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HomeMy WebLinkAboutResolution 2007-162 employment agreement with town manager michael a. reuwsaatMARANA RESOLUTION NO. 2007-162 RELATING TO EMPLOYMENT; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A NEW EMPLOYMENT AGREEMENT WITH TOWN MANAGER 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 18th day of September, 2007. Mayor Ed Honea ATTEST: Town Clerk celyn Bronson, Town Clerk 0 ED S TO FORM: APPRO ED F ssid-Y, Town orn( {00006137.DOC 0 FJC 9/11/2007 3:01 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 MICHAEL A. REUWSAAT, (the "Employee"). The Town and the Employee are sometimes collectively referred to as the Parties, either of which is sometimes individually referred to as a Party. AGREEMENT IN CONSIDERATION of the mutual promises and covenants contained in this Agreement, the Parties hereby agree as follows: I. SCOPE. 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 I I below relating to the payment of severance shall automatically terminate on the date of the first meeting of the Town Council after Council Members who are elected in the spring 2009 elections take office (approximately June 1, 2009), unless the provisions of paragraph I I below are reinstated or readopted 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. ( 0000540 LDOC / 2) - I - 9/19/2007 12-34 PM 3. SALARY. The Town Council adopted a cost of living adjustment effective July 1, 2007, which Employee was entitled to receive by the terms of the Employment Agreement between the Town of Marana and the Employee entered into pursuant to Marana Resolution No. 2005-06. With that cost of living adjustment, Employee would have begun receiving an annual Base Salary of $150,145.33 as of July 1, 2007. However, Employee opted to defer the cost of living increase to allow a reasonable time for Employee to buy back retirement time, taking advantage of the Town's July 1, 2007 transition to the Arizona State Retirement System. Town shall continue to pay Employee his current annual Base Salary (with the cost of living adjustment deferred) of $142,183.08 until the pay period beginning September 29, 2007, when Employee's annual Base Salary shall be increased to $160,000.00 payable bi-weekly at the same time that the other Town employees are paid, adjusted as follows: A. Future wage adjustments. Employee's base salary 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. B. 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 November (see, paragraph 9 below), beginning in November 2008. Any merit increase shall be effective on January I 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 5.6 hours per pay period. B. Employee will accrue Sick Leave at the rate of 3.7 hours per pay period. C. If Employee's employment is voluntarily or involuntarily terminated, Employee shall be compensated for all accrued unused Vacation 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 $23 1.00 per pay period to the Employee. All travel outside Pima County shall be reimbursed at the mileage rate established by Internal Revenue Service. 10000540LDOC/2? -2- 9/19/2007 12 34 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 four percent as additional income over the amount paid pursuant to paragraph 3 above, which shall be allocated to the Employee's Section 457 Deferred Compensation Plan. This additional benefit shall be payable effective the first normal paycheck after the effective date of this Agreement. S. 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; provided, however, that the Town Council shall undertake the role of the "Department Head" under the tuition reimbursement ("Educational Assistance") policy. 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 may 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 November of each year, beginning in 2008. 10. INDEMNIFICATION The Employee shall have the rights set forth under Town Code Section 2-10-2 as it currently exists, and any amendment that limits or reduces the protection of the Employee during the duration of this Agreement shall not apply. t0000540LDOC/2) -3- 9/19/2007 12:34 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 (as it may be adjusted from time to time as set forth in paragraph 3 above) and the following benefits: A. A lump sum payment for Employee's accrued unused Vacation Leave (see paragraph 4 above), and B. A lump sum payment to Employee's Section 457 Deferred Compensation Plan contribution in the amount of two percent of Employee's then-existing annual salary (that is, four percent of Employee's salary over a six-month period) (see paragraph 7 above). 12. OTHER 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, relatin to the performance of the Employee, provided such terms and conditions gre 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. 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 hanned. E. Employee agrees to maintain residence within the corporate limits of the Town of Marana, Arizona. F. Employee agrees to remain in exclusive employ of the Town of Marana. However, this shall not be construed to preclude Employee from 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. 100005401.DOC / 2) 9/19/2007 12:34 PM 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. D. If any provision of this Agreement found unconstitutional, invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected and shall remain in full force and effect. E. This Agreement is subject to A.R.S. § 38-511, which provides for cancellation by the Town of Marana if any person significantly involved in initiating, negotiation, securing, drafting or creating this Agreement on behalf of the Town is, at any time while this Agreement or any extension of it is in effect, an employee or agent of the Employee or a consultant to the Employee with respect to the subject matter of this Agreement. F. This Agreement takes the place of, supersedes and terminates the Employment Agreement between the Town of Marana and the Employee entered into pursuant to Marana Resolution No. 2005-06. 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 MICHAEL A. REuwSAAT municipal corpo By Ed on a, Mayor Date: 10-q- AOO? ATTEST: JVyn Bronsdn, Town Clerk I- -- 0000540 1. DOC / 2 ? -5- CA-'t Date: /0- q- A00 4 9/19/2007 12:34 PM