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IN EMPLOYMENT AGREEMENT
'= THIS EMPLOYMENT AGREEMENT ("A reement") is made and entered into this 5h
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day of May, 2009 ("Effective Date") by and between the City of Redlands, a muicipal
corporation and general law city of the State of California(hereinafter referred to as the "City" or n
the "City Council") and N. Enrique Martinez (hereinafter referred to as the "City Manager").
The City and City Manager are sometimes individually referred to herein as a"Party"and,
together, as the "Parties."
1• Employ. The City hereby agrees to employ the City Manager, and the City
Manager agrees and does accept employment, upon the terms and conditions set forth herein.
2. Sam. The City Manager's annual base salary shall be Two Hundred Forty
Thousand Four Hundred Eighty-Seven Dollars ($240,487
same
time as other employees of the City are paid. The City shall ot hat any ti}mel during theallhterm 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.
3. Duties
A. Compliance with Code The City Manager shall perform the duties and exercise
the powers of City Manager as prescribed by Sections 2.04.180, 2.04.190 and 2.04.200 of the
Redlands Municipal Code. In addition to the powers and duties set forth in the Redlands
Municipal Code, the City Manager shall have such powers and duties which are delegated to
him, from time to time, by the City Council. The City Manager shall execute all powers and
duties in accordance with the policies adopted by the City Council, the California Government
Code and other applicable law.
B. Other Business Activities. The City Manager shall focus hisprofessional time,
ability and attention to City business during the term of this Agreement. The City Manager shall
not engage in any other business duties or pursuits whatsoever or directly, or indirectly, render
any services of a business, commercial or professional nature to any other person or
organization, whether for compensation or otherwise, without the prior written consent of the
City Council, except that:
(1) The expenditure of reasonable amounts of time not in conflict with the City's
needs and interests, for educational, charitable, community and professional activities shall not
be deemed a breach of this Agreement and shall not require prior consent; and
(2) This Agreement shall not prohibit the City Manager from making and/or
managing family or business investments or conducting private business affairs if those activities
do not materially interfere with the services required under this Agreement.
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C. Reports Studies and other Documents All data, studies,reports and other
documents prepared by the City Manager while performing his duties during the term of this
Agreement shall be furnished to and become the property of the City, without limitation or
restriction on their use by the City, except as limited by law.
4. City Manager and City Council Responsibilities. The City Manager shall be the
administrative head of the City and the Executive Director of the Redlands Redevelopment
Agency. As such, the City Manager shall have the responsibility for implementing City Council
and Redevelopment Agency Board policy, whereas the City Council and the Redevelopment
Agency Board shall retain the responsibility for formulating and adopting policy.
5. Personnel Matters. The City Manager shall have the additional responsibility of
organizing, reorganizing and arranging the staff of the City-in such a way that in his judgment
best serves the City. The City Manager shall have responsibility for all personnel matters.
including selection, assignment and transfer of employees in accordance with the Personnel
Rules of the City. City Councilmembers, individually and collectively, shall promptly refer all
criticisms, complaints and suggestions called to their attention by City staff to the City Manager
for study and recommendation. The City Manager shall promptly review such matters and report
back to the City Council within a reasonable period of time and in accordance with the City's
Personnel Rules. The City Manager shall consult with City Councilmembers, individually or
collectively, on any personnel matter when requested to do so by one or more Councilmembers.
subject to the requirements of the Ralph M. Brown Act(California Government Code Section
54950 et seq.).
6. Other Duties. The City Manager(or his designee) shall: (1)review all policies
proposed to the City Council and make appropriate recommendations to the City Council; (2)
periodically evaluate employees as provided for by California law and City policy; (3) advise the
City Council of possible sources of funds that might be available to implement present or
contemplated City programs or services; (4)maintain and improve his professional competence
by available means, including subscriptions to, and reading of, appropriate periodicals, and
joining and participating in appropriate community relations programs; and(5) serve as liaison
between the City Council and as its designated representative with respect to all employer-
employee matters, and make recommendations to the City Council concerning those matters.
Notwithstanding that a designee of the City Manager may perform these duties; the City
Manager shall be the person ultimately responsible to the City Council for the proper
implementation of the duties and responsibilities described herein.
7. Performance Evaluation.
A. Periodic Evaluations. The City Council may review and evaluate the
performance of the City Manager periodically. Such reviews and evaluations shall be in
accordance with specific criteria developed jointly by the City Council and the City Manager.
The criteria may be added to, or deleted, as the City Council may from time to time determine in
consultation with The City Manager.
B. Annual Evaluations.
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(1) Notwithstanding the above, at least once annually, the City Council shall
review and evaluate the performance of the City Manager. Such review shall occur
q approximately one (1)month prior to each anniversary date of the Effective Date of this
Agreement, during the term of this Agreement. The first annual evaluation shall takelace no
later than eleven (11) months after the beginning of the term of this Agreement. P
(2) In the beginning of each year, the City Council and the City Manager shall
define such goals and performance objectives that they determine necessary for the proper
operation of the City and for the attainment of the City Council's policy objectives, and shall
establish a relative priority among those various goals and objectives which shall be reduced to
writing. Such goals and objectives shall reasonably be attainable within the time limitations, as
specified, and the annual capital budgets and operating appropriations approved by the City
Council. The first year's goals and objectives shall be set by the City Council, in consultation
with the City Manager, no later than three (3) months after the beginning of the term of this
Agreement.
8. Termination. The City Manager shall serve at the will and pleasure of the City
Council and may be removed from office (terminated) at any time for any reason, or for no
reason, upon a majority vote of the City Council. Nothing in this Agreement shall prevent the
City Council from terminating this Agreement and the services of the City Manager at its sole
discretion. Except as otherwise provided herein, termination of this Agreement shall be in
accordance with Sections 2.04.140, 2.04.150, 2.04.160 and 2.04.170 of the Redlands Municipal
Code.
A. Termination without cause. The City Council may immediately terminate the
City Manager from his employment with the City by providing him with twelve (12)months'
salary and twelve(12) months' continuation of all health benefits (collectively "Severance Pay").
The Severance Pay payment required of the City under this subsection is subject to, and shall be
construed in accordance with, the provisions of California Government Code Sections 53260 and
53261.
B. Termination for Cause. In the event the City Manager is terminated for cause,
the City Manager shall not be entitled to any Severance Pay. "Cause" shall constitute the
following: the City Manager being convicted of a felony or a crime involving moral turpitude;
continued abuse of non-prescriptive drugs or alcohol that materially affects the performance of
the City Manager's duties; and the failure or refusal to carry out, without a reasonable
justification, lawful and legitimate duties assigned to the City Manager after written notice of
said failure to the City Manager approved by a majority of the members of the City Council.
For purposes of this subsection, a plea of nolo contendere shall be considered a conviction. If
requested by the City Manager and agreed to by the City Council in its sole discretion, pursuant
to Section 2.04.150 of the Redlands Municipal Code, the determination of whether to terminate
the City Manager for cause shall be made following a hearing in closed session pursuant to the
Ralph M. Brown Act for the purpose of hearing the City Manager's reasons as to why he should
not be terminated.
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C. Resignation. If the Cit
y Manager desires the City Council with at least forty-five (45) calendar days'owrit resign
n notice.u In the e will provide
City Manager resigns from his employment with the City, the City Manager shall not event
etentithe
to any Severance Pay.
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D. Dis_ abs. If the City Manager is permanently disabled or is otherwise unable
to perform his duties because of sickness, accident, injury, mental incapacity or health for a
period of four(4) successive weeks beyond any accrued sick leave, the City shall have the option
to terminate this Agreement without the payment of Severance Pay to the City Manager.
9• Benefits.
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''ierein by this reference.
The City Manager shall have the option to convert his accrued vacation and accrued sick leave to
cash, any time during the term of this Agreement. The benefits identified in Exhibit"A" and
provided to the City Manager shall be increased or decreased by the City in a manner equivalent
to any increase or decrease to such benefits made by the City for RAMS or any successor
management employees bargaining unit of the City.
B. To avoid placing the City Manager in a position of having an actual or alleged
conflict of interest, the City Council shall not designate the City Manager as its negotiator for
purposes of negotiating a memorandum of understanding with RAMS or any successor
management employees bargaining unit.
C. If the City approves any amendment to any existing memorandum of
understanding with RAME or any successor management employees bargaining unit, or any new
memorandum of understanding with RAMS or any such 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.
10. Vehicle/Phone/Computer Allowance. The City shall pay the City Manager the
sum of Eight Hundred Dollars ($ 800)per month during the term of this Agreement to
compensate the City Manager for his use of his personal vehicle, cell phone and computer in the
performance of his duties under this Agreement.
11. Housing Allowance/Loan
A. Temporary Housing Assistance The City Council has encouraged the City
Manager, and the City Manager has agreed, to consider establishing his residence in the City of
Redlands. If the City Manager establishes temporary rental housing within the City, the Cit
shall reimburse the City Manager for such temporary housing in the amount of Six Hundred
Dollars ($ 604)per month for a period not to exceed twelve (12)months.
B. Permanent Housing Loan The City shall also make available to the City
Manager a low interest loan in the principal amount of Eighty Thousand Dollars ($ 80,000), the
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proceeds of which shall be applied towards a down payment for the purpose of the City
Manager's purchase of a residence in the City. Such loan shall bear interest during the life of the
r loan at a rate equal to that of the Local Agency Investment Fund, compounded annually, and the
loan shall be evidenced by a promissory note and secured by a deed of trust in favor of the City.
The principal and interest accrued for such loan shall become due and payable to the City as a
lump sum six (6)months after the date of termination of
yment with
the City, or upon sale of the City Manager's residence for which the loan proceedCity Manager'sls were applied,
whichever event occurs first.
C. Moving Expenses The City shall also reimburse the City Manager an amount
not to exceed Four Thousand.Dollars ($ 4,000) for the City Manager's actual costs for moving
personal furniture, goods and equipment in connection with his acquisition of any temporary or
permanent housing in the City.
12. Reimbursement for Expenses The City Manager shall be reimbursed on a monthly
basis for all reasonable sums necessarily incurred or paid by him in the performance of his duties
or incurred when traveling on business pertaining to the City, under direction of the City
Council, upon submission of adequate records and other documentary evidence verifying such
expenditures and in compliance with the City's adopted expense reimbursement policies.
13. Professional Development The City recognizes the desirability of the City
Manager's representation of the City in and before local civic and professional organizations,
including, but not limited to, the International City/County Management Association (ICMA),
League of California Cities (LCC), National League of Cities (NLC) and the Government
Finance Officers Association (GFOA). The City agrees to budget and pay for the City
Manager's dues for membership in such organizations and, subject to budget constraints and
approval of the City Council, to pay expenses and allow City time for the City Manager's
attendance at conferences, meetings and selected training opportunities, including, but not
limited to, those associated with ICMA, LCC,NLC and GFOA, and the committees and boards
on which the City Manager serves for professional purposes.
14. Bonds. The City shall bear the full cost of any fidelity or other bonds required of the
City Manager under any law or ordinance.
15. Notices. Any notice to be given hereunder by either Party to the other Party shall be
in writing and may be transmitted by personal delivery or mail, registered or certified, postage
prepaid with return receipt requested. Mailed notices shall be
respective addresses: addressed to the following
CITY: CITY MANAGER:
Mayor and City Council Mr. N. Enrique Martinez
City of Redlands 3526 Ranch Top Road
P.O. Box 3005 Pasadena, CA 91107
Redlands, CA 92373
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Notices delivered personally shall be deemed communicated as of the date of actual
receipt. Mailed Notices shall be deemed communicated as of the date of mailing, plus two (2)
business days. Either Party may change its address for notice by giving notice of such change in
accordance with this section.
16. Assistance.of Counsel. Each Party warrants to the other Party that it has either had
the assistance of legal counsel in negotiation for, or preparation of, this Agreement or could have
had such assistance and voluntarily declined to obtain it.
17. No Presumption of Drafter. The Parties acknowledge and agree that the terms and
condition of this Agreement have been negotiated and discussed between the Parties, and this
Agreement reflects their mutual agreement regarding the subject matter hereof. Because of the
nature of such negotiations and discussions, it would be inappropriate to deem any Party to be
the drafter of this Agreement and, therefore, no presumption for or against validity or as to any
interpretation hereof, based upon the identity of the drafter shall be applicable in interpreting or
enforcing this Agreement.
18. General Provisions.
A. Entire Agreement. This Agreement supersedes any and all other agreements,
past practices and precedents, either oral or written, between the Parties hereto with respect to
the employment of the City Manager by the City and contains all of the covenants and
agreements between the Parties with respect to the employment of the City Manager by the City.
B. Representations. Each Party to this Agreement agrees that no representations,
inducements, promises or agreements, verbally or otherwise, have been made by any Party, or
anyone acting on behalf of any Party, which are not embodied herein and that any agreement,
statement, or promise not contained in this Agreement shall not be valid or binding on either
Party.
C. Modifications. Any modifications of this Agreement will be effective only if
made in writing and signed by both the City Manager and the City.
D. Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless
continue in full force and effect without being impaired or invalidated in any way.
E. Prohibition Against Assignment. Neither this Agreement, nor any right,
privilege or obligation of the City Manager hereunder shall be assigned or transferred by him
without the prior written consent of the City Council. Any attempt at assignment or transfer in
violation of this subsection shall, at the option of the City Council, be null and void and may be
considered a mutual breach of this Agreement and "cause" for termination of this Agreement.
F. Waiver. The failure of any Party to insist on strict compliance with any of the
terms, covenants or conditions of this Agreement by the other Party shall not be deemed a waiver
of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power
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at any one time or times be deemed a waiver or relinquishment of that right or power for all or
any other time.
G. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the 5th day of
May, 2009.
City of Redlands ATTEST:
)onHarrison, ayor Lo e Poyzer, U7 Merl{
j
rique artinez, City Mangy er
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EXHIBIT"A"
BENEFITS FOR CITY MANAGER POSITION
• MEDICAL INSURANCE — City pays the entire monthly premium for City Manager and his eligible
dependents. Choice of 4 plans through PERS Health
• DENTAL INSURANCE — City pays the entire monthly premium for City Manager and his eligible
dependents;2 plans to choose from through the Principal Group
• INSURANCE ADJUSTMENT-$150 per year to offset medical insurance co-payments and/or deductibles
• VISION REF4iBURSEMENT—up to$225 per year based upon receipts
• LIFE INSUPUNCE-$25,000
• ACCIDENTAL DEATH&DISMEMBERMENT-$25,000
• DEFERRED COMPENSATION— 401 A Plan or 457 Plan —Annual City paid contribution in the amount of
$1,125 +2%of salary
• PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) - Employee contribution amount paid by the City.
Formula to equal City of Redlands Miscellaneous employees.
• VACATION LEAVE— 112 hours accrued annually
• EXECUTIVE LEAVE— i 10 hours accrued annually to be used by December 31 st
• SICK LEAVE—96 hours annually
• HOLIDAYS— 12 City designated holidays+2 floating holidays—Floating holidays may be cashed out each
year if not used.
• FLEXIBLE SAVINGS PLAN
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