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HomeMy WebLinkAbout04-019 - ADMIN Resolution - City Council - 2004/01/20RESOLUTION NO. 04-019 RESOLUTION APPOINTING THOMAS K. HARMENING CITY MANAGER AND APPROVING EMPLOYMENT AGREEMENT WHEREAS, on December 22, 2003, the City Council approved by motion the appointment of Thomas K Harmening as City Manager for the City of St. Louis Park, contingent on an approved contract, and WHEREAS, the Council now desires to finalize the appointment of Mr. Harmening as City Manager. NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of St. Louis Park, Minnesota 1. Appoints Thomas K. Harmening to the position of City Manager, with all the authority and responsibility of the position as provide by State Statute, City Charter, City Ordinance, City Resolution, Regulations and Law. 2 Approves and authonzes the execution of the Employment Agreement effective January 5, 2004, a copy of which is attached hereto as Exhibit "A" ed for Administration: was mitl�/II Thomas%7`�'. Interim i y anager Attest. g ndy Reichert, City Clerk Adopted by the City Council January 20, 2004. Resolution No. 04-019 -2- EXHIBIT "A" EMPLOYMENT AGREEMENT THIS AGREEMENT is made and entered into this 20th day of January, 2004, by and between the CITY OF ST. LOUIS PARK, a political subdivision of the State of Minnesota (the "City"), and THOMAS K. HARMENING (the "Manager"). IN CONSIDERATION OF THE TERMS AND CONDITIONS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS: 1. EMPLOYMENT. During the term of this Agreement, the Manager shall serve as City Manager of the City, and shall assume and perform, in a conscientious and diligent manner at all times, all of the duties and responsibilities as are prescribed or permitted by charter, statute or ordinance and incidental to such position as defined herein and as are assigned to him from time to time by the City Council. Manager shall use his best efforts in the performance of his duties, and shall spend substantially his full time in connection therewith. 2. TERM. This Agreement shall be effective as of January 5, 2004, and shall continue indefinitely unless or until earlier terminated as provided in Section 5 below. Manager shall remain in the exclusive employment of the City during the term of this Agreement. For the purposes of this section, "exclusive employment" shall exclude any teaching, writing, consulting, speaking, or military reserve service undertaken by Manager during his non -work hours, which do not interfere or conflict with his ability to perform pursuant to this Agreement 3. COMPENSATION. As base compensation for services rendered, Manager shall receive $114,000 per year, less applicable taxes, payable in equal installments at the same time as the City pays its other City employees After six months, Manager 'shall be given a performance evaluation. If the performance evaluation is satisfactory, the City Council will adjust Manager's salary to not less than $116,600, but not to exceed $121,600, the projected 2004 midpoint of City Manager salary range based upon the ICMA Regional Survey, subject to statutory limitations. After completion of each subsequent year of this Agreement, the City may conduct an annual review of Manager's performance. The base salary and/or benefits for calendar year 2005, and thereafter, shall be set when salanes are established for other non-union employees. 4. BENEFITS. Manager shall receive the following benefits at no cost to him• a Flex Leave. Manager shall accrue and use flex leave in accordance with City policies for other exempt employees. b. Insurance/HohdaysBenefits Manager shall be provided benefits, insurance and holidays in accordance with City policies for other exempt employees. c. Retirement and Deferred Compensation Plan Contributions. Manager is currently a member of PERA and may chose to continue to participate in that plan. The amount of the City's contnbution shall be equal to the same percentage of base salary that the City contributes for all other employees He may also opt out of PERA and participate in an approved deferred compensation plan. The City's contribution to an approved deferred compensation plan shall be in the same amount as the PERA contribution. Resolution No. 04-019 -3- d. Car Allowance. The City will provide a $600.00 car allowance per month for use of Manager's personal car while on City business within the Twin Cities metro area In addition, Manager will be reimbursed for use of his personal car while traveling outside the metro area on City business, per applicable regulations and City policy If Manager names the City as an additional insured on his automobile insurance policy, the City shall reimburse Manager for the cost of the liability portion of his automobile insurance premium e Professional Development. Dues and fees for the following, provided that such items are reasonably necessary to the professional development of Manager, and consistent with City policies: 1) Licenses, journals, publications, 2) Seminars, conferences, and short courses; 3) Membership in professional associations and one other local service organization. f. Payment of Expenses Direct payment or reimbursement for reasonable and necessary meals, travel, lodging, and entertainment expenses, properly documented and actually incurred by Manager in connection with the affairs _of the City and the professional development described in paragraph 4e above. The City agrees to pay directly to the vendor for cell phone, PDA and other similar expenses of the Manager. 5. TERMINATION OF EMPLOYMENT. Manager is an at -will employee of the City. As such, he may be terminated by the City Council in its sole discretion at any time, with or without cause. Upon termination of Manager's employment, and subject to the termination benefit provisions of Section 6 below, all nghts and obligations under this Agreement shall cease at that time, other than those which have accrued prior thereto. 6. TERMINATION BENEFITS. In the event that Manager is involuntanly terminated by the City during such time that Manager is willing and able to perform the duties of Manager, then in that event, City agrees to pay Manager at the time of receipt of his last pay check a lump sum cash payment or periodic payments over six months equal to six months aggregate salary, at Manager's option, and to continue the City contribution on behalf of Manager to the cafeteria benefit plan at the same level as other exempt nonunion employees for six months, (collectively "termination benefits"). However, in the event the Manager is terminated by the City Council for substantiated and proven malfeasance in office, as defined by Minn. Stat. 466.07, and interpretive case law, or intentional misconduct, then the City shall have no obligation to pay the sums specified above Intentional misconduct is defined as substantiated and proven sexual, racial, or other unlawful harassment, distribution of pornography, or acts of physical violence in the work place. "Intentional misconduct" and "malfeasance" do not include poor performance or neglect of duties. If the City at any time during the employment term reduces the salary or other financial benefits of Manager in agreater percentage than across-the-board reduction for all non-union employees, or if the City refuses, following wntten notice, to comply with any other provisions of this Agreement benefiting Manager or Manager resigns following a formal suggestion by the City Council that he resign, then Manager may, at his option, be deemed to be "terminated" on the effective date of Manager's resignation and the Manager shall also be entitled to receive the termination benefits set forth above. 0 • 0 Resolution No. 04-019 -4- If Manager voluntanly resigns his position with the City, Manager agrees to give the City sixty (60) days advance notice If Manager voluntanly resigns his position with the City, there shall be no termination benefits due to Manager. 7. LEGALITY. The parties covenant and agree that the provisions contained herein are reasonable and are not known or believed to be in violation of any federal or state law or regulation. In the event a court of competent junsdiction finds any provision contained herein to be illegal or unenforceable, such court may modify such provision to make it valid and enforceable. Such modification shall not affect the remainder of this Agreement which shall continue at all times to be valid and enforceable. No payment may be made under this Agreement in excess of the maximum amount permitted by applicable law. 8. INDEMNIFICATION. City shall defend and indemnify Manager pursuant to Minn. Stat 466.07 and 465 76 City shall defend, hold harmless, and indemnify Manager from all torts, civil damages, penalties, and fines; violation of statutes, laws, rules, and ordinances, provided the Manager was acting in the performance of the duties of his position. 9. INTERPRETATION. This Agreement constitutes the entire agreement between the parties and supersedes any prior oral or wntten agreements between the parties. This Agreement can only be modified by a writing signed by both parties. This Agreement shall be interpreted in accordance with the laws of the State of Minnesota. If the parties disagree upon the interpretation of this Agreement, and cannot resolve their differences in good faith, then both parties may agree to request mediation from the Minnesota Bureau of Mediation Services. Each party will be responsible for its own attorneys' fees, and the parties will split equally ,any other mediation fees. IN' WITNESS WHEREOF, the parties have caused the execution of this Agreement the day and year stated above. FOR THE CITY OF ST. LOUIS PARK: Mayor Thomas K. Harmening Attest: City Clerk (seal)