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RPVCCA_CC_SR_2014_12_16_04_Contract_with_New_City_ManagerCITY OF RANCHO PALOS VERDES MEMORANDUM TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: CAROL W. LYNCH, CITY ATTORNEY DATE: DECEMBER 16, 2014 SUBJECT: CONTRACT WITH THE NEW CITY MANAGER RECOMMENDATION: Review and approve the contract with the new City Manager. BACKGROUND: On February 2, 2014, the City Council created the City Manager Recruitment Firm Selection Ad Hoc Subcommittee (Council Members Brooks and Campbell). Through the efforts of the Subcommittee and interviews conducted by the full City Council, Bob Murray & Associates was selected on April 15th to represent the City's interests in the recruitment process. At its meeting on June 3rd the City Council approved Staff's proposed public outreach plan, consisting of two Town Hall meetings, community outreach using an online survey, and media announcements. The outreach effort was completed on July 11, 2014. On Friday, September 12th the City's recruitment period for the City Manager position closed. Mr. Murray reviewed the 49 applications and resumes that he received from candidates across the nation. Mr. Murray used the input gathered from the one-on-one interviews with each City Councilmember, the Town Hall meetings and the results from the online survey as he reviewed the qualifications and characteristics of each candidate. Mr. Murray identified the top tier candidates from the applicant pool and conducted preliminary interviews. Mr. Murray then presented a list of the top candidates to the City Council, who then selected six exceptional candidates to interview. After the first interview , the City Council scheduled a second interview with the top two candidates and selected the candidate whom the Council believes will best serve the City as the next City Manager, Mr. Bill Widmer. 4-1 Contract with the New City Manager December 16, 2014 Page 2 of 3 DISCUSSION : Mr. Widmer's resume is attached to this report. Mr. Widmer has extensive executive management experience in the private sector, including with both smaller and larger businesses from within the United States as well as international businesses, including businesses specializing in information technology. Mr. Widner's management experience includes leading companies in new and innovative directions and negotiating with unions. His public sector experience is related to six years of service to the City of Atherton as Mayor, Vice Mayor and a Member of the City Council and as a member of that City's Audit Committee , Environmental Programs Committee, and New Town Center Committee. He also has served on the U.S. Congress' Office of Technology Assessment's Defense Diversification Committee. In addition, Mr. Widmer served as Chairman of the South Bay Waste Management Authority. As the Mayor and Vice Mayor of Atherton , Mr. Widmer led the development of new policies and procurement procedures that restored Atherton to a position of fiscal health and stability and enhanced the Town's transparency. He also led the search and selection process for a new City Manager and City Attorney. Mr. Widmer actively assisted the City Manager in selecting a new Police Chief and Director of Finance. Given Mr. Widmer's extensive experience in both the public and private sectors, the City Council found him to be the ideal choice for the new City Manager for Rancho Palos Verdes. The City Council has negotiated a contract with Mr. Widmer, a copy of which is attached to this Staff Report. The salient provisions of the contract are briefly summarized below: 1. The Agreement will commence on January 1, 2015. 2. The term of the Agreement is indefinite. The City Council may terminate the Agreement at any time, with or without cause, with ninety days prior written notice (Section 2). 3 . Correspondingly, Mr. Widmer must provide ninety days prior written notice to the City Council if he were to choose to terminate the Agreement (Section 4, Paragraph C). 4. If the Council terminates the Agreement without cause, six month 's salary must be paid to Mr. Widmer as severance (Section 4). 5. The annual salary that the City will pay to Mr . Widmer is $215,000 . The salary may be adjusted by the Council , in its sole discretion, based on Mr. Widmer's annual performance evaluation (Section 6). 6 . Mr. Widmer will receive an automobile allowance in the amount of $700.00 per month (Section 9). 7. He will not receive an allowance for electronic devices (Section 10). 4-2 Contract with the New City Manager December 16, 2014 Page 3 of 3 8. He will receive the health and other benefits that are available to other City management employees. (Section 11, Paragraph A). 9. Mr. Widmer will receive twenty days of vacation per year (Section 11, Paragraph 8.) 10. Mr. Widmer will receive eighty hours of Administrative Leave for each year that he works for the City (Section 11, Paragraph F). 11 . Because Mr. Widmer is relocating from Northern California to Southern California, he will receive compensation for moving and temporary housing expenses, including a maximum of three trips to Southern California for Mr. Widmer and his wife to find a new home; a temporary housing allowance of $3000 a month for nine months while the transition continues, and a maximum amount of $10,000 to pay for the actual cost of moving his household, which is expected to occur in two phases (Section 12). FISCAL IMPACT: In addition to the salary and benefits described above, Mr. Widmer will be eligible to receive PERS retirement benefits. CONCLUSION: The City Council has selected Mr. Widmer as the next City Manager. The Agreement that is attached to this report reflects the terms that have been negotiated with Mr. Widmer. Accordingly, Staff recommends that the City Council approve the Agreement that is attached to this report . Attachments Agreement Mr. Widmer's Resume 4-3 EMPLOYMENT AGREEMENT BETWEEN THE CITY OF RANCHO PALOS VERDES AND WILLIAM R. WIDMER This Employment Agreement ("Agreement") is made and entered into as of January 1, 2015, by and between the City of Rancho Palos Verdes, a California municipal corporation ("CITY" or "EMPLOYER"), and William R. Widmer, an individual ("EMPLOYEE"). EMPLOYER 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" or "COUNCIL") selected EMPLOYEE to serve as City Manager commencing January 1, 2015. B. EMPLOYEE has the requisite skills and is otherwise qualified to serve as City Manager. THEREFORE, in consideration of the mutual covenants and conditions herein contained, EMPLOYER 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, as is currently in effect and as may be amended from time to time, 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 Successor Agency to the Rancho Palos Verdes Redevelopment Agency and the Rancho Palos Verdes Improvement Authority. SECTION 2. TERM A. The term of this Agreement shall commence on January 1, 2015 and shall continue indefinitely from year to year unless terminated by EMPLOYER or EMPLOYEE as provided herein. 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 with 1776252 .2 - l - 4-4 or without cause 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. Unless EMPLOYEE has provided notice to EMPLOYER as required by Section 4, paragraph C, EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER 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 EMPLOYER 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 without cause at or during such time that EMPLOYEE is willing and able to perform his duties under this Agreement, then in that event, EMPLOYER agrees to pay EMPLOYEE a lump sum cash payment equal to six months (6) month's salary, provided EMPLOYEE has executed a full and final release of any and all actual or potential claims that EMPLOYEE has or could have against EMPLOYER. Also, in the event EMPLOYEE and EMPLOYEE'S dependents are 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 his part, or because he 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. 1776252 .2 -2 - 4-5 B. In the event EMPLOYER, at any time during the term 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 that the COUNCIL substantially reduces EMPLOYEE'S responsibilities, or in the event EMPLOYEE resigns following a suggestion or request by the COUNCIL that he resign, then EMPLOYEE may, at his 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, substantial reduction of responsibilities, or suggestion or request by the COUNCIL to resign. C. In the event EMPLOYEE voluntarily resigns his position with EMPLOYER, then EMPLOYEE shall give EMPLOYER three (3) months written notice in advance unless EMPLOYER and EMPLOYEE mutually agree in writing to a reduction of the notice period. If EMPLOYEE terminates this Agreement (thereby terminating EMPLOYEE'S Employment), EMPLOYEE shall not be entitled to any severance. D. Any other term of the Employment Agreement notwithstanding, the maximum severance that EMPLOYEE may receive under this Agreement shall not exceed the limitations provided in Government Code Sections 53260 -53264, or other applicable law. Further, in the event Employee is convicted of a crime involving an abuse of office or position, Employee shall reimburse the City for any paid leave or cash settlement (including severance), as provided by Government Code Sections 53243 -53243.4. SECTION 5. DISABILITY If EMPLOYEE is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of four consecutive 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, and the provision of health benefits as set forth in paragraph A of Section 4. 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. SECTION 6. SALARY 1776252 .2 -3 - 4-6 A EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant to this Agreement, an annual salary of two hundred fifteen thousand dollars ($215,000), 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 7. PERFORMANCE EVALUATION A Immediately following the commencement of EMPLOYEE'S employment with EMPLOYER, CITY COUNCIL and EMPLOYEE shall discuss the CITY'S goals and objectives for the next six months. Beginning on the first anniversary of the commencement of EMPLOYEE'S employment with CITY, COUNCIL and EMPLOYEE shall define annually the goals and objectives that they determine are appropriate for the proper operation of the CITY and to attain the COUNCIL'S policy objectives. Concurrently with the establishment of the goals and objectives for the CITY, COUNCIL and EMPLOYEE shall establish the performance goals for EMPLOYEE and any specific criteria that shall be used to evaluate EMPLOYEE'S performance. COUNCIL may amend said criteria from time to time, after consultation with EMPLOYEE. B. 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 or a waiver of its right to conduct a performance evaluation as authorized by the Municipal Code and this Agreement. 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 four hours per week in teaching, counseling or other non-Employer related business without the prior approval of the COUNCIL. 1776252.2 -4 - 4-7 SECTION 9. AUTOMOBILE EMPLOYEE shall provide and have at his 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 $700.00 per month to compensate EMPLOYEE for the use of EMPLOYEE'S automobile for City business, including, but not limited to, all applicable costs of automobile liability insurance, maintenance, operating expenses, depreciation and interest. SECTION 10. ELECTRONIC DEVICES Other than the desktop computer and telephone system that are located in EMPLOYEE 'S office at City Hall, EMPLOYEE shall supply at his own expense and be responsible for his own cellular telephone and other electronic devices that are used for communication purposes. SECTION 11. 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 as they may be amended by COUNCIL. If at any time such benefits exceed the benefits stated herein, they shall immediately apply to EMPLOYEE. Health care benefits (medical, dental and vision) shall be fully paid for by EMPLOYER for EMPLOYEE and his eligible dependents. In addition, any health care benefits for EMPLOYEE'S dependents, which were in effect immediately prior to EMPLOYEE'S death shall continue through the end of the month following the death of EMPLOYEE, if he were to pass away while employed by the CITY. EMPLOYER then shall provide for health benefit continuation for EMPLOYEE'S dependents by the appropriate EMPLOYER contribution to COBRA coverage for the maximum period allowed by law (which currently is 36 months) until such time as EMPLOYEE'S dependents receive health benefits from another source. The provisions of this Section 11 exclude any automatic 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. 1776252 .2 - 5 - 4-8 B. EMPLOYEE shall accrue vacation leave at the rate of twenty days per year. The vacation leave granted to EMPLOYEE may be used by EMPLOYEE at his discretion, always considering the best interests of the City . EMPLOYEE shall notify the Mayor and the Council whenever vacation leave is to be taken. In recognition of the need for EMPLOYEE to meet existing obligations, an initial bank of 5 days of vacation leave shall be provided to EMPLOYEE upon commencement of his employment with EMPLOYER as a part of the aforementioned vacation accrual. If not used , said vacation leave shall continue to accrue up to a maximum of two year's allocation (40 days). 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. C. EMPLOYER recognizes that EMPLOYEE may incur certain expenses of a non-personal and job related nature . EMPLOYER agrees to reimburse or to pay such reasonable business expenses, which are incurred and submitted according to EMPLOYER'S normal expense reimbursement procedures . To be eligible for reimbursement, all expenses must be supported by documentation meeting EMPLOYER'S normal requirements and must be submitted within time limits established by EMPLOYER. D. Bonding. EMPLOYER shall bear the full costs of any fidelity or other bonds required of EMPLOYEE (if any) under any law or ordinance by virtue of his 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. 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 his 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. EMPLOYEE also may use Administrative Leave in connection with his relocation to Southern California. G. EMPLOYEE shall be granted sick leave in the same manner as other CITY management employees. Unused sick leave shall carry forward, but no more 1776252.2 - 6 - 4-9 than 720 hours shall ever be accumulated. There shall be no payout of unused sick leave upon separation from the CITY. SECTION 12. MOVING AND TEMPORARY HOUSING ALLOWANCE As a result of accepting the position as City Manager with CITY, EMPLOYEE will relocate from his current residence to another residence that is within or near the CITY. EMPLOYER shall reimburse or pay the expenses of moving his family and personal property, as follows: A. Housing Search Allowance. EMPLOYER shall reimburse EMPLOYEE for a total of two trips for EMPLOYEE'S spouse (Mary Widmer) and one trip for EMPLOYEE to assist with house hunting and other facets of the transition and relocation process. Each trip shall include coach round trip air fare, the cost of a rental car, and a per diem amount of $250 per day, per person, for lodging and meals, not to exceed a total of eight days for all three trips . Expenses incurred by EMPLOYEE pursuant to this paragraph A may occur prior to January 1, 2015. B. Temporary Travel and Housing Allowance. Commencing January 1, 2015, EMPLOYER shall provide EMPLOYEE with a temporary monthly travel and housing allowance in the amount of $3,000 per month for a maximum period of nine months. C. Moving Allowance. In consideration for relocation, EMPLOYER shall reimburse or pay for actual and reasonable moving expenses to transport household items , not to exceed a total cost of $10,000 .00. Moving expenses are expected to occur in two stages (the first for EMPLOYEE alone , and the second to move EMPLOYEE'S family). Moving expenses may include professional labor, packing services, packing supplies, rented moving equipment, transport, temporary storage and insurance. To be eligible for reimbursement, moving expenses must be incurred within one year of the effective date of this Agreement and must be submitted to EMPLOYER for reimbursement, along with reasonable documentation, within six months after being incurred. COUNCIL , in its sole and absolute discretion, may extend these time limits for circumstances outside of EMPLOYEE'S control. If such moving expenses have been reimbursed by EMPLOYER, and EMPLOYEE terminates his employment with EMPLOYER before December 31, 2015, then EMPLOYEE shall reimburse EMPLOYER for the amounts previously paid to EMPLOYEE pursuant to this paragraph C with a pro rata reduction of 1/12th of the total expenses paid by EMPLOYER for each full month that EMPLOYEE remains employed by City. All applicable IRS regulations will apply to these temporary benefits, and none of these benefits shall be compensation that is subject to PERS. 1776252.2 -7 - 4-10 SECTION 13. DUES AND SUBSCRIPTIONS EMPLOYER agrees to budget and pay for the professional dues and subscriptions of EMPLOYEE necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his 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. EMPLOYEE shall provide written notice to COUNCIL of the organizations and subscriptions that are being reimbursed by EMPLOYER pursuant to this Section 13. SECTION 14. 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 and City resolutions, 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. EMPLOYEE shall provide written notice to COUNCIL of the expenditures that EMPLOYEE incurs pursuant to this Section 14. SECTION 15. 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, EMPLOYER 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 his duties under this Agreement. However, in the event City provides funds for legal criminal defense pursuant to this Section 15 or the terms of the Government Code, EMPLOYEE shall reimburse EMPLOYER for such legal criminal defense funds , if EMPLOYEE is convicted of a crime involving an abuse of office or position, as provided by Government Code Sections 53243 -53243.4 SECTION 16. 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. 1776252 .2 -8 - 4-11 SECTION 17. NOTICES Any notice to EMPLOYER under this Agreement shall be given in writing to EMPLOYER, 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 his 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: EMPLOYEE: Mayor and City Council City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 William R. Widmer SECTION 18. 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 EMPLOYER. 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, that 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. 8. No amendments to this Agreement may be made except as mutually agreed to in writing, signed and dated by EMPLOYER and EMPLOYEE. C. This Agreement shall be binding on and inure to the benefit of the heirs at law and executors of EMPLOYEE. 1776252 .2 - 9 - 4-12 D. This Agreement shall become effective commencing the 1st day of January, 2015. 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 . F. If any provision of this Agreement, or portion thereof, is held invalid or unenforceable for any reason, including that the provision or portion conflicts with federal or state law, the remainder of this Agreement 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 or rendered null and void by this Agreement. The foregoing notwithstanding, EMPLOYEE acknowledges that, except as expressly provided in this Agreement, his employment is subject to EMPLOYER'S generally applicable rules and policies pertaining to employment matters, such as those addressing equal employment opportunity, sexual harassment and violence in the workplace . 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 as it will be deemed jointly drafted with each party having the right of review and consultation with counsel of their choosing . 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 he has had the opportunity and has conducted an independent review of the financial and legal effects of this Agreement. EMPLOYEE acknowledges that he has made an independent judgment upon the 1776252 .2 -IO - 4-13 financial and legal effects of this Agreement and has not relied upon any representation of EMPLOYER, its officers, agents or employees other than those expressly set forth in this Agreement. 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. Dated : --------- ATTEST: CITY CLERK APPROVED AS TO FORM : CITY ATTORNEY Dated : --------- 1776252 .2 -11 - CITY OF RANCHO PALOS VERDES (EMPLOYER) MAYOR EMPLOYEE WILLIAM R. WIDMER 4-14 OVERVIEW BILL WIDMER 650 325 6428 bwidmer@pacbell.net General Manager with a track record of strong contract, personnel and project management experience. Successful budget management and revitalization of both small and large organizations . Experienced in executing and managing outsourcing programs, start-ups, turnarounds and product launches. A track record leading change in organizations. Experienced in multiple industries including IT & Business Process outsourcing, defense products and federal, state and local government activities. Extensive international business and cultural experience covering North America, Europe, Middle East, and parts of Asia. Budget-minded yet customer-focused leader . A strategic thinker who devises creative solutions and manages in a hands-on, team-oriented, and mentoring way. Experienced in working with unions, both internationally and domestically. • As VP/Deputy CEO, of a European IT services organization, grew recurring revenue from operations by $65M. • As VP/COO, Outsourcing Group, built a $150M electronics design services (BPO) business unit. • As GM, led two services organizations to profitability while launching new product lines and improving client satisfaction. • Led multiple strategic engagements and new business contract negotiations resulting in over $8B combined value. • Elected to Council running on platform of establishing financial stability using business practices and methodologies. • As Mayor, reversed 8 years of deficit spending while improving services with key leadership changes and outsourcing. PUBLIC ADMINISTRATION EXPERIENCE • Elected to Council and subsequently to Vice Mayor-2010, Mayor 2011-2012 • Member of Town of Athe1ion's Audit, Rail and Finance, Environmental Programs and the New Town Center Committees • Chairman of South Bay Waste Management Authority and board member for serveral other regional organizations • Led development of several Town contracts and procurement procedures and developed trash rate structure for Town • As Mayor, led selection ofnew City Attorney, Finance Director, Police Chief and City Manager • Led efforts for key town ballot initiatives, the outsourcing of selected services and paying off major Town liabilities. • Led Council activities resulting in moving fringe benefit programs to a more sustainable and competitive basis EMPLOYMENT HISTORY Orange Business Services/France Telecom Group 2004-present Deputy Vice President, Commercial Management Began as a consultant, developing and negotiating strategic deals and equity transactions in Europe and North America. Later, hired as Commercial Management Global Practice Lead, for leading the development of major partnerships including outsourcing opportunities. Named Commercial Head for EMEA & WW Outsourcing in early 2007 and then moved Head of CM world-wde operations responsible for day to day operation of a 70+ employee world-wide organization. • Planned and implemented departmental restructuring creating a world-wide service organization using a leveraged model, standard processes and tools benefiting multiple sales channels with 20% fewer resources overall. • Personally developed and closed global agreements (worth over $500M TCV) with IBM, BT, Bell Canada and EY. • Developed and gained corporate support for establishment of a low-cost near shoring facility to support business development activities which had an 18-month payback while improving bid turnaround by 25%. • Led corporate activities leading to the development and startup of a Contract Management practice . • Developed OBS' International Risk Assessment and Risk Management Practice and tools resulting in improved financial models while creating risk registers for delivery teams. • Named 'Best Commercial Manager' for 2006. EDS, San Ramon, CA 2002-2003 Vice President, Outsourcing Sales, Northern California Responsible for a team of sales and business development executives for the business process & IT outsourcing product lines. • Led organization which achieved funded backlog growth of over $960M. • Grew pipeline from $1.5B to over $2.5B. 4-15 Borland Software Company, Scotts Valley, CA Vice President & General Manager, World-wide Professional Services William R. Widmer Page 2 2000-2001 Hired to revitalize an international P&L business unit, providing consulting and educational services. • Organized regionally, disparate organizations into a virtual group with focused creation and execution organizations leading to expanded offerings (e-commerce and e-learning), increased backlog and $2M of incremental revenue. • Established organizational and sales processes, product marketing, metrics and pipe! ine management which led to a doubling of consultant utilization rates while restoring profitability from pervious $I M/qtr loss. Mentor Graphics Corporation, San Jose, CA 1999-2000 General Manager, Mentor Consulting and Knowledge Products Divisions Worldwide responsibility for technical publications, training, consulting and electronic design support. • Revitalized a disjointed 300-person, $40M business unit into a synergistic $50M business unit. • Exceeded margin plan by 50% ($6M vs. $4M) and revenue plan by 25% with backlog growth. • Established new operating processes and partnership program leading to consistent profitability. Cadence Design Systems, San Jose CA 1996-1998 Vice President and COO, World Wide Outsourcing Group Hired to lead Cadence's growth into outsourcing and solution selling with a services-led model and grow a services organization. • Co-developed, negotiated, and closed over $200M of multi-year business including Cadence's largest ever services engagement ($1l7M+) with Oki in Japan. • Led evaluation, due diligence, transition and negotiations for several strategic mergers and acquisitions including a $50M, I 00+ person acquisition with Lucent (Bell Labs). • Built global outsourcing organization; created infrastructure and processes necessary to win multi-year, multi-million dollar strategic partnerships . Computer Science Corporation (CSC), USA & Europe 1993-1996 Hired as, Director, Business Development and progressed (in '94) to Vice President • VP/General Manager of 1000 person business unit supporting 9 major divisions of British Aerospace. • Named Deputy CEO for 1700 person, $300M/yr (Aerospace Systems) business unit and grew it by over 30% .. • Planned, negotiated and executed three strategic service and technology outsourcing alliances resulting in savings of over$ l 7M per year with improvements in service performance and service resit ience. • Rationalized geographically dispersed service delivery organizations from vertical structures into a matrix-managed , centers of excellence structure, resulting in improved performance and $20Mp.a. savings. • Revamped procurement processes and streamlined supply chain reducing time span to acquire and provision distributed processing equipment from six weeks to three days. General Dynamics-Electronics Division, CA & FL 1985-1993 Progressed from Director, CAE/CAD/CAM to Director and General Manager, Tallahassee Operation Transferred from Data Systems Division after 7 years ('78-'85) in various software engineering and management roles in TX. • Planned, directed and managed the start-up of a nationally recognized, automated manufacturing and support operation in Tallahassee, FL, growing it from inception to over 120 employees and $30M/year. • Deputy Program Director sharing responsibility for the development, negotiation and planning of a $400M DoD program, SINCGARS, and led negotiations for award of$ I OM in state and local economic assistance . • Developed and executed Division's strategic plan which led to its migration from manual design and manufacturing process to integrated and automated processes resulting in 60% cycle time improvement and quality improvements EDUCATION • MBA, Texas Christian University, Fort Worth, Texas • BS, Computer Science, Texas Christian University, Fort Worth, Texas • Executive Program, Northwestern University, Kellogg Graduate School of Management 4-16 MEMBERSHIPS/ADDITIONAL INFORMATION William R. Widmer Page 3 • As CEO of g8solutions.com, 2003-2005, grew company from startup to over $1 M with 3 product lines. • Managing Director of Diamond Hawk Ventures, 2001-2002, a retainer-based consulting company. • US Congress Office of Technology Assessment, Defense Diversification Committee Member • Texas Christian University Evening College Professor of Computer Science 4-17