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HomeMy WebLinkAboutMcKinney Comprenhensive Employment Agreement 121511 COMPREHENSIVE EMPLOYMENT AGREEMENT FOR WADE G. McKINNEY CITY MANAGER CITY OF ATASCADERO AS OF DECEMBER 15, 2011 1 TABLE OF CONTENTS 1. Table of Contents 2 2. Executive Summary of Benefits 3 3. Revised Employment Agreement 5 Dated September 25, 2001 4. Employment Agreement Amendment Number One 11 Dated October 14, 2003 5. Employment Agreement Amendment Number Two 13 Dated July 27, 2004 6. Employment Agreement Amendment Number Three 14 Dated October 25, 2005 7. Employment Agreement Amendment Number Four 15 Dated December 15, 2011 2 SUMMARY OF PROVISIONS CONTAINED IN EMPLOYMENT AGREEMENT OF WADE G. MC KINNEY Wade G. McKinney was appointed City Manager of Atascadero on July 16, 1997. His initial contract was replaced by a subsequent agreement dated September 21, 2001 which is included in this Comprehensive Employment Agreement. The 2001 agreement was amended by addendum four times, and each is also included in this Comprehensive Employment Agreement. The 2001 agreement and the addendums represent the entire employment agreement for the City Manager. This summary provides an overview of all of the major provisions contained in the City Manager's entire employment agreement. SALARY ® The City pays the City Manager$13,097.75 per month for his services. BENEFITS ® Receives all benefits provided to the City's management employees: o Health Insurance fully paid for the employee, half of premium paid for family, value of$1,163.02 per month. 0 95.94 hours (10 days) of sick leave per year. 0 80 (9 days) hours administrative leave per year. • Additionally, Mr. McKinney receives: 0 280 hours (31 days) of vacation per year. o An automobile allowance of$500.00 per month. o A City paid contribution equal to the maximum provided by law to a deferred contribution program, 457 (Currently$22,500). o A City paid contribution equal to 5% of base salary to a tax deferred supplemental retirement plan, 401a (Currently $7,866.65). o Eligibility for an annual bonus of up to $5,000 granted by the City Council. o Term life insurance policy provided in the amount of$189,000. o City paid long-term disability policy. SEPARATION ® The City Manager may be terminated by the City Council at any time for any reason. ® Mr. McKinney may separate employment with 90 days written notice. ® The City Manager is entitled to severance pay equal to 12 months of salary. Health benefits also continue for 12 months. 3 • The City Manager may be terminated without severance if he is terminated because of misconduct related to the performance of his official duties, as described in the municipal code sections 2-4.20 through 2-4.25. • Within 90 days immediately following the election or appointment of a new member of the City Council, the Council shall take no action to remove the City Manager. COUNCIL COMMITMENTS • Council commits to participate in a strategic planning workshop. • Supports a department head strategic planning workshop. • Council supports an employee incentive program administered by the City Manager. 4 F2. 2001 Employment Agreement AmendmentCF ADERO COVtRACT 33 1 EMPLOYMENT AGREEMENT THIS AGREEMENT is made and entered into September 25, 2001, by and between the City of Atascadero (hereinafter called "City") and Wade G McKinney (hereinafter called "Employee") amending the employment agreement dated July 16, 1997 RECITALS WHEREAS, the City desires to employ the services of Wade G McKinney, as City Manager of the City of Atascadero, (hereinafter referred to as "City Manager"), and WHEREAS, the City desires to provide certain benefits, establish certain conditions of employment,and to set working conditions of said Employee, and WHEREAS, the City desires to (1) retain the services of Employee and to provide 1 inducement for him to remain in such employment, and (2) to make possible frill work productivity by assuring Employee's morale and peace of mind with respect to future security; and provide an equitable means of terminating his services, and WHEREAS, Employee desires to be employed as City Manager NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows SECTION 1. DUTIES The City hereby agrees to employ Wade G McKinney as Cry Manager to perform the functions and duties as currently in effect or as hereafter may be established by ordinance, resolution or action of the City Council. The City Manager's schedule of work each day and week shall vary in accordance with the work required to be performed. It is recognized that the City Manager must devote a great deal of his time outside normal office hours to the business of the City and to that Employment Agreement City of Ataseadero!Wade McKinney Page 2 end,will be allowed to take time off during normal office hours. The City Manager is a full-time employee. He shall not spend more than ten (10) hours per month in non-City connected business for which compensation is paid without the express prior consent of the City Council SECTION 2. COMPENSATION 1 The City agrees to compensate Employee for his services as City Manager by payment of salary in a manner consistent with other City employees The City Council may, from time-to-time,by resolution, adjust Employee's salary SECTION 3. TERMINATION 1 This Agreement is made for an indefinite term, and may be terminated by a majority vote of the City Council at any time, for any reason whatsoever, or for no reason at all. City Manager may also terminate this Agreement at any time with ninety (90) days written notice. In the event that City Council terminates this Agreement without the consent of City Manager, City Manager shall be given severance pay in an amount equal to twelve (12) months salary at the then current rate from the effective date of termination. City shall also pay for a continuation of City Manager's health insurance plan and life insurance policy for twelve months from the effective date of termination. In the event the City Manager is terminated because of misconduct materially related to his performance of official duties, as described in Atascadero Municipal Code sections 2- 4.20 through 2-4 25, inclusive, the City shall have no obligation under this Agreement to provide any severance payment. During a period of ninety (90) days immediately following the date of installation of any person elected to the Council at a regular or special City Election, or of any person newly appointed to the Council, the Council shall take no action, whether immediate or prospective, to remove, suspend, request the Employment Agreement City of Atascadero/Wade McKinney Page 3 1 resignation of, or to reduce the salary or benefits of the City Manager SECTION 4. COUNCIL. COMMITMENTS 1 City Council commits to participate in a duly noticed team building /strategic planning workshop annually based upon the City's ability to fund. 2. City Council agrees, in concept, to an annual department head strategic planning workshop The details and costs of such a workshop will be handled in each annual budget. 3 City Council commits to an appropriate employee incentive program to be administered by City Manager Annually funds shall be included in the budget to be used as employee incentives at the direction of the City Manager SECTION S. BENEFITS i I In addition to the compensation set forth in Section 2 of this Agreement, Employee shall be entitled to receive the same benefits as are accorded all other City management employees except as herein provided. Employee shall be entitled to the following benefits a. Any -across the board salary increases extended to City employees are automatically provided to the City Manager b City Council shall engage in a review of the City Manager's performance annually City Council and Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the City in the attainment of the City Council's policy objectives, and the City Council and Employee shall further establish a relative priority among those various goals and objectives reduced to writing. These goals and objectives shall be obtainable }Jmployment Agreement City of Ataseadero 1 Wade McKinney Page 4 generally within the time limits as specified in the operating and capital budgets and appropriations provided. c City will pay for the annual cost of membership in a local physical training facility d. In addition to benefits described herein, Employee shall be entitled to the same benefits granted to management employees. As used herein, benefits include, but are not limited to, vacation, sick leave, administrative leave [administrative leave to be taken at employee's sole discretion], holiday pay, retirement (PERS) benefits and _payments, health insurance, dental insurance, vision insurance, and life insurance. Accrual shall be at rates afforded other employees. The death benefit of term life insurance provided shall be $189,000 Employee's medical payback j is frozen consistent with the City's management group. f City agrees to provide long term disability insurance comparable to employee's present policy g. City will budget for and pay the travel and subsistence expenses of the Employee for official travel, meetings, professional development of the Employee and necessary official and other functions for the City, including, but not Iimited to, national, regional, state, and local conferences, governmental groups, and committees. City will budget and pay for necessary professional dues and subscriptions to organizations. h. Employee shall receive five hundred dollars ($500 00) each month as an automobile allowance. The allowance is in exchange for (1) Employee making available for his own use a personal automobile, and(2) for his use of his personal E,mployment Agreement City of Atascadero/Wade McKinney Page 5 automobile for City related business and/or functions during, before and after normal work hours. Employee is not precluded from using City vehicles for City business during before, and after the normal work day A City vehicle will not be provided to Employee for his exclusive use and no City vehicle shall be utilized by Employee for commuting purposes. Employee will be entitled to mileage reimbursement at standard rates for trips over Two Hundred (200)miles. t. City understands that Employee is moving from an area with much lower comparable housing costs than those in Atascadero City also understands that Employee is taking a reduction in salary to come to Atascadero In recognition of these facts, City will provide a loan secured by a first trust deed against employee's new home to be acquired in Atascadero in a principal amount not to exceed $200,000 The loan will be payable amortized over a thirty year period, but be due and payable upon the sale of his new home, or within one year of his effective date of termination of employment, whichever first occurs. Interest on the loan will be 5 6% (maximum interest rate will be 6 6% and minimum interest rate will be 4 6%) which is the current yield from the Local Agency Investment Fund rate for the twelve month period immediately preceding the date of the loan. The interest rate will be adjusted annually, on the anniversary date of the loan, to reflect the average monthly Local Agency Investment Fund rate for the previous twelve months. SECTION 6. GENERAL PROVISIONS 1 This Agreement shall constitute the entire Agreement between the parties. 2. This Agreement shall be binding upon and inure to the benefit of the heirs at law and Employment Agreement City of Atascadero/Wade McKinney J Page 6 ' executors of Employee. 3 This Agreement shall become effective upon approval by the City Council. IN WITNESS WHEREOF, the above parties have executed this Agreement as of the date first written above. CITY OF ATASCA ERO At BY ichael Arrambtde, Mayor Wade G McKinney ATTEST l� w Marcia MCQ-tune\-orgerson, City Clerk 3. 2003 Addendum EMPLOYMENTAGREEMENTADDENDUM THIS AGREEMENT is made and entered into October 14, 2003, by and between the City of Atascadero (hereinafter called "City") and Wade G McKinney (hereinafter called "Employee") adding provisions to the employment agreement dated September 25, 2001 SECTION 5. BENEFITS (added) j Employee shall receive eighty (80) hours vacation leave in addition to vacation leave provided to management employees SECTION 7. DEFERRED COMPENSATION (added) 1 Effective September 1, 2003, the City will pay a contribution equal to five percent (5%) of base salary to a deferred compensation program in favor of Employee All deferred compensation contributions are fully vested in the employee and shall not be available to the City SECTION 6. GENERAL PROVISIONS 1 This Agreement shall amend the Agreement between the parties by adding the above Sections 2 This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee 3 This Agreement shall become effective upon approval by the City Council IN WITNESS WHEREOF, the above parties have executed this Agreement as of the date first written above CITY OF ATASCADERO —4 BY \ J rry L. Iay Sr Mayo ade G McKinney l�, ATTEST y - M, i 1 v )� area McCTure Horgerson, C M C y Clerk 4. 2004 Addendum EMPLOYMENT AGREEMENT ADNUM THIS AGREEMENT is made and entered into July 27, 2004, by and between the City of Atascadero (hereinafter called "City") and Wade G McKinney (hereinafter called "Employee") modifying a provision to the employment agreement dated September 25, 2001 SECTION 7 DEFERRED COMPENSATION 1 City agrees to deposit the maximum sum allowed by law into Employee's 457 deferred compensation account with ICMA Retirement Corporation including any pre-retiremerit incentives. SECTION 6. GENERAL PROVISIONS 1 This Agreement shall amend the Agreement between the parties by modifying the above Section 2 This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee 3 This Agreement shall become effective upon approval by the City Council IN WITNESS WHEREOF, the above parties have executed this Agreement as of the date first written above. CITY OF�ATASCADERO VIA BYG Dr Gedrge Luna, Mayor Wade G McKinney, City Mana er ATTEST `Maroia M Tor-gqrsbn, VM C , City Clerk 5. 2005 Addendum EMPLOYMENT AGREEMENT ADENDUM i THIS AGREEMENT is made and entered into October 25, 2005, by and between the City of Atascadero (hereinafter called "City") and Wade G McKinney (hereinafter called "Employee") modifying a provision to the employment agreement dated September 25, 2001 SECTION 5 BENEFITS 2 Effective September 1, 2005, Employee shall receive forty (40) hours annually for vacation leave in addition to vacation leave provided within this contract and to management employees SECTION 7 DEFERRED COMPENSATION 2 Effective November 1, 2005, the City will pay a contribution equal to five percent (5%) of base salary to a tax deferred supplemental retirement plan (i e 403b, 401a, or other similar plans) in favor of Employee All contribdtions are fully vested in the employee and shall not be available to the City SECTION 6. GENERAL PROVISIONS 1 This Agreement shall amend the Agreement between the parties by modifying the above Section f 2 This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. 3 This Agreement shall become effective upon approval by the City Council IN WITNESS WHEREOF, the above parties have executed this Agreement as of the date first written above CITYOF ATASCADER J� BY .. / end Sc rise, Mayor Wade G McKinney ATTEST Marcia M Torgerson, City Jerk F6 2011 Addendum I EMPLOYMENT AGREEMENT ADDENDUM THIS AGREEMENT is made and entered into December 15, 2011, by and between the City of Atascadero (hereinafter called "City") and Wade G. McKinney (hereinafter called "City Manager"), modifying provisions to the employment agreement dated September 25, 2001 as follows: SECTION 3 TERMINATION Add Item: 2. In the event that City Manager is convicted of a crime involving an abuse of his office or position, as defined in California Government Code section 53243.4, City Manager shall be required to fully reimburse the City in accordance with California Government Code sections 53243, 53243.1, and/or 53243.2. SECTION 5 BENEFITS Delete Item: Item 1.a: Any across the board salary increases extended to City employees are automatically provided to the City Manager-- THEREFORE Section 3 Item 2 shall hereby be deemed to be added to the Agreement. Section 5 Item 1.a shall hereby be deemed to be deleted from the Agreement. All other provisions of the Employment Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the above parties have executed this Agreement Addendum as of the date first written above. CITY OF ATASCADERO By � a Tom O'Malley Wade G. McKinney, Mayor City Manager