HomeMy WebLinkAboutAGMT - Henderson, Michael (Police Chief)EMPLOYMENT AGREEMENT
Between
City of Seal Beach
211 - 8th Street
Seal Beach, CA 90740
Michael Henderson
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This Agreement is made to be effective as of November 27, 2022, by and between
the City of Seal Beach, a California charter city ("City"), and Michael Henderson, an
individual ("Employee").
RECITALS
A. Effective November 27, 2022, the City of Seal Beach ("City") has appointed
("Employee") as Chief of Police.
B. Employee represents that he is qualified to perform the duties of the Police
Chief.
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 November 27, 2022. 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 Chief of Police as set forth in the City Charter,
City Municipal Code, personnel rules, regulations and procedures and Employee's 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 the City
Manager and shall be an exempt, "at will" employee not subject to any collective
bargaining agreement or civil service system.
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 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 as full
compensation for the performance of his duties under this Agreement a gross monthly
amount of nineteen thousand, nine hundred eighty seven dollars and forty nine cents
($19,987.49), 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 compensation shall be subject to withholding and other
applicable taxes, and shall be payable to Employee at the same time as other employees
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of City are paid. Employee shall be exempt from the overtime pay provisions of California
and federal law.
B. Cost of Living Salary Increases. Effective with the first pay period
after July 1 of each year, Employee may receive annual Cost of Living salary increases
applicable to Executive Management employees, as approved by the City Council for
subsequent fiscal year, based on the change in the applicable California Consumer Price
Index ("CPI") for the immediately preceding April -April period, not less than 2% and not
more than 4% in any given year.
C. Experience Pay. Due to Employee's hire date occurring on or
before June 30, 2010 and previous representation in the Police Management Association,
Employee is eligible for experience pay as follows:
1. Employee has a minimum of ten (10) years of full-time
service as a sworn peace officer with a Municipal, County, or State Police agency
meeting Police Officer Standards and Training (P.O.S.T.) standards, or their equivalent
and is eligible to receive experience pay.
2. To qualify for experience pay, Employee must meet the
minimum years of service required and receive an overall satisfactory performance
appraisal. The recommendation of Experience Pay is subject to verification and approval
by the City Manager.
3. Experience Pay — Ten (10) Years of Service
After ten (10) years of qualifying service, experience pay shall be paid at a rate of five
percent (5%) of Employee's then -current monthly base salary.
4. Experience Pay — Twenty (20) Years of Service
After twenty (20) years of qualifying service, experience pay shall be paid at a rate of ten
percent (10%) of Employee's then -current monthly base salary.
5. Experience Pay — Twenty -Five (25) Years of City of Seal
Beach Service
After twenty-five (25) years of City of Seal Beach Service (only service with the City of
Seal Beach shall apply), experience pay shall be paid at a rate of fifteen percent (15%)
of the qualified employee's monthly base salary.
6. Experience Pay is not cumulative. Thus, the Employee will
only receive the highest level of experience pay for which the Employee is qualified. For
example, reaching twenty (20) years of service stops the five percent (5%) level of
experience pay and receives the 10% pay. Such an employee does not receive both the
fiver percent (5%) level and the ten percent (10%) level at the same time.
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D. City Automobile. City shall provide Employee with an automobile
at City's expense for Employee's use for both City and personal use, in recognition that
Employee's duties require that Employee have transportation readily available for his
unrestricted use at all times during his employment with the City.
E. Expenses. With the exception of automobile expenses, City shall
reimburse Employee for actual, reasonable, 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, subject to the approval of the City Manager.
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 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, as applicable to Employee, shall be one of the
following:
For Employee
only
$ 986.91/month
For Employee
and 1 dependent
$ 1,525.10/month
For Employee
and 2 or more dependents
$ 1,972.24/month
4. A portion of the monthly flex dollar allowance is identified as
City's contribution towards PEMHCA. Thus, for example, in calendar year 2022, a single
employee's monthly flex dollar allowance is $986.91; of that amount, $149.00 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, 2023, 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 by CalPERS, which sets 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 regular payroll
checks each month.
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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 $350.00 per month
(upon showing proof of health insurance coverage under an alternative plan). Election
forms are available in Human Resources.
9. After the Employee has completed 30 daysof uninterrupted
service he shall be enrolled .in the full flex cafeteria plan on the first day of the next
succeeding month.
10. 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.
11. Effective January 1, 2023 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.
B. Life Insurance Program.
The City shall provide and pay one hundred percent (100%) of the
premium for a term life insurance policy with a face value of seventy five thousand dollars
($75,000.00), double indemnity accidental death benefit and a dependent death benefit
in the amount of one thousand dollars ($1,000.00) per dependent.
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
$7,500 per month, whichever is lesser.
2. Said income continuation policy 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 policy shall commence on the 31st
day of sickness or other bona fide absence or upon expiration of sick leave, whichever
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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 as provided herein.
2. In the event Employee retires from City before he has
attained fifteen (15) or more years of full time employment at the City of Seal Beach and
he has attained the age of (50), 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. If Employee has fifteen (15) or more years of full-time City of
Seal Beach service on the date of retirement, City shall pay for the group health care
insurance premium for such sworn retired employee at the rate of either (a) the average
of the two (2) lowest cost health care plans offered by CaIPERS, or (b) the CalPERS
Kaiser HMO Medicare supplement plan, whichever is greater.
4. If Employee has twenty (20) or more years of full-time City of
Seal Beach service on the date of retirement, City shall pay such retired employee and
one dependent, depending on the qualified dependent status, the group health care
insurance premium for such sworn retired employee at the rate of either (a) the average
of the two (2) lowest cost health care plans offered by CaIPERS,, or (b) the CalPERS
Kaiser HMO Medicare supplement plan, whichever is greater.
5. If Employee has twenty five (25) or more years of full-time
City of Seal Beach service on the date of retirement, City shall pay such retired employee
and dependents, depending on the qualified dependent status, the group health care
insurance premium for such sworn retired employee at the rate of either (a) the average
of the two (2) lowest cost health care plans offered by CalPERS, or (b) the CalPERS
Kaiser HMO Medicare supplement plan, whichever is greater.
6. When Employee becomes Medicare eligible, the City's
contribution for retiree health insurance will be capped at the rate of either (a) the
average of the two (2) lowest cost health care plans offered by CaIPERS, or (b) the
CalPERS Kaiser HMO Medicare supplement plan, whichever is greater.
7. In all cases, City's contribution for eligible dependent
coverage for the retiree's dependents shall terminate with the death of the retiree.
8. After retirement, in the event Employee resides in an area
where the health plans provided by City are not in effect, he shall be entitled to receive
in cash each month an amount equal to the monthly contribution City would otherwise
have contributed toward his health insurance premiums.
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E. Sick Leave. Employee shall accrue sick leave at the rate of one
day per month (8 working hours). There is no limit on the amount of sick leave
Employee may accumulate. Employee may be paid for unused sick leave as follows
1. Employees who have not completed fifteen (15) years of
service with the City shall not be eligible to be paid for any accumulated sick leave,
nor shall any accumulated sick leave be used to postpone the effective date of
retirement as determined by the City.
2. Upon separation from the City, if Employee has completed a
minimum of fifteen (15) years of service with the City, Employee shall have the choice of
to:
a. Be paid for accumulated sick leave up to twenty
percent (20%) of the accumulated sick leave bank at Employee's final rate of pay.
b. Convert the hours to eight (8) hour work days and
report to CalPERS as service credit.
C. A combination of pay for accumulated sick leave and
service credit with a maximum of twenty percent (20%) payout compensation of total
accumulated sick leave banked time at the time of separation.
d. Accumulated. time shall not be used to postpone the
effective date of the retirement or separation as determined by the City.
F. Leaves of Absence.
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, in its sole discretion, grant a leave of absence, with or without pay, for a total leave
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 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 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
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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.
3. Military Leave of Absence. 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.
a. 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 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 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.
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.
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1. Employee shall accrue not more than one hundred twenty
(120) hours vacation leave annually during continuous 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 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 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 120 hours of accrued vacation time
subject to the City's normal accrual and "cash out' policies and procedures.
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
3rd Monday in February
-Presidents'Day
Memorial Day
Last Monday in May
Independence Day
July 4th
Labor Day
First Monday in September
Veteran's Day
November 11th
Day
Fourth Thursday in November
-Thanksgiving
Calendar day following Thanksgiving Da
Christmas Eve
December 24th
Christmas Day
December 25th
*Floating Holiday
discretion of employee)
Total of 12 holidays annually
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*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 nine percent (9%)
of his compensation earnable.
3. City shall include Employee in CaIPERS Section 21354 — 3%
@ 50 for safety members.
Administrative Leave.
Employee shall receive eighty eight (80) 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.
K. Deferred Compensation.
City shall contribute the equivalent to three and one-half percent (3.5%) of his base salary
per payroll period into a deferred compensation program for Employee.
L. Catastrophic Leave.
Employee may participate in City's Catastrophic Leave Pool Program subject to the
following conditions:
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I . 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.
M. Tuition Reimbursement Program. Employee shall be eligible
for tuition reimbursement for career -related college or graduate level degree programs
under the program rules applicable to all other City employees.
N. Mobile Phone Allowance.
Employee shall receive a monthly allowance not to exceed seventy-
five dollars ($75.00) for the maintenance of a mobile phone. It is understood that
Employee will make himself available by mobile phone to address City matters as
needed.
6. ANNUAL EVALUATIONS AND SALARY REVIEW. On or about every
June 30, 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.
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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, 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. The City Manager may terminate
this Agreement and Employee's employment with City with cause, and without the
payment of any severance benefit, 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, material violation of City policy, 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 30 days advance written notice. The City Manager may, in
his or his sole discretion, waive all or part of this advance notice period.
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10. SEVERANCE.
A. If City Manager terminates this Agreement (thereby terminating
Employee's employment with City) without cause pursuant to Section 9.A, City shall:
Pay employee all vacation benefits earned and not used, and
2. Pay Employee an amount equal to six (6) times his then -
monthly base compensation; 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, t. at r0 presentations,
inducements, promises or agreements, oral oir-,writte�i;�; `ave been made y any;:pa , or
anyone acting on behalf of any party, which gs4riot�mbbdiedhhere�n,arid-th�at noyother
agreement, statement, or promise not contained in $hrs Agreement shall bea, id 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: Michael Henderson
911 Seal Beach Boulevard
Seal Beach, California 90740
(or at such other address as Employee may designate
later in writing)
CITY: City Manager
City of Seal Beach
211 8th Street
Seal Beach, California 90740
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Such notice shall be deemed made when personally delivered, transmitted by
facsimile, or when mailed, 48 hours after deposit in the U.S. Mail, first class postage
prepaid and addressed to the party at its applicable address. Actual notice shall be
deemed adequate notice on the date actual notice occurred, regardless of the method of
service.
14. GENERAL PROVISIONS.
A. If any provision of this Agreement is held invalid or unenforceable,
the remainder of this Agreement shall nevertheless remain in full force and effect. If any
provision is held invalid or unenforceable with respect to particular circumstances, it shall
Y 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. Ingram, City Manag
Date: 03/ 27 I2 ° 23
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Employee
Michael Henderson
A
APPROVED AS TO FORM
A:O'Steele; City Attorney
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