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HomeMy WebLinkAboutItem FV AGENDA STAFF REPORT Col /FpRN� % DATE: January 23, 2017 TO: Honorable Mayor and City Council THRU: Jill R. Ingram, City Manager FROM: Craig A. Steele, City Attorney SUBJECT: AMENDMENTS TO EXECUTIVE MANAGEMENT EMPLOYMENT AGREEMENTS; APPROVAL OF EMPLOYMENT AGREEMENT FOR NEW PUBLIC WORKS DIRECTOR SUMMARY OF REQUEST: That the City Council adopt Resolution No. 6709 approving amendments to existing executive management employees' employment agreements to provide a cost of living salary increase for executive management employees not to exceed two percent (2 %), and approving other specified amendments to the Assistant City Manager, Director of Community Development, Director of Finance /City Treasurer, City Clerk, Chief of Police, and Marine Safety Chief Employment Agreements; approving the employment agreement for the new Public Works Director and authorizing the City Manager to execute the amendments and new agreement. BACKGROUND AND ANALYSIS: Executive management employees are employed by the City under individual employment agreements. This proposed amendment would change the existing executive management employment agreements for the Assistant City Manager, Director of Community Development, Director of Finance /City Treasurer, City Clerk, Chief of Police, and Marine Safety Chief, but not the City Manager's employment agreement. The proposed changes are as follows: 1. Increase executive management employees' base salaries by two percent (2 %) effective retroactively to July 1, 2016 and allow for future annual increases subject to approval by the City Council tied to inflation and not to exceed three percent (3 %) in future years, similar to other City employees. 2. Provide for reimbursement of the costs of an annual Medical Maintenance Examination and /or Wellness Program in an amount not to exceed $850.00. Agenda Item F 3. Change the existing 25% on "cash outs" for accrued but unused sick pay at the termination of employment to allow for an additional 25% of accrued but unused sick leave pay to be deposited directly into a Retiree Health Savings Account to be established for the benefit of the employee if that employee is not eligible for City Retiree Health Benefits. Only one current executive management employee would be eligible for Retiree Health Benefits upon retirement. 4. Eliminate the existing requirement that employees use a certain amount of accrued vacation time prior to any "cash out" of accrued but unused vacation pay. 5. Amend the Employee Initiated Termination Section to reduce the notice period to 30 days from the existing 90 days. If the City Council approves these amendments to the existing employment agreements and adopts the proposed Resolution, the City Attorney will be directed to prepare individual amendments for execution by each employee and the amended agreements will be public documents, as is currently the case. All other provisions of the employment agreements will remain in effect. In addition, Steve Myrter has accepted the City's offer to serve as the new Director of Public Works, starting on January 30, 2017. Mr. Myrter's employment contract is proposed to be the same as the other executive management employees, with the inclusion of the amendments stated above. A proposed employment agreement will be forwarded to the City Council for approval under separate cover and made public once Mr. Myrter has had the opportunity to review it. Mr. Myrter's starting monthly salary will be $14,585.82. ENVIRONMENTAL IMPACT: There is no environmental impact associated with this item. LEGAL ANALYSIS: The City Attorney has prepared Resolution No. 6709 and Amendment to the executive management employment agreements and has approved as to form. FINANCIAL IMPACT: In January of 2013 department heads began paying their associated costs for the employee's share of CaIPERS. From that date through June 30, 2016, the department heads have saved the City of Seal Beach $147,900. The cost of the proposed increase associated with the changes to existing contracts in the current budget year will be $23,797.08, of which $18,697.08 is already included in the adopted budget. The remaining $5,100, if used, will be absorbed through budgetary savings. The salary for the new Public Works Director is included in Page 2 the existing budget. Future budgetary impacts will occur for the Retiree Health Savings accounts but will be off -set by a reduction in the Compensated Absences balance. RECOMMENDATION: That the City Council adopt Resolution No. 6709 approving amendments to existing executive management employees' employment agreements to provide a cost of living salary increase for executive management employees not to exceed 2% retroactive to July 1, 2016, and approving Amendments to the Assistant City Manager, Director of Community Development, Director of Finance /City Treasurer, City Clerk, Chief of Police, and Marine Safety Chief Employment Agreements; approving the Public Works Director and authorizing amendments and new agreement. City Attorney Attachment: A. Resolution 6709 employment agreement for the new the City Manager to execute the Page 3 NOTED AND APPROVED: Jtfl"R. Ingram, City 9 Mana r 9 Attachment "Age RESOLUTION NUMBER 6709 A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING A TWO PERCENT (2 %) COST OF LIVING INCREASE FOR EXECUTIVE MANAGEMENT EMPLOYEES, AND APPROVING AMENDMENTS TO THE EMPLOYMENT AGREEMENTS WITH THE ASSISTANT CITY MANAGER, DIRECTOR OF COMMUNITY DEVELOPMENT, DIRECTOR OF FINANCE/CITY TREASURER, CITY CLERK, CHIEF OF POLICE, AND MARINE SAFETY CHIEF; APPROVING AN EMPLOYMENT AGREEMENT FOR THE DIRECTOR OF PUBLIC WORKS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS ON BEHALF OF THE CITY THE CITY COUNCIL HEREBY RESOLVES AS FOLLOWS: SECTION 1. Pursuant to the existing employment agreements between the City and Executive Management employees, the City Council hereby approves a Cost of Living ( "COLA ") salary increase equal to two percent (2 %) of each Executive Management employee's base salary, effective retroactively to July 1, 2016 and to be paid on the first available pay period following the adoption of this Resolution. SECTION 2. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Seal Beach and Patrick Gallegos, as amended, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 3. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Seal Beach and Jim Basham, as amended, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 4. The City Council hereby approves Amendment No. 1 to the Employment Agreement between the City of Seal Beach and Robin L. Roberts, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 5. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Seal Beach and Victoria L. Beatley, as amended, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 6. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Seal Beach and Joe Stilinovich, as amended, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 7. The City Council hereby approves Amendment No. 2 to the Employment Agreement between the City of Seal Beach and Joe Bailey, as amended, with the changed terms as set forth in Exhibit A, attached hereto and incorporated herein by this reference. The City Manager shall execute the Amendment on behalf of the City. SECTION 8. The City Attorney is authorized to incorporate the language approved in Exhibit A into all the amended Executive Management employee contract documents as approved herein prior to execution by both parties, as appropriate, including renumbering amended provisions if necessary. SECTION 9. Those provisions of the above - referenced employment contracts not amended by this Resolution shall remain in full force and effect. Section 10. The City Council hereby approves the employment contract for Steve Myrter to serve as Director of Public Works, effective January 30, 2017, in the form attached hereto as Exhibit B. The City Manager is authorized to execute the agreement on behalf of the City. Section 11. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on January 23, 2017 by the following vote: AYES: Council Members NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Sandra Massa - Lavitt, Mayor ATTEST: Robin L. Roberts, MMC, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Robin L. Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution Number 6709 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on January 23, 2017. Robin L. Roberts, MMC, City Clerk EXHIBIT A APPROVED EXECUTIVE MANAGEMENT EMPLOYEE CONTRACT AMENDMENTS AMEND SECTION 4.13 (or equivalent) to read as follows: "13. Cost of Living Salary Increases. Effective with the first pay period after July 1 each year, Employee may receive annual Cost of Living salary increases applicable to Executive Management employees, as approved by the City Council, based on the change in the California Consumer Price Index for Urban Wage Earners and Clerical Workers as calculated by the California Department of Industrial Relations for Los Angeles - Riverside Orange County for the immediately preceding April -April period, not to exceed three percent (3 %) in any fiscal year." 2. ADD Section 5.A.11 (or equivalent) to read as follows 11. Medical Maintenance Examination/Wellness Program. The City shall reimburse Employee, as a medical benefit, for Employee's actual documented expenses for medical maintenance exams or the cost of participation in wellness programs, in an amount not to exceed $850 per fiscal year. Reimbursable expenses shall include, but not be limited to, actual out of pocket expenses for annual physical examinations or other medical tests or examinations, participation in weight loss, stop smoking, fitness or other similar programs, or membership in a health or fitness club. All reimbursements shall be subject to the review and approval of the City Manager." 3. AMEND Section 5.E.2 (or equivalent) to read as follows (text added is underlined): "2. Sick leave accrual balance will be paid to Employee upon termination at 25% of his /her base rate of pay in cash and, if Employee is not Eligible for Retiree Health Benefits as provided in this Agreement, an additional 25% of the accrual balance shall be deposited by the City into a Retiree Health Savings Account to be established for the benefit of the Employee.' 'Note: If the Marine Safety Chief separates from employment prior to reaching 20 years of service to the City, he shall be eligible for this conversion benefit. 4. AMEND Section 5.G.6 (or equivalent) to read as follows: "6. Not more than once in each fiscal year, Employee may, upon written request, receive cash compensation for up to 99 120 hours of accrued vacation time tome off within that fiSGal yea.F, subject to the City's normal accrual and "cash out" policies and procedures." 5. AMEND Employee- Initiated Termination Section of each agreement, as applicable, to reduce required notice period to 30 days. Executive Team Agreements AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 0 Patrick Gallegos 211- 8th Street Seal Beach, CA 90740 This Amendment No. 1, dated August 11, 2014, amends that certain Employment Agreement ( "Agreement') dated April 28. 2014 between the City of Seal Beach, a California charter city ( "City ") and Patrick Gallegos, an individual ( "Employee "). 1 RECITALS A. City and Employee are parties to the Agreement, pursuant to which Employee serves as Assistant City Manager for City. B. City and Employee wish to amend the Agreement as provided herein. F -1M i►•]M4MI NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows: Section 1. Section 9, Paragraph C of the Agreement is hereby amended to read as follows: "C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days' prior written notice." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested: CITY OF SEAL BEACH 1!� �Sly J Attest: By Aind Devine, City Clerk '45 M as to , City Attorney 04 EMPLOYEE By: ! JI4An" Patrick Gallegos EMPLOYMENT AGREEMENT Between 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. -1- 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 -2- 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 oav 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. 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 I $705.10 1month For Employee and 1 dependent I $1,089.60 /month For Employee and 2 or more dependents I $1,409.06 1month 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 CalPERS. 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 CaIPERS circular letter setting health insurance premiums for the coverage year. -3- 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 Program. 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 31st 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 CaIPERS, 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. -4- 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 family. 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 -5- 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 5.F.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. 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: Holiday 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 LaborDay First Monday in September Veteran's Day November 11th Thanksgiving Da Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Day December 25th *Floating Holiday discretion of employee) Total of 12 holidays annually 'Floating Holiday must be taken during each fiscal year (July 1st 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 Year's Day during which all employees, including Employee, may be required to take time off, -7- 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. 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 eamable. 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 CAPERS required contribution of 7% of his compensation eamable: 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. 1.11 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 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. -10- 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 Seal Beach 211 - 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 -11- 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 By: Jill . Ingram, City n er Date: q I am I 1 ATTEST: i Linda Devine, City Clerk APPROVED AS TO FORM 6�Zuinn M. arrow, City Attorney -12- Employee / -"t 06a'41�2 Patrick Gallegos Date: 1 12-3 / AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 0 Jim Basham 211- 8th Street Seal Beach, CA 90740 This Amendment No. 1, dated August 11, 2014, amends that certain Employment Agreement ( "Agreement') dated June 24, 2013 between the City of Seal Beach, a California charter city ( "City ") and Jim Basham, an individual ( "Employee "). 1 ,,, RECITALS A. City and Employee are parties to the Agreement, pursuant to which Employee serves as Community Development Director for City. B. City and Employee wish to amend the Agreement as provided herein. AMENDMENT NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows: Section 1. Section 9, Paragraph C of the Agreement is hereby amended to read as follows: "C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days' prior written notice." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested: CITY OF SEAL BEACH Attest: By: in a Devine, ity Clerk 0 to L. Flov4er, City Attorney 2 M Jim Basham EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Jim Basham 211- 8th Street Seal Beach, CA 90740 This Agreement is made as of June 24, 2013, by and between the City of Seal Beach, a California charter city ( "City "), and Jim Basham, an individual. -I- S7296-03 17\1 537003v6.dm RECITALS A. The City of Seal Beach ( "City ") hired Jim Basham ( "Employee ") to be City's Director of Community Development on December 3, 2012. B. Employee represents that he is still qualified to perform the duties of Community Development Director for City. C. Employee's terms of employment have previously been established by City's Terms and Conditions of Employment for Executive /Mid- Management Employees. D. 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 July 1, 2013. 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 Director of Community Development as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Director of Community Development 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 Thirteen Thousand Two Hundred Eighty -Two Dollars and Four Cents ($13,282.04). 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 employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. -2- 57296.0317\1 337003v6.dtc B. Cost of Living Salary Increases. Salary increases are as follows: 1. First pay period on or following July 1 2014 - 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, 2013 — March 31, 2014. 2. 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. BENEFITS. A. Health Insurance Coverage. 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 Emplo ee I $705.10 /month For Emplo ee and 1 dependent I $1,089.60 /month For Employee and 2 or more dependents I $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 2013, a single employee's monthly flex dollar allowance is $705.10; of that amount, $115 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, 2014, and every January 1st during the term of this Agreement, City shall increase the contribution amounts above by the -3- 57296 -0317 \1537003,6 m percentage of increase for basic plans published in the CalPERS circular letter setting health insurance premiums for the coverage year. 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 Program. 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 CaIPERS, as determined by CalPERS from time to time. ME S7296-031 7�I 537003v6.dm 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. 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 family. 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. -5- S7296 03 17\ 153 7003+'6,dm 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 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 5.17.2. 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. Employee shall accrue vacation leave as follows: After one year's continuous service as a full time employee: 120 hours. Employee shall accrue eight additional hours of vacation leave for each year of full -time continuous service each year after his first year. so S7296-03 17\1 53 70030.da 2. of 320 hours of vacation. Manager. Employee shall only be allowed to accumulate a maximum This maximum can only be exceeded with approval of the City 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: Holiday Date New Year's Day January 1st Martin Luther Kin Da 3rd Monday in January Presidents' Da 3rd Monday in February Memorial Day Last Monday in May Independence Day July 41h Labor Day First Monday in September Veteran's Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Day December 25th *Floating Holiday discretion of employee) Total of 12 holidays annually `Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. -7- S7296-031N 53 7003 0 dce 2. Holiday Closures. The City Manager may designate up to five specific work days in each calendar year between Christmas Day and New Year's Day during which all employees, including Employee, may be required to take time off, 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: t 3% (Employee pays 4 %). 91 1 % (Employee pays 6 %). C. nothing (Employee pays 7 %). Effective first pay period on or following July 1, 2013: Effective first pay period on or following July 1, 2014: Effective first pay period on or following July 1, 2015: 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. i� S72%- 0317A1537003,6.d,,c K. Mobile Phone Allowance. Employee shall receive a monthly mobile phone allowance of $75 in accordance with City Policy 200 -19. 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. M S7296-03M 1537003c6.dm 10. Employee must maintain the confidentiality of a donation. 6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or before every June 30th, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the City Manager and Employee shall 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, the City Charter 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 -10- 57296- 0317A15370030.doc 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. 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: Jim Basham City of Seal Beach 211 - 8th Street Seal Beach. California 90740 -11- 57296 -03 17\1 537003 v6.dm CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 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 By. Yl City Manag Date: ATTEST: City Clerk APPROVED AS TO FORM Cit orney 57296 -0317\1 537003OAm -12- JWO-C/ 12 j /W I 0 EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Robin Roberts City of Seal Beach 211 — 8t' Street Seal Beach, CA 90740 1- • • This Agreement is made as of October 26, 2015, by and between the City of Seal Beach, a California charter city ( "City "), and Robin Roberts, an individual. RECITALS A. Effective October 26, 2015, the City of Seal Beach ( "City ") has appointed Robin Roberts ( "Employee ") as City Clerk. B. Employee represents that she is still qualified to perform the duties of City Clerk C. City and Employee wish to enter into an Employment Agreement ( "Agreement "). 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 October 26, 2015. This Agreement shall be effective throughout the tenure of the Employee, subject to the termination provisions set forth herein. 2. DUTIES AND AUTHORITY. Employee shall exercise the powers and perform the duties of the position of the City Clerk as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Employee job description. Employee shall exercise such other powers and perform such other duties as the City Manager may assign. Employee shall serve at the pleasure of City's City Manager and shall be an "at will" employee not subject to any collective bargaining agreement or civil service system. 3. EMPLOYEE'S OBLIGATIONS. Employee shall devote her full energies, interests, abilities and productive time to the performance of this Agreement, and utilize her 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 her duties and responsibilities to City. 4. COMPENSATION AND REIMBURSEMENT FOR EXPENSES. A. Gross Monthly Base Salary. City shall pay Employee as full compensation for the performance of her duties under this Agreement a gross monthly salary of Nine Thousand Eight Hundred Sixty Seven Dollars and Sixty Six Cents ($9,867.66), on regular City payroll schedule and less any legally required deductions. 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 employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. -2- 0 B. Cost of Livinq Salary Increases. Employee may receive Cost of Living salary increases applicable to Executive Management employees as approved by the City Council. C. Expenses. City shall reimburse Employee for actual and necessary expenses incurred in the performance of her 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 on the same terms applicable to Executive Management employees and as specified herein. 2. City shall contribute to the cost of medical coverage for Employee and her 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, she 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, as applicable to Employee, shall be one of the following: For Employee only $ 755.32 /month For Employee and 1 dependent $ 1,161.21/month For Employee and 2 or more dependents $ 1,509.42 /month 4. A portion of the monthly flex dollar allowance is identified as City's contribution towards PEMHCA. Thus, for example, in calendar year 2015, a single employee's monthly flex dollar allowance is $755.32; of that amount, $122.00 has been designated by City as its required PEMHCA contribution to CalPERS. 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 may 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. 6. Employee is required to pay any premium amount in excess of the above City contribution, Such amount will be deducted from her payroll check on the first two pay periods for each month. 1911 • • 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. S. If Employee meets the waiver criteria and elects to waive enrollment in City's full flex cafeteria plan, she is eligible to receive $310.00 per month (upon showing proof of health insurance coverage under an alternative plan). Election forms are available in the Personnel Office. 9. After the Employee has completed 30 days of uninterrupted service she shall be enrolled in the full flex cafeteria plan on the first day of the net succeeding month. 10. City shall not contribute a flex dollar amount for Employee during any month she 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 Program. 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 her monthly salary, up to a maximum of $7,500 per month, whichever is lesser. 2. Said income continuation shall commence on the 31st 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 her expense. 2. In the event Employee retires from City, she shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer contribution towards health coverage under CaIPERS, 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, she shall be entitled to receive in cash each month an amount equal to the monthly contribution the City would otherwise have contributed toward her health insurance premiums. -4- E. Sick Leave. 1. Employee shall accrue sick leave at the rate of one day per month (8 working hours). The maximum accrual of sick leave hours shall be 520 hours. 2. Sick leave accrual balance will be paid to Employee upon termination at 25% of her 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 per Government Code. 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, after notice to return to duty, Employee shall be reinstated to the position she 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 authorized leave of absence without pay, Employee shall not be eligible to accumulate or receive benefits, except as specifically provided for in this Agreement, except that City shall contribute to an employee's medical and dental health plan, disability insurance plan, and life insurance plan for the first 30 days of leave of absence. 2. Bereavement Leave. City shall provide Employee with 40 hours paid bereavement leave in case of a death in the Employee's immediate family. 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. -5- 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 limits of military regulations to determine when such leave shall be taken_ If possible, Employee shall notify the Department Head of such leave request (10) 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 (3) months of military leave, Employee may continue said benefits at her cost. 4. Pregnancy Disability Leave of Absence. a. If Employee is disabled due to pregnancy, she shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. Employee may elect to take a lesser period of leave. b. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. 5. Family Leave. Upon a demonstration of need and subject to the following conditions, Employee may take leave or unpaid leave to care for her 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 Section 5.F.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 before the date 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. I n- 0 • 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. Employee shall accrue not more than one hundred twenty (120) hours vacation leave annually during continuance service as a full time employee at a rate consistent with the City's policy for all executive management employees. Employee shall accrue eight (8) additional hours of vacation leave annually for each year of full -time continuous service each year after her first year. 2. Employee shall only be allowed to accumulate a maximum of (320) hours of vacation. This maximum can only be exceeded with the prior written approval of the City Manager. 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 has 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 departmental 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. Not more than once in each fiscal year, Employee may, upon written request, receive cash 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: Holiday Date New Year's Day January 15 Martin Luther King Day 3rd Monday in January Presidents' Day 3rd Monday in February -7- 0 0 Holiday Date Memorial Day Last Monday in May Independence Day Jul 4 Labor Day First Monda in September Veteran's Day November 11 T�hanksqivinq Day ourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24 Christmas Day December 25th *Floating Holiday discretion of employee) Total of 12 holidays annually *Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. 2. Holiday Closures. The City Manager may designate, in writing, up to five (5) work days in each calendar year between Christmas Day and New Year's Day during which all employees, including Employee, may be required to take time off, 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 her account to cover the required time off, she may request, and will be granted, sufficient advance on her 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. 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 seven percent (7 %) of her compensation earnable. 3. City shall include Employee in CaIPERS Section 21354 — 2% @ 55 for miscellaneous members. 91 0 0 J. Seniority Bonus. Employee shall receive a 5% increase in base salary effective on the 10th anniversary of her 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. L. Administrative Leave. Employee shall receive forty eight (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 three and one -half percent (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 her own paid leave through bona fide serious illness or accident. 2. Employee cannot receive catastrophic leave at the same time she 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. fe=ll 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 every June 30th, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the City Manager and Employee shall 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 her duties under this Agreement. a. OTHER TERMS AND CONDITIONS OF EMPLOYMENT. The City Manager may from time to time fix other terms and conditions of employment, as well as job duties, 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, the 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 -10- e e 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. C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 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 her 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 §§ 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. -11- 0 0 13. NOTICES. All notices pertaining to this Agreement shall be sent to: EMPLOYEE: Robin Roberts City of Seal Beach 211 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 — 8th Street Seal Beach, California 90740 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. (Signatures to follow on next page) 12- • Executed by the parties as of the date below at Seal Beach, California. City of Seal Beach A, M-- A' I Date: IIS Of0M*Yd Tom' K4^-- 6--F Acting City Clerk APPROVE Attorney M -13- Robin Roberts AMENDMENT NO. 1 TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 .9 Victoria L. Beatley 2 11 - 8th Street Seal Beach, CA 90740 This Amendment No. 1, dated August 11 2014, amends that certain Amended and Restated Employment Agreement ( "Agreement ") dated June 24 2013 between the City of Seal Beach, a California charter city ( "City ") and Victoria L. Beatley, an individual ("Employee"). 1 RECITALS A. City and Employee are parties to the Agreement, pursuant to which Employee serves as Director of Finance /City Treasurer for City. B: City and Employee wish to amend the Agreement as provided herein. AMENDMENT NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows: Section 1. Section 9, Paragraph C of the Agreement is hereby amended to read as follows: "C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days' prior written notice." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested: CITY OF SEAL BEACH &:I,N... C , 11 &1 ffM RIA % WN g190A . _ - Attest: By: in a Devine, City lerk Approved as to L. FloINer, City Attorney 2 EMPLOYEE M Victoria L. Beatley AMENDED AND RESTATED EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Victoria L. Beatley 211- 8th Street Seal Beach, CA 90740 This Agreement is made as of June 24, 2013, by and between the City of Seal Beach, a California charter city ( "City'), and Victoria L. Beatley, an individual. -1- S7296 -0317 \I 537003v6.dm RECITALS A. On August 14, 2013, the City of Seal Beach ( "City ") hired Victoria L. Beatley ( "Employee ") as Director of Finance /City Treasurer. B. Employee represents that she is still qualified to perform the duties of Director of Finance /City Treasurer. C. City and Employee wish to enter into an Amended and Restated Employment Agreement ( "Agreement ") that amends and restates the rights and obligations of both parties. 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 July 1, 2013. 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 Employee as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Employee 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 her full energies, interests, abilities and productive time to the performance of this Agreement, and utilize her 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 her duties and responsibilities to City. 4. COMPENSATION AND REIMBURSEMENT FOR EXPENSES. A. Gross Monthly Base Salary. City shall pay Employee for the performance of her duties under this Agreement a gross monthly salary of Thirteen Thousand Two Hundred Eighty -Two Dollars and Five Cents ($13,282.05), less any legally required deductions. 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 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 2014 - 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 -2- 57296- 0317U537003v6.dm Industrial Relations for Los Angeles - Riverside - Orange County for the 12 months of April 1, 2013 — March 31, 2014, 2. 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 her 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, she 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 $705.10 /month For Employee and 1 dependent $1,089.60 /month For Employee and 2 or more dependents I $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 2013, a single employee's monthly flex dollar allowance is $705.10; of that amount, $115 has been designated by City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the full flex cafeteria plan. 5. Effective January 1, 2014, 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. -3- 57296- 03 1 715 3 7003,6.da 6. Employee is required to pay any premium amount in excess of the above City contribution. Such amount will be deducted from her 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, she 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. After the Employee has completed 30 days of uninterrupted service she shall be enrolled in the full flex cafeteria plan on the first day of the net succeeding month. 10. City shall not contribute a flex dollar amount for Employee during any month she is on leave of absence without pay or is absent from regular duties without authorization, for a full calendar month. B. Life Insurance Program. 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 her monthly salary, up to a maximum of $5,000 per month, whichever is lesser. 2. Said income shall become effective after Employee has completed 30 days of uninterrupted service. City shall enroll Employee in the program on the first day of the next succeeding month. 3. 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 her expense. 2. In the event Employee retires from City, she shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer ME 57296 -0317\ 1 537003 v6.dm contribution towards health coverage under CaIPERS, 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 her health insurance premiums. E. Sick Leave. 1. Employee shall accrue sick leave at the rate of one day per month (eight hours). The maximum accrual of sick leave hours shall be 520 hours. 2. Sick leave accrual balance will be paid to Employee upon termination at 25% of her 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 per Government Code. 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, after notice to return to duty, Employee shall be reinstated to the position she 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 authorized leave of absence without pay, Employee shall not be eligible to accumulate or receive benefits, except as specifically provided fir in this Agreement, except that City shall contribute to an employee's medical and dental health plan, disability insurance plan, and life insurance plan for the first 30 days of leave of absence. 2. Bereavement Leave. City shall provide Employee with 40 hours paid bereavement leave in case of a death in the Employee's immediate family. 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, -5- S7296-0317\1 5 3 7 00 v6.dw 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 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. Pregnancy Disability Leave of Absence. a. If Employee is disabled due to pregnancy, she shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. Employee may elect to take a lesser period of leave. b. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. 5. Family Leave. Upon a demonstration of need and subject to the following conditions, Employee may take leave or unpaid leave to care for her 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 Section 55.2. 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. 57296- 0317 \1537W3v6.dm 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. Employee shall accrue 120 hours vacation leave after one year's continuous service as a full time employee. Employee shall accrue eight additional hours of vacation leave for each year of full -time continuous service each year after her 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. 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 has 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 departmental 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. Not more than once in each fiscal year, Employee 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: Holiday Date New Year's Day January 1st Martin Luther King Day 3rd Monday in January Presidents' Day 3rd Monday in February -7- 57296 -0317\I537003Y6 dx Holiday Date Memorial Day Last Monday in May Independence Day July 4th Labor Day First Monday in September Veteran's Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Day I December 25th *Floating Holida discretion of employee) Total of 12 holidays annually `Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. 2. Holiday Closures. The City Manager may designate up to five specific work days in each calendar year between Christmas Day and New Year's Day during which all employees, including Employee, may be required to take time off, 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. Effective first pay period on or following July 1, 2013: 3% (Employee pays 4 %). In 57296 -0317\1 537003 v6.dm 6f 1 % (Employee pays 6 %). C. nothing (Employee pays 7 %). Effective first pay period on or following July 1, 2014: Effective first pay period on or following July 1, 2015: 3. City shall include Employee in CalPERS Section 21354 - 2% @ 55 for miscellaneous members. J. Seniority Bonus. Employee shall receive a 5% increase in base salary effective on the 10th anniversary of her uninterrupted employment with City. K. Mobile Phone Allowance. Employee shall receive a monthly mobile phone allowance in accordance with City Policy 200 -19 (currently $75) per month. 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 her 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. In 57296. 0317 \1537003,6.dm 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 every June 30th, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the City Manager and Employee shall 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 her 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: -10- 57296 -0317\1537003x(, Aw.. 1. Employee refuses or fails to perform the powers and duties of Employee as specified in Sections 2 and 3 of this Agreement, the City Charter 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. 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 her 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 §§ 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 -11- SR9"317V 537003OAm 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: Victoria L. Beatley City of Seal Beach 211 - 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 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 By: r �i -- City Manager Date: 3 -12- 57296 -03 MI 537003 v6.doc -13- 57296 -031 AI 537003vUm UL, - 2+, -,70 if) ATTEST: v y City Clerk APPROVED AS TO FORM - - , m/ &2� - City Attorney -13- 57276- 0317 \1537003v6A,. EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 r6l Victoria L. Beatley 211- 8th Street Seal Beach, CA 90740 This Agreement is made as of August 13. 2012, by and between the City of Seal Beach, a California charter city ( "City "), and Victoria Beatley, an individual. -1- RECITALS A. The City of Seal Beach ( "City ") desires to hire a Director of Finance /City Treasurer. B. Victoria L. Beatley ( "Employee ") represents that she is qualified to perform the duties of Director of Finance /City Treasurer. C. City and Employee wish to enter into an Employment Agreement that sets forth the rights and obligations of both parties. NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Employee agree as follows: 1. TERM. Employee shall commence her services on August 14, 2012, which shall also be deemed the effective date of this Agreement. 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 Employee as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Employee job description. Employee shall exercise such other powers and perform such other duties as the City Manager assigns. 3. EMPLOYEE'S OBLIGATIONS. Employee shall devote her full energies, interests, abilities and productive time to the performance of this Agreement, and utilize her 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 her duties and responsibilities to City. 4. COMPENSATION AND REIMBURSEMENT FOR EXPENSES A. Gross Monthly Base Salary. City shall pay Employee for the performance of her duties under this Agreement a gross monthly salary of $12,302.69, less any legally required deductions. On February 14, 2013, 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 employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. B. Expenses. City shall reimburse Employee for actual and necessary expenses incurred in the performance of her official duties that are supported by expense receipts in accordance with AB 1234 and any applicable City ordinances, resolutions, rules, policies or procedures. -2- S. BENEFITS. A. Health Insurance Coverage The City shall provide Employee a group hospital, medical and dental insurance plan. 2. The City shall contribute to the cost of medical coverage for Employee and her dependents, an amount not to exceed the California Public Employees' Medical and Hospital Care Act (PEMHCA) minimum contribution. 3. The City has implemented a full flex cafeteria plan for employees. If Employee opts to participate in the City's full flex cafeteria plan, she 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 I $643.34 /month For Employee and 1 dependent I $994.16 /month For Employee and 2 or more dependents I $1,285.64/month 4. A portion of the monthly flex dollar allowance is identified as the City's contribution towards PEMHCA. Thus, for example, in calendar year 2012, a single employee's monthly flex dollar allowance is $643.34; of that amount, $112 has been designated by the City as its required PEMHCA contribution to CalPERS. The monthly flex dollar allowance may only be used in accordance with the terms of the full flex cafeteria plan. 5. Effective January 1, 2013, and every January 1st during the term of this agreement, the City may increase the contribution amounts above by the percentage of increase for basic plans published in the CaIPERS circular letter setting health insurance premiums for the coverage year. 6. Employee is required to pay any premium amount in excess of the above City contribution. Such amount will be deducted from her payroll check on the 1st 2 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 the City's full flex cafeteria plan, she 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. -3- 9. After the Employee has completed 30 days of uninterrupted service she shall be enrolled in the full flex cafeteria plan on the 1st day of the next succeeding month. 10. The City shall not contribute a flex dollar amount for Employee during any month she is on leave of absence without pay or is absent from regular duties without authorization, for a full calendar month. B. Life Insurance Program 1. Employee shall receive a $50,000 life insurance policy paid by the City. 2. Said insurance shall become effective after Employee has completed 30 days of uninterrupted service. City shall enroll Employee in the program on the 1 st day of the next succeeding month. C. Income Continuation Program 1. Employee shall receive an income continuation policy to provide for income continuation of 66.67% of her monthly salary, up to a maximum of $5,000 per month, whichever is lesser. 2. Said insurance shall become effective after Employee has completed 30 days of uninterrupted service. City shall enroll Employee in the program on the 1 st day of the next succeeding month. 3. Said income continuation shall commence on the 31st 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 the City's health insurance program at her expense. 2. In the event Employee retires from the City, she shall be eligible to receive a City contribution not to exceed the PEMHCA minimum employer contribution towards health coverage under CaIPERS, as determined by CalPERS from time to time. 3. City's contribution for eligible dependent coverage for retirees shall terminate with the death of Employee. -4- 4. In the event Employee resides in an area where the health plans provided by the City are not in effect, she shall be entitled to receive in cash each month an amount equal to the monthly contribution the City would otherwise have contributed to her toward health and dental insurance premiums. E. Sick Leave 1. Employee shall accrue sick leave at the rate of 1 day per month (8 hours). The maximum accrual of sick leave hours shall be 520 hours. 2. Sick leave accrual balances will be paid to Employee upon termination at 25% of her base rate of pay. 3. Employee shall not accrue sick leave hours during authorized leaves of absence, without pay. F. Leaves of Absence 1. Authorized 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 the City, for a period not to exceed 180 working days per Government Code. 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, after notice to return to duty, Employee shall be reinstated to the position she 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 authorized leave of absence without pay, Employee shall not be eligible to accumulate or receive benefits, except as specifically provided for in this resolution, except that the City shall contribute to an employee's medical and dental health plan, disability insurance plan, and life insurance plan for the first 30 days of leave of absence. 2. Bereavement Leave a. In case of death within the immediate family of an employee, Employee shall be entitled to remain absent from duty with pay in order to attend the funeral or memorial service for a maximum of 24 consecutive work hours (i.e., up to 3 consecutive work days). Vacation, comp time or other leaves, as available, may be used to supplement Bereavement Leave to allow to absence to span 3 shifts. The bereavement leave shall not be chargeable to or accumulate as sick time. -5- b. If the funeral or memorial services are outside the state of California, Employee will be allowed up to 16 additional hours leave with pay. C. For the purpose of this section, immediate family is defined as husband, wife, domestic partner as defined by that State of California, father, mother, grandfather, grandmother, sister, brother, son, daughter, mother -in -law, father - in -law, stepchild, stepmother, stepfather, or such person who has served in the place of Employee's parent. sick leave accrual. Such leave shall not be charged against Employee's 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 limits of military regulations to determine when such leave shall be taken. If possible, Employee shall notify the City Manager of such leave request 10 working days in advance of the beginning of the leave. b. In addition to provision of State law, the City shall continue to provide Employee the current health benefits (medical, dental, disability and life insurance and retirement (if applicable) for the first 3 months of military leave. During said period, Employee shall be required to pay to the City the same co- payments as required of other employees. After the first 3 months of military leave, Employee may continue said benefits at her cost. 4. Pregnancy Disability Leave of Absence a. If Employee is disabled due to pregnancy, she shall be granted a pregnancy disability leave as provided by the State of California and the Federal Family Medical Leave Act. Employee may elect to take a lesser period of leave. b. Disabilities arising out of pregnancy shall be treated the same as other temporary disabilities in terms of eligibility for, or entitlement to, leave with or without pay. 5. Family Leave: Upon a demonstration of need and subject to the following conditions, Employee may take leave or unpaid leave to care for her newborn infant, whether through parentage or adoption, or to care for a seriously ill or injured member of Employees "immediate family" as defined in Section 2c. a. Proof of the birth or adoption of a newborn infant or the serious illness /injury of the family member must be submitted to the City. b. Requests for family leave must be submitted in writing to the City Manager at the earliest possible date proceeding the time when the leave is to begin. 9.1 C. Operational needs of the 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. f. A maximum of 400 working hours of family leave in any combination of sick leave and unpaid leave may be taken during any 2 year period unless a greater amount is prescribed by state or federal law. G. Vacation 1. Employee shall accrue 120 hours vacation leave after one year's continuous service as a full time employee. Employees shall accrue 8 additional hours of vacation leave for each year of full -time continuous service each year after her first year. 2. Employee shall only be allowed to accrue a maximum of 320 hours of vacation. This maximum can only be exceeded with approval of the City Manager. 3. Vacation shall not accrue during the period Employee is on any leave of absence without pay. 4. Employee is encouraged to use at least the amount of vacation hours earned each fiscal year. 5. The City will not approve vacation leave time prior to it has 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. City Manager may consider departmental 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 completing one year of continuous service, but not more than once in each fiscal year, Employee may, upon request, receive compensation for up to 50 hours of accrued vacation time provided that Employee has taken an equal amount of vacation time off within that fiscal year. 7- H. Holidays City shall grant Employee the following holidays with pay: Holiday Date New Year's Day January 1st Martin Luther King Day 3rd Monday in January President's Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Veteran's Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Da December 25th *Floating Holiday discretion of employee) Total of 12 holidays annually 'Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this agreement. 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, 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 her account to cover the required time off, she may request, and will be granted, sufficient advance on her 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. Retirement System 1. The retirement program provided by the City shall consist of a pooled Public Employees' Retirement System (PERS) plan which includes the following provisions: Section 20024.2 - One Year Final Compensation Section 20862.9 - Credit of Unused Sick Leave Section 20930.0 - 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 seven percent (7 %) of her compensation earnable. The City will pay, on behalf of Employee, a portion of the required employee contribution to CaIPERS, as follows. City shall contribute the following amounts toward the required employee contribution to CaIPERS: four percent (4 %) of Employee's compensation earnable in fiscal year 2012- 13; and thereafter, Employee shall make the entire required employee contribution to CaIPERS. 3. City shall include Employee in CaIPERS Section 21251.32 - 2% @ 55 for miscellaneous members. J. Seniority Bonus Employee shall receive a 5% increase in base salary effective on the 10th anniversary of her uninterrupted employment with the City. K. Mobile Phone Allowance Employee shall receive a monthly mobile phone allowance in accordance with City Policy 200 -19 (currently $75) per month. 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 The City shall contribute the equivalent to 3.5% of base salary per payroll period into a deferred compensation program for Employee. 6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or before February 28, 2013, and on or before every June 30 thereafter, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, City Manager and Employee shall 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, the 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 her duties under this Agreement. 8. OTHER TERMS AND CONDITIONS OF EMPLOYMENT. A. 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 the 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 the City if: a. Employee refuses or fails to perform the powers and duties of Employee as specified in Sections 2 and 3 of this Agreement, the City Charter or Municipal Code; b. 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 C. Employee breaches this Agreement, including, without limitation, any provision set forth in Section 2, "Duties and Authority," of this Agreement. C. Employee initiated Termination. Employee may terminate this agreement by providing the 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 8A, City shall: -10- a. Pay employee all vacation benefits earned, and b. Pay Employee an amount equal to her then - monthly base salary for a period of 4 months; 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 §§ 53260- 53264. 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: Victoria L. Beatley City of Seal Beach 211 - 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 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. -11- 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 G.l.[...0 - � ATTEST: City Clerk APPROVED AS TO FORM City Attorney -12- Victoria- L. B�eatlepyG 08. b(o. 2v I Z AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 E:a Joe Stilinovich 211- 8th Street Seal Beach, CA 90740 This Amendment No. 1, dated August 11, 2014, amends that certain Employment Agreement ( "Agreement') dated June 24, 2013 between the City of Seal Beach, a California charter city ( "City ") and Joe Stilinovich, an individual ( "Employee "). 1 RECITALS A. City and Employee are parties to the Agreement, pursuant to which Employee serves as Chief of Police for City. B. City and Employee wish to amend the Agreement as provided herein. AMENDMENT NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows: Section 1. Section 9, Paragraph C of the Agreement is hereby amended to read as follows: "C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days' prior written notice." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested: CITY OF SEAL BEACH Attest: By: 4naDevine, ity Jerk Approved as to By: " Steve A. Flog er, City Attorney _ 2 EMPLOYEE By: Joe Stilinovich EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 :- Joe Stilinovich 211- 8th Street Seal Beach, CA 90740 This Agreement is made as of June 24, 2013, by and between the City of Seal Beach, a California charter city ( "City "), and Joe Stilinovich, an individual. -1- 57296 -0317\ 15371 17,Tdm RECITALS A. The City of Seal Beach ( "City ") hired Joe Stilinovich ( "Employee ") to be City's Chief of Police on December 2, 2012. B. Employee represents that he is still qualified to perform the duties of Chief of Police for City. C. Employee's terms of employment have previously been established by City's Terms and Conditions of Employment for Executive /Mid- Management Employees. D. 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 July 1, 2013. 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 Chief of Police as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Chief of Police 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 Sixteen Thousand One Hundred Eighty -Two Dollars and Eighty -Eight Cents ($16,182.88). 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 employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. -2- 57296 - 0317 \15371170 M B. Cost of Livina Salary Increases. Salary increases are as follows: 1. First pay period on or following July 1, 2014 - 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, 2013 - March 31, 2014. 2. 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. POST Advanced Certificate Pay. City shall pay Employee Police Officers Standards and Training (POST) Advanced Certificate pay of $500 per month. D. 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: ForEm to ee $705.10 /month For Employee and 1 dependent $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 2013, a single employee's monthly flex dollar allowance is $705.10; of that amount, $115 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. -3- S7296-0317\15371 170.da 5. Effective January 1, 2014, 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 CaIPERS circular letter setting health insurance premiums for the coverage year. 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 Program. 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 31st 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. If Employee retires from City (either service or disability retirement), has 15 or more years of full -time City service, and has attained the age of 50 years, City shall provide Employee with the following group Healthcare insurance benefits: City shall contribute the minimum PEMHCA rate as determined by CaIPERS. ME S7296-0317\1 5371 17 v7.d(x 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. 4. Employee was credited with 80 hours of accumulated sick leave on his date of hire. 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 family. 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. -5- S7296-0317\1 5371 17r7Am 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 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 55.2. 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. Employee shall accrue vacation leave as follows: After one year's continuous service as a full time employee: 120 hours. Employee shall accrue eight additional hours of vacation leave for each year of full -time continuous service each year after his first year. 1111 57296- 0317\153711707 dm 2. of 320 hours of vacation Manager. Employee shall only be allowed to accumulate a maximum This maximum can only be exceeded with approval of the City 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. 7. Employee was credited with 200 hours of accumulated vacation on his date of hire. H. Holidays. 1. City shall grant Employee the following holidays with pay: Holiday 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 Da First Monday in September Veteran's Day November 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Day December 25th 'Floating Holiday discretion of employee) Total of 12 holidays annually -7- 57296 -0317\ 153 71 17v7.dm 'Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. 2. Holiday Closures. The City Manager may designate up to five specific work days in each calendar year between Christmas Day and New Year's Day during which all employees, including Employee, may be required to take time off, 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. 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 9% of his compensation eamable. 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 9% of his compensation eamable: a. Effective first pay period on or following July 1, 2013: 5% (Employee pays 4 %). b. Effective first pay period on or following July 1, 2014: 3% (Employee pays 6 %). C. Effective first pay period on or following July 1, 2015: 2% (Employee pays 7 %). 3. City shall include Employee in CaIPERS 3% @ 50 for local safety members. J. Uniform Allowance. Employee shall receive an annual uniform allowance of $800. Employer has already provided Employee with an initial issue of uniforms. Employer shall replace and /or In S7296- 0317\ 1 5371 17v 7 AX repair any equipment damaged within the course and scope of Employee's employment. Employee shall be responsible for the cost of recurring maintenance, repair, and /or replacement due to normal wear. K. Mobile Phone Allowance. Employee shall receive a monthly mobile phone allowance of $75 in accordance with City Policy 200 -19. 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. City Automobile. City shall provide Employee with an automobile to be used for both City and personal purposes, because Employee's City duties require that Employee have transportation readily available for his unrestricted use during his employment with City. 0. 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. 0 S7296-0317\15371 1 7vZd,K 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 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 every June 30th, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the City Manager and Employee shall 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, the City Charter or Municipal Code; -10- 57296 -03170 5371170Ad 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. 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 six 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. -11- S7296 03 17\15371 17 v7.dm 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: Joe Stilinovich City of Seal Beach 211 - 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 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 By: gia-awm City Manage Date: ATT ST: City Jerk -12- S7296-031 7\ 1537117v7,dm Joe Stilinovich 6 3- 13 APPROVED AS T FORM City Attorney AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 0 Joe Bailey 211- 8th Street Seal Beach, CA 90740 This Amendment No. 1, dated August 11, 2014, amends that certain Employment Agreement ( "Agreement') dated June 24, 2013 between the City of Seal Beach, a California charter city( "City ") and Joe Bailey, an individual ( "Employee "). 1 RECITALS A. City and Employee are parties to the Agreement, pursuant to which Employee serves as Marine Safety Chief for City. B. City and Employee wish to amend the Agreement as provided herein. AMENDMENT NOW, THEREFORE and in consideration of the foregoing and of the mutual covenants and promises herein set forth, the parties agree to amend the Agreement as follows: Section 1. Section 9, Paragraph C of the Agreement is hereby amended to read as follows: "C. Employee Initiated Termination. Employee may terminate this Agreement by providing City 30 days' prior written notice." Section 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be executed and attested: CITY OF SEAL BEACH EN By: (X:1 By (AI Ingram, City ager Attest: By: Li a Devine, City Clerk to City Attorney 2 EMPLOYMENT AGREEMENT Between City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Joe Bailey 211- 8th Street Seal Beach, CA 90740 This Agreement is made as of June 24, 2013, by and between the City of Seal Beach, a California charter city ( "City "), and Joe Bailey, an individual. -1- 57296- 0317 \1537087v6.dm RECITALS A. The City of Seal Beach ( "City ") hired Joe Bailey ( "Employee ") to be City's Marine Safety Chief on March 10, 2004. B. Employee represents that he is still qualified to perform the duties of Marine Safety Chief for City. C. Employee's terms of employment have previously been established by City's Terms and Conditions of Employment for Executive /Mid - Management Employees. D. 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 July 1, 2013. 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 Marine Safety Chief as set forth in the City Charter, City Municipal Code, personnel rules, regulations and procedures and Marine Safety Chief 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 Nine Thousand Eight Hundred Seventy -Five Dollars and Ninety -Four Cents ($9,875.94). 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 employees of City are paid. Employee shall be exempt from the overtime pay provisions of California and federal law. -2- S7296-03 17U 537087v6.dm B. Cost of Living Salary Increases. Salary increases are as follows: 1. First pay period on or following July 1 2014 - 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, 2013 - March 31, 2014. 2. 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 $705.10 /month For Employee and 1 dependent $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 2013, a single employee's monthly flex dollar allowance is $705.10; of that amount, $115 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, 2014, and every January 1st during the term of this Agreement, City shall increase the contribution amounts above by the -3- 57295 -0317\ 1537087vUm percentage of increase for basic plans published in the CalPERS circular letter setting health insurance premiums for the coverage year. 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 Program. 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. When Employee retires from City, if he is still in the Executive Management classification at that time and has 20 or more combined years of employment with City, Employee shall be provided with individual medical insurance coverage. If Employee has 30 or more combined years of employment with City upon retirement, Employee shall also be provided eligible dependent medical insurance coverage at the rate of (a) the average of the two lowest cost medical care plans offered IE S72%-0317\1 537087 v6. dae by CaIPERS, or (b) the CaIPERS Kaiser HMO, whichever is greater. When the retired Employee becomes Medicare eligible, City's contribution will be capped at the rate of (a) the average of the two lowest cost Medicare supplement plans offered by CaIPERS, or (b) the CaIPERS Kaiser HMO Medicare supplement plan, whichever is greater. 3. If Employee is eligible to receive, and receives, retiree health insurance per Sub - section 5.D.2 above, Employee may also receive an increase to the medical insurance cap in effect at the time of his/her retirement (not to exceed $175 per month in additional contributions), until Medicare begins at age 65 with lower supplemental insurance rates. This additional contribution to the cap will accommodate increases in medical insurance plans over the term of Employee's retirement. 4. 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 CaIPERS, as determined by CalPERS from time to time. 5. In all cases, City's contribution for eligible dependent coverage for retirees shall terminate with the death of the retired Employee. 6. 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. 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. -5- 57296 -01 17\ 1 537087V6 dM 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 family. 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 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 5.F.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. M 57296 -031 T1537087O.m 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. Employee shall accrue vacation leave as follows: After one year's continuous service as a full time employee: 120 hours. Employee shall accrue eight additional hours of vacation leave for each year of full -time continuous service each year after his 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. 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. Not more than once in each fiscal year, Employee 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. 7- S7296-03 1 711 5 3 70 N 7 v 6. d m H. Holidays. 1- City shall grant Employee the following holidays with pay: Holiday Date New Year's Day January 1 st 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 11th Thanksgiving Day Fourth Thursday in November Calendar day following Thanksgiving Da Christmas Eve December 24th Christmas Day December 25th *Floating Holiday discretion of employee) Total of 12 holidays annually 'Floating Holiday must be taken during each fiscal year (July 1st through June 30th) and may not be carried forward beyond the term of this Agreement. 2. Holiday Closures. The City Manager may designate up to five specific work days in each calendar year between Christmas Day and New Year's Day during which all employees, including Employee, may be required to take time off, 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. 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 9% of his 11:11 57296 -0317U 5370870.dm compensation earnable. City will pay, on behalf of Employee, a portion of the required employee contribution to CalPERS, as follows. City shall pay the following amounts toward the Employee's CalPERS required contribution of 9% of his compensation earnable: a. Effective first pay period on or following July 1, 2013: 5% (Employee pays 4 %). b. Effective first pay period on or following July 1, 2014: 3% (Employee pays 6 %). C. Effective first pay period on or following July 1, 2015: 2% (Employee pays 7 %). 3. City shall include Employee in CalPERS 3% @ 50 for local safety members. J. Seniority Bonus. Employee shall receive a 5% increase in base salary effective on the 10th 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. 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. City Automobile. City shall provide Employee with an automobile to be used for both City and personal purposes, because Employee's City duties require that Employee have transportation readily available for his unrestricted use during his employment with City. O. Catastrophic Leave. Employee may participate in City's Catastrophic Leave Pool Program subject to the following conditions: In S7296-03M 1537087% 6AK 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 every June 30th, the City Manager may conduct an evaluation of Employee's performance. During that evaluation, the City Manager and Employee shall 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 9952 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. -10- S1296-017U 537087v6.dm 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, the City Charter 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. 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 -11- 57296-031 N 537087O.Am 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: Joe Bailey City of Seal Beach 211 - 8th Street Seal Beach, California 90740 CITY: City Clerk City of Seal Beach 211 - 8th Street Seal Beach, California 90740 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. -12- 57296 -031711 537087v6.doc 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 1110" I . II . i N Date: i � ATTEST: L City Clerk APPROVED AS TO FORM Oty Attorney 57296 -0317 \1537087, Um -13- /a -/3 -/"Z