HomeMy WebLinkAboutRES2026-073 Sorensen Contract - Amendment 3Sponsored by: Sorensen
Amended and Approved: August 24, 2026
CITY OF SEWARD, ALASKA
RESOLUTION 2026-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
APPROVING AMENDMENT #3 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, this amendment increases the annual salary to $175,000 and the annual cost -of -living
adjustment of 2.5% to 3.5%; and
WHEREAS, the amendment also allows for a personal vehicle reimbursement of $400 monthly.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA:
Section 1. The City Council hereby approves Amendment #3 to the City Manager Employment
Agreement.
Section 2. Funding in the amount of $4950, representing a FY26 increase is hereby transferred
and appropriated in the FY26 City Operating Budget under 01000-1120-6XXX City Manager
Department salary expense. Following years will be incorporated into the new FY27-28 Biannual
Operating Budget.
Section 3. This resolution shall take effect immediately upon adoption.
APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 24th
DAY OF AUGUST 2026.
Sue McClure, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2026-073
Page 2 of 2
AYES: Osenga, Calhoon, Barnwell, Crites, Warner, Draper, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: August 24, 2026
To: City Council
Through: Kat Sorensen, City Manager
Subject: Resolution 2026-073: Approving Amendment #3 to the Employment
Agreement with the City Manager and Appropriating Funds
Background and justification:
Kathleen Sorensen has served as City Manager since September 2023. As an at -will contract
position, the City Manager is not subject to the City's employee pay plan, meaning any change to
compensation or other terms of employment requires a formal amendment to the employment
agreement.
This resolution approves Amendment #3 to the Employment Agreement, which makes two
changes: it increases the annual cost -of -living adjustment from 2.5% to 3.5%, and it adds a
provision authorizing an annual performance bonus, the award of which is contingent on the
outcome of the City Manager's annual evaluation.
Fiscal Impact:
Funding Source:
X
X
Fiscal Impact
Yes — Amount: $8,744 Budgeted:
No
General Fund:
Enterprise Fund:
Grant:
Other:
01000-1120-6XXX
X
Yes
No — Will be incorporated in the
FY27-28 Operating Budget
N/A
Finance Director Signature: Se
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
City Council Agenda Statement
X
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
X
Approve
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
SEVENTY FIVE THOUSAND DOLLARS ($175,000) beginning on September 1, 2026,
with a 3.5% 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.
Amendment #3 as approved in Resolution 2026-073 on August 24, 2026
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. Personal Vehicle Reimbursement: City shall reimburse Manager for
personal use of vehicle at a rate of $400 per month.
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
Amendment #3 as approved in Resolution 2026-073 on August 24, 2026
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.
Amendment #3 as approved in Resolution 2026-073 on August 24, 2026
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 Toss 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.
Amendment #3 as approved in Resolution 2026-073 on August 24, 2026
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 MANAGER
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Sue McClure, Mayor
Kris Peck, City Clerk
[City Seal]
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Amendment #3 as approved in Resolution 2026-073 on August 24, 2026