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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/02/2001 - ITEMS RELATING TO THE EMPLOYMENT CONTRACTS OF THE AGENDA ITEM SUMMARY ITEM NUMBER: 25 A-C DATE: January 2, 2001 FORT COLLINS CITY COUNCIL FROM: Rick DeLaCastro SUBJECT : Items Relating to the Employment Contracts of the City Manager, City Attorney and Municipal Judge. RECOMMENDATION: Staff recommends adoption of the Resolutions. i EXECUTIVE SUMMARY: A. Resolution 2001-2 Authorizing the Mayor to Execute a Third Addendum to the City's Employment Agreement with John F.Fischbach as City Manager of the City of Fort Collins. B. Resolution 2001-3 Authorizing the Mayor to Execute a Third Addendum to the City's Employment Agreement with Stephen J. Roy as City Attorney of the City of Fort Collins. C. Resolution 2001-4 Authorizing the Mayor to Execute a Fourth Addendum to the City'ss Employment Agreement with Kathleen M. Lane as Municipal Judge of the City of Fort Collins. During this year's performance reviews, the City Manager, City Attorney and Municipal Judge discussed with the Council the possibility of certain changes to their employment contracts. Adoption of the Resolutions would approve an addendum to each contract making those changes, as summarized below. BACKGROUND: The City Manager, City Attorney and Municipal Judge are employed directly by the City Council, and the terms and conditions of their employment are spelled out in employment agreements for each employee. During their performance reviews this year, each of the employees discussed with the Council possible changes to their employment contracts. The proposed changes for each of the contracts are summarized below. Adoption of the Resolutions would approve those changes. THE CITY MANAGER'S CONTRACT: * The section dealing with vacation pay has been changed so as to: (a) reduce the maximum number of unused hours that can be accrued from 1040 to 780; (b) allow all or any portion of accrued, unused vacation pay to be converted to a cash payment in 2001; and (c) allow in DATE: January 2, 2001 2 ITEM NUMBER: 25 A-C subsequent years up to 40 hours to be converted to cash and an additional 40 hours to be carried over to the following year, subject to the maximum of 780 hours. * The section dealing with severance pay has been changed to increase the amount of severance pay to the cash equivalent of six months'salary. The six months'severance pay would be due only if the City Manager was terminated without cause as defined in the contract. Severance pay would not be payable if the City Manager resigned or was terminated for cause. * A new section has been added under which the Council agrees to make any amendments to the City Manager's 401A pension plan that might be necessary in order to allow the City Manager to make contributions to that plan. * A TABOR provision has been added which states that all financial obligations of the City under the agreement are subject to the annual appropriation of the necessary funds. THE CITY ATTORNEYS CONTRACT: * The term of the agreement has been changed from "rolling" two-year terms to a term of indefinite duration, with the understanding that the City Attorney serves at the pleasure of the Council and can be terminated at any time with or without cause. * Existing liquidated damages provisions pertaining to inadequate notice of termination or resignation have been eliminated. * The section dealing with vacation pay has been changed so as to: (a) reduce the maximum number of unused hours that can be accrued from 1040 to 780; (b) allow all or any portion of accrued, unused vacation pay to be converted to a cash payment in 2001; and (c) allow in subsequent years up to 40 hours to be converted to cash and an additional 40 hours to be carried over to the following year, subject to the maximum of 780 hours. * The section dealing with severance pay has been changed to increase the amount of severance pay to the cash equivalent of six months' salary. The six months' severance pay would be due only if the City Attorney was terminated without cause as defined in the contract. (A provision has been added to the contract defining "cause" in the same way as that term is defined in the City Manager's contract.) Severance pay would not be payable if the City Attorney resigned or was terminated for cause. * A new section has been added under which the Council agrees to make any amendments to the City Attorney's 401 A pension plan that might be necessary in order to allow the City Attorney to make contributions to that plan. * A TABOR provision has been added which states that all financial obligations of the City under the agreement are subject to the annual appropriation of the necessary funds. THE MUNICH'AL JUDGE'S CONTRACT: * Since the Municipal Judge's contract is required by the City Charter to be for a definite term, the first change to her contract extends that term through 2002. Y a r a.L DATE: January 2, 2001 3 ITEM NUMBER: * The residency requirement contained in the contract has been deleted, since that requirement was removed from the City Charter by the voters in 1997. * The section dealing with the timing of the Judge's salary review has been changed so as to state that the review will occur in November or December of each year,rather than June of each year. * The section dealing with vacation pay has been changed so as to: (a) reduce the maximum number of unused hours that can be accrued from 1040 to 780; (b) allow all or any portion of accrued, unused vacation pay to be converted to a cash payment in 2001; and (c) allow in subsequent years up to 40 hours to be converted to cash and an additional 40 hours to be carried over to the following year, subject to the maximum of 780 hours. * No severance pay provision has been added to the Municipal Judge's contract because the Judge's contract is for a definite term and she can be terminated only for cause. * A new section has been added under which the Council agrees to make any amendments to the Judge's 401 A pension plan that might be necessary in order to allow her to make contributions to that plan. * A TABOR provision has been added which states that all financial obligations of the City under the agreement are subject to the annual appropriation of the necessary funds. RESOLUTION 2001-2 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE A THIRD ADDENDUM TO THE CITY'S EMPLOYMENT AGREEMENT WITH JOHN F. FISCHBACH AS CITY MANAGER OF THE CITY OF FORT COLLINS WHEREAS, the City and John F. Fischbach (the "City Manager") have previously entered into that certain City Manager Employment Agreement dated June 22, 1995 (hereinafter referred to as "the Employment Agreement"), and have also entered into two addenda to the Employment Agreement dated December 14, 1995, and December 19, 1995 respectively; and WHEREAS, the City and the City Manager have agreed upon certain additional modifications to the Employment Agreement which they wish to set forth in a Third Addendum to the Employment Agreement. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the changes proposed to the City Manager's Employment Agreement, as shown on Exhibit "A", attached hereto and incorporated herein by this reference, are hereby approved by the Council. Section 2. That the Mayor is hereby authorized to execute on behalf of the City the Third Addendum to the City Manager's Employment Agreement in the form shown on said Exhibit "A". Passed and adopted at a regular meeting of the City Council held this 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk . EXHIBIT A THIRD ADDENDUM TO CITY MANAGER EMPLOYMENT AGREEMENT THIS THIRD ADDENDUM is made and entered into this—day of January,2001,by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (hereinafter referred to as the "City") and JOHN F. FISCHBACH (hereinafter referred to as "Fischbach"). WITNESSETH: WHEREAS,the City and Fischbach have previously entered into that certain City Manager Employment Agreement dated June 22, 1995 (hereinafter referred to as "the Employment Agreement'), and have also entered into two addenda to the Employment Agreement dated December 14,1995, and December 19, 1995 respectively; and WHEREAS,the City and Fischbach have agreed upon certain additional modifications to the Employment Agreement which they wish to set forth in this Third Addendum to the Employment Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree to amend the terms and conditions of the Employment Agreement as follows: I. That Section N.A. of the Employment Agreement shall be amended so that said Section IV reads in its entirety as follows: SECTION IV. VACATION AND SICK LEAVE. A. Fischbach shall be granted twenty five(25)=cla ,Qfi yacatian leave each year. Five (5)days,of sttch vacation leave shall be credltW to FtsGktbacft as of the ferstfull pay period of each year. The remain ba�x�ic` f enty tfj days shall acciiie th>ougfiout the rematnder of each st�� Airaccrual rate ofAlipui§. Nativiflsrifatiding ariy .� Va hod Is ave accrued ,`mused by,Fischbach tall stt ') .,. .ftYe ttttovktng t ttns and candit3oris shall be credited to Fischbach iL =tiye date of his 1ILLPIVYLLM11, • vacation leave paid to Fischbach shall not=md a total of 1,646 houts. hb�ma an { a C r t a. riz WIWI fam o I80 CtUXlneach bas. ; $then c 6 Pit e a thazoity (40j' of ccrued,un ,vacati' ,. con ,'rte as `payment in any giit ca(endaf year (4) Upab�the cessatio"f Ftschbach S emplaymentvwith the City, whether by termination,dew,disabtty,Yestpnattonor otherwise,Fischbach shad becompattsatedbycashpay ntfortheto amonntofhisaccncec,uriusedvacation leave balatice. The am'It of said}taj of shall be i aaed awn Ftsr hbach'i4hen curretf raie of pay Any patent made taschbacti under this ravtsion shall be in ai �anT amo �viogslyp pi accrued,,nn#ased vacation leave under su JO _ O (3)above an 'any oth it�unts a a le under tCSis Agreement. B. Fischbach shall be credited for and be entitled to receive those sick leave benefits provided to all full-time classified City employees. Fischbach shall not be entitled to be paid for any earned but unused sick leave upon resignation or termination from employment under this Agreement. 2. That Section VI of the Employment Agreement shall be amended by the addition of a new subsection B, so that said Section VI shall read in its entirety as follows: Page 2 of 6 SECTION VI. PENSION AND DEFERRED COMPENSATION BENEFIT A The City agrees to execute all necessary agreements provided by the International City Nfanagers Mana �� ,Association Retirement Corporation (hereinafter referred to as "ICMA-RC")for Fischbach's participation in ICMA-RC's 401A qualified retirement plan, and, in addition to the base salary paid by the City to Fischbach, the City agrees to pay on Fischbach's behalf an amount equal to ten percent (10%) of Fischbach's base salary into such ualtfied retirement plan, in equal proportioned amounts each pay period, and 1' 11 .1 Ito roll over into another qualified retirement plan;or to transfer Fischbach's ownership in the plan to his succeeding employer's qualified plan; upon Fischbach's resignation or termination; to the extent'f `'such a rollover or transfer is allowed by law and the terms of the City's plan. In addition,Fischbach is eligible to participate in the City's 457deferred compensation plan through ICMA-RC. Itt such event06 111111M,the City will match Fischbach's contribution to the plan in an amount not to exceed three percent (3%) of Fischbach's salary in any one pay period. The total contribution to ICMA-RC's 457 deferred compensation plan is subject to the limits prescribed by the Internal Revenue Service. B In the eve tsch }%> es tom ctinttt u on A his own tb a {sIT a a m4o ffi6 City's eoritnlxt o said an iY tnotf t wnUnA, the Co6xridt� �thut.F. 0 eti ttiS' t dkdcute all in order s acco ti odate s ' hest ` a c{itit9, utig to said plan authpr zerT�y the Co shall ba ftte> ,ted by FJ h or the maximum amotint allowed lid law,whichever is,Iesg 3. That Section XIII.D. of the Employment Agreement shall be amended so that said Section XHI shall read in its entirety as follows: SECTION XIII. TERMINATION AND SEVERANCE PAY A. Pursuant to Section 4 of Article III of the City Charter,Fischbach, as an unclassified City employee,shall be considered as an at-will employee under this Agreement and, therefore, the Council may remove Fischbach from his position as City Manager at any time with or without cause in accordance with the method set forth in Section 4 of Article III of the City Charter. B. In the event that Fischbach is removed from his position as City Manager by the Council for "cause" in accordance with the method set forth in Section 4 of Article III of the City Charter, Fischbach shall only be entitled to such compensation as is required to be paid to him under Section 4 of Article III of the Page 3 of 6 City Charter. As used in this Section XIII, the word"cause" shall mean: (1)failure of Fischbach to carry out his duties under this Agreement after written notice from the Council; (2) failure of Fischbach to desist from any act or omission believed by the Council to be contrary to the best interests of the City after written notice to Fischbach to desist; (3) conviction of a felony or a crime of moral turpitude; (4) dishonesty towards,fraud upon,or deliberate injury or attempted injury to the City; (5) the breach by Fischbach of a term or condition of this Agreement; (6) any physical or mental disability that substantially limits a major life function of Fischbach and that results in his inability to carry out any essential function of his job as City Manager,with or without reasonable accommodations by the City,provided that Fischbach's disability entitles him to receive benefits under the City's disability plan or,if the disability is the result of a work-related injury,entitles him to benefits under the Colorado workers'compensation laws for being permanently and totally disabled. C. In the event that Fischbach voluntarily resigns from his employment with the City under this Agreement, Fischbach shall not be entitled to receive any further compensation from the City accruing after the effective date of his resignation. Fischbach shall, however, be entitled to receive from the City all compensation and benefits that have accrued to him under this Agreement up to the effective date of his resignation. _y D. In the evert �Fisch r tnov is P s n as City ix i t4 of �u• *rr i�4+ sZix w .. W z o be City Ch or er pause" , ended in Sectttsn XIII B above,tote fat' all; a payll,l nue to pay iselibach hts�then current salary one bi eeklysa erio$ct�txi f6)motihlromthe effi cttve date of his removal Said amounft,s ail be in lief oY and not in addition to, the'amount of compensutton required to l :paid to Fisci 'ikli under Section 4 of Article III of the City Charter:In the event tlft th+ City afaii time during the term of thig:Agreement reduces the salary or.of r nancial"behalts of Fischbach in a greater percentage than is' ap(ilicable tta �data reduction for all employees of2he Ciry,of in the event that Che City fefuse ididwmg wrrtteti notice, tolyithany of°eYpronsion betiaiftri TPisc erem, or Fischbach re'sr [iafollovagwritten'itkitrciomtlte �rCiiiftexy 8'othertat`forcause as descrtbed tasubparagraph hbove,thezf blibach m8yx dt his optioii,fbd deemed to sva been terminates ley the Couit ik Y tltotXt cau -pr the purposetsktif this Section,m which event Fischbach shall, i t�itlerl to ttie LW_ far ce pay Rrc tyiued for above: fik eity ehatte. for any reason othe, than fo, "cause" � defined in SletiVII HIE& Page 4 of 6 titne that lie would be entitled to receive his saimy ande, Section 4 of*,ticle fff v obtains othet �L111JIVYIneLit dt?,ilLr, ally period fo, wirkh lie is entitled ande, this E. Whether Fischbach voluntarily resigns from his position as City Manager under this Agreement or is removed from his position by the Council with or without cause,Fischbach shall retain all rights and benefits that may have accrued to him under any of the benefit, pension, or deferred compensation plans provided to him under this Agreement and that he is entitled to retain in accordance with the provisions of such plans and applicable law as any City employee who has resigned or been terminated from employment with the City would be entitled to retain. F Medical insurance shall be provtde4 t4r4Ct t th 1d of the month in AAi which the tettiiiiation ofttrs. Fischbach ajaj�effect tY tl►e� btrnne coverage by peat;4he.ypremium?It effeet,at the ttme?of terq�ttahon under the same terms and Co ,�a"ccordtt lcr the same roVi51ot4� sEw wlI Clt' ktepkicahle to al! erxip ` ' i# Ctty whb,upon temunatiQp,eEscGZ Connue'ttedcal ecrveiage at their own expense. 4. That a new Section XXII of the Employment Agreement shall be added to said Agreement, which Section XXII shall read in its entirety as follows: • Page 5 of 6 --�"4N fto 07 e C — " - W10011;14- 004"w 5. Except as expressly amended by this Third Addendum and the previously executed First Addendum and Second Addendum, all other terms and conditions of the Employment Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF,the parties hereto have caused this Third Addendum to the City Manager Employment Agreement to be executed as of the day and year first above written. THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation By: Mayor ATTEST: City Clerk APPROVED AS TO FORM: Attorney John F. Fischbach Page 6 of 6 RESOLUTION 2001-3 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE A THIRD ADDENDUM TO THE CITY'S EMPLOYMENT AGREEMENT WITH STEPHEN J. ROY AS CITY ATTORNEY OF THE CITY OF FORT COLLINS WHEREAS,the City and Stephen J.Roy(the"City Attorney")have previously entered into that certain Agreement dated December 17, 1991 (hereinafter referred to as "the Employment Agreement"),and have also entered into two addenda to the Employment Agreement dated January 19, 1995, and March 8, 1996, respectively; and WHEREAS, the City and the City Attorney have agreed upon certain additional modifications to the Employment Agreement which they wish to set forth in a Third Addendum to the Employment Agreement. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the changes proposed to the City Attorney's Employment Agreement, as shown on Exhibit "A", attached hereto and incorporated herein by this reference, are hereby approved by the Council. Section 2. That the Mayor is hereby authorized to execute on behalf of the City the Third Addendum to the City Attorney's Employment Agreement in the form shown on said Exhibit "A". Passed and adopted at a regular meeting of the City Council held this 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk • RESOLUTION 20014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE A FOURTH ADDENDUM TO THE CITY'S EMPLOYMENT AGREEMENT WITH KATHLEEN M. LANE AS MUNICIPAL JUDGE OF THE CITY OF FORT COLLINS WHEREAS,the City and Kathleen M.Lane(the"Municipal Judge")have previously entered into that certain Agreement dated July 31, 1989 (hereinafter referred to as "the Employment Agreement"), and have also entered into three addenda to the Agreement dated June 19, 1991; January 23, 1995; and December 31, 1996, respectively; and WHEREAS, the City and the Municipal Judge have agreed upon certain additional modifications to the Agreement which they wish to set forth in a Fourth Addendum to the Agreement. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the changes proposed to the Municipal Judge's Employment Agreement, as shown on Exhibit "A", attached hereto and incorporated herein by this reference, are hereby approved by the Council. • Section 2. That the Mayor is hereby authorized to execute on behalf of the City the Fourth Addendum to the Municipal Judge's Employment Agreement in the form shown on said Exhibit "A". Passed and adopted at a regular meeting of the City Council held this 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk • EXHIBIT A FOURTH ADDENDUM TO MUNICIPAL JUDGE EMPLOYMENT AGREEMENT THIS FOURTH ADDENDUM is made and entered into this_day of January, 2001, by and between THE CITY OF FORT COLLINS,COLORADO,a municipal corporation(hereinafter referred to as the "City") and KATHLEEN M. LANE (hereinafter referred to as "the Employee"). WITNESSETH: WHEREAS,the City and the Employee have previously entered into that certain Agreement dated July 31, 1989(hereinafter referred to as"the Employment Agreement'),and have also entered into three addenda to the Agreement dated June 19, 1991;January 23, 1995;and December 31, 1996, respectively; and WHEREAS, the City and the Employee have agreed upon certain additional modifications to the Agreement which they wish to set forth in this Fourth Addendum to the Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree to amend the terms and conditions of the Employment Agreement as follows: 1. That Section 2. B. and 2.C. of the Employment Agreement are hereby amended so that Section 2.13. reads in its entirety as follows, and Section 2.C. is deleted: 2. TERM. B. The Employee agrees to remain in the exclusive employ of the City as Municipal Judge until December 31, 2002, 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. eh.ter. 2. That Section 3.D. of the Employment Agreement is hereby amended so as to read in its entirety as follows: 3. SALARY. D. A salary review shall take place in 3tmeNq t f Of DGeetnEYer,of each year,with any subsequent modification of the Employee's salary to be approved by the City Council by ordinance. 3. That Section 6.of the Employment Agreement is hereby amended so as to read in its entirety as follows: shall be panted twerity-five (25) days of MatiOn leave each yew. 6. IVAEARON. As an inducement of the Ernployee, the Employee h} a t� of het � n a'e ennt o r` litsh upon7ieraurrent rate o�f p a the' f a of eonver t th� nd of 2001 the balaztce of the 1✓trilStoyee§acerlied,unused`vaca aihing after anya Cash:conversion ahall be carrted der tt�10©2 and suequent years,up to a ntatttymutri accrual of 78©hours Startink in 200I,'hny balance in excess of 780 hours that exists as of the lasf day of the final pay period of the calendar year shall be forfeited`by the Einploee. For the pnpases}off this provisioh,the "final pay period of tfie calendar year shall m6an the last pay period that begins in such year. (2) At the end of �00t and at the end ot.each calendar year thereafter;the Employee may also carry over to the ensuing cat eiielar year up to forty (40) hours of any vacation leave accrued in that year that was neither used nor converted to a cash payment under subparagraph(3)below,subject to the maximum of7 Minis (3) At any time during 2002, and at any, time during each successive;calendar year thereafter,but no more thaii,twice annually,di'e Employee mayalect to receive the cash equivalent of a portion of her accrued,unused vacation, based upon her then current rate of-gay provttfezl,however,tli>t no,niore than forty Page 2 of 5 e�`a C"t..tci c"sfy"•'` i. ` '" Ypt ' 3`S . � u man lea 3� Y t4� Calp nd jJ th tote n w i B. The Employee shall be credited for and be entitled to receive those sick leave benefits provided to all full-time classified City employees. The Employee shall not be entitled to be paid for any earned but unused sick leave upon resignation or termination from employment under this Agreement. 4. That Section 8 of the Employment Agreement shall be amended by the addition of a new subsection B, so that said Section 8 shall read in its entirety as follows: Re Letil�ILIVIlt plaLl and, iLl addition to the base saimy paid by tile EILLPiOYCL tU tile allIOU11t L10t to exceed three percent(3%)of the Empioyee's salary in any pay petiod. The total couttibution is subject to the fixtrits ptesc,ibed by the i.R.S. SECTION S. PENSION AND DEFERRED COMPENSATION BENEFITS A. The City agrees to execute all necessary agreements provided by the International City Management Association Retirement Corporation'(hereinafter referred to as "ICMA-RC") for the Employee's"participation in ICMA-RCs 401 A qualified retirement plan, and,in addition to the base salary paid by the'City to the • Page 3 of 5 4 e s P�3 e ,ote a� 5. That a new Section 16 of the Employment Agreement shall be added to read in its entirety as follows: SECY'ION T6i' ATVN�i#LA"��"# P�R ¢"`�TON All finaricial obligations of h'e'C t s t [ie sybtect,to the Council's annual appropriation of the nec®si;ar _d atisfy such obligations. 6. Except as expressly amended by this Third Addendum and the previous First Addendum and Second Addendum, all other terms and conditions of the Employment Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Third Addendum to the Municipal Judge Employment Agreement to be executed as of the day and year first above written. Page 4 of 5 . ., <fis�•3uTueur r ..,y THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation By: Mayor ATTEST: City Clerk APPROVED AS TO FORM: Attorney Kathleen M. Lane 10 Page 5 of 5