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12-129 Employment Contract for City Manager David Brandt SECOND AMENDED EMPLOYMENT CONTRACT FOR CITY MANAGER This Amended Employment Contract is made and entered into this 21't day of October, 2014, by and between the CITY OF CUPERTINO, STATE OF CALIFORNIA,A Municipal Corporation, by and through its City Council (EMPLOYER), and David Brandt (EMPLOYEE). RECITALS: A. EMPLOYER is a Municipal Corporation of the State of California. B. The City Council of the City of Cupertino, in accordance with the provisions of its Mun.icipal Code, desires to employ the services of EMPLOYEE as City Manager. C. EMPLOYEE desires to accept employment as Cupertino City Manager. D. It is the desire of both EMPLOYER and EMPLOYEE to set forth the terms and conditions of said employment. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: ARTICLE 1: TERM OF EMPLOYMENT Section 1.01. Term of the Contract: This Contract originally began on September 10, 2012, and will automatically expire on September 9, 2016 unless extended in writing by the parties. On or within 30 days of September 9, 2015, EMPLOYEE shall notify EMPLOYER of the expiration date of September 9, 2016. In the event that EMPLOYER does not intend to extend this Contract beyond expiration, it shall notify EMPLOYEE in writing of its intent not to extend prior to the effective date of expiration. Failure of EMPLOYER to provide such notice shall not affect the expiration date of September 9,2016. Section 1.02. Termination Prior to Expiration. Notwithstanding any provision contained in this Contract to the contrary, EMPLOYEE understands and agrees that he serves at the pleasure of EMPLOYER and may be terminated prior to expiration of this Contract at the will of the EMPLOYER, subject only to the severance provisions set forth in Article V of this Contract, and the ordinance provisions as set forth in Section 2.28.090 of Page 1 i Revised 10.21.14 the Cupertino Municipal Code. In like manner, nothing in this Contract shall prevent, limit, or otherwise interfere with the right of EMPLOYEE to resign at any time from the position of City Manager subject only to the notice provisions set forth in Article V of.this Contract and the ordinance provisions as set forth in Section 2.28.090 of the Cupertino Municipal Code. EMPLOYEE further acknowledges that EMPLOYER has made no limited expressed, or written assurances of continued employment with the City of Cupertino other than as specifically set forth in this Contract. ARTICLE II: DUTIES AND OBLIGATIONS OF EMPLOYEE Section 2.01. Duties. EMPLOYER hereby agrees to employ EMPLOYEE as City Manager of the City of Cupertino to perform the functions and duties as specified in the Municipal Code, California Constitution, and California Statutes, and to perform such other legally permissible and proper duties and functions as EMPLOYER shall from time to time assign to EMPLOYEE which are reasonably related to the position of City Manager, including but not limited to: A. To see that all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses and privileges granted by the City are faithfully performed and observed; B. To control, order and give directions to all directors of departments and to subordinate officers and employees of the City under his jurisdiction through their department directors, and to transfer employees from one department to another; C. The services and facilities of the City Treasurer and the City Attorney shall be made available to the City Manager to the same extent and in the same manner that the services are available to the City Council; D. To appoint, discipline and dismiss any and all officers and employees of the City except those elected by the electors of the City or whose appointment or dismissal is denied to the City Manager under the laws of the state. Page 2 J Revised 10.21.14 The power to appoint given in the preceding paragraph does not include the power to create a new position except as provided under Chapter 2.52; E. To attend all meetings of the City Council unless excused therefrom by the City Council; F. 'To recommend to the City Council for adoption such measures and ordinances as he deems necessary or expedient; G. To keep the City Council at all times fully advised as to the financial conditions and needs of the City, H. To prepare and submit to the City Council the annual budget and to administer it after adoption; I. To purchase or cause-to be purchased all supplies for all of the departments or divisions of the City. No expenditures shall be submitted or recommended to the City Council except on-report and approval of the City Manager; J. To make investigation into the affairs of the City and any department or division thereof and any Contract or the proper performance of any obligation running to the City; K. To investigate all complaints in relation to matters consuming the administration of the government of the City and in regard to the services maintained by public utilities in the City and to see that all franchises, permits and privileges granted by the City are.faithfully observed; L. To execute general supervision over all public buildings, public parks, streets and other public property which are under the control and jurisdiction of the City Council; M. To devote his entire working time, thought and energy to the duties and interests of the City; N. To receive and open all official mail and communications addressed either to the Mayor or to the City Council; O. To make reports and initiate recommendations as may be desirable or as requested by the City Council; Page 3 Revised 10.21.14 P. To perform such other duties and exercise such other powers as may be delegated to him from time to time by ordinance, resolution or other action of the City Council. Section 2.02. Devotion to Duties. EMPLOYEE agrees to devote productive time, ability, and attention to the business of EMPLOYER during the term of this Employment Contract. This Contract shall not be interpreted nor intended to prohibit EMPLOYEE from making passive personal investments, conducting private business affairs or providing volunteer services if those activities do not interfere with the services required under this Contract. Section 2.03. Performance Evaluation Procedures. The City Council shall review and evaluate the performance of the EMPLOYEE at least annually, or on any schedule deemed appropriate by the City Council. Said review and evaluation shall be in accordance with specific criteria developed by EMPLOYER after consultation with EMPLOYEE. ARTICLE III COMPENSATION Section 3.01. Compensation. EMPLOYER agrees to pay to EMPLOYE for services rendered by him pursuant to this Contract a monthly,base salary of$20,000, payable in installments at-the time as other employees of EMPLOYER are paid. EMPLOYEE'S monthly base salary shall be adjusted by any percentage increase given to Department Heads of EMPLOYER generally and shall not be decreased "unless in a percentage consistent with a decrease applicable to Department Heads-of EMPLOYER generally. Notwithstanding the above, EMPLOYER and EMPLOYEE agree that there shall be no further salary adjustments or bonuses for 2014. At the time of EMPLOYEE's periodic evaluations, EMPLOYER may consider an additional compensation package increase including, but not limited to, merit pay or an additional increase in salary or benefits. Section 3.02. Deferred Compensation. City shall provide to EMPLOYEE the same deferred compensation plan that may be provided to other Department Heads and Confidential Employees,if any. Page 4 Revised 10.21.14 ARTICLE IV EMPLOYEE BENEFITS Section 4.01. Automobile Allowance. During the term of this Employment contract, EMPLOYEE,to the extent necessary to perform his duties shall use his own personal vehicle. EMPLOYER, in consideration thereof,shall pay EMPLOYEE the sum of$350 per month as an automobile allowance. EMPLOYEEshall be responsible for the paymentof all operating expenses of the vehicle, including,but not limited to,gasoline,oil,service and repair,and if necessary,the replacement of his automobile. EMPLOYEE shall procure and maintain,at his expense, a comprehensive automobile liability policy on the vehicle being used by him, in an amount that is acceptable to the EMPLOYER. During the course of this Employment Contract, EMPLOYEE shall provide EMPLOYER with written documentation that said insurance policy is in full force and effect. Section 4.02. Vacation and Sick Leave. EMPLOYEE shall be credited with 10 days of vacation and 5 days of sick leave as of the commencement of employment. Annual vacation and sick leave shall be accrued and administered in the same manner as vacation and sick leave is administered for Department Head employees of EMPLOYER. Section 4.03. Benefits. EMPLOYEE shall be entitled to receive benefits provided by EMPLOYER at a level no less than that provided to other Department Heads of the City,which presently consist of retirement benefits;family health coverage,life insurance,disability insurance,Cupertino sports club membership,administrative leave,floating holidays and holidays. The benefits so provided are subject to modification during the course of this Contract at the sole and absolute discretion of EMPLOYER at such times and to such extent as EMPLOYER may deem appropriate provided, however, there shall be no reduction in benefits unless EMPLOYER implements the same reduction of benefits to all other Department Heads of the City. Section 4.04. Professional Dues and Subscriptions. EMPLOYER agrees to pay for professional dues and subscriptions of EMPLOYEE directly related to his duties as City Manager, provided the City Council has made provisions for such costs in the annual budget. I Section 4.05. Expenses. EMPLOYEE shall be entitled to reimbursement for all reasonable expenses necessarily incurred by him in the performance of his duties upon Page 5 Revised 10.21.14 presentation of vouchers indicating the amount and purpose thereof, and further provided that such expenses are in accordance with policies established from time to time by EMPLOYER and consistent with budget allocations adopted by EMPLOYER for that purpose during the term of this Employment Contract. Section 4.06. Moving and Relocation Expenses. EMPLOYER will pay EMPLOYEE the amount of$20,000 intended to be used for relocation, housing and house hunting expenses in EMPLOYEE's discretion. Section 4.07. Professional Development. EMPLOYER hereby agrees to pay travel.and subsistence expenses of EMPLOYEE for professional and office travel, meetings, and occasions adequate to continue the professional development of EMPLOYEE and to adequately pursue necessary official functions for EMPLOYER, including but not limited lo, city manager associations and other such national, regional, state; local government groups and committees thereof which EMPLOYEE serves as a member, provided the City Council has made provisions for such costs in the annual budget. EMPLOYER also agrees to pay tuition,travel,and subsistence expenses of EMPLOYEE for courses,institutes, and seminars that are necessary for his professional development and of the good of the City provided the City Council has provided for same in the annual budget. Section 4.08. Housing Assistance: .EMPLOYEE may elect to receive Housing Assistance for Department Heads consistent with the EMPLOYER's Housing Assistance Policy in effect on the date of commencement of employment. ARTICLE V TERMINATION AND NOTICE Section 5.01. Termination of Employment and Severance: A.Subject to the provisions of Section 2.28 of EMPLOYER'S municipal Code, EMPLOYEE serves at the pleasure of EMPLOYER and nothing herein shall be taken to prevent, limit or otherwise interfere with the right of EMPLOYERto terminate the services of EMPLOYEE with or without cause; provided, however, EMPLOYER shall take no action to terminate the services of EMPLOYEE,without cause,within ninety(90) days after an election at which one or more new Page 6 Revised 10.21.14 members are elected to the City Council. There is no express or implied promise made to EMPLOYEE for any form of continued employment. This Contract and the EMPLOYER's municipal Code chapter 2.28 are the sole and exclusive bases for an employment relationship between EMPLOYEE and EMPLOYER. B. If.the EMPLOYEE is terminated by the EMPLOYER prior to expiration of this Contract,while still willing and able to perform the duties of the City Manager, EMPLOYER agrees to pay EMPLOYEE a single lump sum payment made on the effective date of termination, in an amount equivalent to six months aggregate salary and aggregate medical insurance benefit allowance if there are six or more months prior to the expiration date of this contract. If there are less than six months remaining the term of the contract,then the single lump sum payment made on the effective day of termination shall be in an amount equal to the monthly aggregate salary and aggregate medical benefit of the EMPLOYEE multiplied by the numbers of months left on the unexpired term of the Contract. If this Contract is not renewed,then EMPLOYER shall either provide EMPLOYEE with six months prior notice of nonrenewal or shall pay EMPLOYEE a single lump sum payment made on the effective date of termination in an amount equivalent to the difference between six months aggregate M salary and medical insurance benefit allowance computed for the number of months of notice actually given. Any such payment will release EMPLOYER from any further obligations under this Contract. Contemporaneously with the delivery of the severance pay herein above set out, EMPLOYEE agrees to execute and deliver to EMPLOYER a release releasing EMPLOYER of all claims that EMPLOYEE may have against EMPLOYER. C. Notwithstanding paragraph (b) above, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or.continue any benefits under the provisions of paragraph (b), if EMPLOYEE is terminated because of a crime of moral turpitude or a violation of statute or law constituting misconduct in office. Further, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under paragraph (b), in the event EMPLOYEE voluntarily resigns or retires without affirmative action by EMPLOYER to terminate, initiate termination proceedings or request resignation. Page 7 Revised 10.21.14 D. Any payment to the EMPLOYEE pursuant to this subsection 5.01 shall be fully reimbursed to the EMPLOYER if the EMPLOYEE is convicted of a crime involving an abuse of his office or position. ARTICLE VI MISCELLANEOUS Section 6.01. Form of Notices. Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service,first class postage prepaid, addressed as follows; A. The City: Mayor and City Council City of Cupertino 10300 Torre Avenue Cupertino,CA 95014 B. EMPLOYEE: David Brandt Address to be inserted at time of relocation: Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date three days after deposit of such written notice, postage prepaid,with the United States Postal Service. Section 6.02. Bonding. EMPLOYER shall bear the full cost of any fidelity or other bonds required of EMPLOYEE under any law or ordinance. Section 6.03. Indemnification. EMPLOYERshall 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.If EMPLOYER compromises or settles any such claim or suit EMPLOYER shall p ay the amount of any settlement, or if the claim results in a judgment against EMPLOYEE, EMPLOYER shall pay any such judgment. This indemnification does not apply to any act, action or omission arising out of the gross Page 8 Revised 10.21.14 negligence,willful misconduct on the part of EMPLOYEE, or acts EMPLOYEE outside the scope of his duties. Section 6.04. General Provisions. A. The text herein shall constitute the entire Contract between the parties. B. This Contract shall be binding upon and insure to the benefit of the heirs at law and executors of EMPLOYEE. C. This Contract may only be modified upon the written consent of the EMPLOYER and EMPLOYEE. D. In any action to enforce the terms of this Contract the prevailing party shall be entitled to recover reasonable attorney's fees and court costs and other non-reimbursable litigation expenses, such as expert witness fees and investigation expenses. Section 6.05. Severability. If any provision thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract shall be deemed severable, shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF, EMPLOYER has caused this Contract to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Contract, both in duplicate, the day and year first above written. ATTEST: CITY OF CUPRTINO &4 a. 0 � � 1 ZA , City Clerk Mayor APPROVED AS TO FORM: i Timothy Davis, Partner MPLOYEE Burke, Williams &Sorensen, LLP Page 9 Revised 10.21.14 F. AMENDED EMPLOYMENT CONTRACT FOR CITY MANAGER This Amended Ern plo ment Contract is made and entered into this t� day of August, 2013, by and between the CITY OF CUPERTINO, STATE OF CALIFORNIA, A Municipal Corporation, by and through its City Council (EMPLOYER), and David Brandt (EMPLOYEE). RECITALS: A. EMPLOYER i a Municipal ipal Corporation of the State of California. B. The City Council of the City of Cupertino, in accordance with the provisions of its Municipal Code, desires to employ y the services of EMPLOYEE as City Manager, C. EMPLOYEE desires to accept employment ent as Cupertino City Manager. D. It is the desire of both EMPLOYER and EMPLOYEE to set forth the terms and conditions of said employment. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: ARTICLE 1: TERM of EMPLOYMENT Section 1.01. Tern of the Contract: This Contract originally began on September 10, 2012, and will automatically expire on September 9, 2016 unless extended in writing by the parties. On or within 30 days of September, 9, 2015, EMPLOYEE shalt notify EMPLOYER of.the expiration date of September 9., 2016. in the evert that EMPLOYER does not intend to extend this Contract beyond expiration, it skull notify EMPLOYEE in writing of its intent not to extend prior to the effective date of expiration. Failure of EMPLOYER to provide such notice shall not affect the expiration date of September 9, 2016. Section 1.02. Termination Prior to Expiration. Notwithstanding any provision contained in this Contract to the contrary, EMPLOYEE understands and agrees that he serves at the pleasure of EMPLOYER and may be terminated prior to expiration of this Contract at the will of the EMPLOYER, subject only to the severance provisions set forth in Article V of this Contract, and the ordinance provisions as set forth in Section 2.28.090 of Reprised 9.5. 13 Page I the Cupertino Municipal Code. In life manner, nothing in this Contract shall prevent, limit, or otherwise interfere with the right of EMPLOYEE to resign at any time from the position of City Manager subject only to the notice provisions set forth in Article V of this Contract and the ordinance provisions as set forth in Section 2.28.090 of the Cupertino Municipal Code. EMPLOYEE further acknowledges that EMPLOYER has made no limited expressed, or written assurances of continued employment with the City of Cupertino other than as specifically set forth in this Contract. ARTICLE 1I: DIRTIES AND OBLIGATIONS of EMPLOYEE Section 2.01. Duties. EMPLOYER hereby agrees to employ EMPLOYEE as City Manager of the City of Cupertino to perform the functions and duties as specified in the Municipal Code, California Constitution, and California Statutes, and to perform such ether legally permissible and proper duties and functions as EMPLOYER shall from time to time assign to EMPLOYEE which are reasonably related to the position of City Manager, including but not limited to: A. To see that all laws and ordinances of the City are duly enforced and that all franchises, permits, licenses and privileges granted by the City are faithfully performed and observed; B. To control, order and give directions to all directors of departments and to subordinate officers and employees of the City under his jurisdiction through their department directors, and to transfer employees from one department to another; C. The services and facilities of the City Treasurer and the City Attorney shall be made available to the City Manager to the sane extent and in the same manner that the services are available to the City Council; D. To appoint, discipline and dismiss any and all officers and employees of the City except those elected by the electors of the City or whose appointment or dismissal is Page Revised 9.5.13 denied to the City Tanager under the lavers of the state. The power to appoint given in the preceding paragraph does not include the power to create a new position except as provided under Chapter ; E. To attend all meetings of the City Council unless excused there from by the City Council; F. To recommend to the City Council for adoption such measures and ordinances as he deems necessary or expedient; G. To keep the City Council at all times fully advised as to the financial conditions and needs of the City; H. To prepare and submit to the City Council the annual budget and to administer it after adoption; I. To purchase or cause to be purchased all supplies for all of the departments or divisions of the City. No expenditures shall be submitted or recommended to the City Council except on report and approval of the City Manager; J. To make investigation into the affairs of the City and any department or division thereof and any Contract or the proper performance of any obligation running to the City; K. To investigate all complaints in relation to natters consuming the administration of the government of the City and its regard to the services maintained by public utilities in the City and to see that all franchises, permits and privileges granted by the City are faithfully observed; L. To execute general supervision over all public buildings, public parrs, streets and other public property which are under the control and jurisdiction of the City Council; M. To devote his entire working tire, thought and energy to the duties and interests of the City; N. To receive and open all official mail and communications addressed either to the Mayor or to the City Council; 0. To make reports and initiate recommendations as may be desirable or as requested by the City Council; P. To perform such other duties and exercise such other pourers as may be Page Revised 9.5.13 delegated to hire from time to time by ordinance, resolution r other action of the City u nil. Section 2.02. Devotion t Duties. EMPLOYEE agrees to devote productive time, ability, and attention to the business of EMPL YER during the term of this Ern pl ym nt Contract. This Contract shall not be interpreted nor intended to prohibit EMPLOYEE from making passive personal investments, conducting private business affairs or providing volunteer services if those activities do not interfere with the services required under this Contract. Section 2.03. Performance Evaluation Procedures. The City Council shall review and evaluate the performance of the EMPLOYEE at least annually, or on any schedule deemed appropriate by the City Council. Said review and evaluation shall be in accordance with specific criteria developed by EMPLOYER after consultation with EMPLOYEE. ARTICLE Ill COMPENSATION Section 3.01 Comppnsation. EMPLOYER agrees to pay to EMPLOYE for services rendered by hire pursuant to this Contract a monthly base salary of $18,,333.33, payable in installments at the time as other employees of EMPLOYER are paid. EMPLOYEE'S monthly base salary shall be adjusted -by any percentage increase given to Department Heads of EMPLOYER generally and shall not be decreased unless in a percentage consistent with a decrease applicable to Department Heads of EMPLOYER generally. Notwithstanding the above, EMPLOYER and EMPLOYEE agree that there shall be no further salary adjustments or bonuses for 2012. At the time of EMPLOYEE's periodic evaluations, EMPLOYER may consider an additional compensation package increase including, but not limited to, merit pay or an additional increase in salary or benefits. Section 3.02 Deferred Compensation. Cityshall provide to EMPLOYEE the same deferred compensation plan that may be provided to other Department Heads and Confidential Employees, if any. Page 4 Revised 9.5.13 ARTICLE IV EMPLOYEE BENEFITS Section 4.01. Automobile Allowance. During the term of this Employment contract, EMPLOYEE, to the extent necessary to perform his duties shall use his own personal Vehicle. EMPLOYER, in consideration thereof, shall pay EMPLOYEE the sum of$ per month as an automobile allowance. EMPLOYEE shall be responsible for the payment of all operating expenses of the Vehicle, including, but not limited to, gasoline, oil, service and repair, and if necessary, the replacement of his automobile. EMPLOYEE shall procure and maintain, at his expense, a comprehensive automobile liability policy on the Vehicle being used by hires, in an amount that is acceptable to the EMPLOYER. wring the course of this Employment Contract, EMPLOYEE shall provide EMPLOYER with written documentation that said insurance policy is in full force and effect. Section 4.02. Vacation and Bich Leave. EMPLOYEE shall be credited with 10 days of Vacation and 5 days of sick leave as of the commencement of employment. Annual Vacation and sick leave shall be accrued and administered in the same manner as vacation and sick leave is administered for Department {`lead employees of EMPLOYER. Section 4.03. Benefits. EMPLOYEE shall be entitled to receive benefits provided by EMPLOYER at a level no less {than that provided to other Department Heads of the City, which presently consist of retirement benefits, family health coverage, life insurance, disability insurance, Cupertino sports lub membership, administrative leave, fl ating holidays and holidays. The benefits so provided are subject to modification during the course of this Contract at the sole and absolute discretion of EMPLOYER at such times and to such extent as EMPLOYER may deem appropriate provided, however, them shall be no reduction in benefits unless EMPLOYER implements the same reduction of benefits to all other Department Muds of the City. Section 4. 4 Professional Du s and Subscriptions. EMPLOYER agrees to pay for professional dues and subscriptions of EMPLOYEE directly related to his duties as City Manager, provided the City Council has made provisions for such costs in the annual budget. Section 4.05 Expenses. EMPLOYEE shall be entitled to reimbursement ent for all reasonable expenses necessarily incurred by him in the performance of his duties upon Page Revised 9.5.13 presentation of vouchers indicating the amount and purpose thereof, and further provided that such expenses are in accordance nth policies established from time to time by EMPLOYER and consistent with budget allocations adopted by EMPLOYER YER for that purpose during the terra of this Employment Contract. Section 4.06 Moving and Relocation Expenses. EMPLOYER will pay EMPLOYEE the amount of $20,000 intended to be used for relocation, Dousing and house hunting expenses in EMPLOYEE's discretion. Section 4.07 Professional Development. EMPLOYER hereby agrees to pay travl.and subsistence expenses f EMPLOYEE for professional and office travel, meetings, and occasions adequate to continue the professional development f EMPLOYEE and to adequately pursue necessary official functions for EMPLOYER, including but not limited t, city manager associations and other such national, regional, state, local government groups and committees thereof which EMPLOYEE serves as a member, provided the City Council has made provisions for such costs in the annual budget. EMPLOYER also agrees to pay tuition, travel, and subsistence expenses of EMPLOYEE for courses, institutes, and seminars that are necessary for his professional development and of the good of the City provided the City Council has provided for sane in the annual budget. Section 4.08 Housing Assistance. EMPLOYEE may lect to receive Housing Assistance for Department Tads consistent with the EMPLE ER's Housing Assistance Policy in effect on the date of commencement of employment. ARTICLE V TERMINATION AND NOTICE Section 5.01. Termination of.Employment and Severance: A. Subject to the provisions of Section 2.28 of EM P LOYER's municipal Code, EMPLOYEE serves at the pleasure f EMPLOYER and nothing herein shall be taken to prevent, limit or otherwise interfere with the right of EMPLOYER to terminatethe services of EMPLOYEE with or without cause; provided, however, EMPLOYER shall tale no action to terminate the services of Page Revised 9.5.13 EMPL YEE, without cause, within ninety days after an election at which one or more new members are elected to the City Council. There is no express or implied promise made to EMPLOYEE for any form of continued employment. This Contract and the EMPLOYER's municipal Code chapter 2.28 are the sole and exclusive bases for an employment relationship between EMPLOYEE and EMPLOYER. R. if the EMPLOYEE is terminated by the EMPLOYER priorto expiration of this Contract, while still willing and able to perform the duties of the City Manager, EMPLOYER agrees to pay EMPLOYEE a single lump sum payrnent made on the effective date of termination, in an amount equivalent to six months aggregate salary and aggregate medical insurance benefit allowance if there are six or more months prior to the expiration date of this contract. If there are less than six months remaining the term of the contract, then the single lump sure payment made on the effective day of termination shall be in an amount equal to the monthly aggregate salary and aggregate medical benefit of the EMPLOYEE multiplied by the numbers of months left on the unexpired term of the Contract. If this Contract is not renewed, then EMPLOYER shall either provide EMPLOYEE with six months prior notice of nonrene oral or shall pay EMPLOYEE a single lump sum payment made on the effective date of termination in an amount equivalent to the difference between six months aggregate salary and medical insurance benefit allowance computed for the number of months of notice actually given. Any such payment will release EMPLOYER from any farther obligations under this Contract. Contemporaneously with the delivery of the severance Pay herein above set out, EMPLOYEE agrees to execute and deliver to EMPLOYER a release releasing EMPLOYER of all claims that EMPLOYEE may have against EMPLOYER. C. Not withstanding paragraph (b) above, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under the provisions of paragraph (b), if EMPL YEE is terminated because of a crime of moral turpitude or a violation of statute or law constituting misconduct in office. Further, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under paragraph (b), in the event EMPLOYEE voluntarily resigns or retires without affirmative action by EMPLOYER to terminate, initiate termination proceedings or request resignation. Page Reprised 9.5. x 3 D. Any payment to the EMPLOYEE pursuant to this subsection 5.01 shall be fully reimbursed to the EMPLOYER if the EMPLOYEE is convicted of a crime involving an abuse of his office or position. ARTICLE 111 MISCELLANEOUS Section 6.01. Form of Notices. Notices pursuant t this Contract shall be in writing given by deposit in the custody of the United State Postal Service, first class postage prepaid, addressed as follows; A. The City: Mayor and City Council City of Cupertino 10800 Torre Avenue Cupertino, C 5 14 B. EMPLOYEE: David Brandt Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of th date of personal service or as of the date three days after deposit of such written notice, postage prepaid, with the. United States Postal Service. Section 6.02. Bondi . EMPL YE R shall bear the full cost of any fidelity or other bonds required of EMPL YEE under any later or ordinance. Section 6.03 Ind r nifi ati n. 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 EM PL YEE' duties as City Ma n ager. If EMPL YER corn prornises or settles any such claim or suit, EMPLOYER shall pay the amount of any settlement, or if the claim results in a judgment against EMPLOYEE, EMPLOYER shall pay any such judgment, This indemnification Page Reprised 9.5.13 does not apply to any act, action or omission arising out of the gross negligence, willful misconduct on the part of EMPLOYEE, or acts EMPLOYEE outside the scope of his duties. Section 6.04 General Provisions. A. The text herein shall constitute the entire Contract between the parties. B. This Contract shall be binding upon and insure to the benefit of the heirs at lair and executors of EMPLOYEE. C. This Contract may only be modified upon the written consent of the EMPLOYER and EMPLOYEE. D. In any action to enforce the terms of this Contract the prevailing party shall be entitled to recover reasonable attorney's fees and court costs and other non-- reimbursable litigation expenses, such as expert witness fees and investigation expenses. Section 6.05 Severa bilit . If any provision thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract shall be deemed severable, shall not he affected, and shall remain in full force and effect. IN WITNESS WHEREOF, EMPLOYER has caused this Contract to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Contract, both in duplicate, the day and year first above written. ATTEST: _J -It t- Grace Schmidt, City Clerk APPROVED AS TO FORM: TimothyPav7is, Partner url eir Williams & Sorensen, LLP Page Revised 9.5.13 CITY OF ERTI 16 Orrin Mahoney, Mayor David Brandt, City Manager EMPLOYMENT CONTRACT FOR CITY MANAGER This Employment Contract is made and entered into this 7th day of August, 2012, by and between the CITY of CUPERTINO, STAVE OF CALIFORNIA, A Municipal Corporation, - by and through its City Council (EMPLOYER), and David Brandt (EMPLOYEE). `TT A T - A. EMPLOYER is a Municipal Corporation of the State of California. B. The City Council of the City of Cupertino, in accordance with the provisions of its Municipal Code, desires to ernploy the services of EMPLOYEE as-City Manager. C. EMPLOYEE desires to accept employment as Cupertino City Manager. D. It is the desire of both. EMPLOYE. and EMPLOYEE YEE to set forth the terms and conditions of said emptoyrnent. NOW THEREFORE, EFO E, ire consideration of the mutual covenants herein contained, the parties agree as follows: ARTICLE 1. TERM OF EMPLOYMENT Section 1.01. Term of the Contract: This Contract will commence on September 10, 2012, and will automatically expire on September 9, 2016 unless extended in writing by the parties. on or within 30-days of September 9, 2015, EMPLOYEE shall notify EMPLOYER of the expiration date of September 9, 2016. In the event that EMPLOYER does not intend to extend this Contract beyond expiration, it shall notify EMPLOYEE in writing of its latent not to extend prior to the effective slate of expiration. Failure of EMPLOYER to provide such notice s atl not affect the expiration date of September 9, 20161 Revised '7.1 1.1 11:00A -M Section 1.02 Termination Prior to EUiration. Notwithstanding any provision contained in this Contract to the contrary, EMPLOYEE understands and grees that he serves at the pleasure of EMPLOYE. and may be terminated prior to expiration of this Contract at the will of the EMPLOYER, subject only to the severance provisions set forth in Article V of this Contract, and the ordinance provisions as sot forth in Section 2,28.090 of the Cupertino Municipal Code, In life manner, nothing in this Contract shall prevent, limit, or otherwise interfere with the right of EMPLOYEE to resign at any time from the position of City Manager subject only to the notice provisions set forth in Article V of this Contract and the ordinance provisions as set forth in Section 2.28,090 of the Cupertino Municipal Code, EMPLOYEE further acknowledges that EMPLOYER has made no limited expressed, or written assurances of continued employment with the City of Cupertino other than as specifically set forth in this Contract. ARTICLE II: BUTTES AND OBLIGATIONS OF EMPLOYEE Section 2.01. duties, EMPLOYER hereby agrees to employ EMPLOYEE as City Manager of the' City of Cupertino to perform the functions and duties as specified in the Municipal Code, California Constitution, and California Statutes, and to perform such other legally permissible and proper duties and functions as EMPLOYER shall from time to time assign to EMPLOYEE which are reasonably related to the position of City Manager, including but not limited to: A. To see that all laves and ordinances of the City are duly enforced and that all franchises, permits, licenses and privileges granted by the City are faithfully performed and observed; Rm s ed 7 ,11,1 11: OOAM B. To control, order and give directions to all directors of departments and to subordinate officers and employees of the City under his jurisdiction through their department directors, and to transfer employees frorn one department to another; C. The services and facilities of the City 'treasurer and the City Attorney shall be made available to the City Manager to the same extent and in the same manner that the services are available to the City Council; D. To appoint, discipline and dismiss any and all officers and employees of the City except those elected by the electors of the City or whose appointment or dismissal is denied to the City Manager under the laws of the state. The power to appoint given in the preceding paragraph does not include the power to create a new position except as provided under Chapter 2.52; To attend all meetings of the City Council unless excused there from by the City Council; F. To recommend to the City Council for adoption such measures and ordinances as deems necessary or expedient; G. To beep the City Council at all tunes fully adised..s to the financial conditiofts and needs of the City; H. To prepare and submit to the City Council the annual budget and to administer it after adoption; Devised 7.1 1.12 1 1 :00A.M f, To purchase or cause to .be purchased all supplies for all of the departments or divisions of the City. No expenditures shall he submitted or recommended to the City Council except on report and approval of the City Manager; J. To make investigation into the affairs of the City and any department or division thereof and any Contract or the proper performance of any obligation running to the City; K, To investigate all complaints in relation to matters consuming the administration of the government of the City and in regard to the services maintained by public utilities in the City acid to see that all franchises, permits and privileges granted by the City are faithfully observed; L. To execute general supervision over all public buildings, public parrs, streets and other public property which are under the control and jurisdiction- of the City Council; A To devote his entire working time, thought and energy to the duties and interests of the City; N. To receive and open all official mail and communications addressed either to the Mayor or to the City Council; 0. To male reports and initiate recommendations as may be desirable or as requested by the City Council; P. To perforrn such other duties and exercise such other powers as may be delegated to him from time to time by ordinance, resolution or other action of the City Council. Revised 7.11,12 1 1;o , f Section 2.0 2. Devotion to Duties, EMPLOYEE agrees to devote productive time, ability, and attention to the business of EMPLOYER during the tern of this Employment Contract. This Contract shall not be interpreted nor intended to prohibit EMPLOYEE from making .g passive personal investments, conducting private business affairs or providing volunteer services if those activities do not interfere with the services required under this Contract. Section 2.03. Performance Evaluation Procedures. The City Council shall review and evaluate the performance of the EMPLOYEE at least amnually, or on any schedule deemed appropriate by the City Council. Said review and evaluation shall be in accordance with specific criteria developed by EMPLOYER after consultation with EMPLOYEE. ARTICLE IIl COMPENSATION Section 3.01 CoMpensati n. EMPLOYER agrees to pay to EMPLOYEE for services rendered by him pursuant to this Contract a monthly base salary of $17,500, payable in installments at the time as other employees of EMPLOYER are paid. EMPLOYEE'S monthly base salary shall be adjusted by any percentage increase given to Department Heads of, EMPLOYER generally and shall not be decreased unless in a percentage consistent with a decrease applicable to Department Leads of EMPLOYER generally. Notwithstanding hstanding the above, EMPLOYER and EMPLOYEE agree that there shall be no f ether salary adjustments or bonuses for 2012. At the time of 1 PLOY 's per 'lodie evaluations, EMPLOYER may consider are additional compensation package increase including, g, but not limited to, merit pay or an additional increase in salary or benefits. Revised 7.1 1 , 12 1 1:00AM Section 3.02 Deferred Corn ensation. City shall provide to EMPLOYEE the sane deferred compensation plan that may be provided to other Department Leads and Confidential Employees, if any. ARTICLE Iv EMPLOYEE BENEFITS Section 4,01. Automobile Allowance. During the tern of this Employment Contract, EMPLOYEE, to the extent necessary to perform his duties shall use his own personal vehicle. . EMPLOYER,, in consideration thereof, shall pay EMPLOYEE the sung of o per month as an automobile allowance, EMPLOYEE shall be responsible for the payment of all operating expenses of the vehicle, including, but not limited to, gasoline, oil, service and repair, and if necessary, the replacement of his automobile, EMPLOYEE shall procure and maintain, at his expense, a comprehensive automobile liability policy on the vehicle being used by him, in an amount that is cc p table to the EMPLOYER. During the course of this Employment Contract, EMPLOYEE shall provide EMPLOYER with written documentation that said insurance policy is in full force and effect. Scction 4,02. Vacation and Sick Leave. EMP L Y shall be credited with 10 days of vacation and 5 days of sick leave as of the commencement of employment. Annual vacation and sick leave shall be accrued and administered in the same manner as vacation and sick leave is administered for Department rtment Head employees of EMPLOYES.. Section 4,03. Bengfits. EMPLOYEE shall be entitled to receive benefits provided by EMPLOYER at a level no less than that provided to other Department Heads of the City, which presently consist of retirement benefits, family health coverage, life insurance, disability insurance, Cupertino sports club membership, administrative leave, floating holidays and holidays. The benefits so provided are subject to modification during the course of this Contract Revised 7.1 1 F 1 1 1:O AI at the sole and absolute discretion of EMPLOYER at such tunes and to such extent as EMPLOYE. may deem appropriate provided, however, there shall be no reduction in benefits unless EMPLOYER implements the sate reduction of benefits to all other Department ent Heads of the City. Section 4,04 Professional Dues and Subscriptions. EMPLOYER agrees to pay for professional dues and subscriptions of EMPLOYEE directly related to his duties as City Manager, provided the City Council has made provisions for such costs in the annual budget. Section 4.05 Expenses. EMPLOYEE shall be entitled to reimbursement for all reasonable expenses necessarily incurred by him in the perfortnaticie, of his duties upon presentation of vouchers indicating the amount and purpose thereof, and further provided that such expenses are in accordance with policies established from time to time by EMPLOYER and consistent with budget allocations adopted by EMPLOYER for- that purpose during the t nn of this Employment Contract. Section 4,06 Moving and Relocation Expenses. EMPLOYE. will pay EMPLOYEE the amount of $20,000 intended to be used for relocation, housing and house hunting expenses in EI PL} YEE's discretion. Section 4.07 Professional Development. EMPLOYER YEr hereby agrees to pay travel. and subsistence expenses of EMPLOYEE for professional and office travel, meetings., and occasions adequate to continue the professional development of EMPLOYEE to adequately pursue necessary official functions for EMPLOYER, including but not limited to, city manager associations and other such national, regional, state, local government groups and co inittees thereof which EMP LOYEE serves as a member, provided the City Council has made provisions for such costs in the annual budget. Devised 7,11.12 1 J F 0 M EMPLOYER also agrees to pay tuition, travel, and subsistence expenses of EMPLOYEE for courses, institutes, and seminars that are necessary for his professional development and of the good 'of the City provided the City Council has provided for same in the annual budget, Section 4.08 Housing Assistance. EMPLOYEE- may elect to receive Housing Assistance for Department Leads consistent with the MPL YE 's Housing Assistance Policy in effect on the date of commencement of employment, ARTICLE v TERMINATION AND NOTICE Section 5,01 Termination of E-rnT)lQyvment and Severance: A. Subject to the provisions of Section 2,28 of MPL 's municipal Code, EMPLOYEE serves at the pleasure of EMPLOYER and nothing herein shall be taken to prevent, limit or other-wise interfere with the right of EMPLOYER to terminate the services of EMPLOYEE with or without cause; provided, however, EMPLOYER YER shall tale no action to t n- ninate the services of EMPLOYEE, without cause, within ninety days after an election t which one or more new members are elected to the City Council. There is no express or implied promise made to EMPLOYEE for any form of continued ernployrnent, This Contr act and the E1 PL YE 's municipal Code chapter 2,28 are the sale and exclusive bases for an employment relationship between EMPLOYEE and EMPLOYER. B, If the EMPLOYEE YEE is terminated by the EMPLOYER prior to expiration of this Contract, while still willing and able to perfon -n the duties of the City Manager, EMPLOYER agrees to pay EMPLOYEE YEE a single lump sum payment made on the effective date of termination ,in an amount equivalent to six months aggregate salary and aggregate medical insurance benefit allowance if there are six or rnore months prior to the expiration date of this contract, If there are less than six months remaining. in the term of the contract, then the single Revised 7.11,12 11:00AM lump sum pariaent made on the effective day of termination shall be in an amount equal to the monthly aggregate salary and aggregate medical benefit of the EMPLOYEE multiplied by the numbers of months left on the unexpired term of the Contract. If this Contract is not renewed, then EMPLOYER shall either provide EMPLOYEE with six months prior notice of nonrerrew l or shatl pay EMPLOYEE a single lump sum payment made on the effective date of tennin Lion in an amount equivalent to the difference between sic months aggregate salary and medical insurance benefit allowance computed for the number of months of notice actually given. Any such payment will release EMPLOYER from any further obligations under this Contract. Contemporaneously with the delivery of the severance pay herein above set out, EMPLOYEE agrees to execute and deliver to EMPLOYER a release releasing EMPLOYER of all claims that EMPLOYEE may have against EMPLOYER, C. Notwithstanding paragraph b above, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under the provisions of paragraph (b), if EMPLOYEE is terminated because of a crime of moral -turpitude or a violation of statute or law constituting misconduct in office. Further, EMPLOYER shall not be obligated to pay, and shall not pay, any amounts or continue any benefits under paragraph (b), in the event EMPLOYEE voluntarily resigns or retires without affirmative action by EMPLOYE. to terminate, initiate t nnination proceedings or request resignation. D. Any payment to the EMPLOYEE pur ;scant to this subsection 5. 0 1 shal l be fuller reimb-arsed to the EMPLOYER if the EMPLOYEE is convicted of a crime involving an abuse of his office or position. ARTICLE VI 1 MISCELLANEOUS Section 6.01. F rna of Notices, Revised F 1 1.12 11 ;00A Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, First class postage prepaid, addressed as follows; A. The City: Mayor and City Council City. of Cupertino 10300 Torre Avenue Cupertino, CA 95014 B. EMPLOYEE: David Brandt Address to be inserted at time of relocation: � Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process* Notice shall be deemed given as of the date of personal service or as of the date three days after deposit of such written notice, postage prepaid, with the United States Postal Service. Section 6.02. Bondiqg. EMPLOYER shall bear the fall cost of any fidelity or other bonds required of EMPLOYEE under any law or ordinance Section 6.03 Indemnification. EMPLOYER shall defend; save hann1ess 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 per*fonnan e of MPL E's duties as City Manager, If EMPLOYER compromises ises or settles Revised 7.11.1 11:00A any such c laim or suit, EMP L Y R small pay the amount of any s ett l ernent, or if th e c l al i in results in a judgunent against EMPLOYEE, EMPLOYER shall pay any such judgment. This indemnification cues not apply to any act, action or omission arising out of the gross negligence, willful misconduct on the part of EMPLOYEE, or acts EMPLOYEE outside the scope of his duties, Section 6,04 General Proisiri. A. The text herein shall constitute the entire Contract between the parties. B. This Contract shall be binding upon and insure to the benefit of the heirs at law and executors of EMPLOYEE. C. This Contract may only be modified upon the written consent of the EMPLOYER and EMPLOYEE. D. In any action to enforce the terms of this Contract the prevailing party shall be entitled to recover reasonable attorney's fees and court costs and other non- reimbursable litigation expenses, such as expert witness fees and investigation expenses. Section 6.05 Se er l t . If any provision thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract shall be deemed severable, shall not be affected, and shall remain in frill force and effect. IN WITNESS WHEREOF, EMPLOYER has caused this Contraot to be sighed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Contract, both in duplicate, the day and year first above written. Revised 7.1 1.1 1 1:00A-M ATTEST: City Clerk APPROVED AS TO FORM: CITY OF CUP TIN Mayor City Attorney EMPLOYEE