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CITY COUNCIL AGENDA ITEM NO. 21

Meeting Date: February 27, 2001

Subject/Title: Employment Agreement between the City of Brentwood and Larry Shaw, Police Chief

Submitted by: Jon Elam, City Manager

Approved by: Jon Elam, City Manager


RECOMMENDATION
Motion to approve the employment agreement between the City of Brentwood and Larry J. Shaw, Police Chief.

PREVIOUS ACTION
Initial employment agreement was approved January 12, 1999 retroactive to January 1, 1999.

BACKGROUND
The original agreement has an expiration date of May 31, 2001. However, Shaw has requested to extend the agreement through December 28, 2001, and as defined in Section 2. Term: sub-section 1., “…both the City and SHAW may agree to extend the contract.” 

The revised agreement includes the following: 
1. The term date of the agreement changed from May 31, 2001 to December 28, 2001
2. Current salary is reflected
3. Vacation leave accrual reflects changes which resulted from last year’s negotiations
4. Revisions to the CalPERS health and retirement benefits plus employee contributions toward retirement benefits effective September 16, 2000 and July 1, 2001

The City Council Personnel Sub-committee met on Thursday, February 8, 2001, to discuss the extension of the agreement. While the Sub-committee has no issue with the performance of Shaw, they did not reach consensus over the employment being governed by an employment agreement. However, the sub-committee agreed to present the employment agreement for consideration by the full City Council.

EMPLOYMENT AGREEMENT BETWEEN THE CITY OF BRENTWOOD AND LARRY J. SHAW, CHIEF OF POLICE

This agreement made and entered into this 27th day of February, 2001, by and between the City of Brentwood, hereinafter called “Employer” and Larry J. Shaw, Chief of Police, hereinafter called “SHAW”, both of whom understand as follows:

WITNESSETH:

WHEREAS, Employer desires to employ and retain the services of SHAW as Police Chief of the City of Brentwood; and

WHEREAS, The City Council of the City of Brentwood wishes to retain the services of SHAW and to establish and incorporate certain benefits, conditions of employment and working conditions of said SHAW into a written contract; and

WHEREAS, SHAW desires to serve as Police Chief of said City and SHAW represents that he has the requisite skill and experience to perform the job of Chief of Police for the City of Brentwood; and

WHEREAS
, this agreement supersedes the original agreement between Employer and SHAW that was effective January 1, 1999.

NOW, THEREFORE IN CONSIDERATION OF THE MUTUAL CONVENANTS HEREIN CONTAINED, the parties agree as follows:

Section 1. Duties:

Employer hereby agrees to employ Larry J. Shaw, as Police Chief of the City of Brentwood, who will perform such other legally permissible and proper duties and functions as the City Council and City Manager, shall assign him from time to time. From an organizational standpoint, SHAW shall report to the City Manager of the City of Brentwood with regard to day-to-day responsibilities. SHAW agrees to devote his full time to said duties as shall be required for their proper performance, regardless of the number of hours involved.

Section 2. Term:

1. The term of this Agreement shall be from February 27, 2001 to December 28, 2001 inclusive, unless terminated earlier by either party or unless terminated by the death or permanent disability of SHAW. Prior to the expiration date of December 28, 2001, both the City and SHAW may agree to extend the contract.

2. SHAW shall devote his time and efforts exclusively to the position of Chief of Police. SHAW agrees not to undertake any other employment or consulting incompatible with his duties hereunder during the term of this Agreement without City Manager written approval, unless otherwise required under State or Federal law, such as military service.

3. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the SHAW to resign at any time from his position with Employer, subject to the provisions set forth in Section 3.

Section 3. Termination and Severance Pay:

This Agreement may be terminated at any time in any one of the following ways:

A. By mutual agreement of the parties hereto, expressed in writing; or

B. By SHAW, upon giving to Employer not less than four (4) weeks prior written notice of his election to terminate; or

C. By Employer, for cause, arising from a willful breach of duty or habitual neglect of duty by SHAW, by SHAW’s conviction or plea of guilty or nolo contendere of a crime involving moral turpitude, or for any conduct by SHAW which makes it impossible or impractical for him to perform his duties including permanent disability, or that seriously impedes Employer’s operations; or

D. By Employer, without cause, upon giving SHAW five (5) days written notice of termination. This is to say, SHAW’s employment may be terminated at the will of the Employer. In the case of such at-will termination by Employer (but not in the event of termination for cause), Employer agrees to pay SHAW a lump sum cash payment equal to six (6) months salary and benefits accrued to date of such at-will termination, including, without limitation, sick leave, vacation, and pro-rated compensatory benefits earned while employed with the City of Brentwood, but excluding administrative/executive leave under Section 4 (2). City’s health insurance coverage for SHAW shall be continued for a six (6) month period after termination or until SHAW finds other employment, whichever occurs first.

Section 4. Compensation and Benefits:

Compensation: CITY agrees to pay SHAW for his services rendered an annual salary of $116,750 payable in installments at the same time and manner as other employees of the CITY are paid. The salary shall be adjusted effective July 1, 2001, by the same percentage that is provided to other exempt management employees. 

2. Administrative/Executive Leave: SHAW shall be entitled to the lesser of up to eighty (80) hours of paid Administrative/Executive leave each fiscal year or the number of hours provided to the City’s other exempt management employees, if any. In the event that City policy for exempt management adjusts the amount of Administrative/Executive Leave, SHAW’s leave shall be adjusted as well. This leave shall not carry over from year to year if unused, nor shall any unused leave be paid to SHAW in the event of the termination of this Agreement.

3. Vacation Leave: SHAW shall accrue twenty-one (21) days (168 hours) of annual vacation leave each fiscal year. SHAW’s vacation leave shall cap at thirty one and one-half (31.5) days (252 hours), at which point he shall cease to accrue vacation until such time as his vacation accrual is less than thirty-one and one-half (31.5) days (252 hours). In the event that City policy increases the amount of vacation leave, SHAW’s annual vacation shall be adjusted upward as well. SHAW shall be entitled to any vacation buyback program to the same extent as other exempt management employees. 

4. Holidays: SHAW shall be entitled to Holidays to the same extent as other exempt management employees.

5. Sick Leave: SHAW shall be provided sick leave to the same extent as other exempt management employees.

6. Health / Dental / Life / LTD Insurance: SHAW shall be provided health / dental / life / LTD insurance packages to the same extent as other exempt management employees at the Department Head level. Benefit levels and eligibility for benefits are defined in the contracts between the providers and the CITY. With respect to health insurance after retirement, SHAW is eligible for health insurance as a retiree under the terms and conditions of the contract between the CITY and PERS.

7. Retirement: SHAW shall be eligible to participate, in the Public Employee’s Retirement System (PERS) for the 3% at age 50 formula and the Third Level 1959 survivor benefit. Effective September 16, 2000, SHAW pays 3% of the employee contribution and effective July 1, 2001, SHAW pays 2% of the employee contribution. The terms of the contract between the CITY and PERS shall govern the eligibility for and level of benefits, if any, to which SHAW is entitled. A summary plan description will be provided to SHAW upon the commencement of this Agreement.

8. Deferred Compensation: SHAW shall be allowed to participate in the CITY’s deferred compensation plan to the same extent as other exempt management employees.

9. Residency: SHAW shall reside in the City of Brentwood area within a distance acceptable to the City Council.
10. Other terms and conditions of Employment: Employer, in consultation with SHAW, shall fix any such other terms and conditions of employment, relating to the performance of SHAW provided such terms and conditions are not inconsistent with or in conflict with the provisions of this agreement, the Brentwood Municipal Code or any other law.

11. No reduction of benefits: City shall not at any time during the term of this agreement reduce the salary, compensation or other benefits of SHAW, except to the degree of such reduction for all management employees at the department head level.

12. General Provisions: 

A. This agreement shall be binding and inure to the benefits of the heirs at law and executors of SHAW.

B. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, or unenforceable, the remainder of this agreement or portion thereof, shall be deemed severable and shall not be affected and shall remain in full force in effect. 

C. All documents, reports, notes and computer data prepared by SHAW in the course and scope of his duties under this agreement shall be delivered to and become the property of the City.

D. SHAW shall not engage in any activity which is or is likely to become a conflict of interest or which may create an incompatibility of office as defined under California Law. SHAW shall complete annual disclosure forms required by law.

E. This agreement shall be interpreted as though prepared by both parties and constitutes the entire, integrated understanding of the parties. 


IN WITNESS WHEREOF, The City of Brentwood has caused this agreement to be signed and executed on its behalf by its Mayor, and duly attested by its City Clerk and SHAW has signed and executed this agreement.

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