HomeMy WebLinkAboutContracts & Agreements_227-2021CITY OF REDLANDS
CITY MANAGER EMPLOYMENT AGREEMENT
This Employment Agreement (this "Agreement") is made and entered into the 7th day of
December, 2021 ("Effective Date") by and between the City of Redlands, a general law city and
municipal corporation ("City") and Charles M. Duggan Jr , an individual ("Employee") For
purposes of this Agreement, City and Employee are sometimes individually referred to herein as
a "Party" and, together, as the "Parties "
RECITALS
WHEREAS, Government Code section 34852 provides that an ordinance establishing a
city manager form of government shall define the powers and duties of the city manager; and
WHEREAS, the duties of the city manager of the City are set forth in full in Chapter 2.04
of the Redlands Municipal Code ("RMC"), and
WHEREAS, RMC section 2 04 010 states "The City Manager shall be appointed by the
City Council solely on the basis of his executive and administrative qualifications and ability, and
shall hold office at and during the pleasure of the City Council," and
WHEREAS, the City Council of the City of Redlands ("City Council") has determined that
Employee has the required executive and administrative qualifications and ability, along with the
level of education, experience, skills and expertise to serve as the City Manager of the City;
NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties
agree as follows
AGREEMENT
1 Employment and Duties
1 1 Duties. The City Council hereby appoints Employee as the City Manager for the
City to perform the functions and duties of that position, as described in the California Government
Code and Chapter 2 04 of the Redlands Municipal Code (as such Chapter may be amended from
time to time in the sole discretion of the City Council without any amendment of this Agreement
or Employee's acquiescence), and such other legally permissible and proper duties and functions
as the City Council shall, from time to time, direct or assign to Employee Employee agrees to
perform all such functions and duties to the best of his ability and in an efficient, competent, and
ethical manner
1.2 Term. The City hereby employs Employee as City Manager on an at -will basis
continuing through and including January 12, 2023
1 3 Work Schedule. It is recognized that Employee is expected to engage m the hours
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of work that are necessary to fulfill the obligations of the position of City Manager, must be
available at all times and devote significant time outside of "normal" City office hours to the
business of the City Employee acknowledges that proper performance of the duties of the City
Manager will require Employee to generally observe normal business hours (currently 7 30 a.m.
to 5 30 p.m., Monday through Friday in accordance with City's "9/80" work schedule), as set by
the City and as may be duly revised from time -to -time by the City, and will also often require the
performance of necessary services outside of normal business hours Employee is pre -authorized
to work remotely, for periods of time not exceeding two -weeks, four times each year Employee's
compensation (whether salary or benefits) is not based on hours worked. Furthermore, the City
Manager position remains an "exempt" classification under the overtime provisions of the federal
Fair Labor Standards Act ("FLSA") and Employee shall not be entitled to any compensation for
overtime, nor subject to such overtime provisions of the FLSA.
1 4 Other Activities. Employee shall focus his professional time, ability, and attention
to the City's business during the term of this Agreement. Employee shall not engage, without the
express prior written consent of the City Council, 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, that is or may
be competitive with the City, that might cause a conflict -of -interest with the City, or that otherwise
might interfere with the business or operation of the City or the satisfactory performance of the
functions and duties of the City Manager
1 5 Employment Status. Employee shall serve at the will and pleasure of the City
Council and understands he shall continue to be an "at -will" employee and shall be subject to
summary dismissal without any right of notice or hearing, including any so-called due process pre -
disciplinary "Skelly" hearing. The City may terminate Employee at any time in accordance with
Section 3.2 below
1 6 Exemption from Personnel System. Redlands Municipal Code section 2 56 030
expressly exempts the "City Manager" position from the City's Personnel System established in
Redlands Municipal Code Chapter 2 56 Employee understands, acknowledges and agrees that
Employee is exempt from the City's Personnel System.
1 7 City Documents. All data, studies, reports and other documents prepared by
Employee while performing his duties during the term of this Agreement shall be furnished to and
become the property of the City, without restriction or limitation on their use All ideas,
memoranda, specifications, plans, procedures, drawings, descriptions, computer program data,
input record data, written information, and other materials either created by or provided to
Employee in connection with the performance of this Agreement shall be held confidential by
Employee to the extent permitted by applicable law, except as may be required by any
governmental agency or court of competent jurisdiction. Such materials shall not be used by
Employee, without the prior written consent of the City Council, for any purposes other than the
performance of Employee's duties Additionally, no such materials maybe disclosed to any person
or entity not connected with the performance of services under this Agreement, except as required
by (a) law, (b) any governmental agency, (c) subpoena, or (d) an order issued by a court of
competent jurisdiction.
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1 8 ICMA Code of Ethics. The Parties mutually desire for Employee to be subject to
and comply with the International City/County Management Association ("ICMA") Code of
Ethics, and Employee commits to comply with the ICMA Code of Ethics The City and the City
Council agree that the City Council will not require that Employee violate the ICMA Code of
Ethics as part of his employment with the City
2. Compensation and Reimbursement
2.1 Current Base Salary. Employee shall receive Two Hundred Seventy Thousand
Dollars ($270,000) as his annual base salary ("Salary") for the City Manager position, provided,
however, effective the first full pay period in January 2022, and subject to the provisions of Section
6 7, such Salary shall be reduced in amount to Two Hundred Sixty -Four Thousand Two Hundred
Seventy -Two Dollars ($264,272) Employee's Salary shall be paid on a pro -rated basis bi-weekly
at the same time as other employees of the City are paid, and shall be subject to normal and proper
withholdings as determined by state and federal law, and as determined appropriate by the City
Council, and shall be subject to payroll taxes, workers' compensation, and other payroll -related
liability costs
2.2 Salary Adjustment. Following the annual performance evaluation set forth in
Section 5.2 hereof, the City Council may increase Employee's base salary and benefits package
based on the results of those annual reviews. Any adjustments in the base salary and/or benefits
following the annual performance evaluation under Section 5.2 are not automatic and instead shall
be at the sole discretion of the City Council.
2.3 Business Expense Reimbursements. The City shall reimburse Employee for
reasonable and necessary travel, subsistence, and other City related business expenses incurred by
Employee in the performance of his duties All reimbursements shall be subject to and in
accordance with California law, the City's adopted policies, and IRS rules for reporting
compensation through payroll or reimbursement through accounts payable
3 Termination
3 1 Teiinination by Employee. Employee may tetiuinate this Agreement at any time,
provided Employee provides the City with at least thirty (30) days prior written notice In the event
Employee terminates this Agreement, Employee expressly agrees that Employee shall not be
entitled to any severance pay
3.2 Termination by the City. The City may terminate this Agreement at any time, with
or without cause, by providing written notice to Employee of the same. The City's right to
terminate Employee pursuant to this Section 3 2 shall not be subject to, or in any way limited by,
the City's Personnel Rules and Regulations, or any subsequent related resolutions, or past City
practices related to the employment, discipline or termination of the City's employees. Employee
expressly waives any rights provided for the City Manager under the City's Personnel Rules and
Regulations, Municipal Code, or under other local, state or federal law to any other foiiu of pre -
or post -termination hearing, appeal, or other administrative process pertaining to termination.
Nothing herein shall be construed to create a property interest, where one does not exist by rule of
law, in the position of City Manager
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(a) Termination by the City for Cause The City may terminate this Agreement
at any time by providing Employee with prior written notice of the termination for cause and the
facts and grounds constituting such cause The term "cause" shall be defined to include any
misconduct materially related to performance of official duties, including, but not be limited to,
any of the following. (1) willful or persistent material breach of duties or inattention to duties, (2)
resume fraud or other acts of material dishonesty, (3) unauthorized or excessive absence or leave,
(4) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to Justice,
honesty, or morality) or abuse of position as City Manager, (5) conviction of a felony under
California law, (6) violation by Employee of the City's anti -harassment policies, as may be
amended, or a finding a legally prohibited personal act of harassment against a City official or
employee or legally prohibited personal act of discrimination against a City official or employee
has occurred and Employee was aware or should have been aware of that act, (7) violation of state
law or the RMC or any City ordinance, rule or regulation, (8) use or possession of illegal drugs in
violation of state law and/or City policy, (9) continued abuse of non-prescription drugs or alcohol
that materially affects the performance of required duties as City Manager, (10) engaging in
conduct unbecoming for a public official or which brings disrepute to the City, (11) any illegal or
unethical act involving personal gain, including conviction of theft or attempted theft, (12)
Employee's significant mismanagement of City finances, (13) any pattern of repeated, willful and
intentional insubordination of the City Council, (14) gross misfeasance or gross malfeasance, (15)
failure to comply with the ICMA Code of Ethics, as may be amended, or (16) any similar cause.
For any of the foregoing, the City may, in its discretion, place Employee on paid or unpaid
administrative leave until resolution. If the City terminates, for cause, this Agreement and the
services of Employee hereunder, then the City shall have no obligation to pay Employee any
severance pursuant to section 4, below
(b) Termination by the City without Cause The City may terminate Employee
without cause, but rather based upon any management reason such as implementing the City's
goals or policies, including, but not limited to (i) change of administration, or (ii) incompatibility
of management styles, or for any other reason, or no publicly stated reason. In the event Employee
is terminated without cause, Employee expressly agrees Employee shall not be entitled to any
severance pay as the result of the termination of this Agreement except as provided in Section 4 1
below
4 Severance
4 1 Severance Pay. In the event Employee is terminated without cause and Employee
does not challenge such termination, including, but not limited to, by means of appeal or civil
or administrative claim or "liberty -interest" hearing, then the City shall pay to Employee
severance in an amount equal to Employee's monthly base salary (annual Salary divided by
twelve (12)) then in effect multiplied by six (6) Notwithstanding any other provision of this
Section 4 1, if such proposed severance payment exceeds the amount authorized to be paid under
Government Code Section 53260, then the amount paid to Employee shall be reduced in the
amount necessary to comply with such statute (Government Code Section 53260 provides all
contracts of employment with a city must include a provision limiting the maximum cash
settlement for the termination of the contract to the monthly salary (excluding benefits)
multiplied by the number of months left on the unexpired term, but not more than eighteen (18)
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months if the unexpired term exceeds eighteen (18) months) The severance payment shall not
include the monetary value of benefits during said time, but salary only
4.2 No Severance Pay if Termination for Cause or Initiated by Employee. As
provided in Subdivision 3.2(a), if Employee is terminated for cause, then the City shall have no
obligation to pay the severance provided for in Section 4 1 above As provided in Section 3 1,
if Employee initiates termination of this Agreement, then the City shall have no obligation to
pay the severance provided for in Section 4 1 above
4 3 Sole Rights. The severance rights provided in this Section 4 shall constitute the
sole and only entitlement of Employee with respect to severance pay in the event of the
termination, other than for cause or by expiration of this Agreement. Employee expressly waives
any and all other rights with respect to severance pay except as provided herein.
5 Performance Evaluations
5 1 Purpose. The performance review and evaluation process set forth herein is
intended to provide review and feedback to Employee so as to facilitate the effective management
of the City Nothing herein shall be deemed to alter or change the employment status of Employee
as City Manager (as set forth in Section 1 6 above), nor shall this Section 5 be construed as
requiring "cause" to terminate this Agreement, or the services of Employee hereunder
5.2 Annual Evaluation. The City Council shall endeavor to conduct a formal or
informal review and evaluate the performance of Employee on an annual basis during the time
period between December 1 and January 31 during the term hereof. Such performance review and
evaluation may be conducted concurrently with an annual base salary review provided for in
Section 2.2 hereof, and in accordance with the purpose noted in Section 5 1 above
5 3 Establishment of Goals The City Council will establish performance objectives
and goals for Employee in connection with the initial evaluation, and each annual evaluation, of
Employee pursuant to this Section 5 Such objectives and goals shall be reasonably attainable
within the time frame established by the City Council and within the City's annual budget.
6 Benefits and Other Compensation
6 1 Professional Development. The City recognizes its obligation to the professional
development of the City Manager, and agrees Employee shall be given adequate opportunities to
develop and maintain skills and abilities as the City Manager Employee is expected and
encouraged to and does agree to participate in professional organizations and to attend local and
regional meetings and conferences related to matters of interest to the City consistent with the time
required for such attendance in relationship to Employee's other responsibilities as determined by
the City Council. The City Council hereby agrees to budget an amount, to be determined in the
exercise of its sole discretion, to pay the cost, travel and subsistence expense of Employee for
professional and/or official travel, meetings, and occasions adequate to continue professional
development of Employee and to adequately pursue necessary official functions for the City All
out-of-state professional and/or official travel by Employee shall be pre -approved, in writing, by
City's Mayor and Mayor Pro Tem. Employee shall be responsible for maintaining any
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professional certifications recognized as necessary or desirable in the performance of the duties
hereunder The City agrees to pay the annual professional dues and subscriptions necessary for full
participation in national, regional, state, or local associations and organizations necessary and
desirable for the best interests of the City, and for Employee's continued professional participation
and advancement. To authorize the City's annual costs related to Employee's continued
professional development, the anticipated costs must be included in the City's adopted or amended
annual budget. The City Council is the approval authority for the City's annual budget. At a
minimum, that may include any professional dues for membership with the ICMA, and the League
of California Cities (LCC), as well as including travel expenses and registration for attendance at
the annual ICMA conference, the annual LCC General Membership conference (LCC's Annual
Conference), the annual LCC City Manager Department conference, and the annual LCC New
Mayor and Council Members Academy
6.2 Paid Annual Leave. Employee shall be entitled to paid annual leave ("Annual
Leave") at an accrual rate of fifteen and seven one -hundredths (15 07) hours pro rata per pay
period. Employee's Annual Leave is inclusive of all other leave benefits including, but not limited
to, sick leave, executive leave, and vacation. Upon separation, for any reason, Employee shall be
entitled to one hundred percent (100%) of Employee's unused Annual Leave balance then existing,
at Employee's then current hourly rate of pay, subject to normal and proper withholdings as
determined by state and federal law, and shall be subject to payroll taxes, workers' compensation,
and other payroll -related liability costs in the same manner as other employees of the City
6 3 Holiday Leave. Employee shall be granted the following twelve (12) holidays New
Year's Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor
Day, Columbus Day, Veteran's Day, Thanksgiving Day, Day after Thanksgiving Day, Christmas
Eve and Christmas Day (twelve 8-hour days)
6 4 Health and Welfare Benefits. Employee shall be entitled to certain rights and
privileges accorded to City Department Directors regarding health, welfare and benefits, as
provided in the City Department Directors' Memorandum of Understanding, as set forth in Exhibit
"A" to this Agreement.
6 5 Retirement. Employee is believed to be a New Member/PEPRA, as defined by
CalPERS and as mandated by the Public Employees' Pension Reform Act of 2013 Employee will
be classified in the City's Tier II pension plan. Accordingly, Employee shall be entitled to
participate in the City's CalPERS Retirement Program with the 2% at 62 formula.
6 6 Automobile. Employee shall receive Five Hundred Dollars ($500 00) per month as
vehicle allowance to reimburse Employee for use of a personal vehicle in pursuit of recognized
official duties The allowance will be paid in the regular payroll process with Salary beginning
with the first payroll paid subsequent to the Employee's commencement date consistent with the
payment method of allowances provided to other employees of the City The allowance is subject
to normal and proper withholdings as determined by state and federal law and shall be subject to
payroll taxes and other payroll -related liability costs in the same manner as other employees of the
City Employee shall be responsible for any personal income tax that may result from that
reimbursement.
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6 7 Deferred Compensation. Employee is eligible to participate in the City's 457 and
401(a) deferred compensation programs Commencing January 2022, on or before the second
payroll check date of each calendar year the City will contribute the maximum amount allowed
under the law (including catchup provisions for employees 50 years or older) for that year to
Employee's 457 deferred compensation plan. Additionally, commencing January 2022, on or
before the second payroll check date of each calendar year the City will also contribute the sum of
Thirteen Thousand Two Hundred Twenty -Eight Dollars ($13,228 00) to Employee's 401(a)
deferred compensation plan. If at any time the City ceases to participate in a 401(a) plan, or is
otherwise unable to make the contribution, Employee's salary will be adjusted to include the
balance of the unmade contribution.
6 8 Bonding. The City shall bear the fall cost of any fidelity or other bonds required for
Employee under any law or City ordinance
6 9 Flexible Spending Account. The City provides a Flexible Spending Account (FSA)
program at Employee's sole cost and expense (employee cost may be income tax deferred in
accordance with IRS regulations) Expenses that may be reimbursed using the FSA program
include childcare, medical expenses not covered by insurance plan, orthodontic work, and similar
qualifying expenses
6 10 Business Equipment. The City will provide to Employee any job -related personal
tools or equipment, such as a computer, desk, land -line phone, file cabinets, table and chairs, that
serve the professional development of Employee and/or is needed to perform Employee's
functions and duties Upon termination, for any reason, Employee shall return all business
equipment to the City no later than Employee's last day of employment. The City shall provide a
City -owned cell phone for City -related business and functions during, before and after normal
work hours The City shall pay for any expenses related to initial purchase, data plan, monthly
service plan, insurance, and replacement due to normal wear and tear Employee shall follow the
inventory control procedures for portable devices such as laptops and cell phones consistent with
control procedures for other City employees.
7 Indemnification. To the extent mandated by the California Government Code, the City
shall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim
or demand, or other legal action arising out of an alleged act or omission occurring in the
performance of Employee's services under this Agreement. This section shall not apply to any
intentional tort or crime committed by Employee, to any action outside the course and scope of
Employee's employment, or any other intentional or malicious conduct or gross negligence of
Employee.
8 Other Terms - Conditions of Employment. The City Council, in consultation with
Employee, shall establish any such other terms and conditions of employment as it may determine
from time to time, provided such terms and conditions do not exceed the maximum salary and
benefits approved by the City Council and are reduced to writing and signed by Employee and the
Mayor of the City
9 General Provisions
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91 Entire Agreement. This Agreement represents the entire Agreement and
understanding between the Parties and supersedes any and all other agreements and
understandings, either oral or in writing, between the Parties with respect to Employee's
employment by the City and contains all of the covenants and agreements between the Parties with
respect to such employment. No ordinances or resolutions of the City governing employment,
including the Personnel System, shall apply unless specified herein. Each Party to this Agreement
acknowledges that no representations, inducements, promises or agreements, orally or otherwise,
have been made by either Party, or anyone acting on behalf of either Party, which are not embodied
herein, and that no other agreement, statement or promises not contained in this Agreement shall
be valid or binding upon either Party
9.2 Amendment. This Agreement may be amended at any time by the mutual consent
of the Parties by an instrument in writing, which amendment shall require City Council approval.
9.3 Notice. Any notice or other communication required, or which may be given,
pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on
the date of delivery in person, (ii) five (5) days after deposit in first class registered mail, with
return receipt requested, (iii) on the actual delivery date if deposited with an overnight courier, or
(iv) on the date sent by facsimile, if confirmed with a copy sent contemporaneously by first class,
certified, registered or express mail, in each case properly posted and fully prepaid to the
appropriate address set forth below, or such other address as a Party may provide notice in
accordance with this section.
CITY. EMPLOYEE.
City Clerk
City of Redlands
35 Cajon Street, Suite 200
PO Box 3005 (mailing)
Redlands, CA 92373
Charles M. Duggan Jr
Address on file with City
9 4 Conflicts Prohibited. During the term of this Agreement, Employee shall not
engage in any business or transaction or maintain a financial interest which conflicts, or reasonably
might be expected to conflict, with the proper discharge of Employee's duties under this
Agreement. Employee shall comply with all requirements of law, including but not limited to,
Sections 87100 et seq , Section 1090 and Section 1126 of the Government Code, and all other
similar statutory and administrative rules
9.5 Effect of Waiver. The failure of either Party to insist on strict comphance 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 at any one time or times be deemed a waiver or relinquishment of that right or power for all
or any other times
9 6 Partial Invalidity. If any provision in 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 without being impaired or invalidated in any way
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9 7 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California, which are in full force and effect as of the Effective Date
of this Agreement.
9 8 Government Code Sections 53243 - 53243.4. Government Code sections 53243 -
53243 4 sought to provide greater transparency in local government and institute certain
limitations on compensation paid to local government executives. Those statutes require that
contracts between local agencies and certain employees include provisions requiring an
employee who is convicted of a crime involving an abuse of his office or position to provide
reimbursement to the local agency Those statutes are incorporated herein by reference
Accordingly, the Parties agree that it is their mutual intent to fully comply with these Government
Code sections and all other applicable law as it exists as of the date of execution of this Agreement
and as such laws may be amended from time to time thereafter Specifically, the following
Government Code sections are called out and hereby incorporated by this Agreement:
Section 53243 Reimbursement of paid leave salary required upon conviction of crime
involving office or position.
Section 53243 1 Reimbursement of legal criminal defense upon conviction of crime
involving office or position.
Section 53243.2 Reimbursement of cash settlement upon conviction of crime involving
office or position.
Section 53243 3 Reimbursement of non -contractual payments upon conviction or crime
involving office or position.
Section 53243 4 "Abuse of office or position" defined.
Employee represents Employee has reviewed, is familiar with, and agrees to comply fully with
each of these provisions if any of these provisions are applicable to Employee, including that
Employee agrees any cash settlement or severance related to a termination Employee may receive
from the City shall be fully reimbursed to the City if Employee is convicted of a crime involving
an abuse of Employee's office or position.
9 9 Independent Legal Advice. The City and Employee represent and warrant to each
other that each has received legal advice from independent and separate legal counsel with respect
to the legal effect of this Agreement, or had the opportunity to do so, and the City and Employee
further represent and warrant that each has carefully reviewed this entire Agreement and that each
and every term thereof is understood and that the terms of this Agreement are contractual and not
a mere recital. This Agreement shall not be construed against the Party or its representatives who
drafted it or who drafted any portion thereof.
9 10 Prohibition against Assignment. Neither this Agreement nor any right, privilege
or obligation of Employee 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, in the sole discretion of and at the option of the City Council, be null and void
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and may be considered a material breach of this Agreement and "cause" for termination of this
Agreement
9 11 Severabihty If any provision of this Agreement is held by a court of competent
jurisdiction to be mvand, void or unenforceable, the remaining provisions shall nevertheless
continue in full force and effect without bemg impaired o>_ invalidated m any way
IN WITNESS WHEREOF, the City of Redlands has caused this Agreement to be signed
and executed on its behalf by its Mayor, and duly attested by the City Clerk, and Employee has
signed and executed this Agreement, all in tnphcate
NDS EMPLOYEE
By eit-0-(411iler,)/
Paul T Barich, Mayor Charles M Duggan Jr
ATTEST
nne Donaldson, City Clerk
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EXHIBIT "A"
ADDITIONAL BENEFITS
• Medical Insurance — City pays the entire monthly premium for employees and their
eligible dependents through PERS Health
• Dental Insurance — City pays the entire monthly premium for employees and their
eligible dependents
• Vision Insurance - City pays the entire monthly premium for employees and their eligible
dependents
• $150 per year to offset medical insurance co -payments and/or deductibles
• Life Insurance - $25,000
• Accidental Death & Dismemberment Insurance - $25,000
• Eligible for State Disability Insurance — All costs paid by employee
• Credit Union
• Employee Assistance Program
• Retiree Health
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