HomeMy WebLinkAboutC-7034-2 - Fourth Amended and Restated Employment Agreement - City AttorneyFOURTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT
CITY OF NEWPORT BEACH CITY ATTORNEY
This FOURTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT
("Agreement") is made effective as of April 25, 2017 ("Effective Date") and is entered
into by and between the CITY OF NEWPORT BEACH, a California municipal
corporation and Charter City ("Employer" or "City") and AARON C. HARP ("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 continuously employed by City as City Attorney since
September 6, 2011. Employee is currently employed under a Third Amended and
Restated Employment Agreement dated February 23, 2016 ("Employment
Agreement").
C. The Parties mutually agree that they intend for this Agreement to supersede all
prior Employment Agreements, and that upon execution of this Agreement, any
prior Employment Agreements shall have no force or effect.
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, and that there are no other Agreements between them; oral, written
or implied.
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NOW, THEREFORE, it is mutually agreed by and between the undersigned Parties as
follows:
SECTION 1: Term and Notice of Non -Renewal
This Agreement shall become effective April 25, 2017 ("Effective Date'). Subject to
City's right to terminate Employee's employment at any time, as provided for in this
Agreement, the Term of this Agreement is two (2) years from the Effective Date, and
shall automatically be extended for one additional twelve (12) month period on each
annual anniversary of the Effective Date of the Agreement, unless City notifies
Employee of its intent not to extend the Agreement at least six (6) months prior to
expiration of the original Term or any subsequent automatic extension of the Term of
this Agreement. City's election not to extend this Agreement shall not entitle Employee
to severance pursuant to Section 7 of this Agreement.
SECTION 2: Duties and Authority
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. Employer agrees to pay Employee an annual base salary of $237,800 (Two
hundred thirty-seven thousand and eight hundred dollars) ("Base Salary"),
subject to deductions and withholdings of any and all sums required for federal or
state income tax, pension contributions, and all other taxes, deductions or
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
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Clerk, and any Department Directors not covered by collective bargaining
agreements ("Executive 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
is within the approved salary range adopted by resolution of the City Council.
This Agreement shall be deemed amended whenever the City Council adopts a
resolution changing the base salary of Executive Management Employees or the
manner (but not the amount) by which Executive Management Employees are
paid.
B. Employer, by the City Council, and Employee may set mutually -agreed upon
objectives for each year under this Agreement. Employer, by the City Council,
may elect to conduct an evaluation of Employee's performance at any time or
times during 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 prior Employment Agreement and this
Agreement. All of Employee's accrued leave and other benefit balances shall
carry over as agreed, 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 rate of 9.69 hours per Pay Period. Employee's
maximum accrual for Flex Leave is limited to 400 (four hundred) hours. The right
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to sell back accumulated Flex Leave shall be consistent with the Compensation
Plan.
C. Administrative Leave. Employee shall be entitled to 80 (eighty) hours of paid
Administrative Leave per calendar year (January 1 through the pay period
including December 31). 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 or
cash out any accumulated Administrative Leave.
D. Additional Benefits. Except as expressly provided herein, 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 under 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 $1,000 (One thousand dollars).
F. Automobile Allowance. Employee's duties require him to be available and to
respond to demands of City business at all times and outside of regular business
hours, including weekends. Employer shall, therefore, pay to Employee $500
(Five hundred dollars) per month as an automobile allowance so that Employee
may respond to these demands of City business.
G. Phone Allowance. Employee shall be entitled to the same phone allowance as
provided to any Executive Management member.
H. Amendment of Benefits. Employee's benefits provided under this Section 4 are
not tied to the compensation of any other City employee or group of City
employees except as expressly provided in this Section.
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I. PERS. Employee contributes thirteen percent (13%) of compensation earnable
towards Employee's retirement benefit, which is designated as follows: 8% of
Employee/Member's total PERSable salary as the Employee/Member
Contribution; and 2.42% and 2.58% of the Employer Contribution Rate as cost
sharing in accordance with Government Code sections 20516(a) and 20516(f)
respectively.
The Parties agree that the City will not report as special compensation the value
of any Employer Paid Member Contribution. In the event the City Council adopts
a Compensation Plan in which retirement contributions for non -safety members
of the Key & Management Group exceeds 13.00%, this Agreement shall be
deemed amended and Employee will be subject to the same formula or
percentage contribution as it is applied to the non -safety members of the Key &
Management Group covered under the Compensation Plan and for the same
duration. In no event, shall the Employee's retirement contribution be less than
13.00%. Employee retirement contributions that are in addition to the normal
PERS Member Contribution shall be calculated on Base Salary, special pays,
and other pays normally reported as "PERSable" compensation, and will be
made on a pre-tax basis through payroll deduction, to the extent allowable by the
Government Code.
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.
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.
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B. City shall reimburse Employee for expenses incurred in his attending a
reasonable number of League of Cities and other similar conferences relevant to
the performance of his duties. City shall pay Employee'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.
C. The expenses to be budgeted and paid in the Section 5, Paragraphs A and B
above, are exclusive of reasonable expenses related to events, participation in
organizations, or attendance at events or meetings on behalf of the City as
required by the City Council. Employer will separately budget and pay for
membership and participation in community, civic or other organizations or
events in which Employer requires Employee to participate.
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 (as defined below), 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 providing forty-five (45) calendar days prior written notice to Employer
of the effective date of his resignation. Upon the effective date of resignation,
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Employee forfeits all compensation and benefits owing for the remainder of the
term of this Agreement, as well as any potential severance pay
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 a majority
of the members of the City Council at a meeting 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
Employee beginning on the effective date of termination a lump sum benefit
equal to six (6) months of his then applicable Base Salary, and shall provide six
(6) months of medical coverage as provided under the Compensation Plan as
long as employee is already enrolled and receiving medical coverage through the
City medical benefits plan at time of termination (collectively, "Severance").
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 at a meeting 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 5 or 6, 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:
1. 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. Conviction of any crime involving an "abuse of office or position," as that
term is defined in Government Code Section 53243.4;
4. Willful abandonment of duties;
5. Repeated failure to carry out a directive or directives of the City Council
made by the City Council as a body; and
6. 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.
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
A. 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 (40) 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 during normal business hours, subject
to paragraph B of this Section, below.
B. Employee is authorized to work the 9/80 schedule as defined in Section 2(RR)(1)
of the Employee Policy Manual and referred to in Miscellaneous Section (D) of
the Compensation Plan. However, as City Attorney, Employee shall not take a
9/80 day: (1) on any Monday or Friday immediately preceding a regularly
scheduled City Council Meeting; (2) on the same day as the Assistant City
Attorney takes a 9/80 day off; or (3) any other day where the press of business
requires Employee's attendance, in Employee's good faith judgment, such as
court appearances or emergency City Council meetings.
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 privileged, 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 shall not disclose the Confidential Information to others without the
express written consent of City.
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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, incompatible
with, or inimical to, or which materially interferes with his duties and responsibilities to
Employer. (Cal. Govt. Code 1125 — 1129.)
SECTION 11: Indemnification
A. 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
Employer determines that there is a conflict of interest between Employer and
Employee and 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. (Cal. Govt. Code 995, et. seq.)
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B. Notwithstanding the foregoing, and consistent with Sections 53243 through
53243.3 of the Government Code, Employee shall be required, if convicted of a
crime involving an abuse of his office or position, to fully reimburse the City for:
(1) any paid leave salary offered by the City to the Employee; (2) any funds
provided for the legal criminal defense of the Employee; (3) any cash settlement
related to the termination that Employee may receive; and (4) any other
payments received by Employee from City that in any way relate to the foregoing.
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
100 Civic Center Drive
Newport Beach, California 92660
(2) EMPLOYEE: Aaron C. Harp
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 five days after the date of mailing.
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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,
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
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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. Employee's 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
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.
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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
Date: <
APPROVED AS TO FORM:
By:
Edward P. Z Apia
THE ZAPPIA LAW FIRM
A Professional Corporation
By:I'
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City Clerk
Date: 0- T
EMPLOYEE,
An Individual
By:
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Aaron C. Harp
Date: S / O r 1 -1
Date:
[End of Signatures]
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GENERAL RELEASE AGREEMENT
This General Release Agreement ("Agreement") is entered into by and between
AARON C. HARP ("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.
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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 current Fourth Amended and Restated
Employment Agreement dated April 25, 2017„ less applicable deductions, and shall
provide the months of medical benefits as 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
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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.
4. Fees. Employee and Employer agree that in the event of litigation relating
to this General Release Agreement, the prevailing party shall not be entitled to recover
his/its reasonable attorneys' fees.
[Signatures on Next Page.]
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APPROVED AS TO FORM:
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City Clerk
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Aaron C. Harp
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