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Home My WebLink AboutRES2023-078 Montgomery Contract CITY OF SEWARD,ALASKA Sponsored by: Regis RESOLUTION 2023-078 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER AN INDEPENDENT CONTRACTOR AGREEMENT WITH ROB MONTGOMERY WHEREAS, Rob Montgomery submitted his resignation as an employee of the City of Seward on July 3, 2023; and WHEREAS, Montgomery will continue to work in Seward through the duration of the contract; and WHEREAS, Montgomery, as the current general manager of the City's electric utility, has given the City his resignation effective August 2, 2023, to begin performing energy and communications consulting services; and WHEREAS, Montgomery has more than 20 years of experience in the electric utility industry and has served as general manager of Seward's electric utility for the past 2.5 years; and WHEREAS, Montgomery has proposed a consulting agreement with the City to continue managing the electric utility beginning August 3,2023 through December 31,2023, as the City determines how to best restructure its electric utility for the future, and WHEREAS,the rate of pay provided for in this contract is in line with industry standards given that no benefits are included in the compensation package; and WHEREAS,the City desires to contract with Montgomery for this purpose. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1.The City Manager is authorized to enter into an Independent Contractor Agreement with Rob Montgomery. Section 2. Funding in the amount of$111,530.00 is appropriated from Electric Enterprise Fund Unassigned Account number 15000-0000-3400 to Contracted Services Account Number 15000-3000-7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of July, 2023. • CITY OF SEWARD, ALASKA RESOLUTION 2023-078 THE CITY OF SEWARD, ALASKA re, Sue McClure, Mayor AYES: Finch, Osenga, Calhoon, Demoss, McClure NOES: None ABSENT: Wells, Barnwell ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) 441/176-44-Nzi),0\OF SE�'V,9'•°'`: • : SEAL —+— kcp **.; OF�P�: tss City Council Agenda Statement Meeting Date: July 10, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Resolution 2023-078: Authorizing The City Manager To Enter An Independent Contractor Agreement With Rob Montgomery And Appropriating Funds Background and justification: Montgomery, as the current general manager of the City's electric utility, has given the City his resignation effective August 2, 2023, to begin performing energy and communications consulting services. Rob has served as the City's Electric Utility Director since January 2020 and has done a tremendous job during this time period. Rob has worked for several large utility companies in the United States and has over 20 years of industry experience.Montgomery has proposed a consulting agreement with the City to continue managing the electric utility beginning August 3, 2023, through December 31, 2023, as the City determines how to best restructure its electric utility for the future. 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: S 111,530.00 This legislation(✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 111,530.00 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15000-3000-7009 x Not budgeted Not applicable Fund Balance Information Affected Fund(✓): General SMIC x Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited 294 Available Fund Balance $ 5,9 44,605 el Finance Director Signature: _ ,fir 40 Attorney Review Iq Yes Attorney Signature: Sam Severin 7/3/2023 Not applicable Comments: Administration Recommendation rq Approve Res. Other: 295 INDEPENDENT CONTRACTOR AGREEMENT The parties to this Independent Contractor Agreement ("Agreement") are Robin (Rob) V. Montgomery ("Montgomery") and the City of Seward (the "City"). WHEREAS, Montgomery, as the current general manager of the City's electric utility, has given the City his resignation effective August 2, 2023, to begin performing energy and communications consulting services; and WHEREAS, Montgomery has more than 20 years of experience in the electric utility industry and has served as general manager of Seward's electric utility for the past 2.5 years; and WHEREAS, Montgomery has proposed a consulting agreement with the City to continue managing the electric utility as the Acting General Manager beginning August 3, 2023, through December 31, 2023, as the City determines how to best restructure its electric utility for the future, and WHEREAS, the City desires to contract with Montgomery for this purpose. NOW, THEREFORE, the City of Seward and Montgomery agree as follows: i. Professional Services Montgomery will fill the Acting Electric Utility Manager position for the City of Seward for an indefinite period, not expected to exceed six months. Montgomery will be bound by all rules, policies, procedures, and ordinances about the position and its duties, including, but not limited to, City ordinances, state and federal law, City of Seward Electric Utility policies, rules and procedures, and national electrical safety standards and codes (e.g., the National Electrical Safety Code and the National Electric Code where they pertain). Montgomery shall be directly supervised by the City Manager and shall have such authority and responsibilities as may be delegated by the City Manager, consistent with City Code. Montgomery will continue to represent the Seward Electric System and, as such, the City of Seward in the state, federal, and Railbelt utility industry groups including, but not limited to, Railbelt Reliability Council, Railbelt Utility Managers Council, Bradley Lake Project Management Committee, Alaska Power Association and the Northwest Public Power Association. 1 298 2. 1 ndependent Contractor Status It is the intent of Montgomery and the City that Montgomery is and should be classified as an independent contractor and not an employee of the City. As such, Montgomery is entitled to no additional or procedural due process as may be applicable to City employees. Montgomery agrees to provide the City with the appropriate tax identification information and assumes responsibility for reporting and withholding any and all income taxes. 3. Compensation Montgomery will invoice the City for his services at the rate of four thousand, six hundred and fifteen dollars ($4,615.00) per workweek. Montgomery shall not bill the City for any week in which no work is performed. Also, upon submission of invoices, the City agrees to reimburse Montgomery for actual incurred living expenses (to include rent and utilities) not to exceed $2,000.00 per month. The City shall provide Montgomery the use of a utility vehicle during normal business hours in Seward or for any utility business outside of the Seward service area (to include work activities outside normal business hours, if needed) during the term of this contract and shall be responsible for the costs of vehicle insurance, fuel, and required maintenance. Montgomery shall comply with all City policies and procedures regarding the use of City-owned or leased vehicles. 4. Conflict of Interest Montgomery will devote full-time efforts to the position. Montgomery 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 Montgomery learns of a potential conflict of interest, whether actual or perceived, Montgomery shall provide written notice of said conflict to the City Manager as soon as practical upon learning of the potential conflict. 5. Termination The City may terminate this Agreement at any time upon written notice. Upon termination, Montgomery 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 penalties if any, for termination of any rental agreement. Montgomery 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 Montgomery's services or terminate the Agreement effective immediately. In the event of such 2 299 termination, Montgomery shall be entitled to compensation 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 the City. 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 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. Voluntary Execution Montgomery 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. Montgomery 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. 10. Entire 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 Montgomery, 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 3 300 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. DATED: Norm Regis Interim City Manager City of Seward DATED: Rob Montgomery 4 301