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HomeMy WebLinkAboutRes2020-076 Sponsored by: Meszaros CITY OF SEWARD,ALASKA RESOLUTION 2020-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO EXTEND THE INDEPENDENT CONTRACTOR AGREEMENT OF CORY BORGESON FOR AN AMOUNT NOT TO EXCEED $63,000 WHEREAS, the City of Seward continues to search for a Manager for the Electric Utility Department which has been vacant since June 10,2020; and WHEREAS, Cory Borgeson, former Chief Executive Officer of Golden Valley Electric Association in Fairbanks has been Interim Manager since June 23,2020; and WHEREAS, the funding authority for the Independent Contractor Agreement with Cory Borgeson will end on or about September 14, 2020; and WHEREAS,the Independent Contractor Agreement was for an indefinite period,but not expected to exceed six months; and WHEREAS, both the City of Seward and Borgeson desire to continue the work written in the Independent Contractor Agreement; and WHEREAS, the amount of $63,000 will cover the weekly compensation and living expenses for an additional 22 weeks. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1.The City Manager is hereby authorized to continue the Independent Contractor Agreement between the City of Seward and Cory Borgeson , and funding is hereby approved for 22 weeks of work in an amount not-to-exceed$63,000. Section 2. The funding for this Independent Contractor Agreement will be borne by the Electric Enterprise Fund and be charged to Electric Administration salaries account no. 15000- 3001-6000. Section 3.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of September, 2020. CITY OF SEWARD,ALASKA RESOLUTION 2020-076 T IT OF EWARD risty Terry .Mayor AYES: Seese, Osenga, Baclaan, McClure, Terry NOES: None ABSENT: Crites ABSTAIN: None ATTEST: Brenda J. Ba lou, C City Clerk (City Seal) ,,,,,,,,,, OF SF • H,''•. 4. ° ����.4, % • y� Q : r • i SEA,,• : • • 0 tip•...of��P,'.••' Agenda Statement Meeting Date: September 14, 2020 • To: City Council Through: Scott Meszaros, City Manager Stephen Sowell, Assistant City Manager From: Sam Hickok, Acting Finance Director Agenda Item: A Resolution of the City Council of The City of Seward, Alaska, Authorizing the City Manager to Extend the Professional Services Contract of Cory Borgeson to Manage the Seward Electric Department BACKGROUND & JUSTIFICATION: On June 10, 2020, John Foutz, long-time manager of the Seward Electric Department, resigned and left the position vacant. Cory Borgeson had retired in March 2020 after eight years of being the CEO of Golden Valley Electric Association in Fairbanks, Alaska. Prior to working as CEO of GVEA, he had been their outside general legal counsel since 1989. On short notice, Borgeson and the City of Seward entered into an Independent Contractor Agreement wherein Borgeson agreed to fill the position of Acting Electric Utility Manager for the City of Seward for an indefinite period, not expected to exceed six months. Borgeson is directly supervised by the City Manager and has the authority and responsibilities as delegated by the City Manager, consistent with City Code. This contract was prepared by the City of Seward's legal counsel. Since June 23, 2020, Borgeson has been the Manager of the Seward Electric Department and has been successful in carrying out the goal and objectives of the department. The Electric Manager position has yet to be filled. There is interest in the position and potential candidates are being vetted. There is a need to seek Council funding to continue with Mr. Bergeson's services. The requested funding of$63,000 will allow for the contract to be continued for 22 weeks. That would carry Mr. Borgeson's services through the end of January 2021. INTENT: Extend the Professional Services Contract of Cory Borgeson, to manage the Electric Department while undertaking a search for a new manager for the Electric Department for an amount not-to- exceed $63,000. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan: 2. Strategic Plan: F] 104 3. Other: FISCAL NOTE: Funding for this contract is covered by the Electric Administration salaries budget due to the vacancy of the position. No appropriation is necessary. Approved by Finance Department: . ATTORNEY REVIEW: Yes __ No Not Applicable RECOMMENDATION: For City Council to approve Resolution 2020-076__, authorizing the City Manager to extend the Professional Services Contract of Cory Borgeson, to manage the Electric Department for an amount not to exceed $63,000. 105 INDEPENDENT CONTRACTOR AGREEMENT The parties to this Independent Contractor Agreement C'Agreement") are Cory R. Borgeson CBorgeson") and the City of Seward (the"City'). WHEREAS, the Manager position of the Electric Utility of the City will be vacant effective June 12, 2020, and the City needs to fill that position on a non-permanent basis while it locates a person or company to assume the position on a more permanent basis; WHEREAS, Borgeson has experience managing an electric utility in Alaska having been the Chief Executive Officer of Golden Valley Electric Association ("GVEA") in Fairbanks, Alaska since June 2012, and before that represented GVEA as legal counsel since 1989; WHEREAS,Borgeson is willing to work as the Acting Electric Managerfor an interim period in order to allow the City to recruit for that position or restructure how it manages its electric utility; and WHEREAS,the City desires to contract with Borgeson for this purpose. NOW,THEREFORE, the City of Seward and Cory R. Borgeson agree as follows: i. Professional Services Borgeson will fill the position of Acting Electric Utility Manager for the the City of Seward for an indefinite period, not expected to be exceed six months. Borgeson will be bound by all rules, policies, procedures, and ordinances pertaining to the position and its duties including, but not limited to, City ordinances, state and federal law, City of Seward Electric Utility policies, roles and procedures and national electrical safety standards and codes (e.g. the National Electrical Safety Code and the National Electric Code where they pertain). Borgeson shall be directedly supervised by the City Manager, and shall have such authority and responsibilities as may be delegated by the City Manager, consistent with City Code. Borgeson will not participate on behalf of the City of Seward in utility industry groups such as, but not limited to, ARCTEC, RRC, RUM, and BPMC unless obtaining approval from the GVEA board of directors. 2. Inde end nt Contractor Status It is the intent of Borgeson and the City that Borgeson is and as should be classified as an independent contractor and not an employee of the City. As such Borgeson is entitled to no additional benefits or procedural due process as may be applicable to City employees. Borgesion agrees to provide the City with the appropriate tax identification information and assumes responsibility for reprotying an siwthhodlign any and all income taxes. 00940475DOCX 106 3. Compensation Borgeson will invoice the City for his services at the rate of two thousand, five hundred dollars ($2,500.00) per workweek. Borgeson shall not bill the City for any week in which no work is performed. Upon submission of invoices, the City agrees to reimburse Borgeson for actual incurred living expenses (to include rent and utilities) not to exceed $2,000.00 per month. The City shall provide Borgeson the use of a utility vehicle during the period he resides in Seward, and shall be responsibile for the costs of vehicle insurance, fuel, and required maintenance. Borgeson shall comply with all City policies and procedures regarding use of City-owned or leased vehicles. 4. Conflict of Interest Borgeson will devote full-time efforts to the position. Borgeson may accept or continue employment for other business entities during the term of this Agreement subject to meeting the performance obligations herein. In the event Borgeson learns of a potiential conflict of interest, whether actual or perceived, arising out of, or relating to, Borgeson's exisiting or former working relationship with another entity, Borgeson shall provide written notice of said conflict to the City Manager as soon as practical upon learning of the potential conflict. 5. Terminafi n The City may terminate this Agreement at any time upon written notice. Upon termination, Borgeson shall be paid through the last day worked on a pro-rata basis, and reimbursed for actual living expenses incurred, for a period not to exceed the end of the month in which termination occurs, and actual penalities incurred, if any,for termination of any rental agreement. Borgeson shall provide the City thirty(30)days written notice of his intent to terminate the Agreement; the City, at its election, may continue to retain Borgeson's services or terminate the Agreement effective immediately. In the event of such termination, Borgeson shall be entiled to compesation and reimbursement as stated herein, but no other benefits. 6. Assignment Contractor may not assign or delegate this Agreement, or any part of it, except with the prior consent of Eagle. 7. Severability Wherever possible, each provision of this Agreement shall be Interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be 00240475.Docx 107 ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 8. Choice of Law and-Forum Any controversy or claim arising out of or related to this Agreement or the breach thereof shall be governed by the laws of the State of Alaska, and the venue for any legal proceedings thereon shall be the Superior Court for the State of Alaska, Third Judicial District, at Seward, Alaska. 9. VoluntaryEx'epution Borgeson represents and acknowledges that prior to signing this Agreement, he has read the Agreement, understands its terms, conditions and provisions, and has voluntarily executed this Agreement without coercion. Borgeson additionally represents that he has had an adequate opportunity to consider entering into this Agreement, and if so desired, to discuss the terms, conditions and provisions of this Agreement, as well as all related legal consequences, with an attorney of his choice. 'Id. Entirg Agreement This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the performance of services by Borgeson, and contains all of the covenants and agreements, between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein,and that no other agreement,statement, or promise not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing signed by the party to be charged. CITY OF SEWARD DATED: By: its: Scott W. Meszaras, City Manager DATED: By: L Cory R. Borgeson 00940475MOOX 108 INDEPENDENT CONTRACTOR AGREEMENT EXTENSION WHEREAS, Cory Borgeson and the City of Seward entered into a contract on June 23, 2020 for Borgeson to fill the position of Electric Utility Manager for a period of three to six months with a cost not to exceed $30,000. WHEREAS, The City of Seward wishes to extend the contact till the end of January 2021 in order to allow the City of Seward to recruit for a utility manager or restructure its electric utility; and WHEREAS, Borgeson agrees to continue his work as an independent contractor under the terms and conditions agreed to in the June 23, 2020 agreement. NOW, THEREFORE, the City of Seward and Borgeson agree to extend the current contract and the City of Seward agrees to fund that extension for twenty-two weeks covering a four-month period ending in January 2021. DATED: By: Scott Meszaros, Seward City Manager DATED: By: Cory Borgeson 109