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HomeMy WebLinkAboutA6. City Mgr Contract Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Carson Taylor, Mayor Chris Mehl, Commissioner SUBJECT: City Manager Employment Agreement MEETING DATE: Monday, February 1, 2016 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve the City Manager Employment Agreement. BACKGROUND: The action item before you is the approval of an Employment Agreement (Agreement) between the City and city manager. The current Agreement is dated June 21, 2010. A sub-committee of the City Commission made up of Mayor Taylor and Commissioner Mehl met with City Manager Kukulski to arrive at the proposed Agreement. The majority of the provisions in the Agreement are unchanged from the current 2010 Agreement (see attached red-line strikeout version). An edited and clean version is also attached to show the final document. Substantive changes include: • Compensation (Section 3): 1. The base salary is being changed from $124,488 to $134,500 effective December 31, 2015 and will increase by an additional $10,000 on December 31, 2016. The increases reflect changes in market pay for city managers (see attached 2015 pay analysis). 2. COLA – the effective date of the December U.S. Consumer Price Index is shifting from July 1 of each year to January 1. • Termination (Section 9): 1. Section 9.F has been removed – this subsection provided that during December of each even year the City Commission may notify the city manager the contract will not be renewed as of the commencement of the following fiscal year. • Severance (Section 10): 1. Section 10.A.1 has been edited consistent with the change in Section 9, removing the provision regarding a six month severance if notice of termination of the contract is provided to the city manager during the time period in Section 9.F. 2. Section 10.B.1, 2, 3, 4, 5, and 6 have been created to add conduct language adding exceptions to paying a twelve month severance. Under the current agreement only the conviction of a felony voids the severance paid to the city manager. Now the exceptions are as follows: 164 B. If the Employee is terminated because of any of the following the Employee is not entitled to any severance under this section except required leave payouts: 1. Conviction of or plea of no contest to a felony; 2. Adjudication by a forum of competent jurisdiction that the Employee has violated the City’s Code of Ethics; 3. Repeated and protracted unexcused absences from the Employee’s office and duties; 4. Knowingly falsifying records or documents or knowingly making false statements related to the City’s activities or business; 5. Violation of any City policy regarding drugs and alcohol; or 6. Any willful, knowing, grossly negligent, or negligent misapplication or misuse, direct or indirect, by Employee of public or other funds or other property, real, personal, or mixed owned by or entrusted to the City, any agency or corporation therefore, or the Employee in the Employee’s official capacity. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested or proposed. FISCAL EFFECTS: Entering into this Employment Agreement will increase the City’s financial obligations to the city manager by $10,953.50 for calendar year 2016 and an additional $10,000 for 2017. Attachments: City Manager Employment Agreement with track changes (dated February 1, 2016) City Manager Employment Agreement without track changes (dated February 1, 2016) 2015 Pay Analysis Report compiled on: January 26, 2016 165 1 EMPLOYMENT AGREEMENT Between The City of Bozeman And Chris A. Kukulski June 21, 2010February 1, 2016 2 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 .................................................................................................................. 2-3 Section 6 Vehicle Allowance ............................................................................................... 2-3 Section 7 Retirement .............................................................................................................. 3 Section 8 General Business Expenses ............................................................................... 3-4 Section 9 Termination ......................................................................................................... 4-5 Section 10 Severance ....................................................................................................... 4-5-6 Section 11 Resignation ......................................................................................................... 65 Section 12 Performance Evaluation ....................................................................................... 56 Section 13 Hours of Work ..................................................................................................... 57 Section 14 Outside Activities .................................................................................................. 57 Section 15 Residency .......................................................................................................... 75-6 Section 16 Indemnification .................................................................................................... 76 Section 17 Bonding ................................................................................................................ 76 Section 18 Other Terms and Conditions of Employment ................................................... 7-86 Section 19 Notices ............................................................................................................... 86-7 Section 20 General Provisions ............................................................................................... 87 1 Employment Agreement Introduction This Agreement, made and entered into this 21st day of June 2010February, 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 until terminated by the City of Employee, subject to as provided in 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 2 A. Base Salary: City agrees to pay Employee an annual base salary of One Hundred Thirty Twenty Four Thousand Fiveour Hundred Eighty Eight Dollars ($134,50024,488) payable in installments at the same time that the other management employees of the City are paid effective December 31, 2015. Effective December 31,2016 the base salary will increase by an additional Ten Thousand Dolalrs ($10,000). B. COLA: Commencing on January 1, 2016, the 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 Commission 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, if provided, will be effective December 31stJuly 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. 12 days8 hours of sick leave each yearmonth (12 days a year); and 2. 24 days16 hours of vacation leave each yearmonth (24 days a year). These shall be subject to the accrual rates and qualifying periods and all policies other than accrual rates as described in the most current version of the City’s 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. 3 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 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 Seventy Dollars and Two Cents ($570.02) 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 Januaryuly 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, 4 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 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 adopts a final resolutionvotes 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 Commission requests the Employee to resign pursuant to Section 3.02 of the City Charter and the Employee resigns in writing the Employee shall be considered to have been terminated as of the date of the Employee’s written resignation; CB. If the City, citizens or legislature acts to amend any provisions of the Bozeman Municipal 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; DC. 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; 5 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. 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. If the Employee is terminated as defined in Section 9, the severance package will be as follows Severance Pay: 1. Severance Pay: If notice of termination occurs pursuant to Section 9.F, Sseverance is equal to twelvesix (126) months’ pay. This severance shall be paid in a lump sum unless otherwise agreed to by the City and the Employee. 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. B2. . Retirement: The City will make a contribution to the Employee’s deferred compensation account on the Employee’s salary as of the date of termination value of this compensation calculated as defined in Section 7. 3C. Leave Payouts: The Employee shall be compensated for all accrued and unused leave as per City policy. 6 4D. Health Insurance Continuation: The Employee shall be allowed to pay for continued health insurance as permitted by federal law. B. If the Employee is terminated because of any of the following a conviction of a felony, then the Employee is not entitled to any City is not obligated to provide severance under this section except required leave payouts.: 1. Conviction of or plea of no contest to a felony; 2. Adjudication by a forum of competent jurisdiction that the Employee has violated the City’s Code of Ethics; 3. Repeated and protracted unexcused absences from the Employee’s office and duties; 4. Knowingly falsifying records or documents or knowingly making false statements related to the City’s activities or business; 5. Violation of any City policy regarding drugs and alcohol; or 1.6. Any willful, knowing, grossly negligent, or negligent misapplication or misuse, direct or indirect, by Employee of public or other funds or other property, real, personal, or mixed owned by or entrusted to the City, any agency or corporation therefore, or the Employee in the Employee’s official capacity. 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 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 7 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 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 8 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. 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. 9 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 1 EMPLOYMENT AGREEMENT Between The City of Bozeman And Chris A. Kukulski February 1, 2016 177 2 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 ............................................................................................................. 2-3 Section 6 Vehicle Allowance ............................................................................................... 3 Section 7 Retirement .......................................................................................................... 3 Section 8 General Business Expenses ............................................................................3-4 Section 9 Termination ..................................................................................................... 4-5 Section 10 Severance .......................................................................................................5-6 Section 11 Resignation ........................................................................................................ 6 Section 12 Performance Evaluation ...................................................................................... 6 Section 13 Hours of Work .................................................................................................... 7 Section 14 Outside Activities ................................................................................................ 7 Section 15 Residency ........................................................................................................... 7 Section 16 Indemnification ................................................................................................... 7 Section 17 Bonding .............................................................................................................. 7 Section 18 Other Terms and Conditions of Employment ................................................... 7-8 Section 19 Notices ................................................................................................................. 8 Section 20 General Provisions .............................................................................................. 8 178 1 Employment Agreement Introduction This Agreement, made and entered into this 1st day of February, 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 until terminated by the City of Employee, as provided in 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 179 2 A. Base Salary: City agrees to pay Employee an annual base salary of One Hundred Thirty Four Thousand Five Hundred Dollars ($134,500) payable in installments at the same time that the other management employees of the City are paid effective December 31, 2015. Effective December 31, 2016 the base salary will increase by an additional Ten Thousand Dollars ($10,000). B. COLA: Commencing on January 1, 2016, the 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. C. Merit Wage Adjustment: In addition, the City Commission may determine 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, if provided, will be effective December 31st. 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. 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. 12 days of sick leave each year; and 2. 24 days of vacation leave each year. These shall be subject to the qualifying periods and all policies other than accrual rates as described in the most current version of the City’s 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. C. All other leave accruals and usages will be administered and used in a manner consistent with the City’s Employee Handbook. 180 3 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 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 Seventy Dollars and Two Cents ($570.02) 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 January 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 181 4 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 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 adopts a final resolution 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 Commission requests the Employee to resign pursuant to Section 3.02 of the City Charter and the Employee resigns in writing the Employee shall be considered to have been terminated as of the date of the Employee’s written resignation; C. If the City, citizens or legislature acts to amend any provisions of the Bozeman Municipal Code and/or City Charter pertaining to the role, powers, duties, authority, responsibilities of the Employee’s that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination; D. 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 182 5 reduction of all department heads, such action shall constitute a breach of this agreement and will be regarded as a termination; 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 Section 10 Severance : A. If the Employee is terminated as defined in Section 9, the severance package will be as follows: 1. Severance Pay: 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. 2. Retirement: The City will make a contribution to the Employee’s deferred compensation account on the Employee’s salary as of the date of termination compensation calculated as defined in Section 7. 3. Leave Payouts: The Employee shall be compensated for all accrued and unused leave as per City policy. 4. Health Insurance Continuation: The Employee shall be allowed to pay for continued health insurance as permitted by federal law. B. If the Employee is terminated because of any of the following the Employee is not entitled to any severance under this section except required leave payouts: 1. Conviction of or plea of no contest to a felony; 2. Adjudication by a forum of competent jurisdiction that the Employee has violated the City’s Code of Ethics; 3. Repeated and protracted unexcused absences from the Employee’s office and duties; 4. Knowingly falsifying records or documents or knowingly making false statements related to the City’s activities or business; 5. Violation of any City policy regarding drugs and alcohol; or 183 6 6. Any willful, knowing, grossly negligent, or negligent misapplication or misuse, direct or indirect, by Employee of public or other funds or other property, real, personal, or mixed owned by or entrusted to the City, any agency or corporation therefore, or the Employee in the Employee’s official capacity. 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 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. 184 7 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 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. 185 8 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. 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 February, 2016. THE CITY OF BOZEMAN By ___________________________ Date: _______ Mayor Carson Taylor ATTEST: 186 9 _________________________________ Clerk of the Commission EMPLOYEE _____________________________ Date: _______ Chris A. Kukulski 187 City of Bozeman FY 2015 Non-Rep Salary Survey Page 1 of 2 PSPC CITY OF BOZEMAN OCT 2015 $% City Manager Bozeman, MT - pop. 37,280 Montana State Univ.$124,488 $144,814 -$20,326 -16.33% City Manager Bend, OR - pop. 76,639 $171,300 City Administrator Billings, MT - pop. 104,170 $131,810 City Manager Casper, WY - pop 55,316 $170,000 City Manager Corvallis, OR - pop. 54,462 - Oregon State Univ.$150,000 City Manager Flagstaff, AZ - pop. 65,870 Northern Arizona Univ.$180,004 City Administrator Grand Forks, ND - 52,838 Univ. of North Dakota $144,250 City Manager Great Falls, MT - pop. 58,505 $121,630 City Manager Helena, MT - pop. 28,190 $124,825 City Manager Laramie, WY - pop. 30,816 Univ. of Wyoming $144,500 City Manager Lewiston, ID - pop. 41,789 $120,000 City Manager Longmont, CO - pop. 86,270 $175,000 City Manager Medford, OR - pop. 74,907 $145,008 City Supervisor Moscow, ID - pop. 23,800 Univ. of Idaho $132,800 Chief Administrative Officer Ogden City, UT - pop. 83,793 Weber State Univ.$144,250 City Supervisor Pullman, WA - pop. 29,799 Washigton State Univ.$132,859 City Manager Springfield, OR - pop. 59,403 $147,110 City Manager Twin Falls, ID - pop. 44,125 $126,500 Average:$144,814 City Manager Boulder, CO - pop 97,385 Univ. of Colorado $216,976 <---removed, outlier City Manager Cedar City, UT - pop. 28,857 Southern Utah Univ.$105,000 <---removed, outlier City Manager Cheney, WA - pop. 10,590 Eastern Washington Univ.$108,768 <---removed, outlier City Manager Davis, CA - 65,622 - Univ. California Davis $216,200 <---removed, outlier City Manager Greeley, CO - pop. 92,889 Northern Colorado Univ.$190,272 <---removed, outlier Pocatelo, Missoula - No CM PSPC Notes and Comments: Using similar pay scale design as other BZN jobs, broad range of 130k-160k is suggested Specific suggested salary based on 11 years in job nearer to 140k-150k (at least middle of suggested broad range) Market Base FYI, VarianceBozema n BaseCity of Bozeman Job Class Participant OrganizationSurvey Job Class City of Bozeman FY 2015 Non-Rep Salary Survey Page 2 of 2 PSPC CITY OF BOZEMAN OCT 2015 $% Market Base FYI, VarianceBozema n BaseCity of Bozeman Job Class Participant OrganizationSurvey Job Class