21-198.00 John Hohman: Interim City Manager Agreement 21 - ►le
LETTER AGREEMENT FOR
SPOKANE VALLEY INTERIM CITY MANAGER
This letter agreement(Agreement)is between John Hohman,Deputy City Manager(Mr.Hohman),
and the City of Spokane Valley, acting through the City Council.
Pursuant to an approved motion by the City Council in open session on November 30, 2021, Mr.
Hohman is hereby appointed as the Interim City Manager of Spokane Valley. The effective date
of the appointment is January 1, 2022 (upon execution of this Agreement), and shall continue to
March 31, 2022, unless terminated earlier by the City Council due to appointment of a person to
fill the role of City Manager, which may include Mr. Hohman, or due to termination for cause.
The parties may agree in writing to extend this Agreement by an additional up to 60 days if the
City needs additional time to hire a City Manager.
The annual salary under this Agreement shall be $205,000, with all applicable benefits currently
being received by Mr. Hohman. The City agrees Mr. Hohman shall continue to earn the salary of
the Interim City Manager for two additional months after a new City Manager's start date, unless
Mr. Hohman is named the City Manager. In the event a new City Manager decides within 12
months of his/her start date to not retain Mr.Hohman as Deputy City Manager,Mr. Hohman shall
be entitled to a severance equal to 12 months of pay with full benefits at the Deputy City Manager
rate Mr. Hohman is due to receive on January 1,2022,pursuant to the following paragraph. In the
event Mr. Hohman is not chosen as the City Manager, and determines within 12 months that he
cannot have a relationship with the City Manager that is effective to meet the operational best
interests of the City and must therefore resign, then Mr. Hohman shall be entitled to a severance
equal to nine months of pay with full benefits at the Deputy City Manager rate at the date of his
severance,pursuant to the following paragraph. This severance shall not be in effect in the event
of a termination for cause (misfeasance or malfeasance).
If severance is invoked under the prior paragraph, Mr. Hohman would be put on administrative
leave for either the nine or twelve-month period as applicable. No additional vacation or sick time
would accrue during any time Mr. Hohman is on administrative leave pursuant to this agreement.
At the end of the applicable nine or twelve-month severance period in which Mr. Hohman would
be on administrative leave, he would then continue on leave for an additional period of time in
which Mr. Hohman would use his accrued vacation leave. Once 50% of Mr. Hohman's accrued
vacation leave were expended, the City would pay Mr. Hohman the remaining balance of his
accrued vacation leave pursuant to adopted City APP 200.510. The parties may, at their discretion
and in writing,agree to a different severance package. Whether on administrative leave or vacation
leave pursuant to this agreement, Mr. Hohman shall perform no duties for the City.
Currently,Mr.Hohman has approximately the maximum allowed accrued vacation leave pursuant
to City APP 200.510, which is 400 hours. As Interim City Manager, Mr. Hohman is unlikely to
be able to use as much vacation leave as he typically would. As such,Mr.Hohman shall be allowed
to accrue vacation leave in excess of the normal maximum of 400 hours. If Mr. Hohman is not
chosen as the long-term City Manager and retains his position as Deputy City Manager, he shall
have until December 31, 2023 to bring his accrued vacation leave bank within the limitations
pursuant to APP 200.510. In the event Mr. Hohman leaves employment with the City pursuant to
the preceding paragraph,any additional accrued vacation leave beyond 400 hours shall be paid out
to Mr. Hohman in the same fashion as any other accrued vacation leave.
Upon completion of the term of Interim City Manager, the City agrees that Mr. Hohman shall be
allowed to return to his previous role as Deputy City Manager with restoration of all rights and
benefits, except as may otherwise be specified in this Agreement. In the event Mr. Hohman is
selected to be the City Manager,the City shall negotiate a separate agreement for those duties.
The Parties agree that this Agreement represents the sole and exclusive remedies between them
arising out of this Agreement with regard to any separation from employment relating to the duties
herein, and that the separation provisions were an integral part of the consideration for entering
into the Agreement, and were specially negotiated.
This Agreemeall be in effect upon the date last executed by a party.
8 ul fakl Zi
Ben Wick, Mayor on behalf of the Council Dated
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John Hohman, Interim City Manager Appointee Dated