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Resolution No. 09943 1 RESOLUTION NO. 9943 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF 4 AN AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT- BY 5 AND BETWEEN THE CITY OF VERNON AND DONAL O'CALLAGHAN 6 7 WHEREAS, on May 7, 2007, the City Council of the City of g Vernon adopted .Resolution No. 9315 approving an Employment Agreement g dated May 7, 2007, as amended by Resolution No. 9890 adopted on March 10 16, 2009 (collectively,-the "Agreement") with-Donal O'Callaghan 11 ("O'Callaghan") to serve as the City's Director of Light & Power,." 12 Director of the Gas Department and Director of Utilities & Government 13 Infrastructure; and 14 WHEREAS, the City Council of the City of Vernon desires to 15 appoint O'Callaghan to serve as the City's City Administrator; and' 16 WHEREAS, the City desires to -amend the Agreement to modify. 17 and clarify .the parties'. relationship and obligations respecting 1g O'Callaghan serving as the City's Director of Light & Power, Director- 19 of the Gas Department and the City Administrator. 20 NOW, THEREFORE,. BE IT RESOLVED BY THE CITY COUNCIL OF THE 21 CITY OF VERNON AS FOLLOWS: 22 SECTION 1: The City Council of the City of Vernon hereby 23 finds and determines that the recitals contained hereinabove are-true 24 and correct. 25 SECTION 2: The City Council of the City of Vernon hereby 26 approves the Amendment Number-Two to Employment Agreement ("Amendment 27 Two") with O'Callaghan, a copy of which is attached hereto as Exhibit 28 A and incorporated by reference. .The City hereby retains O'Callaghan 1 as the Director of Light.& Power, Director of the Gas Department and 2 the City Administrator on the terms and conditions contained in .the 3 Agreement, as amended, and compensation for said services. shall be 4 .paid pursuant to the Agreement, as amended. 5 SECTION 3: The City Council of the City of Vernon hereby 6 authorizes the Mayor or Mayor Pro-Tem to execute Amendment Two with 7 O'Callaghan for, and on behalf of, the_City of Vernon and the City 8 Clerk or Deputy City Clerk is hereby authorized to attest thereto.. 9 SECTION 4: The-City Council of the City of Vernon hereby 10 directs the City Clerk, or-her designee, to give one fully executed 11 Amendment Two to O'Callaghan. 12 SECTION 5: The City-Clerk of the City of Vernon shall 13 certify to the passage of this resolution, and thereupon and 14 thereafter the same shall be in full force and effect. 15 APPROVED AND ADOPTED this 11th day of May,, 20.09. 16 17 Hilario ' onzales Name: 18 Title: Mayor 19 ATTEST: 20 M NUELA GIRO , C -ty Clerk 21 22 23 24 25 26 27 28 2 - 1 STATE OF CALIFORNIA ) ss 2 COUNTY OF LOS ANGELES ) 3 4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby 5 certify that the foregoing Resolution, being Resolution No. .9943, was 6 duly adopted by the City Council of the City of Vernon at a regular ~ meeting of the City Council .duly held on Monday, May 11, 2009, and 8 thereafter was duly signed by the Mayor or Mayor. Pro-Tem of the City of 9 Vernon.- 10 11 MANUELA GI ON .City Clerk 12 13 (SEAL) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 - EXHIBIT A AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT THIS .AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT (the "Amendment No. Two") is entered into this 15th day of May, 2009, by and between the CITY OF VERNON, a municipal corporation, ("City") and DONAL O'CALLAGHAN; an individual ("O'Callaghan"), based on the following facts and circumstances: A. The City and O'Callaghan desire to amend the Employment Agreement (the "Agreement"), such that O'Callaghan shall now be the City Administrator, the Director of Light & Power and the Director of the Gas Department. Now, therefore, the parties agree as follows: 1. Effective Date and Defined Terms. The new Effective Date of the Agreement shall be May 15, 2009, and- all terms defined in the Agreement, as amended, shall have the same meanings for purposes of this Amendment No. Two, as they do in the Agreement, as amended. 2. City Administrator. O'Callaghan shall be employed in the capacity of City Administrator for all purposes of all sections of the Agreement, as amended. O'Callaghan shall perform the services of City Administrator of the City, at the will and pleasure of the City Council, and shall perform said duties under Sections 4.1 and 4.2 of the Agreement, as amended. .Should the City request O'Callaghan to cease performing the duties of City Administrator, O'Callaghan shall continue as the City's Director of Light & Power and Director of the. Gas Department, with all provisions of the Agreement, as amended, in full force and effect. 3. Integration. This Amendment No. Two and the Agreement, as amended, represent the entire agreements and understandings. between the parties, as set forth in Section 10 of the Agreement. Any inconsistencies between the Agreement, as amended, and Amendment No. Two shall be resolved by the language of Amendment No. Two controlling. In all other respects, the terms and conditions of the Agreement and the. amendments thereto shall remain in full force and effect. IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment No. Two, in the case of the City by its duly authorized representative, in duplicate, as of the day and year first above written. CITY OF VERNON a Municipal Corporation By: Hilario Gonzales Mayor ATTEST: By: Manuela Giron City Clerk Approved as to Form By: Jeff A. Harrison City Attorney By: Donal O'Callaghan _2_ j }4 ~ ~ i ~ . `r ~ ~ ~t { ~ 6,~ , L,i_ ; r . 4305 Santa Fe Avenue, Vernon; California 90058 Telephone (323) 583-8811 .May 12, 2009 Mr. Donal O'Callaghan City Administration 4305 Santa Fe Avenue Vernon, California 90058 Re: Amendment No. Two to Employment Agreement Dear Mr. O'Callaghan: Transmitted herewith is a fully executed Amendment No. Two to the employment agreement and a copy of Resolution No. 9943, approved by City Council on May 11, 2009. V ry truly yours, Y Nelly Gir n City Clerk NG:dj c: Resolution No. 9943 Agreement File No. 09-07.2 Ea~cCusiveCy IndustriaC 1 ~ AMENDMENT NUMBER TWO TO EMPLQYMENT AGREEMENT ? THIS AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT (the "Amendment No. Two") is entered into this 15th day of May, 2009, by and between the CITY OF VERNON, a municipal corporation, ("City") and DONAL O'CALLAGHAN, an individual ("O'Callaghan"), based on the following facts and circumstances: A. The City and O'Callaghan desire to amend the Employment Agreement (the "Agreement"), such that O'Callaghan shall now be the City Administrator, the Director of Light & Power and the Director of the Gas Department. Now, therefore, the parties agree as follows: 1. Effective Date and Defined Terms. The new Effective Date of the Agreement shall be May 15, 2009, and all terms defined in the Agreement, as amended, shall have the same meanings for purposes of this Amendment No. Two, as they do in the Agreement, as amended. 2. City Administrator. O'Callaghan shall be employed in the capacity of City Administrator for all purposes of all sections of the Agreement, as amended. O'Callaghan shall. perform the services of City Administrator of the City, at the will and pleasure of the City Council, and shall perform said duties under Sections 4.1 and 4.2 of the Agreement, as amended. Should the City request O'Callaghan to cease performing the duties of City Administrator, O'Callaghan shall continue as the City's Director of Light & Power and Director of the Gas . Department, with all provisions of the Agreement, as amended, in full force and effect. 3. Inte rag tion. This Amendment No. Two and the Agreement, as amended, represent the entire agreements and understandings between the parties, as set forth in Section 10 of the Agreement. Any inconsistencies between the Agreement, as amended, and Amendment No. Two shall be resolved by the language of Amendment No. Two controlling. In all other respects, the-terms and conditions of the Agreement and the amendments thereto shall remain in full force and effect. IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment No. Two; in the case of the City by its duly authorized representative, in duplicate, as of the day and year first above written. CITY OF VERNON a Municipal Corporation Hilario Gonzales Mayor ATTEST: By: ~!'V` Manuela Giron City Clerk Approved as to F m By: J . H ison ity Attorney Donal O'Callaghan -2- 4 uF VFk 01~~ ~y~es 'S'Q'L APPkOVED MAY ~ ~ Ci~1f C~U~ICib r I ~o~~o~o ~ ~ s Gs,Vf GY -IN~J - ~ITY LE~K DI IBUTION ~1?~0 STAFF- REPORT L~- ~ CITY ADMINISTRATION :DATE: -May 7, 2009 TO: Mayor and City Council FROM:. Eric Fresch, City Administrator RE: Appointment of New City Administrator I have been your City Administrator for a little over two years. In that time we have proposed to you and you have adopted various ordinances that reorganized the City's administrative structure. Your Department Heads now have the authority and responsibility to manage their respective departments. Various positions have been created to better manage. the City's needs and facilitate efficient communications with other governmental agencies, capital markets, the City's lenders, and Wall Street. The City's credit rating has been increased two levels to .the "A-3" category. We have structured the optimal-use of our Light & Povver resources, culminating in the City receiving nearly $400 million in proceeds from that asset restructuring. The City has paid off all of its nearly $300 million in project debt. And finally, the City has successfully restructured its natural gas supply to low interest long term debt. .Ironically,. I worked with the team representing the City accomplishing these objectives as an~attorney. Today, I am recommending to you to appoint Donal O' Callaghan, effective May 15th; 2009, as the administrative head of the City's government in the role of City Administrator. He can devote his entire time to the duties and interests of the City in this new role, as well as serving as the City's Director of Light & Pouver. I make these recommendations to the City at no additional economic cost for Donal's services. My own contract hourly rates for legal services also remain the same and as .always the amount of hours 1 work are subject to the City's request and approval Thank you for the privilege of serving this City: