HomeMy WebLinkAboutStaff Report 4628City of Palo Alto (ID # 4628)
City Council Staff Report
City of Palo Alto Page 1
Report Type: Consent Calendar Meeting Date: 4/7/2014
Summary Title: City Auditor Employment Agreement
Title: Appointment of City Auditor and Approval of Employment Agreement
From: City Manager
Lead Department: Human Resources
Recommended Motion
Move to appoint Ms. Harriet Richardson as City Auditor, with a start date of April 15,
2014, and approve the attached Employment Agreement including a salary of $167,500.
Recommendation and Discussion
After a national search and interviews of a number of finalists, the has Council selected
Harriet Richardson to serve as Palo Alto’s City Auditor. Ms. Richardson brings extensive
experience in government auditing, including with the City of Berkeley, Washington
State, Atlanta, Georgia, and the City and County of San Francisco, Attached is an at-will
Employment Agreement setting terms of employment, including a salary of $167,500.
Resource Impact
The FY 2014 Adjusted Budget for the City Auditor’s Office is sufficient to cover the costs
of this employment contract.
Environmental Review
City of Palo Alto Page 2
Appointment of the City Auditor and approval of the Employment Agreement will not
result in any environmental impact.
Attachment:
Employment Agreement Between City of Palo Alto and Harriet Richardson
Attachments:
PDF Employment Auditor-Richardson-3_27_14 v2 (PDF)
1
111108 sh 8261759
EMPLOYMENT AGREEMENT
BETWEEN CITY OF PALO ALTO
AND
HARRIET RICHARDSON
THIS AGREEMENT is between the City of Palo Alto, a municipal corporation
and chartered city (“City”) and Harriet Richardson (“Richardson”). It is effective on the latest
date next to the signatures on the last page.
This Agreement is entered into on the basis of the following facts:
A. City, acting by and through its City Council, wishes to employ Richardson
as its City Auditor, subject to the terms and conditions set forth in this Agreement, the Palo Alto
Municipal Code and the Charter of the City of Palo Alto (the “Charter”).
B. Under the Charter, the City Auditor is appointed by and serves at the
pleasure of the City Council. Notwithstanding any provision of the City of Palo Alto Merit
System Rules and Regulations, the City Auditor serves on an at-will basis, with no expectation
of continued employment, and with no right to pre-or post-separation due process or appeal.
C. Richardson desires to be employed by the City as its City Auditor, subject
to the terms and conditions in this Agreement, the Palo Alto Municipal Code, the Charter, the
Palo Alto Merit System Rules and Regulations as they are applicable to Council-appointed
officers, and all other applicable laws, resolutions, and policies.
D. The City and Richardson wish to establish specific terms and conditions
relating to compensation and benefits, performance evaluations, and related matters.
BASED UPON THE FOREGOING, THE CITY AND RICHARDSON AGREE
AS FOLLOWS:
1. Employment. The City appoints Richardson as its City Auditor for an
indefinite term to begin on __________, 2014. If Richardson does not actually report for or start
work on __________, 2014, the employment start date will be the date, if any, that is mutually
agreed by the parties.
2. Duties of the City Auditor. Richardson will perform the duties established
for the City Auditor by the Charter, the Palo Alto Municipal Code, direction given by the City
Council, and as otherwise provided by law, ordinance, or regulation. Richardson agrees to
comply with all federal, state and local laws, ordinances, rules and regulations applicable to or
associated with these duties.
2.1. Full Energy and Skill. Richardson will devote her full energy,
skill, ability, and productive time to the performance of her duties.
2
111116 sh 8261759
2.2. No Conflict. Richardson will not engage in any employment,
activity, consulting service, or other enterprise, for compensation or otherwise, which is actually
or potentially in conflict with or which interferes with the performance of her duties. Richardson
acknowledges that she is subject to the various conflict of interest requirements found in the
California Government Code and state and local policies and regulations.
2.3 Permission Required For Outside Activities. Richardson will not
engage in any employment, activity, consulting service, or other enterprise, for compensation or
not, without written permission of the City Council.
3. Compensation. While performing the duties of City Auditor, Richardson
will be compensated as provided in this Section 3.
3.1. Compensation. Richardson will receive an initial gross base
annual salary of One Hundred Sixty Seven Thousand Five Hundred Dollars ($167,500.00),
beginning on the Employment Start Date. This amount is subject to authorized or required
deductions and withholding, prorated and paid on City’s regular paydays. Richardson is an
exempt employee under applicable wage and hour law and her base salary shall be compensation
for all hours worked. The City agrees that the amount of Richardson’s base annual salary will
not decrease, except as part of a permanent decrease that is consistent with the Fair Labor
Standards Act and that is applicable to either all Council Appointed Officers or all City
Executive Staff (including Council Appointed Officers).
3.2. Salary Adjustments. Not less than once each year, the City
Council will meet with Richardson for the purpose of evaluating her performance. The City
Council will act in good faith in determining whether to increase the salary of Richardson, but
the ultimate decision in this regard is within the sole discretion of the City Council.
4. Benefits and Allowances. Richardson will be eligible for, and shall
receive, all regular benefits (i.e., health insurance, PERS contributions to the extent paid by the
City, etc.) and vacation, sick leave, and management leave, as are generally provided to
management employees under the City Council-approved Compensation Plan for Management
and Professional Personnel and Council Appointees, as it currently exists and may be changed
from time to time.
5. Additional Benefits and Allowances. In addition to the benefits specified
in section 4, Richardson will receive the following additional benefits and allowances:
5.1. Parking. The City will provide parking at the Civic Center at no
cost to Richardson.
5.2. Deferred Compensation. The City will pay a total of Five Hundred
Dollars ($500.00) per month into an Internal Revenue Code section 457 deferred compensation
plan or an Internal Revenue Code section 401(a) defined contribution plan established for
Richardson. Richardson will specify how the payment is to be divided between the two plans.
The City shall take all actions necessary to establish the section 401(a) plan with ICMA-
3
111116 sh 8261759
Retirement Corporation, or other mutually acceptable trustee, for the benefit of Richardson,
including any administrative or setup fees.
5.3. Vacation Accrual. Notwithstanding the Management and
Professional Personnel and Council Appointees Compensation Plan and based on service with
prior public agency employers, Richardson’s vacation accrual rate will be calculated at the rate
of one hundred and sixty (160) hours annually, prorated and credited each pay period. The
maximum vacation leave balance allowed for Richardson is four hundred and eighty (480)
hours.
5.5. Sick Leave Accrual. Richardson will accrue sick leave at a rate of
3.7 hours per bi-weekly pay period based on a forty-hour per designated workweek schedule.
Richardson may, if necessary, use up to forty-eight hours of sick leave at any time during the
first six months of employment. Use of sick leave shall be subject to the policies and procedures
set forth in the Merit System Rules and Regulations.
5.6. Relocation and Temporary Housing Expenses. The City will
provide Richardson with a total amount not to exceed five thousand dollars ($5,000) for
relocation and temporary housing expenses, paid on a reimbursement basis for actual costs
incurred. The City shall reimburse Richardson for relocation expenses actually incurred as
described in Section B (“Basic Package”) and C (“Optional Package”) of the City’s Relocation
Expense Policy (Policy & Procedure 2-08).
6. Additional Expenses of Employment. The City shall pay the cost of any
fidelity or other bonds required by law for the City Auditor.
7. Duration of Employment. Richardson understands and agrees that she has
no constitutionally protected property or other interest in her employment as City Auditor.
Richardson waives any and all rights, if any, under the Merit System Rules and Regulations,
including without limitation, the right to pre-or post-disciplinary due process. Richardson
understands and agrees that she works at the will and pleasure of the City Council and that she
may be terminated or asked to resign at any time, with or without cause. Richardson may
terminate this agreement (terminating all employment) upon 30 days written notice to the City
Council.
7.1. Severance Pay. If Richardson is asked to resign or is terminated as
City Auditor she shall receive a cash severance payment or payments (without interest) at
intervals specified by Richardson, equaling three (3) months salary and benefits at the date of
termination. The monthly non-salary benefits shall be those specified in sections 4 and 5. All
normal withholdings as required by law shall be made with respect to any amounts paid under
this section.
7.2 Non-Payment of Severance Under Certain Conditions. If the City
terminates Richardson for conduct that would otherwise constitute a felony, regardless of
whether Richardson is actually convicted on a felony charge, the City shall not owe and
Richardson shall not receive any severance pay.
4
111116 sh 8261759
8. Miscellaneous.
8.1. Notices. Notices given under this Agreement shall be in writing
and shall be either: a) served personally; or b) sent by facsimile (provided a hard copy is mailed
within one (1) business day); or c) delivered by first-class United States mail, certified, with
postage prepaid and a return receipt requested; or d) sent by Federal Express, or some equivalent
private mail delivery service. Notices shall be deemed received at the earlier of actual receipt or
three (3) days following deposit in the United States mail, postage prepaid. Notices shall be
directed to the addresses shown below, provided that a party may change such party’s address for
notice by giving written notice to the other party in accordance with this subsection.
CITY: Attn: Mayor
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
Phone: (650) 329-2226
Fax: (650) 328-3631
RICHARDSON: Harriet Richardson
250 Hamilton Avenue
Palo Alto, CA 94301
8.2. Entire Agreement/Amendment. This Agreement constitutes the
entire understanding and agreement between the parties as to those matters contained in it, and
supersedes any and all prior or contemporaneous agreements, representations and understandings
of the parties. This Agreement may be amended at any time by mutual agreement of the parties,
but any such amendment must be in writing, dated, and signed by the parties and attached hereto.
8.3. Applicable Law and Venue. This Agreement shall be interpreted
according to the laws of the State of California. Venue of any action regarding this Agreement
shall be in the proper court in Santa Clara County.
8.4. Severability. In the event any portion of this Agreement is
declared void, such portion shall be severed from this Agreement and the remaining provisions
shall remain in effect, unless the result of such severance would be to substantially alter this
Agreement or the obligations of the parties, in which case this Agreement shall be immediately
terminated.
8.5. Waiver. Any failure of a party to insist upon strict compliance
with any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of
such term, undertaking, or condition. To be effective, a waiver must be in writing, signed and
dated by the parties.
8.6. Representation by Counsel. Richardson and the City acknowledge
that they each did, or had the opportunity to, consult with legal counsel of their respective
choices with respect to the matters that are the subject of this Agreement prior to executing it.
5
111116 sh 8261759
8.7. Section Headings. The headings on each of the sections and
subsections of this Agreement are for the convenience of the parties only and do not limit or
expand the contents of any such section or subsection.
Dated: _______________ CITY OF PALO ALTO
By
Nancy Shepherd, Mayor
Dated: _______________ RICHARDSON
Harriet Richardson
ATTEST:
City Clerk
APPROVED AS TO FORM:
By:
City Attorney