HomeMy WebLinkAboutContracts & Agreements_87-2015_CCv0001.pdf SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This Second 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 the "City") and N. Enrique Martinez (hereinafter the "City Manager").
RECITALS
WHEREAS, the City and the City Manager have entered into an Employment Agreement
dated May 5, 2009, wherein the City expressed its desire to employ the services of the City
Manager as provided for in Government Code Section 36506; and
WHEREAS, the City and the City Manager on May 4, 2010, amended certain provisions
of the Employment Agreement; and
WHEREAS, the City Manager's fringe benefits have customarily been similar to those
fringe benefits provided by the City Council to the City's Department Directors; 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 the City and the City Manager to amend the City Manager's Employment Agreement
relating to compensation and benefits; and
WHEREAS, this amendment deletes from the City Manager's Employment Agreement
outdated references to the Redlands Association of Management Employees ("RAME") and
replaces such references, where applicable, to the Redlands Association of Department Directors
("RADD"); 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 in the City Manager's Employment Agreement 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 N.Enrique Martinez agree as follows:
Section-1. Section 2 of the Employment Agreement, entitled "Salary," is hereby
amended by the deletion of the following outdated references to RAME:
"The City shall not, at any time during the term of this Agreement, reduce the City
Manager's annual base salary,compensation or other financial benefits unless as part of a Redlands
Association of Management Employees (`RAME') or any successor management employees
bargaining unit salary, compensation or benefits reduction, and then in no greater percentage than
for such reduction for RAME or such successor management employees bargaining unit."
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Section 2. Section 2 of the Employment Agreement, entitled "Salary," is hereby
amended by the addition of Subsections A and B which shall read as follows:
A. Commencing with the first full payroll period following May 19, 2015, the City
Manager's annual base salary shall be increased by the amount of three percent (3%).
B. Commencing with the first full payroll period following May 19, 2016, the City
Manager's then-existing annual base salary shall be increased by the additional amount of
three percent (3%)."
Section 3. 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 Manager with written notice
twelve (12) months prior to the date this Employment Agreement and the
employment of the City Manager 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 Manager with twelve (12) months salary and continuation of
health benefits(collectively"Severance Pay")in lieu of providing the City Manager
with the above described twelve (12) months prior written notice which twelve
(12) 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 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 4. Subsection 9 A of the Employment Agreement is hereby amended to
remove outdated references to vacation and sick leave and substitute in their place the term
"Annual Leave" as defined in the RADD memorandum of understanding, and shall read
as follows:
A. The City shall pay to or on behalf of the City Manager the benefits which
are identified in Exhibit "A, which is attached hereto and incorporated
herein by this reference. The City Manager shall have the option to convert
his accrued Annual Leave to cash, any time during the term of this
Agreement.
B. Upon separation, service or medical retirement under the CalPERS
retirement plan, or in the event of death of the City Manager prior to
retirement, if the City Manager has less than fifteen (15) years of service
with the City, the City Manager, or his eligible dependents, may elect one
of the following options for payment of unused Annual Leave:
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(1). Convert all remaining Annual Leave accrued at the time of separation
or retirement to cash value at the final rate of pay and apply said cash value
to applicable premiums payable under the City's medical insurance
program for the City manager and the City Manager's eligible dependents
until the cash value is exhausted. In the event of the death of the City
Manager prior to exhaustion of the cash value of said Annual Leave, the
remaining cash value may be applied towards the premiums and of covered
dependents until exhausted, subject to the conditions and limitations of the
applicable insurance policy.
(2). At the time of service retirement, separation from City employment,
disability retirement, or in the event of the death of the City Manager, one
hundred percent(100%)of accrued Annual Leave may be converted to cash
or may be deposited into the City Manager's 401 (a) or 457 (b) account at
the prevailing hourly rate.
Section 5. Subsection 9 B of the Employment Agreement relating to an outdated
reference to RAME is hereby deleted in its entirety.
Section 6. Subsection 9 C of the Employment Agreement is hereby re-lettered as
Subsection 9 B and amended to remove an outdated reference to RAME and substitute in
its place RADD, and shall read as follows:
`B. If the City approves any amendment to any existing memorandum of
understanding with the Redlands Association of Department Directors ("RADD"),
or any successor Department Director's bargaining unit, or any new memorandum
of understanding with RADD or any successor unit, which provides for an annual
cost of living increase in salary,the City shall pay to the City Manager an equivalent
cost of living increase in salary provided such increase does not exceed [CPI] (or
such other index as set forth in Government Code section 3511.2 or its successor)
for any given year."
Section 7. Subsection D of Section 9 of the Employment Agreement is hereby added
to read as follows:
"D. Provided the City Manager has completed fifteen(15)years of service with
City,upon, and from and after, the City Manager's separation of employment from
City, the City Manager 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 the City Manager and the City
Manager's eligible dependents."
Section 8. Subsection 18 H, entitled "Reimbursement," is hereby added to the
Employment Agreement to read as follows:
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"H. Reimbursement. Pursuant to Government Code section 53243 et seq., if the City
Manager 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 the City Manager is
provided with administrative leave pay pending an investigation, the City Manager shall
be required to fully reimburse such amount paid, (2) regardless of the term of this
Employment Agreement, if the City Manager receives any cash settlement upon
termination, the City Manager shall reimburse such amount paid, and (3) if the City, in its
discretion, pays for the criminal legal defense of the City Manager, the City Manager shall
be required to fully reimburse such amounts paid. For purposes of this Subsection, `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 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 9. The existing Exhibit "A" of the Employment Agreement is hereby
deleted and replaced with a new Exhibit "A," a copy of which is attached to this
Second Amendment to Employment Agreement.
Section 10. This Second Amendment to Employment Agreement shall affect only the
sections referred to herein, 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 Second Amendment to Employment
Agreement on the 19th day of May, 2015.
CITY OF REDLANDS CITY MANAGER
Paul W. Foster, Mayor AN. riqu ar nez
ATTEST:
Sam Ir , Ci Clerk
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EXHIBIT"A"
• HEALTH INSURANCE-The City Manager will be provided a one-time payment for 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 for 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 Manager.
• MEDICAL INSURANCE—The City pays the entire monthly premium for the City Manager
and his eligible dependents for the City Manager's chosen CalPERS 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 for frames, lenses or contact lenses for the City
Manager 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 Manager.
• PUBLIC EMPLOYEES RETIREMENT SYSTEM-Formula to equal City of Redlands
"classic" miscellaneous employees (2% @ 55) for the Ca1PERS 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— 392 hours annually, as presently provided to members of RADD, and
increased equivalent to any subsequent increase the City might provide to the members of
RADD.
• HOLIDAYS — 12 City designated holidays.
• FLEXIBLE SAVINGS PLAN
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