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:
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Adopted by the City Council January 20, 2004.
Resolution No. 04-019
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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.
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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.
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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)