HomeMy WebLinkAbout2010-143 - Employment Agreement - City AttorneyRESOLUTION NO. 2010 -143
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH
WHEREAS, the City Attorney, David R. Hunt, has been employed under an
Employment Agreement effective December 22, 2008 and ending by its terms on
December 21, 2010; and
WHEREAS, the City and Mr. Hunt have negotiated a new form of
Employment Agreement, which provides that the City Attorney's salary rate shall
be established by Resolution;
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: Effective as of December 22, 2010, the City Attorney will be paid at
the rate of an annual base salary of Two Hundred Twenty Thousand Dollars ($220,000).
Section 2: This Resolution shall take effect immediately upon its adoption by
the City Council, and the City Clerk shall certify the vote adopting the Resolution.
ADOPTED this 10 day of December, 2010.
Keith Curry, Mayor
ATTEST:
Leilani Brown,
City Clerk
Attachment: Exhibit A: David R. Hunt Employment Contract
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Exhibit A
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT ( "Agreement ") is made effective as of December
22, 2010 and is entered into by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and Charter City ( "Employer" or "City ") and DAVID R.
HUNT ( "Employee ") an individual, (sometimes collectively "the Parties ").
RECITALS
A. City is a municipal corporation duly organized and validly existing under the laws of
the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. Employee has been employed by City as City Attorney under an Employment
Agreement effective from December 22, 2008 through December 21, 2010 ('2008
Employment Agreement").
C. The Parties mutually agree that they intend that no break in service occur for
Employee as the 2008 Employment Agreement ends and this Agreement becomes
effective.
D. The Parties also mutually agree that this form of Agreement reflects the terms and
conditions under which the Parties intend and desire to continue Employee's
employment.
NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as
follows:
SECTION 1: Term and Notice of Non- Renewal
A. Unless sooner terminated, as provided in this Agreement, this Agreement shall
remain in full force and effect from December 22, 2010 ( "Effective Date"), to and
including December 31, 2011 (the "Initial Term ").
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B. If, on or before June 30, 2011, the City gives Employee a written Notice of Non-
Renewal, this Agreement and Employee's employment by the City shall conclude
upon expiration of the Initial Term, and Employee shall receive no Severance.
C. If no timely Notice of Non - Renewal is given by the City to Employee, and the
Agreement is not sooner terminated under provisions of this Agreement, then on
July 1, 2011 this Agreement shall be automatically extended for an indefinite
term, subject to termination as provided for in this Agreement.
D. Although the City denies that Non - Renewal of this Agreement, as provided in this
Section 1, would constitute circumstances necessitating provision to Employee of
what is popularly known as a "name- clearing" or "liberty interest' hearing, as
those terms are used in Lubev v. City and County of San Francisco, 98 Cal. App.
3d 340 (1979) and its progeny, the Parties agree that Employee hereby waives
any claim for, or right to, a "name- clearing" or "liberty interest" hearing upon,
around, after, or because of, Non - Renewal of this Agreement.
SECTION 2: Duties and Author!ty
Employer agrees to employ Employee as City Attorney to exercise the powers and
authority and to perform the functions and duties specified in the Newport Beach City
Charter, the Municipal Code and all relevant resolutions, rules, regulations, procedures,
applicable job description(s) and state codes, as they currently or may in the future
exist. Employee shall exercise such power and authority and perform such other
functions and duties, not inconsistent with this Agreement, as Employer, by its City
Council, may legally assign.
SECTION 3: Compensation and Performance Evaluation.
A. Effective December 22, 2010, Employer agrees to pay Employee at the rate of
an annual base salary of $220,000.00 (Two Hundred Twenty Thousand Dollars),
subject to deduction and withholding of any and all sums required for federal or
state income tax, social security tax and all other taxes, deductions or
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withholdings required by then current state, federal or local law, prorated and
paid on Employer's normal paydays for the City Manager, City Attorney, City
Clerk, and any Department Directors not covered by collective bargaining
agreements ( "Senior Management Employees "). Employer shall also deduct
sums Employee is obligated to pay because of participation in plans or programs
described in Section 4 of this Agreement. The annual base salary of Employee
shall be established by resolution of the City Council. This Agreement shall be
deemed amended whenever the City Council adopts a resolution changing the
base salary of Senior Management Employees or the manner (but not the
amount) by which Senior Management Employees are paid.
B. Employer, by the City Council, and Employee shall promptly set mutually- agreed
upon objectives for the Initial Term of this Agreement. Employer, by the City
Council, may elect to conduct an evaluation of Employee's performance at any
time or times during, or after, the period in which this Agreement remains in
effect.
C. Employee's compensation as discussed under this Section is not tied to the
compensation of any other City employee or group of City employees, except as
expressly provided in this Agreement.
SECTION 4: Employee Benefits
A. Benefit Balances Carried Over. Employee shall not have a break in his
employment service between the end of the 2008 Employment Agreement, and
this Agreement. All of Employee's accrued leave and other benefit balances
shall carry over, and his leave and benefit balances shall continue to accrue
under the terms of applicable City policies and this Agreement.
B. Flex Leave. Employee shall accumulate Flex Leave as provided in the City's Key
and Management Compensation Plan, Executive Management category
( "Compensation Plan "), at the current rate of 27 days (216 hours) per calendar
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year. His maximum accrual is limited to 1,000 hours. The right to sell back
accumulated Flex Leave shall be consistent with the Compensation Plan.
C. Administrative Leave. Employee shall be entitled to one hundred and twenty
(120) hours of administrative leave per calendar year. Administrative leave will
not accrue from calendar year to calendar year and must be used or lost at the
conclusion of each calendar year. Consistent with the Compensation Plan, there
is no right to sell back any accumulated Administrative Leave.
D. Additional Benefits. Employee shall receive the same health insurance and
retirement benefits, and be entitled to participate in plans and programs such as
short term and long term disability plans, life insurance plans, and deferred
compensation plans, as are available to non- public safety management
employees of the City, as provided in the Compensation Plan. This Agreement
shall be deemed amended as to these benefits, and these benefits only,
whenever the City Council adopts a resolution or takes action changing these
benefits under the Compensation Plan.
E. Annual Physical Exam. Employee may undergo an annual physical examination
and City shall reimburse Employee for the actual cost of the examination up to a
maximum of one thousand dollars ($1,000.00).
F. Automobile Allowance. Employee's duties require him to be available and
respond to demands of City business at all times and outside of regular business
hours, including weekends. Employer shall, therefore, pay to Employee $500 per
month as an automobile allowance so that Employee may respond to these
demands of City business.
SECTION 5: General Business Expenses
A. Employer recognizes that Employee may incur expenses of a non - personal, job
related nature that are reasonably necessary to Employee's service to Employer.
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Employer agrees to either pay such expenses in advance or to reimburse the
expenses, so long as the expenses are incurred and submitted according to
Employer's normal expense reimbursement procedures or such other procedure
as may be designated by the City Council. To be eligible for reimbursement, all
expenses must be supported by documentation meeting Employer's normal
requirements and must be submitted within time limits established by Employer.
B. Employee shall be entitled to attend a reasonable number of League of Cities
and other similar conferences refevant to the performance of his duties. City
shall pay Hunt's annual California Bar Association dues, membership in the
Orange County Bar Association and appropriate sections of that Association, and
the expenses of his satisfying his Mandatory Continuing Legal Education
( "MCLE ") obligations. It is not contemplated that out -of- Orange County travel will
be required for Employee to meet his MCLE obligations.
SECTION 6: At -Will Employment Relationship
A. Consistent with Article VI of the City Charter, Section 600, Employee is appointed
by, and serves at the pleasure of, the City Council. Nothing in this Agreement
shall prevent, limit or otherwise interfere with the right of Employer to terminate
this Agreement and the employment of Employee at any time, with or without
Cause, and with or without notice. Employer shall pay Employee for all services
through the Effective Date of termination and Employee shall have no right to any
additional compensation or payment, except as provided in Section 7, Severance
and Benefit Payoff at Termination, and General Release Agreement, below.
B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of Employee to resign from his employment with Employer, subject only to
Employee's providing forty -five (45) calendar days prior written notice to
Employer of the effective date of his resignation.
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SECTION 7: Severance and Benefit Payoff at Termination, and General Release
Agreement
A. If Employer terminates this Agreement (thereby terminating Employee's
Employment) without Cause, as determined by the affirmative votes of majority of
the members of the City Council, and if Employee signs, delivers to the City
Council, and does not revoke, the General Release Agreement in the form
attached hereto as Exhibit A, Employer shall pay and provide Employee
Severance as follows:
1. If termination is effective prior to June 30, 2011, Employer shall pay
Employee a lump sum Severance benefit equal to three (3) months of his
then applicable base salary, and shall provide three (3) months of medical
benefits as provided under the Compensation plan beginning on the
Effective Date of termination.
2. If termination is effective after a Notice of Non - Renewal has issued from
the City to Employee, but prior to December 31, 2011, Employer shall pay
and provide Employee a lump sum Severance benefit equal to the lesser
of: (a) three (3) months of his then applicable base salary, and three (3)
months of medical benefits as provided under the Compensation Plan
beginning on the Effective Date of termination; or (b) the then remaining
base salary on the Initial Term and medical benefits through the end of the
Initial Term as provided under the Compensation Plan beginning on the
Effective Date of Termination.
3. If termination is effective on or after July 1, 2011, and no Notice of Non-
Renewal has timely issued from the City to Employee, Employer shall pay
Employee a lump sum severance benefit equal to six (6) months of his
then applicable base salary, and shall provide six (6) months of medical
benefits as provided under the. Compensation. Plan beginning on the
Effective Date of termination.
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B. If Employer terminates this Agreement (thereby terminating Employee's
Employment) with Cause, as determined by the affirmative votes of a majority of
the members of the City Council, Employee shall not be entitled to any additional
compensation or payment, including Severance. If the City Council intends to
terminate with Cause, based on a reason or reasons set forth in subpart 4 or 5,
immediately below, the Council shall first deliver to Employee a written Notice of
Intent to Terminate, stating the reason or reasons for the proposed termination,
and providing a thirty (30) day period for Employee to cure. If, in the City
Council's independent judgment, Employee cures the identified reason or
reasons for Cause termination, Employee shall not be terminated therefor. As
used in this Agreement, Cause shall mean any of the following:
I. Conviction of a felony;
2. Conviction of a misdemeanor arising out of Employee's duties under this
Agreement and involving a willful or intentional violation of law;
3. Willful abandonment of duties;
4. Repeated failure to carry out a directive or directives of the City Council
made by the City Council as a body; and
5. Any grossly negligent action or inaction by Employee that materially and
adversely: (a) impedes or disrupts the operations of Employer or its
organizational units; (b) is detrimental to employees or public safety; or (c)
violates properly established rules or procedures of Employer.
C. In no event may Employee be terminated within ninety (90) days after any
municipal election for the selection or recall of one or more of the members of the
City Council
D. If Employee terminates this Agreement (thereby terminating Employee's
employment), Employee shall not be entitled to any additional compensation or
payment, including Severance.
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E. Upon termination (regardless of reason), Employee shall be compensated for all
accrued but unused Flex Leave. No compensation shall be paid for any accrued
but unused administrative leave.
SECTION 8: Employee's Obligations and Hours of Work
Employee shall devote his full energies, interest, abilities and productive time to the
performance of this Agreement and utilize his best efforts to promote Employer's
interests. Employee's duties may involve expenditures of time in excess of the regularly
established workday or in excess of a forty (46) hour workweek and may also include
time outside normal office hours (including attendance at City Council meetings).
Employee's base salary includes compensation for all hours worked and Employee shall
be classified as an exempt employee for purposes of overtime and shall not be entitled
to any form of compensation for overtime. In recognition of the significant time
Employee will need to devote outside normal office hours to business activities of
Employer and the exempt, salaried nature of the employment, employee is permitted to
exercise a flexible work schedule. However, consistent with this flexibility and
Employee's participation in activities out of the office, Employee will generally be
expected to keep office hours at City Hall, Monday through Friday during normal
business hours.
SECTION 9: Confidentiality and Non- Disparagement
A. Employee acknowledges that in the course of his employment contemplated
herein, Employee will be given or will have access to confidential and proprietary
documents and information, relating to the City, its residents, businesses,
employees, and customers ( "Confidential Information "). Such Confidential
Information may include, but is not limited to, all information given to or otherwise
accessible to Employee that is not public information or would be exempt from
public disclosure as confidential, protected, exempt or privileged information.
Employee shall hold the Confidential Information in trust for City's benefit, and
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shall not disclose the Confidential Information to others without the express
written consent of City.
B. Except as otherwise required by law, in the event the City terminates Employee
with or without Cause, the City and Employee agree that no member of the City
Council, the city management staff, nor the Employee shall make any written,
oral, or electronic statement to any member of the public, the press, or any City
employee concerning the Employee's termination except in the form of a joint
press release or statement, which is mutually agreeable to City and Employee.
The joint press release or statement shall not contain any text or information that
is disparaging to either Party. Either Party may verbally repeat the substance of
the joint press release or statement in response to any inquiry.
C. The obligations of Employer and Employee under this Section 9 shall survive the
termination of this Agreement.
SECTION 10: Outside Activities
Employee shall not engage in any activity, consulting service or enterprise, for
compensation or otherwise, which is actually or potentially in conflict with or inimical to,
or which materially interferes with his duties and responsibilities to Employer.
SECTION 11: Indemnification
Consistent with the California Government Code, Employer shall defend and indemnify
Employee, using legal counsel of Employer's choosing, against expense or legal liability
for acts or omissions by Employee occurring within the course and scope of Employee's
employment under this Agreement. In the event there is a conflict of interest between
Employer and Employee in such a case so that independent counsel is required for
Employee, Employer may select the independent counsel after having considered the
input of Employee and shall pay the reasonable fees of such independent counsel
consistent with City litigation guidelines and standard rates received by City from its
chosen special counsel.
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SECTION 12: Other Terms and Conditions of Employment
Employer may fix 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 or
applicable law.
SECTION 13: Notices
Notice pursuant to this Agreement shall be given by depositing written notification in the
custody of the United States Postal Service, postage prepaid, addressed as follows:
(1) EMPLOYER:
City of Newport Beach
c/o City Clerk
3300 Newport Blvd.
PO Box 1768
Newport Beach, California 92658 -8915
(2) EMPLOYEE: David R. Hunt
at the home address then shown in Employer's files
Alternatively; notice required pursuant to this Agreement may be personally served in
the same manner as is applicable in civil judicial practice. Notice shall be deemed given
as of the date of personal service or as of the date of deposit of such written notice in
the course of transmission in the United States Postal Service as provided by law.
SECTION 14: General Provisions
A. Integration: This Agreement sets forth the final, complete and exclusive
agreement between Employer and Employee relating to the employment of
Employee by Employer. Any prior discussions or representations by or between
the. parties are merged into this Agreement or are otherwise rendered null and
void. 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. The foregoing notwithstanding,
Employee acknowledges that, except as expressly provided in this Agreement,
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his employment is subject to Employer's generally applicable rules and policies
pertaining to employment matters, such as those addressing equal employment
opportunity, sexual harassment and violence in the workplace, as they currently
or may in the future exist, and his employment is, and will continue to be, at the
will of the City Council.
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. Choice of Law: This Agreement shall be interpreted and construed pursuant to
and in accordance with the laws of the State of California and all applicable City
Charter provisions, Codes, Ordinances, Policies and Resolutions.
D. Severability: If any provision of this Agreement is held invalid or unenforceable,
the remainder of this Agreement shall nevertheless remain in full force and effect.
If any provision is held invalid or unenforceable with respect to particular
circumstances, it shall nevertheless remain in full force and effect in all other
circumstances.
E. Conflict with City Charter or Municipal Code. The City personnel ordinances,
resolutions, rules and policies shall apply to Employee in the same manner as
applied to other management employees, provided, however, in the event of a
conflict between the provisions of this Agreement and the City Charter, or this
Agreement and the Municipal Code, the City Charter or the Municipal Code shall
prevail over this Agreement.
F. Employees Independent Review: Employee acknowledges that he has had the
opportunity and has conducted an independent review of the financial and legal
effects of this Agreement. Employee acknowledges that he has made an
independent judgment upon the.financial and legal effects of this Agreement and
has not relied upon any representation of Employer, its officers, agents or
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employees other than those expressly set forth in this Agreement. Employee
acknowledges that he has been advised to obtain, and has availed himself of,
legal advice with respect to the terms and provisions of this Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on
the dates reflected below each signature.
EMPLOYER
CITY OF NEWPORT BEACH,
A Municipal Corporation
Keith Curry, Mayor
Date:
APPROVED AS TO FORM:
EMPLOYEE
R. Crai Scott, f Whitehead
Special Couns6l to the Office of the City Attorney
Date: December 3_, 2010
ATTEST:
By:
Leilani Brown,
City Clerk
Date:
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GENERAL RELEASE AGREEMENT
This General Release Agreement ( "Agreement ") is entered into by and between
DAVID R. HUNT ( "Employee ") and CITY OF NEWPORT BEACH ( "Employer "), in light
of the following facts'
A. Employee's employment with Employer concluded on
B. Certain disputes have arisen between Employer and Employee.
C. Employer and Employee each deny any liability whatsoever to the other.
D. Employer and Employee wish to fully and finally resolve any and all
disputes they may have with each other.
E. Employee is hereby informed that he has twenty -one (21) days from
receipt of this Agreement to consider it. Employer hereby advises Employee to consult
with his legal counsel before signing this Agreement.
F. Employee acknowledges that for a period of seven (7) days following the
signing of this Agreement ( "Revocation Period "), he may revoke the Agreement. This
Agreement shall not become effective or enforceable until the day the Revocation
Period has expired.
G. Employee acknowledges that the Salary Payment referenced in paragraph
1 of this Agreement represents all compensation, including salary, accrued benefit
balances and reimbursed expenses, due and payable to him through the date of
employment termination. Employee also acknowledges that Employer has made this
Salary Payment without regard to whether he signs this Agreement. The Salary
Payment does not constitute consideration for this Agreement. Employee
acknowledges that the Severance referenced in paragraph 2 of this Agreement is in
excess of all amounts that are due and owing to him as a result of his employment by
Employer.
1. Receipt of Salary Payment. Employee hereby acknowledges receipt of a
check or checks for all compensation owing to him, including salary, accrued benefit
balances and reimbursed expenses ( "Salary Payment") from Employer.
2. Severance. Within ten (10) days following Employee's signing, delivering
to the City Council, and not revoking this Agreement, City shall pay Employee the gross
amount provided for in Section 7 of the Employment Agreement effective December 22,
2010,1ess applicable deductions, and shall provide the months of medical benefits as
EXHIBIT A —Page 1
provided in that same Section 7 ( "Severance "). Employee acknowledges that the
Severance is in excess of all amounts due and owing him as a result of his employment
by Employer.
3. General Release. In consideration of the Severance to be paid and
provided to Employee, and other good and valuable consideration, Employee hereby
releases and discharges Employer and its past and present City Council Members,
employees, representatives and agents, from all rights, claims, causes of action, and
damages, both known and unknown, in law or in equity, concerning and /or arising out of
his employment with Employer which he now has, or ever had, including but not limited
to any rights, claims, causes of action or damages arising under Title VII of the Civil
Rights Act of 1964, the Vocational Rehabilitation Act of 1973, the Employee Retirement
Income Security Act, the Americans with Disabilities Act, the Age Discrimination in
Employment Act, the Older Workers Benefits Protection Act, the Family and Medical
Leave Act of 1993, the Domestic Partners Act of 2003, the California Labor Code, the
Private Attorneys General Act of 2004, the California Moore - Brown - Roberti Family
Rights Act, the California Unruh Civil Rights Act, the California Fair Employment and
Housing Act, any other federal, state, or local employment practice legislation, or any
federal or state common law, including wrongful discharge, breach of express or implied
contract, or breach of public policy.
Employee hereby waives and relinquishes all rights and benefits afforded by
Section 1542 of the Civil Code of California. Employee understands and acknowledges
the significance and consequences of this specific waiver of Section 1542. Section
1542 of the Civil Code of California states as follows:
"A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor."
Notwithstanding the provisions of Section 1542, and for the purpose of
implementing a full and complete release and discharge of Employer and its past and
present City Council Members, employees, representatives and agents, Employee
expressly acknowledges that this General Release is intended to include in its effect,
without limitation, all claims which he does not know or suspect to exist in his favor.
Employee further acknowledges that he has read this General Release and that
he understands that this is a general release, and that he intends to be legally bound by
the same.
EXHIBIT A — Page 2
4. Fees and Costs. Employee and Employer agree that in the event of
litigation relating to this General Release Agreement, the prevailing party shall be
entitled to recover his /its reasonable attorneys' fees and costs.
Dated [MONTH] , 20_ CITY OF NEWPORT BEACH
Dated:[MONTH] _, 20_
By:
DAVID R. HUNT
EXHIBIT A — Page 3
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, Leilani L Brown, City Clerk of the City of Newport Beach, California, do hereby
certify that the whole number of members of the City Council is seven; that the foregoing resolution,
being Resolution No. 2010 -143 was duly and regularly introduced before and adopted by the City
Council of said City at a regular meeting of said Council, duly and regularly held on the 146 day of
December, 2010, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Selich, Rosansky, Henn, Gardner, Daigle, Webb, Mayor Curry
Noes: None
Absent: None
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this lYh day of December, 2010.
l�%L � �✓ d'-U UM �'�
City Clerk
Newport Beach, California
(Seal)