THIS AGREEMENT is between the CITY OF CARMEL-BY- THE- SEA ("CITY") and Susan Paul ("EMPLOYEE" ) and is dated this 1 day of J uly, 2013. 1 . The CITY desi r es to employ Susan Paul as Administrative Services Director for the City of Carmel - by- the- Sea. 2 . Susan Paul desires to se r ve as Administrative Services Director for the City of Carmel - by-the-Sea beginning on January 15, 2013. 3 . The CITY ADMINISTRATOR, as appointing power , and Susan Paul desire to agree in wr i ting to the following terms and c ondi ti ons for employment of Administrative Services Director. 4 . This Agreement supersedes any ot her employment agreement between Susan Paul and the City of Carmel-by- the-Sea. NOW THE PARTIES AGREE AS FOLLOWS : AGREEMENT 1 . DUTIES A. CITY agrees t o employ Susan Paul as Administrative Services Director of the 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 f unctions as the CITY ADt-HNISTRATOR may from time to time assign. B. EMPLOYEE shal l perform his /her duties to the best of her /her ability in accordance with the hi ghest professional a nd ethical standards of the 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 ma y create a n incompatibility of office as defined under Ca lifo r nia law. Prior to performing any servi ce under this Agreement and annually thereafter, EMPLOYEE shall compl ete and file a l l disclosure forms required by law. 2. TERM A. The term of this Agreement s hall be from July 1, 2013 until terminated by either party in accordance with the provisions set f orth i n Page 1 of 7 paragraph 3., or until t erminated by t he eve nt of the deat h or permanent disabil ity of EMPLOYEE . B. E!VJPLOYEE agrees to remain in t he exc lus ive empl oy o f the CITY during the t e r m o f this agr eeme nt. Howe ver , EMPLOYEE may eng age in occasio:1a l t eachi ng, wd ting , o r consult ing per formed on EMPLOYEE' S tir.1e o f f so long as such actl vi t i e s do not e ither i:Jterfe re v.; i th EMPLOYEE'S p erformance of h i s/ l1er d ut ies hereunder, o r co:1f lic t wi t h EMPLOYEE'S obligatio n t he CITY. F.: MPLOYEE agrees that such acti vi ties a r e t o be subjec "': to pr i o r approva l of the CI TY ADMI!\! I STRATOR . 3 . HOURS OF WORK A. It i s recognized that EAPLOYEE must de vot e a gr e at d eal of time ou t side nor mal business h ours t o t ho b usiness t h e CI TY, and to that end Et!PLOYEE wi ll wo rk a f .l e xib l e work schGdul 2 as determined and agreed t o between the EMPLOYEE and CITY 4. RESIGNATION AND TERMINATION A. EMPLOYEE may r esign ADMI NIST!{A'I'OH with a"t: l east thirty e ff e cLi ve date o f r es ignat ion. at (3 0 ) any t i me upon p r ovidi ng CITY da y s advance written no t ice the D. CI TY ADMI NISTRATOR may at any t ime terminate EMPLOYEE upon thirty (30) days a d vanc e wr itten not i c e. C. The parties recogni ze and af firm that : 1 ) EMPLOY8E is an " at will '' empl oyee whose e mployme nt rnay b e t e rminat ed by the CITY ADMINI STRATOR wi thout c ause o r right of appeal; and any f orm e xclusi v e CITY. 2 ) There is no express or i mplied promise mdde to EMPLOYEE for o f This is the sole and basis f or a n e mployment r e lat ionshi p between EMPLOYEE and tho 5 . SEVERANCE PAY A. Except as pro v ided i n paragraph 5.8. of this Agreement , if EMPLOYEE is terminated by the CI TY ADMINI STRATOR whi l e sti ll '..Ji lling and abl e to perform tho duties o f 1\dministrat i ve Services Di rector, CITY agrees to pay E:MPLOYEE a cas h payment equal to 120 day s of tho the n current, sal ary and benefit s . Said payment s ma y :Oe paid, a t the opti on Pa ge 2 of 7 of the EMPLOYEE in: 1) lump sum upon date of termination; 2) lump sum on January 1 of the calendar year following termination; or 3) four equal monthly installments. Such payment shall release the CITY from any further obligations under this Agreement. B. In the event EMPLOYEE is terminated because of his/her convi ction of any felony, or any crime involving moral turpitude, or any offense involving a violation of his/her official duties or if the CITY determines that the EMPLOYEE has: 1) misappropriated public funds; 2) commingled publ ic funds with his/her personal funds; 3) engaged in willful corrupt conduct in office; or 4) conducted hims elf/herself 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 cont inue 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 $155,450 in salary per annum f or her services, payable i Y1 installments at the same time as ot her employees of the CITY are paid, and subject to customary withholding . B. The EMPLOYEE's salary may be adjusted based on adjustments to the City's Salary Struc ture. C. Thereafter a nd subject to an evaluation of performance on the performance review, the CITY ADMINISTRATOR may i ncrease EMPLOYEE'S compensation without the need to amend this Agreement. 7 . RETIREMENT A. Employee will pay up t o 8% of the member (employee} contribution for retirement. B. Employee will pay 3% of the employer cont r ibuti on f or retirement. 8 . AUTOMOBILE ALLOWANCE A. The CITY agrees to pay EMPLOYEE $484 per month aut omobile allowance to cover expenditures related to utilization of a personal vehicle whil e conducting City business. 9. SUPPLEMENTAL BENEFITS Page 3 of 7 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 t i me to time except for the following: 1. The CITY shall contribute the equivalent of 85% of the CalPERS CHOICE premium on behalf of the EMPLOYEE and her qualified dependents for medical insurance available through the CalPERS Health Insurance Program The EMPLOYEE shall be able to choose insurance benefits from all available CalPERS Health plans including PPO Plans for the term of this Agreement unless otherwise amended by the CITY ADMINI STRATOR and EMPLOYEE. 2 . The CITY shall provide dental and vision coverage through the CITY's current self -funded prograns, until and unless otherwise amended between the CITY ADMINISTRATOR and EMPLOYEE. 3. EMPLOYEE shall accrue eight ( 8) hours per month of sick leave , subject to the Carmel-by-the-Sea Municipal Code Sections 2. 52. 660 through 2.52.685. 4. Employee shall accrue sixteen (16) hours per month of vacation leave. 5. EMPLOYEE shall be entitled to eighty ( so) 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 a bility 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. B. With the above exceptions all other actions t a ken by the ClTY ADMINISTRATOR relating to benefits for executive management employees shall be considered actions granting the same benefits t o 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 is entitled to $1, 000 per year tuition reimbursement upon the prior approval of the City Administra t or in pursuit of a Bachelor or Masters degree. EMPLOYEE must submit a receipt of the tuition payment and achieve a passing grade of C or better to receive the tuition r eimbursement. Page 4 of 7 10. DEFERRED COMPENSATION CONTRIBUTION The City shal l make a $350 pe r pay period contribution t o a 457 Pl an o f the EMPLOYEE's choice. 11 . PERFORMANCE EVALUATION A. CITY ADMINISTRATOR shall eval uate EMPLOYEE'S performance at least annually. As part of such annual per formance eva luation the CITY ADMINISTRATOR and EMPLOYEE shall set goals a nd objectives f or the ensuing year. 12. RELOCATION ASSISTANCE A. CITY agrees t o pay EMPLOYSE actual costs not to exceed $5 , 000 to offset all costs EMPLOYEE incurre d in relocat ing herself to the Carmel-by- the-Sea a r ea . Such payment shall be made within thi r ty ( 30 ) days of EMPLOYEE'S start of work. 13. BUSINESS EXPENSES A. CITY agr e es t o pay f or r easonable CITY- related business expenses incurred by EMPLOYEE in accordance with CITY pol i cy . 14 . DUES, SUBSCRIPTIONS, MEMBERSHIPS A. CI TY shall pay such professional dues , subscriptions and memberships in s uc h orga nizations necessary f or EMPLOYEE to maintain professional relationships in appropriate national , regional, state and local associations des ira ble f or continued professional growth, advancement and benefit t o CITY. 15. NOTICES A. Any notices required by this Agreement shall be in writing and either given in pe rson or by first-class mail with the postage prepaid and addressed as f ol l ows: TO CI TY : J ason St ilwell City Administrat or Page 5 of 7 TO EMPLOYEE: 16. DISPUTE RESOLUTION City of Ca r mel -by- the- Sea City Hall P.O. Drawer CC Carmel - by-the-Sea, CA 93921 Susan Paul 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 prevai ling in such action shall be entitled to a reasonable attorney's fee which shall be fixed by the judge, mediator or arbi trator hearing the case and such fee shall be included in the judgment t ogether with all costs. 17 . ARM' S LENGTH NEGOTIATIONS A. This Agreement has been negotiated at arm' s length and between persons sophisticated and knowledgeable in the matters dealt wi th in thi s Agreement. Accordingly, any rule of law (including Cali fornia Civil Code 1654) or legal decision that would require interpretation of the ambiguities in this Agreement against the party that has d r afted it is not applicable and is hereby waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the purposes of the pa r ties in this Agreement . 18. DUTY TO DEFEND A. Upon request of EMPLOYEE, and subject to the provisions of California Government Code Sections 995.2 and 995 . 4, CITY shal l defend EMPLOYEE in any civil action or proceedi ng brought against him/her, in his/her official or individual capac ity o r both, on account of an act or omiss i on in the scope of his/ her employme nt as an employee with CITY except for civil, criminal or administrative a ction initiated by EMPLOYEE . 19. ENTIRE AGREEMENT A. Thi s Agreement is the f i nal expression of the complete agreement of the parties with respect to the matters specified herein and supersedes Page 6 of 7 all prior oral or written this Agreement cannot be signed by the parties. 20. ASSIGNMENT understandings. modified except Except as by written prescribed herein mutual agreement A. This Agreement is not assignable by either the CITY or the EMPLOYEE. 21. SEVERABILITY A. I n the event that any provision of this Agreement is held or determined to be illegal or void by reason of final, non- appealable judgment , order o r 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 inseparabl e from the remaining portion of the Agreement . 22 . COUNTERPARTS A. This Agreement shall be executed simultaneously in two counterparts and eac h of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF this Agreement i s signed and executed and duly held attested by the City Clerk, the CI TY ADMINISTRATOR, and EMPLOYEE. CITY OF CARMEL- BY-THE- SEA Page 7 of 7