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(
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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.
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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.
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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.
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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.
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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
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Date: /0- q- A00 4
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