HomeMy WebLinkAboutContracts & Agreements_267-2017 FOURTEENTH AMENDMENT TO EMPLOYMENT AGREEMENT
This Fourteenth Amendment to Employment Agreement is entered into this 5th day of
Decembei,2017 ("Effective Date"),by and between the City of Redlands, a municipal corporation
(hereinafter "City") and Daniel J McHugh (hereinafter "Employee")
RECITALS
WHEREAS, City and Employee have entered into an Employment Agreement dated April
19, 1994, wherein City expressed its desire to employ the services of Employee as City Attorney of
the City of Redlands as provided for by California Government Code Section 36505, and
WHEREAS, City and Employee on March 7, 1995, April 28, 1997, August 5, 1997,
Decembei 7, 1999,Decembei 19,2000,December 21,2004,July 5,2005, May 4,2010,October 5,
2010,May 19,2015,March 1,2016,Apiil 5,2016,and July 5,2017,amended certain provisions of
the Employment Agreement, and
WHEREAS, now that the City Council has recently completed labol negotiations with
respect to the various employee bargaining groups of City, as has been their past practice, it is the
desire of City and Employee to amend Employee's Employment Agreement relating to compensation
and benefits and provide Employee with the same"across-the board"salary increase provided to the
employees of the City's "miscellaneous employees"bargaining units and the "no-cost to the City"
vision insurance benefit provided to the Redlands Association of Department Directors, and
WHEREAS, as recognized by the California Supreme Court that established retiree health
benefits can be vested benefits, it is the desire of City and Employee to reconfirm City's and
Employee's point determination made within Employee's Eighth Amendment to Employment
Agreement dated May 4, 2010, that Employee's retirement health coverage benefits relating to
medical and dental coverage shall be, and are, vested as of such date,
NOW,THEREFORE,in consideration of the mutual promises contained herein,the City of
Redlands and Daniel J McHugh agree as follows
AGREEMENT
Section l Section 2 of the Employment Agreement,entitled"Salary,"is hereby amended by
the addition of subsections E, F, and G, which shall read as follows
E Commencing with the first full payroll period following June 30, 2018, Employee's annual
base salary shall be increased by the amount of three percent (3%)
F Commencing with the first full payroll period following June 30, 2019, Employee's then-
existing annual base salary shall be increased by the amount of three percent (3%)
G Commencing with the fust full payroll period following June 30, 2020, Employee's then-
existing annual base salary shall be increased by the amount of three percent (3%)
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Section 2 Subsection A of section 3 of the Employment Agreement, entitled 'Fringe
Benefits," is hereby amended by the addition of subsection (7) which shall read as follows
"(7)During the term of this Employment Agreement,City shall contribute the entire monthly
premium for Employee and Employee's eligible dependents for a vision insurance plan with
Medical Eye Services,or an equivalent insurance plan approved by City with at a minimum
similar benefits to those of Medical Eye Services as such benefits exist on the date of this
Fourteenth Amendment to Employment Agreement "
Section 3 City and Employee hereby expressly reconfirm that Employee's retirement health
benefits relating to medical and dental coverage as set forth in Employee's Employment Agreement
were vested as of May 4,2010, and shall remain a vested benefit for Employee because such retiree
medical and dental benefits are included within City's policies pertaining to employment,evidence
exists that such benefits were an inducement for employee to seek and obtain employment with City
(e g , City was aware at the time of Employee's hiring that Employee's spouse had and continues to
have through this date a significant pre-exiting medical condition), that such benefits are a form of
compensation and were important to employee in continuing and advancing to his long-term
employment with City,and that such benefits remain an inducement for Employee to continue to be
employed by City
Section 4 This Fourteenth Amendment to the Employment Agreement shall affect only
the Sections and Subsections of the Employment Agreement referred to herein, and all other terms
and conditions of the Employment Agreement between City and Employee, as amended, shall
remain in full force and effect
In witness hereof the Parties have executed this Agreement on the 5th day of December,
2017
CITY OF REDLANDS EMPLOYEE
(—P-all W Foster, Mayor Daniel TJMc h
ATTEST
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ne Donaldson, City Clerk
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Amendment 10 26 17 December 5(002)(002)(2)doc