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HomeMy WebLinkAbout2014.06.23 Council Special Meeting PacketAGENDA PASCO CITY COUNCIL Special Meeting 7:00 p.m. June 23, 2014 1. CALL TO ORDER 2. ROLL CALL (a) Pledge of Allegiance. 3. BUSINESS ITEMS (a) Approval of Professional Services Agreement for new City Manager: 1. Agenda Report from Stan Strebel, Deputy City Manager dated June 19, 2014. 2. Approval of Professional Services Agreement for new City Manager - Proposed Agreement. MOTION: I move to approve the Professional Services Agreement with Dave Zabell for the position of City Manager, and further, authorize the Mayor to sign the agreement. 4. ADJOURNMENT AGENDA REPORT FOR: City Counci TO: Gary Crutch a Manager FROM: Stan Strebel, D uty City Manage, SUBJECT: Professional Services Agreement for new City Manager I. REFERENCE(S): 1. Proposed Agreement June 19, 2014 Special Meeting: 6/23/14 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: 6/23: MOTION: I move to approve the Professional Services Agreement with Dave Zabell for the position of City manager, and further, authorize the Mayor to sign the agreement. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) On June 16 the Council approved a motion appointing Dave Zabell as City Manager pending negotiation of an employment agreement. B) The attached proposed agreement incorporates the terms discussed and conceptually agreed to between the Council and Mr. Zabell. C) Mr. Zabell has indicated his acceptance of the agreement; however, at the time of this writing, he was awaiting final review by his legal advisor. His intent to begin employment is effective August 25, 2014. D) Staff recommends Council approval of the agreement. 3(a) PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PASCO AND DAVE ZABELL FOR POSITION OF CITY MANAGER THIS AGREEMENT is made this date between the City of Pasco, hereinafter referred to as "City" and Dave Zabell, hereinafter referred to as "Manager ". WHEREAS, the City of Pasco in a non - charter, optional municipal code city organized under the council- manager form of government; and WHEREAS, the City desires to contract with Dave Zabell to serve as City Manager, and said Dave Zabell desires to accept the position as the City Manager for the City of Pasco, NOW, THEREFORE, in consideration of the mutual benefits to be derived, the parties hereby agree as follows: 1. Commencement of Services. The City agrees to employ Manager, and Manager agrees to accept the position of City Manager for the City of Pasco in accordance with the terms and conditions of this Agreement. 2. Term. This Agreement shall be effective as specified herein, upon approval by the City Council and Manager, and shall continue until terminated as provided by law, or by the provisions of this Agreement. 3. Duties. Manager shall perform all duties and obligations of the City Manager as required by law, and such other duties as are assigned from time to time by the City Council. Manager shall attend all special and regular meetings of the City Council, unless excused, and such other meetings as required by the City Council. 4. Smear . Manager shall be paid a starting salary of $175,000.00 per year which shall be paid in accordance with the procedures for other employees of the City. Manager shall be paid such annual cost -of- living increases as are paid to all other management employees of the City, and other adjustments deemed appropriate by the City Council in its sole discretion 5. Benefits. A. Except as modified herein, fringe benefits shall be provided to Manager as defined in the document, Benefits Summary - Department Directors (12/1/13), attached hereto as Exhibit "A ", and as hereafter amended. (1) Vacation. Manager shall accrue vacation time at a rate of twenty five (25) days (200 hours) per year with a starting balance of 5 days, which is the equivalent of forty (40) hours. For the first five years of this agreement the maximum accrual cap for vacation time will be 400 hours; thereafter the cap shall be 1.5 times the annual rate of accrual, or as otherwise provided to all management employees. (2) Sick Leave. Manager shall accrue sick leave at a rate of eight (8) hours per calendar month of employment with a starting balance of five (5) days, which is the equivalent of forty (40) hours. (3) Leave Use Restriction. The City grants a waiver of the six - month, non -use of accrued vacation and sick leave restriction, as provided for in the Municipal Code. Manager may use accrued leave in his discretion. (4) Medical. The City will provide and pay a portion of the cost of the medical, optical and dental benefits under the City's health plan for Manager, consistent with other City management employees. (5) Employee Insurance Benefits. The City shall provide employee insurance benefits for Manager in the same manner as other City management employees. (6) Deferred Compensation. The Manager shall be allowed to participate in the City's deferred compensation plan and the City will contribute an amount equivalent to 8% of Manager's annual salary in a 401k/457 retirement account of Manager's choosing. (7) Retirement Svstem. The City will contribute the employer's portion of contributions for employee's enrollment in the Washington State PERS retirement plan. (8) Professional Development. The City will pay dues for Manager's membership in a civic organization such as Rotary, Kiwanis or Lions. The City will also provide paid attendance to the Washington City/County Managers Association's two annual conferences and to the International City Manager Association conference, as budgeted funds allow. The City will also pay annual membership dues to Washington City/County Managers Association, the International City Manager Association and the American Public Works Association. (9) Auto Allowance. The City will provide an auto allowance of $500.00 per month effective September 1, 2014, to be applied consistent with City policy. 7 (10) Relocation and Moving Allowance. Manager understands that City of Pasco residency is required for the position of Manager. Therefore, the City agrees to provide a lump sum moving and relocation allowance, payable within 30 days of the effective date of this agreement, in the amount of $15,000.00, to help defray the costs of Manager's establishing residency in Pasco. In the event that Manager voluntarily resigns his position, or is terminated "for cause," within three years of the effective date of this agreement, Manager will repay the relocation and moving allowance on a pro -rated basis, based on the time of service, to the City. (11) Residency Requirement. Manager shall establish, at least temporary residency, pursuant to the requirements of RCW 35A.13.050, within 60 days of the effective date of this agreement. B. Other Benefits. Except as specifically provided in this Agreement, Manager shall not be entitled to any benefits provided or otherwise granted to other City management employees. 6. Outside Activities. The employment provided by this Agreement shall be Manager's sole employment and Manager shall devote his full time and best efforts to the position of City Manager. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the City and the community, Manager, with prior approval by the City Council, may elect to accept limited teaching, consulting or other business opportunities so long as such arrangements shall not constitute interference with or a conflict of interest with the responsibilities under this Agreement. Said activities are expressly allowed, provided that in no case is any activity allowed which would present a conflict of interest with the City of Pasco. In the event overnight travel is required for such non - Employer related business, the City Council shall be notified in advance. De minimis use of City equipment for such personal purpose is hereby authorized. 7. Performance Review. Except as otherwise directed by the City Council, Manager's job performance shall be reviewed after the first six (6) months and first year of employment. Thereafter employment evaluations shall be conducted annually on or about the anniversary date of the Manager's commencement of employment with the City or as otherwise provided by ordinance, resolution, policy or directive of the City Council. Performance evaluations may be facilitated by a third party with the participation of the City Council. 8. Termination. A. By the City. The parties recognize and acknowledge that Manager is an "at will" employee and agree that the City Council may terminate him/her with or without cause at any time and for any reason. Any termination action taken bythe City shall be subject to the notice period required by state law (RCW35A.13.130 and RCW 35A.13.140, as may be amended). 3 B. Termination Pay. (1) In the event the City Council elects to terminate Manager for any reason other than "just cause," Manager shall receive a severance pay and benefits package, equivalent to the pay and benefits as set forth in Sections 4 and 5 above, for a period of six months, which will be paid consistent with the City's regular pay periods. Provided, that said sum(s) shall be subject to applicable federal withholding taxes, if any. No benefits shall be paid or accrue during the severance payment period. Provided, further, that if Manager is successful in finding a similar full -rime position, at equal or greater, pay and benefits, during the severance payment period, the severance payments will cease. If Manager is successful in finding a similar full -time position, at lesser pay and benefits, severance pay and benefits payments, equivalent only to the difference in pay and benefits packages, will be payable. In consideration and as a precondition of said payment, Manager shall execute a release in a form approved by the City Attorney of any and all claims against the City, its elected or appointed officers, employees or agents, for any claims arising out of Manager's employment and/or Manager's termination of employment with the City. (2) If Manager is terminated for "just cause ", then Manager shall not be entitled to any severance or termination pay. "Just cause" for purposes of this Agreement means misconduct, including but not limited to commission of a criminal act, neglect of duty, violation of written or oral directives of the City Council, violation of any rules, regulations, policies or procedures of the City, sexual or other discriminatory harassment in violation of state or federal anti - discrimination law, malfeasance or misfeasance, any conduct that would have an adverse effect upon the performance of the Manager's duties or reflect detrimentally upon the City, or any other just cause supported and consistent with Washington law. C. Termination by Manager. In the event Manager elects to terminate his employment with the City for any reason, Manager agrees to attempt to provide the City with not less than sixty (60) days' notice prior to the effective date of said termination of employment. Notwithstanding the foregoing notice requirement, nothing shall prevent the City Council, upon receiving Manager's notice of intent, from releasing the Manager prior to the expiration of said notice. hi the event that City initiates the early release, it agrees to make payment of a sum equal to the value of pay and benefits, as set forth in Sections 4 and 5 above, for the balance of the sixty (60) day period. In the event the Manager initiates the early release, he shall not be entitled to payments for the time beyond his final work date, unless the parties agree otherwise. 9. Integration. This agreement constitutes the entire agreement between the parties, and both parties acknowledge that there are no other agreements, oral or otherwise, that have not been fully set forth in the text of this Agreement. 4 10. Modification. The parties agree that this Agreement can be amended or modified only with the written concurrence of both parties. 11. Notices. Any notice required to be given under this Agreement shall be delivered or mailed to the following parties at the following addresses: THE CITY OF PASCO Attn: Office of the Mayor P. O. Box 293 525 N 3'a Avenue Pasco, WA 99301 CITY MANAGER Attn: City Manager P. O. Box 293 525 N 3'd Avenue Pasco, WA 99301 Notices may be delivered either personally to the addressee of the notice, or may be deposited in the United States mail, postage prepaid to the address set forth above. Any notice so posted in the United States mail shall be deemed received three (3) days after the date of mailing. 12. Authorization of Facsimile Conies. Both parties agree that upon Manager signing a facsimile copy of this Agreement, transmitting the same to the City, and upon the Mayor signing said facsimile copy, that both parties shall be bound by the terms and provisions of this Agreement. Both parties shall subsequently execute the original, non - facsimile copies of this Agreement which shall be substituted for the signed facsimile copy. 13. Effective Date. All compensation and benefits under this Agreement shall begin to accrue as of Manager's actual start date, currently anticipated to be August 25, 2014, which shall be the effective date of this Agreement. 14. General Provisions. Failure to enforce any provision of this agreement shall not constitute waiver of said provision. This agreement represents the entire agreement between the parties. Should any dispute arise concerning the enforcement, breach or interpretation of this Agreement, the parties shall first meet in a good faith attempt to resolve the dispute. Any unresolved dispute shall be submitted to arbitration. The dispute shall be submitted to a single arbitrator mutually agreed by the parties. If the parties are unable to agree, the arbitrator shall be determined by the Franklin County Superior Court, and arbitration shall be conducted pursuant to RCW 7.04A, with both parties waiving the right to jury trial in the event of a de novo appeal. Arbitration shall be conducted in Pasco, Franklin County, Washington, and the costs of the arbitration shall be equally borne by the parties, and the arbitrator shall award, as additional judgment against the other, attorney's fees and costs to the prevailing party. DATED this day of July, 2014. CITY OF PASCO: Its: Mayor Attest / Authenticated: By: DAVE ZABELL: