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HomeMy WebLinkAbout9A City Mgr Wedel Contract Approval 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: October 7, 2019 AGENDA #: 9A PREPARED BY: LORI OLSON, ASSISTANT CITY MANAGER PRESENTED BY: LORI OLSON AGENDA ITEM: APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTION OF AN EMPLOYMENT AGREEMENT WITH JASON WEDEL TO SERVE AS THE CITY MANAGER OF PRIOR LAKE EFFECTIVE OCTOBER 14, 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 Jason Wedel to serve as the City Manager of Prior Lake effective October 14, 2019. The agreement includes a starting salary of $152,000. History The City of Prior Lake is a Plan B form of government, also known as a council- manager plan, and includes an elected mayor and four or six council members that appoint a city manager. In this form of government, the City Manager oversees administrative duties for the city while the mayor and council maintain a traditional policy making role. Although the council retains legislative and policy making authority, administrative responsibilities (such as hiring city employees and developing the annual budget) are delegated to the City Manager. In Prior Lake, the City Manager is responsible for $34 million in budgeted funds, $400 million in total city infrastructure, and 97 full and part-time employees. Current Circumstances On August 19, 2019, the City Manager position in Prior Lake become vacant. After a hiring process that included 22 applicants and three finalist interviews, the City Council selected Jason Wedel on September 16, 2019 to serve as Prior Lake’s next City Manager. Council directed staff to prepare a conditional offer of employment based on the successful completion of a background check and to start the negotiation process for employment terms. The Scott County Sheriff’s Office conducted the background check. The proposed annual salary is $152,000 and includes a monthly car allowance of $300 and twenty-five days of vacation each year. All other benefits for this position are consistent with the City’s personnel policy. Mr. Wedel would assume the position on October 14, 2019. Mr. Wedel is currently the Public Works Director/City Engineer for the City of Chanhassen. Prior to this, Mr. Wedel served as the Public Works Director/City Engineer for the City of Prior Lake as a consultant with WSB & Associates for over two years. Previous experience also includes working as the Director of Land for Pulte Homes and as the Public Works Director/City Engineer for the City of Savage. Mr. Wedel has an MBA from Bethel University and a bachelor’s degree in civil engineering from the University of Minnesota. 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 Jason Wedel to serve as the City Manager of Prior Lake effective October 14, 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 19-113 A RESOLUTION AUTHORIZING THE EXECUTION OF AN EMPLOYMENT AGREEMENT WITH JASON WEDEL TO SERVE AS THE CITY MANAGER OF PRIOR LAKE EFFECTIVE OCTOBER 14, 2019 Motion By: Second By: WHEREAS, The City of Prior Lake is a Plan B form of government in which the City Council retains legislative and policy-making authority and delegates administrative responsibilities to the City Manager; and WHEREAS, The City Manager position has been vacant since August 19, 2019; and WHEREAS, The City of Prior Lake conducted a search for the new City Manager; and WHEREAS, On September 16, 2019, the City Council selected Jason Wedel as the City Manager and directed staff to develop a conditional offer and negotiate employment terms; and WHEREAS, Jason Wedel will assume the position of Prior Lake City Manager on October 14, 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 Mayor is authorized to enter into an employment agreement with Jason Wedel to serve as the City Manager of Prior Lake effective October 14, 2019. Passed and adopted by the Prior Lake City Council this 7th day of October 2019 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Lori Olson, Interim City Manager Wedel Employment Agreement - 1 EMPLOYMENT AGREEMENT THIS AGREEMENT is made and entered into this 14th day of October 2019 and between the CITY OF PRIOR LAKE, a political subdivision of the State of Minnesota (“City”) and Jason Wedel (“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 also observe the highest standards of professional and ethical conduct in the performance of his duties and in all matters the bear upon the City’s reputation and/or the City’s and public’s trust in the Manager. 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 October 14, 2019 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: Upon hire, salary is $152,000 through December 31, 2019, paid in equal installments at the same time as the City pays its City employees, subject to applicable taxes. On January 1, 2020, salary will be adjusted to reflect the same cost of living adjustment as the City’s other non-bargaining employees (3%) for a salary of $156,560 through December 31, 2020. In subsequent contract years, Manager shall receive cost-of-living salary adjustments as determined by the City Council after annual performance evaluation (see number 5 below). 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 employees) and shall include an initial ten (10) day bank. 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 City policy for department heads. (c) Insurance. Medical, dental and Retirement Health Savings Plan contributions equivalent to those contributions made for other department head level City employees. Wedel Employment Agreement - 2 (d) Life Insurance. The City shall provide life insurance consistent with city personnel policies. (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. $300.00 car allowance per month. (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 should the Manager decide to relocate to within the City limits of Prior Lake within twelve (12) months of hire up to a maximum amount of ten thousand ($10,000) dollars. Reimbursement will take place upon receipt of verification of moving costs In the event that the employee resigns within the first year of employment, the Manager shall reimburse the City 100% of the amount paid herein. In the event the Manager resigns within the second year of employment, the Manager shall reimburse the City 50% of the amount paid herein. 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 evaluation 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 evaluation to formulate salary and other related recommendations for consideration during an executive session of the City Council. The City Council at its discretion may conduct more frequent evaluations. 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 Wedel Employment Agreement - 3 thereto. This Agreement shall terminate immediately upon death of the Manager; fraud, theft, gross negligence or gross misconduct of Manager of his duties (including any unprofessional or unethical off- duty conduct that bears upon the City’s and public’s trust in the Manager); the intentional or grossly negligent conduct of the Manger, whether or not related to the performance of his duties, which conduct is injurious to the City or its reputation, monetarily or otherwise; or 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 or charges of a felony or a gross misdemeanor, or due to fraud, theft, gross negligence or gross misconduct of Manager (including any unprofessional or unethical off-duty conduct that bears upon the City’s and public’s trust in the Manager), or the intentional or grossly negligent conduct of the Manger, whether or not related to the performance of his duties, which conduct is injurious to the City or its reputation, monetarily or otherwise, 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 or charges of a felony or gross misdemeanor, or due to fraud, theft, gross negligence or gross misconduct of Manager (including any unprofessional or unethical off-duty conduct that bears upon the City’s and public’s trust in the Manager), or the intentional or grossly negligent conduct of the Manger, whether or not related to the performance of his duties, which conduct is injurious to the City or its reputation, monetarily or otherwise, 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 period set forth in paragraph 7(a) 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. Upon notice of voluntary or involuntary termination of employment, all accrued vacation shall extend to the final date of employment as determined by the Finance Director and be paid accordingly. No additional accrual shall occur during this time period. All eligible vacation and sick leave balances shall be paid in accordance to the City’s Personnel Policy. 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. Wedel Employment Agreement - 4 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. 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. All claims and disputes arising under or relating to this Agreement or Manager’s employment with the City are to be settled by binding, confidential arbitration with the American Arbitration Association (“AAA”), in accordance with AAA Employment Arbitration Rules then in effect. A copy of the Employment Rules can be found at https://www.adr.org/Rules or requested through the City. The City will pay the fees and costs of arbitration as provided in the Employment Rules; however, if the Manager initiates the arbitration, then the Manager will contribute an amount equal to the current filing fee that would apply to the Manager’s claim if brought in state court where the Manager resides. This fee must be paid by the Manager within 30 days of the demand for arbitration. Failure to pay the applicable fee within this time period may result in dismissal of the demand for arbitration. Any decision or award as a result of any arbitration proceeding shall be in writing and shall provide an explanation for all conclusions of law and fact. This Arbitration provision does not apply to any claims that as a matter of controlling law cannot be subject to arbitration IN WITNESS WHEREOF, the parties have caused the execution of this Agreement the day and year first above written. CITY OF PRIOR LAKE By: _________________________________________________ Kirt Briggs, Mayor / Date _________________________________________________ Jason Wedel / Date