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2013-071s:llegallour documentslordinances1131campbefl salary approval.doc ORDINANCE NO. 2013-071 AN ORDINANCE APPROVING A SALARY INCREASE FOR GEORGE C. CAMPBELL UNDER THE PERFORMANCE REVIEW PROVISION OF HIS EMPLOYMENT AGREEMENT WITH THE CITY; AUTHORIZING THE EXPENDITURE OF FUNDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on October 5, 2010, the City Council approved an employment agreement with George C. Campbell as City Manager by Ordinance No. 2010-250; and WHEREAS, the City Council Appointee Performance Review Committee and City Council have completed the City Manager's annual review and the Committee has recommended that the City Council approve a salary increase; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitals and findings contained in the preamble of this Ordinance are incorporated into the body of this Ordinance. SECTION 2. The City Council hereby approves a salary increase in the amount of 2% of the current base salary under Section 6 of the Agreement, or the average increase given all City employees in the event the City Council implements a budgetaxy decrease of employee salaries, to be effective as of October 1, 2012. SECTION 3. The City expenditures provided for in the Agreement are hereby authorized. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 19t� day of �%i,�1 � � , 2013. � . . 1�►�' ' � . ATTEST: JENNIFER WALTERS, CITY SECRETARY I: APPF�( VED A$'TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: STATE OF TEXAS § COUNTY OF DENTON § Employment Agreement This Emplayment Agreement (this "Agreement") is made and entered into this 1st day of Octobex 2010 by and between the City of Denton, Texas, a Texas municipal corporation (the "Employer") and George C, Campbell (the "Exz�.ployee"), with the Employer and the Employee sometim.es being referenced collectively in this Agrreement as the "Parties." Witnesseth: Whereas, the City Council of the Ciiy of Denton (the "Council") and the Employee desire to amend that certain written Employment Agreemen.t dated the Sth day of June, 2007, as amended, to continue the exnployment services of the Employee as City Manager of the City of Denton; and Whereas, it is the desire of the Council to: (1) secure and retain the services of the Employee and to provide inducement for hina to remain in such employment; (2} malte possible full work productiviiy by assuring tk�e Employee's morale and peace of mind with respect to future security; and (3) act as a deterxent against malfeasance or dishonesty for personal gain on the part of the Employee; and Whereas, the Employee desires to conti�ue employment as City Manager of said City of Denion, Texas as a Cauncil appointee; and Whereas the Parties acicnowledge that the Empioyee is a xnember of the International City/County Management Association (ICMA) and that the Employee is subject to the ICMA Code of Ethics; Now, therefore, in consideration of the mutual covenants herein contained, tkie Parties agree as follows: SECTION 1. DEFINITI�NS In this Agreement, the following words and phrases shall have the £ollowing meanings: C� means the City of Denton, Texas. Commencement Date means October 1, 2010, Extended Term means any one-year time period, or any part t1�.exeof, during which this Agreement remains in full force and effect as a result of any automatic renewal of fihe terms of this Agreement. PAGB 1 OF '7 Initial Term means the five-year time period beginning on the Commencement Date and ending on September 30, 2015, during which this Agreenr�ent sha11 be in full force and effect if not earlier termznated in accordance with the provisions of this Agreement. Invoiuntary Separation has the rneaning assigned in Section S,D. of this Agreement. Salarv means the monetary amount stated in Section 6,A. of this Agreement that the Employee is en�itled to as an axu�.ual base salary—or, if no longer current, then the monetary amouni that the Erx�.ployee is currently entitled to as an annual base salary as approved by the Council----and does not include the value of any other benefifi of employment or other amount. Termination Date means the date upon which this Agreement iermirnates under any applicable provision o:F this Agreement, Total Compensation means the combined sum of the Employee's Salary and the monetary value of a11 other benefits that the Employee is entitled to under this Agreement and otherwise as an Employee of Ernployer. SECTION 2. DUTIES The Employer hereby continues to engage the employment services of the Employee as City Manager of the City to perform the functions and duties specified by the Denton Home Rule City Charter (the "City Charter"), the Code of the City of Denton, Texas (the "City Code"), the laws of the State of Texas, and all other applicable 1aws, and to pexform other legally pert�nissible and proper duties and functions as the Employer sha11 from time to time assign. SECTION 3. TERM A. The Initial Term of this Agreemeni is five yeaxs beginning on the 1 St day of October 2010 and ending on the 30th day of Septerrxber 2015, B. Unless the Council—at least 30 days before the expiration of the Initial Term—gives the Employee written notice of non-renewal, the tez�.s of this Agreement shall automatically renew for one Extended Term. Unless the Council—at least 30 days before the expiration of an Extended Term once commenced—gives the Employee written notice of nonrenewal, the tern�s of this Agreement shall aut�matically renew for an additional Extended Ternrz, C. This Agreement may be terminated before the expiration of the Initial Term or before the expiration of any subsequent Extended Tertn by the Employer or the Employee undex any applicable provision of this Agreement. If the Employer terminates this Agreement, it must do so either by: (1) following the procedures set forth in Section 4 of this Agreement; or (2) providing a notice of non-xenewal in acco:rdance with Section 3.B. of this A�reement. The Employee may terminate this Agreement by providing at least 30 days written notice to the Employer before the date designated by the Employee for termination. PAGE 2 0F 7 SECTIDN 4. INVOLUNTARY SUSPENSION/REMOVAL The Employer may suspend or remove the Employee but on.ly if at least 30 days before the suspension or removal shall became effective, the Council shall by a maj ority vote of its m�embers adopt a preliminary resolutaon stating the reasons for removal. Employee may reply in wniting and may require a hearing at a public rneeting of the Council, which sha11 be held not eaxlier than 20 days and not later than 30 days after the �iling of such request. The hearing may be held in executive session, at the option of the Council, unless Employee xequests the hearing be held in open session in accordance wzth Tex. Gov't Code §551.074. Pending such hearing, the Council may suspend Employee from duty, but may not suspend ar reduce the Employee's Salary. After such hearing or public hearing, if one be requested, and after fu11 consideration, the Council by majority vote may adopt a fu1a1 resolution of removal or reinstatement. This Agreement shall be deeaz�ed to terminate on the effective date of a final resolution of removal. SECTION 5. SEPARATION AND SEVER.A.NCE PAY A. Upon Involuntaxy Separation occurring during the Initial Term, the Employee shall be entitled to a lump sum severance payment equal to a fiill year of the Employee's Total Cornpensation. B. Provided that the Employee remains at all tirnes employed as Employer's City Manager for �lie entixe Initial Term of this Agreement, the Employee shall thereafter be entitled to receive a full year of the Empioyee's Total Compensation upon Involuniary Separation, except in the event such Involuntary Separation is due to any of ihe reasons set forth in Section 5.C. of this Agreement, in which case the Employer shall not be obligated to pay and the Employee sk�all not be entitled to receive any amount as severance payment. C. Notwithstan.ding Section S.A., Section S.B., or any other provision of this Agreement, the Employer shall not be obligated to pay and the Eznployee shall not be entitled to receive any amount as severance payment if the Employee's separation from employment is due to the Employee having been. convicted of any felony offense or any non-felony offense involving: (1) moral turpitude; or (2) an illegal act(s) resulting in personal gain to the Employee. D. "Involuntary Separation" r�czeans the Employee's: (1) removal by the Council under Section 4 of this Agreement; (2) separation by the Council's act of non-renewal of the Initial Terna as set forth in Section 3.B. of this Agreement; or (3) the Employee's resignation upon the Council's reduction ar threatened xeduction in the Employee's Salary or other financial benefits in a greater percentage than a coi:�ciding across-the- board reduction for all City employees. If Employee resigns upon such a reduction, the calculation of the amount of any severance pay due and owing under thzs Agxeement shall be based on the amount of the Ernployee's Total Compensation iznmediately before any such reduction. PAGE 3 OF 7 SECTION 6. SALARY A. For t?ne services rendered as the Employer's City Manager, the Employer agrees to pay Employee an annual base salary of $222,560 payable in installments at the same time as other employees of the Employer are paid. .All provisions of the City Charter, City Code, and Council-adopted Rules and Regulations relating to the vacation and sicl� leave, retiremen.t and pension system contribution, holidays, and other fringe benefits and worlcing conditions as they now exist or hereafter may be amended, sha11 apply to Employee as they would to other employees of the City, which benefits include health insurance, long-term disability insurance, retirement under the Texas Municipal Retirement Systezxx, and other benef ts as provided to other Coun.cil appointees of the City. However, the Employee may elect to not participate in the Employer's health insurance plan, in wbach case the Employee will be entitled to an additional swn of up to $8,000 annually, which wzll be paid in installm.ents at the time the Employee's Salary is paid. B. In addition, Ezx�ployer agreas to increase the Employee's Salary and/or other exz�.ployment benefits to such extent as ihe Council may detexmine wifhin the approved budget that it is desirable to do so on the basis of an annual performance review of the Employee made at the same time as similar consideration is given other Council appointees. SECTI�N 7. PERFORMANCE EVALLIATION A. The Council shall review and evaluate the perfortnance of the Employee at least once annually during the time set aside each year for the performance review of other Council appointees. Said review and evaluation shall be in accordance with specific criteria developed jointly by Employee aud Employer. Said criteria may be added to or deleted from as the Council and Eznployee shall agree. B. AnnuaIly, the Council and Employee sha11 define such goals and performance objectives which they determine necessary fox the proper operation oi the City of Denton, Texas, and in the attainment of the Council's policy obj ectives and shall further establish a relative priority among those various goals and objectives, SECTION &. HOURS OF WORK It is recognized by both Employer and Employee that the duties of City Manager require a great deal of tilne outside of norm.al of.�ice hours. It is also recognized by the Parties that Employee is required to devote ihe amount of time and energy necessary to carry out those dutaes with the highest amount of professionalism possible. That being the case, the Parties recognize that Employee may choose to talce person.al time off during business hours when it is appropriate and vvhen the Employee's duties a11ow, A.ltl�ough this personal time off is not considered vacation, neither is it io be considered as compensatory time for time spent by Employee in carrying out the Employee's duties outside of noxmal ofFice hours, as the Parties agree that the Employee must devote the amount of time necessaxy to fulfill those duties. The Council will consider the Employee's use of personal time off during the performance evaluation. PAGE 4 OF 7 SECTION 9. OUTSIDE EMPLOYMENT/ACTIVITIES Wl�ile employed under this Agreement, the Employee agrees to remain in the exclusive employ of the City and neither to accept other employment nor to become employed by any other employer: Employee is entitled to devote whatevex amount of time the Employee feels is appropriate under the circumstances to the puxsuit of teaching, counseling, consulting, wriiing or other non-employer connected business outside of normal business hours of the Employer, provided that this does not conflict or interfere with the Employee's duties as City Manager, and provided that Employee first notifies the Council Appointee Performance Reeiew Committee ihat the Employee intends to engage in such activity and same is approved by the Chair of the Committee, SECTTON 10. AUTOMOBILE The Employee is xequired to be on call for 24-houre service, so therefore, must have access to a vehicle for City business. Employer shall grant to the E:rxzployee a car allowance of $1,200 per month for providing such vehicle, The Employee shall be responsible for the purchase mai�tez�amce, insurance, ta�es, etc. for said vehicle. The monthly allowanee will be considered for increase during the performance evaluation process. The Employer also agrees to reimburse Emploqee for mileage for out-of-county travel associated with City business at the current IRS rate for mileage reimbursezx�ent in accordance with the then current City Travel Reimbursement Policy for City ezx�.ployees with ca:r allowances. SECTION 11, RETIREMENT A. Employer agrees to e�ecute all necessary agreements provided by the International City/Gounty Managernent Assoeiation — Reiirement Carporation (ICMA-RC) fox Employee's participation in said ICMA-RC retirement plans. Employer fiuther agrees to contribute a total of 10% of Employee's Salary to ICMA-RC's 457, 401A plans, and/or another approved deferred compensation plan. All sums contributed io sa,id plans sha11 be in addition to Employee's Salary. Employer also agrees to allow Employee to contribute whatever portion of the Employee's Salary the Employee deems appropriate to sa.id plazz, including "catch-up" provisions, B, Ernployer agrees to pay the TMRS retirement program, ea�ecutive-level employees. percentage of the cost of Employee's participation in the in accordance with Employer's current policy for other C. If the Employee reti.res pursuant to a qualified retirement plan, ar is permanently disabled during the term of this Agreement, the Employee shall be compensated for the sick leave, vacation leave, holidays, and other benefits then accrued or credited to the Ernployee in accordance with Employer's current policies for cornpensation for these benefits, and, at the Employee's option, shall be permitted to continue to participate in the City's health insurance plan on the same basis as other xetixees from the City are pexmitted to do so, or, i�f such other retirees are not permitted to do so, at the cost o£the Ennployee, PAGE 5 OF 7 SECTION 12. DUES, MEMBERSH�PS AND SUBSCRIPTIONS Employer agrees to budget and to pay for the professional dues, memberships and subscriptions of Employee necessary for the Employee's continuatio:� of £ull participation in national, regional, state and local associations and organizations necessary and desixable for the Employee's continued professional participation, growth and advancement as City Manager, and fox tl�e good of the Employer in amounts thai are approved by the Council in the annual budget fox the General Government. SECTION 13. PROFESSIONAL DEVELOPMENT Employer hereby agrees to budget for and to pay the full travel, participation, and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee, and to adequately pursue necessary official and other functions for Employer, including but not limited to the Annual Conference of Internatianal City/County Management Association, any Texas Association of City Management meetings, and other such national, regional, state and local groups and committees thereof which Employee serves as a rmezx�ber in the amounts approved by the Council in the annual budget for the City Manager — Adzx�.inistration. SECTION 14. BONDING Employer shall beax the full cost of any fidelity or other bonds that may be required of the Employee under any law or ordinance. SECTION 15, OTHER TERMS AND CONDITIONS OF EMPLOYMENT A. The Council, upon recommendation of the Council Appointee Perfaxmance Review Cammittee and in consultation with the Employea, shall �ix any such other terms and conditions of employment as it may determine from time to tirne, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City Chartex or any other law, and are memorialized by a written axnendment to this Agreement. B, All provisions of the City Charter and the City Code, and regulations and rules of the Employer relating to �acation and sick leave, retiremeni and pension system contributions, holiday, and other fringe benefits az�d woxkin.g conditions as they now exist or hereafter may be amended, also shall apply to Employee as they would to oth.er employees of the Employer in addition to said benefits enumerated specifically for the benefit of Employee. SECTION 16. GENERA.L PROVISIONS A. The text herein shall constitute the eniire agreement between the Parties, and sha11 supersede and replace any previous agreement(s) between the Parties regarding the subject matter of this Agreement. PAGE6OF7 B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. C. If any provision, or a.ny portion, thereof, contained in this Agreement is held unconstitutional, invalid, or unenforceable, the remainder of this Agreement, or portion thereof, sha11 be deemed several, sha11 not be affected and shall remain in force a.nd effect. D. The venue of any litigation involving this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. SECTION 17. APPROPRIATIONS The Employer agrees that it will appropriate, set aside and encumber funds of the City in an amount sufficient to fund and pay a11 financial obligations of the City pursuant to this Agreement, including, but not limited to the severance pay, Salary and benefits set forth and described herein. SECTION 18. EFFECTIVE DATE This Agreement shall take effect on October 1, 2010. IN WITNESS WHEREOF, the Mayor as duly authorized by the Council and on behalf of the City of Denton, has signed and executed this Agreement and the Employee has signed and executed this Agreement, both in duplicate, the day and year first above written. OF DElV�'ON, TEXAS � �� Li. ,,.�i ,:`, �.�. ,✓ MARK A� BURROUCrH MA.YOR ATTEST: �i� a.. I,i . /_ l • � � _ _,� �� . ,� . . ,. �� GEORGE C. CAMPBELL CITY MANAGER PAGE7OF7