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Employment Agr ~, ~ EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this IO~ day of January, 1988, by and between the CITY OF SALINA, KANSAS, a municipal corporation, hereinafter called "Employer", as party of the first part, and DENNIS M. KISSINGER, hereinafter called "Employee", as party of the second part, both of whom understand as follows: WITNESSETH: WHEREAS, Employer desires to employ the services of Dennis M. Kissinger as City Manager of the City of Salina, as provided by the City Charter, city ordinances and applicable Kansas statutes; and, WHEREAS, it is the desire of the Governing Body (the "Commission") to provide certain benefits, establish certain conditions of employment and to set working conditions of the Employee; and, WHEREAS, it is the desire of the Commission 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 provide a just means for terminating Employee's services at such time as Employer may desire to terminate his employ; and, WHEREAS, Employee desires to accept employment as City Manager of the City of Salina, Kansas. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows: Section 1. Duties Employer hereby agrees to employ Dennis M. Kissinger as City Manager 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 Commission shall from time to time assign. Section 2. Term A. This Agreement shall become effective on the first day of employment, but no later than February 15, 1988, and shall remain in effect as long as Employee serves as City Manager, unless modified by mutual consent of the parties or terminated as hereinafter provided. B. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the Commission to terminate the services of Employee at any time, subject only to the provisions set forth in Section 3, paragraphs A and B, of this agreement. C. 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 Employer, subject only to the provision set forth in Section 3, paragraph C, of this agreement. Section 3. Termination and Severance Pay A. In the event Employee is terminated by the Commission during such time that Employee is willing and able to perform his duties under this agreement, then in that event Employer agrees to pay Employee a lump sum cash payment equal to three months' aggregate salary; provided, however, that in the event Employee is terminated because of his conviction of any illegal act involving personal gain to him, then, in that event, Employer shall have no obligation to pay the aggregate severance sum designated in this paragraph. B. In the event Employer at any time during the term of this agreement reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction for all employees of Employer, or in the event Employer refuses, following written notice, to comply with any other provision benefiting Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by the Commission that he resign, then, in that event, Employee may, at his option, be deemed to be "terminated" at the date of such reduction or such refusal to comply within the meaning and context of the severance pay provision contained in paragraph "A" above. C. In the event Employee voluntarily resigns his position with Employer, then Employee shall give Employer thirty (30) days notice in advance, unless the parties otherwise agree. Section 4. Salary A. Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $62,000, payable in installments at the same time as other employees of the Employer are paid. -2- ." B. At one year following the effective date of this agreement the Commission shall review the salary and performance of Employee. At such time Employee shall be eligible for a 5% merit increase in base salary, contingent upon good performance, as determined by the Commission. C. Thereafter, periodic reviews of Employee's salary shall be conducted by the Commission, with any adjustments to salary based on such criteria as the Commission deems appropriate, in consultation with Employee. Section 5. Performance Evaluation A. The Commission shall review and evaluate the performance of the Employee at least once annually. The review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee. The criteria may be added to or deleted from as the Commission may from time to time determine, in consultation with the Employee. Further, the Commission shall provide the Employee with a summary written statement of the findings of the Commission and provide an adequate opportunity for the Employee to discuss his evaluation with the Commission. B. Annually, the Commission and Employee shall define such goals and performance objectives which they determine necessary for the proper operation of the City and for the attainment of the Commission's policy objectives. The Commission and Employee shall further establish a relative priority among those various goals and objectives, which goals and objectives shall be reduced to writing. Such goals and objectives shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided. C. In effecting the provisions of this Section, the Commission and Employee mutually agree to abide by the provisions of applicable law. Section 6. Outside Activities Employee agrees that during the term of this Agreement Employee shall remain in the exclusive employ of the Employer. Employee shall not engage in teaching, counseling or other non-Employer connected business without the prior approval of the Commission. Section 7. Moving Expenses Employee shall be reimbursed, or Employer may pay directly, for the expense of packing and moving himself, his family, and his personal property from Miamisburg, Ohio, to -3- " ~'. \ Salina, Kansas, which shall include unpacking, any necessary storage costs and insurance charges. Employer shall also pay any expenses necessary for Employee's spouse to make a separate trip to Salina for the purpose of assisting Employee in identifying a new home for Employee's family. Section 8. Automobile Allowance Employee shall receive an allowance of $325 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 state law. Section 9. Vacation, Sick and Military Leave A. Upon the effective date of this Agreement Employee shall be credited with fifteen (15) days of paid vacation leave and twelve (12) days of sick leave. Thereafter, Employee shall accrue, and have credited to his personal account, paid vacation leave at the rate of fifteen (15) days per year and sick leave at the same rate as other employees of Employer. B. Employee shall be entitled to military reserve leavetime pursuant to state law and City policy. Section 10. Health, Life, and Disability Insurance A. Health Insurance. Employer agrees to provide the City's group medical, hospitalization and dental benefit plan to Employee and his dependents and to pay the premiums thereon equal to that which is provided to all other employees of Employer. B. Life Insurance. Employer agrees to provide the City'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. D. Physical Examination. Employee agrees to submit once per calendar year to a complete physical examination by a qualified physician selected by the Employer, the cost of which shall be paid by the Employer. Employer shall receive a copy of all medical reports related to said examination. Section 11. Retirement The Employer has adopted the International City Manage- ment Association Retirement Corporation (ICMA-RC) deferred compensation program and will allow Employee to participate -4- ~ . , fully in the program. Employee shall have sole authority to determine the amount of Employee's base salary to be deposited in the program. Employer agrees to transfer ownership of the deferred compensation to succeeding employers upon Employee's resignation or discharge. The Employer shall not be required to match or otherwise contribute to said ICMA-RC. Section 12. Dues and Subscriptions Employer agrees to budget and to pay for the professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advancement, and for the good of the Employer. Section 13. Professional Development A. Employer hereby agrees to budget for and to pay the travel 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 International City Management Association, National League of Cities, Kansas Municipal League, City Manager's Association, and other such committee on which Employee serves as approved by the Commission. B. Employer also agrees to budget and to pay for the travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of the Employer. Section 14. General Expenses Employer recognizes that certain expenses of a nonpersonal and generally job-affiliated nature are incurred by Employee, and hereby agrees to reimburse or to pay such general expenses. The Finance Director shall disburse such monies upon receipt of duly executed expenses or petty cash vouchers, receipts, statements or personal affidavits. Section 15. Civic Club Membership Employer recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to become a member of one (1) such civic club or organization, for which Employer shall pay all expenses. -5- Section 16. Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 17. Other Terms and Conditions of Employment A. The Commission, in consultation with the manager, 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. B. All provisions of the City Code, and regulations and rules of the Employer relating to vacation and sick leave, retirement and pension system contributions, holidays and other employee 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 Employer, in addition to said benefits enumerated specifically for the benefit of Employee; provided, however, in the event of a conflict with the express provisions of this agreement, the terms of this agreement shall prevail. Section 18. No Reduction of Benefits Employer shall not at any time during the term of this agreement reduce the salary, compensation or other financial benefits of Employee, except to the degree of such a reduction across-the-board for all employees of the Employer. Section 19. 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. C. This agreement shall become effective commencing February 15, 1988. D. 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 severable, shall not be affected and shall remain in full force and effect. -6- ... . .... .~.~ . . IN WITNESS WHEREOF, the City of Salina, Kansas, has caused this agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and the Employee has signed and executed this agreement, the day and year first above written. ~,~~ Stephen C. Ryan, ayor ATTEST: ~~(;;;&e(2~ obert K. Bi1es, Clty lerk APPROVED AS TO FORM: , City Attorney -7-