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HomeMy WebLinkAbout9/5/2007 - STAFF REPORTS - 2.P. �OF?ALM Sp4 ti 2 c w ry`oq.e x�if� 'V <,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