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Ordinance No. 13,816ORDINANCE NO. 13,816 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING THE SECOND AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES AND EMPLOYMENT AS CITY MANAGER WITH RICHARD L. DAVIS; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the Mayor to execute and the City Clerk to attest to the Second Amendment to the Agreement for Professional Services and Employment as City Manager with Richard L. Davis. A copy of said amendment is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative7T� e City Council of the City of Baytown on this the 26h day of July, 2018. /j ATT T: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: I ACIO RAMIREZ, SR., City Attorney H. DIONCARLOS, Mayor t, � �ao�caceao•p �T�I �iGa9 \ Uri V'' e 5✓ 11COBFS01`.Legal.Karen\Files•.City Council•Ordinances\201811uly 26`.CityManagerContractAmendmentOrdinance.doc Exhibit "A" SECOND AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL SERVICES AND EMPLOYMENT AS CITY MANAGER STATE OF TEXAS COUNTY OF HARRIS This Second Amendment ("Second Amendment") to the Agreement for Professional Services and Employment as City Manager by and between the City of Baytown, Texas, a municipal corporation, and Richard L. Davis, effective as of July 1, 2015 (the "Agreement"), is made by and between the same parties on the date hereinafter last specified. WITNESSETH: WHEREAS, the City of Baytown (the "City") and Richard L. Davis (the "Manager") entered into the Agreement for Professional Services and Employment as City Manager effective as of July 1, 2015; and WHEREAS, on August 15, 2017, the City and the Manager executed the First Amendment to the Agreement to revise the term and compensation set forth in the Agreement and to add a bonus provision thereto; and WHEREAS, the City and the Manager desire to amend the Agreement to revise certain terms and conditions; NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, the parties hereto do hereby mutually agree as follows: Definitions. Unless a different meaning clearly appears from the context, words and phrases as used in this Second Amendment shall have the same meanings as in the First Amendment and the Agreement. 2. Amendments. a. Section 3 "Salary" of the Agreement is hereby amended to read as follows: Section 3. Salary. The City agrees to pay the Manager an annual base salary, which salary shall on August 6, 2018, be TWO HUNDRED TWENTY-NINE THOUSAND SEVEN HUNDRED EIGHT AND 13/100 DOLLARS ($229,708.13), payable in installments at the same time as other non -civil service employees of the City are paid. The Council further agrees to review the base salary and other benefits of Second Amendment to the Agreement for Professional Services and Employment as City Manager, Page I the Manager at the same intervals as it reviews the salaries and benefits of other non -civil service City employees. b. Section 3.5 "Bonus" of the Agreement is hereby amended to read as follows: Section 3.5. Bonus. a. For the City's 2017-18 Fiscal Year, the City hereby grants the Manager a one- time lump sum bonus of FOURTEEN THOUSAND SEVEN HUNDRED SIXTY-THREE AND NO/100 DOLLARS ($14,763.00) payable on or before August 17, 2018, should the Manager be employed by the City on August 10, 2018. b. All bonus payments made pursuant to this section shall be subject to FICA, TMRS and other withholding taxes as a regular check. c. The City and the Manager understand and agree that any bonus payment provided for in this Second Amendment is only for FY2017-18 and shall not be construed to be a part of base salary or any other pay identified by state or federal law. d. In subsequent fiscal years, the City Council may likewise grant the Manager a bonus -- the amount, payment, and conditions of which shall be set by the City Council after its annual evaluation of the Manager. C. Section 4 "Benefits" of the Agreement is hereby amended to read as follows: Section 4. Benefits. Except as otherwise provided in this section, all provisions of the rules and regulations of the City applicable to fringe benefits, including, but not limited to, health and life insurance, disability and retirement benefits, vacation and sick leave, and working conditions as they now exist or hereafter may be amended, shall also apply to the Manager as they apply to all other employees of the City. In recognition of the managerial experience of Manager, ➢ the Manager's vacation leave balance on the Effective Date shall be credited with an additional ten (10) days (80 hours); and ➢ from and after July 6, 2018, the Manager's vacation leave shall be calculated and granted to the Manager in accordance with the City's regulations utilizing the equivalent tenure of an employee with over twenty-three (23) years of service to City. The use of sick leave and vacation leave shall be subject to the prior approval of the Mayor or his designee. 3. Entire Agreement. The provisions of this Second Amendment, the First Amendment and the Agreement should be read together and construed as one agreement provided that, in the event of any conflict or inconsistency between the provisions of this Second Second Amendment to the Agreement for Professional Services and Employment as City Manager, Page 2 Amendment and the provisions of the First Amendment and the Agreement, the provisions of this Second Amendment shall control. 4. Interpretation. This Second Amendment has been jointly negotiated by the parties hereunder and shall not be construed against a party hereunder because that party may have assumed primary responsibility for the drafting of this Second Amendment. 5. Captions. Captions contained in the Agreement, the First Amendment, and the Second Amendment are for reference only and, therefore, have no effect in construing the documents. The captions are not restrictive of the subject matter of any section. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same amendment, this day of July, 2018, the date of execution by the Mayor ("Effective Date"). CITY OF BAYTOWN STEPHEN H. DONCARLOS, Mayor ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney AGREED AND ACCEPTED this the day of July, 2018. MANAGER RICHARD L. DAVIS STATE OF TEXAS § COUNTY OF HARRIS § Before me, , the undersigned notary public, on this day personally appeared RICHARD L. DAVIS, known to me to be the person whose name is Second Amendment to the Agreement for Professional Services and Employment as City Manager, Page 3 subscribed to the foregoing instrument, and acknowledged to me that he executed that instrument for the purposes and consideration therein expressed. Given under my hand and seal of office this day of July, 2018. Notary Public in and for the State of Texas R:%.Karen•Files%.Contracts'•.City Manager Agreement\Ricies Second Amended Agreement 08202018.doc Second Amendment to the Agreement for Professional Services and Employment as City Manager, Page 4