12-20-2011 - Post Retirement Employment Agreement - City Manager0
Date:
To:
From:
Subject:
December 20, 2011
WEST COMA
Memorandum
Andrew G. Pasmant, City Manager City Manager's Office
and City Council ii
Chris Freeland, Deputy City ManagerOt'
ADDENDUM TO CITY COUNCIL STAFF REPORT 10
(POST RETIREMENT EMPLOYMENT AGREEMENT -CITY MANAGER)
As mentioned in the December 20, 2011, Staff Report (Post Retirement Employment Agreement -
City Manager, Agenda Item # 10).
A copy of the draft post -retirement agreement was not available at the time the staff report was
drafted. Attached is the proposed Post Retirement Employment Agreement being presented for the
City Council's consideration tonight.
City of West Covina
Memorandum
AGENDA
TO: Andrew G. Pasmant, City Manager ITEM NO.
and City Council
FROM: Chris Freeland, Deputy City Manager
10
DATE: December 20, 2011
SUBJECT: POST RETIREMENT EMPLOYMENT AGREEMENT -CITY MANAGER
RECOMMENDATION:
It is recommended that the City Council accept City Manager Andrew Pasmant's letter of
retirement and approve a post -retirement employment agreement with Mr. Pasmant to serve as
the City Manager for a period not to exceed one calendar year..
DISCUSSION:
For the past few months, City Manager Andrew Pasmant has been considering retirement from
the City of West Covina. Given the current financial state of the City, his involvement in
numerous City projects, and with significant challenges facing the City, Mr. Pasmant has
concerns with leaving the organization without giving the City significant time to address these
matters and to determine what the City.Council would like to do with his position. With Mr.
Pasmant's experience working on various ongoing City projects, he provides expertise and
experience that the City can still utilized until those pending matters are addressed.
The California Public Employees' Retirement System (Ca1PERS) allows retired employees to
accept a temporary appointment as a "retired annuitant" as long as the employee in the position
works less than 960 hours per fiscal year (July 1-June 30). By back filling the City Manager's
position with a temporary appointee, the City of West Covina can generate significant budgetary
savings. The savings would be generated from the City not having to pay the employers share of
the employees retirement, health care benefits, accrual of leave banks (i.e. vacation, sick leave,
and floating holidays), deferred compensation, life insurance, etc. It is estimated that the
appointment of a temporary appointed City Manager under the 960-plan would generate a
savings to the City of West Covina of approximately $18,333/month ($220,000/year).
Mr. Pasmant has expressed a willingness to work under the 960-plan until the City is able to
address some of the pending matters facing the City and determine how to make a transition to a
new City Manager over the course of the next year. Based on the current salary of the City
Manager, the equivalent hourly rate under the 960-plan will be $108/hour. In addition, Mr.
Pasmant will also be entitled the use of a city vehicle or $300/month auto allowance, as afforded
to other management employees, and the continued use of City equipment and supplies as
currently allowed.
Attached is Mr. Pasmant's letter of retirement (Attachment # 1) that will become effective on
December 30, 2011, and includes a proposal for the City of West Covina to hire him under a
960-plan, which would generate a savings to the City. If the City Council does not wish to hire
Mr. Pasmant on the 960-plan, he has offered to extend his retirement date on a status quo basis
through a portion of 2012. If the 960-plan is approved, it will become effective on December 31,
2011. Mr. Pasmant was appointed West Covina City Manager in September 2001.
OPTIONS:
The City Council has the following options:
1. Accept City Manager Andrew Pasmant's letter of retirement and approve a contract
amendment to hire him as retired annuitant for a period not to exceed one calendar year;
or
2. Not enter into a post -retirement agreement with Mr. Pasmant and request that he continue
to operate under his existing employment contract.
3. Provide alternative direction.
FISCAL IMPACT:
The appointment of Mr. Pasmant as a retired annuitant will generate a savings of approximately
$18,333/month ($220,000/year) in savings to the City of West Covina, generated from the
elimination of management benefits afforded to a benefited City Manager position.
Prepared By:
C_�(�_
Chris Freeland
Deputy City Manager
Attachment:
1. Andrew Pasmant's Letter of Retirement
Please Note: A copy of the draft post -retirement agreement was not
available at the time this report was drafted. It will be
shared with the City Council and public prior to the
December 20, 2011, City Council meeting.
•
OUACHMENT.
December 15, 2011
To: Mayor Touhey and Members of the City Council
From Andrew G. Pasmant, City Manager
Subject: Letter of Intent to Retire and Alternative Work Proposal
As some of you are aware, I have been struggling with this decision to retire for a number
of months. I had many personal and business commitments that I felt I needed to
complete before I considered moving on to the next chapter of my life. As you are aware,
I have submitted my formal retirement papers with PERS showing an effective date of
December 30, 2011. I have previously, submitted to the City a proposal to consider an
alternative work arrangement, which could save the City money. Although I would like
to retire, I want to help make this transition as easy for everyone as possible. Therefore I
have identified two alternatives that would provide you more time to assess where and
what you want to do, as well as save the City money.
I am at a point, where I need to make a decision, whether to proceed with my retirement
date of December 30, 2011, or extend the date to an alternate date in 2012. I have
previously submitted a proposal to the Council providing two options to consider, one of
which could generate a significant savings for the City. The two options are to extend my
retirement date to 2012 on a status quo basis or alternatively, authorize me to remain
employed under a temporary 960 plan. The 960 plan limits the number of hours I may
work to 960 hours per fiscal year. By extending the retirement, the City can generate a
savings and I can continue to serve the City until a transition is made.
It is my desire to give you options before I leave the City. If you feel that it would be
mutually advantageous for me to stay longer, I am willing to make changes to my
retirement date especially. given the timing of recent senior management departures, the
number of City Manager vacancies statewide and its affect on recruitment and costs,
labor negotiations and staff shortages.
Whatever you decide, I truly appreciate the opportunity to have been a part of the history
of this great community, which I will truly miss.
CITY OF WEST COVINA
POST RETIREMENT
EMPLOYMENT AGREEMENT
This AGREEMENT (hereinafter referred to as "Agreement") for post retirement
employment is made and entered into between ANDREW G. PASMANT (hereinafter
referred to as "Employee") and the CITY OF WEST COVINA, a municipal corporation
organized under the laws of the State of California (hereinafter referred to as "City"), in
order to provide, in writing, the terms and conditions of part-time employment with the
City.
WHEREAS, Employee has, in accordance with the terms of his existing
employment agreement, notified City that December 30,2011 will be his last day of
employment with, which agreement will automatically expire as of the same date;
WHEREAS, effective December 31, 2011, Employee will be deemed a retired
employee under CalPERS and no longer an employee of City;
WHEREAS, Government Code Sections 21221 and 21224 provide that a public
agency contracting with the California Public Employees Retirement System (CaIPERS)
may appoint a retired employee under Ca1PERS to a position deemed by the governing
body to be of limited duration and requiring specialized skills, subject to certain
limitations and restrictions on the pay rate and the hours of employment for such
appointee;
WHEREAS, the .City Council has determined in accordance with Government
Code Sections 21221 and 21224 that Employee possesses specialized skills that are
needed by City for a limited duration;
WHEREAS, City and Employee entered into a prior employment agreement
dated September 19, 2001, along with subsequent amendments. Nothing contained
within this post retirement agreement is intended to impair or void any provisions
contained in that 2001 agreement or its amendments;
WHEREAS, this post employment agreement is intended to identify the
expectations of the parties only during the period of this post retirement employment with
the City.
NOW, THEREFORE, the Parties hereto agree as follows:
1. Post Retirement Employment -City agrees to hire Employee on a hourly basis
commencing on December 31, 2011, and terminating on December 30, 2012,
unless extended in writing based on City Council approval in accordance with
Ca1PERS regulations. Employee agrees and does accept employment upon
the terms and conditions set forth herein.
2. Duties and Obligations of Employee -At the direction of the City Council
Employee agrees to serve as the City's City Manager and Executive Director
of its various related public entities. Employee agrees to perform such duties
to the best of his ability in an efficient and competent manner. In addition,
Employee agrees that he will not engage in any activity that may be
competitive with City's business or pose a conflict of interest with that
business and that he will not misuse, nor improperly disclose, any confidential
or other proprietary information of City.
3. Work Schedule -Employee shall work an hourly schedule subject to the
limitations required under Government Code sections 21221 and 21224.
4. Compensation -Employee's compensation shall be at the hourly rate paid to
Employee as of December 30, 2011, which is One Hundred Eight Dollars
($108.00). Said rate shall be payable at the same time and in the same manner
as other employees of City are paid.
5. Benefits -Employee shall be allowed either the use of a City vehicle under the
same terms and conditions of his previous employment agreement with the
City of West Covina, or a $300/month auto allowance, at his discretion,
maintain the equivalent life insurance policy afforded to other management
employees. Employee will also be entitled to continued use of City
equipment and supplies, such as computers and cellular phones to provide
service to the City.
6. Supplemental Retirement -Under his previous City Manager agreement, the
Employee is entitled to supplemental retirement benefit, which would be used
by Employee to augment the cost of his retiree medical/health benefits. The
City's administrative process to provide for this benefit has not been
completed. In the event that the necessary documentation is not completed,
prior to the date of retirement, the City of West Covina will provide
continuous medical/health insurance in the same amounts currently afforded
to Employee until the supplemental retirement takes effect.
7. Professional Development- The City hereby agrees to pay the travel and
reasonable expenses of the Employee for professional and related office
travel, .meetings and occasions to continue the professional development of
the Employee, and other official travel on behalf of the City, including but not
limited to, the International City/County Management Association, the League
of California Cities, and such other national, regional, state, and local
governmental groups and committees, which Employee serves as a member.
The City will also continue to pay the Employee's current professional
association and civic/non-profit association membership dues.
8. Indemnification -Employer shall defend, save 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 performance of Employee's duties as City Manager.
Employee agrees to cooperate in any and all litigation matters, which may be
filed in the future. Employer shall pay all costs incurred by Employee in
connection therewith, including travel fees and costs.
9. Termination of Agreement -The City and Employee agree that the employment
relationship created by this post retirement agreement is "at will" and either
City or Employee may terminate the relationship for any reason, with or
without cause, without prior written notice.
Employee hereby acknowledges and agrees that Employee shall not be
entitled to any hearing or due process rights in connection with any
disciplinary or termination action undertaken against Employee by City, and
that this Agreement sets forth the only terms and conditions applicable to the
termination of Employee's employment under this post retirement agreement.
10. Modification -Any modification of this Agreement will be effective only if it is
in writing and signed by both Parties.
11. Entire Agreement -This Agreement contains all of the covenants and
agreements between the City and Employee with respect to Employee's post
retirement employment by City. City and Employee acknowledges that no
representations, inducements, promises, or agreements, oral or otherwise,
have been made by either party, or anyone acting on behalf of either party,
which are not embodied herein, and that no other agreement, statement or
promise not contained in this Agreement shall be valid or binding on either
Ply•
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12. Law Governing Agreement- This Agreement shall be governed by and
construed in accordance with the laws of the State of California. Venue shall
be in Los Angeles County, California.
13. Notices -Any notice to be given hereunder by either the City or Employee shall
be in writing and be transmitted by personal delivery, or certified mail, with
return receipt requested. Mailed notices shall he addressed to the following
respective addresses:
City of West Covina
Attn: Assistant City Manager
1444 W. Garvey Avenue
West Covina, CA 91790
Notices delivered personally shall be deemed communicated as of the date of
actual receipt. Mailed notices shall be deemed communicated as of the date
imprinted on the return receipt.
14. Legal Action- In the event either party commences an action, either by
arbitration or judicial proceedings, ,against the other arising out of or in
connection with the enforcement of the terms of this post retirement
agreement, the prevailing party shall be entitled to have and recover from the
losing party, in addition to any award at law or equity, reasonable attorney's
fees, court costs, and costs of suit or arbitration, including costs of appeal, if
any, in such amount as the court or arbitrator may award.
IN WITNESS WHEREOF, the City of West Covina (City) has caused this Agreement to
be signed and executed on its behalf by its Mayor and duly attested by its City Clerk, and
Andrew G. Pasmant (Employee) has signed and executed this Agreement, both in
duplicate, this 2151 day of December 2011.
"Employee"
Michael Touhey Andrew G. Pasmant
Mayor
Attest: Approved As to Form:
Susan Rush Arnold Alvarez-Glasman
Assistant City Clerk City Attorney