City Council

MANISTEE CITY COUNCIL MEETING AGENDA ADDENDUM TUESDAY, JUNE 15, 2021 – 7:00 P.M. – RAMSDELL THEATRE I. Call to Order. c.) MOTION TO AMEND THE AGENDA. Motion to amend the agenda to add item VIII. New Business h.), and i.), allowing action by Council on these additional items. VIII. New Business. h.) CONSIDERATION OF DIRECTING THE CITY MANAGER TO SCHEDULE ADDITIONAL INTERVIEWS OF CANDIDATES, AS MAY BE REQUESTED BY COUNCIL, AND/OR DIRECTING FURTHER SOLICITATION OF POTENTIAL CANDIDATES THROUGH THE MICHIGAN MUNICIPAL LEAGUE. City Council at its May 13, 2021 meeting authorized the City Manager to initiate discussions with Gregory M. Elliott on an acceptable employment agreement, which was to be presented to Council for its consideration prior to execution. Discussion took place at the meeting as to whether Council should consider other candidates and/or conduct other interviews for the position of City Manager. At this time Council could take action to direct the City Manager to schedule additional interviews of candidates as may be requested by Council and/or direct further solicitation of potential candidates through the Michigan Municipal League or otherwise. i.) CONSIDERATION OF APPROVING AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF MANISTEE AND CITY MANAGER CANDIDATE GREGORY M. ELLIOTT. At the May 13, 2021 special Council meeting, Council took action to make a conditional offer of employment to Gregory M. Elliott and to authorize City COUNCIL AGENDA ADDENDUM – JUNE 15, 2021 PAGE 1  Manager Thad Taylor to initiate discussions with Mr. Elliott on the terms of an employment agreement to bring before Council for approval prior to execution. At this time Council could take action to approve the employment agreement between the City of Manistee and City Manager Candidate Gregory M. Elliott and instruct the Mayor and Clerk to execute the document once the required preemployment drug screening comes back with acceptable results. TNT:km ADDENDUM ATTACHMENTS: Draft Employment Agreement COUNCIL AGENDA ADDENDUM – JUNE 15, 2021 PAGE 2  AGREEMENT This Agreement is entered into this __________ day of ___________, 2021, by and between the City of Manistee, a Municipal Corporation (hereinafter “City”), of 70 Maple Street, Manistee, MI 49660, and Gregory M. Elliott (hereinafter “Elliott”). The parties agree and contract as follows: 1 Appointment and Employment as City Manager. The City hereby appoints Elliott as the City Manager in accordance with the Charter of the City of Manistee, Sections 2.14 and 5.1, et seq, to serve in the capacity of City Manager and perform the duties and functions as described in the Charter of the City of Manistee, including Section 5.3, and perform such other duties and functions as may from time to time be assigned by the City Council. Such appointment shall continue until the appointment is withdrawn by the City Council or Elliott’s employment with the City terminates. 2. Acceptance of Appointment. Elliott accepts the appointment as City Manager and promises to faithfully, and to the best of his efforts, discharge the duties, functions and responsibilities of such office as the same are contained in the Charter of the City of Manistee and that may be assigned from time to time by the City Council. 3. At-Will Appointment and Employment. Elliott acknowledges and agrees that his appointment and employment as City Manager for the City is an “at-will” appointment in accordance with the Charter provisions of the City of Manistee, being Section 2.14 and 5.1, et seq. The City may terminate the employment of Elliott as City Manager at its pleasure, subject only to the terms and conditions contained in this Agreement. 4. Remuneration. A. Salary and Evaluation. During the term of appointment, the City Manager shall be remunerated at a salary to be set from time to time by the City Council. The annual rate of remuneration for Elliott shall be One Hundred Ten Thousand ($110,000) per year, payable bi-weekly, less any applicable federal, state and local taxes. At the anniversary of Elliott’s employment, the remuneration for the previous year shall be increased by the greater of two (2%) percent or the average increase in compensation for City Department Directors. B. Performance Evaluation and Salary Adjustment(s). Performance goals and objectives will be established annually. C. Fringe Benefits. During the term of appointment, Elliott, as the City Manager, shall receive the following fringe benefits: i. Retirement. City and Elliott shall identify a mutually acceptable division of its various MERS defined benefit plans with which to associate Elliott as an employee. 1 ii. Vacations. Elliott shall be entitled to five (5) weeks paid vacation. iii. Insurance. Elliott shall receive those insurance benefits provided other City Department Directors, excluding compensatory time but including: a. Priority Health Insurance POS HSA $2,000/$4,000 (family coverage), Delta Dental Insurance and Vision Services Plan. Current employee monthly contribution toward cost of health insurance is $112.00/Single, and $257.00/Double and $313.00/Family. Elliott may elect to “opt out” of the medical and health insurance provided in this paragraph in which case City would pay to Elliott $400 per month, to be deposited into an ICMA City 457 Deferred Compensation Account in Elliott’s name. b. City shall make contributions to an HSA account in the name of Elliott in accordance with the contribution made for City Department Directors. The City’s annual HSA contribution is currently $1,500/Single or $3,000/Double and Family. Prorated HSA payment for year of hire. Prior to the annual contribution made to employee HSA accounts by City, City shall make a pro-rated contribution to Elliott’s HSA account based upon the remaining number of whole months in the medical insurance year to twelve. Notwithstanding the above, should Elliott opt out of the City offered medical and health insurance the City shall not make the contribution to an HSA account in the name of Elliott as described in this paragraph; c. Term life insurance in an amount of 150% of the City Manager’s annual salary; d. Short and Long-term disability benefits in accordance with the benefit provided to City non-union Department Heads; and e. Paid holidays. iv. Car Allowance. City shall pay to Elliott the sum of $400 monthly as a car allowance. v. Moving Expenses. City shall pay up to $5,000 in verified, qualified moving expenses deductible under Section 217 of the Internal Revenue Code. vi. Professional Dues and Continuing Education. The City shall provide membership dues for involvement in professional organizations, such as the International City, County Management Association, and the Michigan Municipal Executives that are directly in the interest of the City and Elliott’s performance as City Manager on behalf of the City, as approved by the City Council. Further, the City will pay for attendance at continuing education for seminars and classes directly in the interest of the City and Elliott’s performance as City Manager on behalf of the City, as approved in advance by the City Council. 2  vii. Service Club Dues. The City shall pay, on behalf of Elliott, dues for Elliott’s membership in one local service club. 5. Hold Harmless. The City will indemnify and hold Elliott harmless from liability for any claims or demands arising out of an act or omission occurring in the performance of Elliott’s duties as City Manager, except as to those acts or omissions deemed to constitute gross negligence, deliberate misconduct, intentional discrimination, or criminal acts. 6. Severance Pay. In the event that the City revokes the employment and appointment of Elliott according to its prerogatives as specified in the City Charter as heretofore referenced, the employment and appointment of Elliott shall cease, together with the cessation of any payment of salary or fringe benefits. If Elliott is not discharged for cause he shall be entitled upon his beginning employment to receive a gross severance pay of Six (6) months of annual salary, less applicable federal, state and local taxes, together with Six (6) months continuation of medical and hospitalization coverage, the premiums of which shall be paid by the City. At each annual anniversary following his third years of employment, and dependent upon approval of Council and a satisfactory evaluation, if Elliott’s employment and appointment is revoked for any reason other than for cause (as described Section 7) he shall be entitled to receive gross severance pay of one additional month salary, less applicable federal, state and local taxes, together with one additional month continuation of medical and hospitalization coverage, the premiums of which will be paid by the City, up to a maximum of Nine months. Thus, the severance pay provided for in this paragraph, subject to the above language, shall be: Date of hire – three years = Six (6) months; Three years- four years = Seven (7) months; Four years – five years = Eight (8) months; and Greater than Five (5) years = Nine (9) months. Elliott agrees to provide the City with not less than ninety (90) days’ notice of his leaving the employ of the City. In the event Elliott resigns his appointment and employment with City, no severance pay shall be payable. If the revocation of Elliott’s employment and appointment is a dismissal for cause, as described in Section 7 below, Elliott shall not be entitled to receive any of the severance compensation as described in this Section 6. 7. Dismissal for Cause. Should Elliott be dismissed for cause, the payments required under Section 6 above, shall not apply. "Cause" for the purpose of this agreement is defined as (i) fraud, misappropriation or embezzlement, (ii) Elliott’s intentional breach of the provisions of this agreement, (iii) Elliott’s malfeasance, nonfeasance or willful failure to perform the services of City Manager, (iv) Elliott's incapacity for other than work-related reasons. 8. Severability. The City and Elliott agree that if any part of this Agreement shall be held unenforceable, null or void, that the rest of the Agreement shall remain in full force and effect. 3 9. Interpretation. This Agreement shall be interpreted according to the Charter of the City of Manistee and the laws of the State of Michigan. 10. Entire Agreement. This document represents the entire agreement of the parties and incorporates herein all negotiations, discussions and agreements of the parties and no other agreements exist between the parties that are not included herein. This Agreement may be modified only upon written document acknowledged and signed by both parties. CITY OF MANISTEE ___________________________________ Roger Zielinski, Mayor Dated ___________________________________ Heather Pefley, City Clerk Dated ___________________________________ Gregory M. Elliott, City Manager Dated 4