City Manager Employment Agreement - 2019 CITY MANAGER EMPLOYMENT AGREEMENT
This Agreement dated January 7. 2019 is made between the CITY OF SALINA, KANSAS. a
Kansas municipal corporation. (the "City") and MICHAEL D. SCHRAGE (the "City Manager).
Section 1: Term
This Agreement commences January 7; 2019 and will remain in effect, subject to amendment in
writing by the mutual consent of the parties, until terminated by the City or the City Manager
pursuant to its terms. For purposes of the City Manager's employment pursuant to this Agreement.
the City Manager will retain the City Manager's current city-employment anniversary date of
December 16.
Section 2: Duties and Authority
The City employs the City Manager to perform the functions and duties of the city manager
specified in the applicable Kansas statutes, the City Charter, and city ordinances; and to perform
other legally permissible and proper duties and functions as the City's governing body may assign.
The City Manager is a member of the International City Managers Association (ICMA) and is
subject to the ICMA Code of Ethics.
Section 3. Compensation
A. Base Salary. The City agrees to pay the City Manager an annual base salary of 5166,000,
payable in installments when the other management officials of the City are paid. The City
Manager's base salary may be modified upon approval by the governing body under the following
subsection 3.B. or 3.C. without formal amendment of this Agreement.
B. Pay Plan Adjustments. The City Manager's base salary under this Agreement shall be
automatically adjusted by the same percentage and at the same time as any official pay plan
adjustment approved by the governing body.
C. Annual Review. Annual reviews of the City Manager's base salary will be conducted by the
governing body in conjunction with the annual performance review addressed in Section 12 below.
Any adjustments to the City Manager's base salary will be made upon approval by the governing .
body based upon such criteria as the governing body deems appropriate, in consultation with the
City Manager.
Section 4: Term Life Insurance Benefits
In addition to the City's group term life insurance provided by the City for all other classified full-
time employees of the City, the City also agrees to fund the cost of providing the City Manager
with an additional 51,000,000 term life insurance policy (the "Term Policy").yThe City Manager
agrees to procure the Term Policy for a competitive premium and will be the owner of the policy.
The City agrees to reimburse the City Manager for the approximate cost of the Term Policy as an
income-taxable benefit to the City Manager by reimbursing the City Manager in the amount of
135% of the actual premium cost.
Section 5. Vacation
The City Manager will annually earn and have credited to the City Manager's personal account
paid vacation leave of twenty (20) days. The director of human resources is authorized to
administer the credit and/or accrual of City Manager's vacation benefit as closely as possible to
all other classified full-time employees. All other city vacation policies applicable to classified
full time employees will apply to the City Manager.
Section 6: Automobile Allowance
The City Manager will receive an allowance of $500 per month for business use of the City
Manager's vehicle. For trips outside the city relating to the business of the City; the City Manager
will receive additional compensation for each mile driven pursuant to the City's mileage
reimbursement policy.
Section 7. ICMVLA-RC
In addition to the City Manager's participation in the Kansas Public Employers Retirement System
(KPERS)as an employee of the City, the City agrees to execute all necessary agreements provided
by the International City Managers Association Retirement Corporation (ICMA—RC) for the City
Manager's participation in the ICMA—RC retirement plan and, in addition to City Manager's base
salary, pay on the City Manager's behalf an amount equal to five percent (5%) of the City
Manager's base salary into the ICMA—RC plan designated by the City Manager in equal
proportionate amount each pay period.
Section 8: General Business Expense
A. Dues and Subscriptions. The City agrees to pay for professional dues and subscriptions
necessary for the City Manager's full participation in national, regional, state, and local
associations and organizations which promote the City Manager's professional development.
B. Participation in Professional Development and City-related Functions. The City agrees to pay
for travel and subsistence expenses of the City Manager for professional and official travel,
meetings, and occasions to adequately continue the professional development of the City Manager
and to pursue necessary official functions for the City, including but not limited to the ICMA
Annual Conference, the League of Kansas Municipalities (LICA), Kansas Association of
City/County Management (KACM) and other national, regional, state, and local governmental
groups and committees in which the City Manager serves as a member.
C. Job-related Expenses. The City recognizes that certain job-related expenses will be incurred
by the City Manager and agrees to either pay or reimburse the City Manager for those expenses
upon submission of duly executed expense or petty cash vouchers, receipts, statements,or personal
affidavits to the director of finance in accordance with the City's reimbursement policies.
D. Civic Club Dues. The City acknowledges the value of having the City Manager participate in
local civic organizations. The City agrees to pay the reasonable membership fees and/or dues
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required for the City Manager to participate as an active member of two local civic organizations
of the City Manager's choice.
Section 9: Termination
For the purpose of this Agreement, termination shall occur:
1. If a majority of the governing body votes to terminate the City Manager at a duly authorized
public meeting;
2. If the governing body, citizens or legislature acts to amend any provisions of the City Charter,
city ordinances, or Kansas law pertaining to the role; powers; duties, authority, or responsibilities
of the City Manager's position that substantially changes the form of government, the City
Manager shall have the right to declare that such amendments constitute termination;
3. If the governing body reduces the base salary, compensation, or any other financial benefit of
the City Manager,unless it is applied in no greater percentage than the average reduction of all
city department heads, such action will be regarded as a termination;
4. If the City Manager resigns following an agreement to accept the City Manager's resignation,
whether formal or informal, as representative of the desire of the majority of the City's governing
body that the City Manager resign, then the City Manager may declare a termination as of the date
the offer to accept resignation was communicated to the City Manager; or
5. If the City fails to otherwise comply with the terms of this Agreement after 30-days' written
notice from the City Manager to the governing body of the City's failure to comply.
Section 10: Severance
If termination of the City Manager occurs as defined in Section 9 above during such time that the
City Manager is willing and able to perform the duties under this Agreement, then in that event,
the City agrees to:
1. Pay the City Manager a cash payment equal to six (6) months base salary and car allowance, to
be paid in a lump sum unless otherwise agreed by the City and the City Manager;
2. Pay the cost to continue for a period of six (6) months the health, hospitalization, dental and life
insurance benefits referred to in Section 4 above; and
3. Pay the City Manager for all accrued vacation and one-third (1/3) of sick leave balance.
If the City Manager is terminated,however,because of a conviction of either a felony or any illegal
act involving personal gain to him, then the City is not obligated to pay severance under this
section.
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Section 11: Resignation
If the City Manager voluntarily resigns from the position of city manager. the City Manager agrees
to provide a minimum of 60-days' notice, unless the parties agree otherwise.
Section 12: Evaluations
The governing body will evaluate the City Manager's performance based upon criteria and a
format established by the governing body, in consultation with the City Manager, and
communicated to the City Manager in writing at the outset of the evaluation period. In order to
assure that the City Manager is evaluated by the governing body that established the evaluation
criteria for the applicable evaluation period, the governing body agrees to evaluate the City
Manager after the City Manager's first six (6) months of service, prior to the City Manager's next
employment anniversary date of December 16, 2019, and prior to the City Manager's annual
anniversary date of December 16 annually thereafter. In addition to those scheduled evaluations,
the governing body reserves its right to further evaluate the City Manager's performance at any
other time it chooses.
Section 13: Hours of Work
It is recognized that the City Manager must devote a great deal of time outside the normal office
hours on business and performing work for the City. For those reasons (a) the City Manager shall
be allowed to establish an appropriate work schedule and (b) the City agrees to provide the City
Manager with a computer system comparable to the office technology provided to city employees
for installation at the City Manager's residence and use by the City Manager in the performance
of city work outside normal office hours.
Section 14: Outside Activities
The employment provided for by this Agreement shall be the City Manager's sole employment.
The City Manager may engage in specific teaching roles, with the governing body's advance
consent.
Section 15: Bonding
The City shall bear the full cost of any fidelity or other bonds required of the City Manager under
any law or ordinance.
Section 16: Other Terms and Conditions of Employment
A. Terms and Conditions. The City, only upon agreement with the City Manager, shall fix any
such other terms and conditions of employment, as it may determine from time to time, relating to
the performance of the City Manager, 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. Except as
otherwise provided in this Agreement, the City Manager shall be subject to all other terms and
conditions of employment as provided in the City Charter, city ordinances, city personnel policies,
or by practice.
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B. Other Benefits. Except as otherwise provided in this Agreement, the City Manager shall be
entitled to the highest level of benefits that are enjoyed by all other classified full-time employees
of the City as provided in the City Charter, city ordinances, city personnel policies, or by practice.
C. Physical Examination. The City Manager agrees to undergo a physical examination by the City
Manager's primary care physician once each calendar year. The City Manager will be reimbursed
by the City to the extent the cost of the examination exceeds the city group health coverage. The
examining physician will make a written determination of the City Manager's ability to perform
the essential functions of the city manager position for transmission to the director of human
resources to be retained in the City Manager's confidential medical records personnel file. If the
examining physician's report notes restrictions or limitations, the human resources director shall
advise the governing body of those restrictions or limitations.
Section 17: General Provisions
A. Integration. This Agreement sets forth and establishes the entire understanding between the
City and the City Manager relating to the employment of the City Manager by the City. 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 City and the City Manager as well as
the City Manager's heirs, beneficiaries, and personal representatives.
C. Severability. The invalidity or partial invalidity of any portion of this Agreement will not affect
the validity of any other provision. If 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 MICHAEL D. SCHRAGE
I/ I
By: I �,
a F' .
Karl F. Ryan, Mayor Mi' ael D. S. age
ATTEST:
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By: ;a/U41Ak &Died
Shandi Wicks, City Clerk. CMC
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