Lehr, Carolyn R. (2007-2011) FOURTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF RANCHO PALOS VERDES AND CAROLYN R. LEHR
This Fourth Amended and Restated Employment Agreement ("Agreement") is
made and entered into as of July 5, 2011, by and between the City of Rancho Palos
Verdes, a California municipal corporation ("CITY" or "EMPLOYER"), and Carolyn R.
Lehr, an individual ("EMPLOYEE"). CITY and EMPLOYEE are referred to collectively
as the Parties.
RECITALS
A. After a formal recruitment and selection process, the City Council of the City of
Rancho Palos Verdes ("City Council") appointed EMPLOYEE as City Manager in 2007.
B. EMPLOYEE has the requisite specialized skills, training, certifications, licenses,
and authorizations and is otherwise qualified to serve as City Manager and
has been serving as City Manager for City for four years.
C. Pursuant to Section 7 of the Agreement, the City Council of City conducted a
review of Employee's performance at a duly noticed closed session held on June 21,
2011.
D. The City Council finds that, based on the review of Employee's performance, the
City Council desires to increase Employee's annual salary and make other revisions to
the Agreement.
E. CITY and EMPLOYEE wish to enter into an Amended and Restated Employment
Agreement that sets forth all of the rights and obligations of the parties and that will
supersede all prior negotiations, discussions or agreements.
NOW, THEREFORE, for and in consideration of the mutual covenants and
conditions herein contained, CITY and EMPLOYEE agree as follows:
SECTION 1. DUTIES
EMPLOYER hereby agrees to retain the services of EMPLOYEE as City
Manager of the City of Rancho Palos Verdes to perform the functions and duties
specified in Chapter 2.08 of the Rancho Palos Verdes Municipal Code, and to perform
such other Y
le all permissible and proper duties and functions as the COUNCIL shall
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from time to time assign. EMPLOYEE shall also serve as Executive Director of any
authority or agency created by or staffed by EMPLOYER, including the Rancho Palos
Verdes Redevelopment Agency and the Rancho Palos Verdes Improvement Authority.
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SECTION 2. TERM
A. Unless sooner terminated, as provided in this Agreement, the term of
this Agreement shall terminate on June 30, 2014. This paragraph shall not be
construed as preventing the parties from amending, extending or modifying the
Agreement by a written instrument executed by both of the parties. The question of
further extension or non-extension of the term hereof shall be considered by the
COUNCIL at the time of the annual evaluation of EMPLOYEE as provided in Section 7
hereof.
B. Nothing in this Agreement shall prevent, limit or otherwise interfere
with the right of the COUNCIL to terminate the services of EMPLOYEE at any time
upon ninety (90) days advance written notice, subject only to the provisions set forth in
Section 4, paragraphs A and B of this Agreement.
C. EMPLOYEE agrees to remain in the exclusive employment of
EMPLOYER until June 30, 2014, and neither to accept other employment nor to
become employed by any other employer while employed by EMPLOYER. The
prohibition against other employment shall not be construed to prevent occasional
teaching, writing, or consulting performed on Employee's time off in accordance with
Section 8 of this Agreement.
SECTION 3. SUSPENSION
EMPLOYER may suspend EMPLOYEE in accordance with the provisions
of Section 2.08.130 of Chapter 2.08 of Title 2 of the Rancho Palos Verdes Municipal
Code.
SECTION 4. TERMINATION AND SEVERANCE PAY
A. Consistent with California Government Code Section 36506, EMPLOYEE
is appointed by and serves at the pleasure of the City Council as an at-will employee.
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
CITY to terminate this Agreement and the employment of EMPLOYEE, with or without
cause. 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 this Section 4. In the event that EMPLOYEE is
terminated by the COUNCIL before expiration of the aforementioned term of
employment without cause and at or during such time that EMPLOYEE is willing and
able to perform her duties under this Agreement, then in that event, EMPLOYER
agrees to pay EMPLOYEE a lump sum cash payment equal to twelve (12) months
salary; provided, however, that if at the time of termination of the Agreement, the
unexpired term of the Agreement is less than twelve(12) months, then the cash
payment shall be equal to Employee's monthly salary at the time of termination
multiplied by the number of months of the unexpired term of the Agreement. Also, in
1371786.4 -2 -
the event EMPLOYEE is covered under EMPLOYER's health plan(s) and in addition to
the described lump sum payment, Employer shall provide for continuation of health
plans for six months after the date of termination or until EMPLOYEE obtains other
employment, whichever occurs first. EMPLOYER, at its option, may provide for health
benefit continuation through appropriate EMPLOYER contribution to COBRA coverage
or by maintaining EMPLOYEE on EMPLOYER's payroll roster for such insurance
benefits only. Only in the event that EMPLOYEE is terminated because of a material
breach of this Agreement on her part, or because she has been convicted of a felony or
any crime involving moral turpitude during the term hereof, shall EMPLOYER be
relieved of the obligation to pay EMPLOYEE the benefits or the severance sum
designated in this paragraph.
B. In the event EMPLOYER at any time during the time of this agreement
reduces the salary or other financial benefits of EMPLOYEE in a greater percentage
than an applicable across the board reduction for all employees of EMPLOYER, or in
the event EMPLOYER refuses, following written notice, to comply with any other
provision herein benefiting EMPLOYEE, or in the event EMPLOYEE resigns following a
suggestion or request by the COUNCIL that she resign, then EMPLOYEE may, at her
option, be deemed "terminated"within the meaning and context of the herein severance
pay provisions as of the date of such reduction of benefits, refusal to comply with the
provisions of this Agreement, or suggestion or request by the COUNCIL to resign.
C. In the event EMPLOYEE voluntarily resigns her position with EMPLOYER,
then EMPLOYEE shall give EMPLOYER two (2) months written notice in advance.
Additionally, in the event the EMPLOYEE applies for a position elsewhere during the
term of her employment hereunder and is included on a list of five or fewer candidates
still under consideration on such a list, EMPLOYEE shall promptly give notice thereof to
each member of the COUNCIL, which notice shall be confidential insofar as is
permitted by applicable law.
If EMPLOYEE terminates this Agreement (thereby terminating EMPLOYEE's
Employment), EMPLOYEE shall not be entitled to any severance.
SECTION 5. DISABILITY
If EMPLOYEE is permanently disabled or is otherwise unable to perform
her duties because of sickness, accident, injury, mental incapacity or health for a period
of four successive weeks beyond any accrued sick leave, EMPLOYER shall have the
option to terminate this agreement, subject to the severance pay requirements of
Section 4, paragraph A. However, EMPLOYEE shall be compensated for any accrued
vacation, holiday, and other accrued benefits, if any, in accordance with EMPLOYER's
personnel rules, which are applicable to management employees and in effect at the
time of such termination.
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SECTION 6. SALARY
A. Effective July 5, 2011, EMPLOYER agrees to pay EMPLOYEE for her services
rendered pursuant hereto, a monthly salary of $15,878, subject to legally permissible or
required deductions and withholding prorated and paid on CITY'S normal paydays.
EMPLOYEE'S salary is compensation for all hours worked. EMPLOYEE shall be exempt
from the overtime pay provisions of California law, if any, and federal law.
B. In recognition of accomplishments and excellent performance, merit increases
may be granted to EMPLOYEE by COUNCIL. EMPLOYER agrees that EMPLOYEE'S
salary shall be reviewed at the same time that EMPLOYEE'S performance is reviewed
pursuant to Section 7.
C. In connection with the performance evaluation pursuant to Section 7, COUNCIL
may consider a bonus, incentive award or performance pay for achievement of goals and
objectives during the prior year. The decision to grant a bonus, incentive award or
performance pay shall be in sole and absolute discretion of COUNCIL.
D. EMPLOYEE agrees that COUNCIL may further amend this Agreement during
fiscal year 2011-2012, for the sole purpose of making the same adjustments to
EMPLOYEE's retirement benefits and corresponding compensation that COUNCIL
approves for all other City employees during fiscal year 2011-2012, if any.
SECTION 7. PERFORMANCE EVALUATION
A. Annually, the COUNCIL and EMPLOYEE shall define the goals and
objectives that they determine appropriate for the proper operation of the City and to
attain the COUNCIL'S policy objectives. The COUNCIL and EMPLOYEE shall jointly
establish the relative priorities among the various goals and objectives and shall reduce
such prioritized goals and objectives to writing. The goals and objectives shall generally
be obtainable within the specified time limitations and within the annual operating and
capital budgets and appropriations provided. Concurrently with the establishment of the
goals and objectives for the City, the COUNCIL and EMPLOYEE shall establish the
performance goals for EMPLOYEE and any specific criteria that shall be used to
evaluate EMPLOYEE'S performance. Said criteria may be added to or deleted from as
the COUNCIL may from time to time determine after consultation with EMPLOYEE.
B. The COUNCIL shall review and evaluate the performance of EMPLOYEE
at least once annually, on or before May 31st of each year, or as soon thereafter as can
be reasonably be scheduled by the COUNCIL and EMPLOYEE. EMPLOYEE
recognizes that as City Manager, she shall remind COUNCIL of the obligation to
conduct the review of EMPLOYEE'S performance. The parties agree that the
COUNCIL'S failure to carry out the provisions of this Section 7 shall not be deemed a
breach of this Agreement.
1371786.4 -4-
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C. Such evaluation shall be discussed with EMPLOYEE, and an opportunity
shall be provided to EMPLOYEE to respond to any aspect of said evaluation. It is the
intention of COUNCIL that so long as authorized by Section 54957 of the California
Government Code, or any other statutory provision, such performance evaluation shall
be conducted in closed session.
SECTION 8. OUTSIDE ACTIVITIES
EMPLOYEE shall not spend more than an average of six hours per week
in teaching, counseling or other non-Employer related business without the prior
approval of the COUNCIL.
SECTION 9. AUTOMOBILE
EMPLOYEE shall provide and have at her disposal for use for City
business a clean, presentable and well-maintained automobile. EMPLOYEE shall be
responsible for all costs of maintenance and operation of said vehicle. During the term
of this Agreement, EMPLOYEE shall secure and maintain, at EMPLOYEE'S expense,
automobile insurance in accordance with the requirements of Rancho Palos Verdes
Administrative Instruction No. 8-02, and the minimum insurance requirements
established by State law, whichever is greater, and shall provide satisfactory evidence
of such automobile insurance to EMPLOYER. EMPLOYER shall pay to EMPLOYEE
the amount of$500.00 per month to compensate EMPLOYEE for the use of
EMPLOYEE's automobile for City business.
SECTION 10. BENEFITS GENERALLY
A. Except as specifically provided otherwise in this Agreement, EMPLOYEE
shall receive all employment benefits that have been approved by COUNCIL for other
management employees, as set forth in the City's Management Employee Personnel
Rules and Resolution No. 97-93, as they now exist and from time to time may be
amended by COUNCIL.
The provisions of this Section 10 exclude any adjustments to EMPLOYEE'S
salary; such increases, if any, shall be determined by the COUNCIL, in its sole
discretion, in accordance with the provisions of paragraph B of Section 6.
B. EMPLOYEE shall accrue vacation leave at the rate of ten hours per
month. The vacation leave granted to EMPLOYEE may be used by EMPLOYEE at her
discretion, considering always the best interests of the City. EMPLOYEE shall notify
the Mayor when vacation leave in excess of three concurrent days is to be taken. If not
used, said vacation leave shall continue to accrue, except that such entitlement shall
not accrue beyond the maximum limits established for other management employees,
unless specifically authorized by the COUNCIL. Upon termination of EMPLOYEE's
employment under this Agreement, EMPLOYER shall pay EMPLOYEE, at the rate of
1371786.4 -5 -
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compensation then beingearned by EMPLOYEE, for all accrued and unused vacation
p
leave entitlement in accordance with the then current policy established for other
management employees.
C. CITY recognizes that EMPLOYEE may incur certain expenses of a non-
personal and job related nature. CITY agrees to reimburse or to pay such business
expenses, which are incurred and submitted according to CITY's normal expense
reimbursement procedures. To be eligible for reimbursement, all expenses must be
supported by documentation meeting CITY's normal requirements and must be
submitted within time limits established by CITY.
D. Bonding. CITY shall bear the full costs of any fidelity or other bonds
required of EMPLOYEE (if any) under any law or ordinance by virtue of her employment
as City Manager.
E. EMPLOYEE may participate in the deferred compensation plan(s) to
which City employees may contribute in the same manner as other City employees. In
addition to any EMPLOYEE contributions, EMPLOYER will make a monthly
EMPLOYER contribution of$1,250 prorated and paid on CITY'S normal paydays and
prorated for any partial months of employment. In the event employer contributions will
cause employee to exceed the contribution limit set by federal law for any applicable
employer sponsored plan, EMPLOYER's contribution under this Employment
Agreement will be limited to the amount that will bring total contributions to the federal
contribution limit. EMPLOYER's contributions under this Paragraph E will commence
as of March 16, 2010.
F. EMPLOYEE is granted 80 hours of administrative leave for each City
fiscal year that EMPLOYEE is employed by EMPLOYER. EMPLOYEE shall consider
the workload and obligations of the City Manager's Department and the best interests
of the City when EMPLOYEE schedules her administrative leave. Like other City
employees, EMPLOYEE's administrative leave may not be accumulated or carried over
to the next fiscal year. Upon termination of EMPLOYEE's employment, EMPLOYEE
shall not be granted and, accordingly is not entitled to be paid for, unused
administrative leave. Administrative leave may be used for medical appointments,
disability leave and leaves provided pursuant to the federal and California family and
medical leave statutes.
SECTION 11. DUES AND SUBSCRIPTIONS
EMPLOYER agrees to budget and pay for the professional dues and
subscriptions of EMPLOYEE necessary for her continuation and full participation in
national, regional, state and local associations and organizations necessary and
desirable for her continued professional participation, growth and advancement,
including the acceptance and performance of duties related to such associations and
organizations and for the good of EMPLOYER.
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SECTION 12. PROFESSIONAL DEVELOPMENT
EMPLOYER hereby agrees to budget for and pay the travel and
subsistence expenses in accordance with the COUNCIL-approved travel policy, as
contained in the Administrative Manual, for professional and official travel and meetings
and occasions adequate to continue the professional development of EMPLOYEE and
to adequately pursue necessary official duties and other functions for EMPLOYER.
SECTION 13. INDEMNIFICATION
Except as otherwise permitted, provided, limited or required by law,
including, without limitation, California Government Code Sections 825, 995, and 995.2
through 995.8, the CITY will defend and pay any costs and judgments assessed against
EMPLOYEE arising out of an act or omission by EMPLOYEE occurring in the course
and scope of EMPLOYEE's performance of her duties under this Agreement.
SECTION 14. OTHER TERMS AND CONDITIONS OF EMPLOYMENT
The COUNCIL, in consultation with EMPLOYEE, shall fix any other terms
and conditions of employment as it may determine from time to time to be appropriate,
relating to the performance of EMPLOYEE, provided such terms and conditions are not
inconsistent with or in conflict with the provisions of this Agreement, City ordinances or
any other law.
SECTION 15. NOTICES
Any notice to City under this Agreement shall be given in writing to City, either by
personal service or by registered or certified mail, postage prepaid, addressed to the
City Clerk at the address listed below. A courtesy copy shall be given to the City
Attorney in a like manner. Any such notice to Employee shall be given in a like manner
and, if mailed, shall be addressed to Employee at her home address then shown in
City's files. EMPLOYEE's current address is set forth below. For the purpose of
determining compliance with any time limit in this Agreement, a notice shall be deemed
to have been duly given (a) on the date of delivery, if served personally on the party to
whom notice is to be given, or (b) on the third calendar day after mailing, if mailed to the
party to whom the notice is to be given in the manner provided in this section.
EMPLOYER: Mayor and City Council
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
1371786.4 -7-
EMPLOYEE: Carolyn R. Lehr
34 Via Del Cielo
Rancho Palos Verdes, California 90275
SECTION 16. GENERAL PROVISIONS
A. This Agreement contains the entire agreement between the parties and
supersedes all prior oral and written agreements, understandings, commitments, and
practices between the parties concerning EMPLOYEE's employment with CITY. Each
party to this Agreement acknowledges that no representations, inducements, promises
or agreements, oral or written, have been made by any party, or anyone acting on
behalf of any party, which are not embodied herein, and that no other agreement,
statement, or promise not contained in this Agreement shall be valid or binding on
either party.
B. No amendments to this Agreement may be made except in writing, signed
and dated by CITY and EMPLOYEE.
C. This Agreement shall be binding on and inure to the benefit of the heirs at
law and executors of EMPLOYEE.
D. This Agreement shall become effective commencing the 5th day of July,
2011.
E. Notwithstanding anything in this agreement to the contrary, unless
EMPLOYEE agrees otherwise or unless notice of termination has been given prior to
any City Council election, EMPLOYEE shall be retained for a minimum of three months
following any such election in order to provide the new council members an opportunity
to work with and observe EMPLOYEE's performance under this Agreement.
F. If any provision of this Agreement, or portion thereof, is held invalid or
unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed
severable and shall 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.
G. This Agreement sets forth the final, complete and exclusive agreement
between EMPLOYER and EMPLOYEE relating to the employment of Employee as City
Manager by CITY. Any prior discussions or representations by or between the parties
are merged into and rendered null and void by this Agreement. The foregoing
notwithstanding, EMPLOYEE acknowledges that, except as expressly provided in this
Agreement, her employment is subject to City's generally applicable rules and policies
pertaining to employment matters, such as those addressing equal employment
opportunity, sexual harassment and violence in the workplace.
1371786.4 - 8 -
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H. This Agreement is made and entered into in the State of California and
shall in all respects be interpreted, enforced and governed under the substantive laws
of the State of California, without giving effect to conflict of laws principles. Any legal
action to enforce the provisions of this Agreement shall be filed in any court of
competent jurisdiction in Los Angeles County.
I. None of the Parties hereto shall be deemed to be the drafter of this
Agreement. The terms of this Agreement shall not be interpreted or construed in favor
of, or against, any Party hereto. Should any provision of this Agreement be found to be
ambiguous in any way, such ambiguity shall not be resolved by construing this
Agreement in favor of or against any Party herein, but rather by construing the terms of
this Agreement as a whole according to their fair meaning.
J. EMPLOYEE acknowledges that she has had the opportunity and has
conducted an independent review of the financial and legal effects of this Agreement.
EMPLOYEE acknowledges that she has made an independent judgment upon the
financial and legal effects of this Agreement and has not relied upon any representation
of CITY, its officers, agents or employees other than those expressly set forth in this
Agreement.
IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes,
California, has caused this Agreement to be signed and executed on its behalf by its
Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed
this Agreement, as of the date and year first above written.
a
Dated: 1 ‘) 1 CITY OF RANCHO PALOS VERDES
g LOYER)
MAYOR
ATTEST:
CITY CLERK
APPROVED AS TO FORM:
Altar '
CITY ATTORNEY
1371786.4 -9-
Dated: 7- 5 - 11 EMPLOYEE
I
CAROLYN R LEHR
1371786.4 - 10-
THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
This agreement is the third amendment to the Employment Agreement
(hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes
(hereinafter referred to as "City") and Carolyn Lehr(hereinafter referred to as
"Employee"). This Third Amendment to Employment Agreement is made and entered
into as of March 16, 2010.
WHEREAS, pursuant to Section 7 of the Agreement, the City Council of
City conducted a review Employee's performance at a duly noticed closed session; and
WHEREAS, the City Council finds that, based on the review of
Employee's performance, the City Council desires to increase Employee's annual salary
and make other revisions to the Agreement;
NOW, THEREFORE, the parties hereto agree that:
Section 1. Section 2 of the Agreement is hereby amended to read as
follows:
"SECTION 2. TERM
"A. Unless sooner terminated, as provided in this Agreement, the term of
this Agreement shall terminate on June 30, 2014. This paragraph shall not be
construed as preventing the parties from amending, extending or modifying the
Agreement by a written instrument executed by both of the parties. The question of
further extension or non-extension of the term hereof shall be considered by the
COUNCIL at the time of the annual evaluation of EMPLOYEE as provided in Section 7
hereof.
"B. This Agreement shall automatically renew as provided herein
unless the CITY gives the EMPLOYEE timely notice of non-renewal. The CITY must
give EMPLOYEE written notice of non-renewal at least eighteen (18) calendar months
prior to the Termination Date or any succeeding Termination Date. Unless such notice
of non-renewal is timely given, this Agreement shall automatically renew for an
additional three-year term, and a new Termination Date shall be accordingly
established. EMPLOYEE shall give not less than ninety days prior written notice to the
City Council of the deadline by which written notice of non-renewal of this Agreement
must be given by CITY to EMPLOYEE. Accordingly, under the current term of this
Agreement, EMPLOYEE shall provide written notice to the City Council on or before
October 1, 2012, of the CITY's deadline on December 30, 2012, to give EMPLOYEE
written notice of non-renewal.
"C. Nothing in this Agreement shall prevent, limit or otherwise interfere
with the right of the COUNCIL to terminate the services of EMPLOYEE at any time upon
ninety (90) days advance written notice, subject only to the provisions set forth in
Section 4, paragraphs A and B of this Agreement.
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5 - 17
"D. EMPLOYEE agrees to remain in the exclusive employment of
EMPLOYER until June 30, 2014, and neither to accept other employment nor to
become employed by any other employer while employed by EMPLOYER. The
prohibition against other employment shall not be construed to prevent occasional
teaching, writing, or consulting performed on Employee's time off in accordance with
Section 8 of this Agreement."
Section 2. Section 6 of the Agreement is hereby amended to read as
follows:
"SECTION 6. SALARY
"A. Effective April 1, 2010, EMPLOYER agrees to pay EMPLOYEE for her
services rendered pursuant hereto, a monthly salary of$15,173.00 subject to legally
permissible or required deductions and withholding prorated and paid on CITY'S normal
paydays. EMPLOYEE'S salary is compensation for all hours worked. EMPLOYEE
shall be exempt from the overtime pay provisions of California law, if any, and federal
law.
"B. In recognition of accomplishments and excellent performance, merit
increases may be granted to EMPLOYEE by COUNCIL. EMPLOYER agrees that
EMPLOYEE'S salary shall be reviewed at the same time that EMPLOYEE'S
performance is reviewed pursuant to Section 7.
"C. In connection with the performance evaluation pursuant to Section 7,
COUNCIL may consider a bonus, incentive award or performance pay for achievement
of goals and objectives during the prior year. The decision to grant a bonus, incentive
award or performance pay shall be in sole and absolute discretion of COUNCIL."
Section 3. Subsection F is added to Section 10 (titled Benefits Generally)
to read as follows:
"F. EMPLOYEE may participate in the deferred compensation plan(s)to
which City employees may contribute in the same manner as other City employees. In
addition to any EMPLOYEE contributions, EMPLOYER will make a monthly
EMPLOYER contribution of$1,250 prorated and paid on CITY'S normal paydays and
prorated for any partial months of employment. In the event employer contributions will
cause employee to exceed the contribution limit set by federal law for any applicable
employer sponsored plan, employer's contribution under this Employment Agreement
will be limited to the amount that will bring total contributions to the federal contribution
limit. Employer's contributions under this Paragraph F will commence as of the effective
date of this Third Amendment."
Section 4. Except as expressly amended by this Third Amendment to
Employment Agreement, all of the provisions of the Agreement, as previously amended
by the First and Second Amendments, shall remain in full force and effect.
1213649
5 - 18
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IN WITNESS WHEREOF, the City Council of the City of Rancho Palos
Verdes, California, has caused this Third Amendment to Employment Agreement to be
signed and executed on its behalf by its Mayor, and duly attested by its City Clerk, and
EMPLOYEE has signed and executed this Third Amendment to Employment
Agreement, as of the date and year first above written.
Dated: EMPLOYER
CITY OF RANCHO PALOS VERDES
OR
ATTEST:
CITY CLERK
Dated: t 1 — 10 EMPLOYEE
OAAA:e4&c2/k
CAROLYN R. LEHR
1213649
5 - 19
► r:
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
This agreement is the second amendment to the Employment Agreement
(hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes
(hereinafter referred to as "City") and Carolyn Lehr (hereinafter referred to as
"Employee"). This Second Amendment to Employment Agreement is made and
entered into as of March 3, 2009.
WHEREAS, pursuant to Section 7 of the Agreement, the City Council of
City conducted a review Employee's performance at a duly noticed closed session; and
WHEREAS, the City Council finds that, based on the review of
Employee's performance, the City Council desires to increase Employee's annual salary
and make other revisions to the Agreement;
NOW, THEREFORE, the parties hereto agree that:
Section 1. Paragraph A of Section 4 of the Agreement, entitled
Termination and Severance Pay, is hereby amended to read as follows:
"A. Consistent with California Government Code Section 36506, EMPLOYEE
is appointed by and serves at the pleasure of the City Council as an at-will employee.
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
CITY to terminate this Agreement and the employment of EMPLOYEE, with or without
cause. 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 this Section 4. In the event that EMPLOYEE is
terminated by the COUNCIL before expiration of the aforementioned term of
employment without cause and at or during such time that EMPLOYEE is willing and
able to perform her duties under this Agreement, then in that event, EMPLOYER agrees
to pay EMPLOYEE a lump sum cash payment equal to eighteen (18) months salary;
provided, however, that if at the time of termination of the Agreement, the unexpired
term of the Agreement is less than eighteen (18) months, then the cash payment shall
be equal to Employee's monthly salary at the time of termination multiplied by the
number of months of the unexpired term of the Agreement. Also, in the event
EMPLOYEE is covered under EMPLOYER's health plan(s) and in addition to the
described lump sum payment, Employer shall provide for continuation of health plans
for six months after the date of termination or until EMPLOYEE obtains other
employment, whichever occurs first. EMPLOYER, at its option, may provide for health
benefit continuation through appropriate EMPLOYER contribution to COBRA coverage
or by maintaining EMPLOYEE on EMPLOYER's payroll roster for such insurance
benefits only. Only in the event that EMPLOYEE is terminated because of a material
breach of this Agreement on her part, or because she has been convicted of a felony or
any crime involving moral turpitude during the term hereof, shall EMPLOYER be
relieved of the obligation to pay EMPLOYEE the benefits or the severance sum
designated in this paragraph."
Section 2. Section 6 of the Agreement is hereby amended to read as
follows:
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"SECTION 6. SALARY
"A. Effective April 1, 2008, EMPLOYER agrees to pay EMPLOYEE for her
services rendered pursuant hereto, an annual salary of$179,388.00 subject to legally
permissible or required deductions and withholding prorated and paid on CITY'S normal
paydays. EMPLOYEE'S salary is compensation for all hours worked. EMPLOYEE
shall be exempt from the overtime pay provisions of California law, if any, and federal
law.
"B. In recognition of accomplishments and excellent performance, merit
increases may be granted to EMPLOYEE by COUNCIL. EMPLOYER agrees that
EMPLOYEE'S salary shall be reviewed at the same time that EMPLOYEE'S
performance is reviewed pursuant to Section 7.
"C. In connection with the performance evaluation pursuant to Section 7,
COUNCIL may consider a bonus, incentive award or performance pay for achievement
of goals and objectives during the prior year. The decision to grant a bonus, incentive
award or performance pay shall be in sole and absolute discretion of COUNCIL."
Section 3. Except as expressly amended by this Second Amendment to
Employment Agreement, all of the provisions of the Agreement shall remain in full force
and effect.
IN WITNESS WHEREOF, the City Council of the City of Rancho Palos
Verdes, California, has caused this Second Amendment to Employment Agreement to
be signed and executed on its behalf by its Mayor, and duly attested by its City Clerk,
and EMPLOYEE has signed and executed this Second Amendment to Employment
Agreement, as of the date and year first above written.
Dated: EMPLOYER
CITY OF RANCH* PALOS VERDES
gip
"4/(MAYOR
ATTEST:
_//.4i i � //
CITY CLER
Dated: EMPLOYEE
CAROLYN R. LEHR
1120299 . 2
FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
This agreement is the first amendment to the Employment Agreement
(hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes
(hereinafter referred to as "City") and Carolyn Lehr (hereinafter referred to as
"Employee"). This First Amendment to Employment Agreement is made and entered
into as of March 24, 2008.
WHEREAS, pursuant to Section 7 of the Agreement, the City Council of
City conducted a review Employee's performance at several duly noticed closed
sessions; and
WHEREAS, the City Council finds, that based on the review of
Employee's performance, the City Council desires to increase Employee's annual salary
and make other revisions to the Agreement;
NOW, THEREFORE, the parties hereto agree that:
Section 1. Section 2 of the Agreement is hereby amended to read as
follows:
"SECTION 2. TERM
"A. Unless sooner terminated, as provided in this Agreement, the term of
this Agreement shall be from March 6, 2007, until June 30, 2011. This paragraph shall
not be construed as preventing the parties from amending, extending or modifying the
Agreement by a written instrument executed by both of the parties. The question of
extension or non-extension of the term hereof shall be considered by the COUNCIL at
the time of the annual evaluation of EMPLOYEE as provided in Section 7 hereof.
"B. This Agreement shall automatically renew as provided herein
unless the CITY gives the EMPLOYEE timely notice of non-renewal. The CITY must
give EMPLOYEE written notice of non-renewal at least eighteen (18) calendar months
prior to the initial Termination Date or any succeeding Termination Date. Unless such
notice of non-renewal is timely given, this Agreement shall automatically renew for an
additional three-year term, and a new Termination Date shall be accordingly
established.
"C. Nothing in this Agreement shall prevent, limit or otherwise interfere
with the right of the COUNCIL to terminate the services of EMPLOYEE at any time upon
ninety (90) days advance written notice, subject only to the provisions set forth in
Section 4, paragraphs A and B of this Agreement.
"D. EMPLOYEE agrees to remain in the exclusive employment of
EMPLOYER until June 30, 2011, and neither to accept other employment nor to
become employed by any other employer while employed by EMPLOYER. The
prohibition against other employment shall not be construed to prevent occasional
teaching, writing, or consulting performed on Employee's time off in accordance with
Section 8 of this Agreement."
1042980 .2
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Section 2. Paragraph A of Section 4 of the Agreement, entitled
Termination and Severance Pay, is hereby amended to read as follows:
"A. Consistent with California Government Code Section 36506, EMPLOYEE
is appointed by and serves at the pleasure of the City Council as an at-will employee.
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
CITY to terminate this Agreement and the employment of EMPLOYEE, with or without
cause. 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 this Section 4. In the event that EMPLOYEE is
terminated by the COUNCIL before expiration of the aforementioned term of
employment without cause and at or during such time that EMPLOYEE is willing and
able to perform her duties under this Agreement, then in that event, EMPLOYER agrees
to pay EMPLOYEE a lump sum cash payment equal to eighteen (18) months salary;
provided, however, that if at the time of termination of the Agreement, the unexpired
term of the Agreement is less than eighteen (18) months, then the cash payment shall
be equal to Employee's monthly salary at the time of termination multiplied by the
number of months of the unexpired term of the Agreement. Also, in such event, and in
addition to the herein above described lump sum cash payment, EMPLOYER shall
maintain EMPLOYEE on EMPLOYER'S payroll roster, but only for insurance benefits,
for six months after the date of termination or until EMPLOYEE obtains other
employment, whichever first occurs. Only in the event that EMPLOYEE is terminated
because of a material breach of this Agreement on her part, or because she has been
convicted of a felony or any crime involving moral turpitude during the term hereof, shall
EMPLOYER be relieved of the obligation to pay EMPLOYEE the benefits or the
severance sum designated in this paragraph."
Section 3. Section 6 of the Agreement is hereby amended to read as
follows:
"SECTION 6. SALARY
"A. Effective April 1, 2008, EMPLOYER agrees to pay EMPLOYEE
for her services rendered pursuant hereto, an annual salary of$163,000.00
subject to legally permissible or required deductions and withholding prorated
and paid on CITY'S normal paydays. EMPLOYEE'S salary is compensation for
all hours worked. EMPLOYEE shall be exempt from the overtime pay provisions
of California law, if any, and federal law.
"B. In recognition of accomplishments and excellent performance,
merit increases may be granted to EMPLOYEE by COUNCIL. EMPLOYER
agrees that EMPLOYEE'S salary shall be reviewed at the same time that
EMPLOYEE'S performance is reviewed pursuant to Section 7."
Section 4. Section 9 of the Agreement is hereby amended to read as
follows:
1042980 . 2
"SECTION 9. AUTOMOBILE
"EMPLOYEE shall provide and have at her disposal for use for City
business a clean, presentable and well-maintained automobile. EMPLOYEE shall be
responsible for all costs of maintenance and operation of said vehicle. During the term
of this Agreement, EMPLOYEE shall secure and maintain, at EMPLOYEE'S expense,
automobile insurance in accordance with the requirements of Rancho Palos Verdes
Administrative Instruction No. 8-02, and the minimum insurance requirements
established by State law, whichever is greater, and shall provide satisfactory evidence
of such automobile insurance to EMPLOYER. EMPLOYER shall pay to EMPLOYEE
the amount of$500.00 per month to compensate EMPLOYEE for the use of
EMPLOYEE'S automobile for City business."
Section 5. Except as expressly amended by this First Amendment to
Employment Agreement, all of the provisions of the Agreement shall remain in full force
and effect.
IN WITNESS WHEREOF, the City Council of the City of Rancho Palos
Verdes, California, has caused this First Amendment to Employment Agreement to be
signed and executed on its behalf by its Mayor, and duly attested by its City Clerk, and
EMPLOYEE has signed and executed this First Amendment to Employment
Agreement, as of the date and year first above written.
Dated: fritl-f a, .29 ?. O D.F EMPL•
CITY O RA HO PAL'• VERDES
1
Ad11._ Ob
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AYOR
ATTEST:
CPZIW
CITY CLERK
Dated: f .q 3-OO V EMPLOYEE
CAROLYN . L HR
1042980 .2
CITY OF RANCHO PALOS VERDES
MANAGEMENT ACHIEVEMENT PLAN
Carolyn Lehr
City Manager
Plan Period: March 12, 2007—September 30, 2007
Part I. Financial Management
Part II. Major Work Assignments
Part III. Constituency Relations
Part IV. Commitment to Excellence
Submitted:
CAAIL. JUJIA.) -5"--aq — 07
City Manager Date
A r
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Mayor on behalf of City Council Date
Recorded:
AALP/Z04.4 6/010 7
City Clerk Date
, . ,
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Part I. Financial Management
A. Identify cost savings and revenue enhancement measures for
Council consideration to optimize service value and minimize
depletion of fund balances.
1. Present at least one new revenue source or significant cost savings
measure.
Goal: $50,000 in new revenue or savings measure.
Lead: City, Manager's Office and Finance/IT
Support: All Departments
2. Pursue all reasonable grant opportunities. Consider whether to secure
the services of a grants search and administration consultant.
Goal: Three grant applications submitted
Lead: City Manager's Office and Finance/IT
Support: All Departments
3. Implement the transition from contract building safety services to in-
house staffing in order to achieve an operational savings and improved
customer service.
Goal: Recruitment for Bldg. Official complete; and recruitment for
Inspectors underway.
Goal: Public handout revised to inform homeowners of building
requirements at the Planning stage, independent of
contractor communication.
Lead: Planning and Building
Support: City Manager's Office
B. Annual Budget Preparation
1. Complete the review and update of the Draft 2007 Five-Year Financial
Model, with approval by the FAC prior to the May 29 City Council
Budget Workshop.
Goal: Present to Council an updated Five-Year Financial Model
that has been reviewed by the FAC, by the June 19 Budget
Adoption Hearing.
Lead: Finance/IT
2. Present a draft budget for the May 29 Budget Workshop that
incorporates Council directives from the Tactical and Budget Policy
.
Workshop as well as prudent and defendable cost and revenue
estimates for all funds.
Goal: Measured by Council judgment based on directives to date.
Lead: City Manager and Finance/IT
3. Incorporate anticipated cost of newly acquired open space
maintenance and management, in relation to the NCCP commitment.
Goal: Assessment and funding for initial needs and requirements
that incorporate NCCP input.
Lead: DPW
Support: Finance/IT
Part II. Major Work Assignments
A. Tactical: Continue the Water Quality and Flood Protection Program
1. On July 1, 2007, transfer $3 million of General Fund reserves to the
Water Quality and Flood Protection fund to finance the McCarrell
Canyon project and other high-priority projects that shall be included in
the FY07-08 budget.
Goal: Complete the transfer.
Goal: Define the work program.
Lead: Finance/IT
Support: Public Works
2. Develop a modification of the Ordinance that established an annual
User Fee to require a 10-year sunset and a voter-enacted oversight
committee for consideration by the voters on November 6, 2007.
Goal: Draft the ordinance for Council adoption by July 07.
Goal: Put the Oversight Committee in place and operational.
Lead: Finance/IT
Support: City Attorney and Public Works
3. By June 1, 2007, develop a methodology to update the public in a
summary fashion on the status of the Water Quality and Flood
Protection projects, including total costs, estimated future costs and
the proposed frequency for updating the information and begin
disseminating a comprehensive public information plan about the
Program.
Goal: By July 1 2007, post specific and up-to-date storm drain
.
project progress on City website to inform the public.
Goal: Form the five-member Oversight Committee with structure
and work plans in place, such that by the June 19th council
meeting, the committee can consider making a
recommendation on the user fee rate to Council for FY 07-
08.
Goal: Create a comprehensive public education program on Water
Quality and Flood Protection by August, in order to provide
factual and objective information to staff, City Council,
community leaders and the residents.
Goal: Complete the Fee Loss Impact Analysis in conjunction with
outside consultant and the Finance Advisory Committee for
Council presentation in the August-September timeframe, to
include background for public education.
Lead: Finance/IT
Support: Public Works, City Attorney
B. Tactical: Reduce Speeding and Control Parking in Residential
Neighborhoods
1. By July 31, 2007, the Traffic Safety Commission will report to the City
Council on plans to address traffic calming and to control parking in
residential neighborhoods.
Goal: Present draft Traffic Calming Program to Council by July 31,
2007.
Lead: Public Works
C. Tactical: Prepare a Civic Center Master Plan and Facilitate Active
Recreation at Upper Hesse Park
1. By April 30, 2007, establish a Civic Center Master Plan Council
subcommittee to meet and confer with other parties that may have
interest in making donations or pursuing joint ventures with the City to
develop the Upper Point Vicente/Civic Center property.
Goal: Appoint Council subcommittee
Goal: Hold initial meetings with potential donors to encourage
donations to address community needs and priorities.
•
Lead: City Manager and Council Subcommittee
Support: City Attorney and All Departments
2. By May 29, 2007, work with the Palos Verdes Peninsula Girls' Softball
League to update the budget for two softball fields at Upper Hesse
Park and determine what level of funding the City is willing to
contribute to the completion of the fields.
Goal: Confer with League Management to identify alternatives for
City assistance and present to Council for further direction
by May 29, 2007.
Lead: City Manager's Office
Support: Public Works
3. By May 29, 2007, include funding in the FY 07-08 Budget to complete
a Utilities Study of the Upper Point Vicente/Civic Center property to
determine the location of utility connections and key underground
infrastructure.
Goal: Provide appropriate funding in the proposed budget.
Lead: Finance/IT
D. Tactical: Improve Emergency Services and Preparedness
1. By July 30, 2007, complete the installation of the radio tower and begin
full operation of the Emergency Communications Center on the Civic
Center site.
Goal: Install radio tower to be operational by July 30, 2007.
Lead: City Manager's Office
Support: Public Works Department
2. By August 30, 2007, present a management plan to City Council for
the pre-positioned emergency supply and equipment caches.
Goal: Management Plan to City Council by August 30, 2007
Lead: City Manager's Office
Support: Public Works and Planning
E. Tactical: Bring Eastview into Palos Verdes Peninsula Unified School
District
1. By May 30, 2007, work with Assemblymember Karnette to set a
meeting date between the City Council Ad Hoc Committee and PVUSD
Board members to dialog on the issue of Eastview school district
boundary; and apprise the LAUSD Superintendent of the
developments.
Goal: Establish a meeting date with PVUSD by May 30, 2007 and
apprise LAUSD Superintendent of any developments. If
deemed appropriate, coordinate draft legislation by
December.
Lead: City Manager's Office
Interdependency: PVUSD and LAUSD Boards
Assemblymember Betty Karnette
RPV City Council
F. IT Management
1. Improve the disaster recovery plan for the Sungard HTE accounting
system and integrate it with the City's overall IT Disaster Recovery
Plan, by end of September 2007.
Goal: By September 30, apprise Council in Weekly Report that the
plan is in effect.
Lead: Finance/IT
2. Implement Phase 1 of the Laserfiche Document Management system
by end of September.
Goal: By September 30, begin to create electronic Council meeting
agendas using the Laserfiche Management System.
Lead: City Clerk
Support: Finance/IT
NOTE: Direction for an IT A udit/RFP will be addressed in the Management
Audit, which is funded for FY 07-08.
G. Community Channel 33
1. Incorporate Channel 33 into the City public communications plan to
disseminate pertinent information on a regular basis, utilizing public
service announcements, video bulletin board and other programming
formats as appropriate. Send announcements as a matter of routine
(emergency preparedness, employment, events, meetings etc.) and
feature topics in City Talk at least six times per year.
Goal: Measured by judgment of Council based on activity reports.
Lead: Channel 33 Manager and City Manager's Office
Support: All Departments and City Council
2. Channel 33 to present to Council a draft Business Plan to cover the
next 18 months to two years of operations, with a perspective on long
term positioning and implications.
Goal: Draft Business Plan to be presented to Council by July 1,
2007.
Lead: Channel 33 Manager
Part III. Constituent Relations
A. Employee Relations
1. Make the Council approved adjustments to employee salary ranges, to
be effective July 1.
Goal: Make adjustments based on salary survey and incorporate
into proposed budget by May 29.
Lead: City Manager's Office
Support: Finance/IT
2. Implement the Council approved pension plan changes as of August
30, 2007, as well as the defined contribution post-retirement account to
be effective January 1, 2008.
Goal: Revision pension plan in place by August 30 and post
retirement health plan in place by January 1, 2008.
Lead: City Manager's Office
Support: Finance/IT
Interdependency: Approval vote by employees
3. Establish a positive and respectful relationship with City staff, at all
levels. Be available to staff on a daily basis to encourage high work
standards and address work issues.
Goal: Measured by judgment of Council
Lead: City Manager
4. Coach Department Directors on the development of their own
individual Management Achievement Plans that incorporate
operational, fiscal and service goals consistent with Council and City
Manager directives, regulatory requirements, and responsive to
community expectations. All MAPS to be developed for FY 07-08 by
September 30, 2007.
Goal: Development of Achievement Plans by September 30
Lead: City Manager
Support: All Department Directors
B. Council Relations
1. Keep the Mayor and Council members well informed of current issues
and developments of interest when they first arise in the City
Manager's office.
2. Immediately apprise the Mayor and Council members of emergencies,
major incidents and significant crimes to enable them to be involved
and respond to residents, other agencies and the media in a timely
manner.
3. Provide advance meeting packets with agendas coordinated with the
Mayor that lead to productive Council meetings. Staff reports should be
consistent in format, and offer reasonable alternatives properly
detailed--and a clear staff recommendation where appropriate.
Goal: All goals above to be measured by Council judgment
Lead: City Manager
Support: All Departments
C. Community Relations
1. Serve citizens with courtesy and impartiality at all times.
2. Participate in appropriate committee meetings, make myself available
to community groups and individual citizens with concerns, and
establish relationships with leaders of regional public agencies of
interest to RPV.
3. Respond to service requests and complaints in a timely manner, such
that no more than one formal complaint is lodged by the public and
verified as valid—during the evaluation period for each major service
area/department.
4. Publish a quarterly newsletter that is informative, readable and
represents the City's high standards.
5. Cultivate positive relations with the media that results in important
information being shared with readers and coverage that reinforces the
City's commitment to its residents.
Goal: All goals above to be measured by Council judgment
Lead: City Manager
Support: All Departments
Part IV. "Commitment to Excellence" Standards
1. Comply with applicable ordinances, laws, policies, and operating
procedures, and ensure compliance by staff.
2. Observe changing conditions in the operations and in community
needs, and initiate service and policy changes as appropriate.
3. Display vision, creativity and enthusiasm. Function as a team player.
4. Maintain a vigorous and productive work schedule.
5. Strive to achieve an ever-greater level of service to the City.
Goal: All goals above to be measured by Council judgment
Lead: City Manager
Support: All Departments
PAY FOR PERFORMANCE EVALUATION
The Employment Agreement dated March 6, 2007 specified that the City
Council and City Manager (Employee) will agree on the performance goals
and criteria to be used to evaluate the City Manager's performance for the
first six-month employment period. The Council may wish to take into account
both effort and success at achieving goals in considering performance and
eligibility for salary adjustment.
Judgment of City Council for Plan Period March 12—September 30, 2007:
Appr• :d• � Read and Accepted:
Mayor on Behalf of City Co cil City Manager
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1111)•
EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF RANCHO PALOS VERDES AND CAROLYN R. LEHR
This Employment Agreement("Agreement") is made and entered into as of March 6,
2007,by and between the City of Rancho Palos Verdes, a California municipal corporation
("CITY"or"EMPLOYER"), and Carolyn R. Lehr, an individual ("EMPLOYEE"). CITY and
EMPLOYEE are referred to collectively as the Parties.
RECITALS
A. After a formal recruitment and selection process, the City Council of the City of Rancho
Palos Verdes ("City Council") appointed EMPLOYEE as City Manager.
B. EMPLOYEE represents that she has the requisite specialized skills, training,
certifications, licenses, and authorizations and is otherwise qualified to serve as City Manager.
C. CITY and EMPLOYEE wish to enter into an Employment Agreement that sets forth the
rights and obligations of the parties and that will supercede all prior negotiations, discussions or
agreements.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions
herein contained, CITY and EMPLOYEE agree as follows:
SECTION 1. DUTIES
EMPLOYER hereby agrees to retain the services of EMPLOYEE as City
Manager of the City of Rancho Palos Verdes to perform the functions and duties specified in
Chapter 2.08 of the Rancho Palos Verdes Municipal Code, and to perform such other legally
permissible and proper duties and functions as the COUNCIL shall from time to time assign.
EMPLOYEE shall also serve as Executive Director of any authority or agency created by or
staffed by EMPLOYER, including the Rancho Palos Verdes Redevelopment Agency and the
Rancho Palos Verdes Improvement Authority.
SECTION 2. TERM
A. TERM. Unless sooner terminated, as provided in this Agreement, the term of this
Agreement shall be for three (3)years, commencing from the date first written above.
This paragraph shall not be construed as preventing the parties from amending, extending or
modifying the Agreement by a written instrument executed by both of the parties. The question
of extension or non-extension of the term hereof shall be considered by the COUNCIL at the
time of the annual evaluation of EMPLOYEE as provided in Section 7 hereof.
955179.5 - 1 -
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B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of the COUNCIL to terminate the services of EMPLOYEE at any time upon ninety(90) days
advance written notice, subject only to the provisions set forth in Section 4,paragraphs A and B
of this Agreement.
C. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until
March 6, 2010, and neither to accept other employment nor to become employed by any other
employer while employed by EMPLOYER. The prohibition against other employment shall not
be construed to prevent occasional teaching,writing, or consulting performed on EMPLOYEE's
time off in accordance with Section 8 of this Agreement.
SECTION 3. SUSPENSION
EMPLOYER may suspend EMPLOYEE in accordance with the provisions of
Section 2.08.130 of Chapter 2.08 of Title 2 of the Rancho Palos Verdes Municipal Code.
SECTION 4. TERMINATION AND SEVERANCE PAY
A. Consistent with California Government Code Section 36506, EMPLOYEE is
appointed by and serves at the pleasure of the City Council as an at-will employee. Nothing in
this Agreement shall prevent, limit or otherwise interfere with the right of CITY to terminate this
Agreement and the employment of EMPLOYEE,with or without cause. 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 this Section 4. In the
event that EMPLOYEE is terminated by the COUNCIL before expiration of the aforementioned
term of employment without cause and at or during such time that EMPLOYEE is willing and
able to perform her duties under this Agreement, then in that event, EMPLOYER agrees to pay
EMPLOYEE a lump sum cash payment equal to six (6)months salary; provided,however, that if
at the time of termination of the Agreement, the unexpired term of the Agreement is less than six
(6)months, then the cash payment shall be equal to Employee's monthly salary at the time of
termination multiplied by the number of months of the unexpired term of the Agreement. Also,
in such event, and in addition to the herein above described lump sum cash payment,
EMPLOYER shall maintain EMPLOYEE on EMPLOYER's payroll roster,but only for
insurance benefits, for six months after the date of termination or until EMPLOYEE obtains
other employment, whichever first occurs. Only in the event that EMPLOYEE is terminated
because of a material breach of this Agreement on her part, or because she has been convicted of
a felony or any crime involving moral turpitude during the term hereof, shall EMPLOYER be
relieved of the obligation to pay EMPLOYEE the benefits or the severance sum designated in
this paragraph.
B. In the event EMPLOYER at any time during the time of this agreement reduces
the salary or other financial benefits of EMPLOYEE in a greater percentage than an applicable
across the board reduction for all employees of EMPLOYER, or in the event EMPLOYER
refuses, following written notice, to comply with any other provision herein benefiting
955179.5 -2 -
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EMPLOYEE, or in the event EMPLOYEE resigns following a suggestion or request by the
COUNCIL that she resign,then EMPLOYEE may, at her option,be deemed "terminated" within
the meaning and context of the herein severance pay provisions as of the date of such reduction
of benefits, refusal to comply with the provisions of this Agreement, or suggestion or request by
the COUNCIL to resign.
C. In the event EMPLOYEE voluntarily resigns her position with EMPLOYER, then
EMPLOYEE shall give EMPLOYER two (2)months written notice in advance. Additionally, in
the event the EMPLOYEE applies for a position elsewhere during the term of her employment
hereunder and is included on a list of five or fewer candidates still under consideration on such a
list, EMPLOYEE shall promptly give notice thereof to each member of the COUNCIL, which
notice shall be confidential insofar as is permitted by applicable law.
In addition, if EMPLOYEE terminates this Agreement prior to March 6, 2010, EMPLOYEE
shall pay to CITY the pro rata share of CITY'S cost of retaining a professional recruiting firm to
conduct a search for a new City Manager(not to exceed $20,000) and the pro rata share of the
moving expenses and housing allowance that CITY had paid to EMPLOYEE,which are set forth
in Section 10(e) of this Agreement. EMPLOYEE'S pro rata share of these amounts shall be
calculated by dividing the number of days that EMPLOYEE did not serve as City Manager under
this Agreement by 1,095.
If EMPLOYEE terminates this Agreement(thereby terminating EMPLOYEE's Employment),
EMPLOYEE shall not be entitled to any severance.
SECTION 5. DISABILITY
If EMPLOYEE is permanently disabled or is otherwise unable to perform her
duties because of sickness, accident, injury,mental incapacity or health for a period of four
successive weeks beyond any accrued sick leave, EMPLOYER shall have the option to terminate
this agreement, subject to the severance pay requirements of Section 4,paragraph A. However,
EMPLOYEE shall be compensated for any accrued vacation, holiday, administrative leave and
other accrued benefits, if any, in accordance with EMPLOYER's personnel rules,which are
applicable to management employees and in effect at the time of such termination.
SECTION 6. SALARY
A. EMPLOYER agrees to pay EMPLOYEE for her services rendered pursuant
hereto, an annual salary of$150,000.00, subject to legally permissible or required deductions and
withholding, prorated and paid on City's normal paydays. Employee's salary is compensation for
all hours worked. Employee shall be exempt from the overtime pay provisions of California law
(if any) and federal law.
955179.5 -3 -
B. In recognition of accomplishments and excellent performance,merit increases
may be granted to EMPLOYEE by COUNCIL. EMPLOYER agrees that EMPLOYEE'S salary
shall be reviewed at the same time that EMPLOYEE'S performance is reviewed pursuant to
Section 7.
SECTION 7. PERFORMANCE EVALUATION
A. Within one month of the effective date of this Agreement,the COUNCIL and
EMPLOYEE shall jointly establish the performance goals for EMPLOYEE and any specific
criteria that shall be used to evaluate EMPLOYEE'S performance. COUNCIL shall review
EMPLOYEE'S performance within six months after the establishment of those goals to
determine if EMPLOYEE has achieved those goals and if EMPLOYEE'S salary should be
adjusted accordingly. The amount of the salary adjustment, if any, shall be at the sole discretion
of the City Council.
B. Annually, thereafter, the COUNCIL and EMPLOYEE shall define the goals and
objectives that they determine appropriate for the proper operation of the City and to attain the
COUNCIL'S policy objectives. The COUNCIL and EMPLOYEE shall jointly establish the
relative priorities among the various goals and objectives and shall reduce such prioritized goals
and objectives to writing. The goals and objectives shall generally be obtainable within the
specified time limitations and within the annual operating and capital budgets and appropriations
provided. Concurrently with the establishment of the goals and objectives for the City, the
COUNCIL and EMPLOYEE shall establish the performance goals for EMPLOYEE and any
specific criteria that shall be used to evaluate EMPLOYEE'S performance. Said criteria may be
added to or deleted from as the COUNCIL may from time to time determine after consultation
with EMPLOYEE.
C. The COUNCIL shall review and evaluate the performance of EMPLOYEE at least
once annually, on or before March 31st of each year, or as soon thereafter as can be reasonably be
scheduled by the COUNCIL and EMPLOYEE. EMPLOYEE recognizes that as City Manager,
she shall remind COUNCIL of the obligation to conduct the review of EMPLOYEE'S
performance. The parties agree that the COUNCIL'S failure to carry out the provisions of this
Section 7 shall not be deemed a breach of this Agreement.
D. Such evaluation shall be discussed with EMPLOYEE, and an opportunity shall be
provided to EMPLOYEE to respond to any aspect of said evaluation. It is the intention of
COUNCIL that so long as authorized by Section 54957 of the California Government Code, or
any other statutory provision, such performance evaluation shall be conducted in closed session.
SECTION 8. OUTSIDE ACTIVITIES
EMPLOYEE shall not spend more than an average of six hours per week in
teaching, counseling or other non-Employer related business without the prior approval of the
COUNCIL.
955179.5 -4-
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SECTION 9. AUTOMOBILE
EMPLOYEE shall provide and have at her disposal for use for City business a
clean,presentable and well-maintained automobile. EMPLOYEE shall be responsible for all
costs of maintenance and operation of said vehicle. During the term of this Agreement,
EMPLOYEE shall secure and maintain, at EMPLOYEE'S expense, automobile insurance in
accordance with the requirements of Rancho Palos Verdes Administrative Instruction No. 8-02,
and the minimum insurance requirements established by State law, whichever is greater, and
shall provide satisfactory evidence of such automobile insurance to EMPLOYER. EMPLOYER
shall pay to EMPLOYEE the amount of$400.00 per month to compensate EMPLOYEE for the
use of EMPLOYEE's automobile for City business.
SECTION 10. BENEFITS GENERALLY
A. Except as specifically provided otherwise in this Agreement, EMPLOYEE shall
receive all employment benefits that have been approved by COUNCIL for other management
employees, as set forth in the City's Management Employee Personnel Rules and Resolution No.
97-93, as they now exist and from time to time may be amended by COUNCIL.
The provisions of this Section 10 exclude any adjustments to EMPLOYEE'S salary; such
increases, if any, shall be determined by the COUNCIL, in its sole discretion, in accordance with
the provisions of paragraph B of Section 6.
B. EMPLOYEE shall accrue vacation leave at the rate of ten hours per month. The
vacation leave granted to EMPLOYEE may be used by EMPLOYEE at her discretion,
considering always the best interests of the City. EMPLOYEE shall notify the Mayor when
vacation leave in excess of three concurrent days is to be taken. If not used, said vacation leave
shall continue to accrue, except that such entitlement shall not accrue beyond the maximum
limits established for other management employees, unless specifically authorized by the
COUNCIL. Upon termination of EMPLOYEE's employment under this Agreement,
EMPLOYER shall pay EMPLOYEE, at the rate of compensation then being earned by
EMPLOYEE, for all accrued and unused vacation leave entitlement in accordance with the then
current policy established for other management employees.
C. CITY recognizes that EMPLOYEE may incur certain expenses of a non-personal
and job related nature. CITY agrees to reimburse or to pay such business expenses, which are
incurred and submitted according to CITY's normal expense reimbursement procedures. To be
eligible for reimbursement, all expenses must be supported by documentation meeting CITY's
normal requirements and must be submitted within time limits established by CITY.
D. Bonding. CITY shall bear the full costs of any fidelity or other bonds required of
EMPLOYEE (if any)under any law or ordinance by virtue of her employment as City Manager.
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E. In addition to the foregoing, CITY shall pay to EMPLOYEE the actual cost of
hiring a moving company to move the contents of her home,not to exceed$4000, and
EMPLOYEE's cost to obtain temporary housing, not to exceed$1,500.00 per month for a
maximum period of four months.
SECTION 11. DUES AND SUBSCRIPTIONS
EMPLOYER agrees to budget and pay for the professional dues and subscriptions
of EMPLOYEE necessary for her continuation and full participation in national, regional, state
and local associations and organizations necessary and desirable for her continued professional
participation, growth and advancement, including the acceptance and performance of duties
related to such associations and organizations and for the good of EMPLOYER.
SECTION 12. PROFESSIONAL DEVELOPMENT
EMPLOYER hereby agrees to budget for and pay the travel and subsistence
expenses in accordance with the COUNCIL-approved travel policy, as contained in the
Administrative Manual, for professional and official travel and meetings and occasions adequate
to continue the professional development of EMPLOYEE and to adequately pursue necessary
official duties and other functions for EMPLOYER.
SECTION 13. INDEMNIFICATION
Except as otherwise permitted,provided, limited or required by law, including
without limitation California Government Code Sections 825, 995, and 995.2 through 995.8, the
CITY will defend and pay any costs and judgments assessed against EMPLOYEE arising out of
an act or omission by EMPLOYEE occurring in the course and scope of EMPLOYEE's
performance of her duties under this Agreement.
SECTION 14. OTHER TERMS AND CONDITIONS OF EMPLOYMENT
The COUNCIL, in consultation with EMPLOYEE, shall fix any other terms and
conditions of employment as it may determine from time to time to be appropriate,relating to the
performance of EMPLOYEE,provided such terms and conditions are not inconsistent with or in
conflict with the provisions of this Agreement, City ordinances or any other law.
SECTION 15. NOTICES
Any notice to City under this Agreement shall be given in writing to City, either by
personal service or by registered or certified mail,postage prepaid, addressed to the City Clerk at
the address listed below. A courtesy copy shall be given to the City Attorney in a like manner.
Any such notice to Employee shall be given in a like manner and, if mailed, shall be addressed to
Employee at her home address then shown in City's files. EMPLOYEE's current address is set
forth below. For the purpose of determining compliance with any time limit in this Agreement, a
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notice shall be deemed to have been duly given(a) on the date of delivery, if served personally
on the party to whom notice is to be given, or(b) on the third calendar day after mailing, if
mailed to the party to whom the notice is to be given in the manner provided in this section.
EMPLOYER: Mayor and City Council
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes, CA 90275
EMPLOYEE: Carolyn R. Lehr
1350 Wentworth Avenue
Pasadena, California 91106
SECTION 16. GENERAL PROVISIONS
A. This Agreement contains the entire agreement between the parties and supersedes
all prior oral and written agreements, understandings, commitments, and practices between the
parties concerning EMPLOYEE's employment with CITY. Each party to this Agreement
acknowledges that no representations, inducements,promises or agreements, oral or written,
have been made by any party, or anyone acting on behalf of any party, which are not embodied
herein, and that no other agreement, statement, or promise not contained in this Agreement shall
be valid or binding on either party.
B. No amendments to this Agreement may be made except in writing, signed and
dated by CITY and EMPLOYEE.
C. This Agreement shall be binding on and inure to the benefit of the heirs at law and
executors of EMPLOYEE.
D. This Agreement shall become effective commencing the 12th day of March, 2007.
E. If any provision, or any portion thereof, in this Agreement is held
unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof,
shall be deemed severable, shall not be affected and shall remain in full force and effect.
F. Notwithstanding anything in this agreement to the contrary, unless EMPLOYEE
agrees otherwise or unless notice of termination has been given prior to any City Council
election, EMPLOYEE shall be retained for a minimum of three months following any such
election in order to provide the new council members an opportunity to work with and observe
EMPLOYEE's performance under this Agreement.
G. 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
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invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in
full force and effect in all other circumstances.
H. This Agreement sets forth the final, complete and exclusive agreement between
EMPLOYER and EMPLOYEE relating to the employment of Employee as City Manager by
CITY. Any prior discussions or representations by or between the parties are merged into and
rendered null and void by this Agreement. The foregoing notwithstanding, EMPLOYEE
acknowledges that, except as expressly provided in this Agreement, her employment is subject to
City's generally applicable rules and policies pertaining to employment matters, such as those
addressing equal employment opportunity, sexual harassment and violence in the workplace.
I. This Agreement is made and entered into in the State of California and shall in all
respects be interpreted, enforced and governed under the substantive laws of the State of
California, without giving effect to conflict of laws principles. Any legal action to enforce the
provisions of this Agreement shall be filed in any court of competent jurisdiction in Los Angeles
County.
J. None of the Parties hereto shall be deemed to be the drafter of this Agreement.
The terms of this Agreement shall not be interpreted or construed in favor of, or against, any
Party hereto. Should any provision of this Agreement be found to be ambiguous in any way, such
ambiguity shall not be resolved by construing this Agreement in favor of or against any Party
herein,but rather by construing the terms of this Agreement as a whole according to their fair
meaning.
K. EMPLOYEE acknowledges that she has had the opportunity and has conducted an
independent review of the financial and legal effects of this Agreement. EMPLOYEE
acknowledges that she has made an independent judgment upon the financial and legal effects of
this Agreement and has not relied upon any representation of CITY, its officers, agents or
employees other than those expressly set forth in this Agreement.
IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes,
California, has caused this Agreement to be signed and executed on its behalf by its Mayor, and
duly attested by its City Clerk, and EMPLOYEE has signed and executed this Agreement, as of
the date and year first above written.
67',(Dated: � x£ ' t ,)c- cCITY OF RANCHO PALOS VERDES
(E ' o R) .
MAYOR
[Signatures continue]
7
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ATTEST:
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CITY CLE
Dated: EMPLOYEE
I
11. 41.4
CAROL R LEHR
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