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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/2021 - ITEMS RELATING TO THE EMPLOYMENT AGREEMENTS OF THE Agenda Item 23 Item # 23 Page 1 AGENDA ITEM SUMMARY December 7, 2021 City Council STAFF Karen Burke, Human Resources Director Jenny Lopez Filkins, Legal SUBJECT Items Relating to the Employment Agreements of the City Attorney and Chief Judge. EXECUTIVE SUMMARY A. Resolution 2021-116 Authorizing the First Addendum to City Attorney Carrie Daggett’s Employment Agreement. B. Resolution 2021-117 Authorizing the First Addendum to Chief Judge Jill Hueser’s Employment Agreement. The purpose of this item is to make amendments to the employment agreements of the City Attorney and Chief Judge relating to the City’s ICMA-RC retirement plan recordkeeper. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions. BACKGROUND / DISCUSSION On October 5, 2021, City Council adopted Resolution 2021-090, authorizing the execution of retirement plan adoption agreements to finalize plan changes to the 457(b) deferred compensation plan and service area directors and Council employees 401(a) plan (“Retirement Accounts”). Such changes shifted the City’s matching contribution for the City Attorney and Chief Judge from the City -sponsored 457 plan to the service area directors and Council employees 401(a) plan and do not increase City costs but allow City Attorney Daggett and Chief Judge Hueser to maximize their own contributions to their 457 plan accounts. These Resolutions will allow the changes to City Attorney Daggett and Chief Judge Hueser’s employment agreements to reflect amendments that were made to the Retirement Acco unts and correct the reference to the City’s retirement recordkeepers. In addition, Resolution 2021-117 shifts the timing of Chief Judge Hueser’s employment agreement to run from January 2022 to January 2024. By Charter the contracts for municipal judges have a two-year term. Chief Judge Hueser’s initial employment agreement began in July 2020, running to July 2022. The proposed shift puts the timing of her two-year agreement more in line with other employment-related actions. -1- RESOLUTION 2021-116 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE FIRST ADDENDUM TO CITY ATTORNEY CARRIE DAGGETT’S EMPLOYMENT AGREEMENT WHEREAS, pursuant to Article VI, Section 1 of the City Charter, the City Council is responsible for appointing the City Attorney; and WHEREAS, on March 17, 2015, the City Council appointed Carrie Daggett as City Attorney and approved Ms. Daggett’s employment agreement; and WHEREAS, Carrie Daggett’s employment agreement contains language referring to ICMA-RC as the City’s retirement plan recordkeeper; WHEREAS, with Resolution 2020-077, the City of Fort Collins transitioned to a different retirement plan recordkeeper and the City Council authorized execution of numerous retirement plan adoption agreements establishing retirement benefits for City employees, including Ms. Daggett; and WHEREAS, with Resolution 2021-090, the City Council authorized execution of retirement plan adoption agreements to finalize plan changes to the 457(b) deferred compensation plan and service area directors and Council employees 401(a) plan (“Retirement Accounts”); and WHEREAS, such changes shifted the City’s matching contribution for the City Attorney from the City-sponsored 457 plan to the service area directors and Council employees 401(a) plan; WHEREAS, such changes do not increase City costs but allow Ms. Daggett to maximize her own contributions to her 457 plan account; and WHEREAS, the City Council wishes to make changes to Ms. Daggett’s employment agreement to reflect amendments that were made to the Retirement Accounts and correct the reference to the City’s retirement recordkeepers. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the Mayor is hereby authorized to execute a First Addendum to Employment Agreement between the City and Carrie Daggett, attached hereto as Exhibit “A” and incorporated herein by reference, to correctly refer to the City’s retirement recordkeeper and -2- update pension and deferred compensation benefits section in accordance with retirement plan changes City Council previously approved effective October 1, 2021. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 7th day of December, A.D. 2021. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk FIRST ADDENDUM TO CITY ATTORNEY EMPLOYMENT AGREEMENT THIS FIRST AMENDMENT to Employment Agreement (the “Agreement”) is made and entered into this ___ day of December, 2021, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereinafter called the “City” and CARRIE M. DAGGETT, hereinafter called the “Employee”. WITNESSETH: WHEREAS, the City and Employee have previously entered into that certain Employment Agreement dated March 26, 2015 (hereinafter referred to as the “Agreement”); WHEREAS, The City and the Employee have recognized the need to amend the Agreement and have worked cooperatively to identify and address issues of mutual interest. NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, as well as other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree to amend the Agreement as follows: 1.Section 6. A. (1) is amended to read in its entirety as follows: (1)At any time during the term of this Agreement, but not more than twice annually, the Employee may elect to receive the cash equivalent of a portion of her accrued, unused vacation, based upon her then current rate of pay; provided, however, that no more than one hundred twenty (120) hours of accrued, unused vacation leave may be converted to a cash payment in any given calendar year. The amount of said payment shall be based upon the Employee’s current rate of pay at the time of conversion. To the extent permitted by law, Employee shall be entitled to direct that any such payment be deposited into the City’s 457 deferred compensation plan through the City’s retirement recordkeeper. 2.Section 6. A.(3) is amended to read in its entirety as follows: (3) Upon the cessation of the Employee’s employment with the City, whether by termination, death, disability, resignation or otherwise, the Employee shall be compensated by cash payment for the total amount of her accrued, unused vacation leave balance. The amount of said payment shall be based upon the Employee’s then current rate of pay. Any payment made to the Employee by the City under this provision shall be in addition to any amounts previously paid for accrued, unused vacation leave under subparagraph (2) above and any other amounts payable to the Employee under this Agreement. To the extent permitted by law, Employee shall be entitled to direct that any such payment be deposited EXHIBIT A into the City’s 457 deferred compensation plan through the City’s retirement recordkeeper. 3. Section 6. B. is amended to read in its entirety as follows: B. The parties acknowledge that Employee has accrued, or reasonably expects to accrue, a significant balance of vacation during the 2015 calendar year, in light of position vacancies in the City Attorney’s Office and extraordinary interim and transitional demands on her time. Accordingly, Employee may elect at any time during 2015 to receive a one-time payment of the cash equivalent of up to an additional one hundred and twenty (120) hours of accrued, unused vacation, in addition to that amount available to her pursuant to Section 6(A). The amount of said payment shall be based upon Employee’s 2015 rate of pay as interim City Attorney. To the extent permitted by law, Employee shall be entitled to direct that any such payment be deposited into the City’s 457 deferred compensation plan through the City’s retirement recordkeeper. 4. Section 8 is hereby amended to read in its entirety as follows: Section 8. PENSION AND DEFERRED COMPENSATION BENEFITS . The City agrees to execute all necessary agreements provided by the City’s retirement recordkeeper for Employee’s participation in a City-sponsored 401A qualified retirement plan, and, in addition to the base salary paid by the City to Employee, the City agrees to pay on Employee’s behalf an amount equal to ten percent (10%) of Employee’s base salary into such qualified retirement plan, in equally proportioned amounts each pay period, and, effective October 1, 2021, to make a matching contribution equal to 100% of the Employee’s elective deferrals that do not exceed 4.5% of her annual base salary. Notwithstanding the language of the Employee’s original employment agreement, since six months after the Employee’s employment started with the City in 1995, the City benefit available at that time allowed her to choose a 4.5% employee contribution, which the City matched. Since 1995, the terms of her employment have included a matching City contribution to her 457 account equal to 4.5% of her annual base salary. The City further agrees to roll over into another qualified retirement plan or to transfer Employee’s ownership in the 401A plan to her succeeding employer’s qualified plan upon Employee’s resignation or termination, to the extent such a rollover or transfer is allowed by law and the terms of the City’s plan. In addition, Employee is eligible to participate in the City’s 457 deferred compensation plan through its retirement recordkeeper. Except as set forth herein, the terms of the Agreement as amended by the First Addendum to Employment Agreement, shall remain in full force and effect. IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed on 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. EXHIBIT A THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation Date: By: Jeni Arndt, Mayor ATTEST: ________________________ City Clerk EMPLOYEE: _______________________________________ Carrie M. Daggett EXHIBIT A -1- RESOLUTION 2021-117 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE FIRST ADDENDUM TO CHIEF JUDGE JILL HUESER’S EMPLOYMENT AGREEMENT WHEREAS, pursuant to Article VII, Section 1 of the City Charter, the City Council is responsible for appointing the Chief Judge; and WHEREAS, with Resolution 2020-049, the City Council appointed Jill Hueser as Chief Judge and approved Ms. Hueser’s employment agreement; and WHEREAS, such appointment was effective July 6, 2020; and WHEREAS, with Resolution 2021-090, the City Council authorized execution of retirement plan adoption agreements to finalize plan changes to the 457(b) deferred compensation plan and service area directors and Council employees 401(a) plan (“Retirement Accounts”); and WHEREAS, such changes shifted the City’s matching contribution for the City Attorney from the City-sponsored 457 plan to the service area directors and Council employees 401(a) plan; WHEREAS, such changes do not increase City costs but allow Ms. Hueser to maximize her own contributions to her 457 plan account; and WHEREAS, the City Council wishes to make changes to Ms. Hueser’s employment agreement to reflect amendments that were made to the Retirement Accounts and correct the reference to the City’s retirement recordkeepers; and WHEREAS, the performance evaluation of the Chief Judge takes place toward the end of each calendar year and any pay adjustments would be effective the beginning of the following year; and WHEREAS, the term of Ms. Hueser’s employment agreement currently runs from July 6 2020 to July 5, 2022; and WHEREAS, the City Council wishes to make changes to Ms. Hueser’s employment agreement to reflect a term that runs from January 1, 2022 to January 1, 2024. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -2- Section 2. That the Mayor is hereby authorized to execute a First Addendum to Employment Agreement between the City and Jill Hueser, attached hereto as Exhibit “A” and incorporated herein by reference, to update the pension and deferred compensation benefits section in accordance with retirement plan changes City Council previousl y approved effective October 1, 2021, and to change the term of the agreement. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 7th day of December, A.D. 2021. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk FIRST ADDENDUM TO CHIEF JUDGE EMPLOYMENT AGREEMENT THIS FIRST ADDENDUM to Employment Agreement (the “Agreement”) is made and entered into this ___ day of December, 2021, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, hereinafter called the “City” and JILL HUESER, hereinafter called the “Employee”. WITNESSETH: WHEREAS, the City and Employee have previously entered into that certain Employment Agreement dated July 6, 2020 (hereinafter referred to as the “Agreement”); WHEREAS, the City and the Employee have recognized the need to amend the Agreement and have worked cooperatively to identify and address issues of mutual interest. NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements herein contained, as well as other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree to amend the Agreement as follows: 1.Section 2. B. is amended to read in its entirety as follows: B.The Employee agrees to remain in the exclusive employ of the City as Chief Judge from January 1, 2022 until January 1, 2024 and neither to seek or accept other employment nor to become employed by any other employer until after said termination date, unless the employment of the Employee is terminated earlier as herein provided. City Council may grant express permission for non-legal (non-attorney and non-judicial) employment that will not interfere with the duties of the Chief Judge by motion or in a writing, including any conditions or limitations on such other employment. 2.Section 8 is hereby amended to read in its entirety as follows: Section 8. PENSION AND DEFERRED COMPENSATION BENEFITS. The City agrees to execute all necessary agreements provided by the City’s retirement recordkeeper for Employee’s participation in a City-sponsored 401A qualified retirement plan, and, in addition to the base salary paid by the City to Employee, the City agrees to pay on Employee’s behalf an amount equal to ten percent (10%) of Employee’s base salary into such qualified retirement plan, in equally proportioned amounts each pay period. Effective October 1, 2021, the City agrees to make a matching contribution in the 401A plan equal to 100% of the Employee’s elective deferrals that do not exceed 3% of her annual base salary. The City further agrees to roll over into another qualified retirement plan or to transfer Employee’s ownership in the 401A plan to her succeeding employer’s qualified plan upon Employee’s resignation or EXHIBIT A termination, to the extent such a rollover or transfer is allowed by law and the terms of the City’s plan. In addition, Employee is eligible to participate in the City’s 457 deferred compensation plan through its retirement recordkeeper. Except as set forth herein, the terms of the Agreement as amended by the First Addendum to Employment Agreement, shall remain in full force and effect. IN WITNESS WHEREOF, the City has caused this Agreement to be signed and executed on 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. THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation Date: By: Jeni Arndt, Mayor ATTEST: ________________________ Interim City Clerk EMPLOYEE: _______________________________________ Jill Hueser EXHIBIT A