03.09 City Attorney Employment AgreementAGENDA ITEM
February 12, 2019
TO: Honorable Mayor and Members of the City Council
THRU: Rick Otto, City Manager
FROM: Will Kolbow, Administrative Services Director
REVIEW: City ManagKr �R)Finance (-�
1. SUBJECT
City of Orange Agreement for Employment of City Attorney.
2. SUMMARY
The City Council has appointed Gary Sheatz as City Attorney and is asked to approve an
agreement for employment obligating the City to pay the City Attorney an aggregate
severance sum equal to six (6) months base salary if terminated prior to May 31, 2020
and three (3) months base salary if terminated at anytime thereafter.
3. RECOMMENDED ACTION
Approve the agreement with Gary Sheatz as City Attorney and authorize the Mayor and
the City Clerk to execute the agreement on behalf of the City.
4. FISCAL IMPACT
The total exependiture for this agreement, if utilitzed, could require the payment between
approximately $49,000 and $99,000 and will be funded through the General Fund (100).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
In closed session on January 8, 2019, the City Council appointed Gary Sheatz the next
City Attorney, effective March 8, 2019 and announced the appointment in open session
the same evening. The City Council is asked to approve Mr. Sheatz be compensated at
Step "D" of the current published pay scale for the City Attorney position and further
approve an employment agreement providing for an aggregate severance sum equal to
six (6) months base salary if terminated prior to May 31, 2020 and three (3) months base
salary if terminated at any time thereafter. The attached agreement reflects those terms.
ITEM 3, q 1 02/12/2019
7. ATTACHMENTS
1. City of Orange Agreement for Employment of City Attorney
ITEM 2 02/12/2019
CITY OF ORANGE
AGREEMENT FOR EMPLOYMENT
OF CITY ATTORNEY
THIS AGREEMENT, is made and entered into to be effective as of March 8, 2019, by and
between the City of Orange, a municipal corporation, hereinafter referred to as "City" and Gary A.
Sheatz, an individual, hereinafter referred to as "City Attorney".
In consideration of the respective and mutual covenants hereinafter contained and made, and
subject to all the terms and conditions hereof, the parties agree as follows:
1. Except as specifically provided herein, the terms of employment of City Attorney are
those specifically provided under the Orange Municipal Code, state law and City Council Resolution
No. 11124 and any future amendments thereto, which sets forth compensation and benefits for Executive
Directors and Top Management employees.
2. In the event the City Attorney is terminated prior to May 31, 2020, the City is obligated
to pay the City Attorney an aggregate severance sum equal to six (6) months base salary pay package as
of the termination date.
3. In the event the City Attorney is terminated after May 31, 2020, the City is obligated to
pay the City Attorney an aggregate severance sum equal to three (3) months base salary pay package as
of the termination date.
4. The total severance amount shall be payable 30 days following the date of termination.
In the event the City Attorney accepts the severance payment, as a condition precedent the City Attorney
must execute a waiver of any rights, claims, or any other actions arising out of termination of this
Agreement in a form acceptable to the City Council. The City Attorney will not be entitled to such
severance if the termination is due to misconduct in office. Misconduct includes, but is not limited to:
a. Performance of outside business interests that conflict directly with the activities
and duties as City Attorney;
b. Refusal to take or subscribe any oath or affirmation that is required by law;
C. Conviction of a felony or conviction of a misdemeanor involving moral turpitude
(a conviction following a plea of nolo contendre is deemed a conviction).
5. If any provision or portion hereof is held unconstitutional, invalid or unenforceable, the
remainder of this Agreement shall be deemed severable and shall not be affected and shall remain in full
force and effect, and the City Council and the City Attorney shall be deemed to have intended to enter
into this Agreement even absent such provision or portion hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective on
the date and year first above written.
DATE OF EXECUTION:
ATTEST:
Pamela Coleman, City Clerk
DATE OF EXECUTION:
DATE OF EXECUTION:
CITY OF ORANGE, a municipal corporation,
Mark A. Murphy, Mayor
GARY A. SHEATZ, an individual,
APPROVED AS TO FORM:
Monica Espinoza
Assistant Human Resources Director
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