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HomeMy WebLinkAboutContract CAG-18-054 CITY OF RENTON CHIEF ADMINISTRATIVE OFFICER EMPLOYMENT AGREEMENT 2018 Employment Agreement Introduction r This Agreement, made and entered into this 1-0dayof a1 Gvn, , 2018 by and between the City of Renton, Washington a municipal corporation, (hereafter "Employer") and Robert Harrison, (hereafter"Employee") an individual who has the education, training and experience in local government management, both of whom agree as follows: Section 1: Term Employee shall commence employment for Employer on May 1, 2018, as an "at-will" employee. This Agreement shall remain in full force and effect from date of execution until Employee's employment is terminated by the Employer or Employee as provided herein. Section 2: Duties and Authority Employer agrees to employ Employee as its Chief Administrative Officer to perform the functions and duties specified in Renton Municipal Code Section 3-1-2, as such section may be amended, and to perform such duties in accordance with all applicable laws, City of Renton policies, and the International City Manager's Association (ICMA) Code of Ethics, as such may be amended by the ICMA. Section 3: Compensation A. Base Salary: Employer agrees to pay Employee in accordance with Employer's applicable Index of Positions and Pay Ranges. Employee's initial base salary will be set at Step E of Grade m53 of the Employer's 2018 Index of Positions and Pay Ranges, which currently provides for a monthly salary of$15,470. B. Annual cost of living adjustments and other changes to Employee's base salary shall be made in accordance with the City of Renton's Council discretion, and shall be consistent with the Employer's compensation policies for other non-union management positions. Section 4: Health, Disability and Life Insurance Benefits A. The Employer agrees to offer Employee medical, dental, and vision insurance for the Employee and his dependents at the same premium sharing and coverage levels offered to all other non-union full time management level employees. B. The Employer agrees to provide Employee with the same life, disability, and other insurance policies provided to, or as may be provided to, non-union management positions. Section 5: Paid Leave Employee shall receive the same paid time off benefits provided to senior management level non-union employees. Vacation accruals shall be calculated as though Employee has 19 years of service for the City on his first day of employment. Sick leave shall accrue at the same accrual rates for other non-union employees, and, in addition to such accruals, Employee shall be provided a starting sick leave bank of 240 hours. Employee shall receive a management leave bank of 56 hours per year, which shall not be prorated in 2018, but shall otherwise be subject to the same rules for use as other senior management level non-union employees. Accrued balances of paid leave shall be paid to Employee upon separation from employment in accordance with the same policies, procedures, and restrictions applicable to other senior management level non-union employees cashing out paid leave. Currently, vacation leave balances are paid to other such employees at time of separation, but management leave, sick leave, and personal holidays are not. Section 6: Automobile The Employer shall provide access to available City owned and maintained City vehicles for use by Employee for travel from City Hall to other City worksites or employment related activities. Compensation for miles driven in Employee's personal vehicles for employment related activities shall be provided in accordance with the same policies that apply to other non-union management employees. Section 7: Retirement and Deferred Compensation A. The City will contribute 7% of base wages to 401(a) retirement plan, with the same record keeper and investment options as the City's 457 Deferred Compensation plan. Mr. Harrison may, prior to his date of hire, notify the City that he elects to also have employee contributions to the plan. Once established, he may not change the employee contribution rate for the term of his employment. B. The Employer agrees to provide Employee all current and future benefits provided to other non-union management staff as stated in the City Personnel Policy and Procedures unless they are specifically addressed in this agreement. Such benefits are in addition to the other benefit provisions of this agreement. Section 8: General Business Expenses A. Subject to sufficient budget resources, Employer agrees to budget for and to pay for: 1. Professional dues and subscriptions of the Employee necessary for continuation and full participation in national, regional, state, and local associations, and organizations necessary and desirable for the Employee's continued professional participation, growth, and advancement, and for the good of the Employer; specifically the Local Government Hispanic Network(LGHN); International City/County Management Association (ICMA), Washington City/County Management Association (WCCMA) and the Association of Washington Cities (AWC). 2. Travel and subsistence expenses of Employee, in compliance with city policy, for professional and official travel, meetings, and occasions to adequately continue the professional development of Employee and to pursue necessary official functions for Employer, including but not limited to the ICMA Annual Conference, the ICMA West Coast Summit, the WCCMA spring and summer conferences, the state league of municipalities, and such other national, regional, state, and local governmental groups and committees in which Employee serves as a member; 2 3. Travel and subsistence expenses of Employee, in compliance with city policy, and with prior approval by the mayor, for short courses, institutes, and seminars that are necessary for the Employee's professional development and for the good of the Employer. B. 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 Administrative Services Administrator is authorized to disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. Section 9: Termination A. Employee shall serve at the pleasure of the Mayor as an "at-will" employee and his employment and all benefits, rights, and duties thereof may be terminated by the Mayor"for cause" or"without cause." Employee may also resign "for cause" or"without cause." B. For the purpose of this Agreement, an Employer initiated termination "for cause" shall occur only upon a finding by the Mayor that Employee: 1. Willfully violated a lawful duty of Employee's office; 2. Willfully violated local, state, or federal laws while carrying out Employee's duties on behalf of Employer; 3. Willfully violated the ICMA Code of Ethics; or 4. Engaged in misconduct or gross misconduct as defined by RCW 50.04.294, as that section may be amended or recodified. Such finding must be based upon substantial evidence that the Mayor in good faith believes to be true and is not based upon an illegal or arbitrary purpose. All other Employer initiated terminations shall be considered "without cause" for the purposes of this Agreement. C. For the purpose of this Agreement, an Employee initiated resignation shall be considered "for cause" if the Employee is in compliance with all duties and requirements of this Agreement and the factual basis for Employee's resignation termination/resignation is: 1. Employer reduced Employee's base salary or other benefits to a greater relative degree than the salaries or benefits of department administrators; 2. The Mayor ordered Employee to perform an act that, if performed, would justify an employer initiated "for cause" termination as defined above; 3. Employee's resignation is in response to (a) unlawful harassment or discrimination against Employee, or (b) an offer by Employer for Employee to resign on his own accord in lieu of Employer terminating Employee without cause. Any other employee 3 initiated employment termination/resignation shall be considered a "without cause" resignation for purposes of this Agreement. D. Either party wishing to terminate this Employee's employment with the Employer"for cause" shall first notify the other party in writing of the factual "for cause" basis and provide the other party a reasonable opportunity to be heard and, if possible, a reasonable opportunity to cure or correct the condition justifying the "for cause" termination. Because Employee is an "at-will" employee, the notice and reasonable opportunity to be heard and cure or correct is not a condition precedent to termination of employment. However, failure to provide such notice and reasonable opportunity to be heard and cure or correct prior to effectuating a termination shall result in the termination being "without cause" for the purpose of this Agreement. Section 10: Termination Pay A. If Employer terminates Employee's employment "without cause" or Employee resigns "with cause," Employer shall pay Employee "Termination Pay" in addition to all other pay and benefits Employee is legally entitled to receive for work performed prior to termination. B. Termination Pay shall consist of a payment equal to six months of Employee's highest base monthly salary within the 24 months preceding termination. This Termination Pay shall be paid in a lump sum unless otherwise agreed to by the Employer and the Employee. If Termination Pay is payable under the terms of this Section, Employer shall pay for up to six months, in addition to the Termination Pay, the portion of Employee's COBRA costs for the City's Health, Vision and Dental Insurance Plans that exceed what his premium share would have been if he was still employed ("COBRA Costs"). COBRA Costs shall be paid directly by the City towards the premiums on a monthly basis for up to six months after termination. In the event Employee is reemployed by a new employer within that time or obtains alternative insurance coverage, Employee shall notify the City and the City will discontinue paying for COBRA Costs effective upon the start date of Employee's position and/or insurance coverage. C. Termination Pay shall not be paid to Employee if the termination was initiated by the Employer"with cause" or by the Employee "without cause." D. Employee acknowledges and agrees that he has no right to continued employment under this Agreement and his sole remedy for payment relating to the termination of this Agreement is limited to the terms under which Termination Pay is or is not available. Employee further agrees that because he has no right to continued employment and the negotiated Termination Pay is not for services performed, Termination Pay shall not be considered wages for purposes of Chapter 49.52 RCW. If Employee files any legal action or complaint with a regulatory agency seeking damages related to his employment with Employer or the termination of his Employment, such action shall act as a waiver of any right Employee may otherwise have to claim Termination Pay. Such waiver shall not apply with respect to claims filed with the Washington State Employment Security Department for unemployment compensation or the dispute resolution process in Section 10.E. 4 E. The Mayor shall initially decide whether Employee is eligible under this Agreement to receive Termination Pay within 14 days of the effective date of Employee's termination/resignation. Such decision shall be made and delivered to Employee in writing. If Employee disputes the Mayor's finding, Employee shall provide the Mayor written notice of dispute that identifies the specific basis for the dispute. The written notice of dispute must be delivered to the Mayor within 14 days of Employee's receipt of the Mayor's initial finding. Within 14 days of receiving the Employee's notice of dispute, the parties shall arrange for a meeting or, if agreed by the parties, a mediation session to resolve the dispute. Unless otherwise agreed, each party shall bear the costs of such mediation or negotiation, including their attorney's fees incurred therein. If the dispute cannot be resolved by negotiation within 45 days of the effective date of Employee's termination/resignation, either party may demand binding arbitration of the dispute with an arbitrator and rules agreed to by the parties. If the parties do not agree to an arbitrator and rules of arbitration, the dispute shall be settled by binding arbitration in accordance with the rules of procedures of the American Arbitration Association with a single arbitrator. Each party shall prepay half the fees charged by the arbitrator. The prevailing party to such arbitration shall be entitled to recover from the other party its reasonable attorney's fees and costs of arbitration, including any prepaid non-refundable arbitrator fees. The place of arbitration shall be in Renton, Washington, unless otherwise agreed. Washington state law shall apply and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The scope of the arbitration shall be limited to Employee's right to Termination Pay under this Agreement. The Arbitrator shall not award any front pay, back pay, or other damages to either party beyond an award of Termination Pay and reasonable fees and costs. F. Employer's obligation to pay Termination Pay under this Section is contingent upon Employee first accepting and executing an enforceable written waiver and release of all Employee's claims, in a form approved by the City Attorney, in which Employee waives and releases all his claims (known and unknown) against Employer, its officials, employees and agents that arise out of or relate to Employee's employment for Employer or the termination thereof. Such written waiver and release shall be provided to Employee within 14 days of the Mayor's or arbitrator's decision that Employee is eligible for Termination Pay. Any arbitrator decision to award Termination Pay shall be contingent upon Employee's execution of such waiver and release. Section 11: Resignation In the event that the Employee voluntarily resigns his position with the Employer, the Employee shall provide a minimum of 60 days notice unless the parties agree otherwise. Section 12: Hours of Work It is recognized that the Employee must devote a great deal of time outside the normal office hours on business for the Employer, and to that end Employee shall be allowed to establish an appropriate work schedule that is subject to the approval and changes by the Mayor. 5 Section 13: Outside Activities The employment provided for by this Agreement shall be the Employee's sole employment. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the Employer and the community, the Employee may elect to accept limited teaching, consulting or other business opportunities with the understanding that such arrangements shall not constitute interference with nor a conflict of interest with her responsibilities under this Agreement. Section 14: Indemnification The City shall defend and indemnify Employee pursuant to the terms of Chapter 1-9 of the Renton Municipal Code. Section 15: Bonding Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 16: Confidentiality Employee agrees that his position is a managerial position and acknowledges that he will occupy a position of confidentiality involving personnel, labor relations and legal matters. Section 17: Notices 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: City of Renton Mayor, 1055 South Grady Way, Renton, WA 98057 (2) EMPLOYEE: Robert Harrison, 1822 East Beaver Lake Drive SE, Sammamish, WA 98075. 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 18: General Provisions A. Integration. This Agreement sets forth and establishes the entire understanding between the Employer and the Employee relating to the employment of the Employee by the Employer. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreement. The parties by mutual written agreement may amend any provision of this agreement during the 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 Employer and the Employee as well as their heirs, assigns, executors, personal representatives and successors in interest. 6 C. Interpretation and Severability. This Agreement shall be interpreted whenever possible so that all portions herein are consistent and compatible with applicable laws. However, the invalidity or partial invalidity of any portion of this Agreement will not affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if they have been executed by both parties subsequent to the expungement or judicial modification of the invalid provision. EMPLOYER EMPLOYEE CI— I.PA/14C- 69-AiAr list Denis Law, Mayor Robert Harrison Attest: Al3 2-t)le)/ Jasc-r Se-r, Ci lerk Approved as to form: = , s -; ' Eit = ...040pee kacA„ -i �iA U IINUN �� Shane Moloney, City Attorney "'i �'Qe4T p5EQ� 7