HomeMy WebLinkAbout12085RESOLUTION NO. 12085
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 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 was amended by Amendment No. 1
dated May 24, 2010 (the Employment Agreement and Amendment No. 1 being referred
to together as the "Agreement"); and
WHEREAS, the City Council and Manager have agreed to modify the Agreement
by substituting a tax deferred benefit for an insurance benefit.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Amendment No. 2 to the Employment Agreement between Pueblo, a Municipal
Corporation and Jerry M. Pacheco ("Amendment No. 2"), 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. 2 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: February 14, 2011
BY: Leroy Garcia
Background Paper for Proposed
RESOLUTION
DATE: AGENDA ITEM # M-8
February 14, 2011
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 substitute a City contribution to a deferred annuity plan or retirement
savings instead of payment of insurance premiums in an identical amount?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
Under Section 8 of City Manager Jerry M. Pacheco's Employment Agreement dated
August 1, 2009, the City agreed to pay the premium on life insurance for Mr. Pacheco in
an amount not to exceed $3,000.00 per year. Mr. Pacheco has not previously utilized
this benefit to its full extent, and would now prefer to have the same amount paid
instead into a tax-deferred annuity or retirement plan such as an IRC §457 plan.
The Resolution approves Amendment No. 2 to the Employment Agreement to
implement this change. It would not affect the City's cost for employing Mr. Pacheco.
FINANCIAL IMPACT
The amendment is fiscally neutral.
AMENDMENT NO 2 TO EMPLOYMENT AGREEMENT
THIS AMENDMENT NO 2 to Employment Agreement is made and entered into this
14th day of February, 2011 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, which was subsequently amended by Amendment No 1 thereto dated May 24,
2010 (collectively the "Agreement "), and
WHEREAS, at the Manager's request, it is desirable that the Agreement be amended to
substitute a tax deferred annuity or retirement contribution for payment of life insurance
premiums,
NOW, THEREFORE, in consideration of the foregoing and the mutual terms and
conditions set forth herein, the parties agree as follows
1 Section 8 of the Agreement is amended to read as follows
8 Tax Deferred Contribution. In addition to compensation and benefits
described above, City will pay an annual contribution of $3,000 00 on behalf of Manager
to or for a tax deferred annuity or retirement plan of Manager's selection, including but
not limited to, an IRC §457 plan.
2 Except as expressly modified by this Amendment No 2, the Agreement as
heretofore amended shall remain in full force and effect. Except as expressly modified, any
obligations remaining to be performed under the 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 2
IN WITNESS WHEREOF, Manager and City have extended this Amendment No 2 to
the Agreement as of the date first above written.
ATTEST PU LO, Municipal Corporation
By
Crt rk President of th Cit Council
Y
APPROVED AS TO FORM M a, AG '11
City Attorne. / Jerry M. ac co