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HomeMy WebLinkAboutC20161 City Manager Employment Agreement - Carlos L. Ortega_JNTRACT NO. C20161 CITY MANAGER AGREEMENT THIS AGREEMENT is entered into the day of 2005 between the CITY OF PALM DESERT, a municipal corporation, by and through its City Council (hereinafter referred to as the "City') and CARLOS ORTEGA (hereinafter referred to as "Mr. Ortega"). The above -named parties hereby mutually promise and agree: WHEREIN, the parties entered into an Agreement on May 9, 2002 for employment of Mr. Ortega as City Manager for the City of Palm Desert, California. This Agreement is intended to clarify the modified terms of such agreement and employment. The parties need to agree as follows: 1. Employment The City desires to employ Mr. Ortega as its City Manager, and Mr. Ortega agrees to accept employment by the City as its City Manager upon the terms and conditions set forth below. 2. Responsibilities Mr. Ortega, as City Manger, shall be responsible to the City for all actions concerning the City's management and operations. In particular, he shall be responsible for, but not limited to: a. Performing functions and duties as specified by the City's policy manual and performing other legally permissible and proper duties and functions as the City shall, from time to time, assign in accordance with applicable law. b. Interviewing, hiring, reviewing and terminating employees and department directors. c. Managing all aspects of personnel employed by the City. In addition, Mr. Ortega shall perform such other duties as may be assigned by the City. The City agrees to provide Mr. Ortega with adequate technology (computer, cellular telephone, pager) to accomplish his duties. 3. Term of Employment This Agreement shall be for an indefinite term until terminated as herein provided. b. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City to terminate without cause the services of Mr. City Manager Agreen.,,.rt _43NTRACT NO. C20161 July 14, 2005 2 Ortega at any time, subject only to the payment of severance pay as provided in Section 4. c. Except as provided in Section 5, nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Mr. Ortega to resign at any time from his position with the City. 4. Termination by City a. Mr. Ortega serves at the will and pleasure of the City and may be terminated with or without cause at any time during this Agreement. Consequently, nothing in this Agreement, including but not limited to Section 3 above, shall in any way affect the City's right to terminate the employment of Mr. Ortega and this Agreement with or without cause as provided herein. b. In the event Mr. Ortega's employment is terminated either involuntarily or through a negotiated resignation, the City agrees to pay Mr. Ortega a terminating. cash payment equal to six (6) months aggregate salary, benefits and deferred compensation ("severance pay"). Mr. Ortega shall also be compensated for all accrued vacation, holidays, other benefits, in accordance with City policy. Severance pay shall be paid in full within fifteen (15) working days after the effective date of Mr. Ortega's termination or negotiated resignation unless Mr. Ortega elects to receive payments in other increments as determined by Mr. Ortega. Mr. Ortega may elect, in lieu of cash payment, to be compensated on a monthly basis with maintenance of full benefits until all severance pay and leave time is exhausted. c. In the event Mr. Ortega's employment is terminated for cause, based on serious misconduct, he shall not be entitled to any severance payment. "Serious misconduct" is defined as follows: i. A willful breach of this Agreement. ii. Habitual neglect of duties required to be performed under this Agreement. iii. Entry of plea of guilty or nolo contendere to a felony or a crime involving moral turpitude. iv. Commission of any act which would constitute a crime, whether misdemeanor or felony, and which would bring disrespect to the office of City Manager or the City. I ( _ JNTRACT NO. C20161 City Manager Agreem.,.it July 14, 2005 3 v. Refusal or failure to act in accordance with a specific directive or order of the City Council. vi. Maintaining a conflict of interest after being directed to resolve said conflict by a majority of the City Council. vii. Use of illegal drugs or abuse of legal drugs if job performance is adversely affected. viii. Sexual or other prohibited harassment of a City employee, or physical violence directed at any City employee. d. The City shall deliver to Mr. Ortega a written statement which explains the grounds for a termination for Serious Misconduct before his employment is terminated. The City's action to terminate the employment relationship shall be final and is not dependent on any particular showing or degree of proof. Nevertheless, Mr. Ortega may seek review, pursuant to Paragraph 11 herein, of the City's action to withhold severance pay. In such an action, the City bears the burden of proving Serious Misconduct. e. In the event the City reduces the salary, compensation, other financial benefits, or scope of authority of Mr. Ortega in a greater percentage than applicable with an across-the-board reduction for all management employees of the City, or in the event the City refuses, following written notice, to comply with any other provision benefiting Mr. Ortega contained in this Agreement, then in that event, Mr. Ortega may elect to be deemed to be terminated at the date of such occurrence within the meaning and context of the severance pay provision. 5. Termination by Mr. Ortega a. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Mr. Ortega to resign at any time from his position with the City, subject only to the provisions set forth in this Agreement. b. In the event Mr. Ortega resigns, he shall not be entitled to any severance pay. In other words, this Agreement, Mr. Ortega's employment and the City's obligations to compensate Mr. Ortega shall cease on the effective date of resignation. c. In the event Mr. Ortega voluntarily resigns his position with the City, he shall give the City thirty (30) days written notice, in advance, unless the parties agree otherwise. City Manager Agreem-'at July 14, 2005 6. Mr. Ortega's Time _JNTRACT NO. C20161 4 Mr. Ortega shall devote his full productive time, ability and attention to his duties as City Manager. Mr. Ortega shall not directly or indirectly render any services of a business, commercial or professional nature to any other person or organization for compensation. Both parties recognize that Mr. Ortega is a member of the International City/County Management Association (ICMA) and is subject to the ICMA Code of Ethics, with professional obligations to the City, including restrictions on personal investments and employment in the community. 7. Salary a. The Salary of Mr. Ortega, for his services as City Manager, shall be per year, payable in installments at the same time as other management employees of the City or as the same may be modified in accordance with the annual performance review of paragraph 9 hereinafter set forth. The salary for Mr. Ortega shall be in addition to and not included within all benefits to other management employees, including cost -of -living increase, life, medical and dental insurance, deferred compensation program, retirement program, sick leave and paid jury duty. b. The City shall reimburse Mr. Ortega, within its approved budget and upon approval of the City, for all actual and necessary expenses incurred in connection with the performance of his official duties. Mr. Ortega agrees to maintain accurate records of all expenses for which reimbursement is claimed. 8. Benefits a. Except as provided for otherwise in this Agreement, Mr. Ortega shall be entitled to receive all benefits provided to other City management employees. These benefits include, but are not limited to, cost -of -living increase, life, dental and medical insurance, deferred compensation program, retirement program, sick leave and paid jury duty. Mr. Ortega's entitlement to full benefits shall commence immediately upon Mr. Ortega's commencement of duties under this Agreement. b. Mr. Ortega may accrue up to six (6) months vacation leave. Upon termination of this Agreement, voluntary. or otherwise, Mr. Ortega shall be compensated for all accrued vacation leave. c. While employed by the City, the City shall pay the insurance premiums for a term life insurance policy in the amount of four (4) times his A Y. City Manager Agreem.,at I _JNTRACT NO. C20161 July 14, 2005 5 annual base salary set forth in Section 7 above, as from time to time adjusted. The City may select the carrier to provide coverage or compensate Mr. Ortega (up to the cost of a term life policy) for life insurance payments made by him. d. Mr. Ortega's duties require that he shall have available a personal automobile for his use, at all times. Mr. Ortega shall also be responsible for the insurance (liability, property damage, and comprehensive [minimum coverage of $100,0001$300,000]), operating expenses, maintenance and repairs of the automobile. The City shall compensate Mr. Ortega per month for such use above and beyond his stated salary and benefits herein. 9. Performance Evaluation The City shall review Mr. Ortega's performance, on a yearly basis, and develop mutually agreeable performance goals and criteria for the subsequent year. Thereafter, in consultation with Mr. Ortega, the City may change such goals and criteria, from time to time. At least once annually thereafter, the City shall review Mr. Ortega's performance to determine any salary increase deemed appropriate based on his annual performance review. 10. Conferences, Training and Education Mr. Ortega shall be reimbursed, within budget, for the cost of attending national, state and local conferences, provided the City Council explicitly approves of such attendance in advance. When possible, and in the City's discretion, the City shall budget and pay for the cost of registration, housing, travel and subsistence related to these programs, which in the opinion of the City, serve to continue the professional development of Mr. Ortega. 11. Arbitration Any disagreement between Mr. Ortega and the City regarding Mr. Ortega's employment pursuant to this Agreement shall be subject to final and binding arbitration, in accordance with the rules of the American Arbitration Association. 12. Attorney's Fees If the services of an attorney are required by either party to secure the performance hereof, or otherwise upon the breach or default of either party, or if any judicial remedy or arbitration is necessary to enforce or interpret any provision of this Agreement, or the rights and duties of any person in relation thereof, the prevailing party shall be entitled to reasonable attorney's fees. x=ri City Manager Agreemwit July 14, 2005 13. Bonding _ JNTRACT NO. C20161 The City shall bear the full costs of any fidelity or other bonds required of Mr. Ortega under any law or ordinance. 14. General Provisions a. This Agreement supersedes any and all other agreements, whether prior or contemporaneous, either oral or written, or implied by the prior course of conduct between the parties hereto with respect to the employment of Mr. Ortega by the City and contains all of the covenants and agreements between the parties with respect to the employment of Mr. Ortega by the City. b. Each party agrees and acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein and that any agreement, statement, or promise not contained in this Agreement shall not be valid or binding on either party. c. Any modification of this Agreement will be effective only if made in writing and signed by both Mr. Ortega and the City. d. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. e. This Agreement shall be governed by and construed in accordance with the law of the State of California. f. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this Agreement. g. Mr. Ortega acknowledges that he has had an opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this Agreement. City Manager Agreement July 14, 2005 7 h. The following rules shall apply in interpreting the meaning of this Agreement: (a) "includes" and "including" are not limiting, (b) "or" is not exclusive, (c) each reference to any gender shall include reference to all other genders, as appropriate, and (d) "all" includes "any" and "any" includes "all". i. This Agreement shall become effective commencing July 1, 2005 ("effective date"). CARLOS ORTEGA CITY OF PALM DESERT 0 ATTEST: Rachelle Klassen, City Clerk City of Palm Desert BUFORD CRITES, MAYOR