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HomeMy WebLinkAboutRes 2023-02-1381 Interim City Manager Employment AgreementCITY OF ANNA, TEXAS RESOLUTION NO. ,2a23 - O 2 - 1 3$1 A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING AN INTERIM CITY MANAGER EMPLOYMENT AGREEMENT. WHEREAS, the City Council may appoint a person to serve as the City Manager upon the affirmative vote of a majority of the full membership of the City Council; WHEREAS, the City Council approved a motion at the January 14, 2023, Special City Council Meeting appointing Ryan Henderson as the Interim City Manager; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated. The facts and recitals above are incorporated herein as if set forth in full for all purposes. Section 2. Appointment of Interim City Manager Ryan Henderson was appointed to serve as the Interim City Manager for the City of Anna, Texas, effective January 14, 2023. Section 3. Approval of Employment Agreement The City Council hereby approves the employment agreement with said appointed Interim City Manager and authorizes the Mayor to execute same. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 14'h day of February, 2023. ATTESTED: Carrie L. Land, City Secretary APPROVED: ke, Mayor RES. PAGE 1 OF 1 CITY OF ANNA, TEXAS INTERIM CITY MANAGER AGREEMENT THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COLLIN § THIS INTERIM CITY MANAGER AGREEMENT ("Agreement") is made and entered into effective the 4rday of abru&ry 2023, by and between the City of Anna, Texas, a Texas municipal corporation (the "City") and Ryan Henderson ("Henderson," "Manager," "City Manager," or "Interim City Manager"). WITNESSETH: WHEREAS, regardless of the use of the terms "Manager," "City Manager," or "Interim City Manager" in this Agreement it is understood by Henderson and the City of Anna City Council (the "Council" or "City Council") that Henderson is employed by the City solely as "Interim City Manager" unless or until this Agreement is expressly amended to provide otherwise; WHEREAS, the Council and the Manager believe that an employment agreement negotiated between the Council, on behalf of the City, and the Manager can be mutually beneficial to the City, the Manager, and the community they serve; WHEREAS, when appropriately structured, the Council and the Manager believe an employment agreement strengthens the Council -Manager relationship by enhancing the excellence and continuity of the management of the City to the benefit of its citizens; WHEREAS, the Council, on behalf of the City, desires to employ the services of the Manager, as and in the position of Interim City Manager of the City of Anna, Texas (the "City Manager") pursuant to the terms, conditions and provisions of this Agreement; WHEREAS, the Manager has agreed to accept employment as the City Manager, subject to the terms, conditions and provisions of this Agreement; NOW, THEREFORE, the City and the Manager, for and in consideration of the terms, conditions and provisions hereinafter established have agreed, and do hereby agree as follows: Article I. Term 1.1 Term. The term of this Agreement shall be for one year (the "Initial Term") deemed to have begun on the 141h day of January 2023, provided, however, that the term of this Agreement shall be subject to earlier termination under any circumstance described by Article VI of this Agreement. Upon expiration of the Initial Term, this Agreement shall automatically be extended for an additional year, unless the Council Interim City Manager Agreement Page 1 of 10 notifies the Manager in writing at least four (4) months prior to the anniversary of the effective date of this Agreement that it has voted to not extend this Agreement. The Council may elect in its sole discretion to not extend this Agreement for an additional year as set forth in this Paragraph for any reason, with or without cause. Article II. Employment 2.1 ref Administrative Officer. The Manager is the chief administrative officer of t e City and shall faithfully perform the duties of the City Manager as prescribed in the job description, as set forth in the City of Anna, Texas Home -Rule Charter (the "Charter") and City ordinances, and as may be lawfully assigned by the Council (collectively the "City Manager's Duties"). All duties assigned to the Manager by the Council shall be appropriate to and consistent with the professional role and responsibility of the City Manager position. 2.2 Duties. The Council does hereby employ the Manager as Interim City Manager to perform the City Manager's Duties in accordance with the Charter, code of ordinances, and applicable law, and as reasonably required by the Council, and each of the following duties consistent with and to the full extent not prohibited by or in material conflict with any existing provisions of the Charter or applicable law: a. appoint, suspend and remove all City employees and appointive administrative officers provided for in the Charter, except as otherwise provided by the Charter or personnel rules adopted by the City Council in accordance with the Charter; b. direct and supervise the administration of all departments, offices and agencies of the City, except as otherwise provided by law or the Charter; C. see that all state laws and City ordinances are effectively enforced; d. attend all City Council meetings —or if absent designate another City employee to attend —with the right to take part in discussion, but the City Manager may not vote; e. prepare and accept, or designate an appropriate department head or City employee to prepare and accept, items for inclusion in the official agenda of all City Council meetings and meetings of all boards and commissions; f. prepare and recommend to the City Council the annual budget and capital program, and administer the budget as adopted by the City Council; interim City Manager Agreement Page 2 of 10 g. keep the City Council fully advised at least quarterly as to the financial conditions and future needs of the City, and make such recommendations concerning the affairs of the City, as the City Manager or the City Council deems desirable or necessary; h. make reports as the City Council may require concerning the operations of the City departments, offices, or agencies subject to the City Manager's direction or supervision; and i. perform such other duties as are specified in the Charter or may be required by the City Council, and as are consistent with the Charter or state and federal law. The Manager shall perform the City Manager's Duties with reasonable care, diligence, skill and expertise. 2.3 Reassignment. The Manager cannot be reassigned from the position of City Manager to another position without the Manager's prior express written consent. The Manager may, upon thirty (30) days written notice to the City Council (the "Reassignment Period"), return to the position of Assistant City Manager at the same salary and benefits he received prior to the Effective Date of this Agreement. Upon returning to the position of Assistant City Manager this Agreement shall terminate and Henderson's position of Assistant City Manager shall be governed under the Personnel Manual. Notwithstanding the foregoing or any other provision of this Agreement, at any time during the Reassignment Period, the Council may: (1) make the Manager's return to the position of Assistant City Manager effective sooner than the expiration of the Reassignment Period; or (2) remove the Manager from employment with the City in accordance with Article VI. 2.4 Council Meetings. Except to the extent prohibited by or in material conflict with applicable law, the Manager or the Manager's designee shall attend, and shall be permitted to attend, all meetings of the Council, both public and closed, with the exception of those closed meetings devoted to: (1) the consideration of any action or lack of action on this Agreement, or any amendment thereto; (2) evaluations of the Manager, City Secretary, Municipal Court Judge and the City Attorney; (3) addressing conflicts between individual Council members; and (4) instances where the attendance of the Manager would create a conflict of interest or impediment to the Council receiving candid legal or other professional advice. 2.5 Criticisms, Complaints, and Suggestions. The Council, individually and collectively, shall refer in a timely manner all substantive criticisms, complaints, and suggestions called to the Council's attention to the Manager for study and/or appropriate action, and the Manager shall refer the matter(s) to the appropriate City Interim City Manager Agreement Page 3 of 10 employee or shall investigate such matter(s) and inform the Council of the results of such efforts. 2.6 Indemnification. THE CITY SHALL DEFEND, HOLD HARMLESS, AND INDEMNIFY THE MANAGER TO THE FULL EXTENT IT MAY BE PERMITTED TO DO BY CHAPTER 102 OF THE TEXAS CIVIL PRACTICE & REMEDIES CODE. The provisions of this Paragraph 2.6 shall survive the termination, expiration or other end of this Agreement and/or the Manager's employment with the City. 2.7 Appropriation. The Council has appropriated, set aside and encumbered, and does hereby appropriate, set aside, and encumber, available and otherwise unappropriated funds of the City in an amount sufficient to fund and pay all financial obligations of the City pursuant to this Agreement. 2.8 Hours of Work. The Manager acknowledges the proper performance of the City Manager's Duties require the Manager to generally observe normal business hours and will also often require the performance of necessary services outside of normal business hours. The Manager agrees to devote such additional time as is necessary for the full and proper performance ofthe City Manager's Duties and that the compensation herein provided includes compensation for the performance of all such services. However, the City intends that reasonable time off be permitted the Manager, such as is customary for exempt employees so long as the time off does not interfere with the normal conduct of the office of the City Manager. The Manager will devote full time and effort to the performance of the City Manager's Duties, and shall remain in the exclusive employ of the City during the term of this Agreement. Article III. Compensation, Benefits, and Expenses 3.1 Salary. For the Initial Term, the City shall provide the Manager with an annual salary in the sum of $182, 145. The Manager's salary shall be paid to the Manager in equal installments on the schedule of other City employees and shall be paid net of any applicable withholding or deductions required by applicable law. 3.2 Salary Adjustment. At any time during the term of this Agreement, the Council may, in its discretion, review and adjust the salary of the Manager. Such adjustments shall be made pursuant to lawful Council resolutions. In such event, the parties agree to provide their best efforts and reasonable cooperation to execute an amendment to this Agreement incorporating the adjusted salary. Beginning in 2023, the Manager's then current salary shall be considered for adjustment each year, at or near the time other employees appointed by the City Council receive their increased compensation adjustments, or at such other specific time as may be agreed upon. It is generally the intent of the City and the Manager that the Council shall conclude its consideration of the Manager's salary adjustment before the end of September of each year; provided, however, that failure of the Council to conclude its consideration of the Interim City Manager Agreement Page 4 of 10 salary adjustment within this time period shall not be considered a breach of this Agreement. The Council shall base said adjustment on the performance of the Manager and may use factors such as comparable municipal compensation for the city manager position. 3.3 Paid Leaves — Vacation, Sick and Holiday. The Manager shall begin employment with 120 hours of vacation leave and vacation leave shall thereafter be governed by the City of Anna Personnel Manual (the "Personnel Manual"), except that beginning on the Manager's first day of employment and continuing for each year thereafter, the Manager shall accrue 8 hours of vacation leave per month, and shall accrue a maximum of the greater of 240 hours of annual vacation leave or the maximum provided for in the Personnel Manual for City employees. The vacation leave taken by the Manager will be taken at such time or times as will not materially interfere with the performance of the City Manager's Duties. The Manager shall begin employment with 80 hours of sick leave and shall otherwise be governed by the same sick leave benefits as authorized for other employees of the City under the Personnel Manual. The Manager shall observe the same legal holidays as provided under the Personnel Manual. 3.4 Benefits — General. Unless expressly provided otherwise in this Agreement, in addition to those benefits specifically set forth herein, the Manager shall be entitled to the same benefits that are enjoyed by other administrative employees of the City pursuant to all applicable law. 3.5 Insurance — Health. During the term of this Agreement, the City agrees to pay the complete premiums for health, hospitalization, vision, dental and comprehensive medical insurance for the Manager and the Manager's dependents pursuant to the group health care plan provided by the City for its administrative employees. 3.6 Retirement Benefit. The City agrees to enroll the Manager into the TMRS retirement system and the City's 457 Plan and to make at least the same level of contributions for the Manager or on the Manager's behalf as the City does for its other administrative employees consistent with all applicable law. 3.7 Expenses. The City shall pay or reimburse the Manager for reasonable expenses incurred by the Manager in the continuing performance of the City Manager's Duties. Actual or incidental costs may include, but are not limited to, gasoline, hotels, and accommodations, meals, rental car, and other expenses incurred in the performance of the business of the City. The Manager shall comply with all procedures and documentation requirements to recover expenses in accordance with the Personnel Manual and applicable law. 3.8 Bonds. The City shall bear the full cost of any fidelity or other bonds required of the Manager under any law or ordinance. Interim City Manager Agreement Page 5 of 10 3.9 Civic Activities. The Manager is encouraged to participate in community and civic organizations and activities. The cost of such activities shall be borne by the City. 3.10 Vehicle Allowance. The Manager shall be paid $400 per month as a vehicle allowance. 3.11 Moving Expenses. Upon the Manager relocating his residence to the City of Anna, the City shall reimburse Manager up to a maximum of $2,500, upon receipts for expenses as otherwise required under the Personnel Manual. 3.12 Mobile Phone. The City shall provide and pay for the Manager's mobile phone for professional and reasonable personal use; provided, however, that at the Manager's option the City shall provide an allowance to the Manager for a mobile phone that the Manager may use for professional and reasonable personal use. 3.13 Discretionary Reimbursable Expenses. In addition to reimbursement for normal and customary expenses described in paragraph 3.7 and Article IV of this Agreement, the City shall reimburse the Manager up to $2,500 for other expenses incurred by the Manager in the Manager's discretion in the continuing performance of the City Manager's Duties. Article IV. Professional Growth 4.1 Professional Dues and Subscriptions. The City agrees to budget for and to pay for reasonable professional dues and subscriptions of the Manager necessary for continuation and full participation in national, state, regional, and local associations and organizations as necessary and/or desirable for the good of the City through the Manager's continued professional participation growth and advancement, including ICMA, TCMA, local service clubs or other similar local organizations. 4.2 Professional Development Travel. The City agrees to budget for and to pay for reasonable travel and subsistence expenses of the Manager for professional and official travel and meetings to adequately continue the professional development of the Manager and to pursue necessary official functions forthe City, including but not limited to the ICMA annual and regional conferences, the Texas Municipal League, the Texas City Management Association, and such other national, regional, state and local government groups and committees in which the Manager is a member. 4.3 Professional Continuing Education. The City also agrees to budget for and to pay for reasonable travel and subsistence expenses of Manager for short courses, institutes, and seminars that are necessary and/or desirable for the good of the City through the Manager's professional development. Interim City Manager Agreement Page 6 of 10 Article V. Performance Evaluation 5.1 Evaluation Process. The Council shall review the Manager's job performance at least once annually. Said job performance evaluation shall be undertaken at the time when other employees appointed by the Council receive their increased compensation adjustments, or at such other specific time as may be agreed upon. Said Evaluation Process shall include Council review of a comprehensive overview, prepared by the Manager, of the prior year or time period achievements, work efforts, and project progress of the City organization. The Council may supplement the overview prepared by the Manager. It is the intent of the evaluation process that the Manager and Council establish an effective communication linkage so that each knows the goals and objectives to be pursued and the perception of the other party as to the implementation success achieved. The annual performance reviews and evaluations shall be in writing and in accordance with criteria and format developed jointly by the Council and the Manager. The Council shall provide the Manager a reasonable and adequate opportunity to discuss with the Council and/or respond to the Manager's evaluation. It is the intent of the evaluation process that the Manager and Council establish an effective communication linkage so that each knows the goals and objectives to be pursued and the perception of the other party as to the implementation success achieved. 5.2 Confidentiality. Unless the Manager expressly requests otherwise in writing, except to the extent prohibited by or in material conflict with applicable law, the evaluation of the Manager shall at all times be conducted in closed session of the Council and shall be considered confidential to the maximum and full extent permitted by law. Nothing herein shall prohibit the Council or the Manager from sharing the content of the Manager's evaluation with their respective legal counsel. 5.3 Modification of Evaluation Process. In the event the Council determines that the evaluation instrument, format and/or procedure are to be modifiedby the Council, and such modifications would require new or different performance expectations, then the Manager shall be provided at least six (6) months to demonstrate such expected performance before being evaluated. Article V1. Termination 6.1 Termination Events. This Agreement shall terminate upon any of the following: a. Separation by voluntary resignation of the Manager; b. Separation by mutual agreement of the Council and Manager in writing and signed by them; Interim City Manager Agreement Page 7 of 10 C. Separation by retirement or death of the Manager; d. Termination of the Manager's employment by majority vote of the full membership of the Council, in accordance with the City's Charter, Sec. 4.01(c). e. A reassignment under Paragraph 2.3. 6.2 Compensation Upon Termination. Upon a Termination Event, the Manager shall be entitled to receive compensation of salary earned up until the time of the termination plus the value of any accrued but unused vacation and sick/personal leave days. These amounts shall be computed on an hourly basis using 2,080 as the annual number of hours. Notwithstanding the foregoing, this Paragraph 6.2 shall not apply if the Manager is entitled to Severance under Paragraph 6.3. 6.3 Severance. This Paragraph 6.3 shall only apply to a Termination Event under Paragraph 6. Lb to the extent expressly set forth in a written agreement under said paragraph or Paragraph 6.1 d.; provided, however, that this Paragraph 6.3 shall not apply and the Manager shall not be entitled to the Severance Amount or Severance Benefits for any Termination Event under Paragraph 6. Lb or 6.1.d. that is made on the basis of Good Cause. For the purposes of this Paragraph, "Good Cause" means that: (1) the Manager has been convicted of a felony, a crime of moral turpitude, or any other crime or Charter violation that would lawfully require the Manager's removal from or forfeiture of the position of City Manager; or (2) the Manager fails to reside within the City to the extent required under the Charter. For the Purposes of this Paragraph, "Severance Amount" means an amount equal to the value of six (6) months of the Manager's then current salary and the value of any accrued but unused vacation and sick/personal leave days, computed on an hourly basis using 2,080 as the annual number of hours; provided, however, that the Severance Amount shall increase by the value of one month of the Manager's then current salary for each year of service as Manager under this Agreement up to a maximum of six (6) months of the Manager's then current salary and the value of any accrued but unused vacation and sick/personal leave days, computed on an hourly basis using 2,080 as the annual number of hours. For the Purposes of this Paragraph "Severance Benefits" means, at the City's expense, provision of continued health insurance benefit pursuant to Paragraph 3.5 of the Agreement, for a time period that is the earlier of (1) six (6) months; or (2) until the Manager obtains other fulltime employment and coverage through a group health insurance plan from the Manager's new employer. If this Paragraph 6.3 applies to a Termination Event, the Manager shall be entitled to receive the Severance Amount and the Severance Benefits. The Manager may elect by written notice to the City to receive the Severance Amount in a single lump sum payment or paid in equal Interim City Manager Agreement Page 8 of 10 installments over a six-month period from the time of the Manager's separation from employment with the City. If the Manager fails to make such an election, the Manager shall be paid the Severance Amount in a single lump sum payment. Article VII. Residency Requirement 7.1 Residency Requirement. The Manager and the City Council recognize that the Manager is only serving in the role of Manager on an interim basis and therefore the Manager need not be a resident of the City during the term of this Agreement. Article VIII. General Provisions 8.1 Complete Agreement. This Agreement sets forth and establishes the entire understanding between the City and the Manager relating to the employment of the Manager by the City. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties by mutual written signed agreement may amend any provision of this Agreement during the term of this Agreement; such amendments shall be incorporated and made a part of this Agreement. 8.2 Binding Effect. This Agreement shall be binding on the City and the Manager as well as their heirs, assigns, executors, personal representatives and successors in interest. 8.3 Savings Clause. If any term or provision of this Agreement, as applied to any party or to any circumstance, is declared by a court of competent jurisdiction hereof to be illegal, unenforceable or void in any situation and in any jurisdiction, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending provision in any other situation or in any other jurisdiction. The parties agree that the court making such determination shall have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases orto replace any illegal, unenforceable or void term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 8.4 Conflicts. In the event of any conflict between the terms, conditions and provisions of this Agreement and applicable law, then, unless otherwise prohibited by law, the terms of this Agreement shall take precedence over the contrary provisions of applicable law during the term of this Agreement. Interim City Manager Agreement Page 9 of 10 8.5 Controlling Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas and shall be performable in Collin County, Texas unless otherwise provided bylaw. City of Anna, Texas �l By: Nate Pike, Mayor Executed on this the A day of 2023. Interim City Manager M Interim City Manager Agreement on this the L4kay of 2023.