City of Culver City, California
Agenda Item Report
Meeting Date: 07/12/10 Item Number: A-4
CITY COUNCIL AGENDA ITEM: Appointment of John Nachbar as City Manager and
Approval of an Executive Employment Agreement Confirming his Appointment.
Contact Person/Dept.: Serena Wright Phone Number: 310-253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (07/08/10)
Department Approval:
Serena Wright (07/08/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/08/10)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/08/10)
City Manager Approval:
P. Lamont Ewell (07/08/10)
RECOMMENDATION:
Staff recommends the City Council appoint John Nachbar as City Manager and
approve an executive employment agreement confirming his appointment as City
Manager effective July 12, 2010.
BACKGROUND/DISCUSSION:
At the June 28, 2010 Council meeting, the City Council held a closed session
regarding the appointment of John Nachbar as the City Manager. As authorized by
and in consultation with the City Council, a proposed Executive Employment
Agreement has been negotiated with Mr. Nachbar. A copy of the proposed
Agreement has been included in the agenda packet.
FISCAL ANALYSIS:
Fiscal impact is within the parameters established by City Council. There are
sufficient appropriations in the adopted Fiscal Year 2010/2011 budget to cover the
costs of this contract.
ATTACHMENTS:
Executive Employment Agreement
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Appoint John Nachbar as the City Manager; and
2. Approve an Executive Employment Agreement confirming Mr. Nachbar’s
appointment as City Manager; and
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the Mayor to execute such documents on behalf of the City.
MEETING DATE: 7/12/10
AGENDA ITEM: Appointment of John Nachbar as City Manager and
Approval of an Executive Employment Agreement
confirming his Appointment Effective July 12, 2010
ATTACHMENTS
Pages
1. Executive Employment Agreement 1 — 11Contract No. 2010-
JOHN NACHBAR, CITY MANAGER
EXECUTIVE EMPLOYMENT AGREEMENT
This Employment Agreement is entered into on this 12 th day of July 2010, by
and between the City of Culver City, California, a municipal corporation, hereinafter
referred to as "City", and John Nachbar, hereinafter known as "Employee". The City and
the Employee are collectively referred to as "the Parties" and agree as follows:
RECITALS
A. The City Council of the City desires to enter into this Agreement:
To appoint Employee as City Manager.
2. To encourage the highest standards of public service on
the part of Employee and provide assurances to Employee regarding
his employment by offering certain compensation, benefits and other
incentives.
3. To ensure that Employee shall do his utmost to promote
the City's interests, and devote such time and effort as necessary to
properly perform his duties.
4. To establish an equitable process for terminating
Employee's services at such time as he may be unable to fully
discharge his duties, or when City may desire to otherwise terminate
his employment in accordance with this Agreement.
5. To establish a framework for a working relationship
built on mutual respect among the City Council, City Manager, Staff
and the Community.
1Contract No. 2010-
B. Employee desires to accept such employment with City on the terms
and conditions set forth in this Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and conditions contained herein, the Parties agree as follows:
1. EMPLOYMENT AND DUTIES:
The City hereby agrees to employ Employee as City Manager of the City of
Culver City. Employee is appointed by and serves at the pleasure of the City
Council in an at-will capacity. Employee shall exercise the powers and
perform the duties of the position of City Manager, as set forth in the City
Charter, Culver City Municipal Code, resolutions, policies, and other rules
and regulations of City including, but not limited to, those duties listed in
Exhibit "A" attached hereto and incorporated herein by this reference. in
addition, Employee shall exercise such other powers and perform such other
lawful duties as the City Council may from time-to-time assign to Employee.
2. TERM OF AGREEMENT:
A. This Agreement shall continue in full force and effect unless and until
modified by City and Employee in writing or unless and until such time as
Employee's employment relationship is terminated in accordance with
Section 3.
2Contract No. 2010-
B. Unless approved in advance or otherwise directed by the City Council,
Employee shall not engage in any activity, consulting service or enterprise,
for compensation or otherwise, which in the determination of the City
Council, actually or potentially in conflict with or inimical to, or which
interferes with, his duties and responsibilities to Employer.
3. TERMINATION OF AGREEMENT:
A. By City Council action, City may terminate this Agreement, at
any time, with or without cause, upon thirty (30) days written notice to
Employee. If City terminates this Agreement for any reason other than
reasons set forth in Section 4 of this Agreement, City shall provide severance
pay to Employee on the effective date of such termination in an amount
equal to the Employee's base salary and benefits for a six-month period at
Employee's rate of pay on the effective date of such termination. Under no
circumstance shall the City terminate this Agreement within ninety (90) days
immediately following a regular municipal election.
B. Employee may terminate this Agreement at any time upon thirty
(30) days written notice to the City. Upon Employee's termination of this
Agreement, Employee shall not be entitled to any severance pay, with the
exception of all unused accruals as outlined in the Culver City Management
Group Memorandum of Understanding ("CCMG MOU").
C. In the event Employee is unable to perform his duties, with or
without reasonable accommodation, due to incapacity or illness, as verified
appropriately by the City's physician, Employee shall be permitted to use hisContract No. 2010-
leave as permitted by law, and the Council may also grant any other form of
leave it deems appropriate.
4. DISCIPLINE AND/OR TERMINATION FOR CAUSE:
A. This Agreement may be terminated by the City Council for
"cause." For purposes of this Agreement, "cause" shall be defined as
circumstances where Employee:
Consistently and repeatedly refuses and/or willfully fails
to perform the duties of his position;
(ii) Consistently and repeatedly refuses and/or willfully fails
to carry out the orders, directions or decisions of the City
Council; or
(iii) Commits any material act of dishonesty, malfeasance,
moral turpitude, fraud, or theft.
City reserves the right to take appropriate disciplinary action for
cause.
C. Employee shall be provided written notice of City's intent to take
disciplinary action for Cause at least ten (10) calendar days prior to the City
Council meeting at which a final decision will be made. Employee shall be
provided an opportunity to respond to the notice of intended action. Any
decision or action of the City Council following such response shall be final.
D. Due to the salaried and exempt nature of Employee's position
under the Fair Labor Standards Act (FLSA), if Employee is relieved of duty
during the pendency of the above process, Employee shall continue toContract No. 2010-
receive full pay and benefits until final action of the City Council has been
taken.
5. SALARY AND COMPENSATION:
Employee shall be compensated as set forth below, and paid
pursuant to the payroll procedures and provisions affecting Management
employees of the City. Except as specifically provided herein, Employee
shall receive all the benefits, including vacation and sick leave accrual,
provided to other Management employees as described in the adopted
CCMG MOU for the 2005-2010 period, and as may be amended in the
future.
A. Salary and Other Compensation
1. Salary. Employee shall be placed in the City's
Classification and Salary Plan. Employee's base annual salary shall be
$245,049, which includes $12,000 annual Redevelopment Agency stipend as
set forth in Section 5.A.2.
Employee's base annual salary, except as it may be adjusted
for "cost-of-living" provided in subsection (B) below, shall constitute the
"Salary" for this position for the term of the Agreement. Payment of
Employee's Salary shall be made in biweekly installments in the same
manner as other employees of the City.
2. Redevelopment Agency Stipend. Per Resolution of the
Culver City Redevelopment Agency, Employee receives a quarterly stipend
totaling the amount of $12,000 annually to compensate Employee forContract No. 2010-
performing the duties of the Executive Director of the Redevelopment
Agency. The City shall take necessary action, if possible, to include payment
of the Redevelopment Agency stipend as part of the base annual salary.
B. CPI. Effective August 2011, and each twelve (12) month
anniversary thereafter, City agrees to increase the base salary identified in
subsection (A)(1) above, by an amount equal to the percentage increase in
the Consumer Price Index (CPI) for Urban Wage Earners and Clerical
Workers (1982-84 = 100) for the Los Angeles Metropolitan area for the
immediately preceding twelve (12) months or any negotiated salary
adjustment contained in the CCMG MOU, whichever is greater.
C. Relocation and Temporary Housing Assistance. City shall
reimburse Employee for the moving expenses of Employee's household
possessions and cars from Overland Park, Kansas to Culver City, California.
The reimbursement shall be based upon the lowest of three (3) estimates for
an insured, full service move. In addition, City shall provide Employee with
relocation and temporary housing assistance allowance. The net allowance
shall be payable in one lump sum following the commencement of this
Agreement and shall not exceed twenty thousand dollars ($20,000).
D. Residency Incentive. Employee shall be offered a Residency
Incentive as set forth in the Residency Incentive Agreement attached to this
Agreement as Exhibit "B" and incorporated herein by this reference.
E. Vacation and Sick Leave. - In addition to leave accruals
provided within the CCMG MOU for the 2005-2010 period, and as may be
amended in the future, Employee shall be granted a starting bank of 60Contract No. 2010-
hours of vacation leave and 40 hours of sick leave upon initially reporting and
assuming the duties of City Manager.
F. Administrative Leave. Employee shall be entitled to ten (10)
days of Administrative Leave during each year of this Agreement. Any
unused Administrative Leave at the end of each year of this Agreement shall
be forfeited.
G. Auto Allowance. Employee shall receive Six Hundred Dollars
($600) per month automobile allowance as full reimbursement of use of his
personal vehicle for City related business and commuting purposes.
H. Deferred Compensation/Retention Bonus. Effective August
2011 and upon satisfactory performance, Employee shall receive a
. contribution from the City for deferred compensation in the amount of
$12,500. Effective August 2012 and upon satisfactory performance,
Employee shall receive a contribution from the City for deferred
compensation in the amount of $17,500. In order to be eligible for this
benefit, Employee must be continuously employed for the twelve months
prior to the payment of each deferred compensation/retention bonus.
Employee shall be responsible for any taxes due in regard to this deferred
compensation/retention bonus.
I. Cellular Telephone. In accordance with City policy, Employee
shall be provided with a cellular phone or a monthly stipend, as approved by
City Council, in order to be accessible by City officials.Contract No. 2010-
6. PERFORMANCE EVALUATION:
The City Council shall review and evaluate the performance of
Employee quarterly for the first year of this Agreement and at least once per
year thereafter for the remainder of the term of this Agreement. At a
minimum, the annual review shall take place on or about the anniversary_
date of this Agreement. Said reviews and evaluations shall be in accordance
with specific written criteria developed by the City Council in consultation with
the Employee, and may be amended from time-to-time. The Mayor shall
provide Employee with a written summary of the findings of the City Council,
and provide an adequate opportunity for Employee to discuss his evaluations
with the City Council. The City Council and/or Employee may desire
additional performance evaluations between anniversary dates. Such
evaluations shall be less formal and may be conducted without written
comments or reports.
7. OTHER TERMS AND CONDITIONS OF EMPLOYMENT:
A. Other Conditions. The City Council may, from time-to-time in
writing, fix other terms and conditions of employment relating to Employee,
provided such terms and conditions are not inconsistent with or in conflict
with the provisions of this Agreement, the City Charter, Culver City Municipal
Code, or other applicable law.
B. Communications with the City Council. It will be the obligation
of the Employee to be accessible to the Mayor and all Members of the City
Council on as equal a basis as reasonably possible and to communicateContract No. 2010-
information to the Mayor and all Members of the City Council in a similar and
equal manner at approximately the same time.
C. Notification of Leave from Office. Employee shall provide the
City Council with reasonable notice prior to taking two (2) or more
consecutive vacation or administrative days off.
D. Indemnification. City shall defend, hold harmless and
indemnify Employee against 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 course and scope of Employee's duties as
City Manager, in accordance with the provisions of applicable law, including
Government Code Section 825, and shall further provide Employee a
defense in accordance with the provisions of applicable law, including
California Government Code Section 995, et seq., subject to the limitations
and qualifications contained in these or other applicable statutes. City may
compromise and settle any such claim or suit and pay the amount of any
settlement or judgment resulting therefrom. The obligation to defend and
indemnify Employee shall survive the termination or expiration of this
Agreement as to liability incurred during the term hereof. Nothing in this
subsection shall be deemed to reduce the City's obligation to defend or
indemnify Employee under applicable Federal, State or local law.
8. GENERAL PROVISIONS:
A. Entire Aoreement. This Agreement represents the entire
Agreement between the City and Employee regarding the matters describedContract No. 2010-
hereunder, and all preliminary negotiations and agreements are deemed a
part of this Agreement. No verbal agreement or implied covenant shall be
held to vary the provisions of this Agreement. This Agreement shall bind
and inure to the benefit of the Parties to this Agreement, and any subsequent
successors, heirs and assigns.
B. Modification. This Agreement may not be modified, nor may
any of the terms, provisions or conditions be modified or waived or otherwise
affected, except by a written amendment signed by all parties hereto.
C. Notice. Any notice given to City under this Agreement shall be
given in writing to City, either by personal service or by registered and
certified mail, postage prepaid, addressed to the City of Culver City, City
Clerk at City's principal place of business. Any notice to Employee shall be
given in a like manner, and if mailed shall be mailed to the Employee at his
home address as shown in City's personnel files.
D. Severabilitv. If any provision of this Agreement is held invalid
or unenforceable, the remainder of this Agreement shall nonetheless remain
in full force and effect.
E. Resolution of Disputes. Should a dispute arise between the
Parties specifically concerning the amount of salary or period for which salary
is to be paid, the Parties agree that the dispute shall be submitted to binding
arbitration. Such arbitration shall be conducted by a mutually agreed
arbitrator and pursuant to the rules of the American Arbitration Association.
Each Party shall bear one-half the costs of the arbitration. The arbitrator may
award costs and attorney's fees to the prevailing party as determined by the
10Contract No. 2010-
arbitrator. The Parties agree that any disputes resolved by arbitration shall
be final and binding. Any other disputes arising out of this Agreement, not
specifically referenced herein, shall not be subject to the provisions of this
Section.
F. Governing Law. The terms of this Agreement shall be
interpreted according to the laws of the State of California. If litigation arises
out of this Agreement, then venue shall be in the Superior Court of Los
Angeles County.
G. Effective Date. The effective date of this Agreement is the date
it is signed on behalf of the City.
EMPLOYEE
By: 0-1„ L Name: John Nachbar
Dated: Dated: Title: City Manager
CITY OF CULVER CITY
By: Christopher Armenta,
Mayor, City of Culver City
ATTEST: APPROVED AS TO FORM:
Martin R. Cole, City Clerk Carol Schwab, City Attorney
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