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HomeMy WebLinkAbout10E - City Manager Employee Agreement MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT November 17, 2008 10 E Kelly Meyer, Asst. City Manager CONSIDER APPROVAL OF THE CITY MANAGER'S 2007/2008 PERFORMANCE EVALUATION AND AUTHORIZING THE MAYOR TO EXECUTE AN EMPLOYMENT AGREEMENT WITH CITY MANAGER FOR 2008 AND 2009. Introduction: The purpose of this agenda item is to formally approved the 2007/2008 performance evaluation completed by the City Council, and consider the extension of the City Manager's employment agreement and 2008/2009 compensation adjustments. Historv: The City Manager is an at-will employee appointed by the City Council. Terms of employment for the City Manager are set out in an employment agreement approved by the City Council annually. Frank Boyles was appointed as the Prior Lake City Manager in 1993 and is now approaching his 16th year with the City. Each year, the City Council is responsible for conducting a review of the City Manager's performance, and at that time may also evaluate the existing compensation package. Current Circumstances: In 2008, Mayor Haugen and Councilor Hedberg served as the appointed members to the Manager Evaluation subcommittee that would facilitate the review process and make any recommendations regarding compensation. The subcommittee undertook a process to significantly update and refine the performance evaluation form so that it evaluated not only personal and administrative skills, but also progress toward the 2030 Vision and Strategic Plan goals. This written evaluation process was completed in July 2008, and the results discussed with the City Manager in Executive Session on July 7,2008. A copy of the evaluation is attached. The City Manager was rated well above average in all responsibility areas. Conclusion: The subcommittee has now evaluated options and proposed a compensation package related to this review. The recommendation is outlined below. Councilors should review the materials and determine if the recommendation is appropriate. Mayor Haugen and Councilor Hedberg are also available to answer questions. The majority of the City Manager's employment contract remains unchanged. The proposed employment agreement is attached and recommends the following contract changes: Contract Term: January 1,2008 through December 31,2009. Because the Manager's performance review process took time to update and complete, many of the comments of the Councilors included performance for not only 2007, but January 2008 throug~.~gyAA<WmkeT85ffiubcommittee does not believe that there Phone 952.447.9800 / Fax 952.447.4245 have been significant performance issues that would change the overall rating of the last review, and are recommending that an additional evaluation for the remainder of 2008 not be conducted, and that the Council take action related to compensation for both 2008 and 2009. The Council does have the flexibility under the contract to conduct quarterly evaluations if desired. Comoensation: The revised contract proposes a 2.5% increase to the City Manager's base salary for 2008 and for 2009. Year 2008 I 2009 Base WaQes (in dollars) $114,207 . $117,062 All other employee groups within the City received a 3% cost of living increase in 2008. While the increase proposed is not necessarily commensurate with the Council's high regard for the City Manager's performance, the subcommittee did considered a number of external economic factors in reaching its recommendation: 1. The forecast for an on-going economic downturn nationally; and 2. In response to a downturn in building permit activitylrevenues, the City proactively took steps to reduce budgeted personnel in 2008 by 4.5 full-time equivalent positions; 3. Clerical, technical & maintenance employees represented by the AFSCME bargaining unit are settled for 2009 and 2010 at a 2.5% increase to their salary ranges, with a maximum increase for only those employees not at the top of their ranges of 5%. 4. City efforts to propose a 2009 budget with minimal operational increases and little or no additional impact on municipal property taxes. Mn Stat. 43A.17, subd.9 provides that the maximum compensation for a municipal manager (inclusive of any deferred compensation contributions and car allowance) without applying for a waiver for 2008 is $144,711. The City Manager is well within this limit with the proposed increase. Tenure Adiustment: In recognition of his long tenure with the City, the City Manager receives compensation equivalent to 6 days pay for each year over 10 years. In the past, the City has made direct contributions for tenure into the City Manager's deferred compensation account. At this time, there are some tax and PERA advantages of converting City contributions for tenure into salary, and allowing the City Manager to make the pre-tax contributions to deferred comp on his own. A new State statute also provides that the City cannot make contributions to deferred comp in excess of $10,250 annually. The City Manager would exceed that threshold if tenure is included as a deferred comp contribution directly. The language proposed in the contract does not increase or decrease the benefit as it was adopted, only the way it is paid. PERA: The plan currently requires a 6.5% employer contribution. This is consistent with all other non-police/fire employees. The contract has been revised accordingly. Pavment of Vacation & Sick Pav at Seoaration: The City's Retirement Health Savings Plan requires that any balance of vacation and sick leave be deposited directly into the Manager's retirement health savings account. In order to maintain some flexibility to take a portion of those dollars in cash, the language has been amended to provide that vacation payout can extend to a last date of employment set by the City Manager. All sick leave accrual would be unaffected and still go directly to RHS. This is a change to how the benefit is administered, but does not create additional cost to the City. Other Contract Chanaes: The other changes proposed are housekeeping in nature or have been made to simplify the contract language. The changes are outlined in the draft contract attached and do not have additional cost implications over and above the existing contract provisions. FINANCIAL IMPACT: The compensation package proposed is within the estimates of the 2008 and 2009 budget. ALTERNATIVES: 1. Motion and Second to Authorize the Mayor to Enter into an Employment Agreement with the City Manager for 2008 and 2009 as proposed. 2. Take no action and provide staff with specific direction. RECOMMENDED MOTION: Alternative 1. ReVieWilY: fA ,L /~lN Frank Boyles, C~i CITY MANAGER PERFORMANCE EVALUATION For the Period January 1, 2007 - December 31, 2007 Evaluator: SUMMARY OF COUNCIL MEMBER COMMENTS Date: JULY 2008 PARTI CRITICAL SKILLS 1.1 . COMMUNICATIONS A. WRITTEN COMMUNICATIONS Measures: Effectiveness of letters, memoranda and other forms of written communication to the City Council, other governmental agencies, and the public. Considerations: Does the City Manager make written recommendations on issues as often as you'd like and in the manner you'd like? Is the City Manager providing the Council with adequate information so that they feel informed on critical issues? Are recommendations from the City Manager thoroughly researched and reliable? Are tools like the Weekly Update and e-mail effective ways to communicate with Council members? Can you think of an instance where you were not comfortable with the written information of the City Manager or his staff? Is correspondence with the public and governmental agencies clear, concise and understandable? Requires Immediate Improvement Needs Attention Meets Standards Element of Stren th Distinct Strength Rating 2 3 4.2 5 Comments and Suggestions for Improvement: City Manager does a good job providing information as needed. Takes time to use several forms of communication to relay info. (i.e. email or voicemail). Frank writes clearly and summarizes issues in keeping with the different levels of understanding and processing style of the intended audience. Questions are addressed in clear ways. I have experienced a couple of instances in which my viewpoint was not captured accurately, in Council meeting minutes or in updates and informational exchanges. Frank does a great job of communicating with the Council. B. ORAL COMMUNICATIONS Measures: Facility for presenting technical data and other information in a clear, concise and understandable manner to the City Council and general public. Considerations: Is material presented in an understandable manner? Does the City Manager communicate with the public tactfully and effectively, providing excellent customer service? Is the City Manager effective in conveying the City position in small work groups? in larger work groups? to the media? Does the City Manager verbally promote Prior Lake to community organizations through public speaking and cable television? Requires Immediate Improvement Needs Attention Meets Standards Element of Stren th Distinct Strength Rating 2 3 4.2 5 CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Comments and Suggestions for Improvement: Frank does very well for the community at large, however I feel the City can always do a better job at this. Frank conveys messages concisely, and distills complex information down to understandable bites. Also selects the appropriate language for the selected audience. On occasion I hear Frank defending the status quo, especially with the public. In this type of situation, Frank's communications lean too far on the side of defending the City, in my judgment. Frank uses all areas to communicate, and has expanded areas of communication. C. AVAILABILITY Measures: Maintains accessibility to the City Council, the City staff, and the general public. Considerations: Is the City Manager sufficiently available to Councilmembers and staff in person or by phone on work days, evenings and weekends? Does the City Manager make an effort to be accessible to residents? Is the City Manager active in the community on a personal level? Has the City Manager established a positive relationship with the public and the media? Requires Immediate lr:T.1provement Rating 2 3 Element of StrengJOm' 4 Distinct Strength Needs Attention Meets Standards 5 Comments and Suggestions for Improvement: Frank is available any time or place. Frank makes himself available with great flexibility. He responds to questions and concerns promptly I see him similarly act with promptness and urgency to respond to issues or concerns from residents as well. He's a role model for the City staff in this regard. Frank is always accessible! 1.2 ADMINISTRATION A. PROBLEM SOLVING & DECISION MAKING Measures: Ability to recognize problems, determine relevant facts, provide recommendations for City Council action, and formulate alternative solutions to issues. Considerations: Does the City Manager process information effectively to learn new material, identify and define problems and make a decision? Does he look for alternative solutions? Can he make timely, sound decisions even under conditions of risk and uncertainty? Is he informed about organizational policies and procedures? Requires Immediate mlr:T.1pr9Y~r:T.1~Qtm+m Rating 2 3 Element of Str~Qgthmm 4 Distinct Strength Needs Attention Meets Standards 5 Comments and Suggestions for Improvement: This is very subjective, but I think Frank does a good job at this, although I don't always agree with the recommendations. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Frank is quick to provide solutions to problems. Frank moves the staff toward effective solutions on all the problems fitting into the normal range of issues facing the City, even those with complex, long-term scope. In addition, Frank organizes the day-to-day activities of the City for efficient execution, getting strong results with limited resources. But, I find that his viewpoints tend toward the conventional, and outside forces generally are those stimulating innovative solutions to the most challenging situations. B. PLANNING Measures: Ability to plan, organize and maintain a process of establishing, monitoring and providing status updates on long-term goals as articulated in the 2030 Vision and other City planning documents. Considerations: Is the City Manager only approaching the job from a day-to-day standpoint or are his efforts directed toward broad City Council objectives? Can you think of a broad City objective which you feel is not managed well? Requires Immediate Improvement Needs Attention Meets Standards I Element of Im$tr.~Ogth 4.4 Distinct Strength Rating 2 3 5 Comments and Suggestions for Improvement: Frank's use of established planning tools is a real strength, even distinctive. We rarely experience surprises due to cost overruns, unanticipated expenditures, serious budget issues, or financial weaknesses. But, on day-to-day decisions Frank tends to defer too much to the shifting priorities of the elected officials. Frank keeps an open mind to all ideas. He must continue to fine tune organizational chart and structure. I think the question is difficult, it is a juggling act and I think Frank performs this well. C. PERSONNEL ADMINISTRATION. FOllOW-THROUGH & SUPERVISION, Measures: Recruits, retains and organizes effective staff to get the City's work complete. Demonstrates ability to implement direction provided by City Council and obtain long-term goals of the City on an appropriate timeline and with efficiency. Supervises personnel, programs and services effectively. Considerations: Can the City Manager be depended upon for sustained, productive work? Does he readily assume responsibility? Can he then be depended upon to follow through when asked to do something? Can you give an example of when he didn't? Does he assign responsibilities, allocate resources and coordinate the activities of others to meet objectives? Does he make good use of available personnel and talent to get work done? Requires Immediate mlrTlPr.9.yement .................+ Element of m$tr.~Qgth 4.4 Distinct Strength Needs Attention Meets Standards Rating 2 3 5 Comments and Suggestions for Improvement: Very positive Realignment. A "5" for good retention of key people. Continued development of Communications Coordinator and Economic Dev. Director. Frank does a great job in staff supervision. Frank has assembled a very good team. Team always completes tasks on time and with a positive attitude. At times Frank waits too long to move in a different direction. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 Frank ensures that tasks undertaken get properly assigned and executed efficiently. I always find the documentation of Council directives to be an effective tool. The reorganization of the City staff proactively addressed budgetary concems highlighted by the Council, while also creatively addressing relative strengths and developmental concerns among various staff. D. BUDGETING Measures: Presents a comprehensive annual budget and capital improvement program consistent with the 2030 Vision and Strategic Plan and direction of the City Council. Administers the budget within the approved limits and recommends financial strategies and options to the Council. Considerations: Does the City Council understand the budget and support the overall financial direction the City Manager is providing? Is the City Manager effective in identifying funding sources and matching the needs of the service area to available resources? Requires Immediate Jl"Dprqvement Rating 2 3 Element of m$tr~Qgthm 4.6 Distinct Strength Needs Attention Meets Standards mm..................................................! 5 Comments and Suggestions for Improvement: Frank does a good job, but again, a balancing act because some on the Council have different ideas to their budget approach. Frank has done an excellent job of staying within the parameters of the budget. Must be even more involved with the exit of CFO. We spend at or below the budgeted amounts, and take in at or above the budgeted revenue in most years. I am especially impressed with the use of dedicated funds, fees, and allocations to provide for long term requirements at lowest possible budget, debt load, and taxpayer impact (Equipment Matrix, Parks Dedications, Utility funds, Parks Equipment Matrix). 1.3 PERSONAL SKILLS A. LEADERSHIP Measures: Represents the City by portraying a positive image with the public and other governmental entities. Provides a positive example in word and action for staff members. Directs work plans of managers effectively and obtains optimum effort from personnel. Considerations: Does the City Manager take charge and initiate actions, directing the activities of individuals and groups toward the accomplishment of the 2030 Vision and Strategic Plan? Can he adapt his leadership strategy to different situations? Does he inspire and motivate others? Can he effectively initiate collaborative efforts with other agencies? Requires Immediate Improvement Rating 2 3 Element of Strength 4.2 Distinct Strength Needs Attention Meets Standards 5 Comments and Suggestions for Improvement: I consider Frank's staff leadership to be a real strength. The City staff shows dedication, commitment, and a uniformly high level of engagement & morale. I don't feel Frank's degree of deference to the Council and Mayor to be best for establishing long term momentum in the development of the City. I believe he CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 should more proactively engage in setting long term directions that may tend to survive changes in elected administrations. Great Job. Frank has the unique ability of having a light-hearted attitude and yet still gets the respect of his team. B. ADAPTABILITY Measures: Ability to respond appropriately and confidently to the demands of work challenges when confronted with changes, ambiguity, adversity, or other pressures. Considerations: Does the City Manager act professionally, rationally and tactfully when confronted with adversity or frustration? Is he aware of his own strengths and weaknesses and can he accept negative feedback constructively? Can he be effective when demands are ambiguous or changing? Is he creative when confronted with obstacles? Does the City Manager effectively accept direction? Requires Immediate Improvement Rating 2 3 Element of Strength 4.2 Distinct Strength Needs Attention Meets Standards 5 Comments and Suggestions for Improvement: Juggling Act -Good Job! Has tendency to avoid conflict. A strength for Frank; he takes in new inputs, including uninformed positions by Councilors, and unreasonable demands from residents, without judgment. He effectively accepts feedback and direction.. However, I periodically hear him privately describe some views dismissively or less positively, even though his outward appearance is nearly always tactful and responsive. Frank shows great ability to think outside the box and not get stuck in doing the same old thing. C. INTERPERSONAL RELATIONS Measures: Ability to interact with the staff, public, and other agencies in ways that enhance understanding and respect, perceiving the needs of others, developing collaborative working relationships, and dealing effectively with conflict. Considerations: Does the City Manager show awareness of and consideration for the opinions and feelings or others? Does he solicit feedback from the City Council, the public, and staff in his decision making process? Can he bring conflict or dissent into the open and use it productively to enhance the quality of decisions? Does he help arrive at constructive solutions while maintaining positive working relationships? Requires Immediate mll1'lprovement Rating 2 3 Element of ....m.......m.....$tr~Qgth....... 4.6 Distinct Strength Needs Attention Meets Standards 5 Comments and Suggestions for Improvement: Sometimes tries too hard to please everyone. Most get along well with Frank, and he goes out of his way to interact constructively with people of widely varying backgrounds and dispositions. One suggestion: he should identify conflicts more openly, and bring them out, rather than letting them play out in a more 'natural' way. Frank does a great job of meeting the expectations and needs of many different personalities. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 D. COMMITMENT Measures: Dedication to the community as a whole and the goals of the City as articulated in the 2030 Vision and Strategic Plan. Considerations: Does the City Manager participate in community-wide events? Is the City Manager available to the public? Is the City Manager a promoter of Prior Lake and its 2030 Vision and Strategic Plan? Does the City Manager make decisions and set priorities with the good of the whole community in mind? Rating Requires Immediate ml!:!lPfQY~'!l~QLm' 1 5 Element of $tf~Qgtbm 4 Needs Attention Meets Standards Distinct Strength 2 3 Comments and Suggestions for Improvement: Excellent Frank is very dedicated to this community; not with just his actions as City Manager, but also as a community volunteer. Frank makes himself available at all levels. Frank consistently shows incredible dedication to his role, putting in long hours to attend meetings, community events, and other City functions. He regularly emphasizes the value of the 2030 Vision and Strategic Plan, and uses it to guide his leadership. PART II 2030 VISION AND STRATEGIC PLAN RESULTS I I 1. I I QUALITY COMMUNITY GROWTH. See enclosed 2030 Vision and Strateqic Plan for sDecific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . Market conditions reduced this to a later priority. Not much applicable in 2007-eariy 2008. That said, initiated a thorough land use ordinance revision cycle in response to the approved 2030 Comprehensive Plan approval. This work will come to fruition later in 2008. . The reduction of growth has brought new challenges that required changes in the structure. . Would like to continue to work on first time homeowner development. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. x ACCEPTABLE PROGRESS MADE YES NO If No, olease explain. 2. HOUSING QUALITY & DIVERSITY. See enclosed 2030 Vision and X Strategic Plan for specific 2-vear objectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . Not applicable and/or important in latest performance period. I I 6. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 I I 3. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. COMMUNITY CAPITAL ASSETS. See enclosed 2030 Vision and X (+) Strategic Plan for specific 2-year obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. · Much investment has been made in infrastructure. Expansion of park system should be a priority. Transportation needs must be met in future. · Fire Station #2 bid out under budget, with opening targeted summer, '08. Water Treatment Plant bid out under budget with opening targeted winter, '09. Late in performance period: initiated 10-year TIP and preparation of Parks Equipment Matrix. · Maintained progress toward finishing the update of all lift stations in the City, with completion of the multi-year effort expected in 2009 (I think). . Frank shows great leadership here. I I 4. I I ECONOMIC DEVELOPMENT. See enclosed 2030 Vision and Strateqic Plan for specific 2-year obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . Market conditions reduced this to a later priority. Not much applicable in 2007-early 2008. . Marginal "yes" . I do think we need to re-evaluate how we promote the community for new economic development. . Needs to look at how staff, elected officials and self can aggressively prospect economic development. . Continued qrowth has occurred. ACCEPTABLE PROGRESS MADE YES NO -1f1Jo. please explain. X I I 5. I I DOWNTOWN REDEVELOPMENT. See enclosed 2030 Vision and Strategic Plan for sDecific 2-year obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . Need to move streetscaping of south side forward. . Need to re-evaluate how we promote the community for new economic development . Marginally acceptable. · Completed Downtown Design Guidelines.. Outside this, lots of effort, but little progress. Prepared for a downtown redevelopment RFP process, but largely got the process 6-12 months ahead of itself. (Marked that unacceptable progress had been made). ACCEPTABLE PROGRESS MADE YES NO If No. please explain. X ACCEPTABLE PROGRESS MADE YES NO If No. please explain. STRONG FINANCIAL MANAGEMENT. See enclosed 2030 Vision X and Strategic Plan for specific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. · Encouraged Finance Director to analyze and prepare the Financial Gold Standards report. Responded productively to achieve directed budget reductions for fiscal 2008. · Engaged and supported SCALE and other initiatives to deliver facilities and resources, leveraging cooperative funding (Blue Xpress, Transit Station, Joint Training Facility, 800 Mhz Fiber Network). · I think Prior Lake shines regarding this subiect. Throuqh Frank and Ralph's leadershiD, the City is doinq very I I 9. I I 10. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 well in this area. . Continued to manaqe assets and resources well. I I 7. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. NATURAL RESOURCES. See enclosed 2030 Vision and Strategic X Plan for specific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . We also shine in this area. . Achieved the acquisition of the Pike Lake property. Oversaw the completion, review, and endorsement of the Master Park Plan (MPP). Reduced development stalled further development of parks resources, and water quality plans and directions are only in early form, with further progress in 200B and 2009. 8. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. SAFE & HEAL THY COMMUNITY. See enclosed 2030 Vision and X Strateqic Plan for specific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . We are making good progress with the new task force. . Established and initiated Community Safety Task Force. Real measure of effectiveness will come in late-OB and 2009. . Initiated and conducted Ethics in Govemment workshops for staff and council. Open question: what longer term impact will come from this initiative? . Safety committee will be asset to community. Need to give direction to committee. . Active neighborhood objective really went no where, with only a generic sUNey of a sample of existing homeowners' associations. Perhaps this might be part of the action objectives from the CSTF. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. TRANSPORTATION. See enclosed 2030 Vision and Strategic Plan X for specific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . Participated in Transit Station program and successful launch of Blue Xpress seNice . We have made good progress in this area this past year. . Manv new road proiects comDleted. Main/21 needs to be a Driority. ACCEPTABLE PROGRESS MADE YES NO If No, please explain. COMMUNICATIONS. See enclosed 2030 Vision and Strategic Plan X for sDecific 2-vear obiectives. Comment (if any): This section should be used to provide feedback or additional explanation regarding the Vision Element progress. . We always can try to improve in this area. . Not applicable and/or important in latest performance period. CITY MANAGER PERFORMANCE EVALUATION For the period January 1, 2005 to December 31, 2005 OVERALL PERFORMANCE Considering the above observations, this is my composite evaluation of the City Manager for this review period: Rating Requires Immediate ImprqY~I'11~nt Element of Streng!hm 4.6 5 Needs Attention Meets Standards Distinct Strength 2 3 The one thing I would like him to do better next year is: o Pro-active and more urgent focus on economic development. o I think we need to re-examine how to encourage more economic development in the community both in our Shopping mall areas, downtown and the industrial park. o Try to gamer a more positive public perception. Now that I've seen Frank from a Councilmember's perspective, I've been able to see his strengths as a City manager (and I correct those who believe otherwise). o Continue to reorganize team and move strong personnel into positions to make us better. FINAL COMMENTS (if any) o Frank has a very difficult job. He needs to be an expert in many areas. He does a good job of delegating responsibility and finding great help. o Overall, Frank does a great job for the City. o Frank is a real asset to the City of Prior Lake. His continuity of leadership through the past three mayoral administrations brings stability of direction. We have benefited from his flexibility, adaptability and administrative strengths. High morale, productivity, and flexibility characterize our staff, and Frank deseNes a full measure of credit for this accomplishment. o I believe Frank's role should evolve a bit toward the CEO type of model over the coming years as Prior Lake grows. This will entail a stronger role in setting strategy and shaping directions, rather than one of responding to others' (the mayor and council) directions. o Frank is energetic and committed to the success of our 2030 Vision. Budget control, staff reorganization and intemal communication is solid. Respect within staff and community is excellent. 3.2 Tenure Adiustment: The City shall annually remit a sum equivalent to six days (48 hours) for each year in excess of ten years that the Manager has worked for the City. The payment shall be paid as wages at the same time as the City pays its City employees, subject to all applicable taxes. Deferred Comoensation: Sections 3.1 notwithstanding, the City Manager shall receive,an.... .' t Deleted: a _ annual contribution to his deferred compensation accountjn an amount equal 103.5% of his . rD~leteci: fO~2007 base compensation. 4646 Dakota Street S.E. IN CONSIDERATION of the tenns and conditions contained herein, the parties agree as follows: 1. Emolovment. During the tenn of this Agreement, the Manager shall serve as City Manager of the City, and shall assume and perfonn, in a conscientious and diligent manner at all times, all of the duties and responsibilities incidental to such position as defined herein and as are reasonably assigned to him from time to time by the City Council. Manager shall use his best efforts in the perfonnance of his duties, and shall spend substantially his full time in connection therewith, except in the event of illness, disability, vacation or other absence permitted by the City. Manager shall work such hours as are reasonably assigned to him by the City Council from time to time. I 2. Term. This Agreement shall be effective as of January 1, .,2008 except as herein specified and. shall continue indefinitely unless or until earlier tenninated as provided in Section 6 below, or until such time as the Manager voluntarily tenninates employment by thirty (30) days written notice. Manager shall remain in the exclusive employment of the City during the tenn of this Agreement. For the purposes of this section, "exclusive employment" shall exclude any teaching, writing, consulting, speaking or military reserve service undertaken by Manager during his non-work hours. Comoensation. As .compensation for services ren~ered.th~ Mana.ger shCiIl receive,the foll()wing: 3. 3.1 Base Salarv: Januarv 1. 2008 throuah December 31. 2008: $114,207 per annum in equal installments at the same time as the City pays its City employees, subject to all applicable taxes. Januarv 1. 2009 throuah December 31. 2009: $117,062 perannum in equal installments at . the same time as the City pays its City employees, subject to all applicable taxes. 3.3 4. Benefits. Manager shall receive the following benefits at no cost to him: (a) Vacation. The Manager's paid vacation accrual shall be 25 days (in addition to the paid public holidays as provided for other City Department Heads). Carryover of unused vacation DN: 209869. v.2 www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 . l De~: 2nd j Deleted: April. 2007 1 f Deleted: 2007 Deleted: base Deleted: from January 1, 2007 through December 31, 2007, Deleted: $111,421.00 Deleted: Tenu", Adiustment: At the outset of each year, the City shall deposit a sum in Managers Deferred Compensation Plan __J J time from one (1) contract year to another shall be in accordance with City policy for Department Heads. Any unused accrued vacation time shall be paid to Manager in cash at termination of employment at the then-existing base rate of pay. (b) Sick Davs. Paid sick days and sick leave payment plan (including initial thirty (30) day bank) in accordance with City policy for Department Heads. Insurance~. Medical, dental and Hetirefllent Health Savings Plan contributionseejuivalent to.... ..' Deleted: Medical contribution of $750,00 th trib t d f th D rt t H d I I C'ty I per month. dental contJibutlon of $40,00 per ose con . u ions ma e or 0 er epa men ea eve I emp oyees. month and Retirement Health Savings Plan contJibutlon of $25,00 per month, (c) (d) Life Insurance. In lieu of term life insurance coverage the City shall pay an annual contribution of $1800 to a universal life insurance policy owned by the Manager. (e) Retirement Plan Contribution. The City shall contribute 6.j50%of Manager's base salary to. . {Deleted: 25 PERA. (~ Car Allowance. $450.00 car allowance per month, plus mobile cellular phone with monthly fees paid for City related activities. (g) Professional DeveloDment. Dues and fees for the following, provided that such items are reasonably necessary to the professional development of the Manager, and subject to City Council approval in the budget process or otherwise: ~ Licenses, joumals, publications; ~ Seminars, conferences and short courses within Minnesota and one seminar/conference per year outside the State of Minnesota; ~ Membership in professional associations and service organizations. (h) Reimbursement of Exoenses. Reimbursement for reasonable and necessary meals, travel, lodging, and entertainment expenses, properly documented and actually incurred by Manager in connection with the affairs of the City or in connection with the profeSSional development described in paragraph 4(g) above. (i) Manager shall also be eligible for any other benefit plans or programs available to Department Heads now or in the future. 5. Performance Evaluation. The City Council may, at its discretion, conduct quarterly performance reviews with the City Manager. The City Council will conduct an annual performance appraisal and salary review during the first week in December. Information from this meeting will be used by the City Manager Evaluation Subcommittee of the City Council to formulate a salary recommendation for consideration by the Council at the last meeting in December. 6. Termination of Emolovment. Manager is an at will employee of the City. As such, he may be terminated by the City Council in its sole discretion at any time, with or without cause. Upon termination of Manager's employment, and subject to the severance provisions of Section 7 below, all rights and obligations under this Agreement shall cease at that time, other than those which have accrued prior thereto. This Agreement shall terminate immediately upon death of the Manager, DN: 209869, v.2 2 fraud, theft, gross negligence or gross misconduct of Manager of his duties, or conviction of a felony or a gross misdemeanor. 7. Severance. In the event this Agreement is terminated by the City in accordance with Section 6 above, unless such termination is due to Manager's conviction of a felony or gross misdemeanor, fraud, theft, gross negligence, or gross misconduct of Manager of his duties, the City shall provide Manager with a minimum of thirty (30) days advance written notice and terms, conditions and severance pay as set out in subparagraph (A) below. (A) Pavment. 1. Comoensation.. The City shall continue on the 1st and 15th of each month to pay Manager ..an amount equivalenUo histhenexisting compensation as set out in paragraph 3 herein, subject to all applicable taxes, for six (6) months following the effective date of Manager's termination. 2. Benefits. During the period set forth in 7(A)1 above, the City will continue to pay Manager JhE!. Cit}t J)Ciid. cClntribution towards payment of. ManCiger'sl1ledicCiI, dental.. .... i Deleted: $815.00 per month as and retirement health savings as set out in paragraph 4(c) herein. 3. Vacation and Sick Pav. J-Jpon. notice. of voluntary or inv()luntary. telTTlina~oll. of employment, all accrued vacation shall extend to the final date of employment as determined by the City Manager, and be paid accordingly. No additional accrual shall occur during this time period. Any balance of vacation accrual not taken in cash shall be deposited into the City Manager's Retirement Health Savings Plan. All eligible sick leave shall be paid into the City Manager's Retirement Health Savings Plan as per plan agreement. 8. Leaalil'l. The parties covenant and agree that the provisions contained herein are reasonable and are not known or believed to be in violation of any federal or state law or regulation. In the event a court of competent jurisdiction finds any provision contained herein to be illegal or unenforceable, such court may modify such provision to make it valid and enforceable. Such modification shall not affect the remainder of this Agreement which shall continue at all times to be valid and enforceable. No payment may be made under this Agreement in excess of the maximum amount permitted by applicable law. 9. Interoretation. This Agreement constitutes the entire agreement between the parties and supersedes any prior oral or written agreements between the parties. This Agreement can only be modified in writing signed by both parties. This Agreement shall be interpreted in accordance with the laws of the State of Minnesota. 10. Assianment. The rights and obligations of the City to the Manager in this Agreement may not be transfer or assigned by the Manager. 11. Arbitration. Any controversy conceming a question of fact arising under this Agreement shall be determined by arbitration in accordance with the rules then in effect for the American Arbitration Association. DN: 209869. v.2 3 . { Deleted: $9285.00 per month Deleted: The Manager shall be given a lump sum payment for all accumulated vacation pay and sick pay in accordance Ih1th the Personnel Policy and as provided for In Section 4(a) and 4(b). IN WITNESS WHEREOF, the parties have caused the execution of this Agreement the day and year first above written. This document excluding exhibits consists of 4 pages. CITY OF PRIOR LAKE By: Jack G. Haugen, Mayor Francis F. Boyles, III REVIEWED AS TO FORM Suesan Lea Pace, City Attorney DN: 209869, v.2 4