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HomeMy WebLinkAboutC2019-167 - 4/23/2019 - Approved EMPLOYMENT AGREEMENT OF CITY MANAGER This Employment Agreement is made by and between the CITY OF CORPUS CHRISTI, TEXAS, a Texas municipal, home-rule corporation (the "City"), acting by and through its city council (the "City Council"), and Peter D. Zanoni (the "Manager"). 1. Duties and Authority. The City agrees to employ Manager to perform the functions and duties of the city manager of the City as specified in the Corpus Christi City Charter, the Texas Local Government Code and other applicable laws. Manager shall be the chief executive officer of the City and shall faithfully perform the duties as prescribed in the job description as set forth in the City Charter and ordinances of the City and as may be lawfully assigned by the City Council and comply with all lawful directives, City policies, rules, ordinances, City Charter, state and federal law, as they exist or may be amended in the future, including the following: (a) employ on behalf of the City all other employees of the organization consistent with the policies of the City Council, rules, ordinances, City Charter, state and federal law; (b) direct, assign, reassign and evaluate all of the employees of the City consistent with policies, rules, ordinances, City Charter, state and federal law; (c) organize, reorganize and arrange the staff of the City and develop and establish internal regulations, rules and procedures which Manager deems necessary for the efficient and effective operation of the City consistent with the lawful directives, policies, rules, ordinances, City Charter, state and federal law; (d) accept all resignations of employees of the City consistent with the policies, rules, ordinances, City Charter, state and federal law, except the Manager's resignation which must be accepted by the City Council of the City; and (e) perform the duties of city manager of the City with reasonable care, diligence, skill and expertise. All duties assigned to Manager by the City Council shall be appropriate to and consistent with the professional role and responsibility of Manager as the city manager of the City. Manager cannot be reassigned by the City Council from the position of city manager to another position without Manager's express written consent. The City Council, individually and collectively, shall refer in a timely manner all substantive criticisms, complaints and suggestions called to their attention to Manager for study and appropriate action. 2. Term. This Agreement shall be effective as of May 20th, 2019, and shall remain in full force and effect until terminated by the City or Manager. 3. Attendance at Meetings. Manager or Manager's designee shall attend, and shall be permitted to attend, all meetings of the City Council, both public and closed, with the exception of those closed meetings devoted to the subject of this Agreement or any amendment thereto or Manager's evaluation or otherwise consistent with state law. 4. Compensation. The City agrees to pay Manager an annual base salary of $300,000, payable in installments at the same times that the other managerial employees of the City are paid. This base salary shall increase by 5% at the first anniversary of employment. Thereafter, the City shall consider on an annual basis increases in compensation and performance incentives based on the annual performance evaluation of Manager. C2019-167 4/23/19 M2019-064 ,� A NI I\I F Peter D. Zanoni 1( I ) 5. Health, Disability and Other Benefits. The City agrees to provide and to pay the premiums for health, hospitalization, vision, dental, disability and life insurance for Manager and dependents, at a minimum, equal to that which is provided to all other managerial employees of the City. Health insurance coverage and City's and Manager's health insurance premium obligations will begin on May 20, 2019. 6. Vacation, Sick and Other Leave With Pay. Effective as of the effective date of this Agreement, Manager shall accrue sick leave, vacation leave and personal leave on an annual basis, at a minimum, at the same rate provided or available to any other employees with more than 21 years of service, under the same rules and provisions applicable to other employees. For purposes of this Agreement, Manager 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. 7. Vehicle Allowance. The City agrees to pay to Manager, during the term of this Agreement, the sum of $7,200 per year, in regular installments each pay period, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain a vehicle. Manager shall be responsible for paying for liability insurance as required by law and any comprehensive or collision insurance coverage desired by Manager upon such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair, and regular replacement of such vehicle. The City shall reimburse Manager at the City's standard mileage rate for any business use of the vehicle beyond a 25-mile radius of the City Hall of the City. 8. Cell Phone Allowance. The City agrees to pay to Manager, during the term of this Agreement, the sum of $840 per year, in regular installments each pay period, as a cell phone allowance. 9. Retirement. The City agrees to continue Manager as a participant in the Texas Municipal Retirement System and make all the appropriate contributions as required for such participation on the same basis as municipal employees generally. In addition to the base salary paid by the City to Manager, the City agrees to pay the lesser of an amount equal to $19,000 per year or the maximum dollar amount permissible under Federal and state law into a deferred compensation plan established under Section 457 of the Internal Revenue Code designated by Manager in equal proportionate amounts each pay period. 10. General Professional Expenses. The City agrees to budget and pay for professional dues, including but not limited to the International City/County Management Association (ICMA), Texas City Management Association (TCMA), and Texas Municipal League (TML) and subscriptions necessary for continuation and full participation in national, state, and local associations necessary and desirable for Manager's continued professional participation, growth, and advancement, and for the good of the City. The City agrees to budget and pay for travel and subsistence expenses of Manager for professional and official travel, meetings, and occasions to adequately continue the professional development of Manager and to pursue necessary official functions for the City, including but not limited to the ICMA Annual Conference, Texas Municipal League conferences, such other national, regional, state, and local governmental groups and committees in which Manager serves as a member. The City also agrees to budget and pay for 2 travel and subsistence expenses of Manager for short courses, institutes, and seminars that are necessary for the Manager's professional development and for the good of the City. The City additionally acknowledges the value of having Manager participate and be directly involved in local civic clubs or organizations and shall pay for the reasonable membership fees and dues to enable Manager to become an active member in local civic clubs or organizations. All of such expenditures are subject to annual budget constraints as well as state and City ethics and purchasing policies. The City's Financial Services department is authorized to disburse such moneys upon receipt of duly executed expense vouchers, receipts, statements or personal affidavits. The amount annually available for reimbursements for ordinary, necessary, and reasonable expenses for promotion of the City to include fulfilling the official duties of the City Manager, meeting with leaders of government and authorities, labor and business, and recruiting businesses to remain, shall not be less than $7,200 per year. 11. Termination. For the purpose of this Agreement, termination shall occur upon the following: (a) If the majority of the City Council votes to terminate Manager in accordance with all applicable laws at a properly posted and duly authorized public meeting; (b) If the City amends any provisions of the City Charter of the City pertaining to the role, powers, duties, authority, responsibilities of the city manager that substantially changes the form of government, Manager shall have the right to declare that such amendments constitute termination; (c) If the City reduces the base salary, compensation or any other financial benefit of Manager, unless it is applied in no greater percentage than the average reduction of all department heads; (d) If Manager resigns following an offer to accept resignation, whether formal or informal, by a representative of the majority of the City Council, then Manager may declare a termination as of the date of such offer; or (e) If there is a breach of contract declared by either party with a 30-day cure period for either the City or Manager (written notice of a breach of contract shall be provided in accordance with the provisions of Section 22) and such breach has not been cured. 12. Severance. The following severance shall be paid to Manager when employment is terminated as defined in Section 11 above: (a) a severance payment equal to 12 months' salary at then current rate of pay either payable in a lump sum or in a continuation of salary on the existing periodic basis applicable to managerial employees, at Manager's option; (b) compensation for all accrued but unused vacation leave on the books for Manager; (c) continuation of health insurance for Manager and any dependents until the end of the 12th month following such termination date, which may be via 12 months of continued City payment of the City portion of Manager's & Manager's dependents' premiums pursuant to the Consolidated Omnibus Budget Reconciliation Act ("COBRA"). If Manager is terminated because of conviction of a felony or misdemeanor involving moral turpitude, the City is not obligated to pay any severance benefits under this section, and Manager shall be entitled solely to such benefits as afforded City employees generally under applicable law, regulations and policies in such cases. 3 13. Release of All Claims. The termination and severance of Manager in the manner provided above shall be conditioned upon Manager's execution of a general release of all claims against the City in the form customarily used by the City in accordance with applicable law and regulations. 14. Resignation/Retirement. In the event that Manager voluntarily resigns or retires from Manager's position with the City, Manager shall provide a minimum of 30 days' written notice unless the City and Manager agree otherwise. Upon such voluntary resignation or retirement, the Manager shall be paid all accrued but unused vacation leave and be afforded such other benefits upon such resignation or retirement as are afforded City employees generally. 15. Performance Evaluation. The City, either through its City Council or a committee formed by the City Council, shall annually review the performance of Manager in May each year subject to a process, form, criteria, and format for the evaluation which shall be mutually determined by the City and Manager. The annual evaluation process, at a minimum, shall include the opportunity for both parties to: (a) meet first to discuss goals and objectives the past 12-month performance period as well as the upcoming 12-month performance period, (b) prepare a written evaluation of goals and objectives for the past and upcoming year, (c) meet and discuss the written evaluation of these goals and objectives, and (d) present a written summary of the evaluation results to Manager. Unless Manager expressly requests otherwise, the evaluation shall be conducted in executive session of the City Council. 16. Hours of Work. It is recognized that the position of city manager is a full-time position and that Manager must devote a great deal of time outside normal office hours on business for the City, and to that end, Manager shall be allowed to establish an appropriate work schedule. The schedule shall be appropriate to the needs of the City and shall allow Manager to faithfully perform Manager's assigned duties and responsibilities. 17. Ethical Commitments. Manager shall at all times uphold the tenets of the ICMA Code of Ethics, as the same may be amended from time, which is incorporated by reference as if fully set forth at length. Specifically, Manager shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fund-raising activities for individuals seeking or holding elected office, nor seek or accept any personal enrichment or profit derived from confidential information or misuse of public time. The City Council shall support Manager in keeping these commitments by refraining from any order, direction or request that would require Manager to violate the ICMA Code of Ethics. Specifically, neither the City Council nor any individual member thereof shall request Manager to endorse any candidate, make any financial contribution, sign or circulate any petition, or participate in any fund-raising activity for individuals seeking or holding elected office, nor to handle any personnel matter on a basis other than fairness, impartiality and merit. 18. Outside Activities. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the City and the community, Manager may elect to accept limited teaching, consulting or other business opportunities with the understanding that such arrangements must not materially interfere with nor constitute a conflict of interest with Manager's responsibilities under this Agreement. In addition, Manager may engage in such activities to manage his personal investments and to participate in charitable and philanthropic activities so long 4 as such activities do not materially interfere with or conflict with the performance of Manager's duties under this Agreement. Any outside activity described in this Paragraph shall not be deemed to materially interfere or conflict with Manager's performance unless Manager has failed to cure any alleged interference or conflicts within thirty days of receiving written notice from the City. 19. Bonding. The City shall bear the full cost of any fidelity and other bonds required of Manager under any law or ordinance. 20. Appropriation of Funds. The City has appropriated, set aside and encumbered, and does hereby appropriate, set aside, and encumber, available and unappropriated funds of the municipality in an amount sufficient to fund and pay all financial obligations of the City pursuant to this Agreement, including but not limited to, the severance and other benefits set forth in Section 12 above. 21. Residence and Moving and Relocation Expenses. Manager agrees to establish residence within the corporate limits of the City within 6 months of employment and thereafter to maintain housing within the City's corporate limits. The City shall reimburse employee a total amount not to exceed $16,000 for relocation and moving expenses to locations in the City's corporate limits. Such reimbursable expenses will include costs of temporary housing during the initial year of employment, moving personal property of Manager and Manager's family, packing, storage, unpacking, and insurance related to up to two moves during the initial two years of employment, and mileage calculated at the standard IRS rate for transporting vehicles from Manager's current residence. Manager shall reimburse the City for reimbursed moving and relocation expenses if the Manager chooses to terminate this agreement without good cause within the initial two years of employment. "Good cause" shall mean, without the Manager's written consent, (a) a material change in the duties or responsibilities of the Manager, (b) a diminution in the Manager's compensation; or(c) a material breach of this Agreement by the City. 22. Notices. Notice pursuant to this Agreement shall be given either by hand delivery or by depositing in the custody of the United States Postal Service, postage prepaid, and addressed as follows: CITY: City of Corpus Christi,Texas Attn: City Secretary P. O. Box 9277 (78469) 1200 Leopard Street Corpus Christi, Texas 78401 MANAGER: [The residence address as provided in the records of the City.] 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. 23. Outside Counsel. The parties acknowledge that the City, acting through its City Council, will retain John D. Bell of the law firm of Wood, Boykin & Wolter, as outside counsel to advise the City Council concerning matters pertaining to this Agreement. Work on this agreement prior to the appointment of Manager and approval as to form of the Agreement by the 5 City Attorney pursuant to the terms of the Corpus Christi City Charter is agreed by the parties not to represent any conflict of representation by the City Attorney. 24. General Provisions. (a) Integration. This Agreement sets forth and establishes the entire understanding between the City and Manager relating to the employment of Manager by the City. Any prior discussions or representations by or between the City and Manager are merged into and rendered null and void by this Agreement. The City and Manager 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. (b)Binding Effect. This Agreement shall be binding on the City and Manager as well as their respective 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 the City and Manager subsequent to the expungement or judicial modification of the invalid provision. (d) Enforceability. The Agreement shall be interpreted and enforceable according to the laws of the State of Texas and is performable and enforceable in Nueces County, Texas, which courts shall have exclusive jurisdiction concerning any matters in controversy. DULY AUTHORIZED AND EXECUTED by the parties as provided below. CITY OF CORPUS CHRISTI, TEXAS MANAGER: OA- Ma roe McComb ' •ter D. Zanoni Date: A ccy C , 201'. Date: May 3 , 2019. ATTEST: k 119. a ' • RE=ECCA HUERTA .. CITY SECRETARY APPROVED AS TO LEGAL FORM: 7119—` `r # AUTH KI[a !Y CiX/NCll 6 SECRETARY