CONTRACT 6650 - PERM Other CLOSEDAgreement No. 6650
CITY OF EL SEGUNDO
EMPLOYMENT AGREEMENT FOR INTERIM CHIEF FINANCIAL OFFICER
SERVICES
THIS EMPLOYMENT AGREEMENT FOR INTERIM CHIEF FINANCIAL OFFER
SERVICES ("Agreement") is made and entered into as of this 2nd day of May, 2023 by and
between the City of El Segundo ("City") and David Cain ("Employee").
RECITALS
A. Pursuant to Government Code sections 7522.56(c) and 21221(h), City desires to
employ Employee, a California Public Employees' Retirement System (Ca1PERS)
retiree, on an interim basis in the position of Interim Chief Financial Officer for
the City of El Segundo while the City actively recruits a permanent Chief
Financial Officer.
B. Pursuant to Government Code sections 7522.56(c) and 21221(h), the City Council
finds that the position of Interim Chief Financial Officer requires specialized
skills and experience to plan, direct, manage, and oversee the functions, programs,
and operations of the Finance Department and that Employee possesses the skills
needed to perform the functions and duties of Interim Chief Financial Officer.
C. Employee desires to accept appointment to the position of Interim Chief Financial
Officer under the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants
contained herein, the parties agree as follows:
1. Duties. City hereby employs Employee as Interim Chief Financial Officer for the
City of El Segundo to perform the functions and duties of the Chief Financial Officer, as
specified by the City's Municipal Code and the Government Code, and to perform such other
legally permissible and proper duties and functions as the City Council may from time to time
assign or as may be necessary and desirable in the opinion of Employee for the efficient
management of the Finance Department. As part of his duties, Employee shall assist with the
recruitment of a permanent Chief Financial Officer.
2. Work. Schedule. During his employment, Employee shall devote such time,
interest and effort to the performance of this Agreement as is necessary to carry out his duties as
Chief Financial Officer. Employee shall be available during normal City business hours and
shall be available for attendance at City Council and other meetings during non -business hours as
may be necessary. Employee acknowledges that his duties will often require performance of
services outside of normal business hours. In no event shall Employee be compensated for more
than 960 hours during the term of this Agreement, including any extension hereof.
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3. Work Restrictions/CalPERS. At the time this Agreement is entered into,
Government Code Section 21224 allows a CalPERS retiree to perform contractual employee
services under certain circumstances for up to a total of 960 hours in any fiscal year for all
CalPERS contracting employers without being reinstated from retirement, and without loss or
interruption of CalPERS retirement benefits. It is the Employee's responsibility to ensure that
services performed under this Agreement are in compliance with the Employee's Ca1PERS
obligations. If a controversy arises between Employee and CalPERS regarding the impact of this
Agreement and the services provided for herein upon the nature of CalPERS retirement benefits,
the City shall have no obligation to intervene in or defend or prosecute such dispute.
Accordingly, it is recommended by the City that, prior to entering into this Agreement,
Employee first bring it to the attention of CalPERS and that Employee thereby personally
determine what, if any, impact this Agreement and the performance of the services set forth
herein will or may have upon the employee's CalPERS retirement benefits. Additionally, it is
recommended that Employee consult with his own legal counsel regarding the terms and
conditions of this Agreement. Employee hereby releases and holds harmless the City and its
officials, officers, employees and agents from and against any and all actions (including
imposition of costs, fines and penalties) that Ca1PERS may impose against Employee arising
from or relating to this Agreement. This provision shall survive the expiration or earlier
termination of this Agreement.
4. Term. Subject to earlier termination as provided for in this Agreement, Employee
shall be employed for a term beginning May 16, 2023, and ending on November 15, 2023, or
when a permanent Chief Financial Officer assumes office.
5. Compensation. For services rendered pursuant to this Agreement, City agrees to
pay Employee compensation of $103.37 per hour, which amount is in conformance with the
requirements of Government Code section 7522.56(d). This hourly rate does not exceed the
maximum monthly base salary paid to other employees performing comparable duties as listed
on a publicly available pay schedule for the Chief Financial Officer position, divided by 173.333.
Employee shall not receive any benefits, incentives, compensation in lieu of benefits, or any
other forms of compensation in addition to the hourly rate set forth herein. Employee will be
compensated in bi-weekly payments (at the same time that City employees are regularly paid)
and Employee's hourly wages paid pursuant to this Agreement are subject to all applicable
withholdings and deductions in accordance with applicable law. Employee shall record all of his
hours on a daily basis and transmit such records to the Finance Department on a weekly basis.
Employee's attendance at conferences and seminars that are normal and customary for Chief
Financial Officers shall be deemed working hours for purposes of this Agreement.
6. Benefits. Employee hereby waives all benefits provided to City employees,
including retirement contribution, health/medical insurance, dental insurance, life and disability
insurance, sick leave, vacation, unemployment insurance and similar benefits. Notwithstanding
the foregoing, Employee shall be entitled to observe all City holidays in the same manner as
employees of the City. Employee recognizes that Government Code section 21221(h) provides
that a retired person appointed to a vacant position pursuant to that subdivision may not receive
any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in
addition to the hourly rate.
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7. Termination. The City may terminate this Agreement at any time with or without
cause. Employee may terminate this Agreement at any time with or without cause provided,
however, he shall provide the City Council with at least two weeks' advance written notice prior
to the effective date of termination, if practicable, unless a shorter period is acceptable to the City
Council. Employee agrees that he shall not be entitled to any severance pay as the result of the
termination of this Agreement for any reason whatsoever.
8. At -will Em lg ment/FL A Exean t. Employee shall serve at the will and
pleasure of the City Council and understands he is an "at -will" employee subject to summary
dismissal without any right of notice or hearing, including any so-called "Skelly" hearing.
Employee will not acquire any property interest in the position of Interim Chief Financial Officer
and is employed solely on a temporary basis to perform specialized services in accordance with
Government Code sections 7522.56(c) and 21221(h). Employee further understands and agrees
that his position is that of an exempt employee for purposes of the Fair Labor Standards Act.
9. Certification Regarding Prior Unemployment Benefits. In accordance with
Government Code section 7522.56(e)(1), Employee certifies and warrants to City that he has not
received any unemployment insurance payments for retired annuitant work for any public
employer within the twelve months prior to his appointment date under this Agreement.
10. Reimbursable Expenses. During the term of this Agreement, City shall
reimburse for reasonable business expenses, including travel (but not to and from the worksite),
parking and professional dues associated with maintaining membership in professional
organizations pursuant to the applicable provisions of the El Segundo Municipal Code and City
administrative policies. Reimbursement requests must be supported by written documentation in
accordance with established policies and customary practices of the City.
11. Conflicts Prohibited. During the term of this Agreement, Employee shall not
engage in any business or transaction or maintain any financial interest which conflicts, or
reasonably might be expected to conflict, with the proper discharge of Employee's duties under
this Agreement. Employee shall comply with all requirements of law, including but not limited
to the Political Reform Act (Gov't Code § 87100, et seq.), Government Code sections 1090 and
1126, and all other similar statutory or administrative rules. Employee represents and warrants
that he has no financial, contractual or other interest or obligation that conflicts with or is
harmful to the performance of his obligations under this Agreement.
12. Indemnification. For the purposes of indemnification and defense of legal
actions, Employee shall be considered an employee of the City and shall be entitled to the same
rights, and subject to the same obligations and limitations, as other employees of the City as set
forth in the Government Code. Accordingly, City shall defend, hold harmless, and indemnify
Employee against any tort, professional liability, claim or demand, or other legal action arising
out of an act or omission occurring within the course and scope of Employee's services under
this Agreement. Notwithstanding the foregoing, this indemnification obligation shall not apply
to any intentional tort or crime committed by Employee to any action outside the course and
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scope of services provided by Employee under this Agreement, or any other intentional or
malicious conduct or gross negligence of Employee.
13. Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be personally served or sent by U.S. Mail, first class postage prepaid, to the following
address:
To City: City of El Segundo
350 Main Street
El Segundo, CA 90245
Attn: City Attorney
To David Cain: 219 N. Thistle Road
Brea, CA 92821
Notices shall be deemed given as of the date of personal service or upon the date of
deposit in the United States Mail.
14. Entire Agreement. This Agreement supersedes any and all prior understandings
or agreements, written or oral, between the parties, and contains all of the covenants and
agreements between the parties regarding the subject matter herein. Each party acknowledges
that no promises, representations, inducements or agreements, oral or otherwise, have been made
by any party, or anyone acting on behalf of any party, that are not set forth herein. No
modification to this Agreement shall be effective unless reduced to writing and signed by both
parties.
15. Severabdlity. In the event any provision of this Agreement is held to be
unconstitutional, invalid 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 an effect.
16. Waiver. No waiver of any provision of this Agreement shall be effective unless
in writing and signed by a duly authorized representative of the party against whom enforcement
of a waiver is sought. No waiver of any right or remedy in respect of any occurrence or event
shall be deemed a waiver of any right or remedy in respect of any other occurrence or event.
17. Governing Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the State of California. The exclusive venue for all disputes
arising from or related to this Agreement shall be the Superior Court for the County of Los
Angeles.
18. Interpretation. Each party and its counsel have participated fully in the review
and revision of this Agreement. Any rule of construction to the effect that ambiguities are to be
resolved against the drafting party shall not apply in interpreting this Agreement. The language
in this Agreement shall be interpreted as to its fair meaning and not strictly for or against any
party.
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19. lnde endent Le al advice. City and Employee represent and warrant to each
other that each has read and fully understands the terms and provisions hereof, has had an
opportunity to review this Agreement with legal counsel, and has executed this Agreement based
upon such parry's own judgment and advice of independent legal counsel.
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year
first hereinabove written.
CITY OF EL SEGUNDO
Darrell George, City Manager
ATTEST:
d holy �, mia
IIracy Weav City Clerk
APPROVED AS TO FORM:
Joaquin Vazquez for:
Ma k Hensley, City Attorney
DAVID CAIN
David Cain
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