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HomeMy WebLinkAbout12272RESOLUTION NO. 12272 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, Amendment No. 2 to Employment Agreement dated February 14, 2011and Amendment No. 3 to Employment Agreement dated June 13, 2011 (collectively, "Agreement") setting forth the terms and conditions of his employment as City Manager; and WHEREAS, it is desirable for the parties to clarify whether temporary rent is an eligible expenditure under the relocation provision of the Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Amendment No. 4 to the Agreement dated December 12, 2011, between Pueblo, a Municipal Corporation and Jerry M. Pacheco ("Amendment No. 4"), 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. 4 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 December 12, 2011 BY: Leroy Garcia COUNCILPERSON Background Paper for Proposed RESOLUTION DATE: AGENDA ITEM # M-1 December 12, 2011 DEPARTMENT: Office of the City Manager Jerry M. Pacheco, City Manager 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 clarify the relocation expenses which are allowed? 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 had not been in a position to sell his home for anything close to the amount invested. As a result, two extensions were granted for Mr. Pacheco to move into the City. However, on October 26, 2011, the Council President informed Mr. Pacheco he should move into the City as soon as possible. Under the Agreement as previously amended, Mr. Pacheco was entitled to "his reasonable moving expenses associated with establishing residency within the City, consistent with the City's past policies on payment of relocation expenses for department heads, but not to exceed $7,000." Under the circumstances as they presently affect Mr. Pacheco's move, it is arguably ambiguous whether Mr. Pacheco's rental costs of temporary housing within the City until he can purchase a home is an eligible relocation expense. The proposed amendment would clarify that rent, furnishings and other relocation expenses would be eligible for reimbursement up to the $7,000 cap. FINANCIAL IMPACT None anticipated beyond prior amount authorized. AMENDMENT NO 4 TO EMPLOYMENT AGREEMENT THIS AMENDMENT NO 4 to Employment Agreement is made and entered into this 12th day of December, 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, Amendment No 2 dated February 14, 2011 and Amendment No 3 dated June 13, 2011(collectively, the "Agreement") and WHEREAS, the Manager is in the process of moving into the City and has established a residence in the City; and WHEREAS, due to an ambiguity in the Agreement, it is necessary and desirable that the Agreement be amended to clarify the expenses eligible for reimbursement as relocation expenses associated with the Manager moving into the City to include rent at a temporary dwelling. 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 shall, as expeditiously as possible, move into and 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 relocation expenses associated with establishing such residency within the City, including temporary rent, rent deposit, utility deposits, moving expenses, furnishings, and other relocation expenses but not to exceed in the aggregate $7,000 (including all amounts previously reimbursed or paid to Manager for relocation expenses) 2 Except as expressly modified by this Amendment No 4, 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 4 IN WITNESS WHEREOF, Manager and City have executed this Amendment No 4 to the Agreement as of the date first above written. ATTEST PUEBLO, a Municipal Corporation By City Jerk President o _.until APPROVED AS TO FORM ANAL E' 1 411 _ City Attorney , Jerry M. ' aa-co