To: Timothy J. Carmel Page 203 2014-1229 22:56:58 (GMT) From: Roger Frederickson FREDERICKSON Pic, LLP 1755 Sawa Rosa Sraze, SUrrz 300 Sax Luis Onisro, CA.93401, ‘Prion 805-541-4900 * Fax 805-617-1827 ‘WHW.MRIDERICKSONPICH.COM December 29, 2014 Timothy J. Carmel **By Facsimile and Regular Mail** Carmel & Naccasha LLP 1410 Marsh Street San Litis Obispo, CA 93401 Fax: (805) 546-8015 Dear Mr. Carmel: T have been asked by Mr. Steve Adams to address with you and the City Council his recent termination and his entitlement to severance as a result Pursuant to the terms of his contract with the City, Mr. Steven Adams is respectfully requesting the City issue his severance payment. Section 6.B of his contract states that "in the event the employee is terminated by the City Council during such time that Employee is willing and able to perform his duties under this Agreement, then, in that event, City agrees to pay Employee a Jump sum cash payment equal to six (6) months salary and benefits in effect at the time of termination (limited to the following: PERS, medical, dental, and vision insurance)." At the November 19, 2014 meeting, the City Council placed Mr, Adams on administrative leave pending employment of an Interim City Manager. Mr. Adams had previously offered to resign once the formal recruitment process was complete and the new permanent City Manager was hired and trained. At the November 19 meeting, the City Council prematurely accepted Mr. ‘Adams’ resignation, having yet to permanently fill his position. ‘While the recruitment process was approved by the City Council at the October 28, 2014 mecting, as far as Mr. Adams is aware, no one has yet to be hired, ‘Therefore, by its November 19 action, the City Council unilaterally terminated Mr. Adams. Subsection 6.C of his contract with the City states that if "employee resigns following a formal suggestion by the City Council that he resign, then, in that event, Employee may, at his option, be deemed to be terminated" and the provisions of Section 6B apply. Mr. Adams deems the City Council’s preinature acceptance of his resignation as a termination, and is therefore entitled to the severance provided by 6.B of the contract. Rooen B.Frupmucxson. Mucus R Prox Js. Rocea@FrpenicxsonPicx.com Macyam@FrapencesoxPice-comTo: Timethy J. Carmel Page 3 ors 2014-1229 22:56:58 (GMT) From: Roger Frederickson Frapeurcxson Pick, LLP Drcmener 29, 2014 Pace a oF 2 Mr. Adams has been a dedicated employee and has appreciated his time serving as the City Manager of Arroyo Grande. He hopes to end this relationship in an amicable manner and supports the efforts necessary to recruit a new qualified city manager so the City ean continue to ‘be successful. The best way to accomplish this is to simply honor the terms of the contract that ‘were agreed to by both parties at the time Mr. Adams was employed and as updated on ‘April 22, 2014. Failing to honor the terms of his contract will leave Mr. Adams in the uncomfortable position of having to consider potential litigation. ‘Thank you for consideration of our request. Please let me know if you need any additional information in order to proceed. Sincerely, a B, Frederickson RBF/hp ce: Cliont (by electronic mail only) ‘Room B, Frapmucsson Maca, R Pro fa. Room @ FaspmncxsonPice.cou Mico @FasmmucrsonPiex couTo: Timethy J. Carmel Page 2 of 2 2018-01-14 22:41:09 (GMT) From: Roger Frederickson Frepericxson Prox, LLP ‘735 Sancta Rosa Semen, SUITE300 ‘San Luts Ostseo, CA 93401 Priowe 805-541-4900 “Fax 805-617-1837 “WWFW.FREDERIGESONPICH.COM January 14, 2015, ‘Timothy J. Carmel **By Facsimile and Regular Mail** ‘Carmel & Naccasha LLP 1410 Marsh Street San Luis Obispo, CA 93401 Fax: (805) 546-8015 Dear Mr. Carmel: Tt has been over six weeks since my initial telephone call and over two weeks since my correspondence sent on behalf of my client Steven Adams involving his request to be issued bis ‘severance pay under the provisions of his contract with the City of Arroyo Grande. As of the date of this correspondence, no response has been received. tis our understanding that Mr. Adams is no longer on paid administrative leave or employéd by the City of Arroyo Grande, although there has been no correspondence or communication to confirm this. We request that the severance pay be issued or a response be received no later than January 28, 2015. We will be making a determination whether it is necessary to pursue litigation at that time. Based upon the action taken by the City Council, it is our understanding that Mr. Adams’ employment with. the City is terminated effective on January 14, 2015. Therefore, per the provisions of his contract, the severance payment shall ‘be equal to six months’ salary and benefits (as described in his contract) from this date. ‘Thank you for your attention to this request. I encourage you to contact me as soon as possible in order to answer any questions you have and/or to discuss how best to resolve this matter. Sincerely, ‘Roger B. Frederickson RBF/hp Client (by electronic mail only) Roass B.FruDEsscxson MaceianR Pro Je Roors@)FurnemscxsonPscx com Macias @FREDERICESONPICK.CONCITY OF ARRoYO GRANDE CALIFORNIA January 15, 2015 Via E-mail and U.S. Mail tcarmel@carnaclaw.com Roger B. Frederickson Frederickson Pick, LLP 755 Santa Rosa Street, Suite 300 San Luis Obispo, CA 93401 foger@/redericksonpick.com RE: Steve Adams Employment Matter Dear Mr. Frederickson: This is to acknowledge receipt of your letters of December 29, 2014 and January 14, 2015 in the above referenced matter. I had hoped to meet in closed session with the City Council to discuss this matter, but scheduling conflicts prevented me from doing so. It is my intent to meet in closed session at the January 27, 2015 regular meeting, at the latest. We will respond to your letters by no later than January 28, 2015. ‘Thanks for your consideration. Weel ce: City Council (by e-mail only) Bob McFall, Interim City Manager (by e-mail only) GAGE OF THE GHTY ATTORNEY 40 Marsh Stee, San tals Obispo, calfonia 95401 hone: (805) 546-8785 + FAX: (805) 646-8015 + E-Mall: agcity@arroyogrande.org * Website: www.arroyogrande.org