HomeMy WebLinkAbout8A City Manager Employment Agreement Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 17, 2018
AGENDA #: 8A
PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER
PRESENTED BY: LORI OLSON
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTION
OF AN EMPLOYMENT AGREEMENT WITH MICHAEL P. PLANTE TO SERVE
AS THE CITY MANAGER OF PRIOR LAKE EFFECTIVE FEBRUARY 7, 2019
GOAL AREA AND
OBJECTIVE:
High-Value City Services
4. Attract, retain and train a high caliber workforce to ensure high-quality services.
DISCUSSION: Introduction
This agenda item seeks approval to enter into an employment agreement with
Michael P. Plante to serve as the City Manager for Prior Lake effective February 7,
2019. The agreement includes an annual salary of $140,000.
History
City Manager Frank Boyles submitted his retirement notice in July 2018. In
August, the city council selected a consultant, DDA Human Resources, Inc. (Gary
Weiers) to conduct an executive search for the new city manager.
The city of Prior Lake is a Plan B form of government, also known as the council-
manager plan. It consists of the elected mayor, elected council members, and an
appointed city manager. Although the council retains legislative and policy-making
authority, administrative responsibilities (such as hiring and firing city employees)
are delegated to the city manager. In Prior Lake, the City Manager is responsible
for $34 million in budgeted funds and $33 million in the city’s investment portfolio
each year. More than $11 million of this annual amount is in personnel service
costs, equally 96 full and part-time employees. The position is also responsible for
$400 million in total city infrastructure.
Current Circumstances
On December 6, 2018, the City Council passed a motion to offer Michael P. Plante
the city manager position with Prior Lake. The proposed annual salary is $140,000
and includes a monthly car allowance and twenty days of vacation each year and
optional one-time relocation incentive ( the proposed agreement is attached). All
other benefits for this position are consistent with the city’s personnel policy. Mr.
Plante would assume the position on February 7, 2017.
Please see the attached report from Mr. Weiers for details on the search and
selection process.
Mr. Plante has been the Wabasha County Administrator since March 2014. Prior
to this position, Mr. Plante was an assistant county attorney for Wabasha County.
Mr. Plant has a law degree from Hamline University School of Law and bachelor’s
degree from the University of Wisconsin – Madison.
FINANCIAL
IMPACT:
The salary for this position was approved as part of the 2019 budget.
ALTERNATIVES: 1. Motion and second to authorize the execution of an employment
agreement with Michael P. Plante to serve as the City Manager of Prior
Lake effective February 7, 2019.
2. Motion and second to deny this request.
3. Motion and a second to table action and provide further direction.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
A RESOLUTION AUTHORIZING THE EXECUTION OF AN EMPLOYMENT AGREEMENT
WITH MICHAEL P. PLANTE TO SERVE AS THE CITY MANAGER OF PRIOR LAKE
EFFECTIVE FEBRUARY 7, 2019
Motion By: Second By:
WHEREAS, The City Manager position will be vacated in 2019 due to the retirement of the
current city manager; and
WHEREAS, The city of Prior Lake is a Plan B form of government in which the council retains
legislative and policy-making authority and administrative responsibilities are
delegated to the city manager; and
WHEREAS,
The city of Prior Lake conducted an extensive search including 41 candidates for
the new city manager with the assistance of an executive recruiter; and
WHEREAS, On December 6, 2018, the City Council passed a motion to offer Michael P. Plante
the City Manager position for the city of Prior Lake; and
WHEREAS, In accordance with the city council’s approval the city attorney has approved
the agreement setting forth the terms and conditions of employment; and,
WHEREAS, Michael P. Plante has executed the employment agreement and has
agreed to assume the duties of Prior Lake City Manager effective February
7, 2019.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The employment agreement is hereby approved.
3. The Mayor is authorized to execute the agreement on behalf of the city of Prior
Lake.
Passed and adopted by the Prior Lake City Council this 17th day of December 2018
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
Faribault Office:
1327 Merrywood Court
Faribault, MN 55021
(612)920-3320 x109 | fax (612) 605-2375
www.ddahumanresources.com
December 11, 2018
Prior Lake City Council
City of Prior Lake
4646 Dakota St. SE
Prior Lake, MN 55372
RE: Contract Approval
Dear Mayor and Council Members,
On December 6, 2018 the Prior Lake City Council passed a motion to offer the City Manager
position to Michael Plante. Since taking that action, the consultant met with Mayor Kirt Briggs and
Council Member Mike McGuire to review the components of an employment agreement. The
negotiation process then commenced, and Michael Plante has agreed to the terms established by
Mayor Briggs and Council Member McGuire.
Attached to this memo is the final agreement which is ready for action by the Council. This has
been reviewed and approved by your Labor Attorney, Mark Girouard.
As you know, the position was advertised on September 5, 2018, and applications were received
through October 3, 2018. There were 41 applicants for the position, and candidates were initially
ranked based on experience and education and the top 13 candidates completed a video interview
and personality index. From this group, the Council selected five people to bring in for the final
interview process. On November 20, 2018, one candidate withdrew from consideration and on
December 3, 2018, another candidate withdrew leaving three candidates under consideration.
The interview process took place on December 5 and 6, 2018. Included in the process was an
interview with department heads, an interview with committee leaders and partners, a city tour, a
public meet and greet event and a formal interview with the City Council. In addition to information
gathered during the interview process, the Council also reviewed the following items prior to the
interviews taking place:
1. Background information including: criminal history, civil court history, credit history, motor
vehicle records, verification of employment and education and other items
2. Professional references
3. Work Personality Index
4. Intellectual Profile
5. Video Interview
6. Cover letter
7. Resume
Unfortunately, I will not be able to join you on December 17th due to other commitments. Mike and
Kirt will be able to answers any questions you have about the agreement. I greatly appreciated the
opportunity to work with you on this important process. Thank you.
Sincerely,
Gary Weiers
DDA Human Resources, Inc.
gary@daviddrown.com
Plante Employment Agreement - 1
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into this 17th day of December 2018 by and between the CITY
OF PRIOR LAKE, a political subdivision of the State of Minnesota (“City”) and Michael Plante (“Manager”).
IN CONSIDERATION of the terms and conditions contained herein, the parties agree as follows:
1. 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 a 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.
2. Term. This Agreement shall be effective as of February 7, 2019 (the “effective date”) except as herein
specified and shall continue unless or until 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 teaching, writing, consulting, speaking or military reserve
service undertaken by Manager during his non-work hours.
3. Compensation. As compensation for services rendered the Manager shall receive the following:
3.1. Base Salary Rate: From February 7, 2019 through December 31, 2019 pay shall be pro-rated based on
an annual salary rate of $140,000, to be paid in equal installments at the same time as the City pays
its City employees, subject to applicable taxes. In subsequent contract years, which shall run January
1 to December 31, Manager shall receive cost-of-living salary adjustments based upon the annual
performance evaluation.
4. Benefits. Manager shall receive the following benefits at no cost to him:
(a) Vacation. The Manager’s annual paid vacation accrual shall be 20 days (in addition to the paid public
holidays as provided for other City department heads) and during the first contract year shall include
an initial eighty (80) hour vacation bank, which shall count against Manager’s vacation accrual for that
year. Carryover of unused vacation time from one (1) contract year to another shall be consistent with
city personnel policies.
(b) Sick Days. Paid sick days and sick leave payment plan in accordance with the City’s personnel policy for
all City employees.
(c) Insurance. Medical, dental and Retirement Health Savings Plan contributions equivalent to those
contributions made for all City employees.
(d) Life Insurance. The City shall provide life insurance consistent with City personnel policies.
Plante Employment Agreement - 2
(e) Retirement Plan Contribution. The City shall contribute a portion of the Manager’s base salary to the
Public Employees Retirement Association of Minnesota (“PERA”) in an amount mandated by PERA for
the coordinated plan.
(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 the State of Minnesota and one
seminar/conference per year outside the State of Minnesota;
− Membership in professional associations and service organizations.
(h) Reimbursement of Expenses. Reimbursement of reasonable and necessary meals, travel (except for
travel using Manager’s vehicle), lodging, and entertainment expenses, properly document 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) Relocation Expenses: The City agrees to reimburse the Manager to relocate to within the City limits of
Prior Lake in connection with his employment, up to a maximum amount of ten thousand ($10,000)
dollars. Reimbursement will take place upon receipt of verification of relocation costs.
In the event that the Manager resigns within the first year of employment, the Manager shall
reimburse the City 100% of the amount paid under this Paragraph 4(i). In the event the Manager
resigns within the second year of employment, the Manager shall reimburse the City 50% of the
amount paid under this Paragraph 4(i).
Applicable employment taxes will be applied to this benefit.
(j) Other. 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 will conduct an annual performance appraisal and salary review
during the first quarter of the following year. The City Manager Evaluation Committee, comprised of two
Council Members, will meet prior to the performance appraisal to formulate salary and other related
recommendations for consideration during an executive session of the City Council. The City Council may,
at its discretion, conduct additional performance reviews with the City Manager.
6. 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 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
Plante Employment Agreement - 3
negligence or gross misconduct of Manager in the performance of his duties, or Manager’s conviction of a
felony or a gross misdemeanor.
7. Severance
7.1. Termination By the City. In the event his Agreement is terminated by the City in accordance with
Section 6 above, unless termination is due to Manager’s conviction of a felony or a gross
misdemeanor, or due to fraud, theft, gross negligence or gross misconduct of Manager, the City shall
provide Manager with a minimum of thirty (30) days advance written notice and severance pay as set
out in subparagraph (a) below. If such termination is due to Manager’s conviction of a felony or gross
misdemeanor, or due to fraud, theft, gross negligence or gross misconduct of Manager, Manager shall
forfeit any right to advance written notice or severance pay.
(a) Payment.
1. Compensation. The City shall continue to pay Manager an amount equivalent to his then existing
compensation as set out in Section 3 herein, subject to all applicable taxes and deductions, for six
(6) months following the effective date of Manager’s termination.
2. Benefits. During the thirty-day period set forth in paragraph 7.1 above, the City will continue to
make the City paid contribution toward payment of Manager’s medical, dental and retirement
health savings as set out in paragraph 4(c) herein.
3. Vacation and sick pay. During the thirty-day period set forth in Paragraph 7.1 above, the Manager
will continue to accrue vacation and sick leave at his regular accrual rate. If, at his termination
date, Manager remains in “good standing,” as that term is defined in the city personnel policies,
Manager shall be entitled to payment of accrued vacation and sick leave consistent with and as
permitted under City personnel policies.
7.2 By the Manager. If Manager submits notice of his voluntary resignation to the City and if, at the time
of his resignation, Manager is in “good standing,” as that term is defined in the city personnel policies,
then Manager shall be entitled to payment of accrued vacation and sick leave consistent with and as
permitted under the city personnel policies. Manager shall provide the City with a minimum of forty-
five (45) days written notice of voluntary resignation.
8. Legality. 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 a 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. The Agreement can only be modified in writing
and signed by both parties. This Agreement shall be interpreted in accordance with the laws of the State
of Minnesota.
Plante Employment Agreement - 4
10. Assignment. The rights and obligations of the City to the Manager in this Agreement may not be
transferred or assigned by the Manager.
11. Arbitration. Any claim or controversy concerning the application, interpretation, or enforcement of this
Agreement shall be resolved by binding arbitration in accordance with the rules then in effect for the
American Arbitration Association. The City and Manager understand that they are waiving their
respective rights to have claims or controversies concerning the application, interpretation, or
enforcement of this Agreement resolved by a jury or court.
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 four (4) pages.
CITY OF PRIOR LAKE
By: _________________________________________________
Kirt Briggs, Mayor / Date
_________________________________________________
Michael Plante / Date