HomeMy WebLinkAboutAddendum to City Manager Employment Agreement to Increase Annual Base Salary Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney
SUBJECT: Addendum to City Manager Employment Agreement to Increase Annual Base
Salary MEETING DATE: December 5, 2013
AGENDA ITEM TYPE: Action
SUGGESTED MOTION: I hereby move to authorize the Mayor to sign an addendum to the City
Manager’s Employment Agreement setting the City Manager’s annual base salary at $__________ dollars and making the effective date of any merit increase to January 1st. BACKGROUND: As requested by Mayor Becker, this action item provides the Commission the
opportunity to authorize an adjustment to the City Manager’s annual base salary and to alter the date of
any merit increase from July 1st to January 1st. The City Manager’s current base salary is established by
Section 3 of the June 21, 2010 Employment Agreement. The base salary is currently set in the 2010 agreement at $113,088.12 per year. Per Section B of the Employment Agreement the City Manager’s annual salary is increased by the U.S. Consumer Price Index (All Urban Consumers for All Items) on
July 1st of each year. As such, the City Manager’s current annual salary (beginning July 1, 2013) is
$121,671.40.
If the Commission were to adjust the City Manager’s base salary they will need to include the specific
annual salary in the above motion. I will then add this amount to the addendum for execution by the
Mayor and the City Manager. Any adjustment to the annual base salary will be effective January 1,
2014.
The addendum also amends Section 3.C to indicate any merit increase take effect on January 1st
following the City Manager’s annual performance evaluation. In 2010, the Commission amended the
City Manager’s employment agreement to require a performance evaluation be conducted no later than
December 1st of each year. Amending the effective date of a merit increase will more closely connect the
performance evaluation with a merit increase.
UNRESOLVED ISSUES: None identified.
ALTERNATIVES: None suggested or proposed.
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FISCAL EFFECTS: The Mayor has not requested other amendments to the employment agreement.
As such, all other provisions related to compensation will remain unchanged. The fiscal effect for the
City for fiscal year 2014 will be, if an increase is adopted, six months of such increase.
Attachments:
December 9, 2013 Addendum to 2010 Employment Agreement
City Manager Employment Agreement (dated June 21, 2010)
Report compiled on: December 5, 2013
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Addendum to June 21, 2010 Employment Agreement between the City of Bozeman and Chris A. Kukulski Page 1 of 2
First Addendum to the June 21, 2010 Employment Agreement
Between the City of Bozeman and Chris A. Kukulski
THIS IS AN AGREEMENT made as of the 9thth 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 21, 2010, which
is included herein as Attachment A; and
WHEREAS, the parties, having duly considered their rights under law, wish to amend the
June 21, 2010 Agreement regarding the City Manager’s annual base salary.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
conditions contained herein, the parties agree as follows:
1. Section 3.A of the Employment Agreement shall be amended as follows:
A. Base Salary: City agrees to pay Employee an annual base salary of -
____________________________________ ($_____________) payable
in installments at the same time that the other management employees of
the City are paid.
2. Section 3.C of the Employment Agreement shall be amended as follows:
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 following the performance evaluation per Section 12
and will be effective January 1st July 1st.
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Addendum to June 21, 2010 Employment Agreement between the City of Bozeman and Chris A. Kukulski Page 2 of 2
3. The salary adjustment in Section 1, above, will be effective January 1, 2014.
4. All other provisions of the June 21, 2010 Employment Agreement not amended
by this Addendum shall remain in effect.
****END OF AGREEMENT EXCEPT FOR SIGNATURES****
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year
first above written.
CITY OF BOZEMAN EMPLOYEE:
________________________________ ____________________________
SEAN A. BECKER CHRIS A. KUKULSKI
Mayor
Attest:
____________________________
STACY ULMEN, CMC
City Clerk
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The City \ : \ B d
And
Chris ! . \\ }(« \ }l « (,.., :.
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EMPLOYMENT AGREEMENT
TABLE OF CONTENTS
Page
PA,
Introduction -----------------------------------'1
Section Term .................. — ......................... ...... —................ --------------1
Section Duties and Authority .... .... — ...............................................................1
Section 3 Compensation .................... ................. .................... ......... ............................1-2
Section Health, Disability and Life Insurance Benefits --.....................................2
Section Leave ........... — .......................... ........... ........... ............. ____________2
Section Vehicle Allowance ....... .............................................. .......................................2-3
Section Retirement ............. .......................................................... _____________3
Section General Business Expenses ............ —.... ...............................O-4
Section Termination .................. ....................................................................4
Section 10 Severance ...... ....... .............. ......................................................................4-5
Section11 RenigQG1k}0 .............................................. ......... ............. .................5
Section 12 Performance Evaluation .............. —....................... — ........................5
Section 13 Hours OfWork ....................... ................. ..............................5
Section 14 Outside Activities .............. .................. —....... .............................5
Section15 Residency ............ —.......... ....... -- .... ............. ............. .....................5-O
Section 16 DdeDl0hiC@§Dn ----------------------------------O
Section17 Bonding .................. — ................................ .............. ... _ .............6
Section 18 Other Terms and Conditions Of Employment ... .............. .....................................6
Section19 Notices ......................... .................... — ...............................O-7
Section 20 General Provisions ... ........... —...................... ... ......... ____________.7
PA,
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Employment Agreement
Introduction
This Agreement, made and entered into this 21 st 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 anytime otherthan 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
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installments at the same time that the other management employees of the City are
paid.
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 1S of each year,
C. Merit Wage Adiustme : 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 1".
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 15 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.
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Section 6
Vehicle Allowance
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 EightCents ($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 1 St.
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 utilizetheCity'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 ofthissection, 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:
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
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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
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.
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 CityCharter;
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 otherfinancial 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 1A above, the
City Commission notifies the Employee in writing the Employee's contract will be
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discontinued as of June 30 of that coming year. If termination occurs pursuant to
this procedure the Employee shall continue to work for the City until June 30 of that
coming year. Failure to adequately perform the Employees job duties during this
period may result in termination pursuant to Section 9.A.
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:
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 9.17) 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 theEmployee.
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 toprovideseveranceunderthissection.
Section 11
Resignation
In the event that the Employee voluntarily resigns his position with the City, the Employeeshallprovideaminimumof45daysnoticeunlessthepartiesagreeotherwise. 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.
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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
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 I 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.
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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
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.
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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.
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, induplicate, the 2L!--day of June, 2010.
THE CITY OF BOZEMAN
di Date: 6 a
Chris A. Kukulski
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