduce overall legal service costs of the City the Petaluma, the City
Council decided to provide for the City's legal service needs primarily through attorneys
employed by the City rather than through legal service contracts and invited Eric Danly to
continue serving as the Petaluma City Attorney pursuant to an employment contract with the
City and to establish an in-house legal services department for the City; and
WHEREAS, the City Council approved an At -Will Agreement for Employment of City
Attorney with Eric Danly by Resolution No. 2013-060 N.C.S., adopted June 3, 2013 and entered
the agreement effective July 1, 2013.
WHEREAS, the City and City Attorney Eric Danly (the Parties) intend to enter a new
At -Will Agreement for Employment of City Attorney effective March 27, 2017; and,
WHEREAS, the term of the attached agreement, which would supersede and replace the
At -Will Agreement for Employment of City Attorney entered July 1, 2013, would expire June
30, 2027, and increase the City Attorney's base salary from $185,500.00 to $192,920.00, an
increase of 4%, effective March 27, 2017, and provide for continuation Eric Danly's
performance of the duties and responsibilities of City Attorney for the City of Petaluma, and
reduction of annual sell -back of unused administrative leave from a maximum of 40 hours to a
maximum of 20 hours; and
WHEREAS, in accordance with California Government Code section 54953,
subdivision (c), paragraph (3), prior to taking final action on the proposed new At -Will
Agreement for Employment of City Attorney, an oral report of the recommended action on the
compensation and other terms of employment of the City Attorney proposed pursuant to the
new At -Will Agreement was provided at a duly noticed meeting of the City Council; and
WHEREAS, the City Council and City Attorney Eric Danly agree to the terms of
Employment, Compensation, and Benefits relating to the position of City Attorney set forth in
the First Restated At -Will Agreement for Employment of City Attorney attached as Exhibit A;
Resolution No. 2017-043 N.C.S. Page 1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The City Council hereby approves the First Restated At -Will Agreement for
Employment of City Attorney, attached as Exhibit A and incorporated herein by
reference.
2. The City Council authorizes and directs the Mayor to sign the agreement attached as
Exhibit A on behalf of the City.
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
Council of the City of Petaluma at a Regular meeting on the 201h day of March,
2017, by the following vote:
AYES:
Mayor Glass, Healy, Kearney, King, Miller
NOES:
Albertson
ABSENT:
Vice Mayor Barrett
ABSTAIN:
None
ATTEST:
Deputy City Clerk Piro Tem
J—ic
yor
' prpved as to
j f�rm:
t �1
City Attorney
Resolution No. 2017-043 N.C.S. Page 2
EXHIBIT A
FIRST RESTATED AT -WILL AGREEMENT
FOR EMPLOYMENT OF CITY ATTORNEY
Background
The Petaluma City Council appointed Eric Danly as City Attorney of the City of
Petaluma by Resolution No. 2005-205 N.C.S., adopted December 5, 2005. By the same
resolution, the City Council approved the fourth amendment to an agreement for legal services
originally executed August 29, 1994 with Meyers, Nave, Riback, Silver and Wilson. Eric Danly
served as the Petaluma City Attorney as an employee of Meyers, Nave, Riback, Silver and
Wilson pursuant to the contract between the City of Petaluma and Meyers, Nave, Riback, Silver
and Wilson beginning December 5, 2005.
To reduce overall legal service costs of the City the Petaluma, the City Council decided
to provide for the City's legal service needs primarily through attorneys employed by the City
rather than through legal service contracts. The City Council invited Eric Danly to continue
serving as the Petaluma City Attorney pursuant to an employment contract with the City and to
establish an in-house legal services department for the City. The City approved an At -Will
Agreement for Employment of City Attorney with Eric Danly by Resolution No. 2013-060
N.C.S., adopted June 3, 2013 and entered the agreement effective July 1, 2013.
Eric Danly desires to continue serving as the Petaluma City Attorney and to continue to
develop the City's in-house legal services department in accordance with the City Council's
direction. A subcommittee of the City Council has recommended a new At -Will agreement for
employment of City Attorney to provide for the continuation of Eric Danly's service as Petaluma
City Attorney.
In accordance with the Council subcommittee recommendation and direction of the City
Council, this First Restated At -Will Agreement for Employment of City Attorney will, effective
March 27, 2017, supersede and replace the At -Will Agreement for Employment of City Attorney
entered July 1, 2013, and expire June 30, 2027. In addition, this agreement will increase the City
Attorney's base salary from $185,500.00 to $192,920.00, an increase of 4%, and provide for
reduction of annual sell -back of unused administrative leave from a maximum of 40 hours to a
maximum of 20 hours, as well as for continuation of Eric Danly's performance of the duties and
responsibilities of City Attorney for the City of Petaluma, subject to the terms of this agreement.
Agreement
This First Restated At -Will Agreement for Employment of City Attorney (the
"Agreement") is made by the City of Petaluma, ("the CITY"), a California charter city, and Eric
W. Danly ("ERIC DANLY"). The CITY and ERIC DANLY are referred to collectively in this
Agreement as "the Parties." This Agreement will be effective March 27, 2017 (the "Effective
Date"). The Parties agree as follows:
Resolution No. 2017-043 N.C.S. Page 3
1. Appointment of City Attorney:
The CITY acknowledges the continuing appointment of ERIC DANLY as City Attorney
of the CITY. Commencing on the Effective Date, ERIC DANLY's appointment as City
Attorney will be pursuant to this Agreement.
2. Term:
The term of this Agreement shall commence on the Effective Date and expire on June 30,
2027 or upon termination in accordance with Section 22. The Parties agree that in the
month of July, 2026, the first month of the final year of the Agreement term, that they
will meet to discuss whether they intend to renew this Agreement or permit it to expire in
accordance with its terms.
3. At -Will Employment:
ERIC DANLY will be an at -will employee of the CITY in accordance with California
Labor Code Section 2922, and will serve at the pleasure of the City Council. The CITY's
Personnel Rules, Policies, Procedures, Ordinances and Resolutions will not apply to
ERIC DANLY, and nothing in this Agreement confers upon ERIC DANLY any right to
or expectation of any right or property interest in continued employment by the CITY. If
the CITY terminates ERIC DANLY's employment, whether with or without cause, ERIC
DANLY will be entitled to only that due process that is provided by CITY Charter or
ordinance, or this Agreement. Nothing in this Agreement will limit the right of ERIC
DANLY to resign at any time from his position with the CITY subject to requirements in
Section 22 of this Agreement.
4. City Attorney Duties and Responsibilities:
a. ERIC DANLY will continue performing the duties of City Attorney of the CITY
pursuant to this Agreement commencing on the Effective Date.
b. ERIC DANLY will serve as the City Attorney of the City of Petaluma, and will
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. ERIC DANLY agrees to remain in the exclusive employ of the CITY, and to
devote his full productive time and attention to the CITY's business during the
term of this Agreement. However, ERIC DANLY may seek, and the City
Council may give, its written permission for ERIC DANLY to occasionally teach
or write during ERIC DANLY's time off.
d. The CITY recognizes that ERIC DANLY is expected to devote necessary time
outside normal office hours to business of the CITY. ERIC DANLY will be
allowed to take reasonable time off for such work, as ERIC DANLY deems
appropriate, during normal office hours. As an exempt employee, ERIC DANLY
will not receive overtime or extra compensation for work performed outside
Resolution No. 2017-043 N.C.S. Page 4
normal business hours. However, ERIC DANLY will receive administrative
leave in accordance with Section 9, subdivision (c).
5. Compensation:
a. The CITY agrees to pay ERIC DANLY an annual base salary of $192,920.00,
payable in installments at the same time that the other management employees of
the CITY are paid.
b. The CITY may increase ERIC DANLY's compensation in such amounts and to
such extent as the City Council may determine is desirable on the basis of any
annual salary review of ERIC DANLY,
6. Benefits:
ERIC DANLY will be entitled to the benefits specified in Exhibit 1 which is attached to
and made a part of this Agreement.
7. Disability:
If ERIC DANLY 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, the CITY will have the option to
terminate this Agreement. Upon termination pursuant to this section, the CITY will have
no obligation to pay severance pursuant to Section 23.
8. Use of Vehicle:
ERIC DANLY may use his privately -owned vehicle to conduct CITY business, in which
case CITY will reimburse ERIC DANLY for actual business travel at the maximum
amount per mile then allowed by the Internal Revenue Service. ERIC DANLY may also
use a CITY -owned vehicle to conduct CITY business, if one is available.
9. Vacation, Sick, Administrative and Holiday Leave:
a. Upon the Effective Date, ERIC DANLY will continue to accrue vacation at the
rate specified in Exhibit I that would apply to an employee employed by the City
since December 5, 2005.
b. Sick leave shall accrue and be credited to ERIC DANLY's personal account in
accordance with Exhibit 1.
C. Administrative leave shall be credited to ERIC DANLY's account at the rate of
12 days per year. Each year during the term of this Agreement ERIC DANLY
may elect to receive a payment equal to ERIC DANLY's unused administrative
leave balance in that year of up to twenty (20) hours. ERIC DANLY may carry
forward up to forty (40) hours of unused administrative leave into the next fiscal
year. ERIC DANLY may not maintain a balance of more than 136 hours of
administrative leave. 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 22, subdivision (a), paragraph (3).
Resolution No. 2017-043 N.C.S. Page 5
d. Holidays will be credited to ERIC DANLY's account in accordance with Exhibit
1.
10. Disability, Health, and Life Insurance:
a. The 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 base salary of ERIC DANLY in accordance
with Section 5.
b. The CITY agrees to provide and to pay the CITY's share of premiums for
medical, dental, and vision insurance for ERIC DANLY and his dependents in
accordance with Exhibit 1. ERIC DANLY will have the right to select medical,
dental and vision coverage from the plan options specified in Exhibit 1.
C. The CITY agrees to have in force and make required premium payments for
ERIC DANLY's participation in the CITY's current group disability plan.
11. Retirement:
CITY agrees to enroll ERIC DANLY in the California Public Retirement System,
(PERS). CITY agrees to make all the appropriate contributions on ERIC DANLY's
behalf, for the PERS employer share required, and to contribute on behalf of ERIC
DANLY seven percent (7%) of ERIC DANLY's base salary in accordance with Section
5 of this Agreement, as amended from time to time, into the City of Petaluma 401 (A)
Government Money Purchase Plan and Trust.
12. Dues and Subscriptions:
Subject to budgetary approval by the CITY, the CITY agrees to pay for professional dues
and subscriptions of ERIC DANLY necessary for ERIC DANLY's continuation and full
participation in national, regional, state and local associations and organizations
necessary and desirable for ERIC DANLY's continued professional participation, growth
and advancement and for the good of the CITY.
13. Professional Development:
a. Subject to budgetary approval by CITY, the CITY agrees to pay for, to the extent
allowed by law, travel and subsistence expenses of ERIC DANLY for official
travel, meetings and events as necessary and appropriate to continue the
professional development of ERIC DANLY and to adequately represent CITY at
gatherings such as the IMLA annual conference, California League of Cities
meetings and conferences, and such other national, regional, state and local
governmental groups and committees in which ERIC DANLY may participate as
a representative of the CITY.
b. Subject to budgetary approval by the CITY, the CITY agrees to pay for, to the
extent allowed by law, travel and subsistence expenses of ERIC DANLY for short
courses, institutes and seminars that are necessary for ERIC DANLY's
professional development and for the good of the CITY.
Resolution No. 2017-043 N.C.S. Page 6
14. General Expenses:
The CITY recognizes that certain expenses of a non -personal nature may be incurred by
ERIC DANLY for the benefit of the CITY in the course of performance of ERIC
DANLY's duties and hereby agrees to reimburse or to pay such 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, subject to budgetary approval.
15. Bonding:
The CITY will bear the full cost of any fidelity or other bonds required of ERIC DANLY
as City Attorney of the CITY under any law or ordinance.
16. 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 may take no action regarding the provisions of this Agreement, unless
both Parties agree or the action is for cause in accordance with Section 22, subdivision
(e), paragraph (1).
17. Attorney Fees:
In the event of any suit or action by either Party under this Agreement, the prevailing
party in the suit or action will be entitled to reasonable attorney fees and costs to be fixed
by the court.
18. Other Terms and Conditions of Employment:
The CITY, in consultation with ERIC DANLY, may fix any other terms and conditions
of employment, as it may determine from time to time, relating to the performance of
ERIC DANLY's duties as City Attorney, provided such terms and conditions are not
inconsistent with or in conflict with the terms of this Agreement, the Petaluma City
Charter, the Petaluma Municipal Code or any other applicable state or federal law.
19. Indemnification:
a. The CITY will defend, hold harmless and indemnify ERIC DANLY against any
tort, civil rights, personnel, discrimination, or 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 ERIC DANLY's duties as
City Attorney 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, the CITY reserves
the right to refuse to provide a defense of ERIC DANLY for the reasons set forth
in California Government Code Section 995.2 or other applicable provisions of
law.
b. Following termination of this Agreement for any reason, the CITY agrees to pay
ERIC DANLY reasonable consulting fees and travel expenses when ERIC
Resolution No. 2017-043 N.C.S. Page 7
DANLY serves as a witness, advisor and/or consultant to the CITY regarding
pending litigation.
20. Notices:
Notices pursuant to this Agreement must 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
1 I English Street
Petaluma CA 94952
b. ERIC DANLY:
Eric W. Danly
City Attorney
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 will 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.
21. Performance Evaluations:
a. The City Council will review and evaluate ERIC DANLY's performance as City
Attorney at least once annually in advance of the adoption of the annual operating
budget. The review and evaluation will be in accordance with criteria developed
jointly by CITY and ERIC DANLY. The criteria may be amended as the City
Council may from time to time determine and in consultation with ERIC
DANLY, The City Council will conduct its evaluation of ERIC DANLY in closed
session. The City Council will provide ERIC DANLY with the written evaluation
and provide an adequate opportunity for ERIC DANLY to discuss the evaluation
with the City Council.
b. In recognition of ERIC DANLY's accomplishments and objectives, and
satisfactory performance, a potential annual merit increase may be negotiated
following completion of the annual performance review and evaluation.
C. Annually, the City Council and ERIC DANLY will define and reduce to writing
such goals and performance objectives as they determine necessary for the proper
operation of the CITY and the attainment of the City Council's policy objectives,
and will further establish a relative priority among the various goals and
objectives. The annual goals and objectives will generally be attainable within the
time limitations as specified in the annual operating and capital budgets and
appropriations provided.
d. In effecting this section, the City Council and ERIC DANLY mutually agree to
abide by the provisions of applicable law.
Resolution No. 2017-043 N.C.S. Page 8
e. ERIC DANLY will coordinate with the City Manager to timely cause to be placed
on the City Council agenda each year a closed session for purpose of ERIC
DANLY's performance evaluation.
22. Termination of Employment:
a. Termination by Either Party
1. The Parties may terminate this Agreement with or without cause by giving
notice in accordance with this section and section 20 of this Agreement.
2. During the period following notice of termination by either Party and until
the termination becomes effective, all the rights and obligations of the
Parties under this Agreement will remain in effect.
3. Upon separation from CITY employment for any reason, ERIC DANLY
will be paid for all earned, accrued, and unused vacation, administrative
leave, and floating holidays, without limit.
b. Termination by ERIC DANLY without Cause:
1. For purposes of this Agreement, termination by Eric Danly without cause
will be deemed to occur when ERIC DANLY gives the City Council
written notice of termination of this Agreement without cause as defined
in this subdivision.
2. ERIC DANLY will give the CITY a minimum of sixty (60) days written
notice in advance of termination without cause, unless the Parties agree
otherwise.
3. For purposes of this Agreement, termination by ERIC DANLY without
cause means termination in the absence of an uncured material breach by
CITY of this Agreement as defined in subdivision (c) of this section.
c. Termination by ERIC DANLY with Cause:
1. For purposes of this Agreement, termination by ERIC DANLY with cause
will be deemed to occur when ERIC DANLY gives the City Council
written notice of termination of this Agreement with cause as defined in
this subdivision.
2. ERIC DANLY must declare material breach of this Agreement in writing
to the CITY specifying the basis for the declaration, and the CITY will
have thirty (30) days from receipt of notice to cure the declared material
breach.
3. For purposes of this Agreement, termination by ERIC DANLY with cause
means termination for CITY's material breach of this Agreement declared
by ERIC DANLY and not cured by the CITY in accordance with this
subdivision.
Resolution No. 2017-043 N.C.S. Page 9
d. Termination by CITY without Cause.
For the purposes of this Agreement, termination by CITY without cause will be
deemed to occur when:
1. A majority of the City Council votes to terminate ERIC DANLY at a duly
authorized public meeting without cause, as defined in subdivision (e),
paragraph (1) of this Section.
2. The City Council, the citizens of the CITY, or the California Legislature
acts to amend any provisions of the City Charter, CITY codes, or other
legislation pertaining to the role, powers, duties, authority, or
responsibilities of the City Attorney in a way that substantially changes
the form of CITY government or the role, powers, duties, authority or
responsibilities of the City Attorney. ERIC DANLY will have the right to
declare that such amendments in the absence of cause as defined in
subdivision (e), paragraph (1) of this Section constitute termination
without cause.
3. The City Council reduces the base salary, compensation or any other
financial benefit of ERIC DANLY. ERIC DANLY will have the right to
declare that such reduction in the absence of cause as defined in
subdivision (e), paragraph (1) of this Section constitutes termination
without cause.
The CITY will give ERIC DANLY a minimum of sixty (60) days written notice
in advance of termination without cause in accordance with this subdivision
unless the Parties agree otherwise.
C. Termination by CITY for Cause_
1. For purposes of this Agreement, cause for termination by CITY means:
A. Willful and repeated failure to perform the duties of City Attorney
or other material breach of this Agreement declared in writing by
CITY by notice in accordance with section 20 and not cured within
thirty days of receipt of notice of the declared material breach;
B. Conviction of ERIC DANLY for an employment related criminal
act;
C. Conviction of ERIC DANLY for a felony; or
D. A finding by a court, jury, State or Federal Attorney General, the
Fair Political Practices Commission, or any successor agency, that
ERIC DANLY engaged in intentional or negligent misconduct in
relation to the performance of ERIC DANLY's duties as City
Attorney.
2. Prior to terminating this Agreement for cause, the CITY will give ERIC
DANLY at least ten (10) days prior written notice of the charges or other
alleged cause for termination. Within the ten-day notice period, but not
Resolution No. 2017-043 N.C.S. Page 10
earlier than five days after the notice has been given, the City Council will
meet with ERIC DANLY in closed session and give ERIC DANLY an
opportunity to address the City Council regarding the alleged cause for
termination. ERIC DANLY may also choose to have complaints or
charges brought against him heard in open session in accordance with
California Government Code Section 54957, subdivision (b), paragraph 2.
After hearing ERIC DANLY's response to the alleged cause for
termination, the City Council will decide whether to terminate this
Agreement and inform ERIC DANLY in writing of its decision.
3. ERIC DANLY will not be entitled to severance pursuant to Section 23 of
this Agreement upon termination by CITY for cause in accordance with
this subdivision.
23. Severance Pay:
a. If CITY terminates this Agreement during its term without cause as defined in
Section 22, subdivision (e), then ERIC DANLY will be entitled to a severance
payment equal to seven (7) months of base salary in accordance with Section 5 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 ERIC DANLY and all
dependents as provided in Section 10, subdivision (b) for seven (7) months. At
ERIC DANLY's election, and pursuant to ERIC DANLY's written instructions at
the time of termination, 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 ERIC DANLY elect to receive severance pay in equal
payments, the number of such monthly payments will not exceed seven (7).
b. All payments required under subdivision (a) of this Section are subject to and
shall be interpreted to comply with the limitations set forth in California
Government Code Sections 53260 and 53261. The 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 ERIC DANLY finds other employment,
whichever occurs first.
C. If CITY terminates ERIC DANLY for cause in accordance with Section 22,
subdivision (e), paragraph (1), he will not be entitled to a severance payment.
24. Reimbursement Required for Conviction for Crime Involving Abuse of Office:
a. In accordance with California Government Code Sections 53243, 53243. 1, and
53243.2, if ERIC DANLY is convicted of a crime involving an abuse of his office
or position, all of the following will apply:
1. If ERIC DANLY is provided with paid leave salary pending an
investigation, ERIC DANLY must fully reimburse the CITY any salary
provided for that purpose.
2. If the CITY pays for the legal criminal defense of ERIC DANLY, ERIC
DANLY must fully reimburse CITY any funds provided for that purpose.
Resolution No. 2017-043 N.C.S. Page 1 I
3. If this Agreement is terminated, any cash settlement related to the
termination that ERIC DANLY may receive from the CITY must be fully
reimbursed to CITY, or, if a cash settlement related to termination of this
Agreement has not yet been paid, the CITY is excused from paying the
cash settlement.
b. For the purposes of this section, abuse of office or position means either:
1. an abuse of public authority, including, but not limited to, waste, fraud,
and violation of the law under color of authority; or
2. 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,
25. Miscellaneous:
a. This Agreement reflects the entire agreement between the Parties. This
Agreement may not be modified, except by written agreement executed by both
Parties.
b. Upon the Effective Date, this Agreement shall replace in its entirety the At -Will
Agreement for Employment of City Attorney entered between the CITY and
ERIC DANLY effective July 13, 2013.
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, will be deemed severable, will not be affected and will remain in
effect.
d. This Agreement will be governed by the laws of the State of California.
The Parties agree that any ambiguity in this Agreement will not be construed or
interpreted against, or in favor of, either Party.
f. This Agreement will bind and inure to the benefit of the successors, heirs and
assigns of the Parties.
ERIC DANLY
By t v
Eric W. Danly, Cit Attorney
DATED:
CITY
By #`
David Glass, Mayor
DATED: � - i
Resolution No. 2017-043 N.C.S. Page 12
AT T:
Samantha Pascoe
Deputy City Clerk Pro Tem
Resolution No. 2017-043 N.C.S. Page 13
EXHIBIT 1 _
1. Vacation Leave Accrual Rate
Vacation leave hours shall accrue at the rate specified in the schedule below:
Completed Years
of Service
Hours Earned on an Annual Basis
after Completed Years of Service
Maximum
Accrual Limit
1
128
384
2
136
408
3
144
432
4
152
456
5
160
480
6
168
504
7
176
528
8
184
552
9
192
576
10 years or more
200
600
The total amount of accrued but unused vacation may not exceed three (3) times the rate
of annual accrual as specified in the schedule above. Upon separation from employment
ERIC DANLY shall be paid for all accrued unused vacation leave.
2. Sick Leave
A. Sick Leave — Eli 'bg_r ilzty
Sick leave is not a right, which may used at discretion, but rather, sick leave shall
be used only in case of personal illness, disability or the serious illness or injury of
a family member, which requires the attention of ERIC DANLY. The term family
members shall include: spouse, children, parents, spouse's parents, brothers,
sisters or other individuals whose relationship to ERIC DANLY is that of a
dependent or near dependent.
B. Sick Leave — Accrual
,Sick leave shall accrue at the rate of eight (8) hours for each month of continuous
service.
C. Sick Leave — Transfer
If ERIC DANLY wishes to donate hours of sick leave to another employee he
may do so by sending a written request to the Human Resources office naming the
individual to receive the sick leave and the amount donated, with the following
restrictions:
a. ERIC DANLY must retain a minimum of 160 hours of sick leave to be
eligible to transfer sick leave.
IF
b. Transfer amounts shall be limited to the number of actual hours needed
and used by the receiving employee,
c. Any donated sick leave hours unused by recipient shall be returned to the
donor. The employee receiving the sick leave transfer must have zero (0)
hours of accrued sick leave, vacation, and CTA leave on the books.
d, Employees may not buy or sell sick leave. Only the time may be
transferred.
e. Employees may not transfer sick leave upon separation of service,
£ Transfer of sick leave shall be allowed.
g. No more than ninety (90) workdays of sick leave may be received by an
employee for any one illness or injury.
D. Sick Leave — Retirement Pam
In the event of the death or retirement and the completion of ten (10) or more
years of continuous employment with the City, ERIC DANLY shall be paid or
shall receive a benefit of fifty percent (50%) of his accumulated but unused sick
leave not to exceed four -hundred -eighty (480) hours. He may elect not to receive
this benefit and instead place all sick leave hours into the CalPERS sick leave
conversion benefit.
3, Holidays and Holiday Leave
The City observes the following twelve (12) holidays:
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
The actual date of the observed holidays is determined by City Council resolution each
fiscal year.
Holiday leave shall be provided at the rate of eight (8) hours for each of the holidays
observed. If participating in an alternate 4/10 or 9/80 schedule, ERIC DANLY shall use
his own leave to fulfill the requirement of recording total hours taken off for the holiday.
4. Floathig Holiday
Each fiscal year ERIC DANLY shall be provided one 8 -hour floating holiday which may
be taken by him at a time he selects, subject to operational requirements of the City,
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5. Health Benefits
A. 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
each employee shall be the minimum required byPEMHCA, The Citypays this
contribution directly to CalPERS,
B. Additional Benefit Amount Paid by the City
The City shall pay the additional contribution amount specified in the schedule
below entitled "Maximum Additional Benefit Contributed by the City" for ERIC
DANLY and his covered family members.
The 2014 CalPERS Premium for Kaiser-Bay-Area/Sacramento and required 2014
PEMHCA Contribution is unknown. Effective January 1, 2014 the City shall pay
an additional benefit that depends upon the actual percentage increase in the
Kaiser-Bay-Area/Sacramento premium. The City's additional benefit contribution
for 2014 shall be up to a 9% increase of the 2013 Health Plan Rate specified in
schedule above, less the City's PEMHCA contribution, times 95% or an amount
equal to the actual 2014 CalPERS Health Premium for Kaiser-Bay-
Area/Sacramento, less the City's PEMHCA contribution, times ninety-five
percent (95%) for ERIC DANLY and his covered family members, whichever is
less,
C. Additional Benefit— Effective January. 1,2014
2013 Health
City
Maximum. Additional
Total Benefit
Coverage
plan Rate
PEMHCA
Benefit Contributed
Contributed by the
PEMHCA
Additional Benefit
Contribution
by the City
city
Single
$665.38
$115.00
$522.86
$637.86
2 -Party
1 $1,330.76
$115.00
$1,154.97
$1269.97
Family
$1,729.98 1
$115.00
$1,534.23
$1,649.23
The 2014 CalPERS Premium for Kaiser-Bay-Area/Sacramento and required 2014
PEMHCA Contribution is unknown. Effective January 1, 2014 the City shall pay
an additional benefit that depends upon the actual percentage increase in the
Kaiser-Bay-Area/Sacramento premium. The City's additional benefit contribution
for 2014 shall be up to a 9% increase of the 2013 Health Plan Rate specified in
schedule above, less the City's PEMHCA contribution, times 95% or an amount
equal to the actual 2014 CalPERS Health Premium for Kaiser-Bay-
Area/Sacramento, less the City's PEMHCA contribution, times ninety-five
percent (95%) for ERIC DANLY and his covered family members, whichever is
less,
C. Additional Benefit— Effective January. 1,2014
W
Up to 9%
Increase of 2013
Cita 1, s
Maximum
Coverage
Health Plan Rate
PEMHCA
Additional Benefit
or actual 2014
Contribution
Contributed
Kaiser Rate,
by the City
whichever is less
Up to 9% Increase of 2013 Health Plan Rate
specified in section 21.6, less the City's
Up to $725,26 or
PEMHCA contribution, times 95% or the actual
Single
actual whichever
Unknown
2014 CalPERS Health Premum for Kaiser-Bay-
is less
Area/Sacramento, less the City's PEMHCA
contribution, times 95%, whichever is less,
Up to $1,450.53
2 -Party
or actual
Unknown
whichever
W
D. Additional Contribution Caped at 2014 Rate
The amount of the City's additional contribution shall be capped at the
contribution levels established effective January 1, 2014, and shall not increase,
regardless of whether or not premiums increase in the future, unless approved by
the City Council.
E. ERIC DANLY'S Contribution
ERIC DANLY shall contribute to his Ca1PERS Health Premium in the amounts less
the City's PEMHCA contribution and less the additional benefit paid by the City.
6. Health Benefits — Retired
A. Retired — Ca1PERS and PEMHCA
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 a retired employee to be
eligible to receive health benefits through Ca1PERS upon retirement, a retired
employee must meet the following definition of "annuitant" under Ca1PERS law:
i. Employee must be a member of Ca1PERS; and
ii. 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 Ca1PERS.
For calendar year 2013, the formula for determining the City's PEMHCA contribution
for retirees is as follows: 19 years in the PEMHCA program x 5% = 95% x $115
(minimum employer contribution for 2013) _ $109.25
Effective calendar year 2014, the "unequal contribution" method for health care
premium payments for annuitants (retirees) will be at the twenty year mark. Thus, the
City's contribution for the PEMHCA program will be at 100% (5% x 20 years).
Therefore the monthly employer contribution for annuitants is the required minimum
PEMHCA contribution.
The City pays this contribution directly to Ca1PERS. 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.
C. CalPERS Annuitant — PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a Ca1PERS
annuitant as defined by Ca1PERS and receives health benefits under the
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is less
Up to $1,885.68
FamilyOr
actual
Unknown
whichever
is less
D. Additional Contribution Caped at 2014 Rate
The amount of the City's additional contribution shall be capped at the
contribution levels established effective January 1, 2014, and shall not increase,
regardless of whether or not premiums increase in the future, unless approved by
the City Council.
E. ERIC DANLY'S Contribution
ERIC DANLY shall contribute to his Ca1PERS Health Premium in the amounts less
the City's PEMHCA contribution and less the additional benefit paid by the City.
6. Health Benefits — Retired
A. Retired — Ca1PERS and PEMHCA
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 a retired employee to be
eligible to receive health benefits through Ca1PERS upon retirement, a retired
employee must meet the following definition of "annuitant" under Ca1PERS law:
i. Employee must be a member of Ca1PERS; and
ii. 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 Ca1PERS.
For calendar year 2013, the formula for determining the City's PEMHCA contribution
for retirees is as follows: 19 years in the PEMHCA program x 5% = 95% x $115
(minimum employer contribution for 2013) _ $109.25
Effective calendar year 2014, the "unequal contribution" method for health care
premium payments for annuitants (retirees) will be at the twenty year mark. Thus, the
City's contribution for the PEMHCA program will be at 100% (5% x 20 years).
Therefore the monthly employer contribution for annuitants is the required minimum
PEMHCA contribution.
The City pays this contribution directly to Ca1PERS. 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.
C. CalPERS Annuitant — PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a Ca1PERS
annuitant as defined by Ca1PERS and receives health benefits under the
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PEMHCA, the employee is eligible to receive the City's PEMHCA contribution
amount specified below, regardless of the number of years of service with the City
of Petaluma,
D. 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.
E. 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 by CalPERS and enrolled in the
CalPERS health benefit program is eligible to receive the City's PEMHCA.
contribution amount specified in the chart below:
Calendar Year City Monthly PEMHCA contribution
2013 $109.25
2014 Minimum PEMHCA contribution as set by CalPERS.
F. 20 Years or More of service — Not receiving ri✓mrnUx nearin tennis
A retired employee with twenty (20) or more years of service with the City of
Petaluma who is not enrolled in the CalPERS health benefits program shall
receive direct payments in the amount of one -hundred -forty dollars ($140,00) each
month, effective the first month following the expiration of health benefit coverage.
G. 20 Years or More of Service -- Receiving YEMHUA Neaitn tienents
A retired employee with twenty (20) years or more of service with the City of
Petaluma who is a CalPERS annuitant as defined by CalPERS and enrolled in the
CalPERS health benefit program shall receive a benefit payment of one -hundred -
forty dollars ($140.00) per month minus the City's monthly PEMHCA and specified
in the chart below.
The following chart indicates the amount of the City's PEMHCA contribution and
the amount of the cash payment to the retiree when the retiree is receiving
PEMHCA health benefits:
Calendar
City Monthly
City Monthly Cash Retiree
Total
Year
PEMHCA
Benefit
Benefit
contribution
Amount
2013
$109.25
$30.75
$140.00
Minimum PEMHCA
Total benefit amount of $140.00
2014
contribution as set by
minus City monthly PEMHCA
$140.00
CalPERS.
contribution
It is the responsibility of the retiree to notify -the City in writing if he or she is no longer
participating in the CalPERS health benefit program. Following receipt of the written
notice, the City will commence direct payment of the one -hundred -forty dollars
($140.00) at the beginning of the following month,
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7. California Public Employees' Retirement System
Effective January 1, 2013 the City of Petaluma became subject to the Public Employees'
Pension Reform Act of 2013 (PEPRA) and benefits offered to newly hired employees
will be in accordance with PEPRA.
Prior to January 1, 2013, the City established a different level of benefits (two-tiered
retirement) for Miscellaneous employees. The amended contract provides that
Miscellaneous employees hired on or after December 28, 2012 shall receive the 2% at 60
formula retirement plan and the three-year final average compensation.
The City's contract with Ca1PERS includes the following optional benefits;
« Third Level - 1959 Survivor's Benefit as provided in Section 21573 (April 5, 1999).
• Military Service Credit as provided in Section 21024 (January 1, 1992).
• Credit for Unused Sick Leave as provided in Section 20965 (November 1, 1980).
• Cost of Living Allowance two percent (2%) as provided by Section 21329 (April 1,
1971).
• Retired Death Benefit of five -hundred dollars ($500.00) as provided in Section 21620
(December 1, 1969).
• Death Benefit Continues as provided in Section 21551 (January 1, 2000),
• Prior Service Credit as provided in Section 20055 (January 1, 1950).
The City shall defer that portion of ERIC DANLEY'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.
$, Cash Zn -Lieu of Health and Dental Benefits
If ERIC DANLY has health and or dental benefit insurance coverage from a source other
than the City, or health and dental benefit insurance coverage from a City employee, 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.
The cash in -lieu amount for health coverage shall be in the amount of fifty percent (501A)
of the health insurance premium amount of the Ca1PERS Kaiser — Bay-Area/Sacramento
that the City would otherwise pay for the employee and his or her 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.
Upon declining medical and/or dental insurance, he will be required to meet the terns
and conditions regarding the 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
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9.
10.
11.
12.
medical and/or dental plan, he may be able to re -enroll in his/her prior plan and under the
same terms and conditions of his prior plan.
Section 125 Plan
The City of Petaluma shall make available to ERIC DANLY an Internal Revenue Code
(IRC) Section 125 plan. The Section 125 plan is subject to federal law and plan'
provisions.
The Section 125 Plan offered by the City provides a tax savings through the following
programs;
Pre -Tax Health Insurance Premiums
This program allows employees to pay his or her share of health insurance premiums with
pre-tax dollars.
Flex Spending Accounts (FSAs)
i. 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.
ii. Dependent Care Reimbursement
This program permits employees to pay for most child and or dependent care
expenses with pre-tax dollars.
Dental Insurance
The City shall provide a dental plan and pay the total premium costs for ERIC DANLY
and his eligible dependents. The maximum benefit amount is one -thousand -five -hundred
dollars ($1,500.00) per person per calendar year, Orthodontic coverage shall be provided
for dependent children under the age of nineteen (19) years and is 50% of the dentist's
allowed fee (subject to a $1,000.00 lifetime maximum per person).
Vision Insurance
The City shall provide a vision plan and pay the total premium costs for ERIC DANLY
and his eligible dependents. The vision plan shall provide 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).
Employee Assistance Program
The City "will provide an Employee Assistance Program to ERIC DANLY and his
immediate family. This licensed counseling service will provide assistance and referrals
for marriage and family problems, alcohol and drag dependency, emotional, personal, and
stress-related concerns and other issues. All counseling services are confidential.
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13. Long Term Disability Insurance
The City shall provide ERIC DANLY with the same long -tern disability benefit plan as
provided to City employees as outlined in Attachment 1 — Long Tenn Disability
Insurance for Employees of City of Petaluma, Currently that benefit plan is provided
through CIGNA and replaces 60% of annual earnings to a maximum of $3,000 per month
after being disabled for 60 days.
14. Deferred Compensation
The City of Petaluma shall make available to ERIC DANLY a Deferred Compensation
Plan.
15. .Industrial Injury Leave
Benefits shall be payable in situations where ERIC DANLY'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 fall pay.
Following this period, sick leave may be a supplement to the workers' compensation
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 that 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 benefits
plus sick leave.
Sick leave for industrial injury shall not be allowed for a disability resulting from
sickness, self-inflicted injury, or willful misconduct.
The City may retire ERIC DANLY 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 his Agreement,
16. Bereavement Leave
ERIC DANLY 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 the
employee has a relationship in loco parentis, Up to an additional eight (8) hours of
accrued sick leave maybe granted to supplement bereavement leave.
In the event ERIC DANLY 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,
25
17. Victims of Domestic Violence and Sexual Assault Leave
The City of Petaluma provides appropriate leave, in accordance with California Labor
Code Section 230.
18. Military Leave
The City of Petaluma shall grant military leave benefits to eligible employees in
accordance with California's Military Leave Laws found in Military & Veteran's Code
389 et seq., the Federal Uniformed Services Employment and Re-employment Rights Act
(USERRA), found at 389 U.S.C. 4301
et seq., and the City of Petaluma Resolution No. 2004-200 N.C.S. Employees in the
Ready Reserves of the Armed Forces who are ordered to active military duty or training
under Executive Order 13223, shall have continued benefits in effect throughout his/her
active duty training for a period of three -hundred sixty-five (365) calendar days or until
the date of discharge from military service, whichever occurs first, unless this policy is
changed by action of the City Council,
19, Election Officer and Voting Leave
If ERIC DANLY' 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. He must provide the City with at
least two (2) working days' notice that he will be taking time off to vote.
20. School Visitation Leave
The City of Petaluma provides up to forty (40) hours of unpaid leave in a year to
participate in the child's school activities, in accordance with Labor Code section 230.8.
21. Leave of Absence without Pay
The City Council may grant ERIC DANLY with a leave of absence without pay pursuant
to State and Federal Law. Good cause being shown by a written request, the City Council
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
ERIC DANLY setting forth the reason for the request, and the approval will be in writing.
22, Jury Duty Leave
Should ERIC DANLY be 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. He 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 furor. For
Grand Juries this compensation shall not extend beyond twenty (20) working days.
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23. Family Care and Medical Leave (FMLA & CFRA)
FMLA and/or CFRA Leave
The City shall provide family and medical care leave for ERIC DANLY 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). If possible, employees must provide thirty (30) days advance notice of leave.
FMLA and/or CFRA— Second Opinion
ERIC DANLY shall provide the City with a health care provider certification. The 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.
27