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HomeMy WebLinkAboutResolution 2005-006 employment agreement with michael a. reuwsaatMARANA RESOLUTION NO. 2005-06 RELATING TO EMPLOYMENT; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE EMPLOYMENT AGREEMENT WITH MICHAEL A. REUWSAAT. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the Mayor is hereby authorized to execute, and the Town's staff is hereby directed and authorized to undertake all other and further tasks required to carry out the terms and obligations of the employment agreement between the Town of Marana and Michael A. Reuwsaat attached to and incorporated by this reference in this resolution as Exhibit A. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 4th day of January, 2005. ATTEST: ?oe APPRQ _;~D A.,S TO FORMz~ ~~2a~own ~ey {00000451.DOC ~ FJC/cds 12/29/2004 3:50 PM EMPLOYMENT AGREEMENT BETWEEN TOWN OF MARANA AND MICHAEL A. REUWSAAT INTRODUCTION This agreement ("Agreement") is entered into by and between the TOWN OF MARANA, an Arizona municipal corporation (the "Town") and MtCHAEL A. REUWS~T, (the "Employee"). The Town and the Employee are sometimes collectively referred to as the Parties. AGREEMENT IN CONSIDERATION of the mutual promises and covenants contained in this Agreement, the Parties hereby agree as follows: 1. SCOPE. A. This Agreement is intended to set forth the basic terms and conditions under which Employee shall perform the duties of Town Manager for and on behalf of the Town, including the compensation, reimbursement, and fringe benefit provisions relating to that position. 2. TERM. A. This Agreement shall be effective upon its approval by the Town Council and shall continue in full force and effect unless and until it is terminated by either party; provided, however, that the provisions of paragraph 11 below relating to the payment of severance shall automatically terminate on June 5, 2007, unless extended by the then-sitting Town Council. B. If Employee voluntarily resigns as Town Manager, Employee shall give the Town Council sixty days' advance notice unless the parties agree otherwise. 3. SAI,ARY. Town shall pay Employee an annual Base Salary of $112,500.00 payable bi-weekly at the same time that the other Town employees are paid, adjusted as follows: {00000443.DOC / 2} -1- FJC/cds 01/03/2005 2:38 PM A. Retroactive adjustments. Because Employee did not receive adjustments that normally would have been made in 2004, the following retroactive adjustments .shall be made (and the amounts for past work shall be paid in a lump-sum payment to Employee), raising Employee' s current adjusted salary to $120,487.50: i. General wage increase. Effective July 1, 2004, Employee's base salary shall be increased by two percent, consistent with the general wage increase given to all employees of the Town. ii. Merit adjustment. Effective August 1, 2004, Employee's base salary (as adjusted pursuant to paragraph (i) above) shall be increased by five percent, based on merit as determined by the Town Council's current evaluation of Employee's performance. B. Future wage adjustments. Employee's base salary (as adjusted pursuant to paragraph A above) shall be automatically adjusted to reflect any general salary adjustments applicable to all Town employees that are provided or required by the Town's compensation policies, such as the annual market study adjustment. C. Merit adjustment. Consideration for merit increases in Employee's Base Salary shall be given pursuant to a personnel executive session scheduled in a Town Council meeting each July (see, paragraph 9 below). Any merit increase shall be effective on August 1 following the Town Council's performance evaluation unless the Town Council directs otherwise. 4. VACATION, SICK, AND ADMINISTRATIVE LEAVE A. Employee will accrue Vacation Leave at the rate of 1.5 days per month or at the appropriate rate for Town employees of similar service with the Town, whichever is greater. B. Employee will accrue Sick Leave at the rate of eight hours per month. C. If Employee's employment is voluntarily or involuntarily terminated, Employee shall be compensated for all accrued unused Vacation Leave and Sick Leave. 5. HEALTH AND LIFE INSURANCE BENEFITS Town shall provide Employee and his dependents with the same group health, medical, dental and disability, and other benefits as are available to all other Town employees and staff 6. VEHICLE ALLOWANCE Town shall provide a vehicle allowance of $500.00 per month to the Employee, payable in bi-weekly installments. All travel outside Pima County shall be reimbursed at the mileage rate established by Internal Revenue Service. {00000443.DOC / 2} - 2 - FJC/cds 01/03/2005 2:38 PM 7. RETIREMENT The Town shall provide Employee with the same Town retirement benefits as other Town employees, except that the Town shall pay Employee the amount of Employee's 401 Plan contribution (currently 4%) as additional income over the amount paid pursuant to paragraph 3 above, which Employee may allocate to the Town's Section 457 Deferred Compensation Plan. This additional benefit shall be payable effective the first normal paycheck a~er the effective date of this Agreement. 8. GENERAL BUSINESS EXPENSES A. Town agrees to budget and pay for Employee dues and subscriptions necessary for full participation in national, regional, state and local associations, and organizations (including, but not limited to, local civic clubs) necessary and desirable for the Employee's continued professional participation, growth and advancement, and for the good of the Town. B. Town shall provide the same tuition reimbursement to Employee as that available generally to Town employees. C. Town agrees to consider, during the annual budgeting process, requests for payment of travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for the Employee's professional development and for the good of the Town. D. Town agrees to consider, during the annual budgeting process, requests for reimbursement of Employee's non-personal but job-related expenses. 9. PERFORMANCE EVALUATION The Town Council shall evaluate the performance of Employee subject to a process, form, criteria, and format as mutually agreed upon. The process at minimum shall include the opportunity for both parties to (1) prepare a written evaluation, (2) meet and discuss the evaluation, and (3) present a written summary of the evaluation results. The final written evaluation should be completed and delivered to the · Employee within 30 days of the evaluation meeting. Unless otherwise agreed, the performance evaluation shall occur at a personnel executive session during a Town Council meeting in July of each year. 10. INDEMNIFICATION Town shall defend, save harmless, and indemnify the Employee against any tort, professional liability claim or demand, or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of the Employee's duties as the Town Manager, and will pay the amount of any settlement or judgment arising from it. {00000443.DOC / 2} -3- F, lC/cds 01/03/2005 2:38 PM 11. REMOVAL AND SEVERANCE PAY If the Employee is terminated by the Town for any reason other than malfeasance, the Town shall pay the Employee a lump sum payment equal to six months salary and benefits (see, paragraphs 3, 4, 5 and 7 above). 12. OTItER TERMS AND CONDITIONS OF EMPLOYMENT A. Town, in consultation with Employee, shall fix any such other terms and conditions of employment as it may determine from time to time, relating to the performance of the Town Manager, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement. B. Town agrees that the Employee will receive all other benefits not specified in this Agreement afforded to all other Town of Marana employees. C. Town shall bear the full cost of any fidelity or other bonds required of the Employee under law or ordinance. D. Town shall provide for an Annual Physical Examination at a physician of Employee's choice. E. It is recognized that the Employee must devote a great deal of time outside normal office hours to the business of the Town. Employee will be allowed to adjust his office hours as he shall deem appropriate so long as he is available and the management of the Town is not harmed. F. Employee agrees to maintain residence within the corporate limits of the Town of Marana, Arizona. G. Employee agrees to remain in exclusive employ of the Town of Marana. However, this shall not be construed to preclude Employee fi-om occasional teaching, writing, speaking or consulting performed on Employee's time off, even if outside compensation is provided for such services. These activities are expressly allowed provided that they do not adversely affect Employee's performance and do not present a conflict of interest with the Town of Marana. 13. GENERAL PROVISIONS A. This Agreement constitutes the entire Agreement between the Parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs and executors of the Employee. C. This Agreement shall become effective upon adoption and approval by the Town Council of the Town of Marana, Arizona. {00000443.DOC / 2} - 4 - FJC/cds 01/03/2005 2:38 PM D. If any provisions, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement; or portion thereof, shall not be affected and shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. TOWN OF MARANA, an Arizona municipal corporation ]VIICHAEL A. REUWSAAT By Bobby Sutton, Jr., Mayor Date: Date: ATTEST: Jocelyn Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney {00000443.DOC / 2} - 5 - FJC/cds 01/03/2005 2:38 PM