HomeMy WebLinkAbout2021-018 City Manager Employment Agreement - Jason Simpson
RESOLUTION NO. 2021-18
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA CONFIRMING THE APPOINTMENT OF JASON SIMPSONAS
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 officeat 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 Simpsonas City
Manager, effective February 27, 2021,at such compensation and upon the terms and conditions
as provided in the Employment Agreement referenced in Section 2herein.
SECTION 2.The City Council hereby approves that certain Employment Agreement by
and between Jason Simpsonand the City of Lake Elsinore.The Mayor is hereby authorized to
execute the Employment Agreement attachedheretoas “Exhibit A,”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 and Adoptedat a regular meeting of the City Council of the City of Lake Elsinore,
th
California, this 9day of February2021.
Robert E. Magee
Mayor
Attest:
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2021-18
Page 2of 2
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss.
CITY OF LAKE ELSINORE)
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2021-18was adopted by the City Council of the City of Lake Elsinore, California,
at the Regular meeting of February 9, 2021 and that the same was adopted by the following vote:
AYES:Council Members Tisdale, Johnson, and Manos; Mayor Pro Tem Sheridan; and
Mayor Magee
NOES:None
ABSENT:None
ABSTAIN:None
Candice Alvarez, MMC
City Clerk
EMPLOYMENT AGREEMENT
This Employment Agreement(“Agreement)dated for identificationpurposes only as
of February 9, 2021is entered into by and betweenthe 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, Employeeserved as AssistantCity Manager and
Director of Administrative Services. Employee’s original dateof hire was February 3,2014.
B.Employer desires to employ the services of Employeeas City Manager of the
Cityof Lake Elsinore.For purposes of this Agreement, references to “City Manager” shall
be deemed to include the positions and duties ofthe City Manager as Executive Directorof
the Successor Agencyandthe 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 Authorityand the Lake Elsinore
Parking Authority.
C.It is the desire of the City Council ofthe City of Lake Elsinore (“City Council”)
acting as the legislative body of Employerto (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 Employeeherein.
D.Employee has the education, training and experience in local government
management necessary to fulfill the duties of City Manager anddesires to acceptthe City
Council’s appointment as City Manager of the City of Lake Elsinore.
AGREEMENT
1.Duties
During the Term(as hereinafterdefined),Employee shall perform (a) the duties of
City Manager, assuchduties are prescribed by the laws of theState of California and Lake
Elsinore Municipal CodeChapter 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
andshall expire February 26, 2027unless earlier terminated as provided by Section 8 or
Section 9 of thisAgreement or extended by a subsequent writing executed by Employer
and Employee.For purposes of this Agreement, a “year”isthe twelve-month period
commencing February 27 and ending February 26throughout 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 writingperformed in accordance with Section 6of thisAgreement during Employee’s
personal time so long as such activities do not interfere with the effective performance of
Employee’s duties as City Manager.
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c.At the request of either party, the City Counciland Employee shall meet and
confer to discuss the extension of the Term at least six(6)months prior to February 26,
2027or 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 besubjectto customary withholding for taxes,
social security and other required deductions.
b.Upon the condition that Employee meets performance expectations as
determined bythe City Council duringEmployee’sFebruary2022 performance reviewand
in each successive annual performancereview conducted by the City Council during the
Term as provided in Section 7, Employeeshall receivea cost of living salaryincrease equal
to the percentage increase inthe cost of living for the most recently publishedprior twelve
month period as shownby the U.S. Department of Laborin its All Urban ConsumerIndex
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 intoaqualified EmployeeDeferred
Compensation Plan, such as a Section 457 deferred compensation plan, Section 401a
deferred compensation plan or other qualified retirementplan,subject to the provisions of
the Internal Revenue Code and related regulations as amended from time to time.
b.Employershall 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 PTOat 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
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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 equalto 7% of Employee’s salary for participation in
PERS.The PERS benefits shall be based upon a 2% at 60 formula. Retirementbenefits
shall be commensurate with all 2nd tier program City employeeshired on or after July 1,
2011.
f.Employer shall provide Employee a full sized vehicleequipped 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 shallpay for
the purchase, operation (including fuelsand lubricants), maintenance, and repair of the
vehicle.Employee may use the vehicle provided by Employerfor 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 taxesthereon.
g.Employer shall bear the full cost ofany fidelity or other bonds required of the
Employee under any law or ordinance.
h.Employer shall provide Employee a $40 per month allowance foruse 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 establishan appropriate work schedule; provided,however, that Employee shall
be available as often and for as much timeas the position of City Manager requires.
Employer recognizes that Employee generally works a 9/80 work scheduleand 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 theCityCouncil.
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 yearofthe
Term, Employer shall evaluate the performance of Employee in August 2021and February
2022.Thereafter, Employer shall annually review the performance of the Employee every
February;provided,however,amid-term performance evaluationshall be conducted upon
the request of either party. The performance evaluationshallbesubject to a process, form,
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criteria, and format for the evaluation thatshall be mutually agreed upon bythe 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 theEmployee asCityManagerat any time, subjectto 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
Section2.04.010 ofthe Lake Elsinore Municipal Code. The City Council may at anytime
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 provideseverance pay equal to the lesser of (i) six months’ salaryand
accrued PTO at the then current rate of pay,or (ii) salary based on the number of months
remaining in the Termand accrued PTOat the then current rate of pay.Severance pay
shall be paid in installments during each payroll period in amounts equalto Employee’s
salary together with the benefitsowing under Section 4.a. and4.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.through4.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 sumfor any remaining severance paydue under this
Agreementand 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 ofany criminal offense involving moral
turpitudeor any felony. The word “convicted” shall be construed to mean convicted in any
manner referred to inSection 689of the California Penal Code. The words “moral
turpitude” shallbe 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 propertyor 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 Cityor its
organizational units, is detrimental to employee or public safety, orbringsscandal or
disrepute to the City.
(4) Employee violates Employer’s properly established rules or procedures or
is otherwise insubordinatewhich shall mean the willful refusal to obey lawful directions of
the City Councilor appear before theCity Council, grand jury, court or other authorized
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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 commissionthereof.
(5)Employee has been willfully andintentionally absent without PTOor has
willfully and intentionally failed to report after PTOhas 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 shallbe 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 chooseto resign his office instead ofbeing 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 Employeeresigns pursuant hereto following a closedsession 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 orResignation by Employee
Nothing in this Agreement shall prevent, limitor 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 afterthe 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 voluntaryresignation by Employeepursuant tothis
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 athirty working day period, Employer
shall havethe option to terminate this Agreementin 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 hiscontinuation and fullparticipation in
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national regional, state and local associations and organizations necessary anddesirable
for his continued professional participation, growth and advancement, and for the good of
the Employer.
12.Other Business Expense
Subject toall 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 limitedto, 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 attendanceat such programs orthe conferences and meetings
ofsuch organizations. Subject to the Lake Elsinore Municipal Code and the City’sannual
budgetallocations, Employee shall undertake such activities at his option and such
activities shall be considered as part ofthe Employee’s duties. The Employee shallbe
reimbursed foradditional expenses only as the Employershall approve by motionpassed
by theCity 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
suitand pay the amount of any settlement or judgment rendered thereon.Notwithstanding
the foregoing, Employer shall have no duty to indemnify, defend or hold Employee
harmlessfrom 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 andconditions are not inconsistent with or in conflict withthe 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’sgeneral compensation plan for all unclassifiedand 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, thatis in conflict with the proper
dischargeof 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 personaland
professionalservices of the City Manager and that this Agreement is not assignable by
either party.
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17.Notices
Any notice given under this Agreement shallbe 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. Noticeshall be deemed deliveredimmediately upon
personal service or within 48 hoursfrom the time of mailingif mailed as provided in this
Section17.
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 Chapter2.04 of the Lake Elsinore Municipal Code as now existsor
as may be subsequently amended are incorporated by reference into this Agreement.
19.Amendmentsor Extensions
This Agreementmay be modified,amended or extended only by a written document
executed by both Employeeand Employerand approved as to form by the City Attorney.
20.Waiver
Waiver of a breach or default under this Agreementshall not constitute a continuing
waiver ofa subsequent breach of the sameor any other provision under this Agreement.
21.Severability
If any term or portion of this Agreementis held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction,the remaining provisions ofthis
Agreementshall continue in full forceand effect.
22.Controlling Law Venue
This Agreementand all matters relating to it shall be governed by the laws of the
State of California and any action brought relating to this Agreementshall, to the extent
allowed by law,be held exclusivelyin a statecourtin the County of Riverside.
23.Mediation
The parties agree to make a good faith attempt to resolve any disputes arising out of
this Agreementthrough mediation prior to commencing litigation. The parties shall mutually
agree upon the mediator and sharethe 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 shallprovide 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.
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24.Execution
This Agreementmay 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 copyhereto.In approving this
Agreement, itshall 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 Agreementhave the
legal power, right, andauthority to make this Agreementand 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
hehas been informed that he is entitled to,and has been advised to seek, separate legal
representation, and, accordingly, represents thatheeither (i) has engaged such counsel in
connection with this Agreement, or (ii) has voluntarily decided to enter intothis 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 Agreementexecuted on the
date first written above.
CITY OF LAKE ELSINORE: EMPLOYEE:
___________________________________________________
Robert E. Magee,MayorJason Simpson,City Manager
ATTEST:
____________________________
Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:
___________________________
Barbara Z. Leibold, City Attorney
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