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2015-144SALegal \Our Documents \Ordinances \15 \Campbell-amended agr ord - version 3.doc ORDINANCE NO. 2015 -144 AN ORDINANCE APPROVING AN EXTENSION OF THE EMPLOYMENT AGREEMENT FOR THE CITY MANAGER; AMENDING SECTIONS 3, 5 AND 6 OF SAID AGREEMENT; AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT; AUTHORIZING EXPENDITURES AND ACTIONS; 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, pursuant to the employment agreement, the City Council desires to extend same for a one (1) year period; and WHEREAS, the City Council additionally desires to amend "Section 3. Term ", "Section 5. Separation and Severance Pay ", and "Section 6. Salary" of the employment agreement; and WHEREAS, the City Council finds that this Ordinance is in the public interest; 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 one (1) year extension of the employment agreement. SECTION 3. The City Council hereby approves the First Amendment to Employment Agreement for the City Manager, which reflects amended Sections 3, 5 and 6, a copy of which is attached hereto and incorporated by reference herein, and authorizes the Mayor, or his designee, to execute the First Amendment to Employment Agreement on behalf of the City. SECTION 4. The City expenditures provided for in the Agreement are hereby authorized. SECTION 5. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ATTEST: ,11,N 11 ,.�'R WALTERS, C IJA SECRETARY BY: S:\Legal\OurDocuments\Ordinances\15\Campbell-amended agr ord -version 3.doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY Page 2 STATE OF TEXAS COUNTY OF DENTON FIRST AMENDMENT TO EMPLOYMENT AGREEMENT This First Amendment to Employment Agreement (this "First Amendment ") is made and entered into this 5th day of May, 2015 by and between the City of Denton, Texas, a Texas municipal corporation (the "Employer ") and George C. Campbell (the "Employee "), with the Employer and the Employee sometimes being referenced collectively in this Agreement as the "Parties." WITNESSETH: WHEREAS, it is the desire of the Employer to extend the Employment Agreement dated the 1St day of October, 2010 ( "Employment Agreement ") for a one (1) year period pursuant to Section 3.13. of the Agreement; and WHEREAS, the Employee desires to extend the Employment Agreement for a one (1) year period so as to continue employment as the City Manager of the City of Denton, Texas as a City Council appointee; and WHEREAS, the Employer and the Employee also desire to amend the Employment Agreement in connection with the one (1) extension of said Employment Agreement; Now, therefore in consideration of the mutual covenants herein contained, the Parties agree to amend October 1, 2010 Employment Agreement as follows: 1. Section 3.13. of the Employment Agreement is deleted in its entirety and replaced with the following: Unless the Council —at least 30 days before the expiration of the Initial Term — gives the Employee written notice of non - renewal, the terms of this Agreement shall automatically renew for an Extended Term. Unless the Council —at least 30 days before the expiration of any Extended Term once commenced —gives the Employee written notice of nonrenewal, the terms of this Agreement shall automatically renew for an additional Extended Term. There is no limitation on the number of Extended Terms that may occur. 2. Section 5.A. of the Employment Agreement is deleted in its entirety and replaced with the following: Upon Involuntary Separation occurring during the Initial Term or any subsequent Extended Term, the Employee shall be entitled to a lump sum severance payment equal to a full year of the Employee's Total Compensation. 3. Section 5.13. of the Employment Agreement is deleted in its entirety and replaced with the following: Provided that the Employee remains at all times employed as Employer's City Manager for the entire Initial Term of this Agreement or any subsequent Extended Term, the Employee shall thereafter be entitled to receive a full year of the Employee's Total Compensation upon Involuntary Separation, except in the event such Involuntary Separation is due to any of the reasons set forth in Section S.C. of this Agreement, in which case the Employer shall not be obligated to pay and the Employee shall not be entitled to receive any amount as severance payment. 4. Section S.D. of the Employment Agreement is deleted in its entirety and replaced with the following: "Involuntary Separation" means 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 Term or any subsequent Extended Term as set forth in Section 3.13. of this Agreement; or (3) the Employee's resignation upon the Council's reduction or threatened reduction in the Employee's Salary or other financial benefits in a greater percentage than a coinciding 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 this Agreement shall be based on the amount of the Employee's Total Compensation immediately before any such reduction. 5. Section 6.A. of the Employment Agreement is deleted in its entirety and replaced with the following: For the services rendered as the Employer's City Manager, the Employer agrees to pay Employee an annual base salary as set year -to -year by the City Council, 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 sick leave, retirement and pension system contribution, holidays, and other fringe benefits and working conditions as they now exist or hereafter may be amended, shall 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 System, and other benefits as provided to other Council appointees of the City. However, the Employee may elect to not participate in the Employer's health insurance plan, in which case the Employee will be entitled to an additional sum of up to $8,000 annually, which will be paid in installments at the time the Employee's Salary is paid. 6. Except as expressly amended hereby, the Employment Agreement shall remain valid and subsisting as originally provided, and the Employer and the Employee hereby ratify and confirm the Employment Agreement, as amended hereby. 7. Per the Employment Agreement, the one (1) extension period, i.e. the "Extended Term ", shall commence on October 1, 2015. This First Amendment is dated effective on May 5, 2015. IN WITNESS WHEREOF, the Mayor as duly authorized by the Council and on behalf of the City of Denton, has signed and executed this First Amendment and the Employee has signed and executed this First Amendment, both in duplicate, the day and year first above written. CITY OF DENTON, T] .,.X AS CHRIS WA' "S, MAYOR ATTEST: 1 N1 11 ^]f �Al: * "11;RS, CITY SI.k'RJ.,,'T RY 0 of . ..,, GEORGL'. C. C "AMPBE, 1, CITY MANAGER