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Resolution No. 2012-236RESOLUTION NO. 2012-236 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPOINTING WILLIAM F. FOX TO SERVE AS THE FINANCE DIRECTOR OF THE CITY OF VERNON AND APPROVING AND AUTHORIZING THE EXECUTION OF AN AT -WILL EMPLOYMENT AGREEMENT WHEREAS, per the good governance reforms recommended by Senator Kevin de Leon and the City's Reform Monitor John Van de Kamp the City retained the services of The Hawkins Company to recruit a Finance Director for the City of Vernon; and WHEREAS, The Hawkins Company created an executive recruitment brochure for the position (attached hereto as Exhibit A) and conducted a broad and extensive recruitment that included multiple screenings and interviews of numerous applicants; and WHEREAS, the City Council conducted final interviews of the three highest ranking candidates at a special City Council meeting on December 6, 2012; and WHEREAS, the City Council of the City of Vernon has determined William F. Fox ("Fox") to be the most qualified candidate for the position and desires to appoint Fox to serve as the Finance Director, effective December 21, 2012, subject to approval of an At -Will Employment Agreement. 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 finds and determines that the above recitals are true and correct, SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA), in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3: The City Council of the City of Vernon hereby appoints William F. Fox to serve as the Finance Director of the City of Vernon, effective December 21, 2012. SECTION 4: The City Council of the City of Vernon hereby approves the At -Will Employment Agreement with Fox, in substantially the same form as the copy which is attached hereto as Exhibit B. SECTION 5: The City.Council of the City of Vernon hereby authorizes the City Administrator to execute said Agreement for, and on behalf of, the City of Vernon and the Interim City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 6: The City Council of the City of Vernon hereby directs the Interim City Clerk, or the Interim City Clerk's designee, to give a fully executed Agreement to Fox. SECTION 7: The Interim City Clerk, or any authorized officer, shall administer the Oath of Office prescribed in the Constitution of the State of California to Fox and shall have him subscribe to it and file it with the Human Resources Department. - 2 - SECTION 8: The Interim City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the Interim City Clerk of the City of Vernon shall cause this resolution and the Interim City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 18th day of. December, 2012. Name: William J. Davis Title: Mayor / ATTE T : � 11 Da ed, Interim City Clerk _3_ STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, Dana Reed, Interim City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No..2012-236, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, December 18, 2012, and thereafter was duly signed by the Mayor or Mayor Pro- e of the City of Vernon. Executed this day of Decemb r, 2012, at Vernon, California. (S EAL ) U�IId n(--(--ez, L11Ler1m �-Lty uLerx - 4 - EXHIBIT A The City of Vernon Aqlk-p- up'StROW' Now AY' ttrF i I Welcome To The City of Vernon The City of Vernon is an industrial city of 5.2 square miles located several miles to the southeast of Downtown Los Angeles in Southern California. Vernon currently houses more than 1,800 businesses that employ approximately 55,000 people, serving as a vital economic engine in the region. Offering an environment uniquely friendly to business, Vernon is the home to industries including food and agriculture, apparel, steel, plastics, logistics and home furnishings. Vernon maintains strong philanthropic ties with the neighboring communities where much of its workforce lives, providing significant financial support for public services like education and recreation. Vernon has maintained its focus on providing a favorable environment for business and remains an ideal location for industry. Vernon's city government is one of the most business -friendly in the region. With some of the lowest taxes of any city in the state, Vernon is able to offer an array of city services tailored to meet the needs of its business community. Vernon is just one of 25 cities in the United States with a Class 1-rated fire department and one of four cities in California with its own health department, which specializes in industrial issues. The city's businesses receive very low rates for water, electricity, gas and fiber optics as a result of Vernon's independent utilities. Over the years, Vernon has made substantial infrastructure investments within the city to successfully attract and retain business. Although Vernon has a modest residential population, the City is proud to be a significant employer and to provide critical public safety services to the region. Vernon is committed to being a good neighbor, helping residents throughout the area thrive. After more than 100 years Vernon has more than realized the vision laid out by its founders of a city that could serve as a focal point for commerce and an economic engine for thesurrounding region. In 2008, Vernon was named Los Angeles County's "Most Business Friendly City" for communities with less than 50,000 residents by the.L.A. County Economic Development Corporation. City Government -Vernon was incorporated in 1905 and became a charter city in 1988. The City is governed by a five -member city council elected to five year terms on a staggered annual basis. The City recently voted to limit council members to two five-year terms. The Council elects from its membership a Mayor and a Mayor Pro-Tem, who serve one year terms. The Council appoints the City Administrator and City Attorney. The City Administrator is responsible for the day to day management of the city. The City of Vernon is a full -service city and employs 278 individuals with a current annual budget of nearly $323 million. The Department The City of Vernon's Finance Department provides fiscal management services including treasury, budgeting, accounting and financial reporting for the city. In addition to the finance activities, the department also directs the city's purchasing functions. The goal of the Finance Department is to provide "best in class" financial management services to support the City's mission of delivering quality services to the businesses and residents of Vernon. Key goals include developing and administering the City's budget; ensuring sound fiscal management practices are developed, implemented, and monitored; managing the treasury functions to ensure sound investments, cash management, and debt issuance activities are conducted in a fiscally prudent manner to enhance and protect the assets of the city. The Finance Director's leadership team consists of an Assistant Finance Director, Deputy City Treasurer, and Director of Business Services and Purchasing. The operating budget for the department is approximately $2 million. The Position The Finance Director is appointed by the City Council and reports to the Council through the City Administrator. The position is responsible for leading the City's fiscal management functions, programs and staff. As a member of the City's senior leadership team, the Finance Director is a key advisor to the Mayor and Council, City Administrator and department directors on fiscal matters and has primary responsibility for providing overall strategic and financial leadership to the City Council, and maintaining the fiscal well-being and integrity of the City. Working collaboratively with the City Administrator, the Finance Director recommends and implements fiscal strategies and programs to meet the needs of the city in accordance with Federal, State and local laws and regulations, and generally accepted accounting and fiscal management principles and practices. SPECIFIC DUTIES INCLUDE: In partnership with other members of the City,,, managoinent team, the Finance Director provides leadership and direction in the identification, development and implementation of City-wide strategic financial plans, goals and objectives; par-ti'cipotes in monitoring and evaluating progress in achieving strategic plans, goals and objectives; coordinates financial and budget planning and other related policy issues with other depc:titments and on a City-wide basis. Plans, organizes, controls, manages and evc:luales the functions of the Finance department; along with managers and staff, participates in establishing operational plans and initiatives 10 meet city and departi-nent goals and objectives; implements departmental plans, work programs, processos, procedures and policies required to achieve overall department performance results; coordinates and integrates deparinrem functions and responsibilities to achieve optimal efficiency and effectiveness; prepares and administers Department's annual budget; Provides leadership and works with manaotnrs arrd staff to develop and maintain a high performing, customer service - oriented wort: environment that support; .achieving the City's mission, strategic goals and core values, Flans and evaluates the performance of assigned rnanagots and staff; est.iblishes i:>erformance requirements and personal development targets; monitors performance and provides coaching for performance improvernent and development, provides or recommends compensation and other rewards to recor) .nizc performance; takes performance management action as needed; and builds a cohesive team of highly motivated and IiAnod employees. Manages, directs and evaluates the City,, financial services, including general, utility, and project ,accounting, revenue collections, payroll and related accountin<r �:ciivitics; directs and participates in financial analysis and reporting functions including grant funding and reporting; analyzes the City's financial condition and implements plans to ensure financial perfonrrance meets established targets; ensures that all regulatory reportinc3 requirements are met and that reports to lederal, state, regional and k:-cal agencies are accurate, clear, complete and comprehensive; oversees and participates in the development of complex finandol analyses and forecasts required for City Council decision-real,-Jng, coordinates and oversees the development of the annual audit ,.ind CAFR report, including addressing audit findings and opportunities for improved fiscal management; and prepaares p,.:�r iodicfinancial reports for the City Council, City Administrator; and department heads. Manages and p.-irticipates in development and administration of tile City'sannuarl and capital budgets; prepares and delivers budget presentations to the City Council; monitors the City's performance against budcto and takes and/or makes recommendations for corrective action to meet budget expenditure targets; identifies polential financial, budgetary and other issues that could result in serious problems for the City and recommends appropriate courses of action; administers and participates in performing treasury service; and the investment of city funds in accordance will, the City Cc.-uncil's investment policies. Provides mantx.iement direction and support in the preparation and coordin.;tion of utility financings, rate setting/analysis and tax activities for the• City; develops and monitors the preparation of complex financial studies; develops and monitors short and long range financlA plans to ensure city assets are safeguarded and appropriately invested, and develops and in-iplements financial cons rols. • Reviews proposed legislation and regulatory changes for irnpacts orr City operations and funding in areas of responsibility; prepares position papers to protect City interests; and collaborates with other siakehold is in seeking changes to legislration or regulation. • Represents i w City and maintains good relationships with other governmental entities, business and comnuanity organizations, and the guner:l public on fiscal matters of importance to the future growth and stability of the City of Vernon. • Keeps obrerisl of current principles and practices of affective municipal fiscal management including complex utilityfinancings, revenue enhancements, and cost controls. • Directs the City's purchasing activities to ensure best practices are achieved and that open and competitive bidding and contracting are fair and transparent. Attends various City Council, staff and community meetings as required; participates on internal and external committees, boards, and task forces, as appropriate. • Serves as City's key financial spokesperson; and performs other duties as needed and/or assigned. Key Priorities • Conduct a comprehensive organizational assessment of the City's finance and treasury functions and reporting relationships covering all activities, programs, systems, and practices to identify, recommend, and implement changes aimed at building a comprehensive, cost effective and highly responsible finance department. • Develop, enhance, recommend, and implement appropriate city- wide fiscal management and budgeting policies, procedures and systems that ensure consistency, fairness in application, and adherence to Federal and State,- and City of Vernon's rules and regulations. • Review, develop, and recommend to the City Administrator and City Council revenue programs and policies to ensure equitable cost sharing among businesses operating in the City of Vernon. Qualifications Candidates must possess a track record of demonstrated leadership, proven accomplishments and superior performance in a private and/ or public utility, municipal enterprise or a closely related organization with the primary responsibility for managing the financial and treasury functions including budgeting, accounting and finance; bond and utility financings; revenue enhancements; cash management; and financial planning and reporting. A Bachelor's Degree in finance or accounting, public or business administration, or closely related field is required. A Master's Degree and/or CPA are preferred. Experience must include at least 10 years of increasingly responsible leadership and managerial experience in finance, accounting and treasury in a complex organization with numerous stakeholders and intense regulatory oversight. At least five years must include responsibility for a financial management function. The ideal candidate will possess: • A strong fiscal management background including experience in utility financings, rate setting, enterprise fund accounting, capital project budgeting and financing, and experience dealing with complex fiscal issues, preferably in a municipal organization; • Knowledge of principles and practices of general, fund and governmental accounting; principles and practices of public agency budgeting,- principles and practices of public agency capital financing; and knowledge of GAAP and GFOA accounting standards and requirements; • Excellent professional judgment and decision -making ability; • Knowledge of municipal financial best practices, laws and regulations; • Ability to build a team of committed and high skilled employees; • Exceptional interpersonal and communications skills (verbal and written); strong presentation skills; • Flexible, open, approachable leadership style; sense of urgency; • Ability to disagree and still maintain positive working relationships; • Strong problem solving skills and a record of successfully implementing organizational change; • Ability to manage complex projects involving multi -teams and requiring coordination and collaboration with external agencies and high level executive managers; • Willingness to take risks to advance organizational objectives; • Excellent analytical skills; • Political astuteness/awareness; • Ability to respond to issues quickly and make sound decisions and recommendations; • Ability to see the big picture; • Results oriented and strong customer service focus; • "Hands-on," practical approach with a willingness to be visible and interact with employees at all levels; • Strong integrity, honesty, confidentiality and demonstrated ability to effectively manage sensitive situations. Compensation The City offers an excellent compensation and benefits package. The salary is open depending on qualifications. City benefits include: 4/10workschedule (Monday -Thursday, 7:00 am- 5:30pm); 8 days paid vacation; 11 holidays; a monthly allowance is provided by the City toward employee and dependent medical, dental, vision coverage; basic life insurance coverage is paid by the City; optional Section 125 IRS Plan for reimbursement of Dependant Care and Medical costs; CAPERS 2.7% @ 55, 8%employee contribution; 457 deferred compensation plan, no city match; and tuition reimbursement up to $2,200 per fiscal year. Selection Process The Finance Director recruitment is being conducted on a national basis. All written materials received will be screened and evaluated by Bill Hawkins and/or Brett Byers of The Hawkins Company. The most highly qualified candidates will be invited to complete a supplemental application and participate in an on -site selection process. How To Apply Submit a letter of interest and resume by October 12, 2012, electronically to Mr. Bill Hawkins at bill@thehawkinscompanycom or Ms. Brett Byers at brett®thehawkinscompany.com. Additionally material can be mailed to: William D. Hawkins The Hawkins Company 11040 Bollinger Canyon Road, Suite E-216 San Ramon, CA 94582 THIS HAWKINS 310-348-8800 COMPANY - www.thehawkinscompany.com For additional information or questions, please contact Brett Byers at 323-403-8279 or Bill Hawkins at 310-348-8800. EXHIBIT B AT -WILL EMPLOYMENT AGREEMENT BETWEEN THE CITY OF VERNON AND WILLIAM F. FOX THIS AGREEMENT is between the City of Vernon ("City") and William F. Fox ("Employee"). Recitals City desires to employ Employee as an at -will employee in the position of Director of Finance. Employee desires to be the Director of Finance and acknowledges that such employment is at -will. The City Administrator, pursuant to the authority granted by the City of Vernon Charter and City Council, agrees to hire employee, as an at -will employee, subject to the terms and conditions identified below. AGREEMENT Section 1: TERM The term of this Agreement shall be from December 21, 2012, to and through December 21, 2015, unless earlier terminated by either party pursuant to the provisions of this Agreement. Employee is an at -will employee and may be terminated, with or without cause, and with or without notice, at any time by the City Administrator. Employee may resign at any time. Section 2: DUTIES A. City engages Employee as the Director of Finance to perform the functions and duties specified in the job description for the position (Attachment "A", incorporated here by this reference), as the same may be modified by the City Administrator, from time to time, and to perform such other legally permissible and proper duties and functions as the City Administrator shall, from time to time, assign. B. Employee agrees that to the best of his/her ability and experience that he/she will at all times conscientiously perform the duties and obligations required, either express or implied, by the terms of this Agreement, the ordinances, resolutions and adopted policies of the .City of Vernon and the laws and regulations of the State of California and the United States. C. As a public employee, Employee is required to work a full and complete work week pursuant to the established work schedule as determined by the City Administrator, and devote whatever time is necessary to fulfill the employment responsibilities and duties as' identified in this Agreement. D. During the term of this Agreement, Employee is required to have and maintain a valid California Driver's license. E. Employee acknowledges that in connection with the performance of his/her duties, he/she will obtain information from City employees and third parties that is of a confidential nature. Employee agrees that he/she will not disclose such confidential information other than to officers and employees of the City who have been authorized to have access to such information. Employee further agrees that if he/she has a question as to the confidentiality of information obtained in the course of his/her employment; he/she will contact the City Administrator for advice. Section 3: EXCLUSIVE EMPLOYMENT Employee agrees to focus his/her professional time, ability and attention to City business during the term of this Agreement. Consequently, Employee agrees not to engage in any other business pursuits, whatsoever, directly or indirectly, render any services of a business, commercial, or professional nature to any other person or organization, for compensation, without the prior written consent of the City Administrator. This does not preclude Employee from volunteering his/her services to other entities or individuals as long as such volunteer services are not in conflict with the services to be provided by Employee under this Agreement. Section 4: COMPENSATION As compensation for the services to be rendered by Employee, City agrees to pay Employee a base starting salary of no less than $210,000, per year, payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding. Increases, if any, in Employee's salary during the term of this Agreement shall be at the sole discretion of the City Administrator based upon the City Administrator's evaluation of Employee's job performance and within the base salary range established by the City Council or as otherwise approved by the City Council. Section 5: PERFORMANCE REVIEWS AND MERIT ADJUSTMENTS Annually, or more frequently at the discretion of the City Administrator, the City Administrator will define goals and performance objectives for Employee. Said goals and objectives will be placed in writing and used to evaluate the performance of Employee. Employee will receive an evaluation six months from the hire date established in this Agreement and annual reviews thereafter by the City Administrator. The City Administrator may conduct more frequent evaluations in his/her discretion. Based on these performance evaluations, the Employee may, at the discretion of the City Administrator, receive a salary adjustment (Merit increase) based on the Employee's performance, as evaluated by the City Administrator. Section 6: BENEFITS A. Retirement As.an employee of the City of Vernon, Employee will be enrolled in the California Public Employees Retirement System (PERS) retirement plan, as such plan may be amended by the City Council As of the date of this employment agreement, such plan includes the 2.7% @ 55 benefit formula for miscellaneous employees. The employee pays 8% for the employee contribution to PERS.. B. Other Executive Management benefits Employee shall receive all benefits specified by the then current Resolutions of the City Council of Vernon for Executive Management Staff, including, without limitation, those related to 2 Vacation, Administrative Leave, Holidays, Sick Leave, Medical and Dental Insurance, Flexible Benefits Plans, Vision Care, Other Leaves, and Deferred Compensation. Section 7: TERMINATION AND SEVERANCE PAY A. Employee is an at -will employee and serves at the will and pleasure of the City Administrator and may be terminated at any time, without cause, subject to the conditions of paragraphs B and C of this section. B. In the event that Employee is terminated by the City Administrator for reasons other than physical or mental incapacity, and other than those reasons noted in E, below, the City agrees to pay the employee a severance package equal to six (6) months of base salary. C. To be eligible for severance pay, as identified in paragraph B, of this section, Employee shall fulfill all of his obligations under this Agreement and shall sign acknowledgment and release of claims against the City. Such acknowledgement and release appears as Attachment "B" to this Agreement. D. All severance payments shall be paid within thirty (30) calendar days of the last date of employment. E. Notwithstanding paragraphs A, B and C, above, if Employee is terminated due to retirement, insubordination, incapacity, dereliction of duty, addiction to a controlled substance or alcohol conviction of a crime involving moral turpitude or involving personal gain to him or abuse of his office or position or any felony or for a breach of this Agreement, City shall have no obligation to pay any severance provided in this section. Furthermore, F. At termination, Employee shall be paid for all earned, but unused, vacation time. Section 8: EXECUTIVE COMPENSATION LIMITATIONS If Employee is paid leave salary during a pending investigation, any salary provided for that purpose shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his office or position. If Employee is provided funds for any legal criminal defense during his employment with the City, any funds provided for that purpose shall be fully reimbursed to the City if the Employee is convicted of a crime involving an abuse of his office or position. If this Agreement is terminated, any cash settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his office or position. Section 9: RESIGNATION / RETIREMENT Employee may resign at any time. Employee may retire, provided he/she is eligible for retirement, at any time. Employee agrees to provide. thirty (30) calendar days advance written notice of the effective date of his/her resignation or retirement. In the event Employee retires or resigns, Employee shall be entitled to payment for earned, but unused, vacation time, but not to severance pay as delineated in Section 7, paragraph B, above. 3 Section 10: DISABILITY If Employee is permanently disabled or otherwise unable to perform his/her duties because of sickness, accident, injury, mental incapacity or health for a period of thirty (30) calendar days beyond any earned sick leave, City shall have the option to terminate this Agreement; however, the City's option to terminate under this Section shall be limited by its obligation to engage in the interactive process for reasonable accommodations and to provide reasonable accommodations as required by law. Nothing in this Section shall be construed to limit or restrict Employee's benefits or rights under workers' compensation or the Public Employees Retirement System (°PERS") and However, an employee terminated under this section is not eligible for severance pay, as delineated in Section 8 of this Agreement. In cases of disability, Employee shall be compensated for any earned, but unused, vacation leave. Section 11: GENERAL PROVISIONS A. Notice Any notices required by this Agreement shall be in writing and either delivered in person or by first class, certified, return receipt requested US Mail with postage prepaid. Such notice shall be addressed as follows: TO CITY: City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 TO EMPLOYEE: William F. Fox B Entire Agreement The text of this Agreement shall constitute the entire and exclusive agreement between the parties: All prior oral or written communications understanding or agreements between the parties, not set forth herein, shall be superseded in total by this Agreement. No Amendment or modification to this Agreement may be made except by a written agreement signed by the Employee and the City Administrator and approved as to form by the City Attorney. C Assignment This Agreement is not assignable by either the City or Employee. D Severability In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of this Agreement shall 4 remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portions of this Agreement. E. Effect of Waiver The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions in this Agreement by the other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other time or times. F. Jurisdiction Any action to interpret or enforce the terms of this Agreement shall be held exclusively in a state court in Los Angeles County, California. Employee expressly waives any right to remove any such action from Los Angeles County. G. Effective Date This Agreement shall not become effective until it has been signed by Employee, and approved by the City Administrator. [Signatures Begin on Next Page]. 5 IN WITNESS WHEREOF, the City of Vernon has caused this Agreement to be signed and executed in its behalf by its City Administrator, and executed by,the Employee. City of Vernon, a California charter City and California municipal corporation Dated: By: Mark Whitworth, City Administrator ATTEST: Dana Reed, Interim City Clerk Approved as to form: Nicholas George Rodriguez, City Attorney R In signing this Agreement, Employee understands and agrees that his/her employment status is that of an at -will employee and that his/her rights to employment with the City are governed by the terms and conditions of this Agreement rather than the ordinances, resolutions, and policies of the City of Vernon which might otherwise apply to employees of the City. Employee further acknowledges that he was given the opportunity to consult with an attorney prior to signing this Agreement. Dated: F Signed: William F. Fox ATTACHMENT A Job Description Duties may include, but are not limited to, the following: • In partnership with other members of the City's management team, the Finance Director provides leadership and direction in the identification, development and implementation of City-wide strategic financial plans, goals and objectives; participates In monitoring and evaluating progress in achieving strategic plans, goals and objectives; coordinates financial and budget planning and other related policy issues with other departments and on a City-wide basis. • Plans, organizes, controls, manages and evaluates the functions of the Finance department; along with managers and staff, participates in establishing operational plans and initiatives to meet city and department goals and objectives; implements departmental plans, work programs, processes, procedures and policies required to achieve overall department performance results; coordinates and integrates department functions and responsibilities to achieve optimal efficiency and effectiveness; prepares and administers Department's annual budget. • Provides leadership and works with managers and staff to develop and maintain a high performing, customer service oriented work environment that supports achieving the City's mission, strategic goals and core values; plans and evaluates the performance of assigned managers and staff; establishes performance requirements and personal development targets; monitors performance and provides coaching for performance improvement and development; provides or recommends compensation and other rewards to recognize performance; takes performance management action as needed; and builds a cohesive team of highly motivated and trained employees. • Manages, directs and evaluates the City's financial services, including general, utility, and project accounting, revenue collections, payroll and related accounting activities; directs and participates in financial analysis and reporting functions including grant funding and reporting; analyzes the City's financial condition and implements plans to ensure financial performance meets established targets; ensures that all regulatory reporting requirements are met and that reports to federal, state, regional and local agencies are accurate, clear, complete and comprehensive; oversees and participates in the development of complex financial analyses and forecasts required for City Council decision -making; coordinates and oversees the development of the annual audit and CAFR report, including addressing audit findings and opportunities for improved fiscal management; and prepares periodic financial reports for the City Council, City Administrator, and department heads. Manages and participates in development and administration of the City's annual and capital budgets; prepares and delivers budget presentations to the City Council; monitors the City's performance against budget and takes and/or makes recommendations for corrective action to meet budget expenditure targets; identifies potential financial, budgetary and other issues that could result in serious problems for the City and recommends appropriate courses of action; administers and participates in performing treasury services and the investment of city funds in accordance with the City Council's investment policies. • Provides management direction and support in the preparation and coordination of utility financings, rate setting/analysis and tax activities for the City; develops and monitors the preparation of complex financial studies: develops and monitors short and long range financial plans to ensure city assets are safeguarded and appropriately invested; and develops and implements financial controls. • Reviews proposed legislation and regulatory changes for impacts on City operations and funding in areas of responsibility; prepares position papers to protect City interests; and collaborates with other stakeholders in seeking changes to legislation or regulation. • Represents the City and maintains good relationships with other governmental entities, business and community organizations, and the general public on fiscal matters of importance to the future growth and stability of the City of Vernon •Keeps abreast of current principles and practices of effective municipal fiscal management including complex utility financings, revenue enhancements, and cost controls. • Directs the City's purchasing activities to ensure best practices are achieved and that open and competitive bidding and contracting are fair and transparent. • Attends various City Council, staff and community meetings as required; - participates on internal and external committees, boards, and task forces, as appropriate. • Serves as City's key financial spokesperson; and performs other duties as needed and/or assigned. 9 ATTACHMENT B ACKNOWLEDGEMENT AND RELEASE This is to confirm that on this date I have received severance pay in the amount of $ pursuant to my employment agreement with the City of Vernon. I acknowledge that, in accepting such severance pay, I am releasing the City, its employees, officers and agents, from any and all claims of any kind or nature I had or may have had against the City arising from my employment with the City, including but without limitation, age discrimination claims under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act. I further acknowledge that this Acknowledgment and Release releases the City from and waivers any claims I may have against the City, its employees, officers and agents, stemming from my employment relationship, including the severance thereof, to the fullest extent permissible under the law. I further acknowledge that this waiver extends to all claims, known and unknown, relative to my employment with and cessation of my employment with the City. I specifically waive the application of Civil Code §1542, which provides: A general release does not extent to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him/her must have materially affected his/her settlement with the debtor. .I have had the opportunity to consult with legal counsel relative to this Acknowledgement and Release, and I had a reasonable period of time within which to consider signing this Acknowledgement and Release. I have signed this Acknowledgement and Release voluntarily and willingly. Dated: 10 William F. Fox 'i3 3 K /y �£ l?jAl askIR 16'�F' 7 t 'df 6rpaFS OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 December 19, 2012 William F. Fox 351 Foothill -Will Employment Agreement Dear Mr. Fox: Transmitted herewith is an original fully executed employment agreement, approved through Resolution No. 2012-236, approved by City Council on December 18, 2012. If you have any questions regarding this matter, please call Mr. Mark Whitworth at (323) 583- 8811 ext. 398. Very truly yours, Xt � eborahR. Juarez Records Management Assistant Enclosure c: Joaquin Leon Teresa McAllister Mark Whitworth Resolution No. 2012-236 Agreement File No. 12-128 E fusivefy IndustriaC AT -WILL EMPLOYMENT AGREEMENT BETWEEN THE CITY OF VERNON AND WILLIAM F. FOX THIS AGREEMENT is between the City of Vernon ("City") and William F. Fox ("Employee"). Recitals City desires to employ Employee as an at -will employee in the position of Director of Finance.. Employee desires to be the Director of Finance and acknowledges thatsuch employment is at -will The City Administrator, pursuant to the authority granted by the City of Vernon Charter and City Council, agrees to hire employee, as an at -will employee, subject to the terms and conditions identified below. AGREEMENT Section 1: TERM The term of this Agreement shall be from December 21, 2012, to and through December 21; 2015, unless earlier terminated by either party pursuant to the provisions of this Agreement. Employee is an at -will employee and may be terminated, with or without cause; and with or without notice, at any time by the City Administrator. Employee may resign.with thirty (30) days advance notice as set forth in Section 9 below. Section 2: DUTIES A. City engages Employee as the Director of Finance to perform the functions and duties specified in the job description for the position (Attachment "A", incorporated here by this reference), as the same may be modified by the City. Administrator, from time to time, and to perform such other legally permissible and proper duties and. functions. as the City Administrator . -shall, from time to time, assign. B. Employee agrees that to the best of his ability and experience that he will at all times conscientiously perform the duties and obligations required, either express or implied, by the terms of this Agreement, the ordinances, resolutions and adopted policies of the City of Vernon and the laws and regulations of the State of California and the United States. C. As a public employee, Employee is required to work a full and complete work -week pursuant to the established work schedule as determined by the City Administrator, and devote whatever time is necessary to fulfill the employment responsibilities and duties as identified in this Agreement. D. During the term of this Agreement, Employee is required to have and maintain a valid California Driver's license. E. Employee acknowledges that in connection with the performance of his duties, he will obtain information from City employees and third parties that is of a confidential nature. Employee agrees that he will not disclose such confidential information other than to officers and employees of the City who have been authorized to have access to such information. Employee further agrees that if he has a question as to the confidentiality of information obtained in the course of his employment; he will contact the City Administrator for advice: Section 3: EXCLUSIVE EMPLOYMENT Employee agrees. to focus his professional. time, ability and attention to City business during the term of this Agreement. Consequently, Employee agrees not to engage in any other business pursuits, whatsoever, directly or indirectly; render any services of a business, commercial, or professional nature to any other person or organization, for compensation, without the prior written consent of the City. Administrator. This. does not preclude Employee from volunteering his services to other entities or individuals as long as such volunteer services are not in conflict with the services to be provided by Employee under this Agreement: Section 4: COMPENSATION As compensation for the services to be rendered by Employee, City agrees to pay Employee a base starting salary of no less than $210,000, per year, payable in twenty-six (26) biweekly installments at the same time.as other employees of the City are. paid and subject to customary withholding.. Increases, if any, in Employee's salary during the term of this Agreement shall be at the sole discretion of the City Administrator based upon the City Administrator's evaluation of Employee's job performance and within the base salary range established by the City Council or as otherwise approved by the City Council. Employee's salary shall be reflected in the City's publicly available salary schedule. Section'5: PERFORMANCE REVIEWS AND MERIT ADJUSTMENTS' Annually, or more frequently at the discretion of the City Administrator, the City Administrator will define goals and performance objectives for Employee. Said goals and objectives will be placed in writing and used to evaluate the performance of Employee. Employee will receive an evaluation six months from the.hire date established in this Agreement and annual reviews thereafter by the City Administrator. The City Administrator may conduct more frequent evaluations in his discretion. Based on these performance evaluations, the Employee may, at the discretion of the City Administrator, receive a salaryadjustment(Merit increase) based on the Employee's performance, as evaluated by the City Administrator. Section 6: BENEFITS A. Retirement As an employee of the City of Vernon, Employee will be enrolled in the California Public Employees Retirement System (PERS) retirement plan, as such plan may be amended by the City Council. As of the date of this employment agreement, such plan includes the 2.7% @ 55 benefit formula for miscellaneous employees. The employee pays 9% for the employee contribution to PERS. B. Other Executive Management benefits Employee shall receive all benefits specified by the then current Resolutions of the City Council of Vernon for Executive Management Staff, including, without limitation, those related to 2 Vacation, Administrative Leave, Holidays; Sick Leave, Medical and Dental Insurance, Flexible Benefits Plans, Vision Care, Other Leaves, and Deferred Compensation: Section 7: TERMINATION AND SEVERANCE PAY A. Employee is an at -will employee and serves at the will and pleasure of the City Administrator and may be terminated at any time, without cause, subject to the conditions of paragraphs B and C of this section. B. In the event that Employee is terminated by the City Administrator for reasons other than.physical or mental incapacity; and other than those reasons noted in E, below; the City agrees to pay the employee a severance package equal to six (6) months of base salary. C. To be eligible for severance pay, as identified in paragraph B, of this section; Employee shall fulfill all of his obligations under this Agreement and shall sign acknowledgment and release of claims against the City. Such acknowledgement and release appears as. Attachment "B" to this Agreement. D. All severance payments shall be paid within thirty (30) calendar days of the date Employee executes the acknowledgement and release of claims against the City. E. Notwithstanding paragraphs A, B and C, above, if Employee is terminated due to retirement, insubordination, incapacity, dereliction of duty, addiction to a controlled. substance or alcohol, conviction of a crime involving moral turpitude or involving personal gain to him or abuse of his office or position or any felony or for a breach of this Agreement, City shall have no obligation to pay any severance provided in this section. Furthermore, Employee agrees that anyseverance provided shall be fully reimbursed to the City if the Employee is convicted of a crime involving an abuse_ of his office or position. F. At termination, Employee shall be paid for all earned, but unused, vacation time: Section 8: EXECUTIVE COMPENSATION LIMITATIONS If Employee is paid leave salary during a pending investigation, any salary provided for that purpose shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his office or position. If Employee is provided funds for any legal criminal defense during his employment with the City, any funds provided for that purpose shall be fully reimbursed to the City if the Employee is convicted of a crime involving an abuse of his office or position. If this Agreement is terminated, any Cash Settlement related to the termination that Employee may receive from the City shall be fully reimbursed to the City if Employee is convicted of a crime involving an abuse of his.office or position. Section 9: RESIGNATION / RETIREMENT Employee may resign at any time. Employee may retire, provided he is eligible for retirement, at any time. . Employee agrees to provide thirty (30) calendar days advance written notice of the effective date of his resignation or retirement; In the event Employee retires or resigns, Employee shall be entitled to payment for earned, but unused, vacation time; but not to severance pay as delineated in Section 7, paragraph B, above. 3 Section 10: DISABILITY If Employee is permanently disabled or otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a period of thirty (30) calendar days beyond any earned sick leave, City shall have the option to terminate this Agreement; however, the City's option to terminate under this Section shall be limited by its obligation to engage in the interactive process for reasonable accommodations and to provide reasonable accommodations as required by. law. Nothing in this Section shall be construed to limit or restrict Employee's benefits or rights under workers' compensation or the Public Employees Retirement System ("PERS») However, an employee terminated under this section is not eligible for severance pay, as delineated in Section 8 of this Agreement: In of disability, Employee shall be compensated for any earned, but unused, vacation leave: Section 11: GENERAL PROVISIONS A. Notice Any notices required by this Agreement shall be in writing and either delivered in person or by first class, certified, return receipt, requested US Mail with postage prepaid. Such notice shall be addressed as follows: TO CITY: City Administrator City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 TO EMPLOYEE: William F. Fox B Entire Agreement The text of this Agreement shall constitute the entire and exclusive agreement between the parties. All prior oral or written communications understanding or agreements between the parties, not set forth herein, shall be superseded in total by this Agreement. No Amendment or - modification to this Agreement may be made except by a written agreement signed by the Employee and the City Administrator and approved as to form by the City Attorney. C Assignment This Agreement is not assignable by either the City or Employee: D Severability In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of this Agreement shall 4 remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portions of this Agreement E. Effect of Waiver The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions in this Agreement by the other party shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other time or times F. Jurisdiction Any action to interpret or enforce the terms of this Agreement shall be exclusively in a state court in Los Angeles County, California.. Employee expressly waives any right to remove any such action from Los Angeles County. G. Effective Date 5 IN WITNESS WHEREOF, the City of Vernon has caused this Agreement to be signed and executed in its behalf by its City Administrator, and executed by the Employee. 6 In signing this Agreement;. Employee understands and agrees that his employment status is that of an at -will employee and that his rights to employment with the City are governed by the terms and conditions of this Agreement rather than the ordinances, resolutions, and policies of the City of Vernon which might. otherwise apply to employees of the City. Employee further acknowledges that he was given the Opportunity to consult With an attorney prior to signing this .Agreement. 7 ATTACHMENT A Job Description Duties may include, but are not limited to, the following: • In partnership with other members of the City's management team, the Finance Director provides leadership and direction in the identification, development and implementation of City-wide strategic financial plans, goals and:objectives; participates In monitoring and evaluating progress in achieving strategic plans, goals and objectives; coordinates financial and budget planning and other related policy issues with other departments and on a City-wide basis. • Plans, organizes, controls, manages and evaluates the functions of the Finance department; along with managers and staff, participates in establishing operational plans and. initiatives to meet city and department goals and objectives; implements departmental plans, work programs, processes, procedures and policies required to achieve overall department performance results; coordinates and integrates department functions and responsibilities to achieve optimal efficiency and effectiveness; prepares and .administers Department's annual budget. • Provides leadership and works with managers and staff to develop and maintain a high performing, customer service oriented work environment that supports achieving the City's mission, strategic goals and. core values; plans and evaluates the performance of assigned managers and staff; establishes performance requirements and personal development targets; monitors performance and provides coaching.for performance improvement.and development; provides or, recommends compensation and other rewards to recognize performance; takes performance management action as needed; and builds a cohesive team of highly. motivated and trained employees. • Manages, directs, and evaluates the City's financial services, including general, utility, and project accounting, .revenue collections, payroll and related accounting activities; directs and.participates in financial analysis and reporting functions including grant funding and reporting; analyzes the City's financial condition and implements plans to ensure financial performance meets established targets; ensures that all regulatory.. reporting requirements are met and that reports to federal, state, regional and local agencies are accurate, clear, complete and comprehensive; oversees and participates in the development of complex financial analyses and forecasts required for City.Council decision -making; coordinates and oversees the development of the annual audit and CAFR report, including addressing audit findings and opportunities for improved fiscal management; and prepares periodic financial reports for the.City Council, City Administrator, and department heads. • Manages and participates in development and administration of the City's annual and capital budgets; prepares and delivers budget presentations to the City Council; monitors the City's performance against budget an. d takes and/or makes recommendations for corrective action to meet budget expenditure targets; 8 identifies potential financial, budgetary and other issues that could result in serious problems for the City and recommends appropriate courses of action; administers, and participates in performing treasury services and the investment of city funds in accordance with the City Council's investment policies. • Provides management direction and support in the preparation and coordination of utility financings, rate setting/analysis and tax activities for the City; develops and monitors the preparation of complex financial studies: develops and monitors short and long range financial plans to ensure city assets are safeguarded and appropriately invested; and develops and implements financial controls: • Reviews proposed legislation and regulatory changes for impacts on City operations and funding in areas of responsibility; prepares position papers to protect City interests; and collaborates with other stakeholders in seeking changes to legislation or regulation. • Represents the City and maintains good relationships with other governmental entities; business and community organizations, and the general public on fiscal matters of importance to the future growth and stability of the City of Vernon • Keeps abreast of current principles and practices of effective municipal fiscal management including complex utility financings, revenue enhancements, and cost controls. Directs the City's purchasing activities to ensure best practices are achieved and that open and competitive bidding and contracting are fair and transparent: • Attends various City Council, staff and community meetings as required; participates on internal and external committees, boards, and task forces, as appropriate. Serves as City's key financial. spokes.person;. and performs other duties as needed and/or assigned. 9 ATTACHMENT B ACKNOWLEDGEMENT AND RELEASE This is to confirm that on this date I have received severance pay in the amount of $ pursuant to my employment agreement with the City of Vernon. I acknowledge that, in accepting such. severance pay, I am releasing the City, its employees, officers and agents, from any and all claims of any kind or nature I had or may have had against the City arising from my employment with the City, including but without limitation, age discrimination claims under the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act: I further acknowledge that this Acknowledgment and Release releases the City from and waivers any. claims I may have against the City, its employees, officers and agents, stemming from my employment relationship, including the severance thereof, to the fullest extent permissible under the law. I further acknowledge that this waiver extends to all claims, known and unknown, relative to my employment with and cessation of my employment with the. City. I specifically waive the application of Civil Code §1542, which provides: A general release does not extent to claims which the creditor does not. know or suspect to exist in his favor at the time of executing the release, which if.known by him/her must have materially affected his/her settlement with the debtor. I have had the opportunity to consult with legal counsel relative to this Acknowledgement and Release, and I had a reasonable period of time within which to consider signing this Acknowledgement and Release. I have. signed this Acknowledgement and Release voluntarily and willingly. Dated: William F. Fox 10 � L o .��" Cli O U O W p O o ^v L 41 Co ( p u Q L 2 o 3 a3 -- o O c L a U 3 T �i U cg (n 'V O p N Q W a � •y � � •� p � � w � YQ � ~ I—� a W Q V = CL v O � �, A •� L C bA u O 2 w v v o mec c o m O � a •w G y 0 C� x A- � v V) Q O ~ 3 Q o R �a 0 X 3 U ° o QJ �f�Pc rl�f�l� clr�eP edf� Pr_t�r f c t1rLIMIN c pe RECEIVED RECEIVEDDDEC 12 2Q12 DEC 13 2012 40 CITY ADMINISTRATION CITY CLERK'S OFFIGE STAFF REPORT CITY ADMINISTRATION DATE: December 18, 2012 TO: Honorable Mayor and City Council FROM: Dana W. Reed, Interim City Clerk l RE: AT -WILL EMPLOYMENT AGREEMENT BETWEEN THE CITY OF VERNON AND WILLIAM F. FOX Recommendation It is recommended that the City Council find that adoption of the Resolution proposed in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance, with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. It is recommended that the City Council adopt a resolution approving the attached at -will employment agreement between the City of Vernon and William F. Fox and ordering that it be executed on behalf of the City. It is further recommended that the Interim City Clerk be instructed to administer the Oath of Office required by Article XX, Section 3 of the Constitution of the State of California to Mr. Fox on or before December 21, 2012. Background As part of the City's overall reform activities, an Executive Recruiter, Mr. William Hawkins, was chosen to assist the City in filling the position of Finance Director by conducting an executive recruitment to find the most qualified candidate to fill the position. A broad outreach to potential candidates was conducted, resulting in numerous qualified applications being received." After reviewing dozens of applications and personally interviewing the top candidates, at a Special Meeting held on December 6, 2012, the City Council selected William F. Fox subject to approval of an At -Will Employment Agreement. Additionally, the Council appointed Interim City Clerk Dana Reed to negotiate said agreement between the City of Vernon and Mr. Fox. Between. December 6, 2012 and December 1.2, 2012, the Interim City Clerk met and conferred with Mr. Fox by telephone to negotiate the terms of the agreement and agreed upon the terms contained- in the attached document.