HomeMy WebLinkAboutRes2022-108 City Manager Contract Amend 2 CITY OF SEWARD,ALASKA Sponsored by: Bower
RESOLUTION 2022-108
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING AMENDMENT #2 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, on October 10, 2022, the City Council directed the City Manager to
bring back a resolution to amend the current employment agreement; and
WHEREAS, this resolution will amend Section 2 (a) of the employment agreement to
state, "Salary. Manager shall receive an annualized salary of one hundred sixty-five thousand,
eight hundred thirty($165,830)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."; and
WHEREAS, this resolution will amend Section 2 (e) of the employment agreement to
state, "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. On
January 1 St of each year, beginning in 2023, the City Manager shall receive a one-time allotment
of eighty(80)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."; and
WHEREAS, this resolution will amend Section 3 (a) to state, "Term. The term of
Manager's employment under this Agreement shall begin on the Effective Date and remain in
effect until December 31, 2027. 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."; and
WHEREAS, this resolution will amend this resolution will amend Section 3 (b) to state,
"Termination. Manager's employment under this Agreement is terminable "at will" it being
CITY OF SEWARD,ALASKA
RESOLUTION 2022-108
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 of the date of termination.Accrued paid leave
shall be paid as a lump sum."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The City Council hereby approves Amendment no. 2 to the City
Manager's employment agreement.
Section 2. This resolution shall be effective on January 1, 2023.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 24th
day of October, 2022.
THE CITY OF SEWARD, ALASKA
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Sue McClure,Mayor
AYES: Calhoon, DeMoss, Osenga,Wells, McClure
NOES: None
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City Council Agenda Statement
Meeting Date: October 24, 2022
To: City Council
From: Janette Bower, City Manager
Agenda Item: Resolution 2022-108: Approving Amendment #2 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.
City Council has determined that a 15% increase in pay is warranted. This resolution increases the
annual salary from $144,200 to$165,830, effective January 1, 2023.Additionally, 80 hours of leave
will be added to the City Manager's leave account and the severance is increased from 3 months to
6 months.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Certification of Funds
$ These updates will be included in the 2023
Total amount of funds listed in this legislation: operating budget
This legislation (✓):
Creates revenue in the amount of: $
Creates expenditure in amount of: $
Creates a savings in the amount of: $
x Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
x Not budgeted
Not applicable
Unassigned Fund Balance and Available Unrestricted Cash Balance Information
Fund (✓):
x General SMIC Electric Wastewater
Boat Harbor Parking F1 Water F1 Healthcare
Motor Pool Other
31
Unassigned Fund Balance*: $ *unaudited numbers
Available Unrestricted Cash Balance*: $
Finance Signature:
47
Attorney Review
RYes Attorney Signature:
X Not applicable Comments:
Administration Recommendation
e✓ Adopt Resolution
Other:
32
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CITY MANAGER EMPLOYMENT AGREEMENT
Amendment #2
This Employment Agreement ("Agreement"), effective as of May 24, 2021 ,
("Effective Date"), is between the City of Seward, Alaska ("City") and Janette Bower
("Manager"). Amendment #2 shall be effective on January 1, 2023.
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 ONE HUNDRED
Cr1CTV_FOUR THOUSAND TWO HUNDRED DOLLARS ($114 ,200. ONE
HUNDRED SIXTY-FIVE THOUSAND EIGHT HUNDRED AND THIRTY DOLLARS
165 830 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
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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. On January 1st of each year, beginning
in 2023, the City Manager shall receive a one-time allotment of eighty (80) 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. 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.
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I. 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 t;Teeyea,s after the-Effe�iDate, Un'e16s
in IAiri+inn or terminated as provided in this Agreement. Remain in effect until
December 31, 2027. 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 six
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
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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
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
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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. 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
Sue McClure, Mayor Janette Bower
ATTEST:
Brenda Ballou, City Clerk
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