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HomeMy WebLinkAboutRES2025-087 Sorensen ContractSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AMENDMENT #2 TO THE EMPLOYMENT AGREEMENT WITH THE CITY MANAGER AND APPROPRIATING FUNDS WHEREAS, Kathleen Sorensen has been employed with the City of Seward since September 2023; and WHEREAS, the position of City Manager is an at -will contract position and is not subject to the City's employee pay plan, and therefore any changes to compensation or terms of employment require an amendment to the employment contract; and WHEREAS, the original employment contract established a three-year term, and this amendment extends that term to five years to provide consistency, longevity, and stability in the City Manager position; and WHEREAS, this amendment adjusts the City Manager's annual salary from $156,600 by 2.5% to $160,515, and further establishes an annual cost -of -living adjustment of 2.5% to be applied each September; and WHEREAS, the amendment also modifies the leave provisions by removing the annual allotment of leave and instead increasing the City Manager's leave accrual to 347.1 hours per year. While this represents an annual accrual equivalent of $ 24,179.12, it does not result in any additional expenditure from the operational budget, as leave is only a contingent liability recorded for accounting purposes and is not an immediate cash outlay. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby authorizes the City Manager to Section 2. Funding in the amount of $3,915, representing a FY25 increase, is hereby transferred and appropriated in the FY25 City Operating Budget under 01000-1120-6000 City Manager department salary expense. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of September 2025. CITY OF SEWARD, ALASKA RESOLUTION 2025-087 Page 2 of 2 THE CITY OF SEWARD, ALASKA .Cte. Pfl'CQ,u.,e- Sue McClure, Mayor AYES: Wells, Osenga, Warner, Crites, McClure NOES: Finch ABSENT: Barnwell ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) t.IttIOF SE •`' 11 • •_', SEAL :•= . • `'•. E. OF A\- 1 1 City Council Agenda Statement Meeting Date: September 8, 2025 To: City Council From: Kat Sorensen, City Manager Subject: Resolution 2025-087: Approving Amendment #2 to the Employment Agreement with the City Manager and Appropriating Funds Background and justification: The City of Seward entered into an employment contract with Kat Sorensen in September 2023. The city manager is an at -will contract position and does not participate in the pay plan for city employees, and any changes in the employment contract require an amendment to the contract. The original employment contract was for a term of three years. This amendment would extend that term to five years, ensuring consistency, longevity, and stability in the city manager position. The amendment also increases the annual salary from $156,600 by 2.5% to a total of $160,515. The amendment also creates an annual mechanism for the City Manager wage to see an annual cost of living adjustment of 2.5% applicable annually in September. Additionally, this amendment removes mention of a moving expense reimbursement. Since Kat Sorensen already lived in the City of Seward at the time of her initial hiring, no moving expenses or costs were advanced or reimbursed by the City. The final change removes the accrual of an annual allotment of leave and instead increases the city manager's leave accrual to 347.1 hours per year. 11 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: This legislation (V): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): X $ 0 $ $ 3,915 $ Not budgeted Not applicable Affected Fund (✓): General Boat Harbor Motor Pool X Available Fund Balance SMIC Parking Other Electric Water Yes Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 5� Attorney Signature: Not applicable Comments: Attorney Review Administration Recommendation X Adopt Resolution Other: CITY MANAGER EMPLOYMENT AGREEMENT This Employment Agreement ("Agreement"), effective as of, September 10, 2023 is between the City of Seward, Alaska ("City") and Kathleen Sorensen ("Manager"). 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 AND SIXTY THOUSAND, FIVE HUNDRED AND FIFTEEN DOLLARS ($160,515) beginning September 8, 2025, with a 2.5% increase on September 1 for each successive year 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 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 28.925 hours per month for use for personal absences, vacation, and sick leave. Notwithstanding the leave accrual provided under this section, 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 five 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 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. 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 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 MANA ER LatIncee- Sue McClure, Mayor Kat -en Sorensen Kris Peck, City Clerk [City Seal] 8't'I*IIII►/�� . t OF SEfti'4. F • ist. SEAL :• OF AN - Resolution 2025-087