HomeMy WebLinkAbout9D - City Mgr 2006 Employment
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
ISSUES:
CITY COUNCIL AGENDA REPORT
December 19, 2006
9D
Kelly Meyer, Asst. to the City Manager
CONSIDER APPROVAL OF CITY MANAGER EMPLOYMENT AGREEMENT
FOR 2006.
Introduction
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 13th 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.
In 2005, Mayor Haugen and Council member Zieska were appointed as the
subcommittee that would facilitate the review process and make any
recommendations regarding compensation. At this time the City Council has
completed its evaluation and conducted a meeting with the City Manager to
review its findings. At its December 5, 2005 City Council meeting, the
subcommittee made specific recommendations regarding adjustments to the
City Manager employment contract, and directed staff to update the
agreement accordingly. The purpose of this agenda item is to formally adopt
the revised employment agreement consistent with that direction, and the
terms of the employment agreement.
The subcommittee recommended and the revised agreement proposes the
following changes:
Contract Term: January 1, 2006 - December 31, 2006.
Compensation: A three (3) percent increase to the current base salary of
$104,771 ($107,914.00). A 3% increase is consistent with the cost of living
increases for the employees represented by AFSCME, as well as
unrepresented employees (managers & supervisors). At this time the
bargaining units representing patrol officers and sergeants have not settled
contracts for 2006.
Deferred Compensation Contribution: A three (3) percent increase to the
2005 contribution ($4805.00 for 2006).
Health Insurance: $700 per month contribution toward family medical. This is
an increase of $50 per month and is exactly the contribution made on behalf of
the City for all employees with family medical.
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Life Insurance: The City's annual contribution shall increase from $1000 to
$1200.
Housekeeoina Items: Other items that have been updated to be consistent
with the wage and benefits package include:
PERA Contribution: The plan currently requires a 6.0% employer
contribution. I've updated the contract as a housekeeping measure. This is
consistent with the contribution made for all other non patrol employees.
Severance: Section 7 of the employment agreement has been updated to
reflect the corresponding increases in wages and benefits.
FINANCIAL
IMPACT:
The compensation package proposed is within the estimate of the 2006
budget.
ALTERNATIVES:
Staff believes the agreement reflects the changes directed by the City Council
at its December 5,2005 meeting. The compensation package proposed
appears consistent with those of other City Managers in communities of similar
size who are performing at a consistently high level. The cost of living increase
and health insurance increase proposed are consistent with those of other
employee groups within the City. The Council has several alternatives:
1. Motion and Second to approve the City Manager's 2006 Employment
Agreement as proposed.
2. Motion and Second to approve the City Manager's 2006 Employment
agreement with amendments.
3. Take no action and provide staff with additional direction.
RECOMMENDED
MOTION:
Alternative No.1.
Reviewed by:
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1:\COUNCIL\AGNRPTS\200~)\City Manager 200C; Employment DOC
THIS AGREEMENT is made and entered into this ~19th day of MayDecember, 2005 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:
1. Emplovment. 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.
I 2. Term. This Agreement shall be effective as of January 1, ~2006 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.
3. Compensation. As base compensation for services rendered from January 1, ~2006 through
December 31, ~2006, the Manager shall receive $104,771107,914.00 per annum in equal
installments at the same time as the City pays its City employees, subject to all applicable taxes. ~
retroactive to January 1, 2005 shall bo paid as lump sum subjoct to all applicable taxes.
3.1. Market AEljustmeRt: Mana~er shall Fecoi'/e a sl:Im of $5,100.00 payable in throo annuJI
installments of $1,700.00 fJer annum, as a market adjustment to Manager's componsation.
City sl:1all deposit each annum the sl:lm of $1 ,700.00 into Manager's Doforrod Compensation
Plan. IA tl:1e event MaFlaQer's employment ':/ith the City is terminated, whether voluntarily or
involl:lFltarily, City shall deposit any romaining balance of the $5,100.00 to Manager's
Defell89 Compensation Plan. If for aAY Feason sl:lch payment is ineligible to be paid into
MJnager's Deforred Compensation Plan, then the payment shall be mado pl:lFSl:Iant to
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3.1 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.
3.2 Deferred Compensation: Sections 3.1 and 3.2 notwithstanding, the City Manager shall
receive a contribution to his deferred compensation account for ~2006 in the amount of
~805.00.
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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
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.
(c) Insurance. Medical contribution to $eW700.00 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 $-W001200 to a universal life insurance policy owned by the Manager.
(e) Retirement Plan Contribution. The City shall contribute ~.O % of Manager's base salary
to PERA.
(n 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, 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.
5.
(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.
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6. Termination of Emplovment. 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,
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) Payment.
1. Compensation. The City shall continue on the 1st and 15th of each month to pay
Employee $-8,m993 per month, subject to all applicable taxes, for six (6) months
following the effective date of Employee's termination.
2. Benefits. During the period set forth in 7(A)1 above, the City will continue to pay
Employee ~765.00 per month as the City paid contribution towards payment of
Employees medical, dental and long term disability insuranceretirement health
savings.
3. 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).
8. Leaalitv. 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. 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.
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.
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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.
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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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