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a: AGENDA ITEM
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April 14, 2020
TO: Honorable Mayor and Members of the City Council
FROM: Rick Otto, City Manager /
REVIEW: Finance
1 . SUBJECT
Employment Agreement with City Attorney Gary A. Sheatz.
2. SUMMARY
Resolution No. 11175 provides that the City Council may adjust the compensation and
terms of employment of the City Attorney by contract. The proposed agreement provides
for a two year term employment agreement and an increase in compensation to $19,258
per month.
3. RECOMMENDED ACTION
Approve Employment Agreement with City Attorney Gary A. Sheatz.
4. FISCAL IMPACT
The agreement provides for the City Attorney's compensation to be set at $19,258.00 per
month.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
Gary A. Sheatz was appointed City Attorney on March 8, 2019 after serving as Assistant
City Attorney/Senior Assistant City Attorney since December, 2000. The City Council has
conducted an annual review of the City Attorney's performance and desires to enter into
a two year term for his employment agreement which would expire on March 1, 2022,
unless otherwise extended. The City Council, in recognition of the City Attorney's
dedicated service and performance, has agreed to increase his compensation to $19,258
per month, a 3% increase above "F" step ($18,697 per month) currently due under the
Executive Management MOU ("MOU"). The six month severance originally agreed as
part of the City Attorney compensation package will remain in the agreement. All other
terms of the employment Agreement shall be governed by the MOU.
ITEM. 4/14/2020
7. ATTACHMENTS
Employment Agreement.
ITEM 2 4/14/2020
CITY OF ORANGE
AGREEMENT FOR EMPLOYMENT
OF CITY ATTORNEY
THIS AGREEMENT FOR EMPLOYMENT is made and entered into effective March l,
2020 (the "Effective Date"), by and between the City of Orange, a municipal corporation ("City) and
Gary A. Sheatz, an individual ("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.Gary A. Sheatz was first appointed City Attorney on March 8, 2019, after serving as an
Assistant City Attorney and Senior Assistant City Attorney for the City of Orange since December,
2000.
2. The City Council of the City of Orange desires for Gary A. Sheatz to continue serving as
City Attorney, and Gary A. Sheatz desires to continue to perform the duties of City Attorney for the
City.
3.The City Council and the City Attorney now enter into this Agreement for Employment
of Gary A. Sheatz as the City Attorney of the City, with a term to expire on March 1, 2022 ("Term"),
unless otherwise extended or terminated as provided herein.
4.Compensation
a.Upon the Effective Date of this Agreement, the salary of the City Attorney is
Nineteen Thousand Two Hundred Fifty-Eight and 00/100 Dollars ($19,258.00) per month and shall be
paid in the same manner and at the same times as other monthly salaries in the City are paid. During
the Term of this Agreement, if any across the board salary increases are approved for the Executive
Management Team listed in Exhibit "A" to Resolution No. 11175 or as such Resolution may be
amended, then the City Attorney shall be entitled to the same increase.
b.The City Attorney's performance shall be reviewed by the City Council at the
first meeting in March of each year of this Agreement. At such time, the City Council may determine
any salary adjustments, extensions or other revisions to this Agreement. It is the responsibility of the
City Manager to agendize the annual performance evaluation, although any member of the City Council
may agendize the City Attorney's performance review at any time. Annual written evaluations by the
City Council, if any, shall be shared and discussed with the City Attorney in closed session or
individually per the City Council's discretion.
5.Benefits
In addition to any benefits provided in this Agreement, the City Attorney shall receive
those benefits and be governed by all applicable rules and regulations related to those benefits provided
for the Executive Management Team listed in Exhibit "A" to Resolution No. 11175 or as such
Resolution may be amended; provided that it is understood that the City Attorney shall continue to pay
Miscellaneous Member Contributions to the Public Employee Retirement System at the same level and
in the same manner as the Executive Management Team, as provided in Resolution No. 11175 or as
such Resolution may be amended.
6. Termination
a.The City reserves the right to terminate this Agreement for any reason prior to
March 1, 2022, by providing the City Attorney written notice of its election to terminate, including any
statement of cause, and an opportunity for a hearing as set forth in Orange Municipal Code ("OMC")
Section 2.22.010, as it may be amended. Notwithstanding any provision in OMC Section 2.22.010 to
the contrary, a majority of the then-elected City Council is required to approve such termination. Such
termination shall be effective as set forth in the notice of election to terminate, but in no event sooner
than the time required for notice and any requested hearing.
b.Except as otherwise provided herein, in the event the City Attorney is terminated
prior to March l, 2022,the City is obligated to pay the City Attorney full pay and benefits and CaIPERS
retirement service credit accrual for six(6)months, or the actual time left in the Term,whichever is less.
The total severance amount shall be payable no later than thirty (30) days following the date of
termination, or as otherwise ageed by both parties. This severance amount shall only be payable
provided that the City Attorney has executed a release, waiving any rights, claims, or any other actions
arising out of termination of this Ageement in a form acceptable to the City Council.
7.Notwithstanding anything contained herein to the contrary,in the event the City Attorney
is terminated for cause, the City Attorney shall forfeit any and all severance payments described in
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Section 6 of this Agreement. In addition to other grounds,the following shall also be considered grounds
for termination for cause:
a.Performance of outside business interests that conflict directly with the activities
and duties as City Attorney; but not including educational or professional training programs conducted
by the City Attorney whether for personal financial gain or not;
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).
8. The City Attorney shall notify the Mayor and City Council in writing of any unexpected
absence from Orange County in excess of nine (9) regular business hours. The City Attorney shall
provide a telephone number(s) where he can be reached during such absences. Said notices shall
designate an Acting City Attorney who shall be authorized to perform the duties and responsibilities of
the City Attorney in his absence.
9.In the event the City Attorney voluntarily resigns his position with the City before
expiration of the Term of this Agreement or any extension thereof, he shall give the City Council one
1) month's written notice, unless the parties otherwise agree. In the event of voluntary resignation or
expiration of this Agreement, the City Attorney is not entitled to the severance payment described in
Section 6 of this Ageement.
10. This Agreement may be amended in writing signed by both parties.
11. This Agreement contains the entire agreement of the parties and no promises or
representations not included in this Agreement shall have any force or effect. Each party agrees that
they have engaged in arms-length bargaining and have been provided the opportunity to have the
Agreement reviewed by an attorney of their choice.
12. Neither party may assign the performance of this Agreement.
13. If any provision or portion hereof is held unconstitutional, invalid or unenforceable, the
remainder of this Agreement shall be deemed severable, 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.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective on
the date and year first above written.
DATE OF EXECUTION:CITY OF ORANGE, a municipal corporation,
Mark A. Murphy, Mayor
ATTEST:
Pamela Coleman, City Clerk
DATE OF EXECUTION:GARY A. SHEATZ, an individual
APPROVED AS TO FORM:
Mary E. Binning, Sr. Assistant City Attorney
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