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K-2. Approval City Managers Employment Agreement0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 952 2271100 Fax 952 2271110 Building Inspections Phone 952 2271180 Fax 952 2271190 Engineering Phone 952 2271160 Fax 952 2271170 Finance Phone 952 2271140 Fax 952 2271110 Park & Recreation Phone 952 2271120 Fax 952 2271110 Recreation Center 2310 Coulter Boulevard Phone 952 2271400 Fax 952 2271404 Planning & Natural Resources Phone 952 2271130 Fax 952 2271110 Public Works 7901 Park Place Phone 952 2271300 Fax 952 2271310 Senior Center Phone 952 2271125 Fax 952 2271110 Website www ci chanhassen mn us 4�-2,- 1 MEMORANDUM TO: City Council FROM: Mayor Tom Furlong DATE: December 8, 2014 Ciu SUBJ: Consider Approval of City Manager's Employment Agreement PROPOSED MOTION: "The City Council approves the Employment Agreement between the City of Chanhassen and City Manager Todd Gerhardt " Approval requires a simple majority vote of the council Attached for the council's consideration is an employment agreement between the City of Chanhassen and City Manager Todd Gerhardt. This agreement is the conclusion of our 2014 annual performance review of the city manager. The city attorney's office has drafted this agreement for council consideration ATTACHMENT 1 City Manager's Employment Agreement g \admen \tg \employment contract memo 12 -8 -14 doex Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow EMPLOYMENT AGREEMENT AGREEMENT made this 8h day of December, 2014 by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ( "Employer" or "CITY "), and TODD GERHARDT ( "Employee ") The parties agree as follows- 1. POSITION. Employer employs Employee as its City Manager Employee agrees to serve as City Manager in accordance with state statutes and City ordinances and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign 2. PENSION PLAN. Employer shall contribute to PERA as required by State law for Employee or an alternate pension plan, if selected by Employee, authorized by State law 3. SALARY. Employer currently pays Employee a salary of $ 142,688 per year. Commencing January 1, 2015 Employee's salary shall be $148,388 per year. Employer may increase this salary from time to time without an amendment to this Agreement review. 4 PERFORMANCE REVIEW. Employee shall be given an annual performance 5 SENIORITY. For purposes of employment benefits such as sick leave, vacation leave, and the like, Employee will be credited with having completed twenty eight years of employment with the City upon execution of this Agreement 6. SICK LEAVE AND VACATION LEAVE. Employee shall accrue sick leave and vacation leave in accordance with the Employer's personnel policy. Upon termination of employment with Employer, Employee shall be paid his accumulated unused sick leave and vacation leave in accordance with the Employer's personnel policy. 179274v1 I 7. HOLIDAYS. Employer shall provide Employee the same holidays as enjoyed by other employees 8. GENERAL INSURANCE. Employer shall provide Employee the same group hospital, medical, dental, life and disability insurance benefits as provided to all other employees 9. DUES AND SUBSCRIPTIONS. Employer shall budget and pay the professional dues and subscriptions for Employee which are necessary for Employee's continued participation in national, regional, state and local associations necessary and desirable for Employee's continued professional participation, growth and advancement. 10. PROFESSIONAL DEVELOPMENT. Employer shall budget and pay the travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other committees thereof which Employee serves as a member Employee shall use good judgment in his outside activities so he will not neglect his primary duties to the Employer. 11. CIVIC CLUB MEMBERSHIP. Employer recognizes the desirability of representation in and before local civic and other organizations Employee is authorized to become a member of such civic clubs or organizations as deemed appropriate by him and at Employer's expense. 12. AUTOMOBILE. Employee shall be paid a monthly allowance of $0 for use of his personal automobile for Employer business Employer may increase this allowance from time to time without an amendment to this Agreement 13. GENERAL EXPENSES. Employer shall reimburse Employee miscellaneous fob related expenses which it is anticipated Employee will incur from time to time when provided appropriate documentation. 179274v1 2 14. HOURS OF WORK. It is understood that the position of City Manager requires attendance at evening meetings and occasionally at weekend meetings. It is understood by Employee that additional compensation and compensatory time shall not be allowed for such additional expenditures of time It is further understood that Employee may absent himself from the office to a reasonable extent in consideration of extraordinary time expenditures for evening and weekend meetings at other than normal working hours 15. PERSONNEL POLICY. Except as modified by this Agreement, the Employer's Personnel Policy, as may be amended from time to time by the Employer, shall apply to Employee 16. TERMINATION BENEFITS. In the event that Employee is terminated by the Employer during such time that Employee is willing and able to perform the duties of City Manager, then in that event, Employer agrees to pay Employee at the time of receipt of his last pay check, in addition to his payment for accumulated sick and vacation leave as provided in paragraph six of this Agreement, a lump sum cash payment equal to six months aggregate salary and to continue to provide and pay for the benefits set forth in paragraph eight of this Agreement for a period of six months following termination However, in the event Employee is terminated because of his conviction of a gross misdemeanor or felony, then Employer shall have no obligation to pay the termination benefits under this paragraph If Employer at any time during the employment term reduces financial benefits of Employee in a greater percentage than across - the -board reduction for all employees, or if Employer refuses, following written notice, to comply with any other provisions of this Agreement benefiting Employee or Employee resigns following a formal suggestion by Employer that he resign, then Employee may, at his option, be deemed to be "terminated" on the effective date of Employee's 179274v1 3 resignation and the Employee shall also be entitled to receive the termination benefits set forth above. If Employee voluntarily resigns his position with Employer, Employee agrees to give the Employer thirty (30) days advance notice If Employee voluntarily resigns his position with Employer, there shall be no termination pay due to Employee under this paragraph 17. GENERAL CONDITIONS OF EMPLOYMENT. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employer to terminate the services of Employee, subject only to the provisions of this Agreement and statutory requirements Furthermore, nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with Employer, subject only to the provisions of this Agreement Employee's employment with Employer is at -will 18. INDEMNIFICATION. Employer shall defend and indemnify Employee pursuant to Minn. Stat. §466 07 and §465 76 In addition, Employer shall defend, hold harmless, and indemnify Employee from all torts, civil damages, penalties, and fines, violation of statutes, laws, rules, and ordinances, provided the Employee was acting in the performance of the duties of the position The Chanhassen City Council has authorized the Mayor to execute this Agreement on behalf of the City The Mayor and Employee have executed this Agreement in duplicate. CITY OF CHANHASSEN C Tom Furlong, Mayor 179z74vi 4 TODD GERHARDT