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HomeMy WebLinkAboutContracts & Agreements_145-2017 FIFTH AMENDMENT TO EMPLOYMENT AGREEMENT This Fifth Amendment to Employment Agreement is entered into this 5th day of July,2017 ("Effective Date"), by and between the City of Redlands, a municipal corporation (hereinaftei the "City") and N Enrique Martinez (hereinaftei the "City Managei") RECITALS WHEREAS, the City and the City Managei have entered into an Employment Agreement dated May 5, 2009, wherein the City expressed its desire to employ the services of the City Managei as provided for in Government Code Section 36506, and WHEREAS, the City and the City Manager, on May 4, 2010, May 19, 2015, March 1, 2016, and April 5, 2016, amended certain provisions of the Employment Agreement, and WHEREAS, the City Council recently completed its labor negotiations with the Redlands Association of Department Directors ("RADD") and the Redlands Association of Management Employees ("RAME"), and it is the desire of the City and the City Manager to amend the City Manager's Employment Agreement relating to severance pay, YMCA membership and executive leave benefits to maintain parity with the benefits relating to the same granted by the City to RADD and RAMS, NOW, THEREFORE, in consideration of the mutual promises contained herein, the City of Redlands and N Enrique Martinez agree as follows Section 1 The paragraph entitled "Annual Leave" in Exhibit "A" of the Employment Agreement is hereby amended to read as follows "Annual Leave — 402 hours annually, and increased equivalently to any subsequent increase the City might provide to the members of RADD " Section 2 Subsection A of Section 8 of the Employment Agreement,entitled"Termination without cause," is hereby amended to read as follows "A In the event the City Council desires to terminate the City Manager for any reason other than Cause (as defined in Subsection B,below),during which time the City Manager is willing and able to perform his duties under this Employment Agreement, the City Council shall provide the City Managei with written notice fifteen (15) months prior to the date this Employment Agreement and the employment of the City Managei are to be terminated In the alternative, City may immediately release the City Manager from his employment with the City by providing him with written notice of its intent to terminate this Employment Agreement and, except as otherwise provided in Subsection B, below, by also providing the City Managei with fifteen (15) months salary and continuation of health benefits(collectively"Severance Pay")in lieu of providing the City Manager with the above described fifteen (15)months prior written notice which fifteen(15) months would represent the then-unexpired term of this Employment Agreement in accordance with the provisions of California Government Code sections 53260 1 I 1ca\djm\Agreements\Employment Agreements\CM Employment 5 7 5 17 doex and 53261 Termination by the City shall be effective upon delivery of written notice of termination of employment and payment of the Severance Pay by the City to the City Manager Section 3 A new paragraph related to YMCA membership is hereby added to Exhibit"A" of the Employment Agreement to read as follows "YMCA Membership--- In an effort to support a healthy life style for City employees, the City will provide to Employee a City-paid membership (initial fee and monthly fees) for the YMCA for Employee and Employee's family" Section 4 This Fifth Amendment to Employment Agreement shall affect only the sections referred to herein and the amendments to Exhibit "A" to the Employment Agreement (a copy of which is attached hereto), and all other terms and conditions of the Employment Agreement between City and the City Manager, as amended, shall remain in full force and effect In witness hereof the Parties have executed this Fifth Amendment to Employment Agreement on the 5th day of July, 2017 CITY OF REDLANDS CITY MANAGER lam( . Paul W Foster, ayor `N Enrique artme ATTEST JeZne Donaldson, City Clerk 2 I 1ca1djmlAgreements\Fmp1oyment Agreements\CM Employment 5 7 5 17.docx EXHIBIT"A" • HEALTH INSURANCE-The City Managei will be provided a one-time payment fol his past "Health Allotment" insurance benefit in the amount of thirty thousand dollars ($30,000) The City shall pay such amount in the first full payroll period following May 19, 2015 In consideration foi the City Manager's termination of his health allotment as of May 20, 2015 • LIFE INSURANCE-$25,000, with premium paid by the City on behalf of the City Managet • MEDICAL INSURANCE—The City pays the entire monthly premium fat the City Managei and his eligible dependents foi the City Manager's chosen Ca1PERS health plan • Insurance Adjustment — The City shall pay the City Manager the amount of$150 each July as an offset to the City Manager's payment of co-payments and deductibles for medical insurance • ACCIDENTAL DEATH & DISMEMBERMENT - $25,000, with premium paid by the City on behalf of the City Manager • Vision Reimbursement - $225 annually foi frames, lenses or contact lenses for the City Managei or eligible dependents, based upon submission of receipts • DEFERRED COMPENSATION —401A Plan and 457 Plan— Annual contribution paid by the City on behalf of the City Manager in the amount of$1,125 + 2% of salary to either plan as designated by the City Managei • PUBLIC EMPLOYEES RETIREMENT SYSTEM-Formula to equal City of Redlands "classic" miscellaneous employees (2% @ 55) for the CAPERS retirement system Commencing with the first full payroll period following May 19, 2015, the City Manager shall pay seven percent (7%) of the City Manager's salary as the employee member contribution amount As an offset to the City Manager's payment of the foregoing employee member contribution amount, the City Manager's annual base salary amount shall be increased by seven percent (7%) commencing with the first full payroll period following May 19,2015 • ANNUAL LEAVE — 402 hours annually, and increased equivalently to any subsequent increase the City might provide to the members of RADD • HOLIDAYS — 12 City designated holidays • FLEXIBLE SAVINGS PLAN • YMCA MEMBERSHIP--- In an effort to support a healthy life style for City employees, the City will provide to Employee a City-pard membership (initial fee and monthly fees) for the YMCA for Employee and Employee's family 3 I 1ca\dam\Agreements\Employment Agreements\CM Employment 5 7 5 17 docx