HomeMy WebLinkAbout46-06 111- I .
RESOLUTION NO. 46-06
A RESOLUTION OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS
APPROVING AN EMPLOYMENT AGREEMENT WITH
CARL CAHILL FOR THE POSITION OF CITY MANAGER
OF THE TOWN OF LOS ALTOS HILLS
WHEREAS, the City Council wishes to employ Carl Cahill as City Manager of
the Town of Los Altos Hills; and
WHEREAS, Carl Cahill desires to serve as City Manager of the Town of Los
Altos Hills; and
WHEREAS, the City Council has reviewed, and approved the Employment
Agreement between the Town and Carl Cahill, a copy of which is attached hereto as
Exhibit A.
NOW, THEREFORE BE IT RESOLVED: that the City Council of the Town
of Los Altos Hills does hereby approve the Employment Agreement attached hereto as
Exhibit A.
The above and foregoing resolution was passed and adopted by the City Council of the
Town of Los Altos Hills at a regular meeting held on the 22nd day of June, 2006 by the
following vote:
AYES: Mayor Warshawsky, Mayor Pro Tern Jones, Councilmember Kerr
Councilmember Mordo and Councilmember 0°Malley
NOES: None
ABSTAIN:None
ABSENT: None
;yor
ATT S .
City Clerk
840850-1
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EMPLOYMENT AGREEMENT
THIS AGREEMENT,made and entered into at Los Altos Hills, California, this
22nd day of June, 2006, by and between the TOWN OF LOS ALTOS HILLS, a
municipal corporation, hereinafter sometimes referred to as the"TOWN,"and CARL
CAHILL, an individual, hereinafter referred to as "CAHILL."
WITNESSETH:
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WHEREAS, TOWN requires the services of a person with executive and.
administrative qualifications to serve as the City Manager under the Council-Manager
form of government, as provided in the Los Altos Hills Municipal Code; and
WHEREAS, TOWN desires to employ the services of CAHILL as City Manager
of the TOWN, and further desires to assure the continuous service of CAHILL in such
official capacity as provided for in the Municipal Code by establishing herein certain
salary and benefits, and the other terms and conditions of his employment; and
WHEREAS, CAHILL desires to accept.employment as City Manager of the
TOWN under the terms and conditions of employment as set forth herein.
NOW,THEREFORE,in consideration of the mutual promises, covenants and
stipulations herein contained, the parties hereto agree as follows:
SECTION 1. EMPLOYMENT
TOWN agrees to employ CAHILL as City Manager of TOWN, conferring upon
and delegating to CAHILL all of the duties,powers and responsibilities of City Manager
as the same are, and may hereafter be, specifically prescribed in state law and the
Municipal Code and the ordinances,resolutions,policies,rules and regulations as from
time to time existing thereunder by action of the City Council, and CAHILL accepts
employment as City Manager of the Town of Los Altos Hills and agrees to serve as such
commencing June 23, 2006.
SECTION 2. TERM, TERMINATION AND SEVERANCE PAY
A. The term of this Agreementshall be from June 23, 2006 through June 30,
2007. CAHILL agrees to remain in the exclusive employ of the TOWN until the
effective date of termination set forth herein, and neither to accept other employment, nor
to become employed by any other employer until effective date of termination set forth
herein.
B. To provide an incentive to CAHILL to remain steadily in the employ of
the TOWN,the TOWN agrees that its City Council will review this Agreement annually.
on its anniversary date for the purpose of determining its extension for an additional 12-
month period. Any such extension shall be memorialized in writing as an amendment to
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839273.2 CAHILL EMPLOYMENT AGREEMENT
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this Agreement and must be approved by the TOWN and CAHILL. The terms and
conditions contained herein shall apply during any such extension, except as modified in
the amendment.
C. CAHILL serves at the pleasure of the Council. Therefore, nothing in this
Agreement shall prevent, limit or otherwise interfere with the right of the TOWN to
terminate the services of CAHILL at any time by a majority vote of the entire City
Council, subject only to the provisions set forth in this Agreement. Notwithstanding
anything to the contrary in the Municipal Code,the parties acknowledge that the
provisions regarding termination herein are the exclusive procedures used to by the
parties and are intended to supersede any inconsistent policies in the Municipal Code and
any personnel policies.
D. In the event that the TOWN chooses to involuntarily terminate CAHILL
pursuant to Section 2.0 of this Agreement, CAHILL shall be given written notice of the
effective date of termination. Said termination date shall either be(a) the end of the term
of the then-applicable Agreement, or(b) at the election of a majority of the City Council
an earlier date, in which case CAHILL shall be given severance pay in an amount equal
to his regular compensation at whatever pay level CAHILL is at the time of his
involuntary termination for a period of six months from the effective date of termination.
Under this second option, CAHILL shall also be entitled to the Health and Dental
Benefits, Life Insurance, Disability Insurance, and Retirement Benefits specified in
Subsections 4.A.1,4.A.2., 4.A.3, and 4.A.5 for a period of six months from the effective
date of termination.
E. Involuntary termination as used in this Section 2 means: (1) CAHILL's
discharge or dismissal by the City for reasons other than those set forth in the following
sentence, or(2) CAHILL's resignation following a salary reduction greater in percentage
than an across-the-board reduction in salary for all miscellaneous employees, or(3)his
resignation following a request by the City Council, approved by majority vote,that he
resign. "Involuntary Termination"does not include CAHILL's death, incapacity due to
an injury./or illness (physical or mental), dismissal based on court finding of willful
misconduct, or malfeasance, or following conviction of a felony or misdemeanor
involving moral turpitude or dishonesty for personal gain, or dismissal for breach of a
term of condition of this agreement. In the event CAHILL is terminated for reasons other
than those defined as involuntary termination herein,the City shall have no obligation to
provide any severance payment.
F. In the event CAHILL desires to voluntarily resign his position with City,
CAHILL shall give the TOWN thirty(30) days notice in advance,unless the parties agree
otherwise. In the event CAHILL voluntarily resigns,he shall not be entitled to any
payment pursuant to Section 2.D. herein.
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839273.2 . CAHILL EMPLOYMENT AGREEMENT
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SECTION 3. SALARY
TOWN agrees to pay CAHILL for his services rendered pursuant hereto, an
annual salary of One Hundred Thirty Five Thousand dollars ($135,000)payable in
installments at the same time other employees of the TOWN are paid.
SECTION 4. BENEFITS
A. CAHILL shall be entitled to and shall receive the following benefits
during the course of his employment.
1. Health and Dental. Health and Dental insurance coverage for •
CAHILL and his dependents shall be paid by Town in the same manner as
available for other TOWN employees.
2. Life Insurance. Premiums for term life insurance of a value equal
to two (2)times CAHILL's annual salary shall be paid by TOWN, subject to any
limitations imposed by the life insurance company selected by the TOWN.
3. Disability. Disability insurance shall he paid by TOWN in the
same manner as available for other TOWN employees.
4. Retirement. California Public Employees Retirement System
("PERS") contribution,both employee and TOWN shares, shall be paid by
TOWN. CAHILL shall receive the same PERS benefit as for other TOWN
employees, which is an amount totaling two percent(2%) at the age of fifty five
(55).
5. Vacation,Holidays, and Other Forms of Leave. CAHILL shall be
entitled to vacation, holidays,bereavement leave,leave for jury duty and court
appearances, industrial accident leave, and family and medical leave as are
currently set forth in the Town's Personnel Policy Manual,dated December 15,
2005.
6. Administrative Leave. CAHILL shall receive seven(7) days of
administrative leave per calendar year. Any administrative leave not taken shall
not be accumulated from year to year nor shall the value of such administrative
leave be paid to CAHILL upon termination of his employment.
7. Professional Development. CAHILL may attend two (2)
professional conferences per year during the course of his employment. Town
shall pay for registration, travel and reasonable food and lodging expenses for
such conferences. TOWN shall pay for CAHILL's membership in the
International City Management Association("ICMA"), Santa Clara County City
Manager's Association("SCCCMA"), and the American Institute of Certified
• Planners.
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839273.2 • CAHILL EMPLOYMENT AGREEMENT
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8. Automobile Allowance. TOWN shall provide CAHILL with an
automobile allowance of Three Hundred Fifty Dollars ($350.00)per month,
which shall be paid in equal installments at the same time as CAHILL's salary.
CAHILL shall maintain at all times during his employment automobile insurance
with limits of$500,000 per occurrence for bodily injury, personal injury, and
property damage. CAHILL shall further provide the TOWN with a certificate of
insurance indicating the limits of his automobile insurance policy and indicating ,
that.the TOWN is an additional insured on such policy.
9. Deferred Compensation. CAHILL may, his sole discretion,
choose to have the TOWN pay a portion of his salary to the ICMA as.deferred
compensation,provided that such deferred compensation is deducted from
CAHILL's salary and is in conformance with the maximums allowed by federal
and state law. Any deferred compensation shall be prorated for the first and last
months during which CAHILL is employed as City Manager.
SECTION 5. PERFORMANCE EVALUATION
The City Council shall review and evaluate the performance of CAHILL annually
in June of each year, in accordance with specific criteria and performance expectations as
developed jointly by the City Council and CAHILL. Such criteria may be added to or
deleted as the City Council may from time to time determine in consultation with
CAHILL. In addition, the City Council may evaluate the performance of CAHILL at any
time the City Council so desires.
SECTION 6. INDEMNIFICATION AND BONDING
A. TOWN shall defend,hold harmless and indemnify CAHILL 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 performance of
CAHILL'S duties in accordance with the provisions of California Government Code
section 825. CAHILL'S conviction for a felony or misdemeanor shall be a basis for
TOWN'S exemption of this indemnification. TOWN may compromise and settle any
such claim or suit and pay the amount of any settlement or judgment rendered therefrom.
B. TOWN shall bear the full cost of any fidelity or other bonds required of
CAHILL under any law or ordinance.
SECTION 7. GENERAL PROVISIONS
A. Effective Date. This Agreement shall become effective commencing June
23, 2006.
B. Severability. If any provision, or any portion thereof, contained in this
Agreement is held unconstitutional, invalid or unenforceable, the remainder of this
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839273.2 CAHILL EMPLOYMENT AGREEMENT
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Agreement, or portion thereof shall be deemed severable, shall not be affected, and shall
remain in full force and effect except that either party may terminate this Agreement after
providing six (6) months notice if the provision found to be illegal or unenforceable is
deemed to be a material aspect of the Agreement. Termination of the Agreement under
this subdivision shall not give rise to the severance provision of this Agreement.
C. Conflicts of Interest. CAHILL warrants that he presently does not have
and will not acquire any direct or indirect financial interest which would conflict with his
performance of this Agreement.
D. documentsprovided to CAHILL byTOWN and all
Documents. All
reports and supporting data prepared by CAHILL for TOWN under this Agreement are the sole
property of TOWN and shall be delivered to TOWN upon termination of this Agreement by
either TOWN or CAHILL,or at TOWN's written request.All reports,information,data and
exhibits prepared or assembled by CAHILL in connection with the performance of his services
pursuant to this Agreement are confidential until released by the TOWN to the public,and
CAHILL shall not make any of these unreleased documents or information available to any
individual or organization not employed by TOWN without the prior written consent of
TOWN.
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E. Attorneys' Fees and Costs. In the event it becomes necessary for either
TOWN or CAHILL to bring a lawsuit to enforce any of the provisions of this Agreement,
the parties agree that a court of competent jurisdiction may determine and fix a
reasonable attorney's fee to be paid the prevailing party.
F. Entire Agreement; Amendment. This Agreement supersedes any and all
other agreements, either oral or in writing,between the parties hereto with respect to the
employment of CAHILL by TOWN. Each party to this Agreement acknowledges that no
representation,inducements,promises,or agreements,orally or otherwise,have been made by
any party, or anyone acting on behalf of any party,that are not embodied herein, and
that no other agreement, statement, or promise not contained in this Agreement shall
be valid or binding on either party.Any modification of this Agreement will be effective only
if it is in writing and signed by both TOWN and CAHILL.
G. Effect of Waiver. The failure of either party to insist on strict compliance with
any of the terms, covenants, or conditions of this Agreement by the other party shall not be
deemed a waiver of that term, covenant,or condition,and no waiver or relinquishment of any
right or power on any given occasion shall be deemed a waiver or relinquishment of that
right or power on any subsequent occasions.
H. Partial Invalidity. If any provision in this Agreement is held by a court of
competent jurisdiction to be invalid,the remaining provisions shall continue in full force
without being impaired or invalidated in any way. .
I. Law Covering Agreement. This agreement shall be governed by the laws of
the State of California.
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8392712 CAHILL EMPLOYMENT AGREEMENT
J. Notices. Notices pursuant to this Agreement shall be given by deposit in
• the United States Postal Service,postage prepaid, addressed as follows:
(1) TOWN: Mayor
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, California 94022
(2) CAHILL: Carl Cahill
City Manager
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, California 94022
Alternatively,notices required pursuant to this Agreement maybe personally served in
the same manner as applicable to civil judicial process.Notice shall be deemed given as
of the date of personal service or as of the date of deposit of such written notice in the
• United States Postal Service.
IN WITNESS WHEREOF,the Town of Los Altos Hills has caused this
Agreement to be signed and executed in its behalf by its Mayor and duly attested by its
City Clerk, and CAHILL has signed and executed this Agreement.
TOWN OF LOS ALTOS HILLS CARL CAHILL
qqE(-
AN W SHAWSKY, Mayor Carl Cahill
Town of Los Altos Hills
ATTEST:
//�
City Clerk
APPROVED'., TO FORM: •
City.Attorne
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839273.2 CAHILL EMPLOYMENT AGREEMENT