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<,FORN�P. CITY COUNCIL STAFF REPORT
DATE: September 5, 2007 CONSENT CALENDAR
SUBJECT: EXECUTIVE EMPLOYMENT AGREEMENT WITH FIRE CHIEF BLAKE
GOETZ
FROM: David H. Ready, City Manager
SUMMARY
This action authorizes the City Manager to execute an employment agreement to retain
Blake Goetz, in his capacity of Palm Springs Fire Chief until December 31, 2010. The
agreement will provide him with an incentive to delay his retirement date and will result
in a cost savings to the City.
RECOMMENDATION:
Authorize the City Manager to execute an executive employment agreement with Blake
Goetz to retain him as Fire Chief until December 31, 2010.
STAFF ANALYSIS:
The Fire Chief currently has 30 years of service with the Palm Springs Fire Department
which makes him eligible to retire in September 2007, under the California State
Retirement System. Based upon his performance and extensive years of experience
with the organization, I have requested that he delay his retirement date, and he has
indicated a willingness to do so.
To achieve this continued employment relationship requires the Chief to forgo his
retirement in September until end of calendar year 2009. Subsequently, in accordance
with CALPERS rules governing retirees, Chief Goetz will work as a temporary employee
from January 1, through December 31, 2010- Exhibit A, of the attached contract,,
outlines the specific proposal that we have negotiated as an incentive for him to remain
in his current position. p
ITEM NO. �`
City Council Staff Report
September 5, 2007— Page 2
Employment Agreement
FISCAL IMPACT:
The fiscal impact of this contract includes an additional cost of $28,916 through
December 31, 2009. However, in the final contract year, January 1 through December
31, 2010, the City will not be required to pay employee benefits to the Chief which will
accrue an approximate savings of $80,478. Moreover, to ensure these savings, the
Chief has agreed to a provision that requires him to repay the City up to one half of his
salary increases over the next three years if he elects to leave service prior to the end of
the contract term.
David H. Ready, Esq.,
City Manager
Attachments:
Proposed Agreement
. 000ao�
FIRE CHIEF
Compensation Schedule
Exhibit "A"
Compensation - 3.5 year term New Cost
Salary (includes
Certification pay)
Year One — half calendar year
2.5% (July 1, 2007 to December 31, 2007) $4,033 $165,374
Total Year One Cost $4,033, $165,374
Year Two
5% (January 1, 2008) $8,268 $173,642
Total Year Two'Cost $12,301 $173,642
Year Three
5% (January 1, 2009) $8,682 $182,324
Official PFRS retirement; December 30, 2009
Total Year Three Cost, $20,'983' $,182,324
TOTAL COSTS WITH BENEFITS $28,916
Year Four
Return as "temporary employee-retired
annuitant" - 960 hours (January 1 to June 30, $182,324
2010) and 960 hours in following fiscal year
(July 1, 2010 to December 31, 2010)
Projected benefit savings in fourth year $109,394
Less total new cost in years 1-3
- 28,916
Savings to City over 3.5 year term $80,478
CONTRACT OF EMPLOYMENT OF
FIRE CHIEF
CITY OF PALM SPRINGS
THIS CONTRACT is made and entered into, to be effective on July 1, 2007, by
and between the City of Palm Springs, hereinafter called "City," and Blake Goetz, an
individual, hereinafter called "Fire Chief' or "Employee," both of whom understand as
follows:
RECITALS
WHEREAS, City desires to contract for services of Blake Goetz as Fire Chief of
the City of Palm Springs; and
WHEREAS, it is the desire of the City to secure the services of Fire Chief and to
provide certain benefits, establish conditions of employment and set working conditions
for Fire Chief; and
WHEREAS, Blake Goetz desires to perform as Fire Chief.
AGREEMENT
NOW, THEREFORE, in consideration of mutual covenants herein contained, the
parties agree as follows:
Section 1: Duties.
1.1 City hereby employs Blake Goetz as Fire Chief of City under the direct
supervision of the City Manager to perform Fire Chief functions and duties as specified
in the City of Palm Springs Job Classification, City Charter, Municipal Code and
Government Code of the State of California and to perform such other legally
permissible and proper duties and functions as the City Manager shall from time to time
assign.
1.2 Unless otherwise directed by the City Manager, the services of Fire Chief
shall be performed at the offices of City Fire Department; provided, however, that City
may require Fire Chief to travel temporarily to other locations to perform services for or
on behalf of City.
1.3 Fire Chief will, to the best of his ability and experience, loyally and
conscientiously perform all of the duties and obligations required of Fire Chief, either
expressly or implicitly by the terms of this Contract.
Contract of Employment—Fire Chief— City of Palm Springs
Page 1 of 5
545917 I
Section 2: Compensation. •
2.1 See Exhibit A.
2.2 Except as expressly provided in this Subsection 2.2, if the Fire Chief does
not complete the term of employment with the City through December 31, 2010, Fire
Chief agrees and hereby consents to repay the City, through payroll deductions from his
salary/leave bank, or other personal finances, fifty percent (50%) of the salary increase
he received between July 1, 2007 when his base salary was $161,340 and the date of
termination of his employment with the City. Should Fire Chief be rendered unable to
work due to a catastrophic event as determined by the City Manager, this obligation to
repay fifty percent (50%) of his salary increase shall not be triggered, if approved by the
City Manager.
Section 3: Term of Employment.
3.1 Fire Chief shall continue in service as Fire Chief until December 30, 2009
at which time he will retire from City service. Upon retirement, the Fire Chief shall
become a temporary employee through which the Fire Chief will provide services to the
City as "Interim Fire Chief' until December 31, 2010.
3.2 Fire Chief may terminate this Contract at any time without advance notice,
for any reason, no reason, with or without cause, and in his sole discretion based upon
provisions in Section 2,2, Fire Chief shall have no right to an appeal or grievance
procedure, as the Parties acknowledge and agree that he serves at the pleasure of the
City Manager. Nothing in this Contract shall be construed to create a property interest
in the position of Fire Chief and each party hereby acknowledges that no such property
interest otherwise exists.
3.3 For the purpose of this agreement, termination for cause by the City
Manager shall include:
A. Conviction of a felony or misdemeanor involving moral turpitude; or
B. A determination by a court of competent jurisdiction, or the State of
California Fair Political Practices Commission, that Fire Chief knowingly and unlawfully
participated in a government decision in which he had a conflict of interest, as defined in
California Government Code Sections 871000 et seq., or California Government Code
Sections 1090 et seq.; or
C. Material breach of contract by Fire Chief.
D_ Documented insubordination.
In the event the City Manager tereminates the Fire Chief "for cause," Fire Chiefs
obligation to repay the City pursuant to Section 2.2 shall be triggered. In the event the •
City Manager terminiates the Fires Chief for any reason other than "for cause," the Fire
Chief's obligation to repay the City pursuant to Section 2.2 shall not be triggered.
Contract of Employment— Fire Chief— City of Palm Springs
Page 2 of 5
545917.1
•
Section 4: Performance Evaluation.
4.1 At least once annually, the City Manager and Fire Chief shall mutually
define such goals and performance objectives which they determine necessary for the
proper operation of the City in the attainment of City policy objectives. Further, the City
Manager and the Fire Chief shall establish a relative priority among those various goals
and objectives to be reduced to writing with a mutual expectation of Fire Chiefs
achievement of those goals and objectives within a mutually agreed upon timeframe.
4.2 This annual review and evaluation shall be conducted in accordance with
criteria established by the City Manager. Such criteria may be added to or deleted as
the City Manager may from time to time determine is appropriate.
4.3 In his sole discretion, the City Manager shall be entitled to review the
performance of Fire Chief on a more frequent basis, and without a written evaluation.
Section 5: Indemnification. In accordance with the provisions of the California
Tort Claims Act, Government Code Section 810 et seq., the City hereby agrees to
defend, indemnify and pay all damages, including special and general damages, and
costs of litigation matters, current and future, in which Fire Chief is named as a party as
a result of activities within the course and scope of his employment as Fire Chief. City
• reserves, however, the right to refuse to defend, indemnify and pay damages for acts or
omissions which were fraudulent, committed with actual malice or otherwise outside the
course and scope of his employment. Fire Chief agrees to cooperate in any and all
litigation matters currently pending or which may be filed in the future against the City or
Fire Chief, and Fire Chief shall cooperate with City's efforts in defending such litigation.
City shall comply with the provisions of Government Code section 825, et sea. in
determining whether any award of punitive damages awarded against Fire Chief shall
be paid.
Section 6: Construction and Amendment. This Contract shall be governed by
the laws of the State of California. This Contract may not be modified, altered or
amended except in writing and signed by the City and the Fire Chief.
Section 7: Recitals. The Recitals above are hereby incorporated into this
section as though fully set forth herein and each party acknowledges and agrees that
such Party is bound, for purposes of this Contract, by the same.
Section 8: Notices. All notices or other communications required or permitted
hereunder shall be in writing, and shall be personally delivered, sent by registered or
certified mail, postage prepaid, return receipt requested, or sent by electronic
transmission, and shall be deemed received upon the earlier of (i) the date of delivery to
the address of the person to receive such notice if delivered personally or by messenger
• or overnight courier; (ii) three (3) business days after the date of posting by the United
States Post Office if by mail; or (iii) when sent if given by electronic transmission. Any
Contract of Employment— Fire Chief—City of Palm Springs
Page 3 of 5
545917.1
notice, request, demand, direction, or other communication sent by electronic
transmission must be confirmed within forty-eight (48) hours by letter mailed or
delivered- Notices or other communications shall be addressed as follows:
IF TO CITY: City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, California 92262
Attention: City Manager
IF TO FIRE CHIEF: To address on file with the City's Human
Resources Department
Either Party may, by written notice to the other, designate a different address, which
shall be substituted for that specified above.
Section 9: Miscellaneous-
9.1 Outside Employment- Fire Chief shall devote his entire productive time,
ability and attention to the business of the City during the term of this Agreement.
Outside employment is prohibited unless authorized by the City Manager.
9.2 Authority to Enter Into Contracts- It is expressly agreed that Fire
Chief shall have no right or authority at any time to make any contract or binding •
promise of any nature on behalf of the City, whether oral or written, without the express
written consent of, as appropriate, the City Manager or the City Council-
9.3 Integration. With regard to the subject matter of Sections 1, 2, 3, and 4 herein,
this Contract supersedes any and all other Contracts and understandings, either oral or
in writing, between City and Fire Chief with respect to the employment of Fire Chief by
City. Each party to this Contract expressly acknowledges relative to the subject matter
contained in Sections 1, 2, 3, and 4 of this Contract that no representations,
inducements, promises or Contracts, orally or otherwise, have been made by any party,
or any person acting on behalf of any party, which are not embodied herein, and that no
other Contract, statement, representation or promise not contained in this Contract shall
be of any force or-effect.
9.4 City's Personnel Rules. The terms and conditions of Fire Chiefs
employment, including employment benefits of Fire Chief not specifically provided for in
this Contract of Employment, shall also be governed by City's Personnel Rules, as
amended from time to time, to the extent not inconsistent with the provisions of this
Contract. In the event of any such inconsistency or conflict, the provisions of this
Contract shall govern.
Contract of Employment—Fire Chief— City of Palm Springs
Page 4 of 5
56S917.1
CONTRACT OF EMPLOYMENT OF
FIRE CHIEF CITY OF PALM SPRINGS
Signature Page
CITY OF PALM SPRINGS
By.
David H. Ready, Esq., Ph.D.
City Manager
AP4Douglas
O FORM:
By:
lland, City Attorney
Blake oetz
Contract of Employment— Fire Chief— City of Palm Springs
545917 I Page 6 of 5