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08/25/05
Jerry
Hansen's latest "Employment/Consultant Contract. Note that
even though Corky Larsen is now trying to revoke said contract,
she signed it as "approved to form". Contract
may be voided because Council only voted to approve it once.
It takes 2 votes yes by council to approve.
EMPLOYMENT AGREEMENT
by and between
CITY OF DESERT HOT SPRINGS
and
JERRY G. HANSON
THIS EMPLOYMENT AGREEMENT (Agreement) is entered into as of the
8th day of June 2005 by and between the City of Desert Hot Springs.
State of California. a municipal corporation (the ‘City")
and current City Manager Jerry G. Hanson (the Employee/Consultant’)
This Agreement replaces in its entirety the previous Employment
Agreements between the above two parties.
RECITALS
WHEREAS. the City is a charter city which operates under the City
Manager form of government pursuant to Government Code Sections
34851 et ~ and
WHEREAS, the City Manager holds office at the pleasure of the
City Council of the City (the ~‘City Council") pursuant
to Government Code Section 36506; and
WHEREAS, the City Council advertised, solicited and interviewed
applicants to find the most qualified City Manager; and
WHEREAS, the City Council found Employee/Consultant to be the
best and most qualified candidate and entered into an employment
agreement with Employee/Consultant and
WHEREAS, the working relationship between Employee/Consultant
and the City Council has been extremely productive and beneficial;
and
WHEREAS, the City Council has found the Employee/Consultant’s
performance to be exceptional in resolving numerous difficult
and complex situations requiring the skill of an exceptional executive
and professional manager; and,
WHEREAS, the Employee/Consultant not only performs exceptionally
as City Manager, he also serves the City as a Professional Engineer
and Architect regarding City matters; and,
WHEREAS, the City of Desert Hot Springs and the Employee/Consultant
desire to transition City Manager leadership within city government,
resulting in the least disruption to programs and services; and,
WHEREAS, the City of Desert Hot Springs and Employee/Consultant
desire to facilitate the best possible historical record and organizational
background transfer to new city management as the City moves forward;
and,
City Manager Contract - 6-7-2005 1 of 10
WHEREAS, the City and Employee/Consultant have come to agreement
on mutually beneficial terms and conditions to provide for the
provisions of the former contract; and
WHEREAS, the parties hereto now desire to set forth a new Agreement
as to the terms and conditions of employment by the City.
NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties agree as follows:
TERMS AND COND1TTON~
Section 1. EMPLOYMENT.
City hereby accepts this new contract of employment of Jerry G.
Hanson as Interim City Manager or Consultant for the City and
Employee/Consultant hereby accepts the terms and conditions set
forth herein:
Section 2. OBLIGATIONS OF THE CITY.
The City shall provide the Employee/Consultant with the compensation,
benefits and business expenses reimbursements as specified herein.
Section 3.. COMPENSATION.
a. The effective date of this Agreement, the Employee/Consultant’s
compensation shall remain his current compensation and benefits.
Compensation will be paid in installments in accordance with the
City’s normal procedures. Effective August 1, 2005 the Employee/Consultant
shall be paid a fee of One Hundred Fifty Dollars ($150.00) per
hour not to exceed 960 hours in a calendar year but not less than
fifty hours per normal city two-week pay period. Upon appointment
of a new City Manager or after February 12, 2006 whichever occurs
first, the Employee/Consultant shall become a Management Development,
and Technical Consultant to the City Council and new City Manager,
and Employee/Consultant shall be paid One Hundred Twenty-Five
Dollars ($125.00) per hour not to exceed 960 hours in a calendar
year but not less than thirty hours per normal two-week city pay
period.
b. The compensation of the Employee/Consultant will be increased
three percent (3%) per year above the existing level, effective
on each annual anniversary, which is February yearly.
Section 4. ANNUAL LEAVE.
Upon execution of this Agreement the City shall provide the annual
leave per the last
City Manager Contract - 6-7-2005 2 of 10
contract through August 1, 2005 and in addition the City will
provide Employee/Consultant one-hundred (100) hours of use-only
paid vacation, which must be used before September 15, 2005. After
August 1, 2005 the City shall provide the Employee/Consultant
eight (8) hours of annual leave and eight (8) hours of Holiday
time per month or partial month. Annual leave and compensation
time shall accrue, accumulate and be disposed of in accordance
with the rules and policies of the City for regular employees.
Section 5.. DEFERRED COMPENSATION.
The City will provide Employee/Consultant at city expense. a monthly-deferred
compensation package of Two Thousand Dollars ($2,000.00) through
February 12. 2006.
Section 6. HEALTH BENEFIT ALLOWANCE. -
For the term of this Agreement. the City shall pay to Employee/Consultant
Seven Hundred Sixty Dollars ($760.00) per month for a PPO full
health, dental. and vision plan.
Section 7.. BOND1NG & INSURANCE
The City shall bear the full cost and provide for any bonds or
insurance required of the Employee/Consultant under normal practice,
law, or ordinance. The City shall protect, defend~ indemnify,
and hold harmless the Employee/Consultant regarding any acts,
omissions, errors, or actions brought against the Employee/Consultant
or the City regarding the Employee/Consultant relating to work
for the City.
Sections. EXPENSE ALLOWANCE.
For the term of this Agreement, the City shall provide to the
Employee/Consultant a monthly expense allowance in the amount
of Five Hundred Dollars ($500.00), and shall provide one hundred
(100) gallons of gasoline per month for Employee/Consultant’s
use of his own automobile. After August 1, 2005 the monthly expense
allowance shall increase to Six Hundred and Seventy- Five Dollars
($675.00) per month or partial month.
Section 9.. LIFE INSURANCE PREMIUM.
Until February 12,2006 the City shall reimburse to the Employee/Consultant
the monthly premiums paid by the Employee/Consultant on a Two
Hundred Thousand Dollars ($200,000.00) whole life insurance policy
owned by the Employee/Consultant
City Manager Contract - 6-7-2005 3 of 10
Section 10. MEMBERSHIP FEES AND CONFERENCING COSTS.
a. The City shall pay the Employee/Consultant’s license
fees. membership fees, registration costs. and other incidental
costs associated with the Employee/Consultant’s work or
attendance at conferences.
b. In addition. the City shall pay up to a maximum amount of Six
Hundred Dollars ($600.00) per calendar year or partial calendar
year worked for the City for training or continuing education.
Education allowances may be applied toward the purchase of technical
equipment or other professional expenses related to City work.
Section 11. OTHER BENEFITS.
a. Until August 1, 2005 in addition to the provisions of Section
3b. the Employee/Consultant shall be entitled to the across-the-board
compensation increases granted to all regular employees effective
from his date of hire at the City of Desert Hot Springs.
b. Until August 1.. 2005 as a public employee of the City, the
Employee/Consultant shall be a member of the California Public
Employee Retirement System (hereinafter "PERS") and
shall be eligible for PERS retirement benefits. The City agrees
to make full contributions on behalf of the Employee/Consultant
in accordance with the contribution rates and standards of PERS.
All current or future PERS contributions required to provide the
Employee/Consultant his most recent PERS estimates for PERS retirement
benefits shall be paid by the City.
c. Employee/Consultant will be allowed to accumulate his yearly
educational allowances in order for him to take educational work,
training, or purchase job related equipment costing more than
a single year’s allocation for education. On or before 6/30/2005
the Employee/Consultant shall be paid the balance of his accumulated
educational allowance.
d. The City shall provide the Employee/Consultant with professional
level office space, desk furnishings, equipment, telephone, cell
phone, e-mail, internet, fax, copier, software, and other incidental
to perform his work or pay Employee/Consultant Eight Hundred Fifty
Dollars ($850.00) per month to provide same. Administrative support
staff shall be provided by the City as needed to complete city
administrative work tasks related to Employee/Consultant’s
work.
e. On effective date of this Agreement, the City shall provide
to the Employee/Consultant the City lap top computer and all accessories
he uses. Five Hundred Dollars ($500.00) shall be deducted from
Employee/Consultant’s education and equipment account to
make this purchase.
City Manager Contract - 6-7-2005 4 of 10
Section 12. DUTIES OF EMPLOYEE.
a. During the Term of this Agreement, the Employee/Consultant
agrees to perform the functions and duties of the Interim City
Manager as specified in the Municipal Code of City. Upon appointment
as consultant. the Employee/Consultant shall perform the duties
listed in Exhibit A attached hereto and made a part of this Agreement.
b. The Employee/Consultant shall act in the interests of the City
and agrees to comply with the ethics provisions of the Political
Reform Act and Government Code Section 1090.
c. The Employee/Consultant acknowledges this position requires
considerable time and attention and during the term of this Agreement
shall manage his time diligently and efficiently.
Section 13. EFFECTIVE DATE, TERM AND ANNUAL RENEWAL.
a. The Employee/Consultant was first appointed as City Manager
on February 12. 2003 and for purposes of this subsequent Agreement,
February 12th will be considered the annual anniversary date for
this Agreement. The effective date of this Agreement is June 7,
2005.
b. This Agreement expires February 12, 2006 but thereafter automatically
renews yearly for an additional two (2) years until February 12,
2008.
Section 14. SEPARATION.
On or after January 12,2006 but no later than February 12, 2006
the City shall pay to the Employee/Consultant the City’s
cost to provide a two (2) year "Golden Handshake" credit
to his PERS retirement program which is a past unfulfilled contract
requirement. The City cost for purchase of the two (2) year "Golden
Handshake" shall be computed as of June 30, 2005.
Section 15. SUSPENSION.
The Employee/Consultant may be suspended with full pay and benefits
at any time and for any reason during the Term of this Agreement
at the direction of the City Council.
Section 16. TERMINATION.
It is agreed, this Agreement can be terminated by either party,
with or without cause, at any time upon thirty (30) days written
notice to the other party. However, termination of this Agreement
by the City prior to February 12, 2006 requires the City, to pay
the
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Employee/Consultant for compensation, benefits, and expenses through
February 12, 2006 as an
Employee/Consultant on administrative leave with pay or an equivalent
lump sum at the
Employee/Consultant’s option. If the City terminates this
Agreement, the City agrees to pay the
employee three months of his contract as a reimbursement for set
up expenses.
Section 17. INDEMNIFICATION.
The City will protect, defend, indemnify, and hold harmless the
Employee/Consultant for any acts or actions brought against the
Employee/Consultant in connection with his employment for the
City. This obligation shall not apply to any criminal actions
or actions of gross negligence brought against the Employee/Consultant.
Section 18. HOURS OF WORK.
-
The Employee/Consultant is expected to maintain a reasonable presence
at his place of employment during normal working hours. Because
it is recognized that the Employee/Consultant must devote time
outside regular office hours of the City, he will be permitted
flexibility in his work hours. as long as his duties are fulfilled.
Section 19. NOTICES.
Notices pursuant to this Agreement shall be given by persona!
service or by deposit in the United States mail, postage pre-paid,
addressed as follows:
a. If to City: Mayor and City Council
City of Desert Hot Springs
65950 Pierson Blvd.
Desert Hot Springs, CA 92240
b. If to Employee: Jerry G. Hanson
City of Desert Hot Springs
65950 Pierson Blvd.
Desert Hot Springs, CA 92240
Notice shall be deemed given as of the date of personal service
or one (1) day alter the date of deposit in the United States
mail.
Section 20. CONFLICTS OF INTEREST.
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The Employee/Consultant shall comply with statutory and City Council
policy regarding conflicts of interest. Upon separation as City
Manager, the Employee/Consultant shall be allowed to provide services
to other parties.
Section 2l. COMPLIANCE WITH LAWS.
The Employee/Consultant shall comply with local, State and Federal
laws and regulations applicable to the services required hereunder.
Section 22. NONDISCRIMINATION.
The Employee/Consultant shall comply with the Cit~s nondiscrimination
policies.
Section 23. CONFIDENTIALITY.
Confidential documents obtained from the City in the performance
of services under this Agreement are confidential unless public
disclosure is allowed by law.
Section 24. MODIFICATIONS AND AMENDMENTS.
This Agreement may be modified or amended only by a written instrument
signed by both parties.
Section 25. ENTIRE AGREEMENT.
a. This Agreement supersedes any and all other prior agreements,
either oral or written, between the City and the Employee/Consultant.
b. This Agreement contains all of the covenants and agreements
between the parties and each party to this Agreement acknowledges
that no representations, inducements, promises, or agreements
have been made by or on behalf of any party except those covenants
and agreements embodied herein.
Section 26. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES.
Except as allowed by law a regular City employee shall not be
personally liable in the event of breaching this contract by the
City. Obligations under this contract are intended to be obligations
of the City and not the City employees except as allowed by law.
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Section 27. WAIVER.
Failure of either party to enforce any provision of this Agreement
shall not constitute a waiver of the right to compel enforcement
of the remaining provisions of this Agreement
Section 28. SEVERABILITY.
If any one or more of the sentences, clauses, paragraphs or sections
contained herein is declared invalid, void or unenforceable by
a court of competent jurisdiction, the same shall be deemed severable
from the remainder of this Agreement and shall not affect, impair
or invalidate any of me remaining sentences, clauses, paragraphs
or sections contained herein.
Section 29. GOVERNING LAW.
The validity of this Agreement and any of its terms or provisions,
as well as the rights and duties of the parties under this Agreement,
shall be construed pursuant to and in accordance with California
law and Federal law.
Section 30. RIGHTS AND REMEDIES.
Except with respect to rights and remedies expressly declared
to be exclusive in this Agreement, the rights and remedies of
the parties are cumulative and the exercise by either party of
one or more of such rights or remedies shall not preclude the
exercise by it, at the same or different times, of any other rights
or remedies for the same default of any other default by the other
party.
Section 31. VENUE.
All proceedings involving disputes over the terms, provisions,
covenants or conditions contained in this Agreement and all proceedings
involving any enforcement action related to this Agreement shall
be submitted to binding arbitration under the rules of the American
Arbitration Association.
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IN WITNESS WHEREOF, the City of Desert Hot Springs has caused
this Agreement to be executed by its Mayor, as duly attested by
its City Clerk, and the Employee/Consultant has executed this
Agreement as of the date below.
Date 6/8/2005
CITY OF DESERT HOT SPRINGS STATE OF CALIFORNIA
Matt Weyuker, Mayor
ATTEST:
Rossie Stobbs, City Clerk
EMPLOYEE/CONSULTANT
Jerry G. Hanson, Interim City Manager or
Management, Development, Technical Consultant
EMPLOYEE/CONSULTANT
Jerry G. Hanson, Interim City Manager or
Management, Development, Technical Consultant
APPROVED AS TO FORM:
Patricia Larson, City Attorney
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EXHIBIT A
Management. Development & Technical Consultant
EMPLOYMENT AGREEMENT 6-7-2005
City of Desert Hot Springs and Jerry G. Hanson
Duties: To work independently as professional and executive level
extension of staff in cooperation and support of the City Council
and the City Manager as:
1) City Engineer,
2) City Surveyor,
3 Oversee the Engineering-Technical Departments regarding planning,
technical, and professional direction. Administrative tasks are
excluded.
4) Attend Planning Commission meetings as necessary as seated
professional stafl
5) Attend City Council meetings as necessary as seated professional
staff.
6) Oversee the Capital improvement Program (projects over S25,000).
7) Contracting Officer for Capital Projects and Technical consultants
with sinnature authority up to $25,000.
8) Lead City professional for major land divisions (6 parcels
or more) and commercial projects over 6000 square feet.
9) Staff authority for technical code interpretation and professional
direction.
10) Represent City interest to technical agencies (RCTC, RCFWCD,
CALTRANS, CYAG, SCAG, etc.,)
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