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CC Resolution 12795 - 2nd Amendment to CM Contract (Loventhal)RESOLUTION NO. 12795 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDED AGREEMENT WITH BRIAN LOVENTHAL FOR HIS CONTINUED EMPLOYMENT AS CITY MANAGER WHEREAS, the City Council appointed Brian Loventhal as City Manager, effective December 5, 2016; and WHEREAS, the City desires to continue to employ the services of City Manager; and WHEREAS, the City Manager desires to accept continued employment as City Manager for the City; and WHEREAS, the City Department Heads have received compensation increases that have resulted in compensation compaction between the Department Heads and the City Manager; and WHEREAS, the City Council desires to amend the contract with Brian Loventhal to reflect revisions to the terms and conditions of the City Manager's employment; and WHEREAS, in keeping with Campbell Personnel Rules and Regulations section 4.3.C.1, the City Council desires to amend the City Manager's compensation to mitigate the compaction between the income of the Department Heads and the City Manager. NOW, THEREFORE BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute a Second Amended Agreement for City Manager Services with Brian Loventhal, a copy of which is attached hereto. PASSED AND ADOPTED this 18th day of January, 2022, by the following roll call vote: AYES: Councilmembers: Gibbons, Lopez, Bybee, Resnikoff NOES: Councilmembers: None ABSENT: Councilmembers: Landry APPROVED: Paul Resnikoff, Mayor ATTEST: Dusty Christopherson, City Clerk SECOND AMENDED AGREEMENT FOR CITY MANAGER SERVICES WHEREAS, on or about November 2, 2016, the CITY OF CAMPBELL (hereinafter referred to as "City") and BRIAN LOVENTHAL (hereinafter referred to as "City Manager') entered into an Agreement, appointing him as City Manager effective December 5, 2016; WHEREAS, City desires to continue to employ the services of City Manager; WHEREAS, City Manager desires to accept continued employment as city manager for the City; and WHEREAS, the City desires to provide certain benefits, establish certain conditions of employment, and to set working conditions of City Manager. NOW, THEREFORE, for and in consideration of each others' mutual promises, the undersigned parties agree as follows: City Manager agrees to continue to perform the functions and duties of the City Manager of City as set forth in applicable State or local laws, ordinances, resolutions and policies, as well as such instructions and assignments as may be given to him by the Campbell City Council, until terminated as provided by this Agreement. During his employment, City Manager shall receive the following salary and benefits: a. The City Manager shall earn an annual salary of $290,804.80 per year commencing retroactively on the first full pay period after July 1, 2021. As result of the retroactivity of the adjustment to the City Manager's compensation, the City shall pay City Manager a one-time payment of $4,232.80 on or before February 3, 2022, as retroactive compensation ("Retroactive Compensation") for the period of July 12, 2021 to January 9, 2022. The parties agree that the Retroactive Compensation shall fully compensate City Manager for any salary owed before the date of this Agreement. In exchange for this Retroactive Compensation, City Manager hereby provides a full and final release of all compensation owed to City Manager from City, now or in the future, arising from City Manager's employment with City before the date of this Agreement. City Manager hereby understands and agrees that City's agreement to pay the Retroactive Compensation shall not bind, obligate, or inure City to consider such a retrospective payment of lost compensation in the future. This salary may be adjusted at any time by Resolution of the City Council. The City Council shall review the City Manager's Compensation annually, at such time as the City Council reviews the City Manager's performance pursuant to section 3 of this Agreement. The City Council shall not be obligated to make any adjustment to the City Manager's compensation, and the decision of whether or not to make such adjustments shall be left to the sole discretion of the City Council; b. In addition to the foregoing salary, the City Manager shall receive an automobile allowance of $225 per month to compensate him for the use of his personal vehicle for City business. In addition, the City Manager shall accrue Page 1 of 4 vacation at the rate of 5.85 hours per pay period; shall accrue sick leave in accordance with the sick leave accrual schedule for executive employees; and shall receive all other benefits normally and usually provided to City Department Heads as of June 28, 2021 unless specified herein or modified by resolution of the City Council; provided, however that the City shall pay the full premium for any medical insurance coverage afforded for the City Manager and his family members; C. In addition to the foregoing salary, the City will make, in equal proportionate amounts each pay period, an annual contribution of $5,000 into an account for the City Manager in the City approved Section 457 Deferred Compensation Plan. Such contribution is in addition to the City contribution made on behalf of all management employees; d. The City Manager shall also be entitled to a monthly allowance of $40 to be used for a cellular phone service; e. The City Manager shall also be entitled to such benefits as approved by Resolution of the City Council. 3. Each year, the City Manager shall work with the City Council to schedule an evaluation of the City Manager's performance annually to coincide with the fiscal year. The City Council may also schedule performance evaluations at such other times as the City Council deems necessary and appropriate. Notwithstanding this provision, failure of the City Council to conduct an evaluation to coincide with the fiscal year shall not be deemed to be a breach of this Agreement by the City. 4. This Agreement shall remain in effect from year to year until terminated. 5. Notwithstanding section 4 of this Agreement, because an intimate and confidential relationship is necessary between the City Manager and the City, the City Manager understands and agrees that City Manager serves at the pleasure of City, and may be terminated at the will of City at any time and without prior notice, and without statement of reasons or grounds therefor. However, the City Manager shall not be removed during the sixty (60) day period following any change in membership of the Council except upon a vote of at least four/fifths of the City Council. 6. In the event that the City Manager voluntarily chooses to resign his employment, he shall give the City Council at least thirty (30) days' advance written notice of his decision, so that the City Council may undertake a reasonable effort to find a successor. Notwithstanding anything contained in paragraph 5 of this Agreement, in the event that the City Manager is terminated by City while the City Manager is willing and able to perform his duties under this Agreement, then the City Manager shall be entitled to continue to receive the salary set forth in paragraph 2a of this Agreement, for a period of six (6) months following his termination, provided that: Page 2 of 4 City Manager shall make himself reasonably available to City during said six (6) month period to consult on City business; and b. City Manager's termination is not due to an act of moral turpitude, a fraud against City, a conviction of any illegal act involving personal gain to him, or any other act or omission on the part of the City Manager wholly inconsistent with his position or responsibilities. Nothing contained in this section shall apply in the event of a voluntary resignation of the City Manager. Additionally, the compensation afforded under this section shall be the exclusive and sole remedy of City Manager for any termination of his employment. This section provides for a full and final release of all known and unknown and unanticipated claims, injuries, damages, losses, demands, costs, liabilities, actions and causes of action that the City Manager may have against the City, now or in the future, arising out of his termination; and the City Manager waives all rights or benefits that the City Manager now has or in the future may have under the terms of Section 1542 of the Civil Code of the State of California, which section reads as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY. 8. City's waiver of any term, condition, or covenant, or breach of any term, condition, or covenant shall not be construed as the waiver of any term, condition, or covenant or waiver of the breach of any other term, condition, or covenant. 9. This Agreement contains the entire Agreement between City and City Manager relating to the matters contained herein. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. Subsequent modifications to this Agreement shall be in writing and signed by both City and City Manager. 10. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding on City and City Manager. 11. This Agreement shall be governed and construed in accordance with the laws of the State of California. 12. This Agreement may be executed in counterparts and will be binding as so executed on the date last executed. Page 3 of 4 The undersigned parties having read and understood the foregoing terms and conditions of this Agreement hereby agree to be bound thereby. Dated: Dated: Page 4 of 4 EMPLOYER CITY OF CAMPBELL Paul Resnikoff Mayor EMPLOYEE Brian Loventhal City Manager