between the CITY OF SAGINAW, a Michigan municipal corporation ("City"), of 1315

Transcription

1 EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 8th day of October 2013, by and between the CITY OF SAGINAW, a Michigan municipal corporation ("City"), of 1315 S. Washington Avenue, Saginaw, Michigan, , and Timothy Morales ("Mr. Morales"), both of whom understandas follows: WHEREAS, the City desires to employ the services of Mr. Morales as City Manager of the City on an interim basis ("Interim City Manager") until such time the City undertakesa search for, and selects a new City Manager; and WHEREAS, Mr. Morales desires to accept employment as Interim City Manager of the City.while the City undertakesa search for, and selects a new City Manager; NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: 1. DUTIES. The City agrees to employ Mr. Morales as Interim City Manager according to the provisions of the City's Charter and Administrative Code and to perform' any other legally permissible and proper duties and functions as the City shall from time-to-time assign to Mr. Morales. 2. COMPENSATION. (A). For the performance of the duties of Interim City Manager, the City agrees to pay Mr. Morales a base annual salary of $110,000 effective upon the date of his appointment by City Council (October 8, 2013). The salary will be payable in equal bi-weekly installments at the same time as the Non-Union Salaried Management Group.employeesof the City are paid. 1

2 (8) In the event Mr. Morales' employment as Interim City Manager continues for m ore than one year from October 8, 2013, the City agrees to review Mr. Morales' compensation to consider any adjustments to be made in the form of annual compensation, performance bonus, benefits or other forms of compensation. However, in no event shall the annual increase be less than the percentage increase paid to the Non-Union Salaried Management Group. 3 DEFERRED COMPENSATION. Mr. Morales may participate in a Council Approved 457 deferred compensation plan and the City shall contribute $5,000 annually to the plan on behalf of Mr. Morales. For the calendar year 2013, and any other partial years during which Mr. Morales may be employed under this Agreement, the annual contribution by the City shall be prorated. The annual contribution shall be made by the City at the end of the calendar year. However, if this Agreement is terminated before the end of this or a subsequent calendar year, the prorated contribution for that calendar year shall be made upon termination of this Agreement. In the event Mr. Morales' employment as Interim City Manager continues for more than one year from October 8,2013, the City agrees to review the amount of its contribution to the plan pursuant to Paragraph2(C) above. 4. TERM OF AGREEMENT. This Agreement is for an indefinite term as required by Section 25 of the City Charter. This Agreement may be terminated by either party at any time, for any reason subject only to Paragraph 5 below. 5. TERMINATION/REMOVAL. In considerationof the fact that Mr. Morales is employed hereunder as Interim City Manager pending the outcome of a search for a 2

3 new City Manager, it is agreed that Mr. Morales' employment may be terminated and Mr. Morales may be removed from the position of Interim City Manager at any time for any reason by a two-thirds vote of the members of City Council. Mr. Morales expressly, voluntarily and knowingly waives any additional rights or procedures set forth in Section 27 of the Charter of the City of Saginaw, including but not limited to, the right to an initial resolution of intent to remove stating the reasons therefor at least 30 days before removal and the right to a public hearing before a final resolution removing Mr. Morales as Interim City Manager. In the event the Mr. Morales is removed from the position of Interim City Manager, he shall have the expressed right to return to his previous position as Deputy City Manager/CFO, without loss of seniority. At that point in time, Mr. Morales' compensation and benefits will be restored to the levels he received when he was Deputy City Manager/CFO. 6. RESIGNATION AND SEVERANCE PAY. (A) Resignation. Mr. Morales, before voluntarily resigning from his employment with the City under this Agreement, agrees to give the City not less than 30 days' notice in writing of his intention to resign unless the parties otherwise agree inwriting. 7. HOURS OF WORK. In consideration of the salary and benefits provided in this Agreement, the performance Mr. Morales agrees that he shall work whatever hours are necessary in of the duties and functions of Interim City Manager, and that he will not be entitled to extra compensation for any hours worked outside of normal business hours of the City. 3

4 8. BENEFITS. Mr. Morales is provided the same level of benefits provide to all Non-Union Salaried Management Group employees of the City unless otherwise noted herein. (Also see attached Exhibit A) (A) Personal Time Off. Mr. Morales shall have' the same paid time off program available to all Non-Union Salaried Management personnel. (B) Insurance. Mr. Morales shall have the right to participate in the life insurance provided to the City's Non-Union Salaried Management Group employees at no cost to him. The City shall provide $100,000 of term life insurance. (C) Retirement. The City shall contribute 10 percent of Mr. Morales' base salary to the ICMA Executive Retirement Plan. The City shall execute all necessary plan documents as submitted by ICMAto effectuatethis provision. (0) Automobile. In lieu of providing an automobile for his use, the City hereby agrees to provide Mr. Morales with a monthly vehicle allowance of $500. Mr. Morales agrees that he shall maintain liability insurance on his personal vehicle. (E) Holidays. Mr. Morales shall be entitled to the same paid holidays as provided to the Non Union Salaried Management Group employeesof the City. (F) Miscellaneous. Except as provided for herein, Mr. Morales shall be entitled to receive benefits extended from time to time to the Non-Union Salaried Management Group employees of the City. This paragraph is not intended to provide Mr. Morales with duplicate or supplementalbenefits but, rather, to assure that he receives benefits at least equal to those provided to Non-Union Salaried Management Group employees of the City. See Exhibit A attached hereto and incorporated herein. 4

5 9. OTHER TERMS AND CONDITIONS AND PERFORMANCE. (A) Evaluation. The City Council shall fix the terms and conditions of employment, from time to time, as it may determine in direct relationship to the merit and performance of Mr. Morales, while in the position of Interim City Manager of the City, provided such terms and conditions are not inconsistent or in conflict with the provisions of this Agreement. The City may at any time, but need not, conduct an evaluation of Mr. Morales' performance as Interim City Manager. (B) Conduct. Mr. Morales agrees that in performing the duties of Interim City Manager, he is a visible and public representative of the City and he shall at all times conduct himself in a manner that will not result in disgrace or embarrassment to the City and he shall not engage in conduct by which the City's interests will be imperiled or prejudiced. 10. INDEMNIFICATION. The City shall defend, save harmless and indemnify Mr. Morales from any tort, professional liability claim or other legal action of any kind occurring during Mr. Morales' performance of the duties of Interim City Manager. 11. BONDING, The City shall bear the full cost of any fidelity or other bonds required of Mr. Morales under any charter, law or ordinance. 1~. DUES AND SUBSCRIPTIONS, The City agrees to pay for all professional dues and subscriptions of Mr. Morales necessary for his continuation and full participation in national and state associations and organizations as mutually determined by the City and Mr. Morales to be necessary and desirable for the City and Mr. Morales, 5

6 13. PROFESSIONAL DEVELOPMENT. The City hereby agrees to pay for the travel and subsistence expenses of Mr. Morales for professional and official travel, meetings, institutes, seminars and occasions mutually determined by the City and Mr. Morales to be reasonable and necessary for the continued professional development of Conference. It is further agreed that Mr. Morales need not use PTO in order to attend meetings and serve on professional boards and committees where Mr. Morales' attendance and service is beneficial to the public interest and/or Mr. Morales' professional development as Interim City Manager. 14. ARBITRATION. If any dispute, matter or controversy involving claims of monetary damage or all claims relating to the termination of employment, including any allegations of a violation of state or federal law, such matters shall be referred to binding arbitration under the laws of the State of Michigan to the Federal Mediation and Conciliation Service. A decision of award shall be final and binding on the parties hereto. Such matter must be filed with FMCS within 200 days of the notice of termination. 15. GENERAL PROVISIONS. (A) Where appropriate,any referenceto the term "City"shalt refer to the City Councilfor the City of Saginaw,a municipal corporation. (8) Any salary or other compensation of Mr. Morales provided for herein is subject to federal, state and local withholding laws. (C) This Agreement shall constitute the entire Agreement between the parties and shalt supersede and replace any prior agreements between the parties, either 6.'

7 written or oral. This Agreement may not be changed or modified unless in writing signed by both parties. (D) This Agreement shall be binding upon and inure to the benefit of the heirs' at law and executors of Mr. Morales. (E) If any provision of this Agreement is in conflict with any applicable constitution, charter, statute, rule of law, regulation or otherwise unenforceable for any reason Whatever, then such provision shall be deemed null and void to the extent of such conflict or unenforceability, but shall be deemed separate from and shall not invalidate any other provision of this Agreement. (F) This Agreement shall be effective October 8,2013, and, unless otherwise indicated, the terms of this Agreement shall be retroactive to the effective date. ATTEST: CITY OF SAGINAW APPROVED AS TO SUBSTANCE AND FORM: GREG BRANCH, Mayor Attorney for City of Saginaw JANET SANTOS, City Clerk TIMOTHY MORALES 7

8 Less than 10 years of service = EXHIBIT A (Non-Union Full Time Employee Benefits) Employees Hired Prior to January 1! 1999: January 1st of each year: PAID TIME OFF (PTO) 28 days with a maximum accrual of 197 days 10 years or more years of service = 33 days with a maximum accrual of 197 days Maximum paid at retirement/termination = The lesser of the accrual bank at the beginning of the year plus prorated amount earned in year of termination or 164 days (included in FAC). Employees Hired On or After January 1,1999 and before June : January 1st of each year: Less than 10 years of service = 10 years or more years of service = Maximum paid at termination = amount earned in year of termination. 28 days with a maximum annual carryover of 44 days 33 days with a maximum annual carryover of 54 days Accrual bank at the beginning of the year plus prorated Employees Hired On or After July 1, 2012: January 1st of each year: Less than 10 years of service = 10 years or more years of service = Maximum paid at termination = amount earned in year of termination. 22 days with a maximum annual carryover of 44 days 27 days with a maximum annual carryover of 54 days Accrual bank at the beginning of the year plus prorated HOLIDAYS Employees are eligible for the following paid time off holidays: New Year's Day Martin Luther King's Birthday Good Friday Memorial Day 4th Of July Labor Day Veteran's Day Thanksgiving Friday after Thanksgiving Christmas Eve Day Christmas Day Employee's Birthday 1

9 Short Term Benefits: Employees receive 66-2/3% of their wages for six (6) Months. (Weekly maximum of $1,200) Long ~erm Benefits: of $5,000) SHORT AND LONG TERM DISABILITY Premiums are paid by the City of Saginaw. Short-term disability allows for a maximum of 26 weeks. Benefits will commence in accordance with the schedule listed below: Day 1 for an accident or injury. Day 8 of illness, which is the 8th day from the doctor's visit. Employees receive 60% of their wages to age 65. (Monthly maximum Employees may supplement wages using PTO time to yield 100% of wages. Once disabled, an employee's position at the City of Saginaw will be retained for 52 weeks. PENSION MERS Defined Benefit for Employees Hired Prior to January 1, 1999: Benefit B-4 [2.5% multiplied by years of service multiplied by FAC equals Pension]. Benefit maximum 80% of FAC. Benefit F50 (50 years of age with 25 years of service). Benefit FAC-3 (3 years of final average compensation). 8 year vesting. Benefit E-2 for all future retirees 2.5% annual increase to pension base. Member contribution rate 5%. MERS Defined Contribution for Employees Hired on or after January 1,1999: Contribution limits: 5% Employee Contribution and 10% Employer Contribution. Vesting Schedule 3 years of service - 20% 4 years of service - 40% 5 years of service - 60% 6 years of service - 80% 7 years of service - 100% DEFERREDCOMPENSATION Voluntary participation by employees, subject to plan and IRS provisions/limitations 2

10 HEALTH INSURANCE Current Employees: Health insurance and prescription drug coverage will be provided to Employee, spouse & eligible dependents subject to applicable co-pays, deductibles and employee contributions. Optional Opt-Out Program - proof of other similar healthcare coverage qualifies the employee to receive }'2 of their traditional annual premium paid in quarterly installments up to a cap of $2,500 per year. Retiree Healthcare for Employees Hired Before July 1, 2009: Health insurance will be provided to Retiree, spouse & eligible dependents for life with the following vesting schedule: o o e 100% of premiums paid by the City of Saginaw at 20 years of service 90% of premiums paid by the City of Saginaw 15 years of service 80% of premiums paid by the City of Saginaw after 10 years of service The retiree must be age 50 or greater with 25 years of service or at least age 55 with 10 years or more of service at the time of retirement from active employment. In addition to the health care vesting schedule above, eligible retirees will be responsible for retiree contributions, co-pays and deductibles that are in place at the time of retirement from active employment. Opt-Out Program for retiree- Same as for Active non-union employees. Health insurance will cease for retirees, who obtain other employment with an employer that provides health insurance equivalent to the City of Saginaw's health insurance program. When eligible for Medicare, the City of Saginaw will provide supplemental health insurance for eligible retirees & spouses. The City of Saginaw will not reimburse Medicare insurance premiums for retirees & spouses. Employees Hired After July 1,2009: Effective the first day of employment,the employee will be enrolled in the MERS Health Care Savings Program for the purpose of funding healthcare expenses after retirement. The City will contribute $ per month with a graduated vesting of 25% after 2 years, 50% after 4 years and 100% after 6 years. In addition, employees will contribute $5 per bi-weekly pay to the program. VISION Vision coverage for current employees, retirees, spouses & eligible dependents will provide an examination and lenses covered at $200 for frames and contacts. (The retiree must be age 50 or greater with 25 years of service or at least age 55 with 10 years or more of service at the time of retirement from active employment). 3

11 DENTAL Dental coverage is available for current employees, retirees, spouses & eligible dependents. (The retiree must be age 50 or greater with 25 years of service or at least age 55 with 10 years or more of service at the time of retirement from active employment). Benefit Level Class I Benefits - 100% (Diagnostic, Preventative). Class II Benefits - 50% Maximum annual benefit for Class I and Class II benefit is $ per year. Class III Benefit (Ortho) 70% with a maximum of $1,200 for the life of the contract per person. LIFE INSURANCE Current Employees: Group Life Insurance with Accidental Death and Dismemberment will be provided for current employees. The amount of coverage will be rounded to the next $1,000 of salary up to a maximum of $50,000. Retirees: Eligible retirees will receive a $10,000 life insurance policy. (The retiree must be age 50 or greater with 25 years of service or at least 55 with 10 years or more of service at the time of retirement from active employment). HEALTH CLUB MEMBERSHIP' The City will reimburse employees half of the cost of an annual membership not exceeding $150. TUITION REIMBURSEMENT Employee will be reimbursed up to $1000 each fiscal year (with the exception of books or fees). EMPLOYEE ASSISTANCE PROGRAM (EAP) The EAP program is available to current employees, spouses & eligible dependents. O:\Benefits\NonwUnion Benefits revised 11/13/12 4