HomeMy WebLinkAbout12175RESOLUTION NO. 12175
A RESOLUTION APPROVING AN AMENDMENT TO THE
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, Amendment No. 1 to
Employment Agreement dated May 24, 2010, and Amendment No. 2 to Employment
Agreement dated February 14, 2011 (collectively, "Agreement") setting forth the terms
and conditions of his employment as City Manager; and
WHEREAS, said Agreement provided that Mr. Pacheco establish residency
within the City by August 1, 2011; 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 economic recession and severely depressed condition of the
real estate market in this area making it difficult to sell existing homes in the 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 reasonable period to establish
residency within the City.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Amendment No. 3 to the Agreement, dated June 13, 2011, between Pueblo, a
Municipal Corporation and Jerry M. Pacheco ("Amendment No. 3"), 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. 3 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 June 13, 2011
BY: Judy Weaver
COUNCILPERSON
Background Paper for Proposed
RESOLUTION
DATE: AGENDA ITEM # M-10
June 13, 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 extend the deadline for him to establish City residency?
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 Littleton, 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.
On December 2, 2008, former City Manager Dave Galli appointed Mr. Pacheco as
Acting City Manager. City Council confirmed the appointment of 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 initiated 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, 2010 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 anything close to the amount invested.
Economic projections are that the Pueblo area housing market will not significantly
improve until the unemployment rate declines and the real estate market improves.
One measure of the real estate market is new residential building permits.
The proposed amendment to Mr. Pacheco's employment agreement would extend the
deadline for him to establish residency to and until such time as the Pueblo County
unemployment declines to 6% and new residential building permits in Pueblo County
increase to 600 per year. 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
None anticipated.
AMENDMENT NO 3 TO EMPLOYMENT AGREEMENT
THIS AMENDMENT NO 3 to Employment Agreement is made and entered into this 13th day of
June, 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 has been amended by Amendment No. 1 dated May 24, 2010, and Amendment No. 2 dated
February 14, 2011 (collectively, the "Agreement "); and
WHEREAS, due to extenuating economic circumstances including a severely depressed real estate
market making it difficult to sell existing homes, 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 (a) Manager understands and agrees that he shall, on or before the Economic
Recovery Date, 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 (b) As used in this
Section, the phrase "Economic Recovery Date" shall mean the date which is ninety (90) days after the
last of the following conditions are found to exist: I. the total of the most recent 12 months of
residential new home building permits obtained from Pueblo Regional Building Department equals or
exceeds six hundred (600) units, and II. The unemployment rate for Pueblo County, Colorado, as
determined by the Colorado Department of Labor, equals 6% or less for one quarter
2. Except as expressly modified by this Amendment No. 3, 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. 3
IN WITNESS WHEREOF, Manager and City have executed this Amendment No. 3 to the
Agreement as of the date first above written.
ATTEST PUEBLO, a Municipal Corporation
By
C ity C President • f the o ity Council
APPROVED AS TO FORM. MA • '
./ice .a...�i�. ' _c•-�
City Attorney, / Jerry M. Pac eco