HomeMy WebLinkAboutItem No. 03 City Manager Employment AgreeementCity Council Agenda Report
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 21-049
Agenda Date: 2/9/2021 Status: Approval FinalVersion: 1
File Type: Council Consent
Calendar
In Control: City Council / Successor Agency
Agenda Number: 3)
City Manager Employment Agreement
Adopt Resolution confirming the appointment of Jason Simpson as City Manager and approving an
Employment Agreement.
Page 1 City of Lake Elsinore Printed on 2/4/2021
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REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Barbara Leibold, City Attorney
Date: February 9, 2021
Subject: City Manager Employment Agreement
Recommendation
Adopt Resolution confirming the appointment of Jason Simpson as City Manager and approving
an Employment Agreement.
Background
City Manager Grant Yates has served the City of Lake Elsinore since November 2012. On
December 29, 2020, Mr. Yates announced his retirement effective the end of February 2021.
On January 12, 2021, the City Council met in Closed Session to discuss the City Manager
position and next steps in terms of a transition/succession plan. At the conclusion of the Closed
Session, the City Council unanimously appointed Assistant City Manager Jason Simpson to
serve as the new City Manager and directed the City Attorney to prepare an Employment
Agreement. Mr. Simpson joined the City of Lake Elsinore management team on February 3,
2014 and was subsequently promoted to Assistant City Manager.
Discussion
The proposed Employment Agreement is attached for the City Council’s consideration. The
proposed Employment Agreement has been reviewed by the City Council subcommittee
comprised of Mayor Magee and Mayor Pro Tem Sheridan and has been reviewed and
approved by Mr. Simpson. Mr. Simpson’s term as City Manager will commence on February 27,
2021, providing for a smooth transition.
The major elements of the Agreement include:
Annual Salary: $240,000, with annual increase equal to CPI plus 1%, not to
exceed 6%, on condition that Mr. Simpson meets performance
expectations as determined by the City Council during the
City Manager’s performance review conducted annually
throughout the Term
Severance: 6 months
Term: 6 years
City Manager Employment Agreement
February 9, 2021
Page 2
Health Benefits: Employee shall receive benefits consistent with other City
employees hired as of February 3, 2014 (Mr. Simpson’s date of
hire)
PTO In lieu of vacation, sick and administrative leave, Employee
entitled to 48 days/year Paid Time Off, not to exceed total PTO
accrual of 96 days
Retirement/
PERS Plan: City will deposit $1,200 monthly into a qualified Employee
Deferred Compensation Plan, such as a 457 deferred
compensation plan, 401a deferred compensation plan or other
qualified retirement plan, subject to the provisions of the Internal
Revenue Code and related regulations as amended from time to
time.
2% at age 60. Employee pays 7% contribution and pays
employee share of Social Security
Fiscal Impact
The salary and benefit costs are included in the current budget.
Attachments
Exhibit A – Resolution
Exhibit B – Employment Agreement
RESOLUTION NO. 2021-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE, CALIFORNIA CONFIRMING THE
APPOINTMENT OF JASON SIMPSON AS CITY
MANAGER AND APPROVING AN EMPLOYMENT
AGREEMENT
WHEREAS, Chapter 2.04 of the Lake Elsinore Municipal Code provides that the
City Manager shall be appointed by the City Council and shall hold office at the pleasure
of the City Council.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council hereby confirms the appointment of Jason
Simpson as City Manager, effective February 27, 2021, at such compensation and upon
the terms and conditions as provided in the Employment Agreement referenced in
Section 2 herein.
SECTION 2. The City Council hereby approves that certain Employment
Agreement by and between Jason Simpson and the City of Lake Elsinore. The Mayor
is hereby authorized to execute the Employment Agreement in the form presented
hereto, with such minor revisions as may be approved by the City Attorney.
SECTION 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED this 9th day of February, 2021.
____________________________________
Robert E. Magee, Mayor
City of Lake Elsinore City Council
ATTEST:
______________________________
Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:
_____________________________
Barbara Leibold, City Attorney
CITY COUNCIL RESOLUTION NO. 2012-__
PAGE 2 OF 2
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE
}SS
I, VIRGINIA BLOOM, City Clerk of the City of Lake Elsinore, California, hereby
certify that Resolution No. 2012-___ was adopted by the City Council of the City of Lake
Elsinore at a regular meeting held on the 13th day of November 2012, and that the
same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Virginia Bloom
City Clerk
City Manager Employment Agreement.Simpson.020421.doc
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EMPLOYMENT AGREEMENT
This Employment Agreement (“Agreement) dated for identification purposes only as
of February 9, 2021 is entered into by and between the City of Lake Elsinore, a California
municipal corporation (“Employer”) and Jason Simpson (“Employee”). This Agreement
shall be effective as of February 27, 2021 (“Effective Date”).
RECITALS
A. Prior to the Effective Date, Employee served as Assistant City Manager and
Director of Administrative Services. Employee’s original date of hire was February 3, 2014.
B. Employer desires to employ the services of Employee as City Manager of the
City of Lake Elsinore. For purposes of this Agreement, references to “City Manager” shall
be deemed to include the positions and duties of the City Manager as Executive Director of
the Successor Agency and the Successor Housing Agency of the Redevelopment Agency
of the City of Lake Elsinore, the Lake Elsinore Public Finance Authority, the Lake Elsinore
Recreation Authority, the Lake Elsinore Facilities Financing Authority and the Lake Elsinore
Parking Authority.
C. It is the desire of the City Council of the City of Lake Elsinore (“City Council”)
acting as the legislative body of Employer to (1) secure and retain the services of
Employee, and (2) memorialize the salary, benefits, and terms and conditions of
employment and to set working conditions of Employee herein.
D. Employee has the education, training and experience in local government
management necessary to fulfill the duties of City Manager and desires to accept the City
Council’s appointment as City Manager of the City of Lake Elsinore.
AGREEMENT
1. Duties
During the Term (as hereinafter defined), Employee shall perform (a) the duties of
City Manager, as such duties are prescribed by the laws of the State of California and Lake
Elsinore Municipal Code Chapter 2.04, as the same now exists or as it may be amended
subsequently, and all ordinances, resolutions and policies adopted pursuant thereto; and
(b) such other duties as the City Council may lawfully assign to Employee.
2. Term
a. The term of this Agreement (“Term”) shall commence on the Effective Date
and shall expire February 26, 2027 unless earlier terminated as provided by Section 8 or
Section 9 of this Agreement or extended by a subsequent writing executed by Employer
and Employee. For purposes of this Agreement, a “year” is the twelve-month period
commencing February 27 and ending February 26 throughout the Term.
b. Employee shall remain in the exclusive employ of Employer throughout the
Term. The term “exclusive employ” shall not be construed to include occasional teaching
or writing performed in accordance with Section 6 of this Agreement during Employee’s
personal time so long as such activities do not interfere with the effective performance of
Employee’s duties as City Manager.
City Manager Employment Agreement.Simpson.020421.doc
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c. At the request of either party, the City Council and Employee shall meet and
confer to discuss the extension of the Term at least six (6) months prior to February 26,
2027 or such later expiration date in the event the Term is hereafter extended.
3. Salary
a. Employer agrees to pay Employee for his services in the capacity of City
Manager an annual salary of $240,000, which shall be paid in the same manner and at the
same time in accordance with the City’s established payroll program or the payment of City
employee salaries. Employee’s salary shall be subject to customary withholding for taxes,
social security and other required deductions.
b. Upon the condition that Employee meets performance expectations as
determined by the City Council during Employee’s February 2022 performance review and
in each successive annual performance review conducted by the City Council during the
Term as provided in Section 7, Employee shall receive a cost of living salary increase equal
to the percentage increase in the cost of living for the most recently published prior twelve
month period as shown by the U.S. Department of Labor in its All Urban Consumer Index
for the Riverside Area, plus 1%. Notwithstanding the foregoing, no annual salary increase
shall exceed 6%.
4. Benefits
Except as specifically provided otherwise herein, and in addition to the salary set
forth in Section 3, Employee shall receive benefits consistent with other City employees
hired as of February 3, 2014 as follows:
a. Employer shall deposit $1,200 monthly into a qualified Employee Deferred
Compensation Plan, such as a Section 457 deferred compensation plan, Section 401a
deferred compensation plan or other qualified retirement plan, subject to the provisions of
the Internal Revenue Code and related regulations as amended from time to time.
b. Employer shall purchase, for Employee’s benefit, term life insurance coverage
of $270,000. Employer shall also provide worker’s compensation insurance and long-term
disability insurance coverage commensurate with the policy terms provided to full-time City
Department Directors.
c. Employee shall receive 12 fixed holidays and one personal paid holiday
commensurate with paid holidays for full-time City employees. In addition, in lieu of
vacation, sick and administrative leave, Employee shall be entitled to 48 days per year paid
time off (“PTO”). PTO shall be granted to Employee commencing on the Effective Date and
each anniversary thereof throughout the Term; provided, however the maximum amount of
accrued PTO at any time during the Term shall not exceed 96 days. If Employee receives
fewer than 48 days PTO on any anniversary of the Effective Date because of the maximum
accrual of 96 days, Employee shall be entitled to receive the unallocated PTO at any time
during the year up to the aggregate of 48 days so long as the total accrued PTO does not
exceed 96 days. Employee shall have the option each year throughout the Term to cash
out up to 160 hours of accrued PTO and may further elect to roll the cash equivalent into a
qualified Section 457 deferred compensation plan, Section 401a deferred compensation
plan or other qualified retirement plan subject to the provisions and limitations of the
Internal Revenue Code and related regulations as amended from time to time. No PTO
City Manager Employment Agreement.Simpson.020421.doc
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shall accrue after the date of dismissal and during the severance payout period as provided
in Section 8.
d. Employee shall be paid for any mandatory jury duty service.
e. Employer contracts with the California Public Employee’s Retirement System
(PERS) for retirement benefits. Employer will pay only the City’s portion and Employee
shall pay the employee’s portion equal to 7% of Employee’s salary for participation in
PERS. The PERS benefits shall be based upon a 2% at 60 formula. Retirement benefits
shall be commensurate with all 2nd tier program City employees hired on or after July 1,
2011.
f. Employer shall provide Employee a full sized vehicle equipped with
emergency response equipment as deemed necessary and appropriate by Employer which
vehicle shall be leased or owned by Employer. Employer shall pay all liability, property
damage and comprehensive insurance coverage on the vehicle. The City also shall pay for
the purchase, operation (including fuels and lubricants), maintenance, and repair of the
vehicle. Employee may use the vehicle provided by Employer for both business and
personal use; provided, however, that personal use shall be deemed taxable
income/compensation. Employee shall maintain accurate records of all personal use, if
any, of the vehicle and shall pay all applicable income taxes thereon.
g. Employer shall bear the full cost of any fidelity or other bonds required of the
Employee under any law or ordinance.
h. Employer shall provide Employee a $40 per month allowance for use of his
own cell phone for City related business.
5. 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; provided, however, that Employee shall
be available as often and for as much time as the position of City Manager requires.
Employer recognizes that Employee generally works a 9/80 work schedule and that, for
purposes of this Agreement, a “day” is 9 hours.
6. Outside Activities
Employee shall not spend more than five (5) hours per week, unless on approved
PTO, for purposes of teaching, counseling or other non-Employer connected business
without the prior approval of the City Council.
7. Performance Evaluation
Employer and Employee agree that periodic performance evaluations are an
important means by which the City Council and Employee may ensure effective
communications regarding expectations and performance. During the first year of the
Term, Employer shall evaluate the performance of Employee in August 2021 and February
2022. Thereafter, Employer shall annually review the performance of the Employee every
February; provided, however, a mid-term performance evaluation shall be conducted upon
the request of either party. The performance evaluation shall be subject to a process, form,
City Manager Employment Agreement.Simpson.020421.doc
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criteria, and format for the evaluation that shall be mutually agreed upon by the Employer
and Employee. The process at a minimum shall include the opportunity for both parties to
meet and discuss the performance of Employee and to establish goals, objectives and/or
performance standards as appropriate. Within 15 days of the evaluation meeting, Employer
shall provide Employee a written summary of the performance evaluation.
8. Termination or Removal by Employer
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
Employer to terminate or remove the Employee as City Manager at any time, subject to the
provisions set forth herein.
a. Without Cause. Employee is an at-will employee serving at the pleasure of
the City Council as provided in Section 36506 of the California Government Code and the
Section 2.04.010 of the Lake Elsinore Municipal Code. The City Council may at any time
during the Term dismiss or discharge Employee without cause upon notice delivered in
writing. In the event Employee is so terminated prior to the expiration of the Term,
Employer shall provide severance pay equal to the lesser of (i) six months’ salary and
accrued PTO at the then current rate of pay, or (ii) salary based on the number of months
remaining in the Term and accrued PTO at the then current rate of pay. Severance pay
shall be paid in installments during each payroll period in amounts equal to Employee’s
salary together with the benefits owing under Section 4.a. and 4.e. The parties
acknowledge and agree that Employee shall not be entitled to any severance payment for
benefits set forth in Section 4.b., 4.c., 4.d., or 4.f. through 4.h. nor shall Employee accrue
any additional PTO after the date of dismissal and during the severance payout period.
Notwithstanding the foregoing, Employee can request, at any time during the severance
payout period, to receive a lump sum for any remaining severance pay due under this
Agreement and cessation of all benefits set forth in Section 4.
b. With Cause. The City Council may at any time during the Term discharge or
dismiss Employee for cause which for purposes of this Agreement shall be defined as
follows:
(1) Employee has been convicted of any criminal offense involving moral
turpitude or any felony. The word “convicted” shall be construed to mean convicted in any
manner referred to in Section 689 of the California Penal Code. The words “moral
turpitude” shall be construed to mean any act done contrary to justice, honesty, modesty, or
good morals or any willful or corrupt misconduct or deception for personal gain.
(2) Employee through negligence or willful misconduct has caused damage to
public property or waste of public supplies.
(3) Employee has committed intentional or grossly negligent acts or inaction
that materially and substantially impedes or disrupts the operations of the City or its
organizational units, is detrimental to employee or public safety, or brings scandal or
disrepute to the City.
(4) Employee violates Employer’s properly established rules or procedures or
is otherwise insubordinate which shall mean the willful refusal to obey lawful directions of
the City Council or appear before the City Council, grand jury, court or other authorized
City Manager Employment Agreement.Simpson.020421.doc
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office or tribunal on any subject relating to the conduct of official business of the Employer
or any department, board or commission thereof.
(5) Employee has been willfully and intentionally absent without PTO or has
willfully and intentionally failed to report after PTO has expired.
(6) Employee suffers permanent or chronic disability that incapacitates him
from proper performance of his duties.
Promptly after the effective date of such involuntary termination for cause,
Employer shall pay Employee a lump sum amount equal to salary owing as of the effective
date of the involuntary termination and accrued PTO. No severance pay shall be due or
payable in the event of such involuntary termination for cause.
c. Subject to the applicable provisions of Government Code Section 54957, the
decision to terminate or not renew this Agreement shall be made in closed session and
confirmed by vote of the City Council in a public meeting. In recognition of Employee’s
professional status and integrity, Employee and the City Council shall prepare a joint public
statement to be made by the City Council at the public meeting when termination is
confirmed.
d. Employee may choose to resign his office instead of being terminated if a
decision by the City Council to terminate has been made in closed session. In such an
event, the public announcement as provided for in Section 8.c, will state that Employee has
resigned. If Employee resigns pursuant hereto following a closed session determination by
the City Council to dismiss Employee without cause, Employee shall be entitled to
severance pay in accordance with the provisions of Section 8.a.
9. Termination or Resignation by Employee
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
the Employee to resign at any time from his position as City Manager subject only to the
provisions set forth herein. Unless otherwise agreed to by the parties, in the event
Employee desires to voluntarily resign his position with Employer as City Manager before
expiration of the Term, Employee shall give Employer not less than three months advance
written notice. Promptly after the effective date of such resignation, Employer shall pay
Employee a lump sum amount equal to salary owing as of the effective date of the
resignation and accrued PTO. Except as provided in Section 8.d, no severance pay shall
be due or payable in the event of voluntary resignation by Employee pursuant to this
Section 9.
10. Disability
If Employee is permanently disabled or is otherwise unable to perform his duties
because of sickness, accident, injury, mental incapacity or health for a period of four
successive weeks or for twenty working days over a thirty working day period, Employer
shall have the option to terminate this Agreement in accordance with Section 8.
11. Professional Organizations
Employer agrees to annually budget and allocate funds to pay for the professional
dues and subscriptions of Employee necessary for his continuation and full participation in
City Manager Employment Agreement.Simpson.020421.doc
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national regional, state and local associations and organizations necessary and desirable
for his continued professional participation, growth and advancement, and for the good of
the Employer.
12. Other Business Expense
Subject to all current and future City policies governing per diem and other business
expenses, Employer shall reimburse the Employee for all other actual and necessary
employment-related expenses including, but not limited to, travel, taxi and auto rental,
lodging, meals, memberships and subscriptions to the publications of professional
organizations, registration fees for training programs offered by such organizations, and
incidental costs relating to attendance at such programs or the conferences and meetings
of such organizations. Subject to the Lake Elsinore Municipal Code and the City’s annual
budget allocations, Employee shall undertake such activities at his option and such
activities shall be considered as part of the Employee’s duties. The Employee shall be
reimbursed for additional expenses only as the Employer shall approve by motion passed
by the City Council.
13. Indemnification
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 performance of
Employee’s duties as City Manager. Employer will compromise and settle any such claim or
suit and pay the amount of any settlement or judgment rendered thereon. Notwithstanding
the foregoing, Employer shall have no duty to indemnify, defend or hold Employee
harmless from any criminal proceeding, or with regard to any civil, criminal or administrative
proceeding initiated by him.
14. Other Terms and Conditions of Employment
The City Council shall fix any such other terms and conditions of employment, as it
may determine from time to time, relating to the performance of Employee, provided such
terms and conditions are not inconsistent with or in conflict with the provisions of this
Agreement, the Lake Elsinore Municipal Code or any applicable law. Unless otherwise
specified herein, Employee shall be entitled to benefits granted to Employees covered by
the City’s general compensation plan for all unclassified and various classified employees.
15. Conflict of Interest
Employee shall not engage in any business or transaction, or have a financial or
other personal interest or association, direct or indirect, that is in conflict with the proper
discharge of his official duties or that would tend to impair the independence of his
judgment or action in the performance of his official duties. Employee acknowledges that
he is subject to applicable state and local conflict of interest laws, regulations and
disclosures.
16. Assignment; Personal Contract
Employer and Employee acknowledge that this Agreement is for the personal and
professional services of the City Manager and that this Agreement is not assignable by
either party.
City Manager Employment Agreement.Simpson.020421.doc
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17. Notices
Any notice given under this Agreement shall be in writing and either served
personally or sent prepaid, first class mail. Any such notice shall be addressed to the other
party at the address set forth below. Notice shall be deemed delivered immediately upon
personal service or within 48 hours from the time of mailing if mailed as provided in this
Section 17.
If to Employer: City of Lake Elsinore
Attn: City Attorney
130 South Main Street
Lake Elsinore, CA 92530
If to Employee: Mr. Jason Simpson
130 South Main Street
Lake Elsinore, CA 92530
18. Municipal Code
The provisions of Chapter 2.04 of the Lake Elsinore Municipal Code as now exists or
as may be subsequently amended are incorporated by reference into this Agreement.
19. Amendments or Extensions
This Agreement may be modified, amended or extended only by a written document
executed by both Employee and Employer and approved as to form by the City Attorney.
20. Waiver
Waiver of a breach or default under this Agreement shall not constitute a continuing
waiver of a subsequent breach of the same or any other provision under this Agreement.
21. Severability
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
22. Controlling Law Venue
This Agreement and all matters relating to it shall be governed by the laws of the
State of California and any action brought relating to this Agreement shall, to the extent
allowed by law, be held exclusively in a state court in the County of Riverside.
23. Mediation
The parties agree to make a good faith attempt to resolve any disputes arising out of
this Agreement through mediation prior to commencing litigation. The parties shall mutually
agree upon the mediator and share the costs of mediation equally. It the parties are unable
to agree upon a mediator, the dispute shall be submitted to JAMS/ENDISPUTE (“JAMS”) or
its successor in interest. JAMS shall provide the parties with the names of five qualified
mediators. Each party shall have the option to strike two of the five mediators selected by
JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains
unresolved after mediation, either party may commence litigation.
City Manager Employment Agreement.Simpson.020421.doc
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24. Execution
This Agreement may be executed in several counterparts, each of which shall
constitute one and the same instrument and shall become binding upon the parties when
both parties hereof shall have signed at least one copy hereto. In approving this
Agreement, it shall not be necessary to produce or account for more than one such
counterpart.
25. Authority to Enter Agreement
Each party warrants that the individuals who have signed this Agreement have the
legal power, right, and authority to make this Agreement and to bind each respective party.
26. Representation by Counsel
Employee acknowledges that this Agreement has been prepared by Leibold
McClendon & Mann, P.C., as City Attorney for the Employer. Employee acknowledges that
he has been informed that he is entitled to, and has been advised to seek, separate legal
representation, and, accordingly, represents that he either (i) has engaged such counsel in
connection with this Agreement, or (ii) has voluntarily decided to enter into this Agreement
without such representation.
27. Entire Agreement
This Agreement constitutes the complete and exclusive statement of Agreement
between the Employer and Employee. All prior written and oral communications, including
correspondence, drafts, memoranda, and representations, are superseded in total by this
Agreement.
IN WITNESS WHEREOF the parties have caused this Agreement executed on the
date first written above.
CITY OF LAKE ELSINORE: EMPLOYEE:
___________________________ ________________________
Robert E. Magee, Mayor Jason Simpson, City Manager
ATTEST:
____________________________
Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:
___________________________
Barbara Z. Leibold, City Attorney