HomeMy WebLinkAboutRatiftn - Cty Mngr John M. Wohlmuth Contract C28520 � � � �. �-K�r— � � ,
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�T� CITY OF PALM DESERT
� � C4MMUNITY SERVICES DIVISION �-
C1TY CLERK OPERATIONS
INTEROFFlCE MEMORANDUM
To: John M. Wohlmuth
Ci#y Manager/RDA Executive Director
From: City Clerk
Date: February 2, 20Q9
Subject: Contract No. C28520 -City Manager Agreement
At its regular meeting of January 22, 2009, the Palm Desert City Council approved the
subject agreement with City Manager John M. Wohlmuth efFective February 1,,2009.
Attached for your recards is a fully executed original of#he Agreement.
Please let me know whenever I can be of furfiher assistance.
R HELLE D. KLASSEN, CMC
CITY CLERK CITYCOUNCILAC�tON
APPROVED � DENiED
Attachment (as noted} RECEIVED OTHER
cc%nc: Human Resources Department MEETI G DA�
AYF.S:•• ' �
NOES:
ABSENT: �
ABSTAIN:
VERIFIED BY:
Original on File with Cf erk's Oftice
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CITY MANAGER AGREEMENT
THIS AGREEMENT is entered into the�day o , 2p09 between the
CITY OF PALM DESERT, A municipal corporation, by and through it ity Council
(hereinafter referred�o as tlie"City") and JOHN M. WOHLMUTH (hereinafter referred to as
"Mr. Wohlmutli"). The above named parties here6y mutually promise and agree:
1• Emplo,yment
The City desires to employ 1!ir. Wohlmuth as its City Manager, and Mr.
Wohlmuth agrees to accept employment by the City as its City Manager upon the terms and
conditions set forth below.
2. Responsibilities
Mr. Wohlmuth, as City Manager, shall be responsible to the City for all actions
concerning the City's manage�nent and operations. In particular, he shall be responszble for, but
not limited to:
a. Performing �functions and duties as specified by the City's policy manual
and perfonning other iegally pemiissible and proper duties and functions as the City shall, from
time to tiine, assign in accordance with applicaUle law. -
b. [nterviewing, hiring, reviewing and terminating employees and
de�artment directors.
�- Managing all aspects of personnel employed by the City.
d. Serving as Executive Director of the Paim Desert Redevelopment Agency,
Executive Of'fcer of the Palm Desert Housing Authority, Chief Administrative Officer of the
Palm Desert Pir�ancing Authority, Executive Officer of the Palm Desert Parking Authority, and
alt ciuties and responsibilities relating to these and any other City agencies, including the Palm
Desert Recreational Facilities Corporation.
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In addition, Mr. Wohimuth shall perform such other duties as may be assigned by
the City. Tlie City agrees to provide Mr. Wohl.muth with adequate technology {computer, ._
celluIar telephpne,pager} to accomplish his duties.
3. Term of Employnnent
a. This A�,neement shall be for a term of three (3) years cointnencing
February 1, 2009 unless terminated by eitl�er party i:n accordance with this agreement.
b. Nothing in this Agreement shall prevent, limit, or otherwise interfere with
the x•ight of the City to terminate without cause the services of Mr. Wohlmuth at any time,
subject onl.y to the payment of severance pay as provided in Section 4.
c. Except �s provided in Section 5, nothing in this Agreement shall prevent,
limit, or ofherwise interfere with the right of Mr. Wohlinuth to resign at anytizne from his
position wi.th t11e City.
4. Termination by City
�- Mr. Wohlmuth serves at the will and pleflsure of the City and may be
terminated with or without cause at any time during this Ageement. Consequently, nothing in
this Agreement, inclucliiig but not limited to Section 3 above, shall in any way affect the City' s
right to terminate the employment af Mr. Wohlniuth and this Agreement with or vyithout cause
as provided herein.
b. In fhe event Mr. Wohlmuth's employment is terminated either
involuntarily or through a negotiated resignation, the City agrees to give Mr. Wohlmuth at least .
90 days notice and to pay Mr. Wohlmuth a terminating cash payment equal to six (6) months
aggregate salary, benefits and deierred compensation ("severance pay"). Mr. Wohlmufh shall
aIso be co�npensated for al) accrued vacatian, hoIidays, other benefits, in accordance with City
palicy. Severance pay sha(I be paid in full within fifteen (]5) wo:rking days after the effective
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date of Mr. W�hJmutl� 's tennination or negotiated resignation unless Mr. Wohlmuth elects ta
receive payine»ts in other increments as determined by Mr. Wohlmuth. Mr. Wohlmuth may _
elect, in lieu of cash payrnent, to be compensated on a monthly basis with maintenance of full
benefits until alt severance pay and leave time is exhausted.
c. In the event Mr. Wohlmuth's employ�nent is tenninated far cause, based
on serious misconduct, he shall not be entitled to any severance payment. "Serious misconduct"
is defined as follows:
�. A willful breach of this Agreement.
ii. Habitual neglect of duties require�l to be performed under this
Agreement.
iii. Entry of a plea of guilty or nolo contendere to a felony or a crime
involving moral turpitude.
iv. Commission of 1ny act which would constitute a crime, whether
misdemeanor or felony, and which would bring disrespect to the office af City Manager or the
City.
v. Refusal or failure to act in accordance with a specific directive or
order of the City Council. �
vi. Maintaining a confiict of interest or the appearance of 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.
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d. The City shall deliver to Mr. Wohlmuth a written statement which
explains the �•ounds for a termination for Serious Misconduct before his employment is ._
terminated_ The City's action to terminate the e�nployment relationship shall be final and is not
dependent on any��articular showing or degree of proof. Nevertheless, Mr. Wohlmuth may seek
judicial review af Che City's action to withhold severance pay. ln 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. Wohhnuth in a greater p�rcenta�e than appiicable with an
across-the-board reductian for all management employees of the City, or in the event the City
refuses, follawing written notice, to comply with any otl�er provision benefitting Mr. Wohlmuth
contained in this tlgreement, then, in that event, Mr. Wohlmuth may elect to be deemed to be
terminated at tlle date of such occurrence within the meaning and eontext of the severance pay
provision.
5• 'TerminAtion by Mr. Wohlmuth
a. Nothing in this Agreement shall prevent, limit or otherwise interfere with
the right of Mr. Wohlinuth to resi�m at any time from his position wifih tl�e City, subject only to
the provisions set forth in this Agreernent.
b. [n the event Mr. Wohlmuth resigns, he shall not be entitled to any
severance pay. In otller words, this Agi•eement, Mr. Wo171mutli's employment and the Crty's
obligations to compensate Mr. Wohlmuth shall cease on tlte effective date of resignation.
c. In the event Mr. Wohlmuth vpluntarily resigns his position with the City,
he shall give the City tllirty (30} days written notice, in advance, unless the parties agree
otherwise.
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6. vlr. Wohlmath's Time
Mr. Wohl�nuth shall devote his full productive time, ability and attention to his . .
duties as City N(anager. Mr. Wohlinuth shall nat ciirectly or indirectly render any services of a
business, camrnei•cial or professionat nature to any other person or oxganization for
compensation.
Both parties recogmize that Mr. Wohimuth is a member of the InternationaI
City/County Management Association (ICMA} and is subject to tIie ICMA Code of Ethics, with
professional ohligations to the City, including restrictions on personal investments and
employment in the cominunity.
7. Sal�ry
a. The Salary of Mr. Wohlmuth, for his services as City Manager, shall be
Two Hundreci Fifteen Thousand Dollars (S21S,000.00} per year, payable in installments at the
same time as other �nanagement employees of the City or as the same may be modified in
accordance wzth the ai�.nual perfonnance review of paragraph 9 hereinafter set forth. The salary
for Mr. Wohlmuth shall be in addition to and not included within all benefits tfl other
management en�ployees designated as "Group A", inclnding cost of living saiary increase, life,
medical and dental insurance, deferred compensation program, retireznent prograrn, sick leave
and paid jury duty.
b. The City slzall reimburse Mr. Wohlmuth, within its approved budget and
upon approvai of the City, for all actual and necessary expenses incurred in connection with the
performance of his official duties. Mr. Wohlmuth agrees to maintain accurate records of all
expenses for which reimburseinent is claimed.
8. Benefits
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a. Exce�t as provided for otherwise in this A�,neement, Mr. Wohlmuth shall
be entitled to receive all bene#its provided to other City management employees designated as _
"Group A". Tliese benefits include, but are nat limited ta, cost of living salary increase, life,
dental, medical �nd long term disability insurance, deferred compensation program, retirement
program, sic:k leave a�ld ��aid jury duty. In accordance with City Resolution 08-02 Mr.
Wohlmuth's will be eligible for Retiree Health Service Stipend under Tier I, based upon his
original hire date and subject to the provisions of City policy. Mr. Wohlmuth's entitlement to
fuIl benetits shall comnlence immediately upon Mr. Wohlmuth's commencement of duties under
this Agteement.
b. Mi•. Wohlmuth upon commencing duties shall be entitled to two (2) weeks
paid vacation le�.ve and thereafter shall accrue vacation leave in accordance with Section
2.52.705 of the City Code as a member of Group A. Upon termination of this Agreennent,
voluntary or otherwise, Mr. Wohlmuth shall be compensated for all unused accrued vacation
leave.
c. While employed by the City, the City shall pay the insurance premiums
for a term life insurance policy in the �nount of Two Hundred Thousand {$200,000) dollars.
'The City may select the carrier to provide coverage or compensate Mr. Wohlmuth (up ta the cost
of a term life policy}for life insurance pa}nnents made by hiin.
d. Mr. Wohlmuth's duties require that he shall have available a personal
automobile for his use, at all times. Mr. Wohlmuth shall also be responsible for the insurance
(liability, property dainage, and comprehensive), operating expenses, maintenance and repairs of
the automobile. The City shall compensat� Mr. Wohlmuth Five Hundred Dollars ($500.00) per
inonth for such use above and beyond his stat�d salary and be�iefits. Mr. Wohlmuth may use a
City vehicIe, when such vehicle is available for his use in lieu of such automobile alfowance.
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9. Performance Evaluation
The City shall review Mr. Wohlmuth's performance, on a six month, one year and . ._
two years basis, and develop mutuatly ageeable performance goals and criteria and/ar salary
increases for the stibsequent year. Thereafter, in consultation with Mr. Wohlmuth, the City may
change such goals and critei-ia, from time to time. At least once annually thereafter, the City
shall review Mr. Wohlmutl�'s performance to detennine any salary increase deemed appropriate
based on his annual performance review.
10. Conferences,Training and Education
�Ir. Wohlmuth shalI be 7•eimbursed, 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 oFregistration, housing, travel axld subsistence related to these programs, which
in the opinion ol'the City, serve to continue the professional development of 1VIr. Wohlmuth.
I1. Arbitrntion
Any disagreenient between Mr. Wohimuth and the City regarding Mr.
Wohlmuth's employment pursuant to this Ag�•eement shall be sub�ect to final and binding
arbitration, in accordance with the rules of the American Arbitration Association.
12. Attorneys' Fees
1f the se2-vices of an attorney are required by either party to secure the
performance hereot; or othei�cvise upon tlie breach or defauit of either party, or if any juridical
remedy or arbitration is necessary to enforce or interpret any provision of this Agreement, or the
rights and duties of any �erson in relation thereof, ti�e prevailing party shalI be entitled to
reasonable attorneys' fees.
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13. Bonding
The City shall bear the i'ull costs of any fidelity or other bonds required of Mr. . _
Wohlmuth under any law or ordinance.
l4. �Genera[Provisions
a. This Agreement supersedes any and all other agreements, either oral or
written, or impiied by the prior course of conduct between the parties hereto with respect to the
employment oi Mr. Vdohlmuth by the City and contains aIl of the covenants and agreements
between the parties with respect to the employment of Mr. Wohlmuth by the City.
b. Each party agrees and acknowledges that no representations, inducements,
promises, or a��eements, orally or othetwise, have been made by any party, or anyone acting on
behalf of any party, which are nat embodied herein and that any agreement, statement, or
promise not co��tained in this Agreement shall not be valid or hind�ng on either party.
c_ Any modification of this Agreement will be effective only if made in
writing and si.gnerl by both Mr. Wohlmuth and the City.
d. Tf any provision of this Agree�nent is held by a court of competent
jurisdictioit to be invalid, void or unenforceable, the remaining provisions shall nevertheless
continue in fi�ll furce and effect without being impaired or invalidated in any way.
e. This Agreennent shall be governed by and construed in accardance with
the law of the State of California,
F This Agreetnent shall be construed as a whole, accarding to its fair
meaning, and not in favor or against any party. By way of exaniple and not in limitation, this
Agreement sha11 not be construed in favor of the party receiving a benefit nor against the party
responsib�e far any particular language in this Agreement.
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g. Mr. Wohlmuth acknowledges that he has had an opportunity to consult
legal counsei in t•egard to this Agz•eement, 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 fhis Agreement.
h. The following rules shall apply in interpreting the meaning ot' this
Agreement: (a) "includes" and "including" are not limiting, (b) 'br" is not exclusive, (c) each
reference to �ny gender shall include reference to all other genders, as appropriate, and (d) "all"
includes "any" and "any" includes "all.
i. This A�,�-eeinent shall become effective commencing �h�,1,
200`�("effective date"). �
N M. WOHLMUTH
CITY OF PALM DESERT
By: � `
ROBERT SPIE L, M Y �R
ATTEST:
R chelle Klassei�, City Clerk
City of Palm Deseit
APPROVED AS TO FORM:
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Davi . i ' , Attoraey
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