HomeMy WebLinkAboutContracts & Agreements_88-2015_CCv0001.pdf TENTH AMENDMENT TO EMPLOYMENT AGREEMENT
This Tenth Amendment to Employment Agreement is entered into this 19th day of May,
2015("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,
December 7, 1999, December 19, 2000, December 21, 2004, July 5, 2005, May 4, 2010, and
October 5, 2010, amended certain provisions of the Employment Agreement; and
WHEREAS, Employee's fringe benefits have customarily been similar to those fringe
benefits provided by the City Council to the City's Department Directors and those management
employees in the employee organization known as the "Redlands Association of Management
Employees (`RAMS');" and
WHEREAS, now that the City Council has recently completed labor 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
WHEREAS,this amendment also addresses recent enactments in the California Government
Code at Sections 53243,53243.1, and 53243.2 which require the inclusion of additional contractual
provisions related to occasions where an official might be convicted of abuse of office or position;
NOW,THEREFORE,in consideration of the mutual promises contained herein,the City of
Redlands and Daniel J. McHugh agree as follows:
Section 1. Section 2 of the Employment Agreement,entitled"Salary,"is hereby amended
by the additions of Subsections A and B to read as follows:
A. Commencing with the first full payroll period following May 19, 2015,
Employee's existing annual base salary shall be increased by the amount of
three percent (3%).
B. Commencing with the first full pay period following May 19, 2016,
Employee's then-existing annual base salary shall be increased by the
additional 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 to read as follows:
"A. City shall pay to, or on behalf of, Employee for fringe benefits those same fringe
benefits provided to the members of the Redlands Association of Management Employees
(RAMS) hired before March 11, 2010 as described in the RAME MOU approved for the
period July 1, 2015—June 30, 2017 except as follows:
(1) With respect to executive leave,Employee shall receive annually receive 110 hours
of executive leave; provided, however, Employee shall have the right to cash out any
such hours not used by Employee at Employee's then prevailing hourly rate.
(2) With respect to retirement benefits, Employee shall receive the same 2% @ 55
CalPERS benefit formula provided to non-sworn"classic"RAME employees of the City,
and commencing with the first full payroll period following May 19, 2015, Employee
shall be obligated to pay seven percent (7%) of Employee's salary as the employee
member contribution amount. As an offset to Employee's payment of the foregoing
employee member contribution amount, Employee's annual base salary shall be
increased by seven percent(7%)commencing with the first full payroll period following
May 19, 2015.
(3) With respect to City's 457 (b) deferred compensation plan, City shall contribute
annually on behalf of Employee,before each anniversary date of the effective date of this
Employment Agreement,the maximum amount that Employee is entitled to contribute to
such plan, subject to the provisions of Government Code section 3511.2.
(4) With respect to City's 401 (a)deferred compensation plan,Employee shall have the
right to participate in such plan by making voluntary contributions to such plan,and may
cash out any or all of Employee's accumulated vacation leave,sick leave, and executive
leave and contribute the same to such plan.
(5) With respect to medical and dental insurance, City shall pay the entire monthly
premium for Employee and his eligible dependents, for Employee's chosen CalPERS
health plan and City's dental plan."
Section 3. Subsection A of Section 6 of the Employment Agreement, entitled
"Termination,"is hereby amended to read as follows:
"A. This Employment Agreement maybe terminated by either City or Employee
for any reason or for no reason in recognition that Employee is an at-will employee
of City. In the event Employee is terminated by City for any reason other than
willful misconduct or conviction of a felony during which time Employee is willing
and able to perform his duties under this Employment Agreement,the City Council
shall provide Employee written notice nine (9) months prior to the date this
Employment Agreement and the employment of Employee are to be terminated.In
the alternative,City may immediately release Employee from his employment with
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City by providing him with written notice of City's intent to terminate this
Employment Agreement and,except as otherwise provided in subsection B,below,
by also providing Employee with nine(9)months salary and continuation of health
benefits (collectively "Severance Pay") in lieu of providing Employee with the
above described nine(9) months prior written notice,which nine(9)months would
represent the then-unexpired term of this Employment Agreement in accordance
with the provisions of California Government Code sections 53260 and 53261.
Termination by City shall be effective upon delivery of written notice of termination
of employment and payment of the Severance Pay by City to Employee.
Section 4. Subsection C of Section 6 of the Employment Agreement,entitled
"Termination," is hereby amended to read as follows:
"C. Upon, and from and after,Employee's separation of employment from City,
Employee shall receive `Lifetime Medical and Dental Insurance' coverage as the
same exists on May 19, 2015. City shall pay all premiums required for such
`Lifetime Medical Insurance' coverage for Employee and Employee's eligible
dependents."
Section 5. Section 11, entitled"Reimbursement,"is hereby added to the Employment
Agreement to read as follows:
"11. Reimbursement. Pursuant to Government Code section 53243 et seq., if Employee is
convicted of a crime involving an abuse of his office or position,as defined below,all of the
following shall apply upon final conviction: (1)if Employee is provided with administrative
leave pay pending an investigation, Employee shall be required to fully reimburse such
amount paid,(2)regardless of the term of this Employment Agreement,if Employee receives
any cash settlement upon termination,Employee shall reimburse such amount paid,and(3)if
City, in its discretion, pays for the criminal legal defense of Employee, Employee shall be
required to fully reimburse such amount paid.For purposes of this Section, `abuse of office
or position' means either: (1) an abuse of public authority, including waste, fraud, and
violation of the law under color of authority as those crimes are specifically defined under
specific provision of California statute,or(2)a crime against public justice,including but not
limited to,crimes described in Titles 5,6 and 7 of Part 1 of the Penal Code,or as specifically
defined under separate provision of California statute."
Section 6. This Tenth Amendment to the Employment Agreement shall affect only the
sections 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 19th day of May, 2015.
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CITY OF REDLANDS EMPLOYEE
Paul W. Foster, Mayor Danie J. Mcfhugh
ATTEST:
Sam Irw , C' y Clerk
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