HomeMy WebLinkAbout10B - City Mgr. Employment CITY COUNCIL AGENDA REPORT
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
G DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
ALTERNATIVES:
RECOMMENDED
MOTION:
May 2, 2005
10B
Mayor Haugen and Councilmember Zieska (City Manager Evaluation
Subcommittee)
CONSIDER APPROVAL OF CITY MANAGER EMPLOYMENT CONTRACT
REVISIONS FOR 2005.
History: 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 in his 13ta year with the City.
Each year, the City Council is responsible for conducting a review of the City
Manager's performance during the previous year. At that time the City Council
may also evaluate the existing compensation package.
Current Circumstances: The Council will recall that they have now met on two
separate occasions to conduct with the City Manager an evaluation of his
performance in 2004. Following its April 18,2005 Executive Session, the Council
advised that the evaluation process had been completed; that the Council was
very pleased with the City Manager's performance over the past year; and that a
recommendation as to an adjustment in compensation would be formally
considered as part of the May 2, 2005 regular City Council meeting.
In accordance with Council direction, staff has revised the employment
agreement. A red-lined version of the proposed agreement is attached for
Council review.
(1) Motion and Second to adopt the revised Employment Agreement as
proposed.
(2) Take no action and direct the staff accordingly.
As the Council deems appropriate.
www.cityofpriorlake.com
I:\COUNCIL~GNRPTS\2005\CITY M,~eE~,.~,t~.~.~.Y4/~.D/O~ax 952.447.4245
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into this....Pnr~°~*k...._...,, day of May, ...............pnn~ I~,,.,,,~,,,,.........,, ......~°nn,4 by and
between the CITY OF PRIOR LAKE, a political subdivision of the State of Minnesota ("City"), and Francis F.
Boyles, III ("Manager").
IN CONSIDERATION of the terms and conditions contained herein, the parties agree as follows:
.
12.
Employment. During the term of this Agreement, the Manager shall serve as City Manager of the
City, and shall assume and perform, 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
performance 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.
Term. This Agreement shall be effective as of January 1, 200526r~ except as herein specified
and shall continue indefinitely unless or until earlier terminated as provided in Section 6 below, or until
such time as the Manager voluntarily terminates employment by thirty (30) days written notice.
Manager shall remain in the exclusive employment of the City during the term 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.
.
Compensation. As base compensation for services rendered from January 1, 20052~ through
December 31, 2005200d, the Manager shall receive $104,77188-~4-1..00 per annum in equal
installments at the same time as the City pays its City employees, subject to all applicable taxes. Pay
retroactive to January 1, 2005Ne':trebor !, 2OOd shall be paid as lump sum subject to all applicable
taxes.
3,1,
Market Adiustment: Manager shall receive a sum of $5,100.00 payable in three annual
installments of $1,700.00 per annum, as a market adjustment to Manager's compensation.
City shall deposit each annum the sum of $1,700.00 into Manager's Deferred Compensation
Plan. In the event Manager's employment with the City is terminated, whether voluntarily or
involuntarily, City shall deposit any remaining balance of the $5,100.00 to Manager's
Deferred Compensation Plan. If for any reason such payment is ineligible to be paid into
Manager's Deferred Compensation Plan, then the payment shall be made pursuant to
Paragraph 7(A)(4). (Last installment due 2005)
3,2,
Tenure Adjustment: At the outset of each year, the City shall deposit a sum equivalent to
five days pay in Manager's Deferred Compensation Plan for each year, in excess of ten
years, Manager has worked for the City.
3.3,
Deferred Compensation: Sections 3.1 and 3.2 notwithstanding, the City Manager shall
receive a contribution to his deferred compensation account for 2005 in the amount of
$2965.00.
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4. Benefits. Manager shall receive the following benefits at no cost to him:
,
16.
(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
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 Days. Paid sick days and sick leave payment plan (including initial thirty (30) day bank)
in accordance with City policy for department heads.
(c)
Insurance. Medical contribution to $650595.00 per month, dental contribution to $40.00 per
month and Retirement Health Savings Plan contribution to $25.00 per month.
(d)
Life Insurance. In lieu of term life insurance coverage the City shall pay an annual
contribution of $1000 to a universal life insurance policy owned by the Manager.
(e)
Retirement Plan Contribution. The City shall contribute 5.3 % of Manager's base salary to
PERA.
(f)
Car Allowance. $450.00 car allowance per month, plus mobile cellular phone with monthly
fees paid for City related activities.
(g)
Professional Development. 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, journals, publications;
Seminars, conferences and short courses within Minnesota
seminar/conference per year outside the State of Minnesota;
Membership in professional associations and service organizations.
and one
(h)
Reimbursement of Expenses. 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.
Performance Evaluation. The City Council will, 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 to formulate a salary recommendation for consideration by
the Council at the last meeting in December.
Termination of Employment. 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
DN: 209869, v.2 2
t7.
I10.
11.
termination of Manager's employment, and subject to the severance provisions of Secti0~n 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,
fraud, theft, gross negligence or gross misconduct of Manager of his duties, or conviction of a felony
or a gross misdemeanor.
Severance. In the event this Agreement is terminated by the City in accordance with Sections~
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) Payment.
Compensation. The City shall continue on the 1st and 15th of each month to pay
Employee $ 8,731236.75 per month, subject to all applicable taxes, for six (6)
months following the effective date of Employee's termination.
.
Benefits. During the period set forth in 7(A)1 above, the City will continue to pay
Employee $ 715650.00 per month as the City paid contribution towards payment of
Employees medical, dental and long-term disability insurance.
Vacation and Sick Pay. The Manager shall be given a lump sum payment for all
accumulated vacation pay and sick pay in accordance with the Personnel Policy and
as provided for in Section 4(a).~.
I.e_~alitv. 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.
Interpretation. 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.
Assignment. The rights and obligations of the City to the Manager in this Agreement~ may not be
transfer or assigned by the Manager.
Arbitration. Any controversY concerning 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.
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IN WITNESS WHEREOF, the parties have caused the execution of this Agreement the '.day and year
Ifirst 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 Attomey
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