CONTRACT 40874087
EMPLOYMENT AGREEMENT
This Employment Agreement ( "Agreement ") is effective as of September 7, 2010
between the City of El Segundo ( "City ") and Jack Wayt ( "Wayt ").
RECITALS
Whereas Wayt has informed the City that he will be filing the necessary
documents to commence receiving retirement benefits from the California Public
Employees Retirement System ( "PERS ") as of September 30, 2010, and concurrently
therewith terminate his current employment agreement with the City; and,
Whereas the City desires to have Wayt continue to provide contractual services as
the City Manager for the City for the period of October 1, 2010 through March 31, 2011
pursuant to the terms of this Agreement, based upon the experience that Wayt has in City
government, and particularly with the City, as the City believes such skills are of
significant value to the City for the term of this Agreement; and,
Whereas Wayt desires to continue functioning as City Manager for the City on a
contractual basis.
Now Therefore, the City and Wayt do hereby covenant, agree and warrant as
follows:
Section 1. Term of Agreement. That certain Employment Agreement dated
August 19, 2008, and amended on July 21, 2009, is terminated effective September 30,
2010. Wayt shall be considered an at -will employee during the term of this Agreement.
The term of Wayt's employment with the City pursuant to this Agreement shall be from
October 1, 2010 through March 31, 2011 unless it is terminated prior to March 31, 2011
by the City Manager or City Council. The City Council may by written notice to Wayt,
immediately terminate this Agreement and thereby Wayt's contractual employee status
with the City at any time, with or without cause. If the Council terminates this contract
for other than "with cause," then the City shall be obligated to pay Wayt a lump sum
amount upon such termination equal to the hourly rate specified in Section 3 below
multiplied by the number of hours represented by subtracting the hours Wayt has been
compensated for under this Agreement prior to his termination date from 960 hours.
Wayt may terminate this Agreement at anytime by delivering notice of his intent to resign
to the Mayor or City Attorney. Wayt's resignation shall be deemed accepted upon its
delivery and he shall be entitled to compensation only to the extent he has actually
worked hours pursuant to this Agreement but has not yet been compensated for such
hours. For purposes of this Agreement, the term "with cause" shall include (i) Wayt's
willful misconduct, including without limitation, intentionally failing to fulfill Wayt's
duties set forth in Section 2 of this Agreement; or (ii) conviction of Wayt of a crime
involving moral turpitude.
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Section 2. Duties and Authority. Wayt shall, and have the authority to, discharge
those duties and responsibilities set forth in the City's job description for the City
Manager, the El Segundo Municipal Code, and other applicable federal, state, and local
laws and regulations; and, fulfill such other duties and responsibilities that are assigned to
him from time to time by the City Council.
Section 3 Hours and Compensation. During his employment, Wayt shall devote
such, time, interest and effort to the performance of this Agreement as is necessary to
duly carry out his duties as City Manager. It is expected that Wayt shall devote an
average of 36 hours per week to the performance of his duties. In no event, shall Wayt
work or be compensated for more than 960 hours during the period of October 1, 2010
through March 31, 2011. Wayt shall be paid at the rate of one hundred twelve dollars
and fifty cent ($112.50) per hour, payable in bi- weekly payments (at the same time that
City employees are regularly paid) which shall be subject to all applicable federal, state
and local payroll withholdings and deductions. Wayt shall record all of his hours on a
daily basis and transmit such records to the Finance Department on a weekly basis.
Wayt's attendance at conferences and seminars that are normal and customary for city
managers, shall be deemed working hours for purposes of this Agreement.
Section 4. Benefits. Wayt shall not receive any benefits, including but not
limited to medical, dental, sick leave, vacation time, etc., that are generally available to
other City employees. However, Wayt shall be entitled to take up to 100 hours of time
off, with compensation, for the period of October 1, 2010 through March 31, 2011, as
personal time to be utilized for whatever reason he chooses and submit such hours for
payment as part of the 960 hours that he may compensated for during each such six
month period.
Section 6. Expense Reimbursement. During the term of this Agreement, City
shall reimburse Wayt for reasonable business expenses, including travel, parking,
business meetings and professional dues associated with maintaining membership in
professional organizations pursuant to the applicable provisions of El Segundo Municipal
Code and City administrative policies.
Section 7. Indemnification by City. In accordance with the California
Government Code, the City shall defend, hold harmless and indemnify Wayt against any
claim or legal action arising out of any alleged act or omission occurring within the scope
of Wayt's employment as City Manager, except any action that may be brought by PERS
as set forth in Section 8.
Section 8. PERS Benefits. At the time this Agreement is entered into,
Government Code Section 21224 allows a PERS retiree to perform contractual employee
services under certain circumstances for up to a total of 960 hours in any calendar year
for all PERS contracting employers without being reinstated from retirement, and without
loss or interruption of PERS retirement benefits. However, it is agreed and
acknowledged by the parties that in making this Agreement available to Wayt, neither the
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City nor any of its elected or appointed officials, officers, employees or agents assures,
represents, or guarantees that performance of the contracted -for services is in accordance
with these certain circumstances and will have no impact upon Wayt's PERS' retirement
benefits. If a controversy arises between Wayt and PERS regarding the impact of this
Agreement and the services provided for herein upon the nature of PERS retirement
benefits, the City shall have no obligation to intervene in or defend or prosecute such
dispute notwithstanding the indemnification set forth in Section 7 of this Agreement.
Accordingly, it is recommended by the City that prior to entering into this Agreement,
Wayt first bring it to the attention of PERS and that Wayt 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 PERS' retirement benefits. Additionally, it is
recommended that Wayt consult with his own legal counsel regarding the terms and
conditions of this Agreement, including this Section 8 of this Agreement. Wayt 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
PERS may impose against Wayt arising from or relating to this Agreement. This
provision shall survive the termination of this Agreement.
Section 9. Governing Law and Venue. This Agreement shall be construed in
accordance with the laws of the State of California and the Los Angeles County Superior
Court shall be the venue for legal disputes arising out of or relating to this Agreement.
Section 10. Joint Drafting. This Agreement shall be interpreted as though it was
prepared by both the City and Wayt.
Section 11. Entire Agreement. This Agreement reflects the entire understanding
of the City and Wayt with regard to Wayt's contractual employment with the City and
supersedes all prior written and oral understanding and agreements with respect thereto.
This Agreement can only be amended in a writing signed by the City and Wayt.
Section 12. Severability. Should any provision of this Agreement be deemed by
a court of competent jurisdiction to be invalid or unenforceable such shall not effect the
validity or enforceability of any other provision of this Agreement.
IN WITNESS WHEREOF the parties hereto have executed this Agreement the
day and year first hereinabove written.
CITY OF EL SEGUNO
Eric Busch,Mayor
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ATTEST:
Cindy Mort n, City Clerk
APPROVED AS TO FORM:
Mark D. Hensley, City Attorney