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04/03/2012 08 Police Chief Employment Agreement - Dominic Rizzi, Jr. e iksiti r BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. e For Meeting of: April 3, 2012 ITEM TITLE: Resolution authorizing the Interim City Manager to agree to special employment contract terms providing for severance compensation and health care allowance as part of the employment agreement between Dominic Rizzi, Jr. and the City thereby formalizing the hiring of Dominic Rizzi, Jr. as the new Yakima Chief of Police. SUBMITTED BY: Jeff Cutter, City Attorney CONTACT Jeff Cutter, City Attorney /575 -6030 PERSON /TELEPHONE: 411 SUMMARY EXPLANATION: The Interim City Manager of the City of Yakima desires to employ Dominic Rizzi, Jr. as Police Chief of the City of Yakima Police Department and seeks the Council's approval of a reasonable severance agreement with Mr. Rizzi that would apply in the event Mr. Rizzi's position was terminated by the City without cause. The Interim City Manager also requests the City Council's approval of a health care allowance in the Police Chief employment agreement that would allow Mr. Rizzi to maintain his present health care plan. The Interim City Manager is asking the Council to approve the City's payment of a health care allowance in the same amount that it would otherwise pay toward Mr. Rizzi's City Health Care Plan. Resolution X Ordinance Other (specify) Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding Source: Phone: APPROVED FOR C Manager SUBMITTAL: y / STAFF RECOMMENDATION: Adopt resolution. BOARD /COMMISSION RECOMMENDATION: ATTACHMEINTS: Click to download Resolution re Rizzi contract provisions El Police Chief Employment Agreement • O RESOLUTION NO. R -2012- A RESOLUTION authorizing the Interim City Manager to agree to special employment contract terms providing for severance compensation and health care allowance as part of the employment agreement between Dominic Rizzi, Jr. and the City thereby formalizing the hiring of Dominic Rizzi, Jr. as the new Yakima Chief of Police. WHEREAS, Dominic Rizzi, Jr. has been selected by Michael Morales, Interim City Manager to become the City's new Chief of Police; and WHEREAS, the Interim City Manager has negotiated with Mr. Rizzi on the terms of Mr. Rizzi's employment with the City and has reached agreement on those terms; and WHEREAS, because Mr. Rizzi is relocating from Chicago, Illinois to begin his new position with the City and wishes to provide some security to himself and his family for committing to this relocation through a severance agreement with the City in the event his employment was to be terminated by the City without cause; and WHEREAS, the Interim City Manager finds it to be appropriate to approve a • reasonable severance agreement with Mr. Rizzi for 6 months of salary compensation if Mr. Rizzi's position was to be terminated by the City without cause; and WHEREAS, City ordinances do not presently provide for severance terms in a City employee's employment agreement and therefore approval of a severance provision requires specific City Council authorization; and WHEREAS, Mr. Rizzi has advised the City that he is already a participant in a medical health plan from his previous employment that he would like to maintain following his relocation to Yakima until such time as he is fully vested in that plan at which time he would no longer have to pay any cost toward maintaining personal health care coverage; and WHEREAS, in order to accommodate this request Interim City Manager Michael Morales would like the City Council's approval to allow Mr. Rizzi to maintain his present health care plan with the City contributing the same value toward the cost of that plan as the City would otherwise have paid toward his health care under the City Health Care Plan until such time as Mr. Rizzi's health care plan is vested, after which time the City's contributed allowance would cease; and WHEREAS, the City Council finds it to be in the best interest of the City to approve the severance and health care allowances set forth in the attached Yakima Police Chief Employment Agreement; Now, Therefore, [Type text] BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Interim City Manager of the City of Yakima is hereby authorized to include in the Yakima Police Chief Employment Agreement the provisions for severance compensation and health care cost contributions that are part of the attached and incorporated Yakima Police Chief Employment Agreement between the City and Dominic Rizzi, Jr., as reasonable and appropriate provisions of said employment agreement. ADOPTED BY THE CITY COUNCIL this 3rd day of April, 2012. ATTEST: Micah Cawley, Mayor City Clerk [Type text] EMPLOYMENT AGREEMENT FOR POLICE CHIEF OF THE CITY OF YAKIMA POLICE DEPARTMENT THIS EMPLOYMENT AGREEMENT (hereafter referred to as "Agreement "), is by and between the City of Yakima, Washington, a Washington municipal corporation (hereafter referred to as "City "), and Dominic Rizzi, Jr. (hereafter referred to by name, as "Police Chief', or as "employee "). WHEREAS, pursuant to RCW 35.18.060, Yakima Municipal Code ( "YMC ") 1.18.010, _ and Article II of the City Charter of the City of Yakima (hereafter referred to as the "City Charter "), the City Manager of the City of Yakima desires to employ Dominic Rizzi, Jr. as Police Chief of the City of Yakima Police Department; and WHEREAS, the City desires to provide for certain benefits and compensation for the Police Chief and to establish conditions of employment applicable to the Police Chief; and WHEREAS, Dominic Rizzi, Jr. desires to accept employment as Police Chief of the City of Yakima Police Department under the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the mutual promises as set forth in this Agreement, the parties agree as follows: III Section 1. Employment and Duties. A. Dominic Rizzi, Jr. is appointed as Police Chief effective on the date provided in Section 2 and under the terms of this Agreement, and agrees to accept employment with the City in the position of Police Chief. The Police Chief shall have the duties, responsibilities and powers of said office as set forth in the City of Yakima Class Specification for Police Chief, which is attached as Exhibit A, and under Washington law, the Yakima Municipal Code, the City Charter, and he shall perform such other legally permissible and proper duties and functions as the City Manager shall from time to time assign. The Police Chief shall follow the City of Yakima administrative policies and procedures. The Police Chief agrees to perform all duties and responsibilities faithfully, industriously, and to the best of his ability and in a professional and competent manner. B. The Police Chief shall obtain a Basic Law Enforcement Certificate of Equivalency, in accord with WAC 139 -05 -210, from the Washington State Criminal Justice System by attending and completing the first program available after the effective date of his employment. C. The Police Chief shall remain in the exclusive employ of the City and shall devote all such time, attention, knowledge and skills necessary to faithfully perform his duties under this Agreement. The Police Chief may, however, engage in educational and professional activities upon receipt of approval by 'the City Manager, which approval shall not be unreasonably withheld, provided that such activities shall not interfere with his primary 1 of 9 obligation to the City as its Police Chief. The Police Chief shall dedicate no less than an average of forty (40) hours per week in the performance of his duties hereunder. D. If the Police Chief serves on any appointed boards or elected boards of any professional organization, or serves on any committees related to his professional activities, in the event any monies are paid, or gifts received by the Police Chief related to such service, such money or property shall be paid over to or delivered to the City, unless otherwise provided by the City Manager. Section 2. Duration of Agreement. A. The City's employment of Dominic Rizzi, .Jr. as the Police Chief of the City of Yakima Police Department is effective on , 2012. B. The Police Chief shall serve at the pleasure of the City Manager and shall be an at -will contractual employee of the City of Yakima, and Dominic Rizzi, Jr. waives any rights to a pre - termination hearing or post - termination hearing in the event of discipline or termination. The parties recognize that the Police Chief is an at -will employee whose employment may be terminated at any time, without or with cause. Other than the specific conditions set forth in this Agreement, nothing shall prevent, limit, or otherwise interfere with the right of the City Manager to terminate the employment of the Police Chief at any time, without or with cause. Section 3. Yakima Municipal Code. The references to the Yakima Municipal Code ( "YMC ") sections in this Agreement are to the City of Yakima Municipal Code as it currently exists, or as it may be amended in the future. Section 4. Salary. A. For the performance of services pursuant to this Agreement, the City agrees to pay the Police Chief an annual base salary as set forth in the 2012 City of Yakima Master Ordinance • for pay for the Police Chief position at Step D, which is $ per year, payable in installments at the same time as other City employees are paid. After six (6) months of employment with the City if the Police Chiefs job performance is determined to be satisfactory following a six (6) month performance evaluation by the City Manager in accord with Section 5 (C) herein, the Police Chief's pay shall be increased to Step E, which is $ . per year. B. After the first year of this Agreement, should the management employees receive pay and compensation adjustments pursuant to YMC 2.20.115 -.116, the Police Chief will receive the same increase pursuant to the YMC. C. The City Manager may also increase said base salary and /or other benefits of the Police Chief in such amounts and to such an extent as the City Manager may determine Page 2 of 9 desirable on the basis of an annual performance evaluation of the Police Chief, subject to the approval by the City Council of the pay increase pursuant to a modification of the Pay Master Ordinance passed by the City Council. D. Nothing in this Section shall require the City to increase the base salary or other benefits of the Police Chief. E. The Police Chief acknowledges that, pursuant to the Fair Labor Standards Act (FLSA), the Police Chief qualifies for the professional employee exemption. As an exempt employee, the Police Chief is paid a monthly salary and is not entitled to overtime compensation. Section 5. Performance Criteria and Evaluations. A. At least annually, the City Manager shall meet with the Police Chief to establish performance .standards, departmental goals and criteria for a performance evaluation. Between and of each year, the City Manager shall in accordance with the criteria previously established, review and evaluate the performance of the employee. B. The City Manager shall provide the employee with a written performance evaluation and shall provide an opportunity for the employee to discuss the contents of it with the City Manager for the purpose of advancing the overall effectiveness of the Police Chief in his . position. Such evaluation shall be in such form as the City Manager deems appropriate and shall be made at a time between and of each year in which this Agreement is effective. C. The City Manager shall provide the employee with periodic written performance evaluations a minimum of one time during his first 180 days of employment as Police Chief. Section 6. Dues and Subscriptions. Pursuant to YMC 2.20.085(6), the City will pay the Police Chief's professional dues for memberships in the Washington Association of Sheriffs and Police Chiefs ( "WASPC "), the International Association of Chiefs of Police ( "IACP "), and the National Academy if applicable. Other appropriate dues and subscriptions on behalf of the Police Chief will be paid by the City as approved by the City Manager, if funds are available in the City's annual budget. Section 7. Professional Development. Pursuant to YMC 2.20.085(5), and in accordance with the City's travel policy, the City agrees to pay reasonable and customary travel and subsistence expenses for the Police Chief's travel to and attendance at Washington Association of Sheriffs and Police Chiefs ( "WASPC ") conferences. The City may choose to pay for the Police Chief's attendance at other seminars, conferences, and committee meetings as deemed appropriate and approved in advance by the City Manager. Page 3 of 9 Section 8. Community Involvement. The City recognizes the desirability of representation in and before local civic and other organizations, and encourages the Police Chief to participate in these organizations to foster a continuing awareness of the City's activities as well as the community's attitudes and ideas. Section 9. Leave. The Police Chief shall accrue annual leave, which increases depending on length of service, at the same accrual rate as provided for management employees in YMC 2.40.020. If the State of Washington Law Enforcement Officers' and Fire Fighters' Retirement System that the Police Chief is in allows the accrual of any sick leave, then accrual of sick leave shall be as provided for management employees in YMC 2.40.030. Any other leave, such as bereavement leave pursuant to YMC 2.40.035, shall be the same as provided for management employees. Accrued annual leave cash out shall be paid at separation providing the qualifying conditions set forth in YMC 2.40.020(D) of the Yakima Municipal Code relating to management employees have been met. If the State of Washington Law Enforcement Officers' and Fire Fighters' Retirement System that the Police Chief is in allows the accrual of any sick leave, then cash out for sick leave for management employees are placed in a VEBA Medical Savings Account at retirement if the employee meets the retirement criteria under VEBA. Section 10. Benefits. 410 The Police Chief shall receive the benefits, including longevity pay pursuant to YMC 2.24.010, as are provided for management employees under the Yakima Municipal Code and /or by City policy. Section 11. Holidays. The Police Chief is entitled to specified holidays with pay consistent with management employees pursuant to YMC 2.40.080. Section 12. Health, Dental, Life and Disability Insurance. The City of Yakima has an employee Health Care Plan. Health care coverage, including limited vision care and limited dental insurance, is available for City employees and their dependents for which the City cost shares. Pursuant to YMC Chapter 2.04, the Police Chief is entitled to be covered by the City of Yakima employee Health Care Plan consistent with City management employees. Because the Police Chief has an existing health care plan from his former employment that he desires to maintain, the City agrees to compensate the Police Chief for the cost to him to maintain his present health care plan, up to but not to exceed the amount the City's Health Care Plan would otherwise have contributed to the Police Chief's health care costs for similar coverage under the City's Plan. This health care cost payment shall be included with the Police Chief's monthly compensation amount as a separate item and shall be treated as a taxable benefit subject to normal withholding taxes. The City's contribution for health care Page 4 of 9 allowance shall not be included in any calculations as base pay. If, and at such time as the Police Chief's current health care plan is fully paid and no longer requires financial contributions from him to maintain health care coverage, the City's obligation to contribute toward that health care coverage shall cease. The City will provide other insurance, or the availability for other insurance, for the Police Chief as it does for management employees. Section 13. Communication Equipment. The Police Chief will receive a City- issued cell phone to be used for City business in accordance with City policy. Section 14. Retirement. Pursuant to Washington State law, the City shall contribute the percentage required by the State of Washington of the Police' Chiefs monthly salary each month into the State of Washington Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF Plan 2). Pursuant to YMC 2.20.130, the City shall make a 3% contribution of the Police Chief's base monthly salary each month for the employee's deferred compensation plan. Section 15. Residency. The City Manager prefers that the Police Chief resides within the City of Yakima. 411 Section 16. Termination by the City Manager and Severance Pay. A. Pursuant to RCW 35.18.060, YMC 1.18.010, and Article II of the City Charter, and as provided in this Agreement, the Police Chief shall serve at the pleasure of the City Manager, and the City Manager may terminate this Agreement and the Police Chief's employment with the City at any time without cause or with cause, and /or for no reason or for any reason. B. Should the City Manager terminate the services of the Police Chief "without cause ", the City shall provide the Police Chief with written notice of the intent to terminate at least sixty (60) days prior to the effective date of termination. At the next regular City payroll following the effective date of such termination, and pursuant to the provisions in YMC Chapter 2.40 relating to management employees, the City shall pay accrued and unpaid salary and benefits earned prior to the date of termination (including annual leave) as calculated and provided in the YMC Chapter 2.40 provisions relating to management employees. If the State of Washington Law Enforcement Officers' and Fire Fighters' Retirement System that the Police Chief is in allows the accrual of any sick leave, then the cash out of sick leave shall be as provided for management employees in YMC 2.40.030. C. Severance Pay. Should the City Manager terminate the services of the Police Chief "without cause ", then the employee shall be entitled to severance pay as set forth in this Section 16C of the Agreement. If the City Manager terminates the services of the Police Page 5 of 9 Chief "without cause ", then within forty-five (45) calendar days following the termination of the Police Chief's employment "without cause ", the City shall pay the Police Chief a lump sum severance pay equal to six (6) months of his base salary as full and complete payment and satisfaction of any claims of the Police Chief of whatsoever nature arising out of this Agreement or otherwise. As consideration for such severance payment, the Police Chief shall, prior to receipt thereof, execute and deliver to the City a general release of the City of Yakima, the City Council, the City Manager, and the City's officers, agents, and employees, for all acts and actions (whether accrued or subsequently accruing) from the beginning of time until the date of release, said release to be prepared by the City Attorney or his or her designee. D. In the event the Police Chief is terminated for "just cause," the City shall have no obligation to pay the amounts outlined in Section 16, Paragraph C of this Agreement. For purposes of this Agreement, "just cause" is defined to include but is not limited to any of the following: 1. Misfeasance, malfeasance and /or nonfeasance in performance of the Police Chief's duties and responsibilities. 2. Conviction or a plea of guilty or no contest to a felony crime, whether or not adjudication is withheld. 3. Conviction of a gross misdemeanor or misdemeanor involving moral turpitude. 4. Neglect of duty, including the inability or unwillingness to properly discharge the responsibilities of office. 5. Violation of any substantive City policy, rule, or regulation, which would subject any other City employee to termination. 6. The commission of any fraudulent act against the interest of the City. 7. The commission of any act which involves moral turpitude, or which causes the City disrepute. 8. Violation of City of Yakima Charter Article VI, Section 5, or violation of Revised Code of Washington ( "RCW ") Chapter 42.23, entitled "Code of Ethics for Municipal Officers -- Contract Interests ". 9. Violation of the City of Yakima Police Department Law Enforcement Code of Ethics, which is attached as Exhibit B. 10. Any other act of a similar nature of the same or greater seriousness. E. In the event the City Manager, at any time during the employment term, reduces the salary or other benefits of the Police Chief, as identified herein, in a greater percentage Page 6 of 9 than an equivalent across - the -board reduction for all full -time City management employees, or in the event the City allegedly refuses to comply with any other material provision of this Agreement benefiting the Police Chief, the Police Chief shall notify the City Manager in writing of the alleged violation. The City Manager shall have forty five (45) days from such notice within which to cure the violation; otherwise, the Police Chief may at his option, . consider such violation as termination "without cause" as of the date of such alleged reduction or refusal, and the severance pay provision and other termination provisions contained herein shall become applicable at the annual salary and benefit level in effect prior to the reduction or refusal. Section 17. Termination by the Police Chief. The Police Chief may terminate this Agreement at any time by delivering to the City Manager a written notice of termination not later than sixty (60) days prior to the effective date of the termination. Upon request by the employee at the time of the Police Chief's written notice of termination, the City Manager has the discretion to agree on behalf of the City to a notice of termination period of less than sixty days; provided, however, the City Manager is not required to grant the employee's request for a notice of termination period of less than sixty days. If the Police Chief terminates this Agreement, then the provisions of Section 16, Paragraph C above, shall not apply. If the Police Chief voluntarily resigns pursuant to this Section, the City shall pay to the Police Chief all accrued compensation due to the Police Chief up to the Police Chief's final day of employment, and the pay out of any accumulated annual leave shall be governed by • the same Yakima Municipal Code provisions and City policies as those for City management employees. If the State of Washington Law Enforcement Officers' and Fire Fighters' Retirement System that the Police Chief is in allows the accrual of any sick leave, then the cash out of sick leave shall be as provided for management employees in YMC 2.40.030. The City shall have no further financial obligation to employee pursuant to this Agreement. This Section shall not prevent the Police Chief from collecting any money earned as a result of participation in the City's deferred retirement program. Section 18. Disability. If the Police Chief becomes permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of four (4) consecutive weeks beyond any accrued leave, or beyond a period of time that the employee is otherwise legally entitled to, the City shall have the option to terminate this Agreement, subject to the severance pay provision outlined in Section 16, Paragraph C of this Agreement. Section 19. Relocation Expenses. A. The City agrees to pay the Police Chief up to Ten Thousand Dollars ($10,000) to reimburse the Police Chief for the costs associated with the cost of the relocation of himself and his family. Pursuant to YMC 2.20.085, the relocation expenses are for the cost of moving the household goods and personal effects of the Police Chief from his place of residence to the City of Yakima. Reasonable and necessary moving expenses shall be reimbursed only when the Police Chief can produce receipts to document the Page 7 of 9 expenditure, or when the invoices are submitted so that the City can pay the moving company directly. `If a moving company is used, it is the City's strong preference that a local firm be contacted and given the opportunity to provide a bid for the relocation. B. Should the Police Chief resign within two years of his employment with the City to retire or accept a position elsewhere, he will return to the City a prorated share of any expenses it has paid to assist with his relocation based on the number of months remaining in the twenty -four month period. A percentage of the total relocation expenses paid by the City will be returned to the City that equals the percentage of months remaining in the first twenty -four months commencing from the beginning of employment. Reimbursement to the City of relocation expenses is not required if the Police Chief should die within the first two (2) years or resign within such time due to disability. Section 20. Indemnification. A. The Police Chief shall be entitled to the benefits and subject to the responsibilities in City of Yakima Resolution No. D -5820, entitled "Resolution providing for indemnification against personal liability for City personnel ", and any protections provided by State of Washington law, including RCW 4.96.041. B. Said indemnification referred to in this Section 20 shall extend beyond the termination of employment and the expiration of this Agreement to provide protection for any such acts undertaken or committed in the capacity as Police Chief, regardless of whether the notice of claim or filing of a lawsuit occurs during or following employment with the City. Section 21. Bonding. The City agrees to bear the full cost of any fidelity or other bonds required of the Police Chief under any policy, regulation, ordinance or law. Section 22. General Terms and Conditions. A. If any provision, or any portion thereof, contained in this Agreement is held by a court of competent jurisdiction to be unconstitutional, illegal, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall not be affected and shall remain in full force and effect. B. The waiver by either party of a breach of any provision of this Agreement by the other shall not operate or be construed as a waiver of any subsequent breach by that party. C. This Agreement shall be binding upon and inure to the benefit of the heirs at law or personal representative of Police Chief D. This Agreement contains the entire Agreement of the parties. It may not be changed verbally, but only by an Agreement in writing signed by the parties. Page 8 of 9 E. Washington law shall govern this Agreement, and any litigation that may arise from this Agreement shall be filed and litigated in Yakima, Washington. F. Upon the Police Chief's death, the City's obligations under this Agreement shall terminate except for: 1. Transfer of ownership of retirement funds, if any, to his designated beneficiaries; 2. Payment of accrued leave balances as provided for management employees under these circumstances under the Yakima Municipal Code; 3.. Payment of all outstanding hospitalization, medical and dental bills in accordance with City's insurance policies or plans, if applicable; and 4. Payment of all life insurance benefits in accordance with the City's insurance policies or plans. G. The parties acknowledge that each had an opportunity to review this Agreement and consult with their attorney if they chose to do so, and, accordingly, no court construing this Agreement shall construe it more strictly against one party than the other and every covenant, term and provision of this Agreement shall be construed simply according to its • fair meaning. H. This Agreement may be executed in duplicate or counterparts, each of which shall be deemed an original and all of which together shall be deemed one and the same instrument. No term, condition or covenant of this Agreement shall be binding on either party until both parties have signed it. EXECUTED this day of , 2012. CITY OF YAKIMA By: Michael A. Morales, Interim City Manager ATTEST: By City Clerk EXECUTED this day of , 2012. Dominic Rizzi, Jr. City Contract No. 2012 - Page 9 of 9