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
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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