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Interim City Manager Employment Agreement Interim City Manager Employment Agreement Introduction This Interim City Manager Employment Agreement ("Agreement") is made and entered into this 18`h day of June 2018, by and between the City of Salina, Kansas, a municipal corporation, ("Employer") and Michael D. Schrage{"Employee"), an individual who currently serves the Employer as its Deputy City Manager; who has education, training and experience in local government management; and who, as a member of ICMA, is subject to the ICMA Code of Ethics. This Agreement is made for the limited purpose and within the limited scope of addressing the terms of Employee's temporary appointment and service as Interim City Manager pending Employer's permanent appointment of a City Manager pursuant to terms appropriate for such appointment. Employer and Employee agree as follows: Section 1: Term of Agreement This Agreement shall remain in full force and effect from the date first stated above and shall remain in effect as long as necessary to fulfill its terms. Section 2: Term of Employment as Interim City Manager, Duties and Authority A. Interim Appointment: Employer agrees to appoint Employee as Interim City Manager commencing July 30, 2018 to perform the functions and duties specified in the City Charter, city ordinances, and applicable Kansas statutes, and to perform other legally permissible and proper duties and functions as the Employer's governing body may assign; and ending upon either (1) Employer's permanent appointment and the commencement of employment of a city manager or (2) the decision of the Employer, the Employee, or the Employer and Employee mutually to terminate the Employee's employment as Interim City Manager prior to the commencement of employment of a city manager. Under either scenario (1), if a person other than Employee is permanently appointed city manager, or scenario (2), Employee shall be offered reinstatement as deputy city manager effective upon completion of Employee's term as Interim City Manager. B. Additional Assistance: In recognition of Employee's current role and Employee's role while serving as Interim City Manager, Employee is authorized in anticipation of and while serving as Interim City Manager to contract for or otherwise procure additional assistance in performing the functions of the office of the City Manager. Section 3: Compensation A. Salary: In recognition of the roles Employee will be performing, both in anticipation of and while serving as Interim City Manager, Employer agrees to pay Employee his annual base salary as Deputy City Manager plus the additional sum of$2,500 per month commencing as of the date of this Agreement and continuing until and for so long as Employee is employed as Interim City Manager, payable in installments at the same time that the other management employees of the Employer are paid. B. Pay Plan Adjustments: Employee's base salary under this agreement shall be automatically adjusted by the same percentage and at the same time as any adjustments to the Employer's overall pay plan approved by the Employer's governing body. C. Periodic Review: Employee's current periodic review date is December 15, 2018. Considering Employee's modified role and supervision along with the inherent modification of Employee's previously established performance objectives, Employee shall receive an increase in base salary of 2.5% as of December 15, 2018 if Employee continues to serve as Interim City Manager as of that date. Section 4: Health, Disability and Life Insurance Benefits A. Health Insurance: The Employer agrees to provide and pay the premiums for the City's group health, hospitalization, and dental benefit plan for the Employee and his dependents equal to that which is provided to all other employees of the Employer. B. Life Insurance: Employer agrees to provide the Employer's group term life insurance policy to the Employee upon the same basis as all other employees of the Employer and to pay the premiums thereon. C. Disability Insurance: Employer agrees to provide the Employee with disability insurance coverage on the same basis as all other employees of the Employer. Section 5: Vacation and Sick Leave A. Vacation: Employee shall continue to accrue, and have credited to his personal account, paid vacation leave at the rate of one hundred and twenty-eight (128) hours per year. Employer acknowledges that Employee has a family vacation scheduled from July 14 through July 24, 2018. B. Sick Leave: Employee shall accrue and be entitled to use and/or be compensated for sick leave at the same rate as other employees of the Employer. Section 6: Automobile Allowance Employee shall continue to receive an allowance of $436 per month for business use of his vehicle. For business trips outside the City, Employee shall receive additional compensation for each mile driven pursuant to the city mileage reimbursement policy. Section 7. Retirement Employer participates in the Kansas Public Employees Retirement System (KPERS). Employee qualifies for participation under KPERS. Employer agrees to pay on behalf of Employee all KPERS determined costs on the same basis as all other employees of the Employer. Section 8: General Business Expenses A. Dues and Subscriptions: 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. B. Professional Development: 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 League of Kansas Municipalities (LKM), Kansas Association of City/County Management (KACM), and such other national, regional, state, and local governmental groups and committees in which Employee serves as a member. Employee agrees to annually attend a professional or personal development seminar in addition to the ICMA, LKM, and KACM annual conferences. C. Civic Club Dues: 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 continue his membership in the local chapter of Ambucs. Section 9: Termination For the purpose of this agreement, termination shall occur: 1. If a 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 City Charter, city ordinances, or Kansas law 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 Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this agreement and will be regarded as a termination: 4. 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; 5. If Employer fails to otherwise comply with the terms of this Agreement after 30 days- written notice from Employee of Employer's failure to comply; 6. If Employee is not fully reinstated to his employment as Deputy City Manager following his service as Interim City Manager; or 7. If, following Employee's reinstatement to his employment as Deputy City Manager under Section 2.A., Employee is terminated within nine (9) months following the date of his reinstatement as Deputy City Manager, whether at the direction of the Employer's governing body or at the discretion of the City Manager. Section 10: Severance If termination of the Employee occurs as defined in Section 9 above during such time that Employee is willing and able to perform his duties under this Agreement, then in that event, Employer agrees to: 1. Pay Employee a cash payment equal to nine (9) months base salary and car allowance, to be paid in a lump sum unless otherwise agreed by Employer and Employee; 2. Pay the cost to continue for a pe'riod of nine (9) months the health, hospitalization, dental and life insurance benefits referred to in Section 4 above; and 3. Pay Employee for all accrued vacation and sick leave in accordance with Employer's policy. If the Employee is terminated, however, because of a conviction or either a felony or any illegal act involving personal gain to him, then the Employer is not obligated to pay severance under this section. Section 11: Resignation In the event that the Employee voluntarily resigns his position with he Employer, the Employee shall provide a minimum of 30 days-notice, unless the parties agree otherwise. Section 12: Evaluations The Employer and the Employee shall semi-annually define and evaluate goals and performance objectives which they determine necessary for the proper operation of the City and for the attainment of the governing body's policy objectives. Definition and evaluation of such goals and performance objectives shall be subject to a process, form, criteria, and format which shall b mutually agreed upon by the Employer and Employee. 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. Section 14: Outside Activities The employment provided for by this Agreement shall be the Employee's sole employment. Employee may engage in specific teaching roles, with he Employer's advance consent. Section 15: Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 16: Other Terms and Conditions of Employment A. Terms and Conditions: 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 provision s of the Agreement, the City Charter or any other law. • B. Other Benefits: Except as otherwise provide in this Agreement, the Employee shall be entitled to the highest level of benefits that are enjoyed by other employees of the Employer as provided in the City Charter, city ordinances, personnel policies, or by practice. Section 17: General Provisions • A. 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 term of this Agreement. Such amendments shall be incorporated and made a part of this Agreement. B. 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. C. 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. EXECUTED by the duly authorized representatives of the parties on the day and year first stated above. CITY OF SALINA, KANSAS By: .. - t,-- Karl F. Ryan, Mayor ATTEST: • By: 1/14andi ince Shandi Wicks, City Clerk, CMC MICHAEL D. SCHRAGE Mi hael D. Sc .ge