Bob Richardson’s Contract with the City of Grass Valley as City Manager

Grass Valley City Manager EMPLOYMENT AGREEMENT

BETWEEN THE CITY OF GRASS VALLEY AND Bob Richardson RECITAL

1. On January 6, 2014 the City Council selected Bob Richardson (hereafter “City

Manager”) to serve as City Manager of the City of Grass Valley (“City”), and City

Manager Bob Richardson accepts such employment, subject to approval of this

employment agreement, background check and physical examination. Accordingly, the

parties agree as follows:

AGREEMENT

2. Effective Date

This agreement shall become effective when it has been executed by City Manager and

duly approved by the City Council.

3. Term of Employment

Pursuant to the provisions of the Grass Valley City Charter, and City Municipal Code,

City Manager serves at the pleasure of the City Council and on an “at will” basis and

has no vested right to his employment during the term of this Agreement, subject to the

terms and provision of this Agreement as set forth below. The term of this Agreement is

from February 10, 2014 to February 10, 2019.

4. Duties; Hours of Work

A. City Manager shall perform those functions and duties specified by State

law, the Grass Valley City Charter, the Grass Valley Municipal Code and by formal

direction of the City Council. City Manager shall perform such duties in accordance

with the highest professional and ethical standards of the city manager profession. City

Manager shall not engage in any activity, which is, or which may become, incompatible

with the office of City Manager, as provided for by State law. During the term of this

agreement, City Manager shall be exclusively employed by the City, unless prior

authorization otherwise is received from the City Council, which authorization will not

be unreasonably withheld.

B. City Manager shall maintain a regular work schedule consistent with that

approved for other Executive Service employees of the City. City Manager’s duties may

involve expenditures of time in excess of eight (8) hours per day and/or forty (40) hours

per week, and may also include time outside normal office hours such as attendance at

City Council meetings. City Manager shall not be entitled to additional compensation

for such time.

5. Compensation

A. The City Manager’s annual salary shall be $163,000.

B. City Manager’s compensation shall be reviewed at least annually in

connection with the annual review required by section 14 below or at other times as

may be determined by City Council. Further, it is understood that it is the intent of the

City Council to increase salary, or other benefits referred to in this agreement during the

five-year term of this Agreement, dependent on the quality of job performance by City

Manager and the City’s fiscal condition.

6. Health Insurance

City shall provide City Manager with the same medical, dental and vision health

insurance benefits as provided to all other Executive Service employees and at the cost

charged to those employees. Currently the cost of the health plan is split between the

City and Employee, with the employee paying a portion of the health premium. For

fiscal year 20132014 the City contributes the following towards medical, dental and

vision insurance through the PERS health care system and for selected vision and dental

insurance premiums: Employee-only, $610; Employee plus one dependent, $1215;

Employee plus two or more dependents, $1595.

7. Life Insurance

City shall provide, without cost to the City Manager, term life insurance in the amount

of $50,000 for the City Manager, five thousand dollars ($5,000) for his spouse and fifteen

hundred ($1,500) for his eligible dependent children.

8. Personal Leave

A. The purpose of personal leave is to enable the City Manager to accrue

leave for vacation, sick leave and personal leave. For vacation leave of more than two

weeks at a time, the City Manager shall provide sufficient notice so the City Council

may approve such absence to avoid an extended absence of the City Manager during

critical time periods.

B. The City Manager will be afforded 120 hours of banked personal leave

time on February 10, 2014. These hours shall be debited upon their use by City Manager

for leaves and by the 12.92 hours he accrues biweekly so that, at the end of his first year

of employment, this leave balance will be 336 hours less any leave he takes in that year.

The City Manager shall accrue personal leave at a rate of 336 hours per year (12.92

hours biweekly). One twenty sixth (1/26) of such personal leave amount shall accrue

each pay period.

C. The City Manager may carry a balance of no more than 520 hours of

personal leave. The City Manager may convert up to 120 hours of personal leave to cash

compensation in each fiscal year at one or more times of his choice and may convert

additional hours if approved by the City Council pursuant to the annual budget. When

the City Manager reaches the 520 hours cap on accrued personal leave, hours lost due to

the accrual cap for “sick leave”, shall be placed in a sick leave bankwhich can be used

as “sick leave” or converted to PERS service credit upon retirement

9. Other Leaves, Holidays, and Benefits

The City Manager is entitled to 11 paid holidays as recognized by the City. City shall

afford City Manager such other benefits as are provided to other Executive Service

employees of the City on the same terms as provided to those employees except as

otherwise expressly provided herein.

10. Long Term Disability Insurance

The City shall provide without cost to the City Manager an income protection insurance

program that shall insure City Manager‘s income to a maximum of six thousand

($6,000) dollars for such times of disability that he may incur during his service to the

City. The conditions of this insurance coverage shall be controlled by the agreement

between the City and its insurer.

11. Automobile Allowance

In recognition of the fact that the City Manager’s normal duties require frequent use of

his automobile, City Manager shall be entitled to $350 per month as an automobile

allowance. This allowance is in lieu of mileage reimbursement or other expenses that

may be incurred by City Manager in connection with his use of his own automobile for

City purposes. In consideration for said allowance, City Manager shall be responsible

for all costs of maintenance and operation of his vehicle. City Manager shall at all times

maintain automobile liability insurance on any vehicle used by him in the course of City

employment. Such insurance shall have coverage limits acceptable in form and amounts

to City. City Manager shall provide a certificate or other evidence of such insurance to

City. City Manager acknowledges that this allowance will be subject to payroll taxes

unless he maintains the records required by law to permit other treatment of this

allowance.

12. Professional Memberships & Meetings; Other Expenses

A. City shall pay for City Manager’s professional membership in the League

of California Cities and International City / County Management Association. City shall

pay for City Manager to attend the annual League of California Cities conference. City

will pay for such other professional memberships and conference attendance as may be

approved and budgeted by the City Council.

B. City recognizes that certain expenses of a non-personal and job-related

nature may be incurred by City Manager. City agrees to reimburse City Manager for

reasonable expenses which are authorized by the City budget; submitted to the City

Council for approval; and which are supported by expense receipts, statements or

personal affidavits, and audit thereof in like manner as other demands against the City.

13. Retirement Program and Deferred Compensation

A. City Manager is a ClassicMiscellaneous member of the California

Public Employee’s retirement system. The City Manager will be covered under the City

of Grass Valley’s Local Miscellaneous 2.5% at age 55 Formula. City Manager ’s

contribution towards the retirement system will be the full employee’s share of eight

percent (8%). The City will pay the employer’s share to PERS and Social Security and

the City Manager shall pay the employee contribution for Social Security.

B. The City shall provide City Manager deferred compensation of $100.00

per pay period, not to exceed 26 pay periods annually, towards a deferred

compensation plan of his choice.

14. Annual Performance Evaluation

The City Council shall evaluate City Manager’s performance at least once annually. The

City Council and City Manager shall annually develop mutually agreeable performance

goals and criteria which the City Council shall use in reviewing City Manager’s

performance in the following year. It shall be City Manager’s responsibility to initiate

this review each year. City Manager will be afforded an adequate opportunity to

discuss each evaluation with the City Council.

15. Indemnification

City shall defend, hold harmless and indemnify City Manager against any claim,

demand, judgment, or action of any type or kind arising within the course and scope of

City Manager’s employment to the extent required by Government Code Sections 825

and 995.

16. Other Terms and Conditions of Employment

A. The City Council may from time to time fix other terms and conditions of

employment relating to the performance of City Manager, provided such terms and

conditions are not inconsistent with or in conflict with the provision of this Agreement,

the Grass Valley City Charter, the Grass Valley Municipal Code, or other applicable law.

B. The provisions of the City’s Personnel Rules and Regulations (“Rules”)

shall apply to City Manager to the extent they explicitly apply to the position of City

Manager, except that if the specific provisions of this Agreement conflict with the Rules,

the terms of this Agreement shall prevail. Without limiting the generality of the

exception noted in the previous sentence, however, no provision of the Rules or this

Agreement shall confer upon City Manager a property right in his employment or a

right to be discharged only upon cause. City Manager is an at-will employee serving at

the pleasure of the City Council and may be dismissed at any time with or without

cause, subject only to the provisions of this Agreement.

17. Termination Without Cause

The City Council may terminate City Manager’s employment with the City at any time

and without cause, upon thirty (30) days written notice to City Manager. In the event of

such termination without cause, City Manager shall be entitled to a severance benefit, of

six months of the City Manager’s current base salary plus payment of accumulated

Personal Leave upon termination from service. This base salary and leave pay-out shall

be made on a bi-weekly basis at such time as other City employees are normally paid

Severance pay will be paid until the sooner of the date City Manager is gainfully

employed or the six months of bi weekly salary is paid provided, however, that the

balance on any accrued leave which has not then been paid shall be payable in a lump

sum upon termination of severance pay. Upon payment of such severance

compensation, City shall have no further obligation to City Manager and City Manager

shall have no claim for further compensation from City.

18. Termination With Cause

The City Council may terminate City Manager’s employment with City for cause upon

thirty (30) days’ written notice to City Manager. In that event, City shall have no

obligation to continue the employment of City Manager and shall have no obligation to

provide any severance compensation, although City Manager shall be entitled to

payment of the value of accrued leave. For purposes of this agreement, the term “for

cause” shall include any of the following: (a) use of alcohol or drugs that impedes

performance of duties; (b) conviction of a felony or misdemeanor involving moral

turpitude (a plea or verdict of guilty or a conviction following a plea of nolo contendere

is deemed a conviction for this purpose); (c) a proven claim of either sexual harassment

or abuse of employees in violation of law or adopted City policy; (d) willful and

repeated failure to carry out the lawful directives or policy decisions of the City

Council; or (e) willful abandonment of the position or continued and unexcused

absence from duty.

19. Voluntary Termination; Death

A. City Manager may voluntarily terminate his employment, by resignation

or retirement, at any time during the term of this Agreement, subject to at least thirty

(30) days’ written notice by City Manager to City, unless the City Council and City

Manager agree otherwise. In such case, City shall have no further obligation to provide

payments and benefits, including severance benefits, upon the effective date of

termination of employment, other than payment of accrued leave.

B. In the event the City Manager dies while employed by the City, his

beneficiaries or those entitled to his estate shall be paid any earned salary and accrued

leave at the City Manager’s pay rate on the date of death.

20. Compliance With Law

This Agreement is subject to all applicable provisions of State and Federal law and to

the provisions of the Grass Valley Charter, Grass Valley Municipal Code, and

ordinances, rules and regulations of the City applicable to the City Manager.

21. General Provisions

A. This Agreement constitutes the entire agreement between the parties. City

and City Manager hereby acknowledge that they have neither made nor accepted any

other promise or obligation with respect to the subject matter of this Agreement.

B. If any provision or any portion of this Agreement is held to be

unconstitutional, invalid or unenforceable, the remainder of the Agreement shall be

deemed severable and shall not be affected and shall remain in full force and effect.

C. Any notice to City pursuant to this Agreement shall be given in writing,

either by personal service or by registered or certified mail, postage prepaid, addressed

as follows:

Mayor and City Council

City of Grass Valley

125 East Main Street

Grass Valley, CA 95945

With a courtesy copy to the City Attorney at the following address or the address

then shown in the records of the City for the City Attorney:

Michael G. Colantuono, Esq.

Grass Valley City Attorney

11364 Pleasant Valley Road

Penn Valley, CA 95946-9000.

Any notice to City Manager shall be given in a like manner, and, if mailed, shall be

addressed to City Manager at the address then shown in City’s personnel records. For

the purpose of determining compliance with any time limit stated in this Agreement, a

notice shall be deemed to have duly given (a) on the date of delivery, if served

personally, or (b) on the second (2nd) calendar day after mailing, if mailed.

D. Venue for any disputes arising from or relating to this Agreement shall lie in

Nevada County, California. If an action at law or in equity is necessary to enforce or

interpret this Agreement, the prevailing party shall be entitled to reasonable and actual

attorneys’ fees and costs with respect to the action.

E. A waiver of any of the terms and conditions of this Agreement shall not be

construed as a general waiver and either party shall be free to enforce any term or

condition of this Agreement with or without notice to the other notwithstanding any

prior waiver of that term or condition.

22. Amendments

This represents the entire agreement between the parties. Amendments to this

agreement may be made at such times as approved by the City Council and City

Manager and shall be in writing.

Bob Richardson

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