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Lester G. Evans Jr. SIXTH AMENDMENT TO EMPLOYMENT AGREEMENT This agreement is the sixth amendment to the Employment Agreement (hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes (hereinafter referred to as "City") and Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Sixth Amendment to Employment Agreement is made and entered into as of June 21, 2005. WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee's performance at a closed session held at a regular City Council meeting on May 31, 2005; and WHEREAS, the City Council finds, that based on the review of Employee's performance, the City Council desires to continue to employ Employee as the City Manager and to increase Employee's annual salary; 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. The term of this Agreement shall be from July 1, 2005, until June 30, 2007. 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. 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. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. "D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2007, 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. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2005 to June 30, 2007. SECTION 3. Section 6 of the Agreement is hereby amended to read as follows: "SECTION 6. SALARY "A. Effective July 1, 2005, EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of$152,000.00. EMPLOYER further agrees that effective July 1, 2006, EMPLOYER shall increase EMPLOYEE'S annual salary to $160,000. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. "B. If this Agreement is extended beyond June 30, 2007, upon the mutual agreement of the parties, EMPLOYER agrees that EMPLOYEE'S salary shall be further reviewed at the same time that EMPLOYEE'S performance is reviewed pursuant to Section 7." SECTION 4. Except as expressly amended by this Sixth Amendment to Employment Agreement, all of the provisions of the Agreement, as previously amended, shall remain in full force and effect. IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes, California, has caused this Sixth 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 Sixth Amendment to Employment Agreement, as of the date and year first above written. Dated: EMPLOYER CITY OF RANCHO PALOS VERDES CQIik CE?C°14-7 MAYOR ATTEST: CITY LERK Dated: EMPLO ' LESTER G. EVANS, JR. �/2Alns FIFTH AMENDMENT TO EMPLOYMENT AGREEMENT This agreement is the fifth amendment to the Employment Agreement (hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes (hereinafter referred to as "City") and Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Fifth Amendment to Employment Agreement is made and entered into as of May 18, 2004. WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee's performance at a closed session held at a regular City Council meeting on May 4, 2004; and WHEREAS, the City Council finds, that based on the review of Employee's performance, the City Council desires to continue to employ Employee as the City Manager and to increase Employee's annual salary; 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. The term of this Agreement shall be from July 1, 2004, until June 30, 2005, and shall automatically renew from year to year thereafter, unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to amend, modify or terminate this Agreement. If either party does not give such notice, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending 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. 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. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. "D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2005, 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 774532-1 teaching, writing, or consulting performed on Employee's time off in accordance with Section 8 of this Agreement. SECTION 2. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2004 to June 30, 2005. SECTION 3. Section 6 of the Agreement is hereby amended to read as follows: "SECTION 6. SALARY "A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $144,500.00. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. "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 annually 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: "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 $333.00 per month to compensate EMPLOYEE for the use of EMPLOYEE'S automobile for City business." SECTION 5. Except as expressly amended by this Fifth Amendment to Employment Agreement, all of the provisions of the Agreement, as previously amended, shall remain in full force and effect. 774532-1 • IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes, California, has caused this Fifth 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 Fifth Amendment to Employment Agreement, as of the date and year first above written. Dated: (1Z& I ; ( EMPLOYER CI • H. -ALOS VERDES `� MAYOR ATTEST: As C TY CLERK [Signatures continue] Dated: EMPL• EE ' -'44A LESTER G. EVANS, '. 774532-1 FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT This agreement is the fourth amendment to the Employment Agreement (hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes (hereinafter referred to as "City") and Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Fourth Amendment to Employment Agreement is made and entered into as of March 18, 2003. WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review of Employee's performance at a closed session held at a regular City Council meeting on March 4, 2003; and WHEREAS, the City Council finds, that based on the review of Employee's performance, the City Council desires to continue to employ Employee as the City Manager and to increase Employee's annual salary; 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. The term of this Agreement shall be from July 1, 1998, until June 30, 2004, and shall automatically renew from year to year thereafter, unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to amend, modify or terminate this Agreement. If either party does not give such notice, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending 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. 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. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. "D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2004, 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 Fourth Amendment to Employment Agreement March 18,2003 Page 2 of 3 occasional teaching, writing, or consulting performed on Employee's time off in accordance with Section 8 of this Agreement. Section 2. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2003 to June 30, 2004. Section 3. Section 6 of the Agreement is hereby amended to read as follows: "SECTION 6. SALARY "A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $137,150.00. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. "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 annually at the same time that EMPLOYEE'S performance is reviewed pursuant to Section 7." Section 4. Except as expressly amended by this Fourth Amendment to Employment Agreement, all of the provisions of the Agreement, as previously amended, shall remain in full force and effect. IN WITNESS WHEREOF, the City Council of the City of Rancho Palos Verdes, California, has caused this Fourth 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 Fourth Amendment to Employment Agreement, as of the date and year first above written. Dated: Ceffilt,, , (erj EMP 0 CITY • RA CHO P ' OS VERDES 1 MAYO" ATTEST: IciPk TY CLERK 692876-3 Fourth Amendment to Employment Agreement March 18,2003 Page 3 of 3 [Signatures continue] Dated: 5I1 R/C EMP •YEE , • L STER G. EVANS, JR. / 692876-3 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 Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Third Amendment to Employment Agreement is made and entered into as of May 7, 2002. WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee's performance at a closed session held at a regular City Council meeting on April 16, 2002; 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 allow Employee to sell some of his accrued vacation time back to the City; 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. The term of this Agreement shall be from July 1, 1998, until June 30, 2003, and shall automatically renew from year to year thereafter unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to amend, modify or terminate this Agreement. If either party does not give such notice, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending 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. 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. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. "D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2003, 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 692876-1 1 teaching, writing, or consulting performed on Employee's time off in accordance with Section 8 of this Agreement. SECTION 2. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2001 to June 30, 2003. SECTION 3. Section 6 of the Agreement is hereby amended to read as follows: "SECTION 6. SALARY "A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of$130,000.00. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. "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 annually at the same time that EMPLOYEE'S performance is reviewed pursuant to Section 7." SECTION 4. Section 10 of the Agreement is hereby amended by adding new paragraph C thereto to read as follows: "C. On or before June 30, 2002, Employee may sell back to EMPLOYER one hundred (100) hours of Employee's accrued vacation leave for the sum of $6251.20. On or before June 30th of each year after June 30, 2002, that this agreement remains in effect, EMPLOYEE may sell back to EMPLOYER up to 60 hours of accrued or unused vacation leave at the rate of compensation then being earned by EMPLOYEE." Section 5. Except as expressly amended by this Third 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 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. 692876-1 2 Dated: May 7. 2002 EMPLOYER CITY OF RANCHO PALOS VERDES C I ATTEST: MAYOR /1 IIII ITY LERK Dated: i 00. EMP •YEE ,A L STER G. EVANS, JR. 692876-1 3 SECOND AMENDMENT TO EMPLOYMENT AGREEMENT This agreement is the second amendment to the Employment Agreement (hereinafter referred to as "the Agreement") between the City of Rancho Palos Verdes (hereinafter referred to as "City") and Lester G. Evans, Jr., (hereinafter referred to as "Employee"). This Second Amendment to Employment Agreement is made and entered into as of April 17, 2001. WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee's performance at a closed session held at a regular City Council meeting on April 3, 2001; 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; 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. The term of this Agreement shall be from July 1, 1998, until June 30, 2002, and shall automatically renew from year to year thereafter unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to amend, modify or terminate this Agreement. If such notice is not given by either party, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending 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. 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. In accordance with Section 2.08.020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. "D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2002, and neither to accept other employment nor to R6876\0001\650356.1 - 1 - 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. Paragraph C of Section 4 of the Agreement is hereby amended by changing the dates referred to therein from June 30, 2001 to June 30, 2002. SECTION 3. Section 6 of the Agreement is hereby amended to read as follows: "SECTION 6. SALARY "A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $120,000.00. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. "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 annually at the same time that EMPLOYEE'S performance is reviewed pursuant to Section 7." Section 4. 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:ls /idALc� `�1cC>Cj/ EMPLOYER CITY OF RANCHO PALOS VERDES 12 M- ATTEST: •ITY CLERK [signatures continue] R6876\0001\650356.1 - 2 - Dated: 412-4/0/ EM' •YEE ESTER G. EVANS, JR. R6876\0001\650356.1 - 3 - 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 Lester G. Evans, Jr. , (hereinafter referred to as "Employee" ) . This First Amendment to Employment Agreement is made and entered into as of April 18, 2000 . WHEREAS, pursuant to Section 7 of the Agreement, the City Council of City conducted an annual review Employee' s performance at a closed session held at a regular City Council meeting on April 4 , 2000; 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; NOW, THEREFORE, the parties hereto agree that : Section 1 . Section 6 of the Agreement is hereby amended to read as follows : " SECTION 6 . SALARY "A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $110, 000 . 00 . EMPLOYEE' S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. " 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 annually at the same time that EMPLOYEE' S performance is reviewed pursuant to Section 7 ." Section 2 . 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. 000412 R6876-00001 pjn 0692433.DOC Dated: irqati �� 02 6 d 6 CITY OF RANCHO PALOS VERDES (EMPLOYER) MAY R ATTEST: 410. 4111 AAj--ej) CITY CLERK Dated: Maa (, p EMPLOY E AO LESTER G. EVANS, JR 000412 R6876-00001 pjn 0692433.DOC - 2 - EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into as of the first day of July, 1998, by and between the City of Rancho Palos Verdes, State of California, a municipal corporation, hereinafter called "EMPLOYER" , and Lester G. Evans, Jr. , hereinafter called "EMPLOYEE" , referred to collectively as "the parties" . RECITALS WHEREAS, EMPLOYER desires to retain the services of EMPLOYEE as City Manager as provided by Chapter 2 . 08 of Title 2 of the Municipal Code of the City of Rancho Palos Verdes; and WHEREAS, it is the desire of the City Council of EMPLOYER, hereinafter called "COUNCIL", to provide certain benefits and to establish certain conditions of employment for EMPLOYEE; and WHEREAS, it is the further desire of the COUNCIL to (1) to make possible EMPLOYEE'S full work productivity by assuring EMPLOYEE's morale and peace of mind with respect to future security, and (2) to provide a just means for terminating EMPLOYEE's services when EMPLOYER or EMPLOYEE desire to terminate this Agreement; and NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows: SECTION 1. DUTIES EMPLOYER hereby agrees to retain the services of EMPLOYEE as City Manager of the City of Rancho Palos Verdes to perform the functions and duties specified in Chapter 2 . 08 of the Rancho Palos Verdes Municipal Code, and to perform such other legally permissible and proper duties and functions as the COUNCIL shall from time to time assign. SECTION 2 . TERM A. The term of this Agreement shall be from July 1, 1998, until June 30, 2001, and shall automatically renew from year to year thereafter unless either party gives written notice to the other party not later than the first day of January immediately prior to the end of each contract year of a desire to 980513 L:\voll\CWL\EVANS.AGR(4) amend, modify or terminate this Agreement. If such notice is not given by either party, then the term of this Agreement shall be extended on the same terms and conditions as are herein provided for an additional period of one (1) year from the first day of July following said January 1st. This paragraph shall not be construed as preventing the parties from amending 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. 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. In accordance with Section 2 . 08. 020 of the Rancho Palos Verdes Municipal Code, EMPLOYER hereby approves EMPLOYEE'S residence outside of the City during the term of this Agreement. D. EMPLOYEE agrees to remain in the exclusive employment of EMPLOYER until June 30, 2001, 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. 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 his 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, 980513 L:\voll\CWL\EVANS.AGR(4) 2 but only for insurance benefits, for twelve 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 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. B. In the event EMPLOYER at any time during the time of this agreement reduces the salary or other financial benefits of EMPLOYEE in a greater percentage than an applicable across the board reduction for all employees of EMPLOYER, or in the event EMPLOYER refuses, following written notice, to comply with any other provision herein benefiting EMPLOYEE, or in the event EMPLOYEE resigns following a suggestion or request by the COUNCIL that 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, or suggestion or request by the COUNCIL to resign. C. In the event EMPLOYEE voluntarily resigns his position with EMPLOYER before expiration of this Agreement and after June 30, 2001, then EMPLOYEE shall give EMPLOYER two (2) months written notice in advance. Additionally, in the event the EMPLOYEE applies for a position elsewhere after June 30, 2001, and during the term of his employment hereunder is included on a list of five or fewer candidates still under consideration on such a list, EMPLOYEE shall promptly give notice thereof to each member of the COUNCIL, which notice shall be confidential insofar as is permitted by applicable law. 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 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. 980513 L:\voll\CWL\EVANS.AGR(4) 3 SECTION 6. SALARY A. EMPLOYER agrees to pay EMPLOYEE for his services rendered pursuant hereto, an annual salary of $100, 000. 00. EMPLOYEE'S salary shall be paid in installments at the same time as other employees of EMPLOYER are paid. 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 annually at the same time that EMPLOYEE'S performance is reviewed pursuant to Section 7. SECTION 7. PERFORMANCE EVALUATION A. Annually, the COUNCIL and EMPLOYEE shall define the goals and objectives which 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 which shall be used to evaluate EMPLOYEE'S performance. Said criteria may be added to or deleted from as the COUNCIL may from time to time determine after consultation with EMPLOYEE. B. The COUNCIL shall review and evaluate the performance of EMPLOYEE at least once annually on or before March 31st of each year. EMPLOYEE recognizes that as City Manager, he shall remind COUNCIL of the obligation to conduct review EMPLOYEE'S performance. The parties agree that the COUNCIL'S failure to carry out the provisions of this Section 7 shall not be deemed a breach of this Agreement. C. Such evaluation shall be discussed with EMPLOYEE, and an opportunity shall be provided to EMPLOYEE to respond to any aspect of said evaluation. It is the intention of COUNCIL that so long as authorized by Section 54957 of the California Government Code, or any other statutory provision, such performance evaluation shall be conducted in closed session. SECTION 8 . OUTSIDE ACTIVITIES EMPLOYEE shall not spend more than an average of six hours per week in teaching, counseling or other non-Employer 980513 L:\voll\CWL\EVANS.AGR(4) 4 related business without the prior approval of the COUNCIL. 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 $500. 00 per month to compensate EMPLOYEE for the use of EMPLOYEE's automobile for City business. SECTION 10. BENEFITS GENERALLY A. Except as specifically provided otherwise in this Agreement, EMPLOYEE shall receive all employment benefits that have been approved by COUNCIL for other management employees, as set forth in the City's Management Employee Personnel Rules and Resolution No. 97-93 , as they now exist and from time to time may be amended by COUNCIL. The provisions of this Section 10 exclude any adjustments to EMPLOYEE'S salary; such increases, if any, shall be determined by the COUNCIL in accordance with the provisions of paragraph B of Section 6. B. The vacation leave granted to EMPLOYEE pursuant to the Management Employee Personnel Rules may be used by EMPLOYEE at his 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. SECTION 11. DUES AND SUBSCRIPTIONS EMPLOYER agrees to budget and pay for the professional 980513 L:\voll\CWL\EVANS.AGR(4) 5 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. 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 EMPLOYER shall defend, indemnify and hold EMPLOYEE harmless from any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of EMPLOYEE's duties as City Manager, except that this provision shall not apply in respect to any intentional tort, actual fraud, malice, crime or corruption by EMPLOYEE. 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 Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows or to such other address as may be provided by written notice by a party to this Agreement: 1. EMPLOYER: Mayor and City Council City of Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90275 980513 L:\voll\CWL\EVANS.AGR(4) 6 2 . EMPLOYEE: Lester G. Evans, Jr. 3556 Windspun Drive Huntington Beach, CA 92649 Alternately, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or the date of deposit of such written notice in the course of transmission in the United States Postal Service. SECTION 16. GENERAL PROVISIONS A. The text herein shall constitute the entire agreement between the parties with respect to EMPLOYEE'S employment with EMPLOYER. B. This Agreement shall be binding on and inure to the benefit of the heirs at law and executors of EMPLOYEE. C. This Agreement shall become effective commencing the 1st day of July, 1998. D. 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. E. Notwithstanding anything in this agreement to the contrary, unless EMPLOYEE agrees otherwise or unless notice of termination has been given prior to any City Council election, EMPLOYEE shall be retained for a minimum of three months following any such election in order to provide the new council members an opportunity to work with and observe EMPLOYEE's performance under this Agreement. 980513 L:\voll\CWL\EVANS.AGR(4) 7 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: '! i 1 3 / CITY OF RANCHO PALOS VERDES (EMPLOYER) MAYOR ATTEST: / CIT CLERK APPROVED AS TO FORM: CITY ATTORNE 311 • Dated: C / � a EMPLOYEE _j \ -//3 220-'1-LESTER G. EVANS, JR. ✓ 980513 L:\voll\CWL\EVANS.AGR(4) 8