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2017-025S:\Legal\Our Documents\Ordinances\17\City Auditor Ord.doc I AN ORDINANCE APPROVING AN EMPLOYMENT AGREEMENT FOR THE CITY AUDITOR AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT SETTING THE COMPENSATION AND TERMS OF THAT EMPLOYMENT; AUTHORIZING EXPENDITURES AND ACTIONS; AND PROVIDING AN EFFECTIVE D. WHEREAS, the City Council desires to employ a City Auditor for the City of Denton; IM WHEREAS, the City Council finds that this Ordinance is in the public interest; NOW, THEREFORE, 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 an Employment Agreement for the City -AU4 = acid authorizes the Mayor to execute the Agreement on behalf of the City. et 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 day . .. . .... . .......... . . . CIIR, S WATTS, MAYOR WW ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: API) OVED Ali 1'0 LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: STATE OF TEXAS Employment Agreement 4-11 This Employment Agreement (this "Agreement") is made and entered into this Li day of 2017 by and between the City of Denton, Texas, a Texas municipal corporation Wt'l� "Employer") and Craig J. Hametner (the "Employee"), with the Employer and the Employee sometimes being referenced collectively in this Agreement as the "Parties." WHEREAS, it is the desire of the Council to: (1) secure and retain the services of the Employee and to provide inducement for the Employee to remain in such employment; (2) make possible full work productivity by assuring the Employee's morale and peace of mind with respect to future security; and (3) act as a deterrent against malfeasance or dishonesty for personal gain on the part of the Employee, and WHEREAS, the Employee desires to be employed as City Auditor of said City of Denton, Texas as a Council appointee; and NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: 9"NORK I I In this Agreement, the following words and phrases shall have the following meanings: ,Base Salary means the monetary amount stated in Section 6.A. of this Agreement that the Employee is entitled to as an annual base salary — or, if no longer current, then the monetary amount that the Employee is currently entitled to as an annual base salary as approved by the Council — and does not include the value of any other benefit of employment or other amount, Commenc,mi means the date on which Employee reports to work, on February 27,2017. means the Employee's: (1) removal by the Council under Section 4 ofthis Agreement;, or (2) the fmployce`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 employee& 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 Base Salary Immediately before any such reduction. c:\users\hametner\downloads\city auditor contract (2).doe TcrLn of , A Incans the two-year time period beginning on the Conirricricemcrit Date and ending on February 26, 2019, during which this Agreement. shall be in full force and effect if not earlier terminated in accordance with the provisions of this Agreement. Terrijination Date means the to upon which this Agreement terminates under any applicable provision of thi s Agreement. Total_ CoiDpqns means the combined sum of the Employee's Base Salary and t 41 monetary value of all other benefits that the Employee is entitled to under this Agreement al ttherwise as an Employee of Employer. M Employer hereby engages the employment services of the Employee as City Auditor of said Employer 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"), and all other applicable laws, and as outlined in the City of Denton's job description as it now exists or as it may exist with future modifications by the Council and agreed upon by the employee, and to perform other legally permissible and proper duties and functions as Employer shall from time to time assign. SECTION 3. TERM A. The Tenn of this Agreement is two years beginning on the Commencement Date, on February 27, 2017 and ending on February 26, 2019. B. This Agreement may be terminated before the expiration of the Term by the Employer or the Employee under applicable provisions of this Agreement. If the Employer terminates this Agreement, it must do so by following the procedures set forth in Section 4 of this Agreement. 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. The Employer may suspend the Employee prior to any removal of the Employee but may not suspend or reduce Employee's salary prior to effecting the hearing and removal provisions of . this Section. At least 30 calendar days before any removal shall become effective, the Council shall by a majority vote or its members adopt a preliminary resolution of removal. Employee 'nay reply in writing and may require a hearing at a public meeting of the Council, which shall be held not earlier than 20 calendar days and not later than 30 calendar days after the filing of such request. The hearing may be held in executive session, at the option of the Council, unless Employee requests the hearing be held in open session in accordance with Tex. Gov't Code §55 J074. After such hearing or public hearing, if one be requested, and after full consideration, the Council by majority vote may adopt a final resolution of removal or reinstatement, This Agreement shall be deemed to terminate on the effective date of a final resolution of removal. c:\users\hametner\downloads\city auditor contract (2).doc A. Upon Involuntary Separation occurring during the Term of the Agreement, the Employee shall be entitled to a lump sum severance payment in an amount not to exceed six month's base salary and only those benefits paid other non -civil service employees upon termination pursuant to policy in effect at the time of separation. At the option of the Employee, Employee may take administrative leave with pay for six months during which time Employee will continue to enjoy City employment benefits in which he is already enrolled but will not accrue additional vacation or sick leave. Such severance payment shall be the sole remedy of Employee and acceptance shall constitute a waiver of existing claims Employee may have which may arise by virtue of employment with or resignation or removal from the City, including, without limitation, any claims against the City, its officers and employees, agents, affiliates and subsidiaries including, but not limited to, breach of Conti -act, tort, First and Fourteenth Amendment to the U.S. Consi ' itution, 42 U.S,C. Section l983, and any and all other claims which might arise under local, state, or federal fair employment practices or ernployrnent benefit laws, workers' compensation law, rights and claims arising under the Age Discrunination in Employment Act, Texas Payday & Whistleblower Laws, Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the'T"exas Commission on Human Rights Act. B. Notwithstanding Section 5.A. or any other provision of this Agreement, the Employer shall not be obligated to pay and the Employee shall not be entitled to receive any amount as severance payment if the Employee's separation from employment is due to the Employee's committing an act involving: (1) moral turpitude; (2) (111 illegal act(s) resulting in personal gain to the Ernployee, or (3) Conviction of a felony or Class A misdemeanor. A. For the services rendered as the Employer's City Auditor, the Employer agrees to pay Employee an annual base Salary of $125,000 and as set year to year by the City Council in future years, payable in installments at the same time as other employees of tyle 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 and retirement under the Texas Municipal Retirement System. Employee shall accrue vacation and sick leave on the same basis as all other employees of the City except that Employee will start employment with five days of banked vacation. B. In addition, Employer agrees to increase the Employee's Salary and/or other employment benefits to such extent as the Council may determine within the c:\users\hametner\downloads\city auditor contract (2).doc approved budget that it is desirable to do so on the basis of an annual performan review of the�/'1 1 .11':1 '^� The Employee is required to be on call for 24-hour service, so therefore, must have access to a vehicle for City business, Employer shall grant to the Employee a car allowance of $300 per monthfor providing such vehicle, "I"fic Employee shall be responsible for the purchase maintenance, insurance, taxes, etc. for said vehicle. 'I"he monthly allowance will be considered for increase during the performance evaluation process. The Employer also agrees to reimburse Employee for mileage outside a 50 -mile radius of the City of Denton associated with City business at the current IRS rate for mileage reimbursement in accordance with the then current City 111'ravel Reimbursement Policy for City employees with car allowances. i111, i1 k I Ox"0410i , , I I A. The Council shall review and evaluate the performance 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 and Employer. Said criteria may be added to or deleted from as the Council and Employee shall agree. B. Annually, the Council and Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the City and in the lie attainment of the Council's policy objectives and shall further establish a relative priority an-iong those various goals and objectives. It is recognized by both Employer and Employee that the duties of City Auditor require a great deal of time outside of normal office hours. It is also recognized by the Parties that Employee is required to devote the arnount of time with the highest amount f 1 oonaljsrn possible. That belng the case, the Parties recognize that Employee may choose to take personal time offduring business hours when it is appropriate and when the Employee's duties allow. Although this personal time off is not considered vacation, neither is it to be considered as coinpensatory time for time spent by Employee in can),ing out the Employee's duties out")ide of normal office hours, as the Parties agree that the FEmployee must devote the amount of time necessary to fulfill those duties. The Council will consider the Employee's use of personal time off during the performance evaluation. c:\users\hametner\downloadskeity auditor contract (2).doc L N I Employee is entitled to devote whatever arnount of time the Employee feels is appropriate under the Circumstances to the pursuit of teaching, Counseling, consulting, writing 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 Auditor, and provided that Employee first notifies the Council Appointee Performance Review Committee that the Employee intends to engage in suchactivity, including the amount of time the Employee intends to devote to this activity and the Employee's engagement in the activity is approved by the Chair of the Committee, Any membership on a Corporate Board shall also require notice to the Council Appointee Performance Review Committee be al,,)proved by the Chair. SECTION 11. RETI"MENT If the Employee retires pursuant to a qualified retirement plan, or is permanently disabled during the term of this Agreement, the Employee shall be compensated for vacation leave, holidays, and other benefits then accrued or credited to the Ernployce in, accordance with Frnployer's current policies for compensation for these benefits, and, at 7 the Employee's option, shall be permitted to continue to participate In the City's health insurance plan on the same basis, as other retirees from the City are permitted to do so, or, if such other retirees are not permitted to do so, at the cost of the Employee. I Employer agrees to budget and to pay For the professional dues, niernberships and subscriptions of Employee necessary for the Employee's continuation of fullparticipation in national, regional, state and local associations and organizations necessary and desirable for the Employee's continued professional participation, growth and advancement as City Auditor, and for the good of the Employer in amounts that are approved by the Council in the annual budget of the City of Denton. 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 adequatcly pursue necessary official and other functions for Employer, including but not limited to the Texas Municipal League, and, other sue]-, national, regional, state and local groups and committees thereof which Employee serves as a member in the amounts approved by the Council in the annual budget for the City of Denton. Employer shall bear the Full cost of any fidelity or other bonds that may be required of the Employee: under any law or ordinance. c:\users\hametner\downloads\city auditor contract (2).doc 1 0 1 A. The Council, upon recommendation of the Council Appointee Performance Review Committee and in consultation with the Employee, shall fix any such other terms and conditions of employment as it may determine from time to tirne, relating to the performance of Employee, provided stich terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the City Charter or any other law, and are memorialized by a written amendment to this Agreement, B. All provisions of the City Charter and City Code, and regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holiday, and other fringe benefits and working conditions as the.v n()w exist or hereafter may be amended, also shall apply to Employee as they wotild to other employees of the Employer in addition to said benefits enumerated specifically for the benefit of Employee, if Employee chooses to relocate, Employee will receive three (3) bids from bonded and licensed moving companies and present these bids to the City. The Employee will select the lowest, bidder for his moving company and must take this benefit within six months of initiation of employment. The City's relocation policy will apply in all other respects. A, The text herein shall constitute the entire agreement between the Parties, W. If any provision, or any portion, thereof, contained in this Agreement is heli unconstitutional, invalid, or unenforceable, the remainder of this Agreement, o -r - portion thereof, shall be deemed severable, shall not be affected and shall remain in force and effect. C. The venue of any litigation involving this Agreement shall be in a court of competent jurisdiction sitting in Denton COLInlyt,' Texas. The Employer agrees that it will appropriate, set aside and encumber funds of the City in an arnount sufficient to -fund and pay all 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 19. EFFECTIVE DATE This Agreement shall take effect o d NN cAuser3%=etaer\down1oads\city auditor contract (2).doc IN WITNESS WI 1ER1. OF, the Mayor as duly authf by the Council and on bchalf of the City of Denton, has signed an , d executed this Agreement and the 1"Anployee has signed and executed this Agreement, both in duplicate, the day and year first above Writteti, JE 1II ER WA ERS, CITY SECRETAR Y APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: CITY OF II)EN-rON, TEXAS x/ Z "I,, AW'S, MA' CRAIG J IA'- 'I"NER