HomeMy WebLinkAboutApprove City Manager Employment Agreement65432_7
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Greg Sullivan, City Attorney
SUBJECT: City Manager Employment Agreement
MEETING DATE: June 21, 2010
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve City Manger Employment Agreement
BACKGROUND: The consent item before you is approval of an Employment Agreement
with the City Manger. City Manager Chris Kukulski was hired in 2004 with an employment
agreement that expired in 2006. The most recent employment agreement was entered into by the
City Commission and the City Manager on December 4, 2006 and included a term that expires
this coming June 30, 2010.
Several of the provisions in this Agreement reflect the adoption of the Bozeman City Charter
since the 2006 Employment Agreement was executed.
The majority of the provisions in the Agreement are unchanged from the current 2006
Employment Agreement but several sections have changed. These include:
· Term (Section 1): The City Charter specifically requires the Employment Agreement to
be for “an indefinite term.” The previous Agreement contained a fixed term – this
Agreement does not. This section has been amended to require a biannual review of the
contract.
· Duties and Authority (Section 2): This section has been amended to include the duties
and authority as reflected in the Charter.
· Termination (Section 9):
a. Several provisions were amended to reflect the adoption of the Charter.
b. A new subsection (F) has been added to reflect the Charter requirement that the
contract be for an indefinite term. This subsection provides that during December
of each even year the Commission may notify the City Manager the contract will
not be renewed as of the commencement of the following fiscal year. The City
Manger would be required to continue employment until that time.
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· Severance (Section 10): Subsection A allows for a six-month severance if notice of
termination of the contract is provided to the City Manger during the time period in
Section 9.F. If the City Manager would be terminated for any other reason provided in
Section 9 the severance will be equal to 12 months pay.
· Performance Evaluation (Section 12): This provision now requires a performance
evaluation to occur prior to December 1st of each year and also now requires the
Commission and City Manager to work together to complete a work plan by March 1 of
each year.
· Public Document (Section 20): This section recognizes the City Manager’s Employment
Agreement is a public document.
UNRESOLVED ISSUES: None identified.
ALTERNATIVES: None suggested or proposed.
FISCAL EFFECTS: Entering into this Employment Agreement will not alter the City’s
financial obligations to the City Manager. Entering into the agreement will increase the City
Manager’s accrued vacation from 14 hours of accrued vacation leave per month to 16 hours.
Attachments: City Manger Employment Agreement (dated June 21, 2010)
Report compiled on: June 15, 2010
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1
EMPLOYMENT
AGREEMENT
Between
The City of Bozeman
And
Chris A. Kukulski
June 21, 2010
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EMPLOYMENT AGREEMENT
TABLE OF CONTENTS
Page
Introduction ........................................................................................................ 1
Section 1 Term .................................................................................................................... 1
Section 2 Duties and Authority ............................................................................................. 1
Section 3 Compensation .................................................................................................. 1-2
Section 4 Health, Disability and Life Insurance Benefits ...................................................... 2
Section 5 Leave ................................................................................................................. 2
Section 6 Vehicle Allowance ............................................................................................ 2-3
Section 7 Retirement .......................................................................................................... 3
Section 8 General Business Expenses ............................................................................ 3-4
Section 9 Termination ......................................................................................................... 4
Section 10 Severance ....................................................................................................... 4-5
Section 11 Resignation ........................................................................................................ 5
Section 12 Performance Evaluation ...................................................................................... 5
Section 13 Hours of Work .................................................................................................... 5
Section 14 Outside Activities ................................................................................................ 5
Section 15 Residency ........................................................................................................ 5-6
Section 16 Indemnification ................................................................................................... 6
Section 17 Bonding .............................................................................................................. 6
Section 18 Other Terms and Conditions of Employment ....................................................... 6
Section 19 Notices.............................................................................................................. 6-7
Section 20 General Provisions .............................................................................................. 7
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1
Employment Agreement
Introduction
This Agreement, made and entered into this 21st day of June 2010, by and between the City
of Bozeman, Montana, a municipal corporation with offices at 121 North Rouse Avenue, Bozeman,
Montana, (hereinafter called City) and Chris A. Kukulski, (hereinafter called Employee) an individual
who currently resides at 1445 Cherry Drive, Bozeman, Montana, both of whom agree as follows:
Section 1
Term
A. This Agreement shall commence from the date of signature by both parties for an
indefinite term, subject to sections 9, 10, 11, and 12 of this Agreement. The parties
agree to review this Agreement within 30 days after December 1 of every year that
ends in an even number to commence with December 1, 2010 (e.g. review shall
occur during December of 2010, 2012, 2014, etc.).
B. Should either party desire to modify this Agreement at any time other than the review
period described in Section 1.A, above,, the party wishing to amend this Agreement
shall serve written notice of proposed modifications in writing.
C. Employee agrees to remain in the exclusive employ of City and agrees to accept no
other employment during the term of this Agreement, except as provided in this
Agreement.
D. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
the Commission to terminate the services of Employee at any time for any reason or
for no reason, subject to the provisions set forth in Section 9 or 10 of this Agreement
and the Bozeman City Charter.
E. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of
the Employee to resign at any time from this position with City, subject to the
provisions set forth in Section 11 of this Agreement.
Section 2
Duties and Authority
City agrees to employ Chris A. Kukulski as City Manager to perform the functions and duties
specified by Section 3.04 of the City Charter, the Bozeman Municipal Code, State law and the job
description, and to perform other legally permissible and proper duties and functions.
Section 3
Compensation
A. Base Salary: City agrees to pay Employee an annual base salary of One Hundred
Thirteen Thousand Eighty Eight Dollars and Twelve Cents ($113,088.12) payable in
installments at the same time that the other management employees of the City are
paid.
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B. COLA: City agrees to annually increase said base salary of Employee by the
December U.S. Consumer Price Index for All Urban Consumers for All Items on an
annual basis, with the effective date of said increase to be July 1st of each year.
C. Merit Wage Adjustment: In addition, the City may determine that a merit based
increase is appropriate for Employee, based on Employee’s accomplishments of
Commission set performance goals and objectives. This performance increment, if
any, will be determined annual by vote of the City Commission and will be effective
July 1st.
Section 4
Health, Disability and Life Insurance Benefits
A. The City agrees to provide and to pay the premiums for health, dental and vision
insurance equal to that which is provided to all other employees of the City of
Bozeman. The Employee will be responsible for the City employee contribution for
the health, dental and vision coverage for his spouse and children.
B. The City will pay the Employee a lump sum payment equal to 5% of his base salary
(Section 3, Paragraph A) in lieu of providing term life and disability insurance no later
than July 15th of each year.
Section 5
Leave
A. Upon commencing employment, the Employee shall earn:
1. 8 hours of sick leave each month (12 days a year); and
2. 16 hours of vacation leave each month (24 days a year).
These shall be subject to the accrual rates and qualifying periods described in the
Employee Handbook.
B. From calendar year to calendar year, the Employee is entitled carry over up to three
(3) times the annual vacation accrual. There will be no limit on the accrual of sick
leave credits. Upon termination, the Employee shall be compensated for 100% of all
accrued and unused vacation leave and 25% of all accrued and unused sick leave.
C. All other leave accruals and usages will be administered and used in a manner
consistent with the City’s Employee Handbook.
D. If the Employee travels outside of the United States in order to adopt a child, the
Employee is entitled to utilize accrued sick and/or vacation hours for any time off
related to the adoption.
Section 6
Vehicle Allowance
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The City agrees to pay to the Employee, during the term of this Agreement and in addition to
other salary and benefits herein provided, the sum of Five Hundred Six Dollars and Forty Eight Cents
($506.48) per month as a vehicle allowance to be used to purchase, lease, or own, operate and
maintain a vehicle. The monthly allowance shall be increased annually by 3%, each July 1st. The
Employee shall be responsible for paying for liability, property damage, and comprehensive
insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to
the purchase, operation, maintenance, repair, and regular replacement of said vehicle. When
traveling more than fifty miles (one way) from Bozeman on city business the Employee may utilize
the City’s fuel card.
Section 7
Retirement
The City shall adopt a qualified 401(a) defined contribution plan and Section 457 deferred
compensation plan offered through ICMA Retirement Corporation. The City shall contribute eighteen
percent (18%) of the employee’s base annual cash compensation to either or both plans with the
division between the 401(a) and Section 457 to be determined by the Employee. For purposes of
this section, base annual cash compensation shall be calculated in the same manner as all other
non-represented city employees. The Employee may elect to have a portion of the 18% deposited
into a Health Savings Account. This contribution is in addition to the Montana Public Employee
Retirement System (MPERS) retirement program offered to qualified City employees.
Section 8
General Business Expenses
A. Subject to annual budgetary approval by the Commission:
1. The City agrees to budget for and to pay for professional dues and
subscriptions of the Employee necessary for continuation and full
participation in national, regional, state, and local associations, and
organizations necessary and desirable for the Employee’s continued
professional participation, growth, and advancement, and for the
good of the City.
2. The City agrees to budget for and to pay for travel and subsistence
expenses of Employee for professional and official travel, meetings,
and occasions to adequately continue the professional development
of Employee and to pursue necessary official functions for the City,
including but not limited to the ICMA Annual Conference, the state
league of municipalities, and such other national, regional, state, and
local governmental groups and committees in which Employee serves
as a member.
3. The City also agrees to budget for and to pay for travel and
subsistence expenses of Employee for short courses, institutes, and
seminars that are deemed by the Commission as necessary for the
Employee’s professional development and for the good of the City.
4. The City recognizes that certain expenses of a non-personal but job
related nature are incurred by Employee, and agrees to reimburse or
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to pay said general expenses. The Finance Director is authorized to
disburse such moneys upon receipt of duly executed expense or petty
cash vouchers, receipts, statements or personal affidavits.
5. The City acknowledges the value of having Employee participate and
be directly involved in local civic clubs or organizations. Accordingly,
City shall pay for the reasonable membership fees and/or dues to
enable the Employee to become an active member in local civic clubs
or organizations.
B. While the Employee is free to pursue reasonable off duty, non-job related activities,
Commission approval is necessary prior to the employee’s agreeing to hold office in
any of the above referenced professional, business or civic organizations.
Section 9
Termination
For the purpose of this agreement, termination shall occur when:
A. The majority of the governing body votes to remove the Employee at a duly
authorized public meeting consistent with the provisions of Section 3.02 of the City
Charter;
B. If the City, citizens or legislature acts to amend any provisions of the Code and/or
City Charter, pertaining to the role, powers, duties, authority, responsibilities of the
Employee’s position that substantially changes the form of government, the
Employee shall have the right to declare that such amendments constitute
termination;
C. If the City reduces the base salary, compensation or any other financial benefit of the
Employee, unless it is applied in no greater percentage than the average reduction of
all department heads, such action shall constitute a breach of this agreement and will
be regarded as a termination;
D. If the Employee resigns following an offer to accept resignation by the City pursuant
to Section 3.02 of the City Charter the Employee may declare a termination as of the
date of the offer of resignation;
E. Either Party can declare the other Party to be in breach of the agreement and provide
the Party 30 days to cure the breach. Written notice of a breach of contract shall be
provided in accordance with the provisions of Section 19 and set forth the action or
inaction constituting the breach; or
F. No later than the last day of the review period described in Section 1.A, above, the
City Commission notifies the Employee in writing the Employee’s contract will be
discontinued as of June 30th of that coming year. If termination occurs pursuant to
this procedure the Employee shall continue to work for the City until June 30th of that
coming year. Failure to adequately perform the Employees job duties during this
period may result in termination pursuant to Section 9.A.
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Section 10
Severance
Severance shall be paid to the Employee when employment is terminated as defined in Section 9.
If the Employee is terminated as defined in Section 9, the severance package will be as follows:
A. Severance Pay:
1. If notice of termination occurs pursuant to Section 9.F, severance is
equal to six (6) months pay. If the Employee obtains employment
during the six-month period established in Section 9.F with job
functions similar to those of the Employee under this Agreement or if
the Employee resigns during this period pursuant to Section 11 of the
this Agreement, no severance shall be due to the Employee.
2. If termination occurs under Section 9 (except for termination under
subsection 9.F) severance is equal to Twelve (12) months pay.
This severance shall be paid in a lump sum unless otherwise agreed to by the City and the
Employee.
B. Retirement: The City will make a contribution to the Employee’s deferred
compensation account on the value of this compensation calculated as defined in
Section 7.
C. Leave Payouts: The Employee shall be compensated for all accrued and unused
leave as per City policy.
D. Health Insurance Continuation: The Employee shall be allowed to continue health
insurance as permitted by federal law.
If the Employee is terminated because of a conviction of a felony, then the City is not obligated to
provide severance under this section.
Section 11
Resignation
In the event that the Employee voluntarily resigns his position with the City, the Employee
shall provide a minimum of 45 days notice unless the parties agree otherwise. In the case of
Employee Resignation, the Employee is not entitled to severance pay or to the paid continuation of
health insurance provided for in Section 10, paragraph D.
Section 12
Performance Evaluation
A. City shall annually review the performance of the Employee no later than December 1
of each year subject to a process, form, criteria, and format for the evaluation which
shall be mutually agreed upon by the City and the Employee. The process at a
minimum shall include the opportunity for both parties to: (1) prepare a written
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evaluation, (2) meet and discuss the evaluation, (3) present a written summary of the
evaluation results, and (4) provide the Employee with goals and objectives for the
upcoming year. The final written evaluation including goals and objectives should be
completed and delivered to the Employee within 30 days prior to the evaluation
meeting.
B. Beginning January 1 of each year the City Manager shall work with the Commission
to develop for City Commission approval prior to March 1 of each year a Work Plan
identifying specific Commission goals, implementation strategies, and major city
projects and work assignments. Among other factors established pursuant to
subsection A, above, the City Manager shall be evaluated with regards to this Work
Plan.
Section 13
Hours of Work
It is recognized that the Employee must devote a great deal of time outside the normal office
hours on business for the City, and to that end Employee shall be allowed to establish an appropriate
work schedule.
Section 14
Outside Activities
The employment provided for by this Agreement shall be the Employees sole employment.
Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the
City and the community, the Employee may elect to accept limited teaching, consulting or other
business opportunities with the understanding that such arrangements shall not constitute
interference with nor a conflict of interest with his or her responsibilities under this Agreement.
Section 15
Residency
Employee agrees to maintain residence within the corporate boundaries of the City of
Bozeman. Therefore, the City agrees to pay the Employee a housing supplement in the amount of
One Thousand Dollars ($1,000.00) per month.
Section 16
Indemnification
Pursuant to Section 2-9-305, M.C.A., the City will indemnify, immunize and provide a defense
to Employee if he is civilly sued for action taken within the scope of his employment. Further,
Employer agrees that this clause shall continue beyond Employee’s service to the Employer as long
as litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and
travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding
pending litigation.
Section 17
Bonding
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The City shall bear the full cost of any fidelity or other bonds required of the Employee under
any law or ordinance.
Section 18
Other Terms and Conditions of Employment
A. The City, only upon agreement with Employee, shall fix any such other terms and
conditions of employment, as it may determine from time to time, relating to the
performance of the Employee, provided such terms and conditions are not
inconsistent with or in conflict with the provisions of this Agreement or any law.
B. Except as otherwise provided in this Agreement, the Employee shall be entitled to the
highest level of benefits that are enjoyed by other department heads of the City.
Section 19
Notices
Notice pursuant to this Agreement shall be given by depositing in the custody of the United
States Postal Service, postage prepaid, addressed as follows:
A. The CITY: Office of the Mayor, Bozeman City Commission, P.O. Box 1230,
Bozeman, Montana 59771
B. EMPLOYEE: Chris A. Kukulski, 1445 Cherry Drive, Bozeman, MT 59715.
Alternatively, notice required pursuant to this Agreement may be personally served in the
same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date
of personal service or as the date of deposit of such written notice in the course of transmission in
the United States Postal Service.
Section 20
General Provisions
A. Integration. This Agreement sets forth and establishes the entire understanding
between the City and the Employee relating to the employment of the Employee by
the City. Any prior discussions or representations by or between the parties are
merged into and rendered null and void by this Agreement. Subject to Section 1.B,
the parties by mutual written agreement may amend any provision of this Agreement.
Such amendments shall be incorporated and made a part of this Agreement.
B. Binding Effect. This Agreement shall be binding on the City and the Employee as well
as their heirs, assigns, executors, personal representatives and successors in
interest.
C. Effective Date. This Agreement shall become effective commencing upon signatures
of the parties.
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D. Severability. The invalidity or partial invalidity of any portion of this Agreement will
not affect the validity of any other provision. In the event that any provision of this
Agreement is held to be invalid, the remaining provisions shall be deemed to be in
full force and effect as if they have been executed by both parties subsequent to the
expungement or judicial modification of the invalid provision.
E. Public Document. This Agreement is a public document and shall be available for
inspection by the public.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed, in
duplicate, the ___ day of June, 2010.
THE CITY OF BOZEMAN
By ___________________________ Date: _______
Its Mayor
ATTEST:
_________________________________
Clerk of the Commission
EMPLOYEE
_____________________________ Date: _______
Chris A. Kukulski
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