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SR-021208-1J~~~ c;cyo, City Council Report Santa Monica City Council Meeting: February 12, 2008 Agenda Item: 1'-S To: Mayor and City Council From: Karen Bancroft, Director of Human Resources Subject: Employment Agreement with Assistant City Attorney Joseph Lawrence Recommended Action This report requests that Council authorize the City Attorney to execute an employment agreement with the Assistant City Attorney, Joseph Lawrence. Executive Summary The Assistant City Attorney is currently listed as a participant of the Executive Pay Plan. The attached employment agreement sets forth the terms and conditions of employment of the Assistant City Attorney, as were previously provided to him under the Executive Pay Plan, retroactively, to FY2005-2006, establishes a five percent (5.0%) differential between the base salary of the Assistant City Attorney and the top salary step established for Deputy Attorney III and, retroactively, to FY2005-2006, corrects an error that was made in the calculation of the Assistant City Attorney's compensation. The retroactive compensation from the beginning of FY2005-2006 is approximately $60,000. The increase in the Assistant City Attorney's total compensation for the remainder of FY2007-2008 is approximately $14,000. Discussion The position of Assistant City Attorney is in the unclassified service and serves at the pleasure of the City Attorney. The establishment of a separate employment agreement rather than having the Assistant City Attorney listed as a participant of the Executive Pay Plan is therefore appropriate. The separate employment agreement is retroactive to the beginning of FY2005-2006 and sets forth the compensation and other benefits and privileges of employment. Under the terms of the employment agreement, the Assistant City Attorney will continue to have the benefits and privileges as set forth in the Executive Pay Plan Resolution, as it may be amended from time to time. The employment agreement also contains a severance pay provision should the City Attorney terminate the Assistant City Attorney's employment with the City as long as the 1 termination is not the result of willful misconduct or conviction of a crime involving moral turpitude. Financial Impacts & Budget Actions The total cost of the employment agreement for FY2007-2008 is approximately $74,000. Provision has been made in the FY2007-2008 budget to accommodate this expenditure and no appropriation is necessary. Prepared by: Karen Bancroft, Director of Human Resources Approved: Director, Human (Re~'ources Forwarded to Council: ~~/~/^ mont Ewell ,_, ity Manager 2 EMPLOYMENT AGREEMENT This Employment Agreement ("Agreement"), retroactive to FY2005-2006, by and between the CITY OF SANTA MONICA ("City") and JOSEPH LAWRENCE ("Employee'), is made with reference to the following: RECITALS A. The position of Assistant City Attorney is in the unclassified service and serves at the pleasure of the City Attorney. B. Prior to Fiscal Year 2005-2006, the Employee's compensation and benefits and privileges of employment were set forth in the Executive Pay Plan as amended from time to time by Resolutions adopted by City Council. C. Retroactive to the beginning of Fiscal Year 2005-2006, the Employee's compensation and other benefits and privileges of employment shall be as set forth in this Agreement with the City. NOW, THEREFORE, City and Employee agree as follows: 1. Wages. Retroactive to the beginning of Fiscal Year 2005-2006, the salary of the Employee shall be set at a level that provides a five percent (5%) differential between the Employee's base salary and that established for a Deputy Attorney III salary step 5 pursuant to the Memorandum of Understanding (MOU) between the City and the Public Attorneys Union (PAU). An additional six hundred-twenty five dollars ($625) per month shall then be included and added to this amount to establish the Employee's base salary. In addition, the employee shall receive the same supervisor's bonus payment that an employee assigned as Chief Deputy of a division pursuant to the MOU between the City and PAU is eligible to receive. Starting as 1 of Fiscal Year 2006-2007, the employee's base salary shall be automatically adjusted in the same percentage as any cost of living adjustments granted to employees covered by the MOU between the City and PAU. In addition, as of January 1, 2007, the Employee shall also receive a pay increase of $400 per month as provided pursuant to the MOU between the City and the PAU. Any cash-out(s) and other similar payments (included but not limited to payments for accrued sick leave and management incentive pay) Employee received in accordance with the benefits and privileges of employment as set forth in the Executive Pay Plan between July 1, 2005 and the execution of this Agreement shall be adjusted and paid to Employee to conform to the terms of this Agreement. All retroactive payments provided for in this Section shall be paid to Employee within ten (10) days of approval of the Agreement by the City Council. Employee's prospective compensation shall be set to conform to the terms of this Agreement upon the approval of the Agreement by City Council. 2. Benefits. Except for wages, which shall be as described in Subsection 1 of this contract, the Employee shall have the benefits and privileges of employment as set forth in the Executive Pay Plan Resolution, as it may be amended from time to time including but not limited to any payments made by the City that may occur for deferred compensation, performance, management leave or other purposes. In the event a "benefit" provided by the Executive Pay Plan Resolution is rolled into the base pay of, or otherwise paid to, participants in the Executive Pay Plan (EPP), that benefit will also be rolled into the base pay of the Employee, either as a flat dollar amount or a percentage of pay, whichever conforms with what was done for the EPP participants, not withstanding the terms of Section 1 above. 2 3. Severance Pav. The City shall pay the Employee severance pay in an amount equal to six (6) months of the Employee's base monthly salary and supervisor's bonus upon his termination by the City. This severance pay shall be in addition to all accrued leave and other compensation that is subject to cash-out upon separation from City service. For the purposes of this Section, "termination by the City" means action by the City Attorney to terminate the Employee's employment with the City. Severance pay required to be paid by this Section shall be paid within ten (10) calendar days of termination by the City. Severance pay shall not be required pursuant to this Section if the termination of the Employee was the result of willful misconduct or conviction of a crime involving moral turpitude. 4. Duration of Agreement. This Agreement shall be retroactive to the beginning of FY2005- 2006 and shall continue in full force and effect until modified by the City Attorney and Employee in writing, or until such time as Employee's employment with. the City terminates. Upon the termination of Employee's employment, he shall be paid all accrued benefits that are subject to cash-out per State law or the terms of the Executive Pay Plan in effect at the time of separation. Except for termination as a result of willful misconduct or conviction of a crime involving moral turpitude, Employee upon separation from City employment shall receive any other benefits and privileges, including any retirement benefits and privileges, as are provided to a participant in the Executive Pay Plan who terminates employment with City. 3 IN WITNESS WHEREOF, this Agreement was executed on the date and year first above written. DATED: DATED: EMPLOYEE: JOSEPH LAWRENCE CITY OF SANTA MONICA ~~ M SHA J ES M~TRIE CI YATTO NEY APPROVED AS TO FORM: MARSHA JONES MOUTRIE CITY ATTORNEY (Employment Agreement.Joe Lawrence.FY2005-2006) 4 Reference Contract No. 8890 (CCS).