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HomeMy WebLinkAbout2004 CON Chris Zapata - City Manager Employment AgreementEMPLOYMENT AGREEMENT City Manager City of National City California EMPLOYMENT AGREEMENT TABLE OF CONTENTS Page Introduction 1 Section 1 Term 1 Section 2 Duties and Authority 1 Section 3 Compensation 1 Section 4 Health, Disability and Life Insurance Benefits 1 Section 5 Vacation, Sick and Military Leave 1 Section 6 Monthly Vehicle Allowance 2 Section 7 Retirement 2 Section 8 General Business Expenses 2 Section 9 Termination 3 Section 10 Severance 3 Section 11 Resignation 3 Section 12 Performance Evaluation 3 Section 13 Hours of Work 4 Section 14 Outside Activities 4 Section 15 Moving and Relocation Expenses 4 Section 16 Housing Assistance Payments 4 Section 17 Indemnification 4 Section 18 Bonding 5 Section 19 Other Terms and Conditions of Employment 5 Section 20 Notices 5 Section 21 General Provisions 5 EMPLOYMENT AGREEMENT This Agreement made and entered into this 20th day of January, 2004, by and between the City of National City, a municipal corporation, (hereinafter called "Employer") and Chris Zapata (hereinafter called "Employee") an individual who has the education, training and experience in local government management and who, as a member of ICMA, is subject to the ICMA code of Ethics, both of whom agree as follows: Section 1 Term This Agreement shall remain in full force in effect for a period of five (5) years from February 9, 2004, through February 8, 2009, unless sooner terminated by the Employer or Employee as provided in Section 9, 10 or 11 of this Agreement. Section 2 Duties and Authority Employer agrees to employ Chris Zapata as City Manager, on an at -will basis, to perform the functions andduties specified in the National City Municipal Code and the California Government Code, and to perform other legally permissible and proper duties and functions, commencing on February 9, 2004. Section 3 Compensation A. Base Salary: Employer agrees to pay Employee an annual base salary of $165,000, payable in installments at the same time that the other executive employees of the Employer are paid. B. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the Employer's compensation policies. C. Consideration shall be given on an annual basis to increase salary, based upon increases in the Consumer Price Index. Any additional increase in salary shall be dependent upon the results of the performance evaluation conducted under the provisions of Section 12 of this Agreement. Section 4 Health, Disability and Life Insurance Benefits A. The Employer agrees to provide Employee a cafeteria health benefit of $850 per month. B. The Employer agrees to put into force and to make required premium payments for short term and long term disability coverage for the Employee. C. The Employer shall pay the amount of premium due for term life insurance in the amount of $150,000. The Employee shall name the beneficiary of the life insurance policy. Section 5 Vacation, Sick and Military Leave A. Upon commencing employment, the Employee shall be credited with 60 hours of vacation leave and 128 hours of sick leave. The Employee shall then accrue sick and vacation leave and other paid leave on an annual basis at the rate provided to Executive employees. B. The Employee is entitled to accrue all unused vacation and sick leave, without limit, and in the event the Employee's employment is terminated, either voluntarily or involuntarily, the Employee shall be compensated for all unused vacation and sick leave in accordance with the Employer's customary practice for Executive Employees. Page 1 Employment Agreement City Manager C. The Employee shall be entitled to military reserve leave time pursuant to sate law and City policy. Section 6 Monthly Vehicle Allowance The Employer agrees to pay to the Employee, during term of this Agreement and in addition to other salary and benefits herein provided, the sum of $6,600 per year, payable monthly, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater National City area. For purposes of this Section, use of the car within the greater National City area is defined as travel to locations within a 50 mile radius of the National City Civic Center. Section 7 Retirement The Employer agrees to enroll the Employee into the Public Employee's' Retirement System and to make all the appropriate contributions on the Employee's behalf, for both the Employer and Employee share required. Section 8 General Business Expenses 1. Employer agrees to budget for and to pay for professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state, and local associations, and organizations necessary and desirable for the Employee's continued professional participation, growth, and advancement, and for the good of the Employer. 2. Employer agrees to budget for and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer, including but not limited to the ICMA Annual Conference, the League of California Cities, and such other national, regional, state, and local governmental groups and committees in which Employee services as a member. 3. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for the Employee's professional development and for the good of the Employer. 4. Employer recognizes that certain expenses of a non -personal but job -related nature are incurred by Employee, and agrees to reimburse or to pay said general expenses. The Finance Director is authorized to disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. 5. The Employer acknowledges the value of having Employee participate and be directly involved in local civic clubs or organizations. Accordingly, Employer shall pay for the reasonable membership fees and/or dues to enable the Employee to become an active member in local civic clubs or organizations. 6. The Employer shall provide Employee with a computer, software, fax/modem, cell phone and pager required for the Employee to perform the job and to maintain communication. Page 2 Employment Agreement City Manager Section 9 Termination For the purpose of this Agreement, termination shall occur when: 1. The majority of the Employer's City Council votes to terminate the Employee at a duly authorized public meeting. 2. If the Employer, citizens or legislature acts to amend any provisions of the state or local law pertaining to the role, powers, duties, authority, responsibilities of the Employee's position that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination. 3. If the Employer reduces the base salary, compensation or any other financial benefits of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Agreement and will be regarded as a termination. 4. If the Employee resigns following an offer to accept resignation, whether formal or informal, by the Employer as representative of the majority of the governing body that the Employee resign, then the Employee may declare a termination as of the date of suggestion. 5. Breach of contract declared by either party with a 30 day cure period for either Employee or Employer. Written notice of a breach of contract shall be provided in accordance with the provisions of Section 20. Section 10 Severance The Employee is an at -will employee, serving at the pleasure of the Employer's City Council. This Agreement, and the Employee's employment with the Employer, may be terminated with or without cause by the Employer's City Council. In the event the Employee is terminated for cause, or voluntarily resigns his position with the Employer, then the Employee shall not be entitled to the payment of Severance by the Employer. In the event the Employee is terminated by the Employer other than for cause, and during such time that Employee is willing and able to perform his duties under. this Agreement then Employer agrees to pay Severance equal to one-half year's base salary at the current rate of pay. This Severance shall be paid in one lump sum unless otherwise agreed to by the Employer and the Employee. In the event of Severance, the Employee shall also be compensated for all accrued sick and vacation leave. If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay Severance under this section. Section 11 Resignation In the event that the Employee voluntarily resigns his position with the Employer, the Employee shall provide a minimum of 30 days notice unless the parties agree otherwise. Section 12 Performance Evaluation Employer may annually review the performance of the Employee in the Employee's anniversary month subject to a process, form, criteria, and format for the evaluation which shall be mutually agreed upon by the Employer and Employee. The process at a minimum may include the Page 3 Employment Agreement City Manager opportunity for both parties to: (1) prepare a written evaluation, (2) meet and discuss the evaluation, and (3) present a written summary of the evaluation results. The final written evaluation should be completed and delivered to the Employee within 30 days of the evaluation meeting. Section 13 Hours of Work It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the Employer, and to that end Employee shall be allowed to establish an appropriate work schedule, compatible with the normal business hours of the City of National City. Section 14 Outside Activities The employment provided for by this Agreement shall be the Employee's sole employment. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the Employer and the community, the Employee may, upon completion of two (2) years of employment, elect to accept limited teaching, consulting or other business opportunities,and to pursue further education, with the understanding that such arrangements shall not constitute interference with nor a conflict of interest with his or her responsibilities under this Agreement. Section 15 Moving and Relocation Expenses The Employer shall pay the Employee the lump sum of $5,000 for relocation and moving expenses, upon the commencement of employment by the Employee. Section 16 Housing Assistance Payments During such time as the Employee maintains his principal residence in National City, the Employer shall pay the Employee $250.00 per month as a housing assistance payment. Section 17 Indemnification In accordance with Federal, State or Local Law, Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the course and scope of the performance of Employee's duties as City Manager, or resulting from the exercise of judgment or discretion in connection with the course and scope of performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. In such cases, the Employee may request and the Employer shall not unreasonably refuse to provide independent legal representation at the Employer's expense and the Employer may not unreasonably withhold approval. Legal representation provided by Employer for Employee shall extend until a final determination of the legal action, including any appeals brought by either party. The Employer shall indemnify Employee against any and all losses, damages, judgments, interest, settlements, fines, court costs and other reasonable costs and expenses of legal proceedings including attorney's fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of or in connection with the performance of the Employee in the course and scope of his duties. Any settlement of any claim must be made with prior approval of the Employer in order for indemnification, as provided in this Section, to be available. Employee recognizes the Employer shall have the right to compromise and settle any claim or suit. Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the pendency of any litigation to which the Employee is a party, witness or advisor to Page 4 Employment Agreement City Manager the Employer. Such expense payments shall continue beyond Employee's service to the Employer as long as litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding pending litigation. Section 18 Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 19 Other Terms and Conditions of Employment A. The Employer shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Municipal Code or any other law. B. Except as otherwise provide in this Agreement, the Employee shall be entitled to the highest level of benefits that are enjoyed by other appointed employees of the Employer as provided in the Municipal Code or by practice. Section 20 Notices Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) EMPLOYER: Mayor, City of National City, 1243 National City Boulevard, National City, CA 91950-4301. (2) EMPLOYEE: At the address of the Employee's principal residence. Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 21 General Provisions A. Integration. This Agreement sets forth and establishes the entire understanding between the Employer and the Employee relating to the employment of the Employee by the Employer. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this Agreement during the life of the Agreement. Such amendments shall be incorporated and made a part of this Agreement. B. Binding Effect. This Agreement shall be binding on the Employer and the Employee as well as their heirs, assigns, executors, personal representatives and successors in interest. C. Effective Date. This Agreement shall become effective on January 20, 2004. D. Severability. The invalidity or partial invalidity of any portion of this Agreement will not effect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision. Page 5 Employment Agreement City Manager E. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. F. Construction. The parties acknowledge and agree that (1) each party is of equal bargaining strength, (2) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (3) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (4) each party and such party's counsel and advisors have reviewed this Agreement, (5) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (6) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CI By: 7 Nick Inzun Chris Zap APPROVED AS TO FORM: George H. iser, III City Attorney Page 6 Employment Agreement City Manager City of National City Office of the City Attorney 1243 National City Boulevard, National City, CA 91950-4301 George H. Eiser, Ill • City Attorney (619) 336-4220 Fax (619) 336-4327 TDD (619) 336-1615 TO: City Clerk FROM: City Attorney SUBJECT: Transmittal of Employment Agreement DATE: February 3, 2004 Transmitted herewith is the fully -executed Employment Agreement between the City of National City and Chris Zapata. 28 GEORGE H. EISER, Ill City Attorney GHE/gmo Attachment ® Recycled Paper RESOLUTION NO. 2004 — 9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPOINTING CHRIS ZAPATA CITY MANAGER BE IT RESOLVED by the City Council of the City of National City that Chris Zapata is hereby appointed City Manager. BE IT FURTHER RESOLVED that the City Council hereby approves that document entitled Employment Agreement — City Manager, dated January 20, 2004. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of January, 2004. ATTEST: 4 Mic .el Dalla, " Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney Passed and adopted by the Council of the City of National City, California, on January 20, 2004 by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Ungab. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of Natiorjal City, California i Cityrk of the Ci i National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2004-9 of the City of National City, California, passed and adopted by the Council of said City on January 20, 2004. City Clerk of the City of National City, California By: Deputy Book 86/Page 19 1/20/04 MAYOR AND CITY COUNCIL (cont.) Councilman Natividad recognized Bertha Juarez for her efforts on behalf of the community. Vice Mayor Parra thanked Council and staff for their clean up efforts. CLOSED SESSIONS Conference with Legal Counsel Initiation of Litigation pursuant to Government Code Section 54956.9(c) (One potential case) Public Employment — Government Code Section 54957 Title: City Manager ACTION: Motion by Parra, seconded by Morrison, to go into Closed Session. Carried by the following vote, to -wit: Ayes: Inzunza, Morrison, Parra, Ungab. Nays: None. Absent: Natividad. Abstain: None. Councilmembers left the Chamber at 8:25 p.m. Councilmembers reconvened at 8:40 p.m. All members were present ACTION: City Attorney Eiser reported that the City Council took action in Closed Session to appoint Chris Zapata as City Manager. Mr. Eiser introduced and read Resolution No. 2004-9 formalizing the appointment of Chris Zapata, Jr. as City Manager, and approving an employment agreement. PERSONNEL / NEW EMPLOYEE INTRODUCTION PROG (602-2-2) Resolution No. 2004-9. A "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPOINTING CHRIS ZAPATA CITY MANAGER." ACTION: Motion by Morrison, seconded by Natividad, to approve the Resolution. Carried by unanimous vote. Book 86/Page 20 1/20/04 Mayor Inzunza read a news release announcing the appointment of Chris Zapata as City Manager. ADJOURNMENT The meeting was adjourned to the Next Regular Meeting of the City Council to be held on Tuesday, February 3, 2004, at 6:00 p.m., Council Chambers, Civic Center. The meeting closed at 8:45 p.m. A?-eit,d) CITY LERK The foregoing minutes were approved at the Regular Meeting of February 3, 2004. YOR CITY OF NATIONAL CITY ALL CITY COUNCIL MEETINGS ARE TAPE-RECORDED. YOU MAY LISTEN TO THE TAPES IN THE CITY CLERK'S OFFICE. COPIES OF THE TAPES MAY BE PURCHASED FROM THE CITY CLERK.