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HomeMy WebLinkAboutC2011-186 - 3/22/2011 - ApprovedEMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI This Employment Agreement ( "Agreement "), made and entered into this V63 of March 2011 ( "Effective Date "), by and between the City of Corpus Christi ( "City"), a municipal corporation, (hereinafter called "Employer ") and Ron Olson, (hereinafter called "Employee "), both of whom agree as follows: Section 1: Term. 1.01. This Agreement shall remain in full force and effect from the Effective Date until terminated by the Employer (acting by and through its City Council) or Employee as provided in Sections 9, 10 or 11 of this Agreement. Section 2: Duties and Authority. 2.01. Employer agrees to employ Employee as City Manager, which position shall be the chief administrative and executive officer of the City, and Employee agrees to perform the functions and duties specified in Article III of the Charter of the City of Corpus Christi attached hereto as EXHIBIT A (ARTICLE I11) and other legally permissible and proper duties of the position of the City Manager, including those lawfully directed by the City Council, and to perform such duties in accordance with and subject to the City of Corpus Christi Code of Ordinances, the laws of the State of Texas and the laws of the United States. 2.02. The Employee further agrees to be bound by the Corpus Christi Code of Ethics and the Code of Ethics with Guidelines of the International City /County Management Association, as may be amended from time to time. A copy of the Code of Ethics is attached hereto as EXHIBIT B (ICMA CODE OF ETHICS WITH GUIDELINES). 2.03. Texas law shall govern any conflict between the ICMA Code of Ethics and this Agreement. To the extent a conflict arises, the terms of this Agreement shall control. Section 3: Compensation. 3.01. Base Salary: The Employee shall be paid Seven Thousand Six Hundred and Fifteen Dollars and 38/100 ($7,615.38) every two weeps (or the equivalent of an annualized salary of $198,000,00) or at such intervals as other management employees of the City are paid. 3.02. Performance Bonus. In addition to the Base Salary set forth herein, the Employee shall be eligible to receive a bonus, as determined in the sole discretion of the Employer, based on his successful completion of specified goals established by the City Council, 3.03. The Employer agrees to consider an increase in the compensation of the Employee dependent upon the results of the performance evaluation conducted under the provisions of Section 12 of this Agreement. Increased compensation can be in the form of a salary increase and /or a bonus, at the Employer's discretion. 3.04. This Agreement shall be automatically amended to reflect any salary adjustments that are provided. 3.05. Deferred Compensation. The City shall provide the Employee with annual deferred compensation in the maximum amount allowable under the IRS regulations, in effect and as amended, and otherwise consistent with HR 17.0 (DEFERRED COMPENSATION — DRAG -UP PAY Employment Agreement for City Maliag�b( the City of Corpus Christi Page 1 of 14 INITIAL HERE: !A [to 2011 -186 M2011 -069 03/22/11 IND� I Olson, Ron 5.04. Employer agrees to grant Employee an exception to the Employer's Benefit Plan and hereby grants Employee access to a bank of 10 vacation days upon the commencement of employment. 5.05. The Employee is entitled to accrue leave and to be compensated for all accrued leave, on the same basis as other similarly situated City employees, in accordance with Employer's policy in effect at the time, unless such right is expressly negated by the terms of this Agreement. 5.06. The Employee shall be entitled to military reserve leave time pursuant to the provisions of Employer's policy, and consistent with state law and federal law, 5.07. For purposes of this Agreement, the Employee shall be deemed to be a "key employee" as defined by the Family Medical Leave Act ( "FMLA "), and shall be afforded all rights and protections afforded by the FMLA, any amendments thereto, and the case law and regulations interpreting FMLA. Section 6: Monthly Vehicle Allowance. 6.01. The Employer agrees to pay to the Employee, during the term of this Agreement and in addition to other salary and benefits herein provided, the sum of Six Hundred Dollars and No /Cents ($600,00) monthly, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. 6.02. The Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of said vehicle. 6.03. The Employer shall reimburse the Employee at the IRS standard mileage rate for any business use of the vehicle beyond the greater Corpus Christi metropolitan area. For purposes of this Section, use of the car within the greater Corpus Christi metropolitan area is defined as travel to locations within a mile twenty -five (25) mile radius of Corpus Christi City Hall. 6.04. The Employee agrees that such monthly vehicle allowance shall be declared as income to the Employee in annual tax reporting. Section 7: Retirement. 7.01. The Employer agrees to enroll the Employee into the Texas Municipal Retirement System ( "TRMS ") and to make all the appropriate contributions on the Employee's behalf on the same basis as other similarly situated City employees. Section 8: General Business Expenses. 8.01. Employer agrees to budget for membership dues in 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 in such national, regional, state, and local governmental groups and committees in which the Employer determines it is in the best interests of the City that the Employee serve as a member. 8.02. The Employer expressly agrees to budget for membership dues in and to pay for travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions to adequately cont-irfue the professional development of Employee and to pursue Employment Agree en for City�tana�er of the City of Corpus Christi Page 3 of 14 INiTIAL HERE !A Ro � necessary official functions for Employer in and at the International City /County Management Association ( "ICMA ") Annual Conference and meetings of the Texas City Management Association ( "TCMA "). 8.03. The Employer recognizes that certain expenses of a non - personal but job- related nature are incurred by Employee, and agrees to reimburse or to pay said general expenses. The Employer will disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits submitted timely and consistent with the requirements of Employer's reimbursement policies. 8.04. In addition, the Employer shall provide for the technology and communication needs of Employee through its operations budget. Section 9: Termination. For the purpose of this Agreement, termination shall occur when: 9.01. The majority of a quorum of the governing body votes to terminate the Employee at a duly authorized public meeting, as stated in Article III of the City of Corpus Christi Charter. 9.02. If any provisions of Article III of the City of Corpus Christi Charter pertaining to the rote, powers, duties, authority, or responsibilities of the Employee's position are amended in a manner that substantially changes the form of government, the Employee shall have the right to declare that such amendments constitute termination. 9.03. 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. 9.04. If the Employer determines in good faith that the Employee has become unable to perform the essential functions of the job with or without reasonable accommodations, as those terms are interpreted in accordance with the Americans with Disabilities Act ( "ADA ") and any amendments and the regulations thereto, the Employer shall give the Employee 30 days written notice of its intention to terminate in accordance with the notice provisions of Section 20. 9.05. 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. 9.06. Failure of Employer to cure a breach of contract within 30 days after Employee's written notice to Employer of the breach of contract in accordance with the provisions of Section 20 with a 30 -day cure period. 9.07. Failure of Employee to cure a breach of contract within 30 days after Employer's written notice to Employee of the breach of contract in accordance with the provisions of Section 20 with a 30 -day cure period. 9.08. Notwithstanding anything herein to the contrary, the Employer's obligations herein are subject to and contingent upon continued funding of the Employer during the term of this Agreement or any extension thereof. In the event of an unforeseen and catastrophic shortfall in funding, this Contract shall be terminable by the Employer, in accordance with the Employers general employmeralgrmination policies. Employment AgreeWient for City M iage5Af the City of Corpus Christi Page 4 of 14 INITIAL HERE: JA Ro 9.09. This Agreement shall terminate automatically upon death of the Employee. 9.09. This Agreement shall terminate automatically if the Employee is convicted of a felony. Section 10: Severance, 10.1. Severance shall be paid to the Employee when employment is terminated as defined in Section 9.01 — 9.05. 10.2 if the Employee is terminated, the Employer shall provide a minimum severance payment equal to six (6) months salary at the current rate of pay. This severance shall be paid in a lump sum unless otherwise agreed to by the Employer and the Employee. 10.3. The Employee shall also be compensated for all accrued sick leave and vacation time, and as provided by Employer's employee benefits policy. 10.4. The Employer agrees to make a contribution to the Employee's deferred compensation account on the value of this compensation calculated using the rate ordinarily contributed on regular compensation. 10.5. For a minimum period of six (6) months following termination, the Employer shall pay the cost to Employee's motor vehicle allowance as provided in Section 6. 10.6. All other compensation not expressly referenced in Section 10 shall cease and benefits shall cease to accrue on the effective date of termination, save and except this Agreement shall have no impact upon Employee's post - termination benefit rights pursuant to the Consolidated Omnibus Benefits Reconciliation Act ( "COBRA ") or other state or federal law. 10.7. If the Employee is terminated because of a conviction of a felony, then the Employer is not obligated to pay severance under this section. Section 11: Resignation. 11.01. In the event that the Employee voluntarily resigns his /her position with the Employer, the Employee shall provide a minimum of 30 days notice unless the parties agree otherwise. Section 12: Performance Evaluation. 12.01. Employer (City Council or a duly appointed committee of the City Council) shall annually review the performance of the Employee in advance of adoption of the annual operating budget subject to a process, form, criteria, and format for the evaluation which shall be mutually agreed upon by the City Council and Employee. The process at a minimum shall include the opportunity for both parties to: (1) prepare a written evaluation, (2) meet and discuss the evaluation, and (3) present a written summary of the evaluation results. The final written evaluation should be completed and delivered to the Employee within 30 days of the evaluation meeting. Section 13: Hours of Work. 13.01. 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. 13.02. Employee is an exempt employee. Employer expects Employee to consistently devote no less than 40 hours per weelt to the completion of the duties of this position. Employment Agreergent City Imager df the City of Corpus Christi page 5 of 14 INITIAL HERE: JA Ro •f Section 14: Outside Activities, 14.01. The employment provided for by this Agreement shall be the Employee's sole employment. Section 15: Moving and Relocation Expenses, 15.01. Employee agrees to establish residence within the corporate boundaries of the local government, within six (6) months of employment, and thereafter to maintain residence within the corporate boundaries of the local government. 15,02. Employer shall reimburse Employee (or his family member) for a total of five round trip air fares for the purpose of house hunting, closing on the sale of his previous home, final coordinating of the moving of his family's belongings. 15.03. The Employee shall be reimbursed up to Six Thousand Dollars and No /Cents ($6000.00) for the expense of temporary housing during the first year of this Agreement. 15.04. Employer shall pay Employee directly for the expenses of moving Employee and his family and personal property from their current residence to Corpus Christi, Texas. Said moving expenses include packing, moving, storage costs, unpacking, and insurance charges as determine by the lowest bid provided by a licensed moving company. All amounts paid to Employee for the expenses of moving Employee and his family and their personal property shall be reimbursed in full to the Employer, if Employee chooses to terminate this Agreement without good cause. 15.05. Employer shall also pay for the mileage calculated at the standard IRS rate for the one- time transporting of two vehicles to Texas from Employee's current residence. All amounts paid to Employee for the expenses of transporting vehicles shall be reimbursed in full to the Employer, if Employee chooses to terminate this Agreement without good cause. Section 16: Indemnification. 16.01. Beyond that required under Federal, State or Local Law, Employer SHALT. DEFEND, SAVE HARMLESS AND INDEMNIFY EMPLOYEE against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager or resulting from the exercise of judgment or discretion in connection with the performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. Legal representation, provided by Employer for Employee, shall extend until a final determination of the legal action including any appeals brought by either party. The Employer SHALL INDEMNIFY employee against any and all losses, damages, judgments, interest, settlements, fines, court costs and other reasonable costs and expenses of legal proceedings including attorneys fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of or in connection with the performance of his or her duties. 16.02. This indemnification provision shall in no way be construed to waive the Employer's or Employee's right to invoke sovereign immunity or other statutory protections and defenses under state or federal law. 16.03. Any settlement of any claim must be made with prior approval of the Employer in order for indemnification, as provided_l1 this Section, to be available. Employment Agree ent for City W6ageK d� the City of Corpus Christi Page 6 of 1.4 IN171AL HERE: IA r- Ro Section 17: Litigation, 17.01. Employee agrees to fully cooperate in a consulting or witness capacity in any litigation involving his actions or conduct, or as deemed necessary by Employer, even if such litigation ensues after his separation. Employer agrees to pay all reasonable litigation expenses of Employee throughout the pendency of any litigation to which the Employee is a party, witness or advisor to the Employer after Employee's separation from employment, Section 18: Bonding. 18.01. Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 19: Other Terms and Conditions of Employment, 19.01. 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 provisions of this Agreement, the City of Corpus Christi Charter or any other law. Section 20: Notices. 20.01. Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) EMPLOYER: to the attention of the current Mayor, Mayor's Office, City Hall, 1201 Leopard, Corpus Christi, Texas 78401. (2) EMPLOYEE: Ron Olson, Attention: Ron Olson, Office of the City Manager, City Hall 1201 Leopard, Corpus Christi, Texas 78401. 20.02. Alternatively, notice required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 21: General Provisions. 21.01. 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 life of the agreement. Such amendments shall be incorporated and made a part of this agreement. 21.02. This Agreement shall be binding on the Employer and the Employee as well as their heirs, assigns, executors, personal representatives and successors in interest. 21.03. This Contract shall not be amended, modified or waived, in whole or in part, unless done so in writing and signed by all Parties. 21.04. The invalidity or partial invalidity of any portion of this Agreement will not effect 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 Employment Agree pt for city w6age�r of the City of Corpus Christi Page 7 of 14 INITIAL HERE: JA RO been executed by both parties subsequent to the expungement or judicial modification of the invalid provision. 21.05. This Contract has been executed and delivered within the State of Texas and the rights and obligations of the Parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of Texas. 21.06. This Contract is performable in Nueces County, Texas, where the Parties agree venue is proper in the event of a dispute. 21.07. This Agreement shall become effective on the date of the last signature, Section 22. Dispute Resolution. 22.01. Arbitration. Any other dispute (save and except excluded claims) arising out of or in connection with this Agreement (including its validity or interpretation) or Employee's employment which cannot be resolved by the parties shall be finally resolved by the parties in binding arbitration under the Rules of the American Arbitration Association, The parties hereby waive their right to a jury trial. Employee shall pay $500 of the arbitrator's fees; the Employer shall pay the remaining fees. The parties shall first submit their dispute to a licensed mediator. Section 23. Non - Solicitation of Employer's Employees. 23,01. Employee recognizes that the Employer's employees are a valuable resource. Accordingly, Employee agrees that Employee shall not, during the Employee's employment under this Agreement, and for a period of two (2) years following separation for any reason, either alone or in conjunction with any other entity or person, directly or indirectly, go into business with (whether for pay or not for pay) any Employer representative or employee and /or solicit, induce, or recruit any Employer representative or employee to terminate their relationship with the Employer. Section 24. Non- Disparagement. 24.01. Employee agrees that he shall not make any disparaging remarks about or concerning the Employer, any of its officers, employees or Council Members. Employer: &,ZA4!!�f_4 Joe dame, Mayor City of Corpus C risti Date: 2011. Employee: ? �•w: Ron dlso' City Manoger Date: �:, ­5 1 2011, sy MilNCIL Q a LU SECRETARY - - °Y Employment Agreement for City M agef of the City of Corpus Christi Page 8 of 14 INITIAL HERE- JA RO _9W EXHIBIT A TO THE EMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI CITY OF CORPUS CHRISTI CHARTER, ARTICLE III Employment Agree nt for City M Frager„ef the City of Corpus Christi page 9 of 14 INITIAL HERE: JA RO 7_JL ARTICLE III. CITY MANAGER Sec. 1. Appointment; Qualifications; Term; Removal; Compensation. The council shall appoint a city manager who shall be the chief administrative and executive officer of the city. No member of the council shall, during the time for which he or she is elected, be chosen as city manager. The city manager may be removed at the will and pleasure of the council by a majority vote of the entire membership of the council. The action of the council in removing the city manager shall be final. In the case of the absence or disability of the city manager, the council may designate some qualified person to perform the duties of the office during such absence or disability. The city manager shall receive such compensation as may be fixed by the council. Sec. 2. Powers and Duties. The powers and duties of the city manager shall be as follows: (a) To see that all laws and ordinances are.enforced. (b) To exercise control over all city departments and subdivisions thereof except as otherwise provided by Charter. (c) To execute all appropriately authorized deeds, contracts, agreements or franchises and to see that all terms and conditions imposed in favor of the city or its inhabitants in any such transactions are faithfully kept and performed, and in case of any violation thereof to take such action as may be necessary and proper to enforce or terminate the same. (d) To attend all meetings of the council, with the right to take part in the discussion, but having no vote and to receive notice of all special meetings in the same manner as such notice is given to members of the council. Any action taken at any meeting of the council of which the city manager has not been notified shall be of no force or effect, except, however, the action of designating a person to perform those duties in the city manager's absence. (e) To recommend such measures to the council as may be deemed necessary or expedient. (f) To keep the council fully advised as to the financial condition and needs of the city and provide them quarterly financial reports. (g) To act as budget officer, and, as such, prepare and submit the annual budget to the council. (h) To operate the city within its budget. (i) To be an ex officio member of all boards or commissions without vote, but with the right of veto of any proposed expenditures the manager shall deem unlawful or not in the best interest of the city. (j) To perform such other duties as may be prescribed by the city charter or by ordinance or resolution of the council; and to be responsible to the council for the proper administration of all the city affairs. (k) To appoint and remove all officers and employees not otherwise specified by this charter. Ernpioyment Agree for City Ma ager,cW he City of Corpus Christ! page 10 of 14 INITIAL HER F: 1A Jr RCF F``_` EXHIBIT B TO THE EMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI INTERNATIONAL CITY /CO.UNTY MANAGEMENT ASSOCIATION CODE OF ETHICS WITH GUIDELINES Employment Agree Went for City Ma ger s►fthe City of Corpus Christi Page 11 of 14 INITIAL HERE: 1A RCi ICMA Code of Ethics With Guidelines The ICMA Code of Ethics was adopted by the ICMA membership in 1924, and most recently amended by the membership in May 1998. The Guidelines for the Code were adopted by the ICMA Executive Board in 1972, and most recently revised in July 2004. The mission of ICMA is to create excellence in local governance by developing and fostering professional local government management worldwide. To further this mission, certain principles, as enforced by the Rules of Procedure, shall govern the conduct of every member of ICMA, who shall; 1. Be dedicated to the concepts of effective and democratic local government by responsible elected officials and believe that professional general management is essential to the achievement of this objective. 2. Affirm the dignity and worth of the services rendered by government and maintain a constructive, creative, and practical attitude toward local government affairs and a deep sense of social responsibility as a trusted public servant. Guideline Advice to officials of Other local Governments. When members advise and respond to inquiries from elected or appointed officials of other local governments, they should inform the administrators of those communities. 3. Be dedicated to the highest ideals of honor and integrity in all public and personal relationships in order that the member may merit the respect and confidence of the elected officials, of other officials and employees, and of the public. Guidelines Public Confidence. Members should conduct themselves so as to maintain public confidence in their profession, their local government, and in their performance of the public trust. Impression of Influence. Members should conduct their official and personal affairs in such a manner as to give the clear impression that they cannot be improperly influenced in the performance of their official duties. Appointment Commitment. Members who accept an appointment to a position should not fail to report for that position. This does not preclude the possibility of a member considering several offers or seeking several positions at the same time, but once a bona fide offer of a position has been accepted, that commitment should be honored. Oral acceptance of an employment offer is considered binding unless the employer makes fundamental changes in terms of employment. Credentials. An application for employment or for ICMA's Voluntary Credentialing Program should be complete and accurate as to all pertinent details of education, experience, and personal history. Members should recognize that both omissions and inaccuracies must be avoided. Professional Respect. Members seeking a management position should show professional respect for persons formerly holding the position or for others who might be applying for the same position. Professional respect does not preclude honest differences of opinion; it does preclude attacking a person's motives or integrity in order to be appointed to a position. Reporting Ethics Violations. When becoming aware of a possible violation of the ICMA Code of Ethics, members are encouraged to report the matter to ICMA. In reporting the matter, members may choose to go on record as the complainant or report the matter on a confidential basis. Confidentiality. Members should not discuss or divulge information with anyone about pending or completed ethics cases, except as specifically authorized by the Rules of Procedure for Enforcement of the Code of e=thics. Seeking Employment. Members should not seek employment for a position having an incumbent administrator who has not resigned or'been officially informed that his or her services are to be terminated. 4. Recognize that the chief function of local government at all times is to serve the best interests of all of the people. Guideline Length of Service. A minimum of two years generally is considered necessary in order to render a professional service to the local government. A short tenure should be the exception rather than a recurring experience. However, under special circumstances, it may be in the best interests of the local government and the member to separate in a shorter time. Examples of such circumstances would include refusal of the appointing authority to honor commitments concerning conditions of employment, a vote of no confidence in the member, or severe personal problems. it is the responsibility of an applicant for a position to ascertain conditions of employment. Inadequately determining terms of employment prior to arrival does not justify premature termination. 5. Submit policy proposals to elected officials; provide them with facts and advice on matters of policy as a basis for making decisions and setting community goals; and uphold and implement local government policies adopted by elected officials. Guideline Conflicting Roles. Members who serve multiple roles- - working as both city attorney and city manager for the same community, for example -- should avoid participating in matters that create the appearance of a conflict of interest. They should disclose the potential conflict to the governing body so that other opinions may be solicited. 6. Recognize that elected representatives of the people are entitled to the credit for the establishment of local government policies; responsibility for policy execution rests with the members. 7. Refrain from all political activities which undermine public confidence in professional administrators. Refrain from participation in the election of the members of the employing legislative body. Guidelines Elections of the Governing Body. Members should maintain a reputation for serving equally and impartially all members of the governing body of the local government they serve, regardless of party. To this end, they should not engage in active participation in the election campaign on behalf of or in opposition to candidates for the governing body. Elections of Elected Executives. Members should not engage in the election campaign of any candidate for mayor or elected county executive. Running for Office. Members shall not run for elected office or become involved in political activities related to running for elected office, They shall not seek political endorsements, financial contributions or engage in other campaign activities. Elections. Members share with their fellow citizens the right and responsibility to vote and to voice their opinion on public Issues. However, in order not to impair their effectiveness on behalf of the local governments they serve, they shall not participate in political activities to support the candidacy of individuals running for any city, county, special district, school, state or federal offices. Specifically, they shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fund - raising activities for individuals seeking or holding elected office. Elections on the Council- Manager Plan. Members may assist in preparing and presenting materials that explain the council - manager form of government to the public prior to an election on the use of the plan. If assistance is required by another community, members may respond. All activities regarding ballot issues should be conducted within local regulations and in a professional manner. Presentation of Issues. Members may assist the governing body in presenting issues involved in referenda such as bond issues, annexations, and similar matters. 8. Make it a duty continually to improve the member's professional ability and to develop the competence of associates in the use of management techniques. Guidelines Self- Assessment. Each member should assess his or her professional skills and abilities on a periodic basis. Professional Development. Each member should commit at least 44 hours per year to professional development activities that are based on the practices identified by the members of ICMA. 9. Keep the community informed on local government affairs; encourage communication between the citizens and all local government officers; emphasize friendly and courteous service to the public; and seek to improve the quality and image of public service. 10. Resist any encroachment on professional responsibilities, believing the member should be free to carry out official policies without interference, and handle each problem without discrimination on the basis of principle and justice, Guideline Information Sharing. The member should openly share information with the governing body while diligently carrying out the member's responsibilities as set forth in the charter or enabling legislation. 11. Handle aii matters of personnel on the basis of merit so that fairness and impartiality govern a member's decisions pertaining to appointments, pay adjustments, promotions, and discipline. Guideline Equal Opportunity. All decisions pertaining to appointments, pay adjustments, promotions, and discipline should prohibit discrimination because of race, color, religion, sex, national origin, sexual orientation, political afliation, disability, age, or marital status. It should be the members' personal and professional responsibility to actively recruit and hire a diverse staff throughout their organizations. 12. Seek no favor; believe that personal aggrandizement or profit secured by confidential information or by misuse of public time is dishonest. Guidelines Gifts. Members should not directly or indirectly solicit any gift or accept or receive any gift -- whether it be money, services, loan, travel, entertainment, hospitality, promise, or any other form - -under the following circumstances: (1) it could be reasonably inferred or expected that the gift was intended to influence them in the performance of their official duties; or (2) the gift was intended to serve as a reward for any official action on their part. It is important that the prohibition of unsolicited gifts be limited to circumstances related to improper influence. In de minimus situations, such as meal checks, some modest maximum dollar value should be determined by the member as a guideline. The guideline is not intended to isolate members from normal social practices where gifts among friends, associates, and relatives are appropriate for certain occasions. Investments in Conflict with Official Duties. Member should not invest or hold any investment, directly or indirectly, in any financial business, commercial, or other private transaction that creates a conflict with their official duties. In the case of real estate, the potential use of confidential information and knowledge to further a member's personal interest requires special consideration. This guideline recognizes that members' official actions and decisions can be influenced if there is a conflict with personal investments. Purchases and sales which might be interpreted as speculation for quick profit ought to be avoided (see the guideline on "Confidential Information "). Because personal investments may prejudice or may appear to influence official actions and decisions, members may, in concert with their governing body, provide for disclosure of such investments prior to accepting their position as local government administrator or prior to any official action by the governing body that may affect such investments. Personal Relationships. Members should disclose any personal relationship to the governing body in any instance where there could be the appearance of a conflict of interest. For example, if the manager's spouse works for a developer doing business with the local government, that fact should be disclosed. Confidential Information, Members should not disclose to others, or use to further their personal interest, confidential information acquired by them in the course of their official duties. Private Employment. Members should not engage in, solicit, negotiate for, or promise to accept private employment, nor should they render services for private interests or conduct a private business when such employment, service, or business creates a conflict with or impairs the proper discharge of their official duties. Teaching, lecturing, writing, or consulting are typical activities that may not involve conflict of interest, or impair the proper discharge of their official duties. Prior notification of the appointing authority is appropriate in all cases of outside employment. Representation. Members should not represent any outside interest before any agency, whether public or private, except with the authorization of or at the direction of the appointing authority they serve. Endorsements. Members should not endorse commercial products or services by agreeing to use their photograph, endorsement, or quotation in paid or other commercial advertisements, whether or not for compensation. Members may, however, agree to endorse the following, provided they do not receive any compensation: (1) books or other publications; (2) professional development or educational services provided by nonprofit membership organizations Or recognized educational institutions; (3) products and/or services in which the local government has a direct economic interest. Members' observations, opinions, and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports. EXHIBIT C TO THE EMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI HR 17.0 (DEFERRED COMPENSATION - DRAG -UP PAY UPON TERMINATION OR RETIREMENT) (REVISED D3(16f 09) 1 f Employment Agree rAnt For City fti/Ja ager 91,6e City of Corpus Christi Page 12 of ]A INITIAL HERE: 1A L�/R ORIGINAL City Of IMP, Christi Ca,�u§l Citv Po licies ti:....r�• -- - SUBJECT: DEFERRED COMPENSATION — DRAG -UP PAY NO. HR 17.0 UPON TERMINATION OR RETIREMENT REVISED: 97!24198 REVISED: 09115103 REVISED: 06115/04 r REVISED: 03115/09 APPROVED: A t I l k r I" DATE: 3 R. Escobar, City Manager —7 I. PURPOSE The purpose of this policy Is to provide eligible employees with options to receive or defer �. compensation in connection with accrued but unused vacation and sick leave pay upon retirement or �. termination. Payment of such accrued leave is referred to in this policy as "Drag -Up" pay. Il. SCOPE This policy applies to all City employees eligible to participate in deferred compensation plans offered by the City. This policy is governed by, and subject to, Section 457 of the IRC and the Treasury regulations thereunder, as amended from time to time, and to the extent that there is a conflict between this policy and the IRC and applicable regulations, the provisions of the IRC and the regulations, as .amended, shall control. Ill. AUTHORIZATION FOR PAYMENT OF ACCRUED LEAVE Under this policy, eligible employees may elect to defer the receipt and income taxation of a portion of their drag -up pay through participation in one or more deferred compensation plans offered to employees by the City of Corpus Christi. These plans are established under Section 457 of the Internal Revenue Code of 1986, as amended (referred to in' this policy as the "IRC ") and the Treasury regulations thereunder. Authorization for payment of drag -up pay upon an employee's retirement or termination is provided in the City's Compensation and Classification Plan, or In collective bargaining agreements for Police Officers and Firefighters. HR 17.0 Deferred Compensation — Drag -Up Pay Page 1 of 6 Upon Termination or Retirement IV. DEFERRED COMPENS PROVISIONS -- GENERAL RULES �. Under IRC Section 457, each calendar year an employee may generally defer receipt and taxation of compensation up to a maximum of (a) 100% of his/her includible compensation or (b) a fixed dollar amount that is set each year, whichever is less, through a payroll deduction election made before the compensation is earned. A deferral of a payment, including a payment of drag -up pay, must be elected before this amount is paid or made available to the employee, Draq -up pay cannot be deferred after the employee ten his or her employment. V. DEFERRED COMPENSATION CATCH -UP PROVISION UNDER IRC SECTION 457 IN THREE YEARS BEFORE NORMAL RETIREMENT DATE a. IRC Section 457 and the Treasury regulations thereunder provide for a limited catch -up period to enable employees to make up for years in which they did not defer the maximum compensation allowed by law. The catch -up period is defined by federal law as one or more of the employee's last three taxable years (generally calendar years) endi!29 before the year the employee reaches normal retirement age. No catch -up contributions can be made under this make -up provision in the calendar year that includes the employee's normal retirement age. b. For purposes of the limited catch -up period, "normal retirement age" is the age and date designated in writing by the employee to the City in accord with applicable Treasury regulations for purposes of this catch -up provision, 1. The normal retirement age designated by the employee must be not later than age 70 ._� Y2 and not earlier than the age at which the employee may retire without the consent of the City and receive immediate retirement benefits under his /her applicable retirement plan or system without any reduction In retirement benefits. 2. The age and date specified by the employee cannot be later than any applicable mandatory retirement age, or later than the age and date at which the employee retires or terminates employment with the City. 3. To the extent permitted by applicable Treasury regulations, qualified police or firefighters may designate a normal retirement ate for such purpose that is earlier than the age permitted under this general rule, but in no event earlier than age 40. c. An employee may use this catch -up provision only once during one or more of the three calendar years in the catch -up period. If this option is not used the, the opportunity to use it ends. d. If an employee has not deferred the maximum amount of compensation allowable during years before the catch -up period when he/she was eligible to participate in the deferred compensation plan, the employee can catch -up by electing to defer the receipt of current compensation based on the difference between (1) the compensation that was eligible to be deferred in prior years, and (2) the compensation that was actually deferred in prior years, HR 17.0 Deferred Compensation — Drag -Up Pay Page 2 of 6 Upon Termination or Retirement e, An employee's catch -up contribution based on his/her underutilized limit in prior years cannot exceed the amount permitted by Section 457 and the Treasury regulations thereunder (two . times the normal fixed dollar amount in effect for that calendar year. f. Subject to approval of the City Manager, an eligible employee who is about to retire or terminate can elect in advance (1) to receive or defer a portion of his /her drag -up pay in the calendar month preceding the calendar month in which the retirement or termination will occur, and (2) to receive or defer the remainder of his /her drag -up pay in the calendar month of retirement or termination, provided that the drag -up pay trust actually be paid before the employee has a severance from employment, and provided further that in order for the employee to use the catch -up provision, the drag -up pay must be paid in the calendar year that does not include the employee's normal retirement age. The amount so elected in any calendar year must be limited to the annual deferral amount permitted by IRC Section 457. g. Retiring or terminating employees who are not eligible for the catch -up can elect in advance to defer compensation (including drag -up pay) in the calendar month in which they retire or termination, subject to the annual deferral amount permitted by IRC Section 457. The amount of any deferral must also take into account any other deferrals of compensation elected by the employee in that calendar year. VI, DEFERRAL OF - ADDITIONAL COMPENSATION UNDER IRC SECTION 457 AFTER ATTAINING AGE 60 a. An employee who is at least age 50 by the end of the year may elect to contribute an additional amount that is established for each year in excess of the normal annual dollar limit. b. The age 50 additional contribution does not apply for any year for which a higher catch -up contribution limit applies. An employee who is eligible for the age 50 add iti©nal' contribution in a year -that is one of the employee's last three calendar years before he/she reaches normal retirement age is entitled to the either (1) the normal annual limit plus the age 50 additional contribution, or (2) the catch -up contribution limit, whichever is greater. VII. ELECTION BY EMPLOYEE TO DEFER DRAG -UP PAY UNDER A DEFERRED COMPENSATION PLAN a. In order for an employee to be eligible to defer a portion of the drag -up pay he/she will be receiving under the Compensation & Classification Plan or Fire and /or Police Collective Bargaining Agreements, the employee must sign, date and del lver his /her election to receive or defer drag -up pay on or before the last day of the calendar month immediately preceding the calendar month in which the employee either (1) gives notice of his/her retirement or termination, or (2) retires or terminates, whichever is earlier. In addition, in order to use the catch -up contribution to defer drag -up pay, the deferral must occur before the calendar year that includes his/her normal retirement age. HR 17.0 Deferred Compensation — Drag -Up Pay Page 3 of 6 Upon Termination or Retirement Exam le: 1. An employee who has declared his/her normal retirement age as January 15, 2010 and who gives notice in November 2009 that his/her retirement will occur December 31, 2009 and whose drag -up pay will be paid December 30, 2009 must sign, date and deliver his /her drag -up pay election form on or before. November 30, 2009. 2. An employee who has declared his /her normal retirement age as January 15, 2010 and who gives notice In December 2009 that his /her retirement will occur January 15, 2010 and whose drag up pay will be paid January 14, 2010 must sign, date and deliver his /her drag -up pay election form on or before November 30, 2009. 3. No drag -up pay can be deferred by the employee in either example as part of the catch -up contribution in the calendar year of his /her normal retirement age (2010), although it can be deferred as part of the normal annual deferred compensation limit as long as the deferral occurs before the termination of hislher employment. c. An employee who wishes (1) to receive or defer a portion of his /her drag -up pay in the calendar month preceding the calendar month in which the retirement or termination will occur, and (2) to .receive or defer the remainder of his/her drag -up pay in the calendar month of retirement or termination (but before the actual date of retirement or termination) must also follow the procedures outlined in Section Vill below on a timely basis. d. •if an eligible employee makes a timely election to defer drag -up pay, the deferred drag -up pay is not paid to the employee at retirement or termination, but is invested and held in trust for the employee under the terms of the applicable deferred compensation plan until the determinable date in the future selected for receipt of the deferred amounts. e. If an employee wishes to defer additional drag -up pay under the catch -up rules of IRC Section 457, he /she must provide the City with a written certification of eligibility for the catch -up provision from a representative of the applicable deferred compensation plan. - 1. The employee should contact a representative of the applicable deferred compensation plan for assistance in obtaining the certification and completing the farms required by the IRS and the applicable deferred compensation plan. 2. The certification must state the calendar year(s) In which a catch -up deferral can be made. 3. The Human Resources Department will verify the amount of drag -up pay which is due to the employee as of the date of the election. Vllli. REQUESTING CITY MANAGER TO APPROVE PARTIAL PAYMENT OF DRAG -UP PAY An eligible employee who wishes to receive or defer a portion of his /her drag -up pay in the calendar month immediately preceding the calendar month of his /her retirement or termination and the balance in the calendar month of his /her retirement or termination should: HR 17.0 Deferred Compensation - Drag -Up Pay Page 4 of 6 Upon Termination or Retirement a. The employee must sign, date and deliver his/her election to receive or defer drag -up pay on or before the last day of the calendar month preceding the calendar month in which the employee either (1) gives notice of his/her retirement or termination, or (2) retires or terminates, whichever is earlier. b. An employee's ability to receive or defer drag -up pay in the calendar month immediately preceding the calendar month of termination or retirement is not automatic. 1. The employee must submit a written request to make a portion of his/her drag - pay available before the month: of termination or retirement. 2. This request must be submitted by the employee to his /her department Director on or before the last day of the calendar month preceding the calendar month In which the employee either (1) gives notice of his /her retirement or termination, or (2) retires or terminates, whichever is earlier. 3. The request must be approved by the applicable department Director, Director of Human Resources, or designee, Assistant City Manager, and City Manager, 4.. The City Manager will review and consider the employee's request for approval. The City Manager's decision is final. X. EMPLOYEE RESPONSIBLE FOR OBTAINING OWN INCOME TAX ADVICE The City provides the voluntary option for employees to participate in deferred compensation plans offered as a benefit to City employees. This in no way obligates the City for liability that may arise �.. from any individual employee's income tax obligation under the Internal Revenue Code and /or IRS regulations. Employees who use the deferred compensation plans made available by the City do so at their own risk. City employees are encouraged to obtain tax advice from a qualified tax attorney or other knowledgeable professional. X. QUESTIONS REGARDING THIS POLICY Questions regarding this policy shall be directed to the Director of Human Resources, or designee, who may be contacted at 361- 826 -3315. HR 17.0 Deferred Compensation — drag -Up Pay Page 5 of 6 Upon Termination or Retirement CITY OF CORPUS CHRISTI _ ELECTION FORM FOR DEFERRED COMPENSATION OF DRAG-UP PAY t Employee Name Department: lD #: I request to use the deferred compensation catch -up period provision provided for in Section 457 of the Internal Revenue Code based on the attached written certification of my eligibility from a representative of my applicable deferred compensation plan(s), which are: and I elect, effective this date (month & year), to defer a portion of my drag -up pay. This election is made on or before the last day of the calendar month immediately preceding the calendar month in which I either (1) give notice of my retirement or termination on (month & year), or (2) retire or termination on (month & year), whichever is earlier. I understand that this deferral must occur before the calendar year that includes my normal retirement age as defined in applicable Treasury regulations. I request the City Manager to approve $ in vacation and /or sick leave accrual 1 exchanged for cash. I understand that election to defer Accrued Leave Pay must be timely and that ` J this pay will not be paid to me, but invested and held in trust for me under the terms of the applicable deferred compensation plan until the determinable date in the future selected for receipt of the deferred amounts. Employee Signature APPROVED BY: Date Director of Human Resources: Employee's Department Director: Assistant City Manager: City Manager: Date: Date: Date: Date: HR 17.0 Deferred Compensation — Drag -Up Pay page 6 of 5 Upon Termination or Retirement EXHIBIT D TO THE EMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI LIST OF EMPLOYEE BENEFITS FOR THE CITY OF CORPUS CHRISTI Employment Agree nt for City 141fnageryP ° the City of Corpus Christi Page 13 of 14 INITIAL HERE: )A RO ;' "9 Welcome to the City of Corpus Christi. We are proud of the various benefit offerings available to regular, full -time employees. This summary is intended to provide general information on the benefit plans available to employees. Specific information concerning each benefit option available is contained in the plan documents that govern the terms and conditions of coverage. Some benefits will vary between Executive level, Civilian, Fire and Police personnel. Please contact Human Resources - Benefits Division at 361- 826 -3300 with any questions you may have concerning your employee benefit options. VACATION LEAVE ACCRUAL: Years of Service Less than 6 years of service Beginning the 6th year Beginning the 11 year Beginning the 16 year Beginning the 21 Year Beginning the 26 year Beginning the 31 year Hours Per Year 88 Hours 104 Hours 120 Hours 144 Hours 168 Hours 200 Hours 240 Hours ❑ Annual carryover limited to 30 days ❑ Vacation buyback up to 5 days if 15 days are accrued and 5 days are used in calendar year ❑ Up to maximum of 30 days paid at termination, retirement, or death © 12 months of service with City required before vacation is paid at termination ❑ Probationary Period must be completed before vacation accrual is used SICK LEAVE: ❑ 12 days per calendar year (based on 8 -hour shift) ❑ 960 hours carried over year to year ❑ No hours paid at termination ❑ Up to 720 accrued hours cashed -in for up to 360 hours of pay at disability /service retirement or upon death ❑ Buyback of up to 4 days at 50% If 240 hours are accrued and 32 or less hours were used in the previous calendar year PERSONAL LEAVE: ❑ 40 personal leave hours granted to employees in payroll on August 1 of each year ❑ Days scheduled and used like vacation leave HOLIDAY LEAVE: o 7 days per year (based on 8 -hour shift) ✓ New Year's Day ✓ Memorial Day ✓ Independence Day ✓ Labor Day ✓ Thanksgiving Day ✓ Day after Thanksgiving ✓ Christmas Day OTHER LEAVES: a Military Leave up to 16 calendar days per year ❑ Jury Duty Leave RETIREMENT: • Texas Municipal Retirement System • Automatic enrollment • 6% contributed by employee • City contribution actuarially determined • 5 -year vesting • Eligibility for retirement: ✓ Age 60 with 5 years of service ✓ 20 years of service at any age DEFERRED COMPENSATION PLANS: ❑ Two plans offered (ICMA and Nation Wide Retirement Solutions) ❑ No City contribution HEALTH INSURANCE: o Coverage effective as of date of hire a Enrollment must be completed by 31" date of hire ❑ City pays portion of bi- weekly premium €a Choice of 2 plans: Citicare or Alternate Choice (Civilian employees only) DENTAL INSURANCE: • Coverage effective as of date of hire • Enrollment must be completed by 31 date of hire • Choice of 2 plans: Basic or Expanded Plan TERM LIFE INSURANCE COVERAGE: ❑ $10,000 group terra insurance with AD &D paid for at City's expense ❑ Supplemental and optional term life at group rates available at employee's expense ❑ Spouse andlor child life insurance at group rates available at employee's expense DISABILITY INSURANCE: o Mandatory participation in disability income protection plan d Shared cost between City and employee • Choice of Long Term coverage only or combination short term and long term • Choice of 4 plans EMPLOYEE ASSISTANCE PRORAM: • Three confidential visits for counseling services paid for by City • Covers employee, spouse and dependent children • Choice of two convenient locations OTHER OPTIONAL BENEFITS AT EMPLOYEE'S COST: • Corpus Christi Dental Plan —discount dental • Ameritas — discount vision plan ❑ Cancer Coverage for employee and family ❑ Heart/Stroke Coverage CAFETERIA PLAN (PREMIUM ONLY PLAN) n Premiums for health, term life, self-funded dental insurance deducted before federal taxes are calculated o May increase employee's take home pay FLEXIBLE SPENDING ACCOUNT • Plan Year is August 1 through .July 31 • Use pre -tax dollars to pay for: ✓ Out -of- pocket medical expenses and certain over- the - counter drugs ✓ Day care expenses for child and/or elder care ✓ Use pre-tax dollars for reimbursement of health, dental or vision insurance premiums that are paid with after tax dollars Q Maximum annual deduction of $6,250 for medical expenses a Maximum annual deduction of $5,000 for day care expenses Employee Health Insurance Bi- Weekly Premiums Plan Year 8 -01 -09 through 7 -31 -10 Coverage Employee Only Employee & Employee & Employee & Spouse Child Fancily Citicare $ 14.62 $ 96.12 $ 79.46 $ 146.51 Alternate Choice $7.50 $ 60.00 $ 45.00 $100.00 Citicare Fire $ 55.58 $ 160.62 $ 139.12 $225,44 Citicare Public Safety $0 $ 112.91 $ 89.87 $ 182.67 Dental Care (Civilian employees only) Dental Basic $12.46 $25.92 $19.94 $34.89 Dental Expanded $19.75 $39.48 $30.71 $53.74 This is a summary of general benefits. Sorne benefits vary between executive level, Civilian, Fire and Police personnel. EXHIBIT E TO THE EMPLOYMENT AGREEMENT FOR CITY MANAGER OF THE CITY OF CORPUS CHRISTI HR 23.0 (EXECUTIVE PHYSICAL EXAMINATION) (REVISED 04112105) Employment Agreesr or City P"iger of tbed City of Corpus Christi Page 14 of 14 INITIAL HERE. JA RO City of • = Corpus C Polici Christi so SUBJECT: EXECUTIVE PHYSICAL EXAMINATIONS NO. HRHR 23.0 EFFECTIVE 10/2/11999 REVISED: 04112!2005 APPROVED- DATE: ge K. Noe, City Manager I. PURPOSE The purpose of this policy is to provide an enhanced health care benefit for eligible employees, the Mayor and City Council members, and define the specific procedures covered under the annual executive physical examination. II. SCOPE This policy applies to oil City employees in the Executive Pay Plan, the Mayor and City Council members. Ill. ANNUAL PHYSICAL EXAMINATIONS Employees in the Executive Pay Plan, the Mayor and City Council members are eligible for a voluntary, annual physical examination as a preventive health measure. This examination is pain for by the City from the Occupational Health Fund. The physical examination includes the following: Audiogram Cardiac Risk Assessment * CSC (blood test) Chem 20 (blood test) • Electrocardiogram • HIV Screen • Occult Blood • Prostatic Specific Antigen • Pulmonary Function Test • TB Tine • Thyroid Secreting Hormone HR 23,0 Executive Physical Examinations Page I of 2 Appointments for physical examinations can be made directly by the eligible employee, Mayor or Council Member by contacting the City's contracted medical clinic, Concentra Medical Centers at 852 -8255. The clinic is located at 4025 S. Padre Island Drive. Protocol for these annual physical examinations is contained in the City's Occupational Medical Services Agreement, Attachment IV, Occupational Medical Standards for Employment, The City of Corpus Christi or its agents, except for the City's contracted physician, will not receive any information related to the results of these examinations. All documentation related to these examinations will be maintained by the City's contracted physician. Results from the examination will be presented to the participant, the individual - examined, only_ Participants are encouraged to provide the results to their personal physician. Results of the physical exam may be forwarded by Concentra to the participant's personal physician, if the participant mattes such request in writing. If any treatment or follow -up is recommended, based upon the findings, the participant should address these issues with their personal physician. Should any additional tests which were recommended be taken, the associated costs would be the responsibility of the participant and should be handled through the participant's personal medical plan. Notification to the City regarding results of the annual physical examination will be restricted to a Disposition Form from the City's contracted physician, specifically developed by the risk Management Department. This notification will be used to reconcile related billings for these examinations. Ill. QUESTIONS REGARDING THIS POLICY Questions regarding this Policy shall be directed to the Director of Human Resources, or designee, who may be contacted at 361 fB26-331 5, HR 23.0 Executive Physical Examinations Page 2 of 2