RPVCCA_SR_2010_03_16_05_Third_Amendment_To_City_Manager_Employment_AgreementCITY OF
MEMORANDUM
RJ\NCHO PALOS VERDES
TO:HONORABLE MAYOR AND CITY COUNCIL MEMBERS
DATE:
FROM:CAROL W.LYNCH,CITY ATTORNEY
MARCH 16,2010
SUBJECT:THIRD AMENDMENT TO THE CITY MANAGER'S
EMPLOYMENT AGREEMENT
REVIEWED:CAROLYN LEHR,CITY MANAGER 09-
RECOMMENDATION
Approve the Third Amendment to the City Manager's Employment Agreement.
BACKGROUND
On March 6,2007,City Manager Lehr commenced her employment with the City.After
conducting the City Manager's performance review,on March 28,2008,the City Council
approved the First Amendment to her employment agreement.In March 2009,the City
Council conducted another performance review and approved a Second Amendment to
the City Manager's employment agreement.
This year,the City Council conducted the City Manager's performance review and
pursuant to that review,the City Council directed the City Attorney's office to prepare a
Third Amendment to the City Manager's employment agreement for review and
approval this evening.The proposed Third Amendment is attached to this report along
with the original Agreement and the first two amendments.Because this is a draft
agreement,the Council can direct that additional or different amendments be made to
the Third Amendment to the Agreement this evening.
DISCUSSION
The draft Third Amendment to the City Manager's employment agreement makes the
following changes to the City Manager's current agreement with the City:
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1.The term of the agreement,which is set forth in Section 2 A of the
Agreement,has been amended to reflect the current term of the
Agreement,which will expire on June 30,2014.Paragraph D of Section 2
contains that same amendment.
2.Paragraph 28 is an existing provision of the Agreement,which provides
that the Agreement will automatically renew for three additional years at
the end of the term on June 30,2014,unless the City Council gives written
notice to the City Manager at least 18 months prior to the termination date
of the Agreement that the City Council elects not to allow the Agreement
to renew automatically.This provision has been amended to require the
City Manager to give at minimum of ninety days written notice to the City
Council of the City's deadline to provide the notice of non-renewal to the
City Manager.For purposes of the existing term of the Agreement,the
City Manager will be required to give that notice to the City Council by
October 1,2012.
It is important to note that Paragraph 28 does not replace or supercede
existing Paragraph 2C,which provides that the City Council may terminate
the Agreement at any time by providing the City Manager with a ninety-
day written notice of termination.
3.The draft agreement modifies Section 6 by increasing the City Manger's
salary by 1.5%.
4.In recognition of the City Manager's performance and as an incentive to
continue that level of performance in the future,a new subsection F has
been added to Section 10 to make a monthly contribution of $1 ,250 on the
City Manager's behalf into a deferred compensation plan.
Except as expressly set forth in the third amendment to the agreement,all of the other
provisions of the City Manager's employment agreement,as previously amended by the
first and second amendments,have not been altered and remain in effect.
Attachments:
City Manager's current employment agreement
First Amendment to Employment Agreement
Second Amendment to Employment Agreement
Proposed Third Amendment to Employment Agreement
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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 ofthe 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 ofthe annual evaluation of EMPLOYEE as provided in Section 7 hereof
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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 oftermination 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
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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 ofthe 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 thereofto 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 ofthe
moving expenses and housing allowance that CITY had paid to EMPLOYEE,which are set forth
in Section lO(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.
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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 ofthis 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 31 st 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 ofthe obligation to conduct the review of EMPLOYEE'S
performance.The parties agree that the COUNCIL'S failure to carry out the provisions ofthis
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 ofthe 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.
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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 ofthis 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 often 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:
EMPLOYEE:
Mayor and City Council
City of Rancho Palos Verdes
30940 Hawthorne Boulevard
Rancho Palos Verdes,CA 90275
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 expresslyprovided 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 ofthis 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.
/
MAYOR
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 behalfby 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:C;\ltt-c·e .9(;(:("7
[Signatures continue]
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"
ATTEST:
Dated:--------
955179.5 -9-
EMPLOYEE
Qa~£0!LhA/
CAROL RLEHR
5 - 11
(,J.
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 advan~e 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."
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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 ofa 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:
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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 $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.
ATTEST:
fMc:m~
CITY CLERK
Dated:~'d-q ~ooV,
1042980.2
EMPLOYEE
5 - 14
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
(herei.nafter 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:
1120299.2 5 - 15
"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.
"8.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:_
ATTEST:
&fd~CITYCLER
Dated:_
1120299.2
EMPLOYER
CITY OF RANC~VERDES
fhyMAYOR
EMPLOYEE
~U5~CAROLYN .LEHR
5 - 16
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.
1213649
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
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:_
ATTEST:
CITY CLERK
Dated:---------
1213649
EMPLOYER
CITY OF RANCHO PALOS VERDES
MAYOR
EMPLOYEE
CAROLYN R.LEHR
5 - 19