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HomeMy WebLinkAboutRes2022-037 City Manager Contract Amendment 1 CITY OF SEWARD,ALASKA Sponsored by: Bower RESOLUTION 2022-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AMENDMENT #1 TO THE EMPLOYMENT AGREEMENT WITH THE CITY MANAGER WHEREAS, Janette Bower has been employed with the City of Seward since May, 2021; and WHEREAS, the City Manager is a contract employee with the City of Seward; and WHEREAS, the City Council provides the City Manager a written performance evaluation annually as described in section 6 of the employment agreement; and WHEREAS, on February 28, the City Council provided the City Manager with a performance evaluation; and WHEREAS, this resolution will amend Section 2 the employment agreement to state, "Salary. Manager shall receive an annualized salary of one hundred forty-four thousand two hundred dollars ($144,200) during the term of this agreement, payable in regular installments at the time other City employees are paid,or as otherwise agreed upon between the parties in writing. All compensation paid to Manager shall be subject to required employment deductions,taxes, and contributions". NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council approves Amendment no. 1 to the City Manager's employment agreement to increase the base salary to $144,200, which will be retroactively applied to January 1, 2022. Section 2. Funding in the amount of $4,200 is budgeted in line item 01000-1120- 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 March, 2022. CITY OF SEWARD, ALASKA RESOLUTION 2022-037 H C " 5' SEWAR I • LASKA risty Terry Mayor AYES: Calhoon, Wells, Casagranda, DeMoss, McClure, Terry NOES: None ABSENT: Osenga ABSTAIN: None ATTEST: Brenda J. Ball u, MMC City Clerk ssssssss ss (City Seall•` of SErV••'• . •. G l • F . • • = SEAL = • --�- •J • �•ti.,TF OF�Itkr%0' City Council Agenda Statement Meeting Date: March 14, 2022 To: City Council From: Christy Terry, Mayor Agenda Item: Resolution 2022-037: Approving Amendment #1 to the Employment Agreement with the City Manager Background and justification: Janette Bower has been employed as the Seward City Manager since May 2021 and since that time she has conducted her work in an exemplary fashion. During this timeframe, City Administration has made improvements to a number of City priorities and Janette has embraced the priorities that City Council has directed. Per section 6 of the City Manager Employment Agreement, the City Council annually provides the City Manager with a performance evaluation. In addition, the salary listed in Section 2 of the Employment Agreement is reviewed. City Council has determined that a 3% increase in pay is warranted. This resolution increases the annual salary from $140,000 to $144,200, which constitutes a 3% pay increase, retroactive to January 1, 2022. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 4,200 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 4,200 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): x Budgeted Line item(s): 01000-1120-6000 Not budgeted Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Unassigned Fund Balance*: $ *unaudited numbers Available Unrestricted Cash Balance*: $ Finance Signature: Attorney Review✓ Administration Recommendation RxYes x Adopt Resolution Not applicable Other: -_16 CITY MANAGER EMPLOYMENT AGREEMENT This Employment Agreement ("Agreement"), effective as of May 24, 2021, ("Effective Date"), is between the City of Seward, Alaska ("City") and Janette Bower ("Manager"). RECITALS WHEREAS,the City wishes to employ Janette Bower as City Manager and Janette Bower has agreed to serve the City in the capacity of City Manager as provided for in this Agreement, NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants set forth in this Agreement, the City and Manager agree as follows: Section 1. Duties of Manager. A. Scope of Duties. Manager shall be employed by City as, and hold the title of, "City Manager" of the City. Manager shall serve at the pleasure of, and report directly to, the Seward City Council ("Council"). Manager shall perform all duties and discharge all responsibilities of that position as prescribed by law, including but not limited to Seward City Code 2.20.035. City Manager shall be aware of any changes in the laws governing her duties and obligations under law and comply with those changes. Manager shall maintain residency in the City during the entire term of this Agreement. B. Confidentiality. Manager recognizes that she will receive and have access to information of a confidential nature. Manager agrees any confidential information obtained as a result of the City Manager position will be maintained as confidential to the extent authorized by law. The City may terminate this agreement without notice and hold Manager accountable to the greatest extent permitted by law if she violates this provision. In order to find a violation of this provision, Manager's breach of confidentiality must be evident in a document, at a public event or conceded by Manager. Section 2. Compensation and Benefits of Manager. A. Salary. Manager shall receive an annualized salary of 0—NE WUPI^Q€O FOR= THOUSAND DOLLARS ($440,009.99) ONE HUNDRED FORTY-FOUR THOUSAND TWO HUNDRED DOLLARS ($144,200) during the term of this Agreement, payable in regular installments at the time other City employees are paid, or as otherwise agreed upon between the parties in writing. All compensation paid to Manager shall be subject to required employment deductions, taxes, and contributions. B. Exempt Status. Manager acknowledges that the position of Manager is exempt from the overtime requirements of state and federal wage and hour laws and as such, Manager is expected to work the hours necessary to accomplish the goals and requirements of the position. C. Retirement Benefits. Manager shall be enrolled in the Alaska Public Employees Retirement System (PERS) during the term of this Agreement, so long as the City participates in the System. D. Health and Welfare Benefits. Manager shall receive group medical and dental insurance coverage as provided to the employees of City, including coverage for family members, subject to the requirements of the applicable plan. E. Paid Leave. Manager shall accrue leave of 13 1/3 hours per month (160 hours per year) for use for personal absences, vacation, and sick leave. Notwithstanding the leave accrual provided for under this section, Manager shall additionally receive a one-time allotment of one hundred twenty (120) hours of leave effective at the commencement of the term of this agreement. Leave continues to accrue when Manager is on paid leave. Manager shall keep the Council generally apprised of planned absences; leave exceeding five (5) consecutive days in duration must be approved by the Council. Upon employment separation, including expiration of this Agreement, Manager shall receive payment for all accrued, unused leave, in accordance with City policy and practices, so long as Manager is in compliance with this Agreement. Any payment of accrued unused paid leave shall be subject to all deductions, taxes and contributions required by law. F. Travel Meetings, and Professional Development Expenses. Manager shall receive reimbursement from City for reasonable lodging and meal expenses while travelling out-of-town for meetings or professional development in the interests of the City, specifically to include the AML annual conference, and any other events as may be approved by Council. City shall pay for professional dues for ICMA membership, and other subscriptions or dues for participation in national, regional, state, and local associations and organizations for the Manager's continued professional growth and advancement, as may be approved by the Council. G. Relocation Expenses. Manager shall be entitled to a relocation cost reimbursement advancement of FIVE THOUSAND DOLLARS ($5,000.00), upon execution of this agreement. Manager shall provide satisfactory documentation of such expenses, consistent with IRS rules regarding allowable expenses. Any questions or disputes regarding the sufficiency or validity of documentation under this section shall require Council approval of reimbursement. A receipt from a licensed moving company or vehicle rental company shall constitute satisfactory documentation and is not subject to dispute. H. Use of City Vehicle. City shall provide Manager with a motor vehicle for both business and de minimus personal use in accordance with City policy on employee use of city vehicles. €. Holidays. Manager will receive compensation for holidays recognized in SCC 3.50.010 as set forth in SCC Chapter 3.50. Section 3. Tern} And Termination. A. Term.The term of Manager's employment under this Agreement shall begin on the Effective Date arid end three years after the Effective Date, unless extended in writing or terminated as provided in this Agreement. The City and Manager shall advise the other party of their intent to seek negotiation of a renewal or extension of this Agreement, no later than sixty (60) days before the expiration of this Agreement. B. Termination. 1. Manager's employment under this Agreement is terminable "at will" it being expressly and explicitly understood and agreed by Manager that she holds the position of City Manager and serves as City Manager at the will of the Council. The City may terminate this Agreement for any reason of for no reason following the affirmative vote of at least four members of Council at a properly posted and duly authorized public meeting. Manager acknowledges that any action by the Council in connection with terminating Manager's employment under this Agreement is not subject to any administrative or grievance procedure, and Manager hereby waives the benefit of any right to prior notice, pre- or post- termination hearing or any other procedure that may now or hereafter apply to any such action by the Council or be available to other City employees. Upon termination pursuant to this paragraph, City shall be responsible for payment of three months' severance pay inclusive of health insurance COBRA premiums in addition to the balance of the Manager's accrued paid leave as of the date of termination. Accrued paid leave shall be paid as a lump sum. 2. In addition to termination for any reason or no reason, the City may terminate Manager for "just cause" based upon the performance and professional conduct of Manager. Should City intend to terminate Manager for "just cause", Manager shall be given written notice of the reasons for the termination and an opportunity to respond in person before the Council in either open or executive session at Manager's sole option prior to the effective date of the termination of employment. If the City terminates Manager for "just cause", separation pay will include only accrued leave and wages earned to the date of termination, no severance will be paid. 3. Prior to any termination by the City, whether with or without "just cause" the Council or a representative thereof shall consult with the City Attorney. C. Resignation. Manager may resign her position upon sixty (60) days written notice to City Council. Should Manager resign under this Agreement, she shall be entitled to no additional compensation under this Agreement beyond the effective date of her separation, other than accrued but unused paid leave in accordance with the terms of this Agreement. At its option, the City may release Manager from her obligation to continue working through the notice period upon payment of salary through the effective resignation date; however, on no account shall Manager receive compensation in lieu of service for a period longer than sixty (60) days regardless of the length of notice provided by Manager. In the event Manager resigns prior to May 24, 2022, Manager shall be 6 obligated to reimburse City for all moving expenses and costs advanced or reimbursed by the City. The City, in its sole discretion, may waive this obligation, in writing, in the event circumstances warrant. Section 4. Other Employment. It is recognized that Manager must devote a great deal of time outside normal office hours to business of the City, including but not limited to attendance at regular and special City Council meetings. Normal work hours in a regular workweek hereunder shall be construed to mean Monday through Friday, an 8-hour period between 7:00 a.m. and 6:00 p.m. Manager shall not take nor undertake employment with any other person, entity or business, without prior approval of the City Council. Section 5. Indemnification by City._ The City shall indemnify, hold harmless and defend Manager against all claims and liability which may result from any claim, action or suit by person based upon alleged injury to or death of a person or alleged loss of or damage to property that may occur or that may be alleged to have been caused by Manager in the course of performance of her official duties during the duration of her employment with City under this Agreement, provided, however, that City shall not be obliged to indemnify, hold harmless or defend Manager against any such claim that was caused by Manager while acting outside the course of performing her official duties, or from any false, deceptive, dishonest or criminal act or omission under the laws and regulations of the United States of America, the State of Alaska and/or any political subdivision thereof. The City shall not be responsible for the defense costs or indemnification of any legal counsel or costs or fees under this section unless Council approves reimbursement or payment of those costs and fees in writing and before such costs and fees are incurred. Section 6. Performance Evaluation. Manager shall be evaluated by Council upon completion of six months of employment. Thereafter Manager shall be evaluated annually on or near her anniversary date. The procedure for evaluation of the Manager shall be as established by City Council Resolution. Section 7. General Provisions. A. No Conflict of Interest. During the term of this Agreement, Manager will not enter into any activity, employment or business arrangement which conflicts with the best interests of the City, or otherwise interferes with performance of her duties under this Agreement, as may be determined in the sole discretion of Council. Manager shall comply with Seward City Code 2.01.020(a). Manager shall advise Council of any activity, employment or business arrangement she is contemplating entering which might conflict or give the appearance of conflicting with the City's interests; failure to do so may subject Manager to termination. 16 B. Choice of Law and Venue. 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 City of Seward, Alaska, and the venue for any legal proceedings thereon shall be the Superior Court for the State of Alaska, Third Judicial District. C. Entire Agreement. This Agreement supersedes all prior oral or written agreements, if any, between Manager and City, and constitutes the entire agreement between Manager and City and approved by the Council. D. Modification or Amendment. This Agreement shall not be supplemented, modified or amended, except by a written agreement signed by Manager and approved by Council. E. Severability. If any provision of this Agreement shall be declared invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect. F. Title 3 Provisions. Sections 3.45.065 (military leave), 3.45.070 (jury duty leave), 3.45.075(d) (FMLA leave), 3.45.075(e) (fitness for duty certification), 3.60.010 (gifts and gratuities), 3.60.020 (employment of family members), 3.60.025 (travel expenses), and Chapters 3.70 (standards relating to drugs and alcohol), 3.75 (standards relating to employee conduct) and 3.80 (workers' compensation) of Title 3 of the Seward City Code apply to this Agreement. No other provision of Title 3 shall apply. IN WITNESS WHEREOF the City has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its City Clerk. Janette Bower has signed and executed this Agreement for and on behalf of herself, both in duplicate, as of the day and year first above written. CITY OF SEWARD CITY MANAGER Christy Terry, Mayor Janette Bower CITY OF SEWARD ATTEST: Norm Regis, Acting City Manager Brenda Ballou, City Clerk [City Seal]