HomeMy WebLinkAbout9E - City Manager Salary Adjustment and Employment Contract
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
February 16, 1999
9E r'\"
Frank Boyles, City Managerl'\
CONSIDER APPROVAL OF MANAGER SALARY
ADJUSTMENT AND EMPLOYMENT AGREEMENT.
DISCUSSION:
Historv
In December, City Councilmembers individually reviewed my
performance. The City Manager Performance Evaluation
Subcommittee of Councilmembers Schenck and Kedrowski
consolidated the evaluations and prepared a report.
Current Circumstances
At the City Council Annual Workshop, Council members received the
consolidated and individual evaluations. Councilmembers concurred
that a 3% salary increase commencing November 1, 1998 would be
appropriate but elected to take no action on the additional vacation
accrual request.
Conclusion
The Employment Agreement sets forth the salary and benefits for the
City Manager. The Council should approve the Employment
Agreement which includes the proposed 3% salary increase and a
$10 per month increase in health insurance contribution which is the
same amount contemplated for the rest of the City Staff. Changes
have been made in legislative format for convenience.
ISSUES:
I believe the City Council has shared their concerns both about my
performance and the salary recommendations. I appreciate the input
and will work to implement the recommendations made.
ALTERNATIVES:
The alternatives available to the Council include:
1) Approve the revised Employment Agreement which
incorporates a 3% salary increase.
2) Take no action.
RECOMMENDATION:
Alternative 1, Motion and second to approve the City Manager's
Employment Agreement dated February 16, 1999.
1620Qdiingii:1\likdmlp~2)1i5.:.1~rih:tcLake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
EMPLOYMENT AGREEMENT
THIS AGREEMENT is made and entered into this ~ 16th day of December February, 19~9
by and between the CITY OF PRIOR LAKE, a political subdivision of the State of Minnesota (l'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 defmed 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 from time to time.
2. Term. This Agreement shall be effective as of December 15, 1997 December 15, 1998 excevt 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 November 1, 199+8 through
November 1, 1999, the Manager shall receive $71,301.00 $76,533.00 per annum in equal
installments at the same time as the City pays its City employees, subject to all applicable taxes.
Pay retroactive to November 1, 199+~ shall be paid as lump sum subject to all applicable taxes.
4. Benefits. Manager shall receive the following benefits at no cost to him:
(a) Vacation. The Manager's paid vacation shall be 20 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 f!2L
Deoartment 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 ~ $425 per month, dental contribution to $40 per
month and long term disability insurance contribution to $25 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.
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(e) Retirement Plan Contribution. The City shall contribute 5.18% of Manager's base
salary to PERA.
(t) Car Allowance. $425 car allowance per month, plus mobile cellular phone with.-monthly
fees paid for City related activities; the City shall also reimburse the Manager for mileage
costs incurred for City related activities outside of the seven county metropolitan area at
the then-existing IRS Federal Mileage Reimbursement Rate;
(g) Professional Development. Dues and fees for the following, provided that such items
are reasonably neces'sary 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 and one
seminar/conference per year outside the State of Minnesota;
~ Membership in professional associations and service organizations.
(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.
5. Performance Evaluation. The City Council shall review and evaluate the performance of
Manager ("Performance Evaluation") annually within 30 days of November 1, 199+.2 and every
anniversary year thereafter (see Addendum A - Performance Evaluation Form). The Council
shall conduct the Performance Evaluation according to specific criteria developed jointly by the
Council and Manager. Upon written notice to Manager, such criteria may be amended from time
to time as the Council in its discretion may determine. Within a reasonable time after the
Performance Evaluation is conducted, the Evaluation Committee shall provide Manager with a
copy of the consolidated performance evaluation from all Councilmembers and a summary
written statement of the fmdings of the Council and provide an adequate opportunity for Manager
to discuss his evaluation with the Council.
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 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,
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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 subparagraphs (A)-(D) below.
(A) Payment.
1. Compensation. The City shall continue on the 1st and 15th of each month to pay
Employee $6,192 $6378 per month, subject to all applicable taxes, for seven (7)
months following the effective date of Employee's termination or resignation.
2. Benefits. During the period set forth in 7(A) above, the City will continue to pay
Employee $48Q $490 per month as the City paid contribution towards payment of
Employees medical, dental and long-term disability insurance.
3. Vacation Pay. The Manager shall be given a lump sum payment for all
accumulated vacation pay.
(B) Transition Expense. Within five (5) days of the execution of the Release attached hereto
as Exhibit "A" by both Manager and the City, the City shall pay to Employee a lump sum
payment of Five Thousand Dollars and no/loo ($5,000.00) for transition expenses.
(C) References. The City shall retain and place the reference letter, attached hereto as
Exhibit "B", in the Employee's fIle. Any requests for references shall be given a copy of
Exhibit "B".
(D) Reemployment Insurance. The City agrees that the Employee is not disqualified from
receiving reemployment insurance as a result of a voluntary leave, discharge for
misconduct, or discharge for gross misconduct as those terms are defined in Minn. Stat. ~
268.09.
8. Le2alitv. 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 fmds 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. Assilffill1ent. The rights and obligations of the City to the Manager in this Agreement, may not
be transferred or assigned by the Manager.
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11. 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. . >
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 5 pages.
CITY OF PRIOR LAKE
By:
Mayor
Francis F. Boyles ill
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EXIllBIT "A"
~ >
RELEASE
1. DEFINITIONS. I intend all words used in this Release to have their plain meaning in
ordinary English. Technical legal words are not needed to describe what I mean. Specific terms I use in
this Release have the following meanings:
A. I. me. and my include both me and anyone who has or obtains any legal rights or
claims through me.
B. City as used herein, shall at all times mean the City of Prior Lake, a Minnesota
municipal corporation, the present or former elected officials, city manager,
administrators, employees, and agents of any of them, whether in their individual
or official capacities, any pension or other benefit plan applicable to the employees
or former employees of City in their official and individual capacities.
C. My Claims mean all of the rights I now have to any relief of any kind from City,
whether or not I now know about those rights, arising out of my employment with
City and my termination of employment, including but not limited to claims for
violation of the Minnesota Human Rights Act, the Age Discrimination in
Employment Act, or other federal, state, or local civil rights laws based on age or
other protected class status; veteran's preference rights; breach of contract; fraud
or misrepresentation; defamation; intentional or negligent infliction of emotional
distress; breach of the covenant of good faith and fair dealing; promissory
estoppel; negligence or other breach of duty; wrongful termination of
employment; retaliation; harassment; breach of public policy; my conduct as a
"whistleblower"; failure to pay wages or benefits; and any other claims for
unlawful employment practices whether legal or equitable. My Claims also means
any claims I could bring in any forum or court or pursuant to any grievance
procedure. However, this Release shall not affect any claims which could be made
under any welfare benefit plan or any pension or retirement plan through City.
2. AGREEMENT TO RELEASE MY CLAIMS. I am receiving a substantial amount of
money paid by City. In exchange for these payments, I agree to give up all My Claims against City. I
will not bring any lawsuits, fIle any charges, complaints, or notices, or make any other demands against
City based on My Claims. The money I am receiving is a full and fair payment for the release of all My
Claims. I acknowledge that City does not owe me anything, directly or indirectly, in addition to what I
will be receiving.
3. ADDITIONAL AGREEMENTS AND UNDERSTANDINGS. I understand that I may
rescind (that is, cancel) this Release and the Separation Agreement to which it is attached within seven
(7) calendar days of signing it to reinstate federal claims under the Age Discrimination in Employment
Act and within fifteen (15) calendar days of signing it to reinstate state claims under the Minnesota
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Human Rights Act. To be effective, my rescission must be in writing and delivered to City in care of the
Mayor at the following address; 16200 Eagle Creek Avenue, Prior Lake, Minnesota 55372-1714, either
by hand or by mail within the relevant rescission period. If sent by mail; the rescission must be:
(1) postmarked within the 7-day or IS-day period;
(2) properly addressed to City; and
(3) sent by certified or registered mail, return receipt requested.
"
I have read this Release carefully and understand all its tenus. I have had an opportunity to
discuss this Release and the Separation Agreement to which it is attached with my own attorney and have
fully negotiated this Release and the Separation Agreement with City. In agreeing to sign this Release, I
have not relied on any statements or explanations made by City, its representatives or attorneys.
I understand and agree that this Release and the Separation Agreement to which it is attached
contain all the agreements between City and me. We have no other written or oral agreements.
Dated:
,199_
Francis F. Boyles ill
Subscribed and sworn to before me
this day of , 199_
NOTARY PUBLIC
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