HomeMy WebLinkAboutRES2024-053 City Mgr Amendment 1Sponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2024-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING AMENDMENT #1 TO THE EMPLOYMENT
AGREEMENT WITH THE CITY MANAGER AND APPROPRIATED
FUNDS
WHEREAS, Kathleen Sorensen has been employed with the City of Seward since
September 2023; and
WHEREAS, the City Manager is a contract employee with the City of Seward, and
as such, does not participate in standard employee step increases or cost of living adjustments
(COLA) as outlined in the Seward City Code, unless approved via resolution as an amendment
to the employment agreement; and
WHEREAS, the employment agreement states the City Council agrees to review the City
Manager's performance and contract annually, and may consider a salary increase or other
amendment(s) to this contract upon favorable review; and
WHEREAS, on September 9, 2024, the City Council performed•aiiannual evaluation,
and the results were highly satisfactory; and
WHEREAS, on September 9, 2024, the City Council directed the City Manager to
bring back a resolution to amend the current employment agreement; and
WHEREAS, this resolution will amend the employment agreement to increase the City
Manager's salary to $156,600, representing an 8% salary increase, to increase the severance from
3 to 6 months, and add an annual one-time allotment of 40 hours of annual leave.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Council hereby approves Amendment # 1 to the City
Manager's employment agreement to change the annual base salary to $156,600, change
severance to 6 months, and add an annual one-time allotment of 40 hours of annual leave.
Section 2. Funding in the amount of $11,000 is hereby appropriated from the General
Fund Unassigned account 01000-0000-3400 to the 01000-1120-6000 salary expense account.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 23rd
day of September 2024.
CITY OF SEWARD, ALASKA
RESOLUTION 2024-053
Page 2 of 2
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
AYES: Finch, Barnwell, Crites, Calhoon, Osenga, Wells, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
(City Seal)
S
SEAL "
• .
0
•.• ✓ `1 •
,v,,
°ff E OF 1\\-
aid
1
City Council Agenda Statement
Meeting Date: September 23, 2024
To: City Council
From: Kat Sorensen, City Manager
Subject: Resolution 2024-053: Approving Amendment #1 to the Employment
Agreement with the City Manager
Background and justification:
Kathleen (Kat) Sorensen has been employed as the Seward City Manager since September 2023
and since that time she has conducted her work in exemplary fashion.
City Council has determined that an 8 percent increase in pay is warranted. This resolution
increases the annual salary from $145,000 to $156,600, effective September 23, 2024.
Additionally, forty hours of leave will be added to the City Manager's leave account annually on
the first of the year and the severance is increased from three months to six months.
These funds will be included in the FY2024/2025 operating budget.
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: $ $156,600
This legislation (✓):
Creates revenue in the amount of:
Creates expenditure in amount of:
Creates a savings in the amount of:
Has no fiscal impact
x
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
x
$ $156,600
Affected Fund (✓):
General
Boat Harbor
Motor Pool
x
SMIC
Parking
Other
Electric
Water
Wastewater
Healthcare
Available Fund Balance
x
Yes
Attorney Signature:
Not applicable Comments:
Note: amounts are unaudited
$ 11,503,942.34
Finance Director Signature:
Administration Recommendation
Adopt Resolution
Other:
CITY MANAGER EMPLOYMENT AGREEMENT
Amendment #1
This Employment Agreement ("Agreement"), effective as of, September 10, 2023, is
between the City of Seward, Alaska ("City") and Kathleen Sorensen ("Manager"). This
contract was amended on September 23, 2024 via Resolution 2024-053
RECITALS
WHEREAS, the City wishes to employ Kathleen Sorensen as City Manager and
Kathleen Sorensen 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 within ten miles from mile marker zero of the Seward Highway 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 ONE HUNDRED
FIFTY-SIX THOUSAND AND SIX HUNDRED DOLLARS ($156,600) during the term of
this Agreement, payable in regular installments at the time other City employees are paid.
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
City Manager Employment Agreement with Amendment #1 Resolution 2024-053
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 under this section, Manager shall additionally receive a one-
time allotment of ninety (90) hours of leave effective at the commencement of the term of
this agreement. On January 1 of each year, beginning in 2025, the City Manager shall
receive a one-time allotment of forty (40) hours of leave. 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. Use of City Vehicle. City shall provide Manager with a vehicle for business
use in accordance with City policy on employee use of city vehicles.
H. Holidays. Manager will receive compensation for holidays recognized in
SCC 3.50.010 as set forth in SCC Chapter 3.50.
Section 3. Term And Termination.
A. Term. The term of Manager's employment under this Agreement shall begin
on the Effective Date and end three years after the Effective Date, unless extended in
writing or terminated as provided in this Agreement. The City and Manager shall advise
City Manager Employment Agreement with Amendment #1 Resolution 2024-053
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 six
months' severance pay inclusive of health insurance COBRA premiums in addition to the
balance of the Manager's accrued paid leave as the 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 September 10, 2024, Manager shall
be 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.
City Manager Employment Agreement with Amendment #1 Resolution 2024-053
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.
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
City Manager Employment Agreement with Amendment #1 Resolution 2024-053
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. Kathleen Sorensen
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 MA ER
sq-mece4
Sue McClure, Mayor
ATTEST:
Kris Peck, City Clerk
[City Seal]
orensen
City Manager Employment Agreement with Amendment #1 Resolution 2024-053