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HomeMy WebLinkAbout11888RESOLUTION NO. 11888 A RESOLUTION APPROVING AN AMENDMENT TO THE AUGUST 1, 2009 EMPLOYMENT AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND JERRY M. PACHECO AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME WHEREAS, the City of Pueblo has heretofore entered into an Employment Agreement ("Agreement") with Jerry M. Pacheco dated August 1, 2009 setting forth the terms and conditions of his employment as City Manager; and WHEREAS, said Employment Agreement provided that Mr. Pacheco establish residency within the City by August 1, 2010; and WHEREAS, an initiated Charter Amendment had been referred to the voters for the November 3, 2009 Municipal Election which would have eliminated the position of City Manager; and WHEREAS, the United States and the State of Colorado have experienced a sustained economic recession which has severely impacted real estate values and had a substantial adverse effect upon real estate sales in Pueblo County; and WHEREAS, based upon (a) the uncertainty caused by the proposed Charter amendment, (b) conditions particularly applicable to the sale of Mr. Pacheco's home in Pueblo County, and (c) the current condition of the real estate market in this area, Mr. Pacheco has not been able to sell his home and establish residency within the City; and WHEREAS, the City Council believes it is in the best interest of the City to retain the services of Mr. Pacheco as City Manager and, due to the extenuating circumstances, to afford Mr. Pacheco an additional limited period to establish residency within the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 1 to the Agreement, dated May 24, 2010, between Pueblo, a Municipal Corporation and Jerry M. Pacheco ("Amendment No. 1"), a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2. The President of the City Council is hereby authorized and directed to execute Amendment No. 1 in the name of and on behalf of Pueblo, a Municipal Corporation and the City Clerk shall affix the seal of the City thereto and attest same. INTRODUCED May 24, 2010 BY Vera Ortegon /Councilperson APPROVED: Lawrence Atencio/President City Council ATTESTED BY: Gina Dutcher/City Clerk Background Paper for Proposed RESOLUTION DATE: AGENDA ITEM # M-1 May 24, 2010 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE A RESOLUTION APPROVING AN AMENDMENT TO THE AUGUST 1, 2009 EMPLOYMENT AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND JERRY M. PACHECO AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council amend the Employment Agreement with City Manager Jerry M. Pacheco to extend the deadline for him to establish City residency and to authorize payment of relocation expenses? RECOMMENDATION None. BACKGROUND Jerry M. Pacheco was initially hired by the City in July 2004 as a Senior Planner in the Department of Planning and Community Development. Mr. Pacheco and his family relocated from Parker, Colorado and moved temporarily to his grandparents' home in Pueblo County while they subdivided family-owned property and constructed a new home near the grandparents. Mr. Pacheco was appointed Director of Land Use on November 1, 2005, Assistant City Manager for Community Development on July 1, 2007, and subsequently appointed Director of Planning & Development on January 1, 2008. None of these positions required City residency. With the departure of former City Manager Dave Galli in December 2008, City Council appointed Mr. Pacheco as Acting City Manager on January 5, 2009 on an indefinite basis until it decided upon a process to fill that position. That process was ultimately postponed, however, due to an initiative petition being filed which called for a Charter amendment to change the form of the City's government from Council-Manager to Mayor-Council. This measure called for eliminating the position of City Manager. At that time, Council expressed that it would be difficult to recruit for the position until the outcome of the Charter amendment was known. During the summer of 2009, Council decided to offer the City Manager position to Mr. Pacheco, and approved an employment agreement with him dated August 1, 2009. Recognizing that it was unreasonable to ask him to move into the City with a pending ballot measure providing for elimination of his position, the employment agreement provided that he needed to establish residency by August 1, 2010. During the period from August 1, 2009 until present, the national, state and local economy has been in a prolonged recession, with the housing sector especially hard hit. Because of special conditions affecting the sale of Mr. Pacheco's new home (which have been confidentially provided to City Council), as well as conditions generally affecting real estate in the Pueblo market, Mr. Pacheco has not been in a position to sell his home for the amount invested. The proposed amendment to Mr. Pacheco's employment agreement would extend the deadline for him to establish residency to and until August 1, 2011. Within that additional period, conditions affecting the sale of Mr. Pacheco's home are reasonably anticipated to improve, allowing him to move his family into the City. FINANCIAL IMPACT The amendment would authorize payment of relocation expenses of up to $7,000.00. AMENDMENT NO. I TO EMPLOYMENT AGREEMENT THIS AMENDMENT NO. 1 to Employment Agreement is made and entered into this 24th day of May, 2010 between Pueblo, a Municipal Corporation (the "City ") and Jerry M. Pacheco (the "Manager "). WHEREAS, City and Manager heretofore entered into an Employment Agreement dated August 1, 2009 (the "Agreement "); and WHEREAS, due to extenuating economic circumstances, it is necessary and desirable that the Agreement be amended to extend the period within which Manager must establish residency within the City. NOW, THEREFORE, in consideration of the foregoing and the mutual terms and conditions set forth herein, the parties agree as follows: 1. Section 14 of the Agreement is amended to read as follows: 14. Residency Manager understands and agrees that he will, on or before August 1, 2011, reside within the corporate limits of the City and maintain such residence during his tenure of office as City Manager. City will reimburse Manager for his reasonable moving expenses associated with establishing residency within the City, consistent with the City's past practices on payment of relocation expenses for department heads, but not to exceed $7,000. 2. Except as expressly modified by this Amendment No. 1, the Agreement shall remain in full force and effect. Except as expressly modified, any obligations remaining to be performed under the original Agreement by either party, are not waived or excused in any manner, but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No. 1. IN WITNESS WHEREOF, Manager and City have extended this Amendment No. 1 to the Agreement as of the date first above written. ATTEST: PUEBLO, a Municipal Corporation By �, �nj ff-IC.4 � ), City` Jerk resident of the City Council APPROVED AS TO FORM: City Attorne