EMPLOYMENT CONTRACT. corporation hereinafter called Employer as party ofthe first part and Phillip A

Transcription

1 EMPLOYMENT CONTRCT THIS GREEMENT made and entered into this day of ugust by and between the CITY OF ST CLIR SHORES State of Michigan a municipal corporation hereinafter called Employer as party ofthe first part and Phillip Ludos hereinafter called Employee as parry ofthe second part both ofwhom understands as follows WITNESSETH WHERES Employer desires to employ the services of said PHILLIP LUDOS as City Manager ofthe CITY OF ST CLIR SHORES as provided by CITY CHRTER and WHERES it is the desireof the Council to secure and retain the services of Employee and to provide inducement for himto remain in such employment to make possible full work productivity by assuring Employee s morale and peace ofmind with respect to future security to act as adeterrent against malfeasance or dishonesty for personal gain on the part ofthe Employee and to provide a just means for terminating Employee sservices and WHERES Employee desires to accept employment as CITY MNGER of said City NOW THEREFORE in consideration ofthe mutual covenants herein contained the as parties agree follows

2 Duties Employer hereby agrees to employ said Phillip Ludos as City Manager of Employer to perform the function and duties as specified in the ST CLIR SHORES City Charter and applicable ordinances ofthe City and to perform other legally permissible and proper duties and functions as the Council shall from time totime assign Term Employee acknowledges that he is an atwill employee and that nothing in this agreement shall prevent limit or otherwise interfere with the right ofthe Council to terminate the services of Employee at anytime subject only to the provisions set forth in paragraphs and Dofthis agreement Nothing in this agreement shall prevent limit or otherwise interfere with the right ofthe Employee to resign at any time from his position with Employer subject only to the provisions set forth in paragraph C ofthis agreement C Employee agrees to remain the exclusive Employee ofthe Employer commencing ugust and neither to accept other employment nor to become employed by any other employer thereafter as long as Employee remains in the employ ofthe Employer D The term exclusive employee shall not be construed to preclude occasional teaching writing consulting or military reserve service performed during Employee stime off Suspension Employer may suspend the Employee with or without full pay and benefits at City Council discretion at any time during the term ofthis agreement but only if

3 majority ofcouncil and Employee agree or fter an open meeting a majority ofcouncil votes to suspend Employee forjust cause provided however the Employee shall have been given written notice setting forth any charges at least ten days prior to such meeting Termination and Severance Pay Inthe event Employee is terminated by the Council during such time that Employee is willing and able to perform his duties under this agreement then in that event Employer agrees to give Employee seven days notice of termination provided however that in the event Employee is terminated for cause which shall include but not be limited to his conviction of any illegal act involving personal gain to him then in that event Employer shall have no obligation to give the Employee advance notice of termination and shall have no further obligation to Employee pursuant to the terms ofthis contract In the event Employer at any time during the term of this agreement reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across the board reduction far all the administrative employees of Employer or in the event Employer refuses following written notice to comply with any other provision benefiting Employee herein then in that event Employee may at his option be deemed to beterminated at the date ofsuch reduction or such refusal to comply C In the event Employee voluntarily resigns his position with Employer then Employee shall give Employer ninety days notice in advance unless the parties otherwise agree

4 D In the event that Employee is terminated by Employer except for cause Employer will continue to compensate Employee in accordance with the provisions of and The severance package shall consist ofthe Employee ssalary and benefits in effect on the date ofwritten notification for a period of one hundred and eighty days Disability If Employee is permanently disabled or is otherwise unable toperform his duties because ofsickness accident injury mental incapacity or health for a period offour successive weeks or twenty working days overa thirty working day period and beyond any accrued sick leave Employer shall have the option toterminate this agreement upon payment ofa lump sum equal to fourteen days salary provided however that said fourteen I days salary shall not be paid if the Employee s short term or long term disability payments shall have commenced However Employee shall be compensated for any accrued sick leave vacation or other accrued benefits Upon payment ofthe sumsdetailed in this Employer shall have no further obligation to Employee Salary Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary ofone hundred and twenty thousand dollars and as modified from time totime payable in installments at the same time as other employees ofthe Employer are paid

5 In addition Employer agrees to periodically consider an adjustment to said base salary and or other benefits of Employee in such amounts and to such extent as the Council may determine the on basis ofan annual performance review of said Employee made at the same time as similar consideration is given other employees generally Performance Evaluation The Council shall review and evaluate the performance ofthe Employee at least once annually between July and September ofeach year Said review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee Said criteria may be added to or deleted from as the Council may from time totime determine Further the City Council shall provide the Employee with a summary written statementofthe findings ofthe Council and provide an adequate opportunity for the Employee to discuss his evaluation with Council t least annually the Council and Employee may define such goals and performance objectives which they determine necessary for the proper operation ofthe City Said goals and objectives shall be reduced to writing They shall generally be attainable within the time limitations as specified and the annual operation and capital budgets and appropriations provided C In effecting the provisions of this the Council and Employee mutually agree to abide by the provisions of applicable law utomobile Employer agrees to provide Employee a sum offive hundred dollars per month and as adjusted from time to time by City Council as an automobile allowance and Employee shall be responsible for the purchase or lease of an automobile ofhis

6 choice and tocover the annual cost ofautomobile insurance licenses fuel and any related maintenance and or repairs Vacation Sick Leave and Holidays s an inducement to Employee for himto become City Manager at signature hereof Employee shall be entitled to five weeks vacation leave each calendar year Employee shall be entitled to all regular holidays currently granted to other employees Employee s vacation shall be pro ratedie two and one half weeks for each six months of employment Vacation days are for use only and shall have no cash out value Disability Health and Life Insurance Employer agrees to put into force and to pay required premium payments of Employee for insurance policies for accident sickness long and short term disability income benefits major medical group insurance equal to that which is provided othernon union employees ofemployer covering Employee only Employer agrees to purchase and pay the required premiums on aterm life insurance policy of with the beneficiary named by Employee toreceive all benefits C Employer agrees to provide dental optical insurance for the durationof the agreement for the Employee and his dependents equal to that which is provided other non union employees of Employer Retirement Employer agrees to execute all necessary agreements provided by the International City Management ssociation Retirement CorporationICM RC for

7 Employer sparticipation in said ICM RC retirement plan and in addition to the base salary paid by the Employer to Employee the Employer agrees to pay an amount equal to ten percent or as adjusted from time to time by City Council of Employee s base salary into the ICM RC on Employee s behalf in equal proportionate amount each pay period and to transfer ownership to succeeding employers upon Employee sresignation or discharge from the Employer In addition Employer shall contribute to the aplan an amount equivalent to that contributed on behalf ofother R employees as adjusted from time to time by City Council The employer shall provide a Retiree Health Savings RHS program for the employee which shall be administered by the International City Management ssociation Retirement Corporation The program shall be funded by contributions amounts equal totwo percent ofbase wage by the Employer and aone percent ofbase wage by the Employee Memberships Employer hereby agrees to pay as part ofthe City Manager sbudget the annual membership fees and related training materials ofthe International City Management ssociation INC and the Michigan Local Government Management ssociation MLGM Indemnification Employer shall defend save harmless and indemnify Employee against anytort professional liability claim or demand or other legal action whether groundless or otherwise arising out ofan alleged act or omission occurring in the performance of

8 Employee s duties as City Manager Employer will compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered thereon Employer reserves the right towithhold said indemnification in the event said alleged act or omission is an illegal act ofomission or commission onding Employer shall bear the full cost of any fidelity or other bonds required ofthe Employee under any law or ordinance Other Terms and Conditions of Employment The Council may fix any such other terms and conditions of employment as it may determine from time to time relating to the performance of Employee provided such terms and conditions are not inconsistent with or in conflictwith the provisions of this agreement the City Charter or any other law ll provisions ofthe City Charter and Code and regulations and rules of the Employer relating to vacation and sick leave retirement and pension system contributions holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended also shall apply to Employee as they would to other employees of Employer in addition to said benefits enumerated specifically for the benefit of Employee except as herein provided No Reduction of enefits Employer shall not at any time during the term ofthis agreement reduce the salary compensation or other financial benefits of Employee except to the degree of such a reduction across the boardfor all deparkment head employees ofthe Employer

9 Notices Notice pursuant to this agreement shall be given by deposit in the custody ofthe United States Postal Service postage prepaid addressed as follows EMPLOYER City Clerk City of St Clair Shores Jefferson Circle Drive St Clair Shores MI EMPLOYEE Phillip Ludos Jefferson Circle Drive St Clair Shores MI lternatively notices required pursuant to this agreement may be personally served in the same manner as is applicable tocivil judicial practice Notice shall be deemed given as ofthe date ofpersonal service or as ofthe date of deposit ofsuch written notice in the course of transmission in the United States Postal Service General Provisions The text herein shall constitute the entire agreement between the parties This agreement shall be binding upon and inure to the benefit ofthe heirs at law and executors of Employee C This agreement shall become effective upon execution If any provision or any portion thereof contained in this agreement is held unconstitutional invalid or unenforceable the remainder ofthis agreement or portion thereof shall be deemed severable shall not be affected and shall remain in full force and effect IN WITNESS WHEREOF the City ofst Clair Shores has caused this agreement tobe signed and executed in its behalf by its Mayor and duly attested by its City Clerk and the Employee has signed and executed this agreement both in duplicate the day and year first above written

10 KIP C WLY Mayor ofthe City of St Clair Shores State of Michigan TTEST MRY KOTOWSKI City Clerk PHILLIP LUDOS Employee Date