Resolution No. 2010-116RESOLUTION NO. 2010-116
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AMENDMENT NUMBER THREE TO THE EMPLOYMENT AGREEMENT
BY AND BETWEEN THE CITY OF VERNON AND DONAL
O'CALLAGHAN
WHEREAS, on May 7, 2007, the City Council of the City of
Vernon adopted Resolution No. 9315 approving an Employment Agreement
with Donal O'Callaghan ("O'Callaghan")dated May 7, 2007; and
WHEREAS, the employment agreement was amended by Resolution
Nos.9890 and'9943 adopted on March 16, 2009 and May 11, 2009; and
WHEREAS, the City Council of the City of Vernon desires to
appoint O'Callaghan to serve as the Director of Light, Power and Gas
Capital Projects, amend the terms of the employment agreement and
supersede the terms of the amendments.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
approves Amendment Number Three to the Employment Agreement with
O'Callaghan, a copy of which is attached hereto as Exhibit A.
SECTION 2: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute Amendment Number
Three for, and on behalf of, the City of Vernon and the City Clerk, or
Deputy City Clerk, is hereby authorized to attest thereto.
SECTION 3:: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this Resolution, and
the City Clerk of the City of Vernon shall cause this Resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 16th day of August, 2010.
ATT T:
illard G. Y ry
ch', City Clerk
Name: N�t.nRl� �aN7/�LCS
Title. Mayor / 44a-y —Dr^
2
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-116, was duly passed, approved and adopted by the City Council
of the City of Vernon August 16, 2010, and thereafter was duly signed
by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this M day of August 2010, at Vernon,.California.
(SEAL)
i
Willard G. am g c City Clerk
- 3 -
r
EXHIBIT A
AMENDMENT NO. 3 TO THE EMPLOYMENT AGREEMENT BETWEEN DONAL
O'CALLAGHAN AND THE CITY OF VERNON
This Amendment No. 3 ("Amendment") is to that certain Employment Agreement
("Agreement"), dated May 7, 2007 and approved by City Council Resolution No. 9315 between
the City of Vernon ("Employer" or "City") and Donal O'Callaghan ("Employee"), a copy of
which is on file in the office of the City Clerk.
RECITALS
A. City and Employee entered into a written agreement, dated May 7, 2007,
describing the terms and conditions of Employee's employment with City as the City's Director
of Light and Power and the City's Director of the Gas Municipal Utility Department.
B. City and Employee previously agreed to Amendment No. 1 to the
Agreement, executed March 16, 2009, and approved pursuant to City Council Resolution
Number 9890; and to Amendment No. 2 to the Agreement, executed May 11, 2009, and
approved pursuant to City Council Resolution No. 9943.
C. City and Employee now desire to focus Employee's work on the capital
projects of the Light and Power and Gas Departments and limit employee's compensation to a
fixed salary without regard to hours worked in excess of 160 hours per month.
NOW, THEREFORE, the parties do amend the Agreement as follows:
Section 1. Section 1 of the Agreement is hereby amended in its entirety to read as
follows:
46
1. Employment. Effective August 2, 2010, Employee shall be
employed by the City as the Director of Light, Power and Gas Capital Projects
and in this capacity shall report directly to the City Council."
Section 2. Section 2 of the Agreement is hereby amended in its entirety to read as
follows:
"2. Term. Unless earlier terminated as provided in Section 8, this
Agreement shall terminate on May 14, 2012."
12720-0001\1252934v 1.doc
Section 3. Section 4 of the Agreement is hereby amended in its entirety to read as
follows:
"4. Salary. Effective August 1, 2010, Employer shall pay Employee a
salary of $32,000 (Thirty Two Thousand and No/100 Dollars) monthly, subject to
legally permissible or required withholding, prorated and paid on Employer's
normal paydays. Employee's salary is compensation for all hours worked.
Employee shall be exempt from the overtime pay provisions of California law (if
any) and federal law."
Section 4. Except as expressly amended by this Amendment No. 3, all of the provisions
of the Employment Agreement between the City and Employee shall be in full force and effect.
This Amendment shall supercede Amendment No. 1 to the Agreement and Amendment No. 2 to
the Agreement. Amendment Nos. 1 and 2 to the Agreement shall have no further force and
effect.
IN WITNESS WHEREOF, the Parties have signed this Agreement as of the 16th day of
August, 2010.
CITY OF VERNON, A CALIFORNIA EMPL
CHARTER CITY AND CALIFORNIA
MUNICIPAL CORPORATION By.
Name: Donal O'Callaghan
By:
HILARIO GONZALES
Mayor
ATTEST:
WILLARD G. YAMAGUCHI, City Clerk
APPROVED AS TO FORM:
LAURENCE S. WIENER, City Attorney
2
12720-000 1\ 1252934v l .doc
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
August 18, 2010
Mr. Donal O'Callaghan
Light & Power Department
4305 Santa Fe Avenue
Vernon, California 90058
Re: Amendment No. Three to Employment Agreement
Dear Mr. O'Ca ffaan7'�'�
Transmitted herewith is a fully executed Amendment No. Three to the employment agreement
and a copy of Resolution No. 2010-116, approved by City Council on August 16, 2010.
Very ly yours,
WILLARD G. GU
City Clerk
WGY:dj
Enclosure
c: Donal O'Callaghan
Martha Valenzuela
Resolution No. 2010-116
Agreement File No. 10-057
Excfusivefy Industriaf
AMENDMENT NO. 3 TO THE EMPLOYMENT AGREEMENT BETWEEN DONAL
O'CALLAGHAN AND THE CITY OF VERNON
This Amendment No. 3 ("Amendment") is to that certain Employment Agreement
("Agreement"), dated May 7, 2007 and approved by City Council Resolution No. 9315 between
the City of Vernon ("Employer" or "City") and Donal O'Callaghan ("Employee"), a copy of
which is on file in the office of the City Clerk.
RECITALS
A. City and Employee entered into a written agreement, dated May 7, 2007,
describing the terms and conditions of Employee's employment with City as the City's Director
of Light and Power and the City's Director of the Gas Municipal Utility Department.
B. City and Employee previously agreed to Amendment No. 1 to the
Agreement, executed March 16, 2009, and approved pursuant to City Council Resolution
Number 9890; and to Amendment No. 2 to the Agreement, executed May 11, 2009, and
approved pursuant to City Council Resolution No. 9943.
C. City and Employee now desire to focus Employee's work on the capital
projects of the Light and Power and Gas Departments and limit employee's compensation to a
fixed salary without regard to hours worked in excess of 160 hours per month.
NOW, THEREFORE, the parties do amend the Agreement as follows:
Section.l . Section 1. of the Agreement is hereby amended in its entirety to read as
follows:
641. Employment. Effective August 2, 2010, Employee shall be
employed by the City as the Director of Light, Power and Gas Capital Projects
and in this capacity shall report directly to the City Council."
Section 2. Section 2 of the Agreement is hereby amended in its entirety to read as
follows'
"2. Term. Unless earlier terminated as provided in Section 8, this
Agreement shall terminate on May 14, 2012."
12720-0001\1252934v Ldoc
Section 3. Section 4 of the Agreement is hereby amended in its entirety to read as
follows:
464. Salarv. Effective August 1, 2010, Employer shall pay Employee a
salary of $32,000 (Thirty Two Thousand and No/100 Dollars) monthly, subject to
legally permissible or required withholding, prorated and paid on Employer's
normal paydays. Employee's salary is compensation for all hours worked.
Employee shall be exempt from the overtime pay provisions of California law (if
any) and federal law."
Section 4. Except as expressly amended by this Amendment No. 3, all of the provisions
of the Employment Agreement between the City and Employee shall be in full force and effect.
This Amendment shall supercede Amendment No. I to the Agreement and Amendment No. 2 to
the Agreement. Amendment Nos. 1 and 2 to the Agreement shall have no further force and
effect.
IN WITNESS WHEREOF, the Parties have signed this Agreement as of the 16th day of
August, 2010:
CITY OF VERNON, A CALIFORNIA EMPLOY
CHARTER CITY AND CALIFORNIA
MUNICIPAL CORPORATION
Name: Donal O'Callaghan
By: �Ae, —
HILARIO GONZALES
Mayor
AT ST:
WILLARD G. U I City Clerk
APPR VED O FO
LAURENCE S. WIENER, City Attorney
2
12720-0001\1252934v1.doc
STAFF REPORT
ADMINISTRATION
DATE: August 12, 2010
TO Honorable Mayor and City Council
FROM: Mark Whitworth, Interim City Administrator
RE: Approval of Amendment No. 3 to Donal O'Callaghan's Employment
Agreement
Donal O'Callaghan originally joined the City's team as a consultant focusing on Light
and Power capital projects. Later, Mr. O'Callaghan entered into an employment
agreement with the City of Vernon on May 7, 2007. That agreement provided that Mr.
O'Callaghan would serve as the City's Director of Light and Power and Director of the
City's Gas Municipal Utility. In May 2009, the Agreement was amended to provide that
Mr. O'Callaghan would also serve as the City Administrator. On July 21, 2010, Mr.
O'Callaghan resigned the position of City Administrator to focus on his role as Director
of Light and Power. Since that time, I have discussed with Mr. O'Callaghan the best
manner in which he could serve the City. At the City Council's last meeting, the City
Council approved an agreement with Tara Energy, through which Mr. O'Callaghan
would again serve the City as a consultant and even more precisely focus his work on
the City's utility capital projects. That agreement has not been fully executed.
Furthermore, after additional examination of the City's needs going forward, and after
consultation with the City's advisors, I believe that it would be in the best interest of the
City, and most cost-effective, to keep Mr. O'Callaghan on staff, but revise his position to
focus on the City's utility capital projects:
As a consequence, I am recommending that Mr. O'Callaghan's employment agreement
be revised in three ways:
(1) Mr. O'Callaghan's contract would provide that, effective August 2, 2010, he would
hold the newly created position of Director of Light, Power and Gas Capital Projects.
(2) The contract would clarify that the term of the contract will end on May 14, 2012, the
end date of his current agreement. The revised contract would not contain an
evergreen clause.
(3) Mr. O'Callaghan would be paid the same base salary that he currently receives.
However, unlike his current contract, there would be no payment for hours worked in
excess of 160 hours per month.
Fiscal Impact
These revisions to Mr. O'Callaghan's contract, in combination with assigning the duties
of Interim City Administrator and Interim Director of Light and Power to others without
increasing the salaries of those who serve in the interim positions, should result in
substantial savings to the City.
Recommendation:
recommend that the City Council adopt a resolution approving Amendment No. 3 to
the employment agreement with Donal O'Callaghan
INTEROFFICE MEMORANDUM
CITY ADMINISTRATION DEPARTMENT
TO: Hilario Gonzales, Mayor
Michael McCormick, Mayor Pro Tem
William Davis, Councilman
Richard J. Maisano, Councilman
Daniel D. Newmire, Councilman p ��
1"�
FROM: Donal O'Callaghan, City Administrator
DATE July 20, 2010
It has been my pleasure to serve, in addition to my duties as Director of Light and Power, as City
Administrator for the City of Vernon for the past thirteen months. However, responsibilities and
duties inherent in these positions represent more than two full-time jobs, a situation that is
untenable for the long term.; As the new fiscal year begins, I believe that this is the right time for
me to refocus on and continue the management of the Light and Power Department and the
variousprojects that we are working on Therefore, this memo serves to inform you that I shall
no longer be serving as the City Administrator of the City of Vernon, effective close of business
Wednesday, July 21, 2010, I take this action so that I will be able to fully focus on my duties as
Director of Vernon's Light and Power Department.
I am very proud of the City's achievements over this past thirteen months since assuming the
added City Administrator duties. We have been successful in accomplishing the key goals I set
out, including 'important milestones and numerous improvements to our internal systems. Some
of these successes include:
• Ensuring a balanced budget for fiscal year 2010-2011, during an extremely difficult
economic climate
• Positioning the City to move forward towards sustainable General and Governmental
services
• Creating controls and tracking mechanisms for departmental managers to ensure sound
departmental financial management that will help ensure the City stays within its budget
• Streamlining City departments, and establishing new cost reductions, allowing the City to
do more with less, while still providing top-quality services to our businesses
• Managing the sale of over 12,700 acres of Vernon's wind farm property in Kern County,
which brought significant revenue to the City