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HomeMy WebLinkAbout2015 CON Leslie Deese - City Manager Employment Agreement - AmendedCALIFORNIA+ NATIONALCH'V INCORPORATED AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND LESLIE DEESE September 1, 2015 AMENDED AND RESTATED EMPLOYMENT AGREEMENT CITY MANAGER 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 2 Section 6 Retirement 2 Section 7 General Business Expenses 2 Section 8 Termination 2 Section 9 Severance 3 Section 10 Resignation 3 Section 11 Performance Evaluation 3 Section 12 Hours of Work 4 Section 13 Outside Activities 4 Section 14 Indemnification 4 Section 15 Bonding 5 Section 16 Other Terms and Conditions of Employment 5 Section 17 Notices 5 Section 18 General Provisions 5 AMENDED AND RESTATED EMPLOYMENT AGREEMENT THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made and entered into this 1st day of September, 2015, by and between the City of National City, a municipal corporation, (hereinafter called "Employer") and Leslie Deese (hereinafter called "Employee") an individual who has the education, training, and experience in local government management and who, as a member of International City/County Management Association ("ICMA"), is subject to the ICMA Code of Ethics, both of whom agree as follows: Section 1 Term. This Agreement is in full force and effect from July 1, 2015 through January 27, 2019, unless sooner terminated by the Employer or Employee as provided in Section 9, 10 or 11 of this Agreement. This Agreement supersedes the Employment Agreement dated March 6, 2012, the First Amendment dated July 3, 2012, and the Second Amendment dated October 21, 2014. Section 2 Duties and Authority. Employee commenced her employment as City Manager on January 27, 2012. Employer agrees to continue to employ Leslie Deese as City Manager, on an at -will basis, to perform the functions and duties specified in the National City Municipal Code and the California Government Code, and to perform other legally permissible and proper duties and functions. Section 3 Compensation A. Base Salary: Commencing July 1, 2015, Employer agrees to pay Employee a monthly base salary of $16,576; commencing January 27, 2016, Employer agrees to pay Employee a monthly base salary of $17,496; and commencing January 27, 2018, Employer agrees to pay Employee a monthly base salary of $18,656. B. This Agreement shall be re -opened to discuss compensation and benefits if, and at the time, Managers or Executives receive any increase in compensation or benefits. C. Consideration shall be given on an annual basis to increase salary, based upon increases in the Consumer Price Index ("CPI"), as that term is defined at Government Code section 3511.1(b). Any increase in salary shall be dependent upon the results of the performance evaluation conducted under the provisions of Section 11 of this Agreement. D. Deferred Compensation: Employer shall provide seven -thousand five -hundred ($7500) annually to Employee's selected deferred compensation plan. This payment shall be made each January, prior to the 27th of that month, in years 2016, 2017, and 2018. Section 4 Health, Disability, and Life Insurance Benefits. A. The Employer agrees to provide Employee a cafeteria health benefit of $1200.00 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. 1 2015 Employment Agreement City Manager Leslie Deese Section 5 Vacation, Sick and Military Leave. A. The Employee shall accrue sick and vacation leave and other paid leave on an annual basis at the rate provided to Executive level 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. C. The Employee shall be entitled to military reserve leave time pursuant to sate law and City policy. Section 6 Retirement. The Employer agrees to enroll the Employee into the Public Employees' Retirement System and to make all the appropriate contributions on the Employee's behalf, for the required Employer share. Employee shall pay the entire employee share, which is 8% at this time and any changed rate during the term of this Agreement. Section 7 General Business Expenses. A. 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. B. 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. C. 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. D. 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. E. 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. F. The Employer shall provide Employee with a computer, software, fax/modem, and cell phone required for the Employee to perform the job and to maintain communication. Section 8 Termination. For the purpose of this Agreement, termination shall occur when: A. The majority of the Employer's City Council votes to terminate the Employee at a duly authorized public meeting. 2 2015 Employment Agreement City Manager Leslie Deese B. If the Employer, citizens, or legislature acts to amend any provisions of the state or local law pertaining to the role, powers, duties, authority, and 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. C. 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. D. 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. E. 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 9 Severance. A. 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 her position with the Employer, then the Employee shall not be entitled to the payment of Severance by the Employer. B. 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 her duties under this Agreement, then Employer agrees to pay Severance equal to one-half year's base salary at the then current rate of pay. This Severance shall be paid in one lump sum unless otherwise agreed to by the Employer and the Employee. C. In the event of Severance, the Employee shall also be compensated for all accrued sick and vacation leave. D. If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay Severance under this section. If the Employee is convicted of a crime involving an abuse of office or position, then regardless of the term of the contract, if the Employee is terminated, any cash settlement, including severance, related to the termination received by Employee from Employer shall be fully reimbursed to the Employer. Section 10 Resignation. In the event that the Employee voluntarily resigns her position with the Employer, the Employee shall provide a minimum of 30 days notice unless the parties agree otherwise. Section 11 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 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. 3 2015 Employment Agreement City Manager Leslie Deese Section 12 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 13 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 14 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 her 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 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. If Employee is convicted of a crime involving an abuse of her office or position, as defined in Government Code section 53243.4, then Employee shall fully reimburse Employer for any funds provided for Employee's criminal defense, if any such funds were provided pursuant to or consistent with this Section. This paragraph shall not be construed as creating or implying an obligation by Employer to provide a criminal defense to Employee. 4 2015 Employment Agreement City Manager Leslie Deese Section 15 Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 16 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 National City 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 17 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: EMPLOYER: Mayor EMPLOYEE: Leslie Deese City of National City 906 A Avenue 1243 National City Boulevard National City, CA 91950 National City, CA 91950-4301 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 18 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 is effective as of July 1, 2015. 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. E. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 5 2015 Employment Agreement City Manager Leslie Deese 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 CITY on Morrison, Mayor PROVED A . TO FORM: udia acitua Silva City Atto ey EMPLOYEE Leslie Deese 6 2015 Employment Agreement City Manager Leslie Deese RESOLUTION NO. 2015 — 128 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND LESLIE DEESE CONTINUING HER EMPLOYMENT THROUGH JANUARY 27, 2019, INCREASING THE SALARY, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME WHEREAS, on January 24, 2012, the City Council appointed Leslie Deese ("Employee") as City Manager, effective January 27, 2012; and WHEREAS, Employee's Agreement expires January 27, 2016, and the Second Amendment to the Employment Agreement contained a provision for a salary reopener in January 2015; and WHEREAS, the City Council seeks to enter into an Amended and Restated Employment Agreement, effective as of July 1, 2015, that extends the term of employment to January 27, 2019, and supersedes the Employment Agreement dated March 6, 2012, the First Amendment dated July 3, 2012, and the Second Amendment dated October 21, 2014; and WHEREAS, Employee has not received an increase to total compensation in the past three years; and WHEREAS, Employee's salary is more than 20% below market average compensation for full service cities; and WHEREAS, the City Council seeks to increase the Employee's salary to reduce the gap between compensation and market average by implementing increases during the term of the extended Agreement; and WHEREAS, the City Council through the Amended and Restated Employment Agreement increases Employee's base salary as follows: 5% of total compensation effective July 1, 2015, 5% of total compensation effective January 27, 2016, and 6% of total compensation effective January 27, 2018. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the City Council hereby authorizes the Mayor to execute the Amended and Restated Employment Agreement between the City of National City and Leslie Deese, continuing her employment through January 27, 2019, and increasing the salary to reduce the gap between compensation and market average by implementing increases during the term of the extended Agreement. Said Amended and Reinstated Agreement is on file in the office of the City Clerk. [Signature Page to Follow] Resolution No. 2015 — 128 Page Two PASSED and ADOPTED this 1st day of September, 2015. on Morrison, Mayor ATTEST: ,1 Micl ael R. Dalla it Cl erk C erk Passed and adopted by the Council of the City of National City, California, on September 1, 2015 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios. Nays: None. Absent: Councilmember Sotelo-Solis. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California i/ City CI: r of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2015-128 of the City of National City, California, passed and adopted by the Council of said City on September 1, 2015. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: September 1, 2015 AGENDA ITEM NO. 10 ITEM TITLE: Resolution of the City Council approving the Amended and Restated Employment Agreement between the City of National City and Leslie Deese continuing her employment through January 27, 2019, increasing the salary, and authorizing the Mayor to execute the same. PREPARED BY: Claudia Gacitua Silva DEPARTMENT: PHONE: Ext. 4222 APPROVED BY: EXPLANATION: Leslie Deese was appointed as City Manager effective January 27, 2012. The City and the employee entered into an Employment Agreement on March 2, 2012, a First Amendment dated July 3, 2012, and a Second Amendment dated October 21, 2014. The current employment agreement expires January 27, 2015. The total compensation has not increased over the past three years. Currently, the City Manager's compensation is more than 20% below market average when compared to other full service cities. The City Council desires to extend the City Manager's employment through January 27, 2019 (3 years) and increase her base salary to be more comparable to other full service cities. In an effort to reduce the gap between the current compensation and the market average, incremental increases are staggered over the term of this Agreement. The City has implemented staggered increases with other employee groups. The Amended and Restated Agreement continues the employment of the City Manager through January 27, 2019 and increases her base salary as follows: 5% of total compensation effective July 1, 2015; 5% of total compensation effective January 27, 2016, and 6% of total compensation effective January 27, 2018. The City Manager receives the same benefits as the Executive Group plus an annual deferred compensation ($7,500) contribution. These already existing benefits remain unchanged under this Agreement. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. 001-403-000-1XX FY 16 — $13,205 APPROVED: FY 17 — 14,158 FY 18 — 18,103 Total — $45,466 ENVIRONMENTAL REVIEW: N/A, ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt proposed Resolution„ BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: t • Amended and Restated Employment Agreement • Proposed resolution to\,UX10 moo. QC -» :c, 1} CALIFORNIA - NATIONAL CITY INCORPORATED AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND LESLIE DEESE September 1, 2015 AMENDED AND RESTATED EMPLOYMENT AGREEMENT CITY MANAGER 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 2 Section 6 Retirement 2 Section 7 General Business Expenses 2 Section 8 Termination 2 Section 9 Severance 3 Section 10 Resignation 3 Section 11 Performance Evaluation 3 Section 12 Hours of Work 4 Section 13 Outside Activities 4 Section 14 Indemnification 4 Section 15 Bonding 5 Section 16 Other Terms and Conditions of Employment 5 Section 17 Notices 5 Section 18 General Provisions 5 AMENDED AND RESTATED EMPLOYMENT AGREEMENT THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Agreement") is made and entered into this 1st day of September, 2015, by and between the City of National City, a municipal corporation, (hereinafter called "Employer") and Leslie Deese (hereinafter called "Employee") an individual who has the education, training, and experience in local government management and who, as a member of International City/County Management Association ("ICMA"), is subject to the ICMA Code of Ethics, both of whom agree as follows: Section 1 Term. This Agreement is in full force and effect from July 1, 2015 through January 27, 2019, unless sooner terminated by the Employer or Employee as provided in Section 9, 10 or 11 of this Agreement. This Agreement supersedes the Employment Agreement dated March 6, 2012, the First Amendment dated July 3, 2012, and the Second Amendment dated October 21, 2014. Section 2 Duties and Authority. Employee commenced her employment as City Manager on January 27, 2012. Employer agrees to continue to employ Leslie Deese as City Manager, on an at -will basis, to perform the functions and duties specified in the National City Municipal Code and the California Government Code, and to perform other legally permissible and proper duties and functions. Section 3 Compensation A. Base Salary: Commencing July 1, 2015, Employer agrees to pay Employee a monthly base salary of $16,576; commencing January 27, 2016, Employer agrees to pay Employee a monthly base salary of $17,496; and commencing January 27, 2018, Employer agrees to pay Employee a monthly base salary of $18,656. B. This Agreement shall be re -opened to discuss compensation and benefits if, and at the time, Managers or Executives receive any increase in compensation or benefits. C. Consideration shall be given on an annual basis to increase salary, based upon increases in the Consumer Price Index ("CPI"), as that term is defined at Government Code section 3511.1(b). Any increase in salary shall be dependent upon the results of the performance evaluation conducted under the provisions of Section 11 of this Agreement. D. Deferred Compensation: Employer shall provide seven -thousand five -hundred ($7500) annually to Employee's selected deferred compensation plan. This payment shall be made each January, prior to the 27th of that month, in years 2016, 2017, and 2018. Section 4 Health, Disability, and Life Insurance Benefits. A. The Employer agrees to provide Employee a cafeteria health benefit of $1200.00 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. 1 2015 Employment Agreement City Manager Leslie Deese Section 5 Vacation, Sick and Military Leave. A. The Employee shall accrue sick and vacation leave and other paid leave on an annual basis at the rate provided to Executive level 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. C. The Employee shall be entitled to military reserve leave time pursuant to sate law and City policy. Section 6 Retirement. The Employer agrees to enroll the Employee into the Public Employees' Retirement System and to make all the appropriate contributions on the Employee's behalf, for the required Employer share. Employee shall pay the entire employee share, which is 8% at this time and any changed rate during the term of this Agreement. Section 7 General Business Expenses. A. 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. B. 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. C. 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. D. 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. E. 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. F. The Employer shall provide Employee with a computer, software, fax/modem, and cell phone required for the Employee to perform the job and to maintain communication. Section 8 Termination. For the purpose of this Agreement, termination shall occur when: A. The majority of the Employer's City Council votes to terminate the Employee at a duly authorized public meeting. 2 2015 Employment Agreement City Manager Leslie Deese B. If the Employer, citizens, or legislature acts to amend any provisions of the state or local law pertaining to the role, powers, duties, authority, and 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. C. 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. D. 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. E. 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 9 Severance. A. 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 her position with the Employer, then the Employee shall not be entitled to the payment of Severance by the Employer. B. 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 her duties under this Agreement, then Employer agrees to pay Severance equal to one-half year's base salary at the then current rate of pay. This Severance shall be paid in one lump sum unless otherwise agreed to by the Employer and the Employee. C. In the event of Severance, the Employee shall also be compensated for all accrued sick and vacation leave. D. If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay Severance under this section. If the Employee is convicted of a crime involving an abuse of office or position, then regardless of the term of the contract, if the Employee is terminated, any cash settlement, including severance, related to the termination received by Employee from Employer shall be fully reimbursed to the Employer. Section 10 Resignation. In the event that the Employee voluntarily resigns her position with the Employer, the Employee shall provide a minimum of 30 days notice unless the parties agree otherwise. Section 11 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 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. 3 2015 Employment Agreement City Manager Leslie Deese Section 12 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 13 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 14 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 her 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 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. If Employee is convicted of a crime involving an abuse of her office or position, as defined in Government Code section 53243.4, then Employee shall fully reimburse Employer for any funds provided for Employee's criminal defense, if any such funds were provided pursuant to or consistent with this Section. This paragraph shall not be construed as creating or implying an obligation by Employer to provide a criminal defense to Employee. 4 2015 Employment Agreement City Manager Leslie Deese Section 15 Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 16 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 National City 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 17 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: EMPLOYER: Mayor EMPLOYEE: Leslie Deese City of National City 906 A Avenue 1243 National City Boulevard National City, CA 91950 National City, CA 91950-4301 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 18 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 is effective as of July 1, 2015. 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. E. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 5 2015 Employment Agreement City Manager Leslie Deese 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 CITY EMPLOYEE By: Ron Morrison, Mayor Leslie Deese APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney 6 2015 Employment Agreement City Manager Leslie Deese RESOLUTION NO. 2015 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND LESLIE DEESE CONTINUING HER EMPLOYMENT THROUGH JANUARY 27, 2019, INCREASING THE SALARY, AND AUTHORIZING THE MAYOR TO EXECUTE THE SAME WHEREAS, on January 24, 2012, the City Council appointed Leslie Deese ("Employee") as City Manager, effective January 27, 2012; and WHEREAS, Employee's Agreement expires January 27, 2016, and the Second Amendment to the Employment Agreement contained a provision for a salary reopener in January 2015; and WHEREAS, the City Council seeks to enter into an Amended and Restated Employment Agreement, effective as of July 1, 2015, that extends the term of employment to January 27, 2019, and supersedes the Employment Agreement dated March 6, 2012, the First Amendment dated July 3, 2012, and the Second Amendment dated October 21, 2014; and WHEREAS, Employee has not received an increase to total compensation in the past three years; and WHEREAS, Employee's salary is more than 20% below market average compensation for full service cities; and WHEREAS, the City Council seeks to increase the Employee's salary to reduce the gap between compensation and market average by implementing increases during the term of the extended Agreement; and WHEREAS, the City Council through the Amended and Restated Employment Agreement increases Employee's base salary as follows: 5% of total compensation effective July 1, 2015, 5% of total compensation effective January 27, 2016, and 6% of total compensation effective January 27, 2018. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the City Council hereby authorizes the Mayor to execute the Amended and Restated Employment Agreement between the City of National City and Leslie Deese, continuing her employment through January 27, 2019, and increasing the salary to reduce the gap between compensation and market average by implementing increases during the term of the extended Agreement. Said Amended and Reinstated Agreement is on file in the office of the City Clerk. [Signature Page to Follow] Resolution No. 2015 — Page Two PASSED and ADOPTED this 1st day of September, 2015. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk LESLIE DEESE Amended and Restated Employment Agreement Ginny Miller (City Attorney) Forwarded Copy of Agreement to Leslie Deese