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HomeMy WebLinkAbout11.D.1. Approval of City Administrator Employment Agreement 10111111 General Business 11. D. 1. Sf-IAKOPEE TO: Mayor and City Council FROM: Kris Wilson, Acting City Administrator DATE: 05/19/2015 SUBJECT: Approval of City Administrator Employment Agreement Action Sought The Council will be asked to approve an Employment Agreement with Mr. William Reynolds who has been selected to fill the City Administrator position. The agreement was drafted by City Attorney Jim Thomson and was under final review as of Friday, May 15. The document will be provided to Council members in advance of the May 19 meeting and will be a public document following Council approval. Requested Action The Council is asked to authorize the appropriate officials to enter into the negotiated employment agreement with Mr. William Reynolds for the position of City Administrator. CITY ADMINISTRATOR EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into as of May 19,2015 by and between the CITY OF SHAKOPEE, MINNESOTA, a municipal corporation ("City") and William Reynolds ("Employee"). RECITALS A. The City is a municipal corporation in the State of Minnesota. B. The City desires to employ Employee as its City Administrator and to provide sufficient inducement for him to remain in such position and to encourage effective, professional and efficient execution of the City Administrator's responsibilities. C. Employee agrees to serve as City Administrator on the terms and subject to the benefits, inducements, and conditions agreed to by the Parties, which have been negotiated and agreed to by the Parties for their mutual benefit. NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements set forth in this Agreement,the City and Employee agree as follows: SECTION 1 -RECITALS The Parties accept and acknowledge the recitals as part of this Agreement. SECTION 2-DUTIES The City will employ Employee as City Administrator of the City to perform the functions, duties and powers of the position as established under Minnesota law and under the ordinances of the City, and to perform such other duties and responsibilities as shall from time to time be duly assigned by the City Council. Employee will faithfully and diligently perform all of the duties, responsibilities and powers so vested, delegated, or assigned, and shall obey all laws of the United States and of the State of Minnesota and all ordinances of the City. Employee will devote full time to his duties and responsibilities to the City. Except for teaching, training, and related purposes, Employee will not hold any other employment or perform any services for any other entity or person, other than a member of his family, and will not accept any remuneration therefor, without the prior approval of the City Council. Employee will not engage in any activities or conduct that are foreseeably likely to bring dishonor or disrepute to his position or to the City. SECTION 3-TERM OF EMPLOYMENT Employee will serve as the City Administrator of the City effective June 15, 2015 for an indefinite term. Employee's tenure, service, and authority as City Administrator of the City shall be subject to termination at will by the City Council at any time. Employee may resign from his position as City Administrator at any time by providing 45 days advance written notice to the City 1 Council. SECTION 4—SALARY,RELOCATION COSTS,AND PENSION The City will pay Employee an initial annual salary of $140,000 payable in the same manner as the salaries of other City employees. The City will contribute to PERA in accordance with applicable state law. If Employee opts out of PERA, the City will contribute an equivalent amount into Employee's deferred compensation plan. Employee may also choose to receive part of his salary in deferred compensation in accordance with the City's policies and applicable state and federal laws. Employee's salary will be adjusted annually by the City Council beginning on January 1, 2016. Unless the City Council determines otherwise, Employee shall receive the same annual percentage salary adjustment as other non-union employees of the City. The City recognizes that Employee and his immediate family will incur moving and relocation expenses in relocating to the City. Employee will be reimbursed for actual out of- pocket moving and relocation costs up to a maximum of$12,000. The costs must be incurred no later than December 31, 2016. If Employee's employment with the City ends for any reason before that date, Employee will pay back to the City 50%of the reimbursed expenses previously paid by the City. SECTION 5—GOVERNMENTAL,CIVIC AND PROFESSIONAL ASSOCIATIONS The City will pay the professional dues and subscription fees of Employee in or to such national, regional, state, civic, and local governmental and professional associations and organizations, including institutions of higher education,that are reasonably necessary and desirable for Employee's professional participation, advancement, improvement and growth, and which will benefit his service to the City,as may from time to time be approved in advance by the City Council upon Employee's written request. The City recognizes the desirability of representation in and before local civic and other local organizations. Employee is authorized to become a member of Rotary and such other civic clubs or organizations as deemed appropriate by him and at the City's expense. The City will pay Employee's dues and fees for membership in the ICMA and Minnesota City/County Management Association. SECTION 6-PROFESSIONAL DEVELOPMENT AND TRAVEL (A) The City will pay or reimburse Employee for his reasonable time and subsistence expenses in attending meetings and events at which Employee represents the City, or which are reasonably necessary or desirable for Employee's professional development, or which are reasonably required by reason of Employee's membership in an organization,association or committee thereof for which membership the City pays Employee's or the City's dues. Travel expenses for the annual conferences of the League of Minnesota Cities, Minnesota City/County Management Association, and ICMA are specifically approved. Out-of-state travel for other purposes, including ICMA committee meetings, shall be subject to the prior approval of the City Council. The City shall budget and pay the travel and subsistence expenses of Employee for professional and official 2 travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other committees that Employee serves as a member. Employee shall use good judgment in his outside activities so he will not neglect his primary duties to the City. (B) The City will pay or reimburse the reasonable travel and subsistence expenses of Employee for attendance at short courses, institutes and seminars relating to municipal government and management that are reasonably necessary or desirable for Employee's professional development and which will benefit his service to the City. Employee will not attend any such course, institute, or seminar out-of-state if an equivalent or comparable course, institute, or seminar is offered in Minnesota. Out-of-state travel expenses of Employee under this sub-section shall be subject to the prior approval of the City Council. (C) The amounts and rates for reimbursement or payment of Employee's travel and subsistence expenses shall be determined in accordance with regulations applicable to all City employees adopted by the City Council as part of the City's Personnel Handbook. SECTION 7-AUTOMOBILE AND EXPENSES The Employee will be paid a car allowance of$500 per month to compensate him for all driving on City business. SECTION 8-SEVERANCE PAY UPON TERMINATION (A) The City will give Employee 45 days' notice before termination and upon Employee's termination, the City will pay Employee a severance payment equal to six months' salary, If, however, Employee is terminated for malfeasance in office, willful neglect of duty, bad faith, or other just cause,Employee shall not be entitled to any prior notice of termination and shall not be entitled to any severance payment. Nothing in this provision is intended to alter Employee's status as an at-will City employee. (B) If Employee is unable to perform his duties and responsibilities for an extended period of time (not less than 3 months)due to illness, injury,or other cause beyond the ability of Employee to correct,the City may,but is not required to,pay the severance pay authorized in subsection 8(A). (C) Upon the occurrence of any of the following events, and upon Employee's giving written notice within thirty days after such event to the City Council resigning his position and employment, the Employee shall be deemed terminated and thus entitled to the severance pay authorized in subsection 8(A). (i) final action by the City Council to reduce the salary or other financial benefits of Employee in a greater percentage than applicable across-the-board reduction for all non-union City employees; (ii) refusal by the City, after written notice to the City Council, to pay any financial 3 benefit to which Employee is entitled to under this Agreement;or (iii) any express indication by a majority of the City Council that Employee will be terminated, or that Employee should resign, or that Employee has violated or failed to comply with any provision of Section 2 of this Agreement to an extent warranting termination of Employee as City Administrator. (D) If Employee resigns for any reason other than in accordance with subsection 8(C), he shall not be entitled to any severance pay, but the City will pay his salary and all benefits until the effective date of his resignation. SECTION 9-OTHER TERMS OF EMPLOYMENT (A) Except as otherwise specifically provided in this Agreement, all provisions of the City ordinances and the City's Personnel Handbook generally applicable to non-union City employees with respect to accrual of sick leave and vacation, holidays, and other terms and conditions of employment shall apply to Employee. Upon leaving the City's employment for whatever reason, Employee shall be entitled to payment for all of his accrued vacation time, and payment for his unused sick leave in accordance with the then existing City policy for non-union City employees. (B) Upon commencement of employment with the City, Employee shall be credited with 80 hours of accrued vacation time. Thereafter, he will accrue vacation time pursuant to the City's vacation accrual schedule for exempt employees. For purposes of accrual of vacation time only, Employee will be deemed to have been a City employee for five years as of June 15,2015.Pursuant to the City's current vacation accrual schedule, he will therefore accrue 120 hours annually of vacation time during his first year of employment and 160 hours annually as of June 15,2016. (C) Employee shall be entitled to all insurance and other fringe benefits that the City generally provides to non-union City employees in addition to the benefits provided to Employee under this Agreement,except as is specifically provided with respect to severance pay under Section 8. (D) The City shall defend, indemnify, and hold harmless Employee against any and all civil claims, demands, suits, actions or proceedings of any kind or nature arising out of the performance by Employee of his duties and responsibilities as City Administrator, except those arising out of malfeasance, willful neglect of duty, or bad faith. This indemnification shall not apply to any criminal proceedings. (E) The Employee will not be required to reside in Shakopee. (F) Upon commencement of employment with the City,Employee shall be vested with 40 hours of accrued sick leave. Thereafter,the Employee shall accumulate sick leave at the same rate and in the same manner as other non-union employees of the City. (G) The City will reimburse Employee for miscellaneous job-related expenses that Employee incurs from time to time in accordance with the City's practice and policy for expense 4 reimbursement for non-union City employees. (H) It is understood that the position of City Administrator requires attendance at evening meetings and occasionally at weekend meetings. Employee understands that additional compensation or compensatory time shall not be allowed for such additional expenditures of time. Employee may absent himself from the office to a reasonable extent in consideration of extraordinary time expenditures for evening and weekend meetings. (I) Nothing in this Agreement prevents, limits or otherwise interferes with the right of the City to terminate the services of Employee at any time, for any reason, subject only to the provisions of this Agreement and legal requirements. Furthermore, nothing in this Agreement prevents, limits or otherwise interferes with the right of Employee to resign at any time from his position with the City, subject only to the provisions of this agreement. SECTION 10-GENERAL PROVISIONS (A) Whenever in this Agreement reference is made to any action of the City Council, such reference shall mean collective action in an official meeting except insofar as such action is taken by ordinance,unless the context clearly requires another meaning. (B) The City will make reasonable appropriations and will budget reasonable amounts, in accordance with law and with the City ordinances,for all benefits,payments and reimbursements to which Employee is entitled under this Agreement. (C) This Agreement shall constitute the entire agreement of Employee and the City, and shall supersede any prior agreements,understandings,or undertakings between them. (D) This Agreement shall be governed by and shall be construed in accordance with the laws of the State of Minnesota and the ordinances of the City. (E) This Agreement shall be binding upon and shall inure to the benefit of the heirs, executors, and administrators of Employee's estate. (F) If any section, provision, condition or term of this Agreement, or application thereof to any circumstance, shall be held to be invalid or unenforceable for any reason by any court of competent jurisdiction,the remaining portions or applications hereof as can be given effect without the invalid or unenforceable provision or application shall remain in full force and effect, and to this end the provisions of this Agreement are declared to be severable. The City and Employee have approved and executed this Agreement as of May 19,2015. William Reynolds Brad Tabke, Mayor 5