3 Third Amendment to the Employment Agreement between the City of Livingston and Odilon Ortiz, Returning Mr. Ortiz to his Position as Assistant City Manager/Finance Director.

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STAFF REPORT

AGENDA ITEM: Third Amendment to the Employment Agreement between the City of Livingston and Odilon Ortiz, Returning Mr. Ortiz to his Position as Assistant City Manager/Finance Director

MEETING DATE: October 20, 2015

PREPARED BY: Jose M. Sanchez, City Attorney

REVIEWED BY: Jose M. Sanchez, City Attorney

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RECOMMENDATION:

Consider adopting Resolution No. 2015- , approving a Third Amendment to the Employment Agreement between the City of Livingston and Odilon Ortiz, returning Mr. Ortiz to his position as Assistant City Manager/Finance Director.

BACKGROUND:

On January 20, 2015, the City Council reported out of Closed Session that the majority of the City Council (3-0, with two Council Members being absent) voted to appoint Mr. Ortiz as Interim City Manager effective February 1, 2015. The City Council approved an amendment to Mr. Ortiz’ Employment Agreement on February 3, 2014 making this assignment. The amendment made clear that the assignment of Interim City Manager was subject to the complete discretion of the City Council. Mr. Ortiz served as Interim City Manager throughout the City Manager recruitment process.

On July 21, 2015, the City Council appointed Eddie Duque as City Manager and approved an Employment Agreement with Mr. Duque setting the terms of employment, salary and benefits. Mr. Duque’s employment with the City began on September 30, 2015.

DISCUSSION:

Given Mr. Duque’s employment with the City as City Manager, there is no need to continue Mr. Ortiz’ Interim City Manager assignment. Pursuant to Section 4 of the Second Amendment to the Employment Agreement between the City and Mr. Ortiz, the City Council wishes to formally end the assignment as of September 29, 2015. The attached Third Amendment to the Employment Agreement with Mr. Ortiz makes clear that the Interim City Manager assignment was terminated on that date.

ATTACHMENTS:

1. Resolution No.

RESOLUTION NO. 2015-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING A THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN THE CITY OF LIVINGSTON AND ODILON ORTIZ, ENDING HIS INTERIM CITY MANAGER ASSIGNMENT

WHEREAS, on October 24, 2011, the City and Odilon Ortiz, Jr. ("Ortiz") entered into an Employment Agreement ("Employment Agreement") employing Ortiz as the City’s Assistant City Manager/Finance Director; and

WHEREAS, on December 16, 2014, the City and Ortiz entered into the First Amendment and Restatement to Agreement for Employment of Assistant City Manager/Finance Director ("First Amendment"), extending the term of the Employment Agreement and making minor changes to Ortiz’ compensation and benefits; and

WHEREAS, on December 22, 2014, the City’s City Manager, Jose Antonio Ramirez, informed the City of his desire to resign from his employment as City Manager to pursue personal and professional opportunities outside of the region. Mr. Ramirez’ last day with the City was January 31, 2015; and

WHEREAS, on January 20, 2015, the City Council reported out of Closed Session that the majority of the City Council (3-0, with two Council Members being absent) voted to appoint Ortiz as Interim City Manager effective February 1, 2015. The City Council approved a second amendment to Mr. Ortiz’ Employment Agreement on February 3, 2014 making this assignment ("Second Amendment"); and

WHEREAS, pursuant to the Second Amendment, Ortiz’ Interim assignments as City Manager was subject to the complete discretion of the City Council and such assignment could be terminated by the City Council at any time for any or no reason; and

WHEREAS, Ortiz served as Interim City Manager throughout the City Manager recruitment process. On July 21, 2015, the City Council appointed Eddie Duque as City Manager and approved an Employment Agreement with Mr. Duque setting the terms of employment, salary and benefits. Mr. Duque’s employment with the City began on September 30, 2015; and

WHEREAS, given Mr. Duque’s employment with the City as City Manager, there is no need to continue Ortiz’ Interim City Manager assignment. Pursuant to Section 4 of the Second Amendment to the Employment Agreement between the City and Ortiz, the City Council wishes to formally end the assignment effective September 29, 2015; and

WHEREAS, the City Council and Ortiz desire to execute this Second Amendment to incorporate the terms of Ortiz’ Interim City Manager assignment into the Employment Agreement.

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Livingston, that:

1. The City Council hereby ends Ortiz’ Interim City Manager assignment as of the September 29, 2015 (end of day). As of September 30, 2015, Ortiz returned to his Assistant City Manager/Finance Director position at the salary set forth in the First Amendment to the Employment Agreement.

2. The City Council hereby approves the Third Amendment to the Employment Agreement between the City and Ortiz, attached hereto as Exhibit A and incorporated herein by reference, and authorizes and directs the Mayor to sign the Second Amendment on behalf of the City.

Passed and adopted this 20th day of October 2015, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

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Rodrigo Espinoza, Mayor of the City of Livingston

ATTEST:

I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 20th day of October 2015.

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Antonio Silva, City Clerk of the City of Livingston

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THIRD AMENDMENT TO EMPLOYMENT AGREEMENT

This Third Amendment to the Employment Agreement of Assistant City Manager/Finance Director ("Third Amendment") is made and entered into this 20th day of October 2015, by and between the City of Livingston, a general law City ("City"), and Odilon Ortiz, Jr., an individual ("Ortiz"), collectively referred to as the "Parties."

RECITALS

WHEREAS, on October 24, 2011, the City and Ortiz entered into an Employment Agreement ("Employment Agreement") employing Ortiz as the City’s Assistant City Manager/Finance Director; and

WHEREAS, on December 16, 2014, the City and Ortiz entered into the First Amendment and Restatement to Agreement for Employment of Assistant City Manager/Finance Director ("First Amendment"), extending the term of the Employment Agreement and making minor changes to Ortiz’ compensation and benefits; and

WHEREAS, on December 22, 2014, the City’s City Manager informed the City of his desire to resign from his employment as City Manager to pursue personal and professional opportunities outside of the region. The City Manager’s last day with the City was January 31, 2015; and

WHEREAS, on January 20, 2015, the City Council reported out of Closed Session that the majority of the City Council (3-0, with two Council Members being absent) voted to appoint Ortiz as Interim City Manager effective February 1, 2015. The City Council approved a second amendment to Mr. Ortiz’ Employment Agreement on February 3, 2014 making this assignment ("Second Amendment"); and

WHEREAS, pursuant to the Second Amendment, Ortiz’ Interim assignments as City Manager was subject to the complete discretion of the City Council and such assignment could be terminated by the City Council at any time for any or no reason; and

WHEREAS, Ortiz served as Interim City Manager throughout the City Manager recruitment process. On July 21, 2015, the City Council appointed Eddie Duque as City Manager and approved an Employment Agreement with Mr. Duque setting the terms of employment, salary and benefits. Mr. Duque’s employment with the City began on September 30, 2015; and

WHEREAS, given Mr. Duque’s employment with the City as City Manager, there is no need to continue Ortiz’ Interim City Manager assignment. Pursuant to Section 4 of the Second Amendment to the Employment Agreement between the City and Ortiz, the City Council wishes to formally end the assignment effective September 29, 2015; and

WHEREAS, the City Council and Ortiz desire to execute this Second Amendment to incorporate the terms of Ortiz’ Interim City Manager assignment into the Employment Agreement.

NOW, THEREFORE, THE PARTIES AGREE TO THE FOLLOWING ADDENDUM TO THE EMPLOYMENT AGREEMENT

1. Ortiz’ Interim assignment as City Manager ended as of September 29, 2015.

3. As of September 29, 2015, Ortiz has returned to his Assistant City Manager/Finance Director position at the salary set forth in the First Amendment to the Employment Agreement.

IN WITNESS HEREOF, the Parties have caused their authorized representative to execute this Agreement on this 20th day of October, 2015.

DATED: –

Odilon Ortiz Jr., an individual

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Rodrigo Espinoza, Mayor City of Livingston

APPROVED AS TO FORM:

Jose M. Sanchez, City Attorney

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DATED: