HomeMy WebLinkAboutDecision on First Addendum to the December 4, 2006 Employment Agreement, Chris Kukulski.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Stacy Ulmen, City Clerk
Greg Sullivan, City Attorney
SUBJECT: Approve First Addendum to December 4, 2006 Employment Agreement Between the City of Bozeman and Chris Kukulski.
MEETING DATE: December 21, 2009
AGENDA ITEM TYPE: Regular RECOMMENDATION: Determine whether to approve the First Addendum to December 4, 2006
Employment Agreement Between the City of Bozeman and Chris Kukulski.
BACKGROUND:
Please replace the agreement you were given for the December 7th meeting with the attached. On December 4, 2006, the City Commission entered into a contract with Chris Kukulski for Mr. Kukulski to serve as the Bozeman City Manager. That contract expires on June 30, 2010. You
recently requested City Attorney Sullivan draft an extension of this Agreement.
The attached Agreement provides an Addendum to the 12/4/06 Agreement and extends the contract for an “indefinite term.” Section 3.10 of the Bozeman City Charter states, “The city commission, by
a majority vote of its total membership, shall appoint a city manager for an indefinite term…” Prior
to the adoption of the Charter you were able to enter into a term contract. That option no longer
exists under law. I included a provision that requires you to review the contract prior to June 30, 2011.
You will also note I propose two other amendments that reflect the above described Charter
provision. In addition, since last Monday City Attorney Sullivan spent additional time reviewing the contract
and suggests a change to Section 10 (Severance) to reflect that the term of the contract must be
indefinite per the above described Charter provision. Currently, Section 10 applies only when the
City Manager is terminated pursuant to Section 9. This will continue to be the case. Subsection A of this section currently has two parts: if severance occurs during a period of time between when the manager provides notice of a desire to modify or extend the agreement, the severance is six months
“plus the amount of compensation that would be due to the end of the current contract.” Because I
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suggest deleting Sect. 1.B in its entirety as the agreement must be for an indefinite term, I also
suggest amending this section. You may consider any time mutually agreeable between the parties. I
included 12 months severance as that is the current general severance provision.
No other provisions of the December 4, 2006 agreement have been altered.
FISCAL EFFECTS: None other than continued payment of wages and benefits.
ALTERNATIVES: As suggested by the City Commission.
Attachments:
• First Addendum to December 4, 2006 Employment Agreement Between the City of Bozeman
and Chris Kukulski (Version 12 16 09); and
• December 4, 2006 Employment Agreement Between the City of Bozeman and Chris Kukulski
Report compiled on: December 16, 2009
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Addendum to December 4 2006 Employment Agreement between the City of Bozeman and Chris A. Kukulski Page 1 of 2
First Addendum to the December 4, 2006 Employment Agreement Between the City of Bozeman and Chris A. Kukulski
THIS IS AN AGREEMENT made as of the 21st day of December, 2009 between THE CITY OF
BOZEMAN, a Municipal Corporation, Bozeman, Montana, PO Box 1230, Bozeman, MT 59771-
1230, through its duly elected Commission, (Commission) and Chris A. Kukulski, with an address of
1445 Cherry Drive, Bozeman, MT (Employee).
WHEREAS, the parties entered into an Employment Agreement on June 28, 2004, and again
on December 4, 2006, which is included herein as Attachment A; and
WHEREAS, the parties, having duly considered their rights under law, wish to amend the
December 4, 2006 Agreement pursuant to the limitations in the Bozeman City Charter; and
WHEREAS, Section 3.10 of the Bozeman City Charter states, “The city commission, by a
majority vote of its total membership, shall appoint a city manager for an indefinite term…”
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
conditions contained herein, the parties agree as follows:
1. To amend the following provisions of the December 4, 2006 Employment Agreement:
a. Section 1 (Term) shall be amended as follows:
Subsection A shall be replaced in its entirety with the following: “The parties agree
the Employment Agreement shall be extended from the date of signature by both
parties for an indefinite term. The parties agree to review the contract prior to June
30, 2011.”
Subsection B shall be deleted in its entirety.
Subsections C, D and E shall be renumbered recognizing deletion of subsection B
but shall remain unchanged in all other respects.
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Addendum to December 4 2006 Employment Agreement between the City of Bozeman and Chris A. Kukulski Page 2 of 2
b. Section 9 (Termination) shall be amended to read as follows:
Subsection F shall be replaced in its entirety with the following: “Upon failure to
reach agreement regarding renewal of this Employment Agreement.”
All other provisions of Section 9 shall remain in effect.
c. To amend Section 10 (Severance), subsections A and D only, so that each section
reads as follows:
“A. Severance Pay: If severance occurs any time during the term of this
Agreement twelve (12) months severance pay.”
…
D. Health Insurance Continuation: The Employee shall be allowed to continue
his health insurance for the severance period as provided in Section 4A.
All other subsections of Section 10 shall remain in effect.
2. All other provisions of the December 4, 2006 Employment Agreement not modified by this
Addendum shall remain in effect.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first
above written.
CITY OF BOZEMAN
________________________________
KAAREN JACOBSON
Mayor
Attest:
____________________________
STACY ULMEN, CMC
City Clerk
EMPLOYEE:
___________________________________
Chris A. Kukulski
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