GENERAL MANAGER EMPLOYENT CONTRACT
BETWEEN
JIM HEITZMAN AND THE MARINA COAST WATER DISTRICT
This Contract is made and entered into, effective September 10, 2007 ,
by and between the Marina Coast Water District (“District”) and Jim
Heitzman (“Heitzman” and “General Manager”), the parties to this Contract.
RECITALS
A. District is a political subdivision of the State of California
formed and existing pursuant to the County Water District Law, California
Water Code sections 30000 and following.
B. Water Code section 30540 authorizes and requires District to appoint
a general manager and a secretary. Section 30542 provides that the
general manager and the secretary shall each receive the compensation
determined by the District’s Board of Directors and shall serve at the
Board’s pleasure. Section 30543 provides that the same person may be
appointed general manager and secretary. Section 30545 provides that the
general manager and the secretary shall give a bond to the District
conditioned for the faithful performance of his duties as the Board may
provide. Pursuant to Section 30579, the duties of the secretary are to
countersign all contracts on behalf of the District and to perform other
duties imposed by the Board. Pursuant to Sections 30580 and 30581, the
duties of the general manager are to:
(a) Have full charge and control of the maintenance, operation, and
construction of the waterworks or waterworks system of the District.
(b) Have full power and authority to employ and discharge all employees
and assistants at pleasure, for positions approved by the Board.
(c) Prescribe the duties of employees and assistants.
(d) Fix and alter the compensation of employees and assistants subject
to approval by the Board.
(e) Perform other duties required by the Board.
(f) Report to the Board in accordance with the rules and regulations as
the Board adopts.
C. District desires to employ Jim Heitzman as the District’s General
Manager, on the terms and conditions contained in this Contract.
D. Jim Heitzman, by reason of his education and experience, is
qualified to fill the General Manager position.
E. Jim Heitzman desires to be employed by the District as District’s
General Manager, on the terms and conditions contained in this Contract.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS
SET FORTH BELOW, the parties agree as follows:
AGREEMENTS
1. Services: General Manager will provide to District necessary
professional, administrative, and managerial services to perform the duties
and responsibilities of General Manager and secretary for District, to
the satisfaction of District’s Board of Directors. Such services shall
include, but not be limited to, the following:
1.1 To perform all functions and duties of the District’s General
Manager and secretary, pursuant to applicable laws, and as set forth in the
Recitals to this Agreement and in the District’s job description for
“General Manager” in effect during the term of this Agreement. General
Manager shall be authorized to engage consultants, either individually or
in the aggregate, for the District compensation up to $10,000 in any
month, or $75,000 in any fiscal year without prior Board approval. This
paragraph shall not limit the General Manager’s authority to engage
contractors to respond to emergencies.
1.2 To perform such services on an exclusive full-time service basis
for District, and to be available as needed to properly perform such
services, including attendance at after-hours meetings as needed for
conduct of District business.
2. Compensation:
2.1 District will provide, as total compensation to General Manager,
the following:
2.1.1 Base Compensation: General Manager shall be paid at the rate of
$205,000.00 annually, in monthly installments of $17,083.33, in
accordance with payroll procedures and protocols in place within the District
from time to time, from which shall be deducted such amounts as are
agreed to by District and General Manager and such amounts as are required
by law to be deducted. This base compensation will include an annual
cost of living adjustment of eight percent (8%)on September 17, 2008 and
on September 17, 2009.
2.1.2 Expenses: General Manager shall be entitled to the same
reimbursement for other out-of-pocket expenses incurred on District business,
on the same terms and conditions, as authorized for other District
personnel. The Board encourages the General Manager to represent the District
and participate in professional organizations.
2.1.3 Health Care: The District shall pay all the annual costs to
enroll the General Manager and the General Manager’s family in the
District’s health care plan for dental care, vision care, and medical care.
If the General Manager retires from active employment while working for the District
after three (3)years of continuous employment with the District, the District
shall continue to pay the annual costs to enroll the General Manager
(but not the General Manager’s family) in the District’s health care plan.
2.1.4 Life Insurance: The District will pay the cost of a policy of
term life insurance for the General Manager in the amount of $300,000.00
for so long as the General Manager is employed by the District.
Beneficiaries of the insurance will be named by the General Manager.
2.1.5 Accidental Death and Dismemberment: The District shall pay the
cost of a policy insuring against the accidental death and dismemberment
of the General Manager. The policy shall provide a benefit of
$300,000.00 for accidental death to beneficiaries named by the General Manager.
2.1.6 Disability: The District shall pay to insure the General Manager
against long term and short term disability the same as the MCWD
Employee Memorandum of Understanding.
2.1.7 Sick Leave: The General Manager shall accrue sick leave
according to the schedule adopted from time to time by the District’s Board,
without credit for any prior service.
2.1.8 Leave: The General Manager shall be entitled to twenty-four
(24)days leave each year of this Contract.
2.1.9 PERS and PARS Contributions: The District will pay 100% of the
monthly employer and employee contributions into the District’s CALPERS
retirement program. In addition, the District will contract with the
Public Agency Retirement System (PARS) and will pay the cost of a plan to
equal an additional ten percent (10%) retirement,
2.1.10 403(b) Annuity Payment: The District will pay $13,500.00 per
year into an annuity plan for the General Manager under section 403(b) of
the Internal Revenue Code,
2.1.11 Deferred Compensation Plan: The District will set up a deferred
compensation plan qualified under either section 457 or 401k of the
Internal Revenue Code, into which General Manager may elect to contribute
a portion of his base compensation as provided by law.
2,1.12 Vehicle Allowance: District, at its option, shall provide the
General Manager with a vehicle or vehicle allowance in the amount of SIX
HUNDRED DOLLARS ($600.00) per month.
2.1.13 Tuition: District agrees to reimburse General Manager for
tuition for District-related education courses, said tuition not to exceed
$7500.00 for the term of this Agreement. In return, the General Manager
agrees to remain employed by the District for at least three years
following payment of such tuition. If the General Manager elects to terminate
this contract before the three years, the General Manager shall reimburse the District
a prorated portion of the cost of the tuition paid by the District; 1/36th of the tuition
cost for each month less than 36 months of follow-on service.
2.2 Amendments to Compensation. All adjustments to General Manager’s
compensation, including, but not limited to, cost of living adjustments,
must be authorized by action of the Board separate and apart from
action taken to authorize adjustments for other employees of the District.
No adjustment to the General Manager’s compensation shall be effective
until an Amendment to this Contract is signed by the President and
Vice-President of the Board and the General Manager and attached to this
Contract.
3. Performance Reviews: The Board will conduct annual performance
reviews with the General Manager during the month of February each year. The
Board may at its discretion review confidentially the performance of
the General Manager at any time during the term of this Contract. It
shall be the General Manager’s duty, as a condition precedent to the
Board’s obligation to annually review the General Manager’s performance
under this paragraph, to notify the District’s Board in writing not less
than 30 nor more than 45 days in advance of each annual review period of
the Board’s obligation to conduct the review and the dates between
which the review is required under this paragraph.
4. Term: This Contract shall become effective on September 10, 2007,
after execution by the General Manager and the District’s Board, and
shall remain in effect until terminated as provided herein or until
midnight September 9, 2010, whichever occurs first.
5. Termination: This contract shall expire on the earliest to occur of
the following:
5.1 Expiration of Term: At the expiration of the period ending
September 9, 2010, this Agreement will automatically renew for an additional
three (3) year period (with such modifications in the terms as the
parties shall reasonably agree) Unless terminated by one party providing the
other party written notice of termination at least six (6) months
prior to the end of the term. If the District opts not to renew, General
Manager shall be entitled to twelve (12) months’ base compensation and
$12,500.00 per year of service, up to ten (10) years. If the General
Manager opts not to renew, General Manager shall be entitled to $12,500.00
per year of service up to a maximum of ten (10) years.
5.2 Termination due to Death, Disability or Inability to Perform: This
Agreement shall also terminate immediately upon the General Manager’s
death or mental or physical incapacity to perform the duties herein. In
the event of termination under this paragraph 5.2, General Manager or
his beneficiaries shall be entitled to three (3) months’ compensation
from the date of termination as well as continuation of health care
benefits listed in 2.1.3. above.
5.3 Termination for Cause: Notwithstanding any other provisions herein,
the District may terminate this Agreement “for cause” upon written
Notice to District Manager, at which point, except as provided in this
paragraph 5.3, all compensation shall cease. Cause for termination under
this paragraph includes commission of a felony or other serious
violation of a law, state or federal regulation or District rules;
misappropriation of District property; gross neglect of duties or gross negligence
which substantially impacts the District’s ability to serve its customers. The Board’s
decision to terminate for cause under this paragraph shall be subject to review under
he arbitration provisions in paragraph 14 below.
6. Work Product: Except as otherwise agreed in writing by the parties.
all forms of expression of ideas relating to the General Manager’s
performance of this Contract shall be the property of the District. The
General Manager shall provide all such work product produced through the
date of termination, whether complete or incomplete, to District, free
of any and all claims, liens, and/or encumbrances, to be used by
District for any purpose.
7. Licenses: The General Manager shall secure and maintain, throughout
the life of this Contract, at District’s cost, all licenses, permits,
qualifications and approvals of whatsoever nature which are legally
required to practice any services required by this Contract.
8. Standard of Performance: The General Manager shall perform the
services described in a professional, first-class, workmanlike and
businesslike manner in accordance with standards of quality satisfactory to
District’s Board of Directors in their sole discretion. Unless specifically
excepted herein, the General Manager shall be subject to all codes of
conduct and all personnel policies applicable to other District
employees.
9. Assignment of Contract; Subcontracting: This employment contract is
personal to Jim Heitzman, based upon his unique training, background
and experience. General Manager may not assign or subcontract any of his
duties or benefits under this Contract without the District’s prior
written consent, which the District may withhold at its absolute
discretion for any reason.
10. Bond: General Manager shall obtain for the benefit of District such
bond for the faithful performance of General Manager’s duties under
this Contract as the District’s Board may require from time to time.
District shall pay the premium on any such bond.
11. Paragraph Headings: The paragraph headings contained herein are
for convenience and reference only and are not intended to define or
limit the scope of this Contract.
12. Notice: Whenever notice to a party is require by this Contract, it
shall be deemed given when deposited with proper address and postage in
the U.S. Mail or when personally delivered as follows or at such other
address or place either party may designate in writing from time to
time:
District: MARINA COAST WATER DISTRICT
11 Reservation Road
Marina, CA 93933-2099
General Manager: JIM HEITZMAN
17415 Avenida Los Altos
Salinas, CA 93907
13. Duplicate Originals: This Contract may be executed in
one or more duplicate originals bearing the original signature of both
parties and when so executed any such duplicate original shall be
admissible as proof of the existence and terms, of the Contract between the
parties.
14. Arbitration: Any dispute, claim or controversy concerning either
this Agreement or the employment of the General Manager shall be subject
to final, binding and non-appealable arbitration on the request of any
party, as follows:
Arbitration shall be conducted by one neutral arbitrator under the
procedures set forth in California Code of Civil Procedure section 1280 et
seq. The parties shall mutually select the neutral arbitrator, and in
the event they are unable to agree on a neutral arbitrator, either party
may request the Monterey County Superior Court to appoint said
arbitrator.
The arbitration proceedings shall be held in Monterey County,
California at a location mutually convenient to District and General Manager.
District shall be responsible for the arbitrator’s fee. The
arbitrator’s opinion or award shall decide all issues submitted to arbitration,and
he arbitrator shall be permitted to award only those remedies in law or equity which
are requested by the parties and which the arbitrator determines to be supported by
credible, relevant evidence. The arbitrator, in its sole discretion, may award attorney fees
and costs to the prevailing party in any dispute.
The courts of Monterey County, California shall have jurisdiction over
any litigation necessary to enforce the award of the arbitration.
15. Waiver or Modification: No waiver, alteration, or modification of
any of the provisions of this Contract shall be binding unless in
writing and signed by a duly authorized representative of both parties to
this Contract. Any document which modifies this Contract shall be appended
to the original of this Contract, and copies of such documentation
shall be provided to ail parties to this Contract. No changes shall be
implied. If there is any ambiguity or lack of clarity or uncertainty in or
by reason of the language of any amendment, the language of the
Contract shall control the interpretation of the Contract and any amendment.
16. Governing Law: This Contract shall be governed by the laws of the
State of California.
17. Previous Agreements Integrated: Any and all existing understandings
and agreements, whether oral or written, or renewals thereof, between
the parties hereto,covering the same subject matter, are hereby integrated within
and superseded by this Contract, and shall have no further force or effect.
IN WITNESS WHEREOF, the parties hereto have executed this Contract,
consisting of seven pages in duplicate on August 2007, effective
September 10, 2007. District:
MARINA COAST WATER DISTRICT
By:
HOWARD GUSTAFSON
President,
Board of Directors
General Manager: Jim Heitzman
Posted by Frank O'Connell 
Posted by Frank O'Connell 
Posted by Frank O'Connell 
