HomeMy WebLinkAboutCC AG PKT 2014-04-28 #F SEAL
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AGENDA STAFF REPORT
DATE: April 28, 2014
TO: Honorable Mayor and City Council
FROM: Jill R. Ingram, City Manager
SUBJECT: APPROVAL OF EXECUTIVE MANAGEMENT
EMPLOYMENT AGREEMENT - ASSISTANT CITY
MANAGER
SUMMARY OF REQUEST:
That the City Council adopt Resolution No. 6457 authorizing the City Manager to
execute an employment agreement with Patrick Gallegos to serve as Assistant
City Manager, effective April 28, 2014.
BACKGROUND AND ANALYSIS:
The following six executive management positions serve the City in an at-will
capacity: Assistant City Manager, Chief of Police, Community Development
Director, Finance Director/City Treasurer, Marine Safety Chief, and Public Works
Director. Employment agreements that formalize the terms of at-will employment
between the City and each department head were approved by the City Council
at its June 24, 2013 meeting, with the exception of the vacant Assistant City
Manager position. Although City Council approval is required to authorize the
City Manager to execute an employment agreement, the City Manager remains
the sole appointing authority for executive management positions.
Terms of the attachment employment agreement are consistent with the previous
employment agreements approved by the City Council on June 24, 2013. As
with the existing employment agreements with department heads, the Assistant
City Manager will contribute towards his respective employee contribution to
CalPERS as follows: employee pays 6% effective first pay period on or following
July 1, 2014; and employee pays 7% effective first pay period on or following July
1, 2015.
The Assistant City Manager position has been vacant for nearly a year. As with
all vacant positions, the City Manager has been re-evaluating the position in
relation to the overall City staffing needs to ensure the most optimal staffing
model in order to best serve the needs of the community given our lean staffing
and relevant personnel budget. As a result of that analysis, the City Manager
has determined that the best candidate to fill the vacant Assistant City Manager
position is a current City employee, Patrick Gallegos, Administrative Manager.
Agenda Item— F
With the City Council's approval of the attached employment agreement, the
Administrative Manager position will remain vacant, and Mr. Gallegos will serve
in a dual role and be responsible for all Assistant City Manager responsibilities
and duties, while also maintaining the tasks associated with his current position
as Administrative Manager.
ENVIRONMENTAL IMPACT:
There is no Environmental Impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved the agreement as to form.
FINANCIAL IMPACT:
The costs associated with the employment agreement have been budgeted in
the FY 2014-15 Annual Budget, and will continue to be appropriated through the
annual budget process.
RECOMMENDATION:
That the City Council adopt Resolution No. 6457 authorizing the City Manager to
execute an employment agreement with Patrick Gallegos, Assistant City
Manager, effective April 28, 2014.
SUBMITTED BY:
tilljk. Ingram, City "er
Attachments:
A. Resolution No. 6457
B. Employment Agreement
Page 2
RESOLUTION NUMBER
#RESOLUTION QF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO
EXECUTE AN EMPLOYMENT AGREEMENT WITH
PATRICK GALLEGOS.ASSISTANT CITY MANAGER
WHEREAS, the Qh/ Manager wishes to enter into on Employment Agreement
with Patrick Gallegos to perform the duties of Assistant City Manager in
consideration of and subject tu the terms, conditions, and benefits set forth inthe
Employment Agreement; and
WHEREAS, the Qty yNeneger, as the appointing authority, has determined that
Patrick Gallegos possesses the okU|a, expertise and education necessary to
perform these services;
WHEREAS, Patrick Gallegos desires to serve aaAssistant City Manager ofthe
City of Seal Beach in consideration of and subject to the 0onnm, condibonm, and
benefits set forth in the Employment Agreement;
NOW, THEREFORE, BE |T RESOLVED by the City Council of the City ofSeal
Beech hereby authVhzem and directs the City Manager to execute the
Employment Agreement on behalf ofthe City ofSeal Bemoh, effective on April
28, 2014.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held onthe 288I_day of_April_. 2O14by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA �
COUNTY C]FORANGE } SS
CITY OF SEAL BEACH }
|. Linda Devine. City Clerk of the City of Seal Buooh, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6457 on file in
the offioa of the City C|ark, pammod, appnzved, and adopted by the Seal Beach
City Council ato regular meeting held on the_28th_day of April_. 2O14.
City Clerk
EMPLOYMENT AGREEMENT
Between
SEAL
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27
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City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Patrick Gallegos
211 - 8th Street
Seal Beach, CA 90740
This Agreement is made as of April 28, 2014, by and between the City of Seal
Beach, a California charter city("City"), and Patrick Gallegos, an individual.
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RECITALS
A. The City of Seal Beach ("City") hired Patrick Gallegos ("Employee") on
February 27, 2012.
B. The City would like to promote Employee to be the City's Assistant City
Manager, effective April 28, 2014.
C. Employee represents that he is qualified to perform the duties of Assistant
City Manager for City.
D. Employee's terms of employment have previously been established by
City's Terms and Conditions of Employment for Executive/Mid-Management
Employees.
E. City and Employee wish to enter into an Employment Agreement that sets
forth the rights and obligations of both parties and remove Employee from coverage
under City's Terms and Conditions of Employment for Executive/Mid-Management
Employees.
NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions herein contained, City and Employee agree as follows:
1. TERM. The effective date of this Agreement is April 28, 2014. This
Agreement shall be effective throughout the tenure of the Employee.
2. DUTIES AND AUTHORITY. Employee shall exercise the powers and
perform the duties of the position of Assistant City Manager as set forth in the City
Municipal Code, personnel rules, regulations and procedures and Assistant City
Manager job description. Employee shall exercise such other powers and perform such
other duties as the City Manager may assign.
3. EMPLOYEE'S OBLIGATIONS. Employee shall devote his full energies,
interests, abilities and productive time to the performance of this Agreement, and utilize
his best efforts to promote City's interests. Employee shall not engage in any activity,
consulting service or enterprise, for compensation or otherwise, which is actually or
potentially in conflict with or inimical to, or which materially interferes, with his duties and
responsibilities to City.
4. COMPENSATION AND REIMBURSEMENT FOR EXPENSES.
A. Gross Monthly Base Salary. City shall pay Employee for the
performance of his duties under this Agreement a gross monthly base salary of
$12,672.17. The City Manager may consider a merit adjustment after conducting a
performance evaluation in accordance with the evaluation process pursuant to
Section 6 of this Agreement. Employee's salary shall be subject to withholding and
other applicable taxes, and shall be payable to Employee at the same time as other
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employees of City are paid. Employee shall be exempt from the overtime pay
provisions of California and federal law.
B. Cost of Living Salary Increases. Salary increases are as follows:
1 First pay period on or following July 1, 2015 - CPI adjustment,
up to 3% maximum, as measured utilizing the change in the California Consumer Price
Index for Urban Wage Earners and Clerical Workers as calculated by the Department of
Industrial Relations for Los Angeles - Riverside - Orange County for the 12 months of
April 1, 2014— March 31, 2015.
C. Expenses. City shall reimburse Employee for actual and
necessary expenses incurred in the performance of his official duties that are supported
by expense receipts in accordance with AB 1234 and any applicable City ordinances,
resolutions, rules, policies or procedures.
5. BENEFITS.
A. Health Insurance Coverage.
1. City shall provide Employee a group hospital, medical and
dental insurance plan.
2. City shall contribute to the cost of medical coverage for
Employee and his dependents, an amount not to exceed the California Public
Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution.
3. City has implemented a full flex cafeteria plan for employees.
If Employee opts to participate in City's full flex cafeteria plan, he shall receive a
monthly flex dollar allowance to be used for the purchase of benefits under the full flex
cafeteria plan. The monthly flex dollar allowance shall be:
For Employee $705.1 0/month
For Employee and 1_"eendent $1,089.60/month
For Employee and 2 or more dependents $1,409.06/month
4. A portion of the monthly flex dollar allowance is identified as
City's contribution towards PEMHCA. Thus, for example, in calendar year 2014, a
single employee's monthly flex dollar allowance is $705.10; of that amount, $119 has
been designated by City as its required PEMHCA contribution to CaIPERS. The
monthly flex dollar allowance may only be used in accordance with the terms of the full
flex cafeteria plan.
5. Effective January 1, 2015, and every January 1st during the
term of this Agreement, City shall increase the contribution amounts above by the
percentage of increase for basic plans published in the CalPERS circular letter setting
health insurance premiums for the coverage year.
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6. Employee is required to pay any premium amount in excess
of the above City contribution. Such amount will be deducted from his payroll check on
the first two pay periods for each month.
7. The minimum employer contribution for participating in the
PEMHCA will be adjusted annually to reflect any change in the medical care component
of the Consumer Price Index.
8. If Employee meets the waiver criteria and elects to waive
enrollment in City's full flex cafeteria plan, he is eligible to receive $310 per month (upon
showing proof of health insurance coverage under an alternative plan). Election forms
are available in the Personnel Office.
9. City shall not contribute a flex dollar amount for Employee
during any month he is on leave of absence without pay or is absent from regular duties
without authorization, for a full calendar month. City shall contribute to the cafeteria
plan for Employee if Employee is receiving temporary payments from Workers'
Compensation Insurance.
B. life Insurance Pro-gram.
Employee shall receive a $50,000 life insurance policy paid by City.
C. Income Continuation Program.
1. Employee shall receive an income continuation policy to
provide for income continuation of 66.67% of his monthly salary, up to a maximum of
$5,000 per month, whichever is lesser.
2. Said income continuation shall commence on the 31 st day of
sickness or other bona fide absence or upon expiration of sick leave, whichever occurs
later, and continuing thereafter while Employee is absent from work for a period of up to
age 65.
D. Retiree Health Insurance.
1. Employee shall have the option upon retirement, to continue
participating in City's health insurance program at his expense.
2. In the event Employee retires from City, he shall be eligible
to receive a City contribution not to exceed the PEMHCA minimum employer
contribution towards health coverage under CalPERS, as determined by CalPERS from
time to time.
3. In the event Employee resides in an area where the health
plans provided by City are not in effect, he shall be entitled to receive in cash each
month an amount equal to the monthly contribution City would otherwise have
contributed toward his health insurance premiums.
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E. 'Sick Leave.
1. Employee shall accrue sick leave at the rate of one day
(eight hours) per month. The maximum accumulation of sick leave hours shall be 520
hours.
2. Upon termination of employment, sick leave accumulated
balance will be paid to Employee at 25% of his base rate of pay.
3. Employee shall not accrue sick leave hours during
authorized leaves of absence without pay.
F. Leaves. of Absence.
1 Leave of Absence Without Pay.
a. Upon the approval of the City Manager, Employee
may be granted a leave of absence without pay in cases of an emergency or where
such absence would not be contrary to the best interest of City, for a period not to
exceed 180 working days.
b. Upon written request of Employee, the City Council
may grant a leave of absence, with or without pay, for a period not to exceed one year.
C. At the expiration of the approved leave of absence,
after notice to return to duty, Employee shall be reinstated to the position he held at the
time leave was granted. Failure on the part of Employee to report promptly at such
leave's expiration and receipt of notice to return to duty shall be cause for discharge.
d. During any leave of absence without pay, Employee
shall not be eligible to accumulate or receive benefits, except as otherwise specifically
provided in City policy, except Employee shall receive his monthly flex dollar allowance
and City shall contribute to Employee's disability insurance plan, and life insurance plan
for the first 30 days of leave of absence without pay.
2. Bereavement Leave.
City shall provide Employee with 40 hours paid bereavement
leave in case of a death in the Employee's immediate farnily. The bereavement leave
shall not be chargeable to or accumulated as sick time or leave time. "Immediate
family" is defined as spouse, registered domestic partner, father, mother, son, daughter,
brother, sister, grandparent, grandchild, step-mother, step-father, step-child, mother-in-
law, father-in-law, domestic partner-in-law or dependent relative living with Employee.
3. Military Leave of Absence.
a. Military leave shall be granted in accordance with the
provisions of State law. Employee shall give the City Manager an opportunity within the
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limits of military regulations to determine when such leave shall be taken. If possible,
Employee shall notify the Department Head of such leave request ten working days in
advance of the beginning of the leave.
b. In addition to the provisions of State law, City shall
continue to provide Employee on military leave, the monthly flex dollar allowance under
the cafeteria plan and disability and life insurance and retirement (if applicable) for the
first three months of military leave. During said period, Employee shall be required to
pay to City the amount that exceeds the monthly flex dollar allowance (if applicable).
After the first three months of military leave, Employee may continue said benefits at his
cost.
4. Family Leave. Upon a demonstration of need and subject
to the following conditions, Employee may take leave or unpaid leave to care for his
newborn infant, whether through parentage or adoption, or to care for a seriously ill or
injured member of Employee's "immediate family" as defined in sub-section 51.2.
a. Proof of the birth or adoption of a newborn infant or
the serious illness/injury of the family member must be submitted to City.
b. Requests for family leave must be submitted in writing
to the City Manager at the earliest possible date preceding the time when the leave is to
begin.
C. Operational needs of City shall be relevant in
determinations regarding the granting of family leave in accordance with the provisions
of State and Federal Family Leave laws.
d. In the event of an extended family leave, Employee
may be required to periodically report on the status of the situation giving rise to the
leave.
e. Family leave may be granted only upon the approval
of the City Manager consistent with the provisions of State and Federal Family Leave
laws.
G. Vacation.
1. Effective April 28, 2014, Employee shall begin accruing 120
hours of vacation leave in his first year as Assistant City Manager. Employee shall
accrue eight additional hours of vacation leave for each year of full-time continuous
service each year after such first year.
2. Employee shall only be allowed to accumulate a maximum
of 320 hours of vacation. This maximum can only be exceeded with approval of the City
Manager.
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3. Vacation shall not accrue during any period Employee is on
leave of absence without pay.
4. Employee is encouraged to use at least the amount of
vacation hours earned each fiscal year.
5. City will not approve vacation leave time prior to it having
been earned, unless prior, special arrangements have been made with the City
Manager. Employee shall not take any vacation leave unless the City Manager has
provided prior written approval. The City Manager may consider workload and other
staffing considerations, such as but not limited to, the previously approved vacation
schedule of other employees, sick leave and position vacancies.
6. After Employee has completed at least one year of
continuous service, Employee, not more than once in each fiscal year may, upon
request, receive compensation for up to 80 hours of accrued vacation time provided that
Employee has taken at least 50 hours of vacation time off within that fiscal year.
Employee may, upon request, receive compensation for up to 120 hours of accrued
vacation time provided that Employee has taken at least 80 hours of accrued vacation
time off within that fiscal year.
H. Holidays,.
1. City shall grant Employee the following holidays with pay:
Hqlida � Date
New Year's Day January 1st
Martin Luther King Day 3rd Monday in January
-Presidents' Day 3rd Monday in February
-Memorial Day Last Monday in May
Independence Day July 4th
Labor Day First Monday in September
Veteran's Day November 11 th
1 Thanksgiving Day Fourth Thursday in November
Calendar dam following Thanksgiving Day
Christmas Eve December 24th
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-Christmas Day December 25th
*Floating Holiday _(discretion of employee)
Total of 12 holidays annually
*Floating Holiday must be taken during each fiscal year(July Ist through June 30th)and may not be carried
forward.
2. Holiday Closures. The City Manager may designate up to
five specific work days in each calendar year between Christmas Day and New Years
Day during which all employees, including Employee, may be required to take time off,
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charged to leave without pay, Employee's accumulated compensatory time, vacation,
floating holidays, or a combination thereof, as determined by Employee. The days must
be consecutive for Employee. If Employee does not have sufficient accumulated time
off in his account to cover the required time off, he may request, and will be granted,
sufficient advance on his vacation accrual to cover the uncovered balance. This
advance will be recovered with the next vacation accruals earned by Employee. Time
off of work under this provision shall not be deemed a layoff.
I. Retirement System.
1. The retirement program provided by City shall consist of a
pooled Public Employees' Retirement System (PERS) plan which includes the following
provisions:
Section 20042 - One Year Final Compensation
Section 20965 - Credit of Unused Sick Leave
Section 21024 - Military Service Credit
2. Retirement Plan. Employee is required to participate in
City's California Public Employees' Retirement System (CaIPERS) retirement program
and to make an employee contribution toward the program in the amount of 7% of his
compensation earnable. City will pay, on behalf of Employee, a portion of the required
employee contribution to CaIPERS, as follows. City shall pay the following amounts
toward the Employee's CaIPERS required contribution of 7% of his compensation
earnable:
a. a. Effective first pay period on or following July 1,
2014: 1% (Employee pays 6%).
b. b. Effective first pay period on or following July 1,
2015: nothing (Employee pays 7%).
3. City shall include Employee in CaIPERS Section 21354 - 2%
@ 55 for miscellaneous members.
J. Seniority Bonus.
Employee shall receive a 5% increase in base salary effective on the tenth anniversary
of his uninterrupted employment with City.
K. Mobile Phone Allowance.
Employee shall receive a monthly mobile phone allowance of $75 in accordance with
City Policy 200-19.
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L. Administrative Leave.
Employee shall receive 48 hours of administrative leave each fiscal year.
Administrative leave days may not be carried forward to succeeding years nor may they
be turned in for cash value.
M. Deferred Compensation.
City shall contribute the equivalent to 3.5% of base salary per payroll period into a
deferred compensation program for Employee.
N. 'Catastrophic Leave.
Employee may participate in City's Catastrophic Leave Pool Program subject to the
following conditions:
1 Catastrophic Leave will be available only to Employee if
Employee has exhausted his own paid leave through bona fide serious illness or
accident.
2. Employee cannot receive catastrophic leave at the same
time he receives Long-Term Disability payments.
3. Employee must have 40 hours of paid leave available after
making a donation to the pool.
4. Sick Leave cannot be used for this program.
5. In order to donate, Employee must sign an authorization,
including specifying the specific employee to be the recipient of the donation.
6. Donations will be subject to applicable tax laws.
7. The availability of Catastrophic Leave shall not delay or
prevent City from taking action to medically separate or disability retire Employee.
8. Catastrophic Leave due to illness or injury of an immediate
family member may require medical justification as evidenced by a Physician's
Statement that the presence of the Employee is necessary.
9. Catastrophic Leave due to the illness or injury of the
Employee will require medical justification as evidenced by a Physician's Statement as
to Employee's condition.
10. Employee must maintain the confidentiality of a donation.
6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or before June
30, 2015, and every June 30 thereafter, the City Manager may conduct an evaluation of
Employee's performance. During that evaluation, the City Manager and Employee shall
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mutually establish performance goals and objectives to be met by Employee during the
following year. In addition, the City Manager shall review Employee's salary and
benefits as part of the evaluation process and may do so at any other time.
7. INDEMNIFICATION. Except as otherwise permitted, provided, limited or
required by law, including without limitation California Government Code Sections 825,
995, and 995.2 through 995.8, City will defend and pay any costs and judgments
assessed against Employee arising out of an act or omission by Employee occurring in
the course and scope of Employee's performance of his duties under this Agreement.
8. OTHER TERMS AND CONDITIONS OF EMPLOYMENT. The City
Manager may from time to time fix other terms and conditions of employment relating to
the performance of Employee provided such terms and conditions are not inconsistent
with or in conflict with the provision of this Agreement or other applicable law.
9. TERMINATION.
A. Termination by City without Cause. Employee is employed at the
pleasure of the City Manager, and is thus an at-will employee. The City Manager may
terminate this Agreement and the employment relationship at any time without cause.
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of City
to terminate the employment of Employee. City shall pay Employee for all services
through the effective date of termination. In addition, Employee shall receive severance
to the extent provided in Section 10 and shall receive no other compensation or
payment.
B. Termination by City with Cause. City may terminate this
Agreement and Employee's employment with City if:
1. Employee refuses or fails to perform the powers and duties
of Employee as specified in Sections 2 and 3 of this Agreement or Municipal Code;
2. Employee has engaged in: corrupt or willful misconduct in
office, any illegal act involving personal gain or willful malfeasance constituting grounds
for removal from office due to an indictment of the grand jury; any act of dishonesty;
actions that have or may have a substantial and adverse effect on City's interest; or is
convicted of any felony or any misdemeanor involving moral turpitude. In no event shall
a minor traffic offense or moving violation be considered a misdemeanor involving moral
turpitude. In the event Employee is under investigation for any of the foregoing
reasons, City may withhold part or all of any severance payment, until it is determined if
charges will be filed, and if charges are filed, until final judgment is rendered. If charges
are not filed, or if Employee is found innocent, City shall pay any severance to which
Employee is entitled; or
3. Employee breaches this Agreement, including, without
limitation, any provision set forth in Section 2, "Duties and Authority," of this Agreement.
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C. 'Employee Initiated Termination. Employee may terminate this
Agreement by providing City 90 days' prior written notice.
10. SEVERANCE.
A. If City terminates this Agreement (thereby terminating Employee's
employment with City) without cause pursuant to Section 9.A, City shall:
1. Pay employee all vacation benefits earned, and
2. Pay Employee an amount equal to four times his then-
monthly base salary; and
B. Notwithstanding any other provision or the term of this Agreement,
the maximum severance and health benefits that Employee may receive under this
Agreement as a result of termination, shall not exceed the limitations provided in
Government Code Sections 53260-53264.
C. Notwithstanding the foregoing, in the event Employee is convicted
of a crime involving an abuse of office or position, Employee shall reimburse City for
any paid leave or cash settlement (including separation benefits or severance, if
applicable), to the extent and as provided by Government Code Sections 53243-
53243.4.
11. INTEGRATION OF AGREEMENT. This Agreement contains the entire
agreement between the parties and supersedes all prior oral and written agreements,
understandings, commitments, and practices between the parties concerning
Employee's employment. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, oral or written, have been
made by any party, or anyone acting on behalf of any party, which is not embodied
herein, and that no other agreement, statement, or promise not contained in this
Agreement shall be valid or binding on either party.
12. METHOD OF AMENDMENT. Amendments to this Agreement are
effective only upon City Council and Employee written approval.
13. NOTICES. All notices pertaining to this Agreement shall be sent to:
EMPLOYEE: Patrick Gallegos
City of Sea[ Beach
211 - 8th Street
Seal Beach, California 90740
CITY: City Clerk
City of Seal Beach
211 - 8th Street
Seal Beach, California 90740
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Such notice shall be deemed made when personally delivered, transmitted by
facsimile, or when mailed, 48 hours after deposit in the U.S. Mail, first class postage
prepaid and addressed to the party at its applicable address. Actual notice shall be
deemed adequate notice on the date actual notice occurred, regardless of the method
of service.
14. GENERAL PROVISIONS.
A. If any provision of this Agreement is held invalid or unenforceable,
the remainder of this Agreement shall nevertheless remain in full force and effect. If any
provision is held invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances.
B. This Agreement shall be interpreted and construed pursuant to and
in accordance with the City Charter, applicable laws of the State of California and all
applicable City codes, ordinances and resolutions.
Executed by the parties as of the date below at Seal Beach, California.
City of Seal Beach Employee
By. a
Jill R. Ingram, City Manager Patrick Gallegos
Date: Date:
ATTEST:
Linda Devine, City Clerk
APPROVED AS TO FORM
Quinn M. Barrow, City Attorney
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