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EMPLOYMENT AGREEMENT
City of Carmel-by-the-Sea
DIRECTOR OF PUBLIC WORKS

THIS AGREEMENT is between the CITY OF CARMEL-BY-THE-SEA ("CITY"), and ROBERT MULLANE
("EMPLOYEE") and is dated this 1'' day of October, 2015.

1. The CITY desires to employ ROBERT MULLANE as Director of Public Works for the City of
Carmel-by-the-Sea.

2. ROBERT MULLANE desires to serve as the Director of Public Works for the City of Carmel-
by-the-Sea beginning on August 1, 2015.

3. The CITY ADMINISTRATOR, as appointing power, and ROBERT MULLANE desire to agree in
writing to the following terms and conditions for employment of DIRECTOR OF PUBLIC
WORKS.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

AGREEMENT

1. DUTIES

A. CITY agrees to employ ROBERT MULLANE as Director of Public Works ofthe City of
Carmel-by-the-Sea to perform the functions and duties specified in the ordinances
and resolutions of the City and to perform other legally permissible and proper
duties and functions as the CITY ADMINISTRATOR may from time to time assign.

B. EMPLOYEE shall perform his duties to the best of his ability in accordance with the
highest professional and ethical standards ofthe profession and shall comply with
all rules and regulations established by the City.

C. EMPLOYEE shall not engage in any activity, which is or may become a conflict of
interest prohibited contract, or which may create an incompatibility of office as
defined under California law. Prior to performing any service sunder this
Agreement and annually thereafter, EMPLOYEE shall complete and file all
disclosure forms required by law.

2. TERM

A. The term of this Agreement shall be from August 1, 2015 until terminated by either
party in accordance with the provisions set forth in Section 4, or until terminated by
the event ofthe death or permanent disability of EMPLOYEE.

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B. EMPLOYEE agrees to remain in the exclusive employ of the CITY during the term of
this agreement. However, EMPLOYEE may engage in occasional teaching, writing,
or consulting performed on EMPLOYEE'S time off so long as such activities do not
either interfere with EMPLOYEE'S performance of his duties hereunder, nor conflict
with EMPLOYEE'S obligation to the CITY. EMPLOYEE agrees that such activities are
to be subject to prior approval ofthe CITY ADMINISTRATOR.

3. HOURS OF WORK

A. It is recognized that EMPLOYEE must devote a great deal oftime outside normal
business hours to the business of the CITY, and to that end EMPLOYEE will work a
flexible work schedule as determined and agreed to between the EMPLOYEE and
the CITY ADMINISTRATOR.

4. RESIGNATION AND TERMINATION

A. EMPLOYEE may resign at any time upon providing CITY ADMINISTRATOR with at
least thirty {30) days advance written notice of the effective date of resignation.

B. CITY ADMINISTRATOR may at any time terminate EMPLOYEE upon thirty {30) days
advance written notice.

C. The parties recognize and affirm that:

1) EMPLOYEE is an "at will" employee whose employment may be terminated

by the CITY ADMINISTRATOR without cause or right of appeal; and

2) There is no express or implied promise made to EMPLOYEE for any form of

continued employment. This Agreement is the sole and exclusive basis for
an employment relationship between EMPLOYEE and the CITY.

5. SEVERANCE PAY

A. Except as provided in paragraph S.B. of this Agreement, if EMPLOYEE is terminated

by the CITY ADMINISTRATOR while still willing and able to perform the duties of
Director of Public Works, CITY agrees to pay EMPLOYEE a cash payment equal to six
{6) months of the then current, aggregate salary. Said cash payments may be paid,
at the option oft he EMPLOYEE in: 1) lump sum upon date oftermination; 2) lump
sum on January 1 of the calendar year following termination; or 3) six equal
monthly installments. Such payment shall release the CITY from any further
obligations under this Agreement.
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B. In the event EMPLOYEE is terminated because of his conviction of any felony, or

any crime involving moral turpitude, or any offense involving a violation of his
official duties or if the CITY ADMINISTRATOR determines that the EMPLOYEE has:
1) misappropriated public funds; 2) commingled public funds with his/her personal
funds; 3) engaged in willful corrupt conduct in office; or 4) conducted himself in a
manner to be determined as conduct that constitutes misconduct according to the
CITY'S personnel rules, the CITY shall have no obligation to continue employment of
EMPLOYEE or to pay severance as set forth in paragraph 5.A. of this Agreement.

6. SALARY

A. The CITY agrees to pay EMPLOYEE ROBERT MULLANE, $155,400.00 in salary per
annum for his services, payable in installments at the same time as other
employees of the CITY are paid, and subject to customary withholding.

B. Thereafter and subject to an evaluation of performance the CITY ADMINISTRATOR

may increase EMPLOYEE'S compensation without a codicil to amend this
Agreement.

7. AUTOMOBILE

A. The CITY agrees to pay EMPLOYEE $400.00 per month auto allowance to cover
expenses related to the use of his personal vehicle while conducting City business.

8. SUPPLEMENTAL BENEFITS

A. The CITY shall provide EMPLOYEE with the same type and extent of benefits as
provided to the CITY'S other management employees as such benefits may be
amended from time to time except for the following:

1. Employee shall not be eligible for Educational Incentive Pay (EIP) or any
benefits provided by the Laborers International Union of North America,
Local270.

2. The CITY shall contribute 85% ofthe premium on behalf ofthe EMPLOYEE
and his/her qualified dependents for medical insurance available through
the CaiPERS CHOICE program for the term of this Agreement unless
otherwise amended by the CITY ADMINISTRATOR and EMPLOYEE.

3. The CITY shall provide dental and vision coverage through the CITY'S current
self-funded programs, until and unless otherwise amended between the
CITY ADMINISTRATOR and EMPLOYEE.
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B. With the above exceptions all other actions taken by the CITY ADMINISTRATOR
relating to benefits for executive management employees shall be considered
actions granting the same benefits to EMPLOYEE. As used herein benefits include
but are not limited to paid holidays and administrative leave, retirement benefits
and payments, health insurance, vision insurance, dental insurance and life
insurance.

C. EMPLOYEE shall accrue thirteen (13) hours per month of vacation leave. Usage will
be in accordance with the Carmel Municipal Code, 2.S2.630. Should there be
changes to the policy/rules governing vacation time, this provision may be
renogiated.

D. EMPLOYEE shall accrue eight (8) hours per month of sick leave, subject to the
Carmel-by-the-Sea Municipal Code Sections 2.S2.660 through 2.52.685.

E. EMPLOYEE shall be entitled to one hundred (100) hours of annual Management

Leave per fiscal year. This leave must be taken during the fiscal year in which it is
earned. There will be no ability to carry over this leave from one fiscal year to the
next and there shall be no cash pay off for any such unused leave.

F. CITY shall make a monthly contribution to a 457 Deferred Compensation Account

on behalf ofthe EMPLOYEE in the amount of one hundred-seventy ($170.00) per
pay period.

G. CITY shall make a $75 per pay period ($150 per month) contribution for technical
equipment such as a cell phone or tablet.

9. PERFORMANCE EVALUATION

A. CITY ADMINISTRATOR shall evaluate EMPLOYEE'S performance at least annually. As

part of such annual performance evaluation the CITY ADMINISTRATOR and
EMPLOYEE shall set goals and objectives for the ensuing year.

10. BUSINESS EXPENSES

A. CITY agrees to pay for reasonable CITY-related business expenses incurred by

EMPLOYEE in accordance with CITY policy.

11. DUES, SUBSCRIPTIONS, MEMBERSHIPS

A. CITY shall pay such professional dues, subscriptions and memberships in such
organizations necessary for EMPLOYEE to maintain professional relationships in
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 appropriate national, regional, state and local associations desirable for continued
professional growth, advancement and benefit to CITY.

12. NOTICES

A. Any notices required by this Agreement shall be in writing and either given in
person or by first-class mail with the postage prepaid and addressed as follows:

TO CITY: Douglas J. Schmitz

City Administrator
City of Carmel-by-the-Sea City Hall
P.O. Drawer CC
Carmel-by-the-Sea, CA 93921

TO EMPLOYEE: Robert Mullane

Works

Carmel, CA 93922

13. DISPUTE RESOLUTION

A. Should either party to this Agreement bring legal action against the other (formal
judicial proceedings, mediation or arbitration) the case shall be handled in
Monterey County, California, and the party prevailing in such action shall be
entitled to a reasonable attorney's fee which shall be fixed by the judge, mediator
or arbitrator hearing the case and such fee shall be included in the judgment
together with all costs.

14. ARM'S LENGTH NEGOTIATIONS

A. This Agreement has been negotiated at arm's length and between persons
sophisticated and knowledgeable in the matters dealt with in this Agreement.
Accordingly, any rule of law (including California Civil Code 1654) or legal decision
that would require interpretation of the ambiguities in this Agreement against the
party that has drafted it is not applicable and is hereby waived. The provisions of
this Agreement shall be interpreted in a reasonable manner to effect the purposes
ofthe parties in this Agreement.

15. DUTY TO DEFEND

A. Upon request of EMPLOYEE, and subject to the provisions of California Government

Code Sections 995.2 and 995.4, CITY shall defend EMPLOYEE in any civil action or
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proceeding brought against him, in his official or individual capacity or both, on

account of an act or omission in the scope of his employment as an employee with
CITY except for civil, criminal or administrative action initiated by EMPLOYEE.
16. ENTIRE AGREEMENT

A. This Agreement is the final expression ofthe complete agreement ofthe parties
with respect to the matters specified herein and supersedes all prior oral or written
understandings. Except as prescribed herein this Agreement cannot be modified
except by written mutual agreement signed by the parties.

17. ASSIGNMENT

A. This Agreement is not assignable by either the CITY or the EMPLOYEE.

18. SEVERABILITY

A. In the event that any provision ofthis Agreement is held or determined to be illegal
or void by reason of final, non-appealable judgment, order or decision of a court
having jurisdiction over parties, the remainder of the Agreement shall remain in full
force and effect unless the parts found to be void are wholly inseparable from the
remaining portion ofthe Agreement.

19. COUNTERPARTS

A. This Agreement shall be executed simultaneously in two counterparts and each of

which shall be deemed an original, but all of which together shall constitute one
and the same instrument.

IN WITNESS WHEREOF this Agreement is signed and executed and duly held attested by the
City Clerk, the CITY ADMINISTRATOR, and EMPLOYEE.

ATTEST:

CITY OF CARMEL-BY-THE-SEA

CITY CLERK

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