10-126.00 City Manager Employment AgreementEmployment Agreement
Between
The City of Spokane Valley and
Mike Jackson, City Manager
Introduction and Recital
This Employment Agreement, made and entered into this 22nd day of September
2010, by and between the City of Spokane Valley Washington, a municipal corporation,
(hereinafter called "Employer ") and Mike Jackson (hereinafter called "Employee ") an
individual who has the desire, education, training and experience in local government
management - including experience in Spokane Valley - and who, as a member of
International City /County Management Association (ICMA), is subject to the ICMA Code
of Ethics, to be the City Manager of Spokane Valley, Washington.
Both the Employee and the Employer desire to establish terms and conditions which
provide a clear understanding as to expectations, compensation, benefits and other
matters pertinent to a mutually productive and positive Employer /Employee relationship.
In consideration of the mutual covenants herein contained, the parties agree as follows:
Section 1: Term
This agreement shall remain in full force in effect from September 22, 2010 retroactive
to August 10, 2010 (date of appointment by City Council) until terminated by the
Employer or Employee as provided in this agreement.
Section 2: Duties and Authority
Employer agrees to employ Mike Jackson as City Manager to perform the functions and
duties specified in Title 2, Chapter 2.15 of the Spokane Valley Municipal Code, RCW
35A.050 -.150, and to perform other legally permissible and proper duties and functions.
Section 3: Residency
Per the Spokane Valley Municipal Code Title 2.15.070 Residency, the city manager is
not required to be a resident of the City on the date of City Council appointment but
shall reside in Spokane County within six months of such appointment unless otherwise
waived by the city council. This section releases the Employee from any obligation to
live within the City limits of Spokane Valley. (Employee currently resides within Spokane
County and has done so since June 2003.)
Section 4: Compensation
1. Base Salary
Employer agrees to pay Employee a base annual salary of $154,000. Employer shall
not, at any time during the term of the Employee's tenure in office, reduce the salary,
compensation or other financial benefits of Employee, except to the same degree of
such a reduction across - the -board for all employees of the Employer. In consideration
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of the proposed base annual salary, the 2011, 2.5% COLA will be considered inclusive
in the amount of $154,000.
Salary to be payable in installments at the same time that the other management
employees of the Employer are paid.
2. Social Security Replacement Account Employer has elected to utilize the ICMA
401(a) Money Purchase Plan in lieu of participation in the Social Security Administration
Program. Employer and Employee shall make their required payments of 6.2% of the
Employee's base annual salary (as continuation of Employee /Employer existing
practice) into said replacement plan toward social security replacement, as well as the
required contributions at the federally determined percentage for Medicare Program
participation.
3. Annual Performance Evaluation and Salary Adjustments. The Employer agrees to
increase the Base Salary and /or benefits of Employee on an annual basis compatible
with the Employee's performance, and no lower than in the manner and amount/
percentage as customary with other City employees.
With the assistance of a mutually agreed facilitator, Employer and Employee shall
evaluate the performance of the Employee at least once annually to coincide with
Employee's anniversary date of August 10 and prior to development of the annual
Preliminary Budget. The review and evaluation will be in accordance with specific
criteria developed jointly by the Employer and the Employee. The process at a
minimum shall include the opportunity for both parties to: (1) prepare a written
evaluation, (2) meet and discuss the evaluation, and (3) present a written summary
of the evaluation results. The final written evaluation should be completed and
delivered to the Employee within 30 days of the evaluation meeting.
As part of the evaluation process, both parties will define the goals and
performance objectives which they consider important to City and Employee.
This agreement shall be automatically amended to reflect any salary adjustments that
are provided or required by the Employer's compensation policies.
Section 5: Health, Disability and Life Insurance Benefits
1. The Employer agrees to continue to provide with no lapse in service: health, life,
dental, and vision insurance coverage for Employee, his spouse and dependents under
programs and cost allocation methods applicable to all City employees.
2. Employer agrees to execute all necessary agreements provided by ICMA for
Employee's participation at Employee's own expense, in the ICMA Retirement Health
Savings Plan, in accordance with the voluntary opt -in regulations of a non-
discriminatory plan.
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3. Employer agrees to put into force and make required premium payments for long-
term disability coverage for the Employee. The policy will pay a minimum of 60% of
Employee's salary, with a maximum ninety -day elimination period, should Employee
become disabled or otherwise unable to perform his duties due to sickness, accident,
injury, mental incapacitation or health.
4. The Employer shall pay the amount of premium due for term life insurance in the
amount of $500,000 for a term(s) of 10 years. The Employee shall name the beneficiary
of the life insurance policy. The plan shall be portable if the employee elects to pay the
coverage. The plan shall also be expandable if the employee opts for greater coverage
or longer term but the City's contribution shall be limited to $500,000 for a term of 10
years.
Section 6: Vacation, Sick, and Military Leave
1. Employee will maintain existing accrual bank of vacation, administrative leave and
sick leave.
2. Employee shall accrue 25 days of vacation annually. Vacation to be credited equally
on each pay period and available to employee as it accrues.
3. Sick leave will be accrued at 12 days annually and to be credited equally at each pay
period and available to employee as it accrues.
4. Employee accrues 40 hours of Administrative Leave as provided to other overtime
exempt employees of the City. This amount is credited in January of each year and
available to employee at time of credit.
5. The Employee is entitled to accrue all unused leave, without limit, and in the event
the Employee's employment is terminated, either voluntarily or involuntarily, the
Employee shall be compensated for all accrued vacation time, all paid holidays,
Administrative leave and other leave benefits to date at 100 %. Sick leave shall be
compensated at 50% of accrual.
6. Notwithstanding Employee's actual accrual of sick leave, the Employee shall have
access to a bank of 90 sick days to be used in the case of serious medical conditions.
This leave can only be used to provide coverage during the waiting period between the
onset of illness or disability and the point at which short or long -term disability coverage
takes effect, and will be renewed with each occurrence.
7. The Employee shall be entitled to military reserve leave time pursuant to state law.
Section 7: Automobile - Monthly Vehicle Allowance
The Employer agrees to pay to the Employee, during the term of this Agreement and in
addition to other salary and benefits herein provided, the sum of $300 per month to be
credited at the first of each month, as a vehicle allowance to be used to purchase,
lease, own, operate, insure and maintain a vehicle.
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The Employer will reimburse the Employee at the IRS standard mileage rate for any
business use of the vehicle beyond the greater Spokane County area.
Section 8: Retirement
1. The Employee will remain in Washington Public Employees Retirement System
(PERS) and Employer and Employee will make all the appropriate contributions to
maintain this plan.
2. In addition to the Employer's payment to PERS as referenced above, Employer shall
contribute, effective August 10, 2010, sixteen percent (16 %) of base annual salary into
the International City /County Management Association Retirement Corporation (ICMA-
RC) 401A Plan, and 8.33% of base salary into ICMA -RC 457 Plan. Employee is
immediately fully vested in these plans /contributions and Employer agrees to transfer
ownership /holdings to succeeding employers as may be requested by employee at
cessation of employment.
Section 9: General Business Expenses
1. Employer agrees to budget for and to pay for professional dues and subscriptions of
the Employee necessary for continuation and full participation in national, regional,
state, and local associations and organizations necessary and desirable for the
Employee's continued professional participation, growth, and advancement, and for the
good of the Employer.
2. Employer agrees to budget for and to pay for travel and subsistence expenses of
Employee for professional and official travel, meetings, and occasions to adequately
continue the professional development of Employee and to pursue necessary official
functions for Employer, including but not limited to the ICMA Annual Conference, the
state league of municipalities, and such other national, regional, state, and local
governmental groups and committees in which Employee serves as a member.
3. Employer also agrees to budget for and to pay for travel and subsistence expenses of
Employee for short courses, institutes, and seminars that are necessary for the
Employee's professional development and for the good of the Employer.
4. Employer recognizes that certain expenses of a non - personal but job related nature
are incurred by Employee, and agrees to reimburse or to pay said general expenses.
The finance director is authorized to disburse such moneys upon receipt of duly
executed expense or petty cash vouchers, receipts, statements or personal affidavits.
5. The Employer acknowledges the value of having Employee participate and be
directly involved in local civic clubs or organizations. Accordingly, Employer shall pay for
the reasonable membership fees and /or dues to enable the Employee to become an
active member in local civic clubs or organizations.
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6. The Employer shall provide Employee with a computer, software, fax/modem, cell
phone (or allowance for same) and pager required for Employee to perform the job and
to maintain communication.
Section 10: Termination
For the purpose of this agreement, termination shall occur when:
1. The majority of the governing body votes to terminate the Employee at a duly
authorized public meeting.
2. If the Employer, citizens or legislature acts to amend any provisions of the Municipal
Code pertaining to the role, powers, duties, authority, responsibilities of the Employee's
position that substantially changes the form of government, the Employee shall have the
right to declare that such amendments constitute termination.
3. If the Employee resigns following an offer to accept resignation, whether formal or
informal, by the Employer as representative of the majority of the governing body that
the Employee resign, then the Employee may declare a termination as of the date of the
suggestion.
4. Breach of contract declared by either party with a 30 -day cure period for either
Employee or Employer. Written notice of a breach of contract shall be provided in
accordance with the provisions of Section 20.
Section 11: Severance
Severance shall be paid to the Employee when employment is terminated as defined in
Section 10.
If the Employee is terminated, the Employer shall provide a minimum severance
payment equal to six months' salary at the current rate of pay. This severance shall be
paid in a lump sum unless otherwise agreed to by the Employer and the Employee. The
Employee shall also be compensated for all accrued sick leave, vacation time, all paid
holidays, and administrative leave. The Employer agrees to make a contribution to the
Employee's deferred compensation account on the value of this compensation
calculated using the rate ordinarily contributed on regular compensation.
For a minimum period of six months following termination, the Employer shall pay the
cost to continue the following benefits:
1. Health insurance for the employee and all dependents as provided in Section 5
2. Life insurance as provided in Section 5
3. Long -term disability as provided in Section 5
If the Employee is terminated because of a conviction of a felony, then the Employer is
not obligated to pay severance under this section.
Section 12: Resignation
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In the event that the Employee voluntarily resigns his /her position with the Employer,
the Employee shall provide a minimum of 30 days notice unless the parties agree
otherwise.
Section 13: Hours of Work
It is recognized that the Employee must devote a great deal of time outside the normal
office hours on business for the Employer, and to that end, Employee shall be allowed
to establish an appropriate work schedule. Employee will communicate work schedule
to the Mayor in a mutually agreed manner.
Section 14: Outside Activities
The employment provided for by this Agreement shall be the Employee's primary
Employment. Recognizing that certain outside teaching or other business opportunities
may occur which the Employee wishes to participate in, such activities shall be
permitted during employee's time off. Such activities, if any, shall not constitute
interference of any degree nor a conflict of interest with his or her responsibilities under
this Agreement.
Section 15: Moving and Relocation Expenses
No moving or relocation expenses are negotiated unless revisions are made to Section
3. Residency in this agreement.
Section 16: Home Sale and Purchase Expenses
No home sale or purchase expenses are negotiated unless revisions are made to
section 3. Residency in this agreement.
Section 17: Indemnification
Beyond that required under Federal, State or Local Law, Employer shall defend, save
harmless and indemnify Employee against any tort, professional liability claim or
demand or other legal action, whether groundless or otherwise, arising out of an alleged
act or omission occurring in the performance of Employee's duties as City Manager or
resulting from the exercise of judgment or discretion in connection with the performance
of program duties or responsibilities, unless the act or omission involved willful or
wanton conduct. The Employee may request and the Employer shall not unreasonably
refuse to provide independent legal representation at Employer's expense and
Employer may not unreasonably withhold approval. Legal representation, provided by
Employer for Employee, shall extend until final determination of the legal action,
including any appeals brought by either party. The Employer shall indemnify employee
against any and all losses, damages, judgments, interest, settlements, fines, court costs
and other reasonable costs and expenses of legal proceedings including attorneys fees,
and any other liabilities incurred by, imposed upon, or suffered by such Employee in
connection with or resulting from any claim, action, suit, or proceeding, actual or
threatened, arising out of or in connection with the performance of his duties. Any
settlement of any claim must be made with prior approval of the Employer in order for
indemnification, as provided in this Section, to be available.
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Employee recognizes that Employer shall have the right to compromise, unless the
Employee is a party to a suit in which Employee shall have veto authority over the
settlement, claim or suit; or said compromise or settlement is of a personal nature to
Employee. Further, Employer agrees to pay all reasonable litigation expenses of
Employee throughout the pendency of any litigation to which the Employee is a party,
witness or advisor to the Employer. Such expense payments shall continue beyond
Employee's service to the Employer as long as litigation is pending. Further, Employer
agrees to pay Employee reasonable consulting fees and travel expenses when
Employee serves as a witness, advisor or consultant to Employer regarding pending
litigation.
Section 18: Bonding
Employer shall bear the full cost of any fidelity or other bonds required of the Employee
under any law or ordinance.
Section 19: Other Terms and Conditions of Employment
The Employer, only upon agreement with Employee, shall fix any such other terms and
conditions of employment, as it may determine from time to time, relating to the
performance of the Employee, provided such terms and conditions are not inconsistent
with or in conflict with the provisions of this Agreement, the City of Spokane Valley
Municipal Code or any other law.
Except as otherwise provided in this Agreement, the Employee shall be entitled at a
minimum, to the highest level of benefits that are enjoyed by other officials, department
heads or general employees of the Employer as provided in the Charter, Code,
Personnel Rules and Regulations or by practice.
Section 20: Notices
Notice pursuant to this Agreement shall be given by depositing in the custody of the
United States Postal Service, postage prepaid, addressed as follows:
(1) EMPLOYER:
City of Spokane Valley, Attn. Mayor
11707 East Sprague, Suite #106, Spokane Valley, WA 99206.
(2) EMPLOYEE:
Mike Jackson, REDACTED Spokane, WA 99206.
Alternatively, notice required pursuant to this Agreement may be personally served in
the same manner as is applicable to civil judicial practice. Notice shall be deemed given
as of the date of personal service or as the date of deposit of such written notice in the
course of transmission in the United States Postal Service.
Section 21: Disclosure
Employee owns/has owned a rental home within the City of Spokane Valley city limits
since 2004. This document contains confidential personnel
information and has been redacted pursuant to RCW
City Manager Contract 42.56.250(3).
You may petition for a review of our findings pertaining to any
redacted or withheld documents pursuant to Spokane Valley
Municipal Code (SVMC) 2.75.080; and obtain judicial review
pursuant to RCW 42.56.550.
Section 22: General Provisions
1. Integration. This Agreement sets forth and establishes the entire understanding
between the Employer and the Employee relating to the employment of the Employee
by the Employer. Any prior discussions or representations by or between the parties are
merged into and rendered null and void by this Agreement. The parties by mutual
written agreement may amend any provision of this agreement during the life of the
agreement. Such amendments shall be incorporated and made a part of this
agreement.
2. Binding Effect. This Agreement shall be binding on the Employer and the Employee
as well as their heirs, assigns, executors, personal representatives and successors in
interest.
3. Effective Date. This Agreement shall become effective on August 10, 2010.
4. Severability. The invalidity or partial invalidity of any portion of this Agreement will not
affect the validity of any other provision. In the event that any provision of this
Agreement is held to be invalid, the remaining provisions shall be deemed to be in full
force and effect as if they have been executed by both parties subsequent to the
expungement or judicial modification of the invalid provision.
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