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Res 2015- 14 Approving Employment Agreement Mark McNeillCity of Mendota Heights Dakota County, Minnesota RESOLUTION NO. 2015-14 A RESOLUTION APPROVING AN EMPLOYMENT AGREEMENT WHEREAS, the City Council of the City of Mendota Heights, Dakota County, Minnesota, at their January 29, 2015 City Council Special Meeting selected Mark McNeill to be the City Administrator effective February 23, 2015, and WHEREAS, it is desired to specify the terms of his employment with an Employment Agreement. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Mendota Heights, Minnesota that the Employment Agreement for hiring Mark McNeill as the City Administrator be approved. Adopted by the City Council of the City of Mendota Heights this 17a' day of February, 2015. CITY COUNCTT, CITY OF MENDOTA HEIGHTS Sandra Krebsba • , ayor ATTEST: Lorri Smith, City Clerk CITY OF MENDOTA HEIGHTS CITY ADMINISTRATOR EMPLOYMENT AGREEMENT THIS AGREEMENT is made and entered into this 17t1i day of February, 2015 between the CITY OF MENDOTA HEIGHTS, MINNESOTA, a municipal corporation, hereinafter referred to as the CITY, and Mark McNeill, hereinafter referred to as EMPLOYEE, to wit: WHEREAS, the CITY desires to employ the services of Mark McNeill as City Administrator of the city as provided by the laws of the State of Minnesota and relevant ordinances of the City of Mendota Heights; and EMPLOYEE desire to accept employment as the City Administrator of the City, and to have a written agreement relative to the compensation, benefits, requirements, and procedures for the employment of the EMPLOYEE as City Administrator of the City of Mendota Heights. 1. DUTIES — CITY hereby agrees to employ Mark McNeill as City Administrator of said City to perform the function and duties specified in the City Administrator's job description, and to perform duties specified under the ordinances of the City of Mendota Heights and the laws of the State of Minnesota and, such other legally permissible and proper duties and functions as the City Council shall from time -to -time assign. 2. COMPENSATION — Effective upon his date of employment, EMPLOYEE shall be compensated at an annual rate of $120,000.00 ("Salary"). Provided that EMPLOYEE is satisfactorily performing his job duties, effective February 23, 2016, Salary paid to EMPLOYEE shall increase to an annual rate of $122,500.00; Effective January 1, 2017, and thereafter, EMPLOYEE shall be entitled to annual raises at a rate equal to what is offered other non-union employees. City may choose to increase EMPLOYEE's salary based on performance, market comparison, or other consideration. 3. PERFORMANCE EVALUATION — The City Council and EMPLOYEE agree that an initial performance review will be conducted on EMPLOYEE after six (6) months and annually thereafter. The criteria for review and evaluation shall be at the sole discretion of the City Council, and may include criteria determined by the Council in consultation with the EMPLOYEE. 4. TERMINATION BY CITY — The CITY may, without notice and for any reason deemed appropriate in the discretion of the City Council, unilaterally terminate the employment of EMPLOYEE by majority vote of the City Council and shall pay to the EMPLOYEE a lump sum cash payment according to the following schedule in addition to any accrued and unused vacation and personal leave time: 1 Termination Date Severance Before 1/1/2016 1/1/2016 to 12/31/2016 1/1/2017 to 12/31/2017 After 12/31/2017 3 months Salary 4 months Salary 5 months Salary 6 months Salary For an amount of time equal to the lump sum cash payment, CITY shall continue to pay CITY share of all benefits afforded in this agreement in effect at the time of termination. In consideration for the payments provided in this Section 4, EMPLOYEE agrees to execute a release of any and all claims against the CITY, at the time of termination, the release to be in such reasonable form as prepared by the CITY. In the event EMPLOYEE is terminated for just cause, EMPLOYEE will not receive any lump sum cash payment or any accrued and unused vacation or personal leave time. In no event will amount paid to EMPLOYEE upon termination by the CITY exceed the amount permitted by applicable law. "Just cause" shall be defined as malfeasance in office, gross misconduct, conviction for a felony, or conviction for an illegal act involving personal gain to employee. 5. TERMINATION BY EMPLOYEE: In the event EMPLOYEE voluntarily terminates employment, he agrees to provide a forty-five (45) day advanced written notice. In those circumstances, EMPLOYEE will be paid for his accrued vacation and personal leave time. In no event will amount paid to EMPLOYEE upon termination by the EMPLOYEE exceed the amount permitted by applicable law. 6. DEFERRED COMPENSATION/RETIREMENT PLAN — CITY shall contribute to Minnesota Public Employee's Retirement Association (PERA) as required by State law for EMPLOYEE or an alternate pension plan, if selected by EMPLOYEE, as authorized by State law. As allowed by Minn. State. 353.028, if so elected by EMPLOYEE, the CITY shall execute all necessary documents to allow EMPLOYEE the option for exclusion from coverage in (PERA), and to participate in the International City Association Retirement Corporation (ICMA-RC). Contributions by the CITY and EMPLOYEE to ICMA-RC shall be equivalent to those that are required for participants in PERA. 7. AUTOMOBILE ALLOWANCE — Ownership of a private automobile and current/valid driver's licensure is required of the employee as a condition of employment under this contract. Employee will be compensated for automobile mileage and usage incurred on behalf of City business at the rate of $200.00 per month pursuant to Minn. Stat. §471.665. Other expenses incurred by employee as are authorized by the city council such as seminars, conferences, meals and lodging incurred in pursuit of city business shall be reimbursed to the employee upon the employee providing the receipts therefore to the City Finance Director. The amount of the automobile allowance may be reviewed annually at the same time as the amount of the EMPLOYEE's annual salary is considered. 8. INSURANCE CONSIDERATION (a) CITY shall maintain in force insurance protection, including comprehensive general liability and public officials' liability, which is applicable to all acts of EMPLOYEE arising from employment as City Administrator of the CITY as long as those acts fall within the scope of EMPLOYEE's duties. (b) EMPLOYEE shall be entitled to participate in any group health and hospitalization, life or any other type of insurance made available to non-union employees of the CITY at the same level of benefit, cost, and CITY premium participation as is provided to other non-union employees. 9. VACATION AND SICK LEAVE (a) EMPLOYEE shall be entitled to paid vacation at the rate of 120 hours per year through the end of February 2020. As of March 1, 2020, EMPLOYEE shall be entitled to paid vacation at the same rate as now extended to non-union employees. Upon commencing employment, EMPLOYEE shall be credited with 80 hours of paid vacation, 24 hours of personal leave, and 24 hours of extended disability leave. (b) EMPLOYEE shall accrue and be entitled to use personal/extended disability leave as now extended to other non-union employees. 10. HOLIDAYS — CITY shall provide EMPLOYEE the same holidays as enjoyed by other non-union employees. 11. MEMBERSHIP DUES — The CITY agrees to budget and to pay the professional dues and subscriptions of EMPLOYEE as the City Council determines to be necessary for his full participation in associations and organizations necessary and desirable for his continues professional growth and development. Specifically covered herein shall be EMPLOYEE's dues to the International City Management Association, the Minnesota City Management Association and the Metropolitan Area Management Association. All other payments for dues and subscriptions must be approved in advance by the City Council. 12. CONFERENCES, TRAINING AND CONTINUING EDUCATION — CITY will annually consider paying for the cost of registration, travel and subsistence for attendance at national, State and local meetings of the International City Management Association, the Minnesota City Management Association, the Metropolitan Area Manager's Association, the League of Minnesota Cities and the Association of Metro Cities. CITY will annually consider paying for the Effective Management Training coursework. Payment for attendance at all other conferences, meetings, seminars, and any out of state travel shall be approved in advance by the City Council. EMPLOYEE shall be eligible for participation in the CITY's Educational Incentive Tuition Refund policy as included in Section 20 of the Personnel Code, Resolution No. 85-107. 13. OUTSIDE EMPLOYMENT/ACTIVITIES (a) EMPLOYEE shall devote his full time and best efforts to the business and affairs of the City, and except as hereinafter expressly stated, EMPLOYEE shall not accept any other employment during the term of this Agreement. (b) EMPLOYEE shall not spend more than 10 hours per week teaching, counseling, or doing other non -City business, without first obtaining the City Council's approval. 14. GENERAL CONDITIONS OF EMPLOYMENT - In addition to the benefits citied herein, the CITY shall provide the EMPLOYEE with any and all benefits that apply to other non-union employees of the city. In the event of a conflict between the provisions of this employment agreement and the CITY's Personnel Code, Resolution No. 85-107, or any other personnel regulations or policy of the CITY, the terms of this Agreement shall prevail. 15. GENERAL PROVISIONS - This Agreement shall be governed by the laws of the State of Minnesota. This document constitutes the entire agreement between the parties hereto. If during the term of this Agreement any specific clause of the Agreement is determined to be illegal by a judicial decision or binding Minnesota Attorney General Opinion, the remainder of this Agreement shall not be affected by such a determination and shall remain in force. The parties will meet to negotiate regarding an amendment to the Agreement to replace the provision declared illegal. Failure of either party to insist, in any one or more instances, upon the performance of any of the terms, covenants, or conditions of this EMPLOYMENT AGREEMENT or to exercise any right hereunder, shall not be construed as a waiver or relinquishment of the future exercise of such right, but the obligation of the other party with respect to such future performance shall continue in full force and effect. This agreement was reviewed and considered by the City Council and approved by Resolution No. 2015-14 by the City Council of the City of Mendota Heights, Minnesota, on February 17, 2015. EMPLOYEE PcaLYIAAJA Mark McNeill Date Lorri Smith, City Clerk Date IT Sani NDOTA HEIGHTS a Krebsbach, ► ' . yor