HomeMy WebLinkAboutRESOLUTION 2024-030 N.C.S. 04/08/2024 DocuSign Envelope ID:D3211340-CC43-4F3B-96A8-09416C01687A
Resolution No. 2024-030 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING A THIRD
AMENDED AND RESTATED EMPLOYMENT AGREEMENT FOR AT-WILL EMPLOYMENT OF
CITY MANAGER AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT ON BEHALF
OF THE CITY
WHEREAS,since January 28, 2019,Peggy Flynn has served as the City Manager of the City of Petaluma;
and
WHEREAS, Ms. Flynn's salary, benefits, and conditions of employment are documented in an Agreement
for At-Will Employment of the City Manager; and
WHEREAS, on December 19,2022,the City Council approved an Amended and Restated Agreement for At-
Will Employment with Ms.Flynn by a 7-0 vote; and
WHEREAS, the City Council recently completed a performance evaluation for Ms. Flynn and Section 7 of
the Agreement permits salary adjustments to her salary from time to time; and
WHEREAS, it is the desire of the Petaluma City Council, as the governing board of the City, to adjust Ms.
Flynn's base salary and amend her vacation payout benefit; and
WHEREAS,Exhibit A to this Resolution is a Third Amended and Restated Employment Agreement for At-
Will Employment of City Manager; and
WHEREAS, the Third Amended and Restated Agreement reflects an updated salary of$291,000 annually,
amends her vacation payout benefit,and cleans up other miscellaneous benefit language; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act (CEQA) in accordance with CEQA Guidelines Section 15378(b)(4), in that, approving this action does not
meet CEQA's definition of a"project,"because the action does not have the potential for resulting either a direct
physical change in the environment or a reasonably foreseeable indirect physical change in the environment,and
because this is a personnel-related action that constitutes organizational or administrative activities of
governments that will not result in direct or indirect physical changes in the environment.
NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Petaluma as follows:
1. Declares the above recitals to be true and correct and are incorporated into this resolution as findings of the
City Council.
2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378(b)(4), in that, approving this action does not
meet CEQA's definition of a "project," because the action does not have the potential for resulting either a
direct physical change in the environment or a reasonably foreseeable indirect physical change in the
environment, and because this is a personnel-related action that constitutes organizational or administrative
activities of governments that will not result in direct or indirect physical changes in the environment.
Resolution No. 2024-030 N.C.S. Page 1
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3. The Third Amended and Restated Employment Agreement for At-Will Employment of the City Manager
attached to and made a part of the resolution as Exhibit A is hereby approved.
4. The Mayor is hereby authorized and directed to execute on behalf of the City the Third Amended and Restated
Employment Agreement for At-Will Employment of the City Manager with Peggy Flynn that is substantially
in accordance with that attached to this resolution as Exhibit A.
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 as to
Council of the City of Petaluma at a Regular meeting on the 8'h day ofApri12024, 7,,rm
.
by the following vote:
ity Atto ey
AYES: McDonnell,Barnacle,Cader Thompson,Healy,Nan,Pocekay,Shribbs
NOES: None
ABSENT: None
ABSTAIN: None
DOo nod by: Docu-Signed by:
ATTEST: �r�gt
S 644'dAD6247o
City e Mayor
Resolution No. 2024-030 N.C.S. Page 2
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THIRD SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT
FOR AT-WILL EMPLOYMENT OF CITY MANAGER
Background
Peggy Flynn possesses the necessary education, experience, skills,and expertise to serve
as the Petaluma City Manager, and the Petaluma City Council desires to employ her in that
capacity. Peggy Flynn desires to serve as the Petaluma City Manager in accordance with the
City Council's direction as the City's legislative body,and all applicable laws,regulations,and
rules.
Accordingly, on January 28,2019,by a vote of 7=0 the Petaluma City Council adopted
Resolution no. 2019-013 approving and authorizing the Mayor to execute on behalf of the City
this Agreement for At-Will Employment of City Manager("Agreement")appointing Peggy
Flynn as City Manager of the City of Petaluma.
The City Council has recently concluded a performance evaluation for Ms. Flynn and,
per Section 7(b)of the Agreement,has agreed to adjust her base salary and amend her vacation
payout benefit _. "
similar tolar to Unit 8,which is comprised of unrepresented
employees. This ThirdSeeend Amended and Restated Employment Agreement for At-Will
Employment of City Manager memorializes these compensation changes, as well as updates
various benefit provisions that are contained in the Attachment 1 to this Agreement.
Agreement
This Agreement is made by the City of Petaluma, ("the CITY"), a California charter city,
and Peggy Flynn("CITY MANAGER"). The CITY and CITY MANAGER may be referred to
individually in this Agreement as a PARTY and collectively as "the PARTIES." This
Agreement will be effective February 25,2019 (the "Effective Date"),which will be CITY
MANAGER's first day of employment as the Petaluma City Manager. The PARTIES agree as
follows:
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City Manager Peggy Flynn
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1. Appointment of City Manager:
Commencing on the Effective Date, CITY MANAGER is hereby appointed as City
Manager of the City of Petaluma in accordance with this Agreement and all applicable
laws,regulations,and rules.
2. Term:
The term of this Agreement("Term") shall commence on the Effective Date and continue
for a three-year period expiring on February 25, 2022 (the"Expiration Date").
Notwithstanding the Expiration Date, the Term will automatically extend by an additional
year without further notice or action of the PARTIES commencing on February 25 of
each year, thereby establishing a new three-year Term and new Expiration date,unless
either PARTY gives the other written notice of termination by or before November 25. If
either PARTY provides notice of termination in accordance with this provision, the Term
will expire at the conclusion of the three-year Term then in effect without further notice
or action of the PARTY,unless the PARTY giving notice of termination rescinds the
notice in writing before the commencement of the final year of the Term then in effect.
Notwithstanding this provision,this Agreement may be terminated before the expiration
of the Term in accordance with Section 20.-If the CITY terminates this Agreement by
giving notice in accordance with this section,the City will have no obligation to pay
severance pursuant to Section 21 regarding such termination.
3. At-Will Employment:
CITY MANAGER 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 CITY MANAGER, and nothing in this Agreement confers upon CITY
MANAGER any right to or expectation of any right or property interest in continued
employment by the CITY. If the CITY terminates CITY MANAGER's employment,
whether with or without cause, CITY MANAGER 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 CITY MANAGER to resign at any time subject to the
requirements in Section 20 of this Agreement.-Past or future CITY enactments or other
actions of the City Council may designate CITY MANAGER as the chief executive of
other CITY-related legal entities, such as financing authorities and/or joint powers
agencies.
ThirdSeemd Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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4. CITY MANAGER Obligations and Understandings
a. Duties and Authority
i. CITY MANAGER shall be the chief executive officer of the City and be
responsible to the City Council for the proper administration of all City affairs.
ii. CITY MANAGER shall be vested with all of the powers and perform all of the
duties as set forth concerning CITY MANAGER's position in applicable laws
of the State of California,the Petaluma Charter(including,without limitation,
Sections 23 and 24 of Article VI), the Petaluma Municipal Code, CITY
ordinances and resolutions, and City Council policies as may be established
from time to time, and such other duties and functions as the City Council may
from time to time assign.
iii. The CITY MANAGER shall administer and enforce polices established by the
City Council and promulgate rules and regulations as necessary to implement
such policies. Accordingly, CITY MANAGER shall be required to:
A. Attend all meetings of the City Council,unless excused.
B. Direct the review of all agenda documents and preparation of the agenda for
all regular and special meetings of the City Council.
C. Direct the work of all CITY officers, employees and departments appointed
by and/or under the supervision of the CITY MANAGER.
D. Implement changes that the CITY MANAGER believes will result in
greater efficiency, economy, or improved public service in the
administration of CITY affairs.
E. From time to time,recommend to the City Council adoption of such
measures as the CITY MANAGER may deem necessary or expedient for
the health, safety, or welfare of the community, or for the improvement of
CITY services. The CITY MANAGER shall conduct and direct research in
administrative practices in order to bring about greater efficiency and
economy in CITY government and develop and recommend to the City
Council long-range plans to improve CITY operations and prepare for future
CITY growth and development.
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F. From time to time, and based on the CITY MANAGER's best judgment,
propose to the City Council the consolidation, or combination or
reorganization of offices,positions,departments, or units under the CITY
MANAGER's authority and/or supervision. The CITY MANAGER may be
the head of one or more CITY departments.
G. Provide management training and develop leadership qualities among
department heads as necessary to build a CITY management team that can
plan for and meet future challenges.
H. Exercise control of CITY government in emergencies as authorized by the
Petaluma Municipal Code and other applicable law.
b. Hours of Work
i. CITY MANAGER is an exempt employee. CITY MANAGER is expected to
engage in those hours of work that are necessary to fulfill the obligations of
the CITY MANAGER's position. The position does not have set hours of
work and the CITY MANAGER is expected to be available, as necessary, at
all times.
ii. It is recognized that the CITY MANAGER must devote substantial time to the
business of the CITY outside of the CITY's customary business hours, and to
that end the CITY MANAGER's schedule of work each day and week shall
vary in accordance with the work required to be performed. The CITY
MANAGER shall spend sufficient hours on site to perform her duties.
However,the CITY MANAGER has discretion over the City Manager's work
schedule and work location.As an exempt employee,CITY MANAGER will
not receive overtime or extra compensation for work performed outside
normal business hours. However,CITY MANAGER will receive
administrative leave in accordance with section 11(c).
iii. The CITY MANAGER shall not spend more than 12 hours per month in
teaching, consulting, speaking or other non-CITY connected business for
which compensation is paid without the express,prior written consent of the
City Council. Except as specified in this paragraph,the CITY MANAGER
agrees to remain in the exclusive employ of the CITY, and to devote her full
productive time and attention to the CITY's business during the term of this
Agreement in accordance with its terms.
5. CITY Obligations and Understandings
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a. The CITY shall provide the CITY MANAGER with the compensation,incentives and
benefits specified in this Agreement,as from time to time amended by written
consent of both PARTIES.
b. The CITY shall provide the CITY MANAGER with a private office, administrative
support, staff, office equipment, supplies, and automobile allowance as specified in
this Agreement, and all other facilities and services reasonably necessary for the
performance of her duties.
c. The CITY shall pay for(or provide the CITY MANAGER reimbursement for) all
actual business expenses. The CITY shall provide the CITY MANAGER a credit
card to charge appropriate and lawful CITY business expenses.
d. The CITY agrees to pay the professional dues, subscriptions,travel,and subsistence
expenses on behalf of the CITY MANAGER which are necessary for the CITY
MANAGER's continuation and full participation in national, regional, state,and local
associations and organizations necessary and desirable for the CITY MANAGER's
continued professional growth and advancement.-Said reimbursement includes
governmental groups and committees upon which the CITY MANAGER serves or
may serve as a member.-Said expenses may also be reimbursed or paid for or on
behalf of the CITY MANAGER for short courses, institutes and seminars that are
necessary for the professional development of the CITY MANAGER.
e. Given the importance of technological tools to the effective and efficient conduct of
the CITY's business,the CITY shall provide computer,laptop computer,printer,
high-speed internet access, cellular phone, IPad or subsequent type devices, electronic
calendar,fax, copy machine and similar devices to the CITY MANAGER at the
CITY's expense,both at the CITY MANAGER's office and at the CITY
MANAGER's residence as needed to carry out the duties of the position. All such
equipment shall remain the property of the CITY.
f. The City Council sets policy for the governance and administration of the CITY, and
it implements its policies through the CITY MANAGER.
g. The City Council recognizes that to meet the challenges facing the CITY it must
exercise decisive policy leadership.-As one step in carrying out this leadership
responsibility, the City Council commits to spending time each year outside of
regular City Council meetings to work with the CITY MANAGER and staff on
setting goals and priorities for the CITY government, and to work on issues that may
be inhibiting the maximum achievement of CITY goals.
Thirdd Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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h. In accordance with Section 24(B)of Article VI of the Petaluma Charter: neither the
City Council nor any of its appointees shall dictate,or interfere with the exercise of
the CITY MANAGER's judgment regarding the appointment, discipline or removal
of subordinate officers or employees in the administrative service of the CITY; and
except for the purpose of inquiry,the City Council will deal with the administrative
service solely through the CITY MANAGER, and the City Council members will not
give orders to subordinates of the CITY MANAGER.
i. The City Council members will coordinate with the CITY MANAGER such that
criticism of CITY staff members shall be done privately through the CITY
MANAGER.
j. The City Council members will not interfere with the execution of the powers and
duties of the CITY MANAGER. -The CITY MANAGER is expected to be
appropriately and promptly responsive to all City Council members, collectively and
individually,but shall take orders and direction from the City Council when it is
sitting as a body in a lawfully-held meeting.
6. Mutual Obligations and Understandings
a. Annual performance evaluations are an important way for the City Council and CITY
MANAGER to ensure effective communications about expectations and
performance.
b. The City Council recognizes that for the CITY MANAGER to respond to its needs
and to grow in the performance of the CITY MANAGER's role, it is necessary for
the City Council to provide the CITY MANAGER performance feedback.
c. To provide the CITY MANAGER performance feedback, the City Council will
conduct an evaluation of the CITY MANAGER's performance at least once a year.
Performance evaluations for the purpose of mid-course corrections may occur more
often than once a year.-The City Council may choose to establish a subcommittee to
meet with the CITY MANAGER periodically over the course of each year to measure
progress on stated goals and priorities.
d. The CITY MANAGER's annual performance evaluation shall use criteria developed
jointly by the City Council and CITY MANAGER.
e. The City Council and CITY MANAGER shall define such goals and performance
objectives as they mutually determine are necessary for the proper operation of the
CITY for the attainment of the Citv Council's policy objectives and shall establish
relative priority of the CITY goals and performance objectives.
Third£eeend Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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7. Compensation:
a. Effective the first full pay period following City Council approval of this Agreement
on:ADrilpeeembeT 84-9.20243,the CITY MANAGER's annual base salary shall be
increased from $244,800248,ON to an
adjttsted annual base salary of$291.000__4 ,; ,payable in installments at the same
time that the other management employees of the CITY are paid.
b. The 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
salary review of CITY MANAGER.
8. Benefits:
CITY MANAGER will be entitled to the benefits specified in Attachment 1 which is
attached to and made a part of this Agreement.
9. Disability:
If CITY MANAGER is permanently disabled or otherwise unable to perform her duties
because of sickness, accident, injury,mental incapacity or health for a period of ninety
(90)successive days beyond any accrued sick leave, subject to satisfaction of the CITY's
reasonably accommodation obligations,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 21.
10. Use of Vehicle:
CITY MANAGER will be provided a monthly automobile allowance of$400-.W in
exchange for making her vehicle available for her own use and for CITY--related
business and/or functions during,before,and after normal working hours. The monthly
automobile allowance is intended to defray costs that the CITY MANAGER incurs in
utilizing her personal vehicle for CITY business. The automobile allowance shall appear
on the CITY MANAGER's payroll stub as ordinary income and part of her salary but
will not be considered part of the CITY MANAGER's base salary for purposes of this
Agreement.
11. Vacation, Sick,Administrative and Holiday Leave:
a. Vacation leave shall accrue and be credited to CITY MANAGER's personal account
in accordance with Attachment 1.
Thirds Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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b. Sick leave shall accrue and be credited to CITY MANAGER's personal account in
accordance with Attachment 1.
c. Administrative leave shall be credited to CITY MANAGER's personal account at the
rate of 96 hours per year.-The City Council's recognizes that it may be difficult for
the CITY MANAGER to make frill use of her accrued administrative leave during the
first two years of the Term.-Accordingly,commencing on the Effective Date and
expiring February 25,2021,CITY MANAGER may elect to receive a payment equal
to CITY MANAGER's unused administrative leave balance in that year of up to fifty
(50)hours. Beginning on February 25, 2021 and thereafter,without further action of
the PARTIES,unless this Agreement is otherwise amended,CITY MANAGER may
elect to receive a payment equal to CITY MANAGER's unused administrative leave
balance in that year up twenty(20)hours.-CITY MANAGER may carry forward up
to forty (40)hours of unused administrative leave into the next fiscal year. -CITY
MANAGER 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
20(a)(3).
d. Holidays will be credited to CITY MANAGER's account in accordance with
Attachment 1.
12. 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 CITY MANAGER as specified in
Section 7,plus $75.000. up to a maximum benefit of$375.000:
b. The CITY agrees to provide and to pay the CITY's share of premiums for medical,
dental, and vision insurance for CITY MANAGER and her dependents in accordance
with Attachment 1.-CITY MANAGER will have the right to select medical, dental
and vision coverage from the plan options specified in Attachment 1.
c. The CITY agrees to have in force and make required premium payments for CITY
MANAGER's participation in the CITY's current group disability plan.
13. Retirement:
a. CITY MANAGER has previously been enrolled into the California Public
Employment Retirement System("PERS")and CITY will continue CITY
MANAGER's enrollment in PERS during the Term and make all required
contributions on the CITY MANAGER's behalf making up the entire employer's
Third$eeend Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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share of CITY MANAGER's participation in PERS.-CITY MANAGER will pay all
required contributions on the CITY MANAGER's behalf making up the entire
employee's share of CITY MANAGER's participation in PERS.
b. CITY MANAGER has been enrolled in PERS through an agency that participates in
PERS as a classic employee and has participated and shall continue to participate
during the Term in the 2% at 60 formula retirement plan provided to Miscellaneous
PERS members, calculated at the single highest one-year rate of compensation.
c. CITY MANAGER's participation in the PERS 2%at 60 retirement plant for
Miscellaneous PERS members pursuant to the CITY's contract with PERS includes
the optional benefits in the CITY's PERS contract that are specified in Attachment 1.
14. Bonding:
The CITY will bear the full cost of any fidelity or other bonds required of CITY
MANAGER under any law or ordinance.
15. 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 20(e).
16. 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.
17. Other Terms and Conditions of Employment:
The City Council, in consultation with CITY MANAGER,may fix any other terms and
conditions of employment, as it may determine from time to time,relating to the
performance of CITY MANAGER's duties,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.
18. Indemnification:
a. The CITY will defend,hold harmless and indemnify CITY MANAGER against any
tort, civil rights,personnel, discrimination, or professional liability claim or demand
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or other legal action,whether groundless or otherwise, arising out of an alleged act or
omission occurring in the performance of 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,the 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 of this Agreement for any reason, the CITY agrees to pay
CITY MANAGER reasonable consulting fees and travel expenses when CITY
MANAGER serves as a witness, advisor and/or consultant to the CITY regarding
pending litigation.
19. 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
11 English Street
Petaluma CA 94952
b. CITY MANAGER:
Peggy Flynn
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.
20. Termination of Employment:
a. Termination by Either Party
i. The PARTIES may terminate this Agreement with or without cause by giving
notice in accordance with Section 2..Section 19, and this Section 20 of this
Agreement, as applicable.
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ii. 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.
iii. Upon separation from CITY employment for any reason, CITY MANAGER
will be paid for all earned,accrued, and unused vacation, administrative leave,
and floating holidays, subject to the limits on payments for unused
administrative leave in Section 11(c).
b. Termination by CITY MANAGER without Cause:
i. For purposes of this Agreement,termination by CITY MANAGER without
cause will be deemed to occur when CITY MANAGER gives the City
Council written notice of termination of this Agreement without cause as
defined in this provision.
ii. CITY MANAGER will give the CITY a minimum of sixty(60) days written
notice in advance of termination without cause„unless the PARTIES agree
otherwise.
iii. For purposes of this Agreement,termination by CITY MANAGER without
cause means termination in the absence of an uncured material breach by
CITY of this Agreement as defined in provision(c) of this section.
c. Termination by CITY MANAGER with Cause:
i. For purposes of this Agreement,termination by CITY MANAGER with cause
will be deemed to occur when CITY MANAGER gives the City Council
written notice of termination of this Agreement with cause as defined in this
provision.
ii. CITY MANAGER 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.
iii. For purposes of this Agreement,termination by CITY MANAGER with cause
means termination for CITY's material breach of this Agreement declared by
CITY MANAGER and not cured by the CITY in accordance with this
provision.
d. Termination by CITY without Cause.
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i. For the purposes of this Agreement,termination by CITY without cause will
be deemed to occur when:
A. A majority of the City Council votes to terminate CITY MANAGER at a
duly authorized public meeting without cause,as defined in provision(e)
(1) of this Section.
B. 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 MANAGER in a way that substantially
changes the form of CITY government or the role,powers, duties, authority
or responsibilities of the CITY MANAGER. CITY MANAGER will have
the right to declare that such amendments in the absence of cause as
defined in provision(e)(1) of this Section constitute termination without
cause.
C. The City Council unilaterally reduces the base salary, compensation or any
other financial benefit of CITY MANAGER. CITY MANAGER will have
the right to declare that such reduction in the absence of cause as defined in
provision(e)(1)of this Section constitutes termination without cause.
D. The CITY will give CITY MANAGER a minimum of sixty(60)days
written notice in advance of termination without cause in accordance with
this provision unless the PARTIES agree otherwise.
e. Termination by CITY for Cause:
i. For purposes of this Agreement,cause for termination by CITY means:
A. 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 19 and this Section 20 and not cured
within thirty days of receipt of notice of the declared material breach;
B. Conviction of CITY MANAGER for an employment related criminal act;
C. Conviction of CITY MANAGER 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 CITY
MANAGER engaged in intentional or negligent misconduct in relation to
the performance of the CITY MANAGER's duties.
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ii. Prior to terminating this Agreement for cause,the CITY will give CITY
MANAGER 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 earlier
than five days after the notice has been given,the City Council will 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 complaints or
charges brought against her heard in open session in accordance with
California Government Code Section 54957,subdivision(b),paragraph 2.
After hearing CITY MANAGER's response to the alleged cause for
termination,the City Council will decide whether to terminate this Agreement
and inform CITY MANAGER in writing of its decision.
iii. CITY MANAGER will not be entitled to severance pursuant to Section 21 of
this Agreement upon termination by CITY for cause in accordance with this
section.
21. Severance Pay:
a. If CITY terminates this Agreement during its term without cause as defined in
Section 20(e),then CITY MANAGER will be entitled to a severance payment equal
to seven(7)months of base salary specified Section 7 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 12(b) and
Attachment 1 for seven(7)months.At CITY MANAGER's election, and pursuant to
CITY MANAGER'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 CITY MANAGER elect to
receive severance pay in equal payments,the number of such monthly payments will
not exceed seven(7).
b. All payments required under 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 CITY
MANAGER finds other employment,whichever occurs first.
c. If CITY terminates CITY MANAGER for cause in accordance with Section 20(e),
she will not be entitled to a severance payment.
22. Reimbursement Required for Conviction for Crime Involving Abuse of Office:
ThirdSeeand Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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a. In accordance with California Government Code Sections 53243, 53243.1, and
53243.2,if CITY MANAGER is convicted of a crime involving an abuse of her
office or position, all the following will apply:
i. If CITY MANAGER is provided with paid leave salary pending an
investigation,CITY MANAGER must fully reimburse the CITY any salary
provided for that purpose.
ii. If the CITY pays for the legal criminal defense of CITY MANAGER, CITY
MANAGER must fully reimburse CITY any funds provided for that purpose.
iii. If this Agreement is terminated, any cash settlement related to the termination
that CITY MANAGER 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:
i. an abuse of public authority, including,but not limited to,waste, fraud, and
violation of the law under color of authority; or
H. 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.
23. 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. 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.
c. This Agreement will be governed by the laws of the State of California.
d. The PARTIES agree that any ambiguity in this Agreement will not be construed or
interpreted against, or in favor of, either PARTY.
e. This Agreement will bind and inure to the benefit of the successors,heirs and assigns
of the PARTIES.
Thirdd Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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[Signatures on next page]
ThirdSeeend Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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CITY MANAGER CITY
By By
Peggy Flynn,City Manager Kevin McDonnellTeFesa Bar-Fe a,Mayor
DATED: DATED:
ATTEST:
Caitlin Corlev venda44-&w f
City Clerk
APP AS TO FORM:
Eric W. Danly
City Attorney
ThirdSeeend Amended and Restated Employment Agreement for At-Will Employment
City Manager Peggy Flynn
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ATTACHMENT 1
1. Vacation
A. Vacation Leave Accrual Rate
Vacation leave hours shall accrue at the rate specified in the below table. The City
Council may at their discretion set an annual vacation accrual rate above the
accrual rate in the below table. Effective November 1, 2021, PEGGY FLYNN
will accrue vacation at the annual vacation accrual rate of 120 hours and be
subject to the 360 hours accrual limit_
Years of Service Vacation Accrual(hrs) Accrual Limit(hrs)
04 80 240
5-9 120 360
10 128 384
11 136 408
12 144 432
13 152 456
14 160 480
15 168 504
16 176 528
17 184 552
18 192 576
19 or greater 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 PEGGY FLYNN shall be paid for all accrued unused vacation
leave.
B. Vacation—Payout
During the month of December of each year, PEGGY FLYNN may make an
irrevocable election to cash out vacation hours in the
following calendar year if she has at least one hundred and twenty (120) hours of
accrued but unused vacation. Vacation payouts under this section will be made in
October of the tax year following the election. PEGGY FLYNN must have a
minimum balance of forty (40) hours after the cash out of vacation. If PEGGY
FLYNN's requested amount does not leave a minimum forty (40) hours of
vacation remaining at the time of cash out, her requested vacation cash out will be
reduced to allow the remaining minimum balance of forty (40) hours to be
maintained.
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2. Sick Leave
A. Sick Leave—Eli ig'bility
Sick leave is not a right, which may be 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 PEGGY FLYNN. The
term family members shall include: spouse, children, parents, spouse's parents,
brothers, sisters or other individuals whose relationship to PEGGY FLYNN is that
of a dependent, or as determined by law.
B. Sick Leave—Accrual
Sick leave shall accrue at the rate of eight(8) hours for each month of continuous
service.
C. Sick Leave—Retirement Payout
In the event of the death or retirement and the completion of ten (10) or more
years of continuous employment with the City, PEGGY FLYNN shall be paid or
shall receive a benefit of fifty percent (50%) of her accumulated but unused sick
leave not to exceed four-hundred-eighty(480)hours.-She may elect not to receive
this benefit and instead place all sick leave hours into the CalPERS sick leave
conversion benefit, or PEGGY FLYNN may do a combination of both; to receive
a payout of up to fifty percent(50%)of her accumulated but unused sick leave not
to exceed four hundred eighty (480) hours with the balance placed into the
CalPERS sick leave conversion benefit...
D. Sick Leave—Conversion
In February of each year, PEGGY FLYNN may convert a maximum of one
hundred sixty(160)hours of sick leave to vacation at a ratio of four(4) sick leave
hours to one (1)vacation hour. Example: PEGGY FLYNN requests conversion of
160 hours of sick leave; 40 hours of vacation leave are added to her vacation
bank. PEGGY FLYNN must have at least eighty (80) hours remaining in her sick
leave bank after the conversion. Such conversion does not impact the ongoing
accrual of sick leave at the rate of eight (8) hours for each month of continuous
service.
3. Holidays and Holiday Leave
The City observes twelve (12) fixed-date holidays. These holidays are established for the
City's fiscal year as determined by City Council resolution.
The holidays for fiscal year 232/243-are as follows:
Independence Day
Labor Day
Veterans' Day
Thanksgiving Day
Day after Thanksgiving
Christmas Eve
Christmas Day
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New Year's Day
Martin Luther King Day
Presidents' Day
Cesar Chavez Day
Memorial Day
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.
Observance by an employee of a designated religious event may be granted, if
practical, with at least seven (7) days prior approval required for such leave, under the
following methods:
(A) Time charged to accrued vacation allowance; or
(B) Time off without pay.
Fixed holidays will be based on the employee's regular work shift. For example, if an
employee works a 4/10 schedule, s/he shall receive ten (10) hours of pay for the
holiday. If an employee works a 9/80 schedule, s/he shall receive nine (9)hours of pay
for the holiday, or eight (8) hours pay if the holiday falls on their regularly scheduled
eight (8) hour workday as part of their 9/80 schedule. If an employee works a 5/8
schedule (five days/week, eight hours/day), s/he shall receive eight (8) hours of pay
for the holiday. The same shall be true for any employee whose regular work week is
fewer than forty (40) hours per week, except that no such employee shall receive more
than eight(8)hours of pay for the holiday.
4. Personal Leave(formerly Floating Holiday)
Each fiscal year PEGGY FLYNN shall be provided eight (8)hours of Personal Leave ene
fleating hel-iday_which may be taken by her at a time she selects, subject to operational
requirements of the City. Personal Leave is limited to eight(8) hours and may not be
carried over to the next fiscal year.
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
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Employees'Medical and Hospital Care Act(PEMHCA).The City's employer
contribution for each employee shall be the minimum required by PEMHCA. The
City pays 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"Total 2024-2 City's Contribution Rate" for PEGGY FLYNN and
her covered family meFabdependents.
20242 Health Rates PEMHCA
(Based on 20242 City's Benefit Contribution Total 2024-2 City's
Coverage Kaiser Permanente Contribution (Added to the Contribution Rate
Rates) City's Benefit
Contribution)
Employee Only $1.021.41 83706 $821.19672.66 $15749.00 $978.19821.66
Employee+ l $2,042.824,''z �4-1-2 $1,791.531 6 $15749.00 $1.948.53:�
Employee+2 or more $2,655.622-'�6 $2,373.74 ,n�� $15749.00 $2,530.74124.39
C. Contribution
PEGGY FLYNN shall contribute to her CalPERS 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—CalPERS 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 CalPERS upon retirement,
a retired employee must meet the following definition of"annuitant"under CalPERS
law:
i. Employee must be a member of CalPERS;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 CalPERS.
B. PEMHCA Minimum
The monthly employer contribution for annuitants is the required minimum
PEMHCA contribution.
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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C. CalPERS Annuitant—PEMHCA Health Benefits
In accordance with the PEMHCA provisions if an employee is a CaIPERS
annuitant as defined by CalPERS and receives health benefits under the
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 PENIHCA 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 minimum PEMHCA
contribution as set by CalPERS.
F. 20 Years or More of Service—Not Receiving PEMHCA Health Benefits
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 PEMHCA Health Benefits
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 is eligible to receive the minimum PEMHCA
contribution as set by CalPERS.
The City's PEMHCA contribution amount is deducted from the retiree's monthly
health premium and paid to CalPERS directly by the City.
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.
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.
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The City's contract with CalPERS includes the following optional benefits:
Third Level- 1959 Survivor's Benefit as provided in Section 21573 (April 5, 1999).
• 1957 Survivor Allowance as provided in Section 21546.
• 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).
Effective February 26, 2018, employees shall pay an additional three percent (3%)
towards PERS retirement. For Classic Miscellaneous employees, this three percent (3%)
is added to the seven percent (7%) employee contribution, for a total contribution of ten
percent (10%). Employees subject to the PEPRA formula shall also pay an additional
three percent(3%) on top of their required employee contribution, as established annually
by PERS.
The City shall defer that portion of PEGGY FLYNN'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.
8. Cash In-Lieu of Health and Dental Benefits
If PEGGY FLYNN has health benefit insurance coverage from a source other than the
City, or health benefit insurance coverage from a City employee, she may request cash in
lieu of health benefits. To be eligible for the cash in-lieu benefit program she must waive
her coverage under the City's health benefits, agree to the terms and conditions of the
cash in-lieu benefit program and have written verification of health benefits insurance.
For All Employees Hired On or After June 1,2017.
For all employees hired on or after June 1, 2017, the cash in-lieu amount for health
benefits shall be $400.00 per month. Employees shall not be eligible for cash in-lieu for
dental benefits_
Upon declining medical insurance, the employee will be required to meet the terms and
conditions regarding the City's medical plan. If an employee decides to stop receiving
the medical cash back and wishes to re-enroll into the City's medical plan, then s/he
must meet the current terms and conditions of the City medical plan. The City cannot
guarantee that once the employee leaves a particular medical plan, s/he may be able to
re-enroll in his/her prior plan and under the same terms and conditions of his/her prior
plan.
9. Section 125 Plan
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The City of Petaluma shall make available to PEGGY FLYNN 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:
(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
The City shall provide a dental plan and pay the total premium costs for PEGGY FLYNN
and her eligible dependents. The maximum benefit amount is two-thousand dollars
$2,000.00 per person per calendar year. Orthodontic coverage shall be provided for
dependent children under the age of twenty-six (26) years and is 50% of the dentist's
allowed fee (subject to a$2,000.00 lifetime maximum per person).
11. Vision Insurance
The City shall provide a vision plan for PEGGY FLYNN and her eligible dependents.
The cost shall be paid for by the City. Employees are eligible for eye exams once a
calendar year with a twenty-five ($25.00) deductible. Frames are available once a
calendar year with a maximum benefit of one-hundred-eighty dollars ($180.00) and/or
contact lenses are available once a calendar year with a maximum benefit of one-
hundred-eighty dollars($180.00).
12. Employee Assistance Program
The City will provide an Employee Assistance Program to PEGGY FLYNN and her
covered dependentsiinnie iwee I-anilily. This licensed counseling service will provide
assistance and referrals for matters related to marriage and family problems, alcohol and
drug dependency, emotional, personal, and stress-related concerns and other issues. All
counseling services are confidential.
13. Long Term Disability Insurance
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The City shall provide PEGGY FLYNN with the same long-term disability benefit plan
as provided to City employees.
14. Deferred Compensation
The City of Petaluma shall make available to PEGGY FLYNN a Deferred Compensation
Plan. Effective November 1, 2021, the City shall provide a contribution equal to six
percent(6%)of PEGGY FLYNN's base salary to a Deferred Compensation Plan.Any
additional City contribution shall be subject to mutual agreement between the City and
PEGGY FLYNN and may be considered at the time of any annual performance review or
otherwise as part of any compensation or merit increase considered by the City Council.
15. Industrial Injury Leave
Benefits shall be payable in situations where PEGGY FLYNN'S absence is due to
industrial injury as provided in California State Workers' Compensation Law. During the
first three (3) workdays when her absence has been occasioned by injury suffered during
her employment and she receives workers' compensation benefits, she shall receive full
pay. Following this period, sick leave may be a supplement to the workers' compensation
benefits provided. Compensation is at her 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 she is
certified "permanent and stationary" by a competent medical authority. The City shall pay
her 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 PEGGY FLYNN 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 her Agreement.
16. Bereavement Leave
PEGGY FLYNN shall be granted up to thirty-two (32) hours of paid bereavement leave
in the event of death in her immediate family. Paid bereavement leave is 0 inted per
qualifying event. 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
I loco parentis. Up to an additional eight (8) hours of accrued leave, including sick leave,
may-will be granted to supplement bereavement leave.
In the event PEGGY FLYNN must travel more than three-hundred(300)miles to attend a
funeral or memorial service, an additional eight(8)hours of paid bereavement leave shall
be granted instead of the use of accrued leave.
17. Victims of Domestic Violence and Sexual Assault Leave
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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 PEGGY FLYNN'S actual work schedule otherwise would prevent her from voting in
any State, County, or General election, she may be granted up to two (2) hours of paid
time to vote, in accordance with Election Code 14000. She must provide the City with at
least two (2)working days' notice that she 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 PEGGY FLYNN 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 PEGGY FLYNN setting forth the reason for the request, and the approval will
be in writing.
22. Jury Duty Leave
Should PEGGY FLYNN be summoned for jury duty she 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. She may retain payment for travel but shall make payable to
the City any and all fees which she may receive in payment for service as a juror. For
Grand Juries this compensation shall not extend beyond twenty(20)working days.
23. Family Care and Medical Leave (FMLA& CFRA)
FMLA and/or CFRA Leave
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The City shall provide family and medical care leave for PEGGY FLYNN 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
PEGGY FLYNN 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.
24. Paid Parental Leave
On October 18, 2021, the City Council approved a Paid Parental Leave (PPL)Policy for
City of Petaluma employees. The PPL Policy provides eligible City of Petaluma
employees up to 320 hours of PPL. As a City of Petaluma employee,PEGGY FLYNN is
an eligible employee for PPL subject to the terms of the PPL Policy. The PPL Policy may
be subject to change in the future.
to