2007-124
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First Amendment to Employment Agreement–Resolution No. R2009-037 12/01/09
s.\our dowments\ordinanws\0'Rshepherd - apps ordinancc.doc
ORDINANCE NO. O 7-
AN ORDINANCE APPOINTING STEVE SHEPHERD AS INTERNAL AUDITOR,
APPROVING AN EMPLOYMENT AGREEMENT, AUTHORIZING THE MAYOR TO
EXECUTE THIS AGREEMENT EMPLOYING STEVE SHEPHERD, AND SETTING THE
COMPENSATION AND TERMS OF THAT EMPLOYMENT; AUTHORIZING
EXPENDITURES AND ACTIONS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Internal Auditor has been under the supervision of the City Manager;
and
WHEREAS, the City Charter was amended on November 7, 2006 which was approved
by the City Council by Ordinance No. 2006-232 declaring that the City Auditor shall be
appointed by the City Council; and
WHEREAS, the City Council Appointee Performance Review Committee has
recommended that the City Council appoint Steve Shepherd as Internal Auditor and that he be
employed in accordance with the terms of the Employment Agreement, which is attached to and
made a part of this Ordinance for all purposes;~NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council hereby appoints Steve Shepherd as Internal Auditor and ,
approves the attached Employment Agreement employing Steve Shepherd as Internal Auditor '
and authorizes the Mayor, or in his absence the Mayor Pro Tem, to execute this Employment
Agreement setting the terms of employment, compensation, and duties of the Internal Auditor.
SECTTON 2. The expenditures and all other actions set forth in the Agreement are .
hereby authorized and approved.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the J~- r/9 day of L/1Qi , 2007.
~~c
PE R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
y s.\our documenis\ordinances\07\chepherd - appt ordinanco.doc
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY
BY:
Page 2 of 2
s:\our dowments\wntracls\07\shepherd-employment agreemenLdoc
STATE OF TEXAS
COUNTY OF DENTON
Employment Agreement
This Agreement, made and entered into this ~ day of Chi 2007 by and between the
City of Denton, Texas, a Texas municipal corporation, her '` a~ed "Employer", and Steve
Shepherd, hereinafter called "Employee", both of whom agree as follows:
Witnesseth:
Whereas, Employer desires to employ the services of said Steve Shepherd as Internal Auditor of
the City of Denton as a City Council Appointee; and
Whereas, it is the desire of Employer to (1) secure and retain the services of Employee and to
provide inducement for him to remain in such employment, (2) to make possible full work
productivity by assuring Employee's morale and peace of mind with respect to future security,
and (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of the
Employee; and
Whereas, Employee desires to accept employment as Internal Auditor of said City of Denton,
Texas as a City Council Appointee; and
Whereas, the parties acknowledge that Employee is a member of the Institute of Internal
Auditors (IlA) and that Employee is subject to the IIA Code of Ethics;
Now, therefore, in consideration of the mutual covenants herein contained, the parties agree as
follows:
SECTION 1. DUTIES
Employer hereby engages the employment services of Steve Shepherd as Internal Auditor of said
Employer to perform the functions and duties specified by the Denton City Charter, the City
Code, the laws of the State of Texas, 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 City
Council, and to perform other legally permissible and proper duties and functions as Employer
shall from time to time assign.
SECTION 2. TERM
A. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of
Employer to terminate the services of Employee at any time, subject only to the
provisions set forth in Section 4, paragraphs A and B of this agreement.
B. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the
Employee to resign at any time from his position with the Employer, subject only to the
provision set forth in Section 4, paragraph C, of this agreement.
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C. Employee shall assume the duties of a City Council appointed Internal Auditor on June
18, 2007 and agrees to remain in the exclusive employ of Employer until January 1,
2010, and neither to accept other employment nor to become employed by any other
employer until this agreement is terminated by either party as provided herein. This
agreement shall automatically renew for successive one year terms unless Employer
gives Employee at least 30 day written notice of termination prior to such one year
extension. The term "employed" shall not be construed to include occasional teaching,
writing, or consulting performed on Employee's time off, so long as it is approved in
accordance with Section 8 hereof.
SECTION 3. SUSPENSION/REMOVAL
Subject to the provisions of Section 4 below, Employer may suspend or remove the Employee
with or without full pay and benefits at any time during the term of this Agreement, but only i£
1. Employer and Employee agree, or
2. At least 30 days before the suspension or removal shall become effective, the City
Council shall by a majority vote of its members adopt a preliminary resolution
stating the reasons for his removal. Employee may reply in writing and may
require a hearing at a public meeting of the Council, which shall be held not
earlier than 20 days nor later than 30 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 §551.074. Pending such hearing, the Council may suspend Employee
from duty, but tnay not suspend or reduce his salary. 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 suspension.
SECTION 4. SEPARATION AND SEVERANCE PAY
A. Employee serves at the will and pleasure of the City Council. In the event of his
involuntary separation as Internal Auditor, he shall be entitled to receive a lump sum
payment equal to six months aggregated salary; provided, however, that in the event of
his termination because of his conviction for any offense involving moral turpitude or an
illegal act involving personal gain to him, or as provided in Section 87.013 of the Local
Government Code any act of incompetency, official misconduct, or intoxication on or off
duty caused by drinking an alcoholic beverage; then, in those events, the City shall have
no obligation to pay the aggregate severance sum designated herein.
B. Involuntary separation as used in this section means: (1) his discharge or dismissal by
the City Council; or (2) his resignation following a reduction in salary or other financial
benefits of Employee in a greater percentage than an applicable across-the-board
reduction for all City employees; or (3) in the event the City refuses, following a written
notice, to comply with any other provision benefiting Employee herein. Then, in the
event of one of the occurrences listed above, Employee may, at his option, be deemed
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"terminated" at the date of such reduction in pay or Employer's refusal to comply within
the meaning of the context of the severance pay provision.
C. In the event Employee voluntarily resigns his position with Employer before expiration
of the aforesaid term of his employment, then Employee shall give Employer 30 days
notice in advance, unless the parties otherwise agree.
SECTION 5. SALARY
A. Employer agrees to pay Employee for his services rendered pursuant hereto an annual
base salary of $118,000, payable in installments at the same time as other employees of
the Employer are paid. All provisions of the City Charter, City Code, and Rules and
Regulations of the City adopted by the City Council relating to vacation and sick leave,
retirement and pension system contribution, holidays, and other fringe benefits not
specifically addressed in this agreement, 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.
B. In addition, Employer agrees to increase said base salary and/or other benefits of
Employee in such amounts and to such extent as the Council may determine, within the
approved budget, on the basis of an annual performance review of said Employee made
at the same time as similar consideration is given other Council appointees.
SECTION 6. PERFORMANCE EVALUATION
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 of Denton Internal
Audit Department, and in the attainment of the Council's policy objectives and shall
further establish a relative priority among those various goals and objectives.
C. In effecting the provision of this Section, the Council and the Employee mutually agree
to abide by the provisions of applicable law.
SECTION 7. HOURS OF WORK
It is recognized by both Employer and Employee that the duties of Internal 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 amount of time and energy necessary to carry out those duties
with the highest amount of professionalism possible. That being the case, the parties recognize
that Employee may choose to take personal time off during business hours when it is appropriate
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and when his duties allow. Although this personal time off is not considered vacation, neither is
it to be considered as compensatory time for time spent by Employee in carrying out his duties
outside of normal office hours, as the parties agree that the Employee 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.
SECTION 8. OUTSIDE ACTIVITIES
Employee is entitled to devote whatever amount of time he 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 his duties as Internal Auditor, and provided that Employee first notifies
the Council Appointee Performance Review Committee that he intends to engage in such
activity, including the amount of time he intends to devote to this activity and his engagement in
the activity is approved by the Chair of the Committee.
SECTION 9. AUTOMOBILE
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 $250 per
month for providing such vehicle. The Employee shall be responsible for the purchase,
maintenance, insurance, taxes, etc. for said vehicle. The monthly allowance will be considered
for increase during the performance evaluation process. The Employer also agrees to reimburse
Employee for mileage for out-of-county travel associated with City business at the current IRS
rate for mileage reimbursement in accordance with the then current City Travel Reimbursement
Policy for City employees with car allowances.
SECTION 10. RETIREMENT
A. Employer agrees to execute all necessary agreements provided by the International
City/County Management Association - Retirement Corporation (ICMA-RC) for
Employee's participation in said ICMA-RC retirement plans. Employer further agrees
to contribute six (6) percent of Employee's annual base salary to ICMA-RC's 457 plan.
All sums contributed to said plans shall be in addition to Employee's base salary.
Employer also agrees to allow Employee to contribute whatever portion of his base
salary he may deem appropriate to said plan, including "catch-up" provisions.
B. 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 sick
leave, vacation leave, holidays, and other benefits then accrued or credited to the
Employee in accordance with Employer's current policies for compensation 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 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.
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SECTION 11. DUES, MEMBERSHIPS AND SUBSCRIPTIONS
Employer agrees to budget and to pay for the professional dues, memberships and subscriptions
of Employee necessary for his continuation of full participation in national, regional, state and
local associations and organizations necessary and desirable for his continued professional
participation, growth and advancement as Internal Auditor, and for the good of the Employer in
amounts that are approved by the City Council in the annual budget for the City's Internal Audit
Department.
SECTION 12. 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 the
Institute of Internal Auditors (IIA), the Association of Local Governrnent Auditors (ALGA), and
other such national, regional, state and local groups and committees thereof which Employee
serves as a member in the amounts approved by the City Council in the annual budget for the
City's Internal Audit Department.
SECTION 13. BONDING
Employer shall bear the full cost of any fidelity or other bonds that may be required of the
Employee under any law or ordinance.
SECTION 14. OTHER TERMS AND CONDITIONS OF EMPLOYMENT
A. The City 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 time, 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 Charter or any other law,
and are memorialized by a written amendment to this Agreement.
B. All provisions of the City Charter and 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 they now exist or hereafter may be
amended, also shall apply to Employee as they would to other employees of the
Employer in addition to said benefits enumerated specifically for the benefit of
Employee.
SECTION 15. GENERAL PROVISIONS
A. The text herein shall constitute the entire agreement between the parties.
B. This agreement shall be binding upon and inure to the benefit of the heirs at law and
executors of Employee.
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C. If any provision, or any portion, thereof, contained in this agreement is held
unconstitutional, invalid, or unenforceable, the remainder of this agreement, or portion
thereof, shall be deemed several, shall not be affected and shall remain in force and
effect.
D. The venue of any litigation involving this Agreement shall be in a court of competent
jurisdiction sitting in Denton County, Texas.
SECTION 16. APPROPRIATIONS
The Employer agrees that it will appropriate, set aside and encumber funds of the City in an
amount 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.
IN WITNESS WHEREOF, the Mayor as duly authorized by the City 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.
CITY OF DENTON, TEXAS
PERRY R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS,1CITY SECRETARY
` 1
BY: ~
APPROVED AS TO LEGAL FORM:
EDV
BY:
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