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RPVCCA_CC_SR_2012_07_17_E_Agreement_For_PW_Dept_Management_ServicesCrrvOF MEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: HONORABLE MAYOR &CITY COUNCIL MEMBERS CAROLYN LEHR,CITY MANAGERC1S2- JULY 17,2012 PROFESSIONAL SERVICES AGREEMENT WITH JAMES B.HENDRICKSON FOR PUBLIC WORKS DEPARTMENT MANAGEMENT SERVICES RECOMMENDATION Authorize the Mayor and City Clerk to sign the Retired Annuitant Employment Agreement with James B.Hendrickson with a term ending with 960 hours of service in the fiscal year, or the date a new Public Works Director assumes the duties of the job-whichever occurs first. BACKGROUND The City had employed Tom Odom as Director of Public Works until he voluntarily resigned on June 29,2012 to take another position in northern California.Due to the essential nature of duties relating to public works management,the City Manager finds it necessary to employ the services of an interim Public Works Director to carry on these responsibilities until the recruitment and selection process is completed for the permanent filling of this vacant position. The City Manager has reached out to her colleagues and other professionals to seek out the services of a highly experienced and reliable municipal managerto provide temporary assistance to the City organization,and was fortunate that Jim Hendrickson-who is already known to many of us on the Peninsula and who resides in nearby Rolling Hills Estates-is agreeable to offering his considerable expertise to cover a vacancy in our city at this critical juncture with many pressing public works projects scheduled in the coming months. DISCUSSION By way of background,Mr.Hendrickson retired in 2007 as City Manager for the City of Palos Verdes Estates after a long and distinguished career spanning several decades and serving both large and smaller cities in California.Since his retirement,Mr. E-1 Hendrickson has also taught public administration courses at California State University at Long Beach. Jim Hendrickson is available to work three to four days per week,and does fall under the CalPERS limitation for retirees to not exceed working 960 hours in the fiscal year.City Labor Attorney Roy A.Clarke has prepared the employment agreement with the appropriate terms and conditions for Council's consideration. FISCAL IMPACT The FY 2012-13 budget as approved provides sufficient funding for this part-time interim employment contract,because the estimated cost is less than the full-time budgeted position. Attachments: •Resume of James B.Hendrickson •Retired Annuitant Employment Agreement Between City of Rancho Palos Verdes and James B.Hendrickson M:\Public Works Interim Prof Svc Contract SR.doc E-2 JAMES B.HENDRICKSON 43 Hillcrest Meadows Rolling Hills Estates,California 90274 (310)377-0165 Jim.hendricksonl@cox.net EDUCATION Syracuse University,Maxwell School of Citizenship and Public Affairs,Syracuse,New York.July 1971-June 1972.Received Master's of Public Administration Degree. Georgetown University,Washington,D.C.1966-1969.Obtained M.A.Degree in Latin American Studies. Northwestern University,Evanston,lllinois.1962-1966.Received B.A.Degree in Political Science,with minor in English. EXPERIENCE January 2010 -Present Guest Lecturer in Master's of Public Administration Program at California State University at Long Beach. December 2005 -Present Instructor,Police Lieutenant's Management Training Program through California State University at Long Beach &PMW Associates. October 1989 -June 2007 City Manager,City of Palos Verdes Estates.Manage and oversee a City composed of 5 departments and 1 enterprise operation.62 full-time equivalent employees.$11.2 million operating budget;$19.4 million total City budget.Upper middle-class bedroom community on Palos Verdes Peninsula,15 miles south of Los Angeles with 15,000 residents. December 1984 -July 1989 City Manager,City of San Clemente.Manage and oversee a full service City comprised of 8 departments (police,Fire,Community Development,Public Services,Finance,City Clerk,Economic Development,and City Manager's office)and 3 enterprise operations (Water,Sewer,Golf Course).255 full-time employees.$15.7 million operating budget; $31.5 million total City budget.Southern California beach town with a population of 39,100.Growth community. June 1979 -December 1984 Assistant City Manager,City of Fresno.Supervision of General Services, Finance, and Personnel Departments.Responsible for preparation of annual budget (approximately $180 E-3 million)and presentation to City Council.Served as Chief of Staff for City Manager and head of administrative staff (City Manager's Office,Management Systems Division,Public Information Office,and futergovernmental Relations Office).Oversaw preparation of special management studies touching on all City operations.Central Valley City experiencing considerable growth.Eighth largest City in the State. August 1972 -June 1979. Assistant City Manager,City of Saratoga.Served as Budget and Finance Director. Responsible for preparation of annual budget,investment of idle City funds,authorization of purchase orders,oversight ofEDP system.Responsible for personnel function,including recruitment,interviewing,evaluation,affirmative action,and preparation of class specifications.Conducted special studies as needed.Served as Office Manager of Administration Department and Acting City Manager in absence of City Manager.Upper middle-class bedroom community in South Bay area.Contract City of 30,000 residents .. November 1968 -February 1971. Peace Corps Volunteer.Worked in tuberculosis control program in Tarija,Bolivia. AWARDS AND POSITIONS President of Church Council at Neighborhood Church (June 2009 to May 2010); Chair of Board of Trustees (June 2007 to May 2008). Vice-Chair,MTA's South Bay Service Sector Council (January 2003 to January 2005) President,South Bay Cities City Managers'Association (July 1998 to June 1999). President,Board of Trustees,California City Management Foundation (1992-1996) (Member of Board of Trustees from 1990-1998) Author,A Study of the Provisions of City Manager Employment Agreements, published by California City Management Foundation in April 1990. lCMA futernational Exchange Program with County Manager of Westmeath County Council,Ireland.July 1997. City Manager's Department Representative to New South Wales fustitute of Municipal Management Annual Conference in Sydney,Australia,July 1995. Vice-Chair of City Managers'Committee of California Joint Powers fusurance Authority (1994 to 2007). Awarded a Maxwell Fellowship at Syracuse University for the 1971-72 academic year. President ofthe Alpha Tau Omega Fraternity at Northwestern University (1964-65). E-4 RETIRED ANNmTANT EMPLOYMENT AGREEMENT BETWEEN CITY OF RANCHO PALOS VERDES AND JAMES B.HENDRICKSON This Retired Annuitant Employment Agreement ("Agreement")is made and entered into as ofJuly 17,2012,by and between the City of Rancho Palos Verdes,a California municipal corporation, ("City"or "Employer")and James B.Hendrickson,an individual ("Employee"). RECIT ALS A.As a result of current workload and staffing,City has need for a temporary employee with specialized skills involving the management ofmunicipal and department operations within the City..' B.City desires to secure the services of a suitably qualified person to complete management level assignments and to manage the City's public works functions,as designated by the City Manager. C.Employee has retired after a long and distinguished career in public agency management, including service as the City Manager for a near-by city immediately prior to retirement. Employee represents that he has the requisite specialized skills,training and experience and is otherwise qualified to complete management level assignments for the City and to manage the City's Public Works Department,if so assigned. D.Employee is a retired person under the California Public Employees'Retirement System ("PERS")and desires to retain his retirement status and benefits.The Public Employees' Retirement Law ("PERL''),commencing at Government Code Section 20000,permits a retired person under PERS to serve in otherwise covered employment without reinstatement from retirement and without loss or interruption ofbenefits,provided certain conditions exist and,with limited exceptions,all PERS-covered employment for the retired person does not exceed 960 hours in any fiscal year.City and Employee desire to structure the employment to take advantage of this provision. E.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: 1.TERM.Unless sooner terminated,as provided in this Agreement,the term of this Agreement shall be from the date entered above through the earlier of960 hours ofservice in a fiscal RPV_Hendrickson Employment Agreement.DOC -1 - E-5 year or the date on which City appoints a new Public Works Director and that person assumes the duties of the job. 2.DUTIES AND AUTHORITY.Employee shall complete management level assignments,as designated by the City Manager.Employee's assignments will only involve work requiring specialized skills in performing work of limited duration.The parties anticipate that Employee's primary assignment will be supervision and management of the City's public works functions,including the Public Works Department.Employee shall exercise such other powers and perform such other duties as City,by the City Manager,may from time to time assign. 3.EMPLOYEE'S OBLIGATIONS.Employee shall devote his energies,interest, abilities and productive time to the performance of this Agreement,and utilize his best efforts to promote City's interests,consistent with the temporary,part-time nature of the employment. Employee shall not engage in any activity,consulting service or enterprise,for compensation or otherwise;which is actually or potentially in conflict with or inimical to,or which materially interferes with,his duties and responsibilities to City.Employee may otherwise offer his services to others as an independent contractor or as an employee to other employers who are not PERS member agenCIes. 4.SALARY AND BENEFITS. A.Base Compensation and Hours.City shall pay Employee a base hourly rate of$84.27 (Eighty Four and 27/100 Dollars),subject to legally permissible or required withholding,paid on City's normal paydays.Employee will work such hours as City Manager directs or authorizes. While this Agreement does not guarantee a minimum number ofhours and the hours may vary,the parties anticipate approximately three to four days ofservices per week.In no event will Employee work in excess of40 hours in a workweek without the prior written authorization (including e-mail authorization)from the City Manager. B.Employment Benefits. (1)No Paid Leave.Employee acknowledges that he will not be eligible for and hereby waives entitlement to any paid leave benefits,including,without limitation,holidays, vacation,sick leave,administrative leave,floating holidays,personal holidays,bereavement leave or any other paid leave time. (2)Unpaid Leave.Subject to prior approval ofthe City Manager,Employee will be entitled to take unpaid leave time.Except as otherwise approved by the City Manager,Employee will not take more than two weeks of unpaid leave at one time. RPV_Hendrickson Employment Agreement.DOC -2 - E-6 (3)Group Medical,Life and Dental fusurance.Employee acknowledges that he (including his dependents)will not be eligible for and hereby waives entitlement to health and welfare benefits and group insurance,including,without limitation,medical,life,dental,optical,and disability coverage. (4)Retirement Plan.Employee shall remain a retired person under PERS and shall not be eligible to participate under the PERS Plan applicable to other employees of City. (5)Other Fringe Benefits.Employee acknowledges that he will not be eligible for and hereby waives any additional fringe benefit or payment not expressly provided in this Agreement.Employee further acknowledges that,except as provided under the applicable plan document or as required by law,Employee will not be eligible to participate in City's deferred compensation plan,flexible spending account,medical or childcare reimbursement accounts or retiree health savings plan,if any.fu the event Employee's participation is provided under terms of the plan documents or applicable law,Employee acknowledges that he is not eligible for and hereby waives any employer contribution that may otherwise be available and will participate only on the basis of employee contributions.Employee will participate in the California state disability insurance program,if required under terms of the program. (6)Expenses.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 that 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. (7)Bonding.City shall bear the full costs ofany fidelity or other bonds required of Employee under any law or ordinance by virtue of his employment. 5. Manager. EVALUATIONS.Employee shall report to and may be evaluated by City's City 6.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 his duties under this Agreement. 7.AT-WILL EMPLOYMENT RELATIONSHIP.City Manager shall be appointing authority for Employee and Employee is employed at the pleasure of the City Manager.The City Manager may terminate this Agreement and the employment relationship at any time without cause. Nothing in this Agreement shall prevent,limit or otherwise interfere with the right of the City, through the City Manager,to terminate the employment ofEmployee.Employee may terminate this Agreement and the relationship at any time with prior written notice to City Manager. RPV_Hendrickson Employment Agreement.DOC -3 - E-7 8.SEVERANCE.City shall pay Employee for all services through the effective date of termination and Employee shall receive no other compensation or payment or any severance. Since Employee is not eligible for paid leave,payment for unused leave time will not be applicable. 9.INTEGRATION OF AGREEMENT.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 the 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. 10.METHOD OF AMENDMENT.No amendments to this Agreement may be made except by'a writing signed and dated by City Manager and Employee. 11.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 Manager at City's then principal place of business.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.For the purpose ofdetermining compliance with any time limit in this Agreement,a notice shall be deemed to have been duly given (a)on the date ofdelivery,if served personally on the party to whom notice is to be given,or (b)on the third calendar day after mailing,ifmailed to the party to whom the notice is to be given in the manner provided in this section. 12.GENERAL PROVISIONS. A.Ifany provision ofthis Agreement is held invalid or unenforceable,the remainder of this Agreement shall nevertheless 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. B.This Agreement sets forth the final,complete and exclusive agreement between City and Employee relating to the employment of Employee 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,his 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.Any prior employment agreement(s)between City and Employee that is still in force is terminated as of the effective date of this Agreement. C.This Agreement shall be interpreted and construed pursuant to and in accordance with the local laws ofthe State of California and all applicable City Codes,Ordinances and Resolutions. RPV_Hendrickson Employment Agreement.DOC -4 - E-8 D.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 financial and legal effects ofthis 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 parties have caused this Agreement to be signed and executed personally or on its behalfby its duly authorized representative. MP~__ s B.Hendrickson ~ CITY CITY OF RANCHO PALOS VERDES, A California Municipal Corporation By:_ Attest: City Clerk RPV_Hendrickson Employment Agreement.DOC -5 - E-9