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AGREEMENT TO SERVE AS CITY MANAGER (8) I I AGREEMENT AGREEMENT, is entered into this it) d.- day of ,2001, by and between the CITY OF CLEARWATER, FLORIDA (hereina r the "City"), and WILLIAM B. HORNE II (hereinafter the "Employee"). WHEREAS, the City Commission selected Employee at a public meeting on July 10, 2001, to serve as City Manager; and WHEREAS, it is the desire of the City Commission that the City enter into this agreement to provide certain benefits, establish certain conditions of employment, and set working conditions of the Employee; and WHEREAS, it is the desire of the City Commission: (1) to secure and retain the services of Employee and provide inducement for him to remain in such employment; (2) to make possible full work productivity by assuring Employee's morale and peace of mind with respect to future security; (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of the Employee; and (4) to provide a just means for terminating Employee's services; now therefore, IN CONSIDERATION of the mutual covenants contained herein, the parties agree as follows: Section 1. Duties and Responsibilities. (a) Employee agrees to serve as City Manager of the City of Clearwater and to fill the duties of that office as set forth in the City Code and City Charter. (b) Employee agrees to remain in the exclusive employ of the City and shall not engage in any other employment or business activity without specific prior approval of the City Commission. (c) Employee agrees to continually provide his best efforts to efficiently and effectively perform his duties in a professional manner, uphold the City regulations and policies, support the council/manager form of government as expressed in the City Charter, advance the mission statement values and principles of operation as adopted by the City Commission, and abide by ethical standards of conduct including the City's Code of Ethics. Section 2. Term. (a) Employee serves at the pleasure of the City Commission. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the City Commission to terminate the services of Employee at any time in accordance with the applicable provisions of the City Charter. (b) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time. '. f\'. (;1) .r/J /.. I I (c) Nothing in this agreement shall be construed to establish a fixed term of office. (d) Employment shall continue until termination in accordance with this agreement. Section 3. Termination and Severance Pay. (a) The City specifically agrees that because the City Manager is a full-time employee of the City, the sole remedy for any error, omission, negligence or the like of the City Manager is termination of employment, except as otherwise provided in the City's Code of Ethics, whereby the City may recover any pecuniary benefits received by the Employee because of the violation of said code. (b) Employee agrees that because his continued employment as City Manager is solely at the discretion of the City Commission, should employment be terminated by the City Commission for any reason, Employee hereby expressly waives any right to seek redress in any manner except as herein provided. (c) Termination Without Cause. In the event Employee is terminated by the City Commission during such time that Employee is willing and able to perform the duties of City Manager and such termination is without cause, then in this event the City agrees to pay Employee on the last day of employment: 1. A lump sum cash payment equal to six (6) months' aggregate salary at the rate in effect at the time of termination plus one (1) month for each year of employment not to exceed the total of six (6) additional months. (Aggregate salary shall include the base compensation of Employee and the City's contribution to the Money Purchase Pension Plan. The City's Money Purchase Pension Plan payments that are due shall be deposited with the appropriate fund for the benefit of Employee.) 2. All accumulated and unused general leave (as herein defined) of Employee. (d) Termination of Employee's agreement by the City within the meaning of this section shall mean any formal or informal action of the City Commission requesting that he resign or dismissing him from his employment with the City. Employee may elect to treat as termination of his employment by the City, within the meaning of this section of the agreement, any other action of the City Commission which eliminates or reduces benefits to which Employee is entitled under this Employment Agreement, the City Charter, or the City Code of Ordinances or the role of City Manager as defined in the Charter, in a greater percentage than an applicable across-the board reduction for other executive/managerial personnel of the City whose purpose is to induce Employee to terminate employment with the City. 2 (tJ I I (e) Termination Because of Illness or Iniurv. In the event Employee is terminated by the City Commission or elects to resign his position because Employee is beset with any chronic, debilitating illness or injury which prevents Employee from undertaking or performing the responsibilities of the position of City Manager, than in that event the City Commission agrees to pay Employee on the last day of employment: 1. A lump sum cash payment equal to six (6) months' aggregate salary at the rate in effect at the time of termination plus one (1) month for each year of employment not to exceed the total of six (6) additional months. (Aggregate salary shall include the base compensation of Employee and the City's contribution to the Money Purchase Pension Plan. The City's Money Purchase Pension Plan contribution payments that are due shall be deposited with the appropriate fund for the benefit of Employee). 2. All accumulated and unused general leave of Employee. (f) Termination for Cause. In the event Employee is terminated by the City Commission for proper and just cause, including but not limited to misfeasance, malfeasance, neglect of duty, or conviction of a felony, Employee shall receive no severance pay but shall be paid only for any accrued and unused general leave. Should the City Commission terminate Employee for proper and just cause, then the City Commission agrees upon request of Employee to appoint a hearing officer, mutually acceptable to the City Commission and Employee. The hearing officer shall conduct a hearing and issue findings of facts within 60 days of the termination. The City Commission and Employee will be bound by the findings of fact. The City Commission will provide Employee an opportunity to respond to the fact report at a public hearing. (g) Voluntary Resianation. In the event Employee resigns to accept other employment or for reasons other than those enumerated above, Employee shall not receive any severance pay, but shall be paid for the accrued and unused general leave as of the effective date of the resignation. Employee agrees to inform the City Commission in writing of voluntary resignation and shall provide at least two months' notice in advance unless Employee and City Commission otherwise agree. (h) In the event of termination as set forth herein other than a voluntary resignation pursuant to Paragraph (g) above, the City agrees to continue paying its portion of medical insurance, including but not limited to, COBRA benefits for Employee only, for a period not to exceed the severance period provided herein. In the event that during such period Employee shall obtain other employment wherein such benefits are paid, the City's obligation to continue paying such medical and other insurance shall cease as of the effective date of such other insurance coverage or the end of the severance period, whichever comes first. Section 4. Salarv and Other Benefits. 3 rb I I (a) The City agrees to pay Employee for his services pursuant hereto an annual base salary of $120,000, made payable in biweekly installments beginning August 2, 2001, with a review of salary and benefits annually in October of each year beginning in 2002. In addition, the City agrees to pay Employee a one-time lump sum payment of $10,000 payable before August 10, 2001. (b) The City agrees to contribute an amount equal to 15 percent of Employee's annual base salary to the City's Money Purchase Pension Plan on behalf of Employee, such contributions to be made on a pro rata biweekly basis. In the event of termination of Employee, at Employee's option, the City may designate all or any part of his termination to be paid into said Money Purchase Pension Plan, if permitted by law. Upon resignation or termination, the City agrees to transfer ownership of said Plan to the succeeding employer of Employee that Employee shall designate. In the event that contributions to the Money Purchase Pension Plan pursuant to this paragraph are determined to be discriminatory or otherwise unlawful, the parties agree to negotiate in good faith an alternative method of providing Employee equal or similar benefit. (c) (d) expense: Employee shall be covered by federal social security. Employee shall be provided the following benefits at City's cost and 1. Coverage under the City's hospitalization, major medical, and dental programs with the City paying the cost for Employee coverage. This program may at times have multiple plan options for Employee. Employee may include dependent coverage under the program at the city employee group rate if desired and subject to such limitations and available options as provided in such program. 2. Employee will be provided with ten paid holidays each year taken in accordance with practices utilized for other executive/managerial personnel. 3. The City agrees to pay the reasonable dues and subscriptions of Employee necessary for full participation in national, regional, state and local associations and organizations necessary and desirable for the good of the City. 4. The City agrees to pay travel and subsistence expenses of Employee for professional and official travel. 5. Employee will be provided with a $600.00 per month car allowance. 6. Employee shall be given "general leave" in lieu of vacation, sick leave, and floating holidays at a rate of 35 days per year to be accrued biweekly beginning on August 2, 2001. Accumulation of general leave shall be capped at 90 days. When Employee reaches the cap, the City Commission agrees to consider an increase to the cap or buyback of leave. Employee's accrued sick, floater and vacation time shall be converted to general leave. 4 fP I I 7. Employee will be provided life and disability insurance as is provided to City SAMP employees. Section 5. Performance Evaluation. (a) The City Commission shall review Employee at least once annually in accordance with the City Charter. That review and evaluation shall be in accordance with specific criteria developed jointly by the City Commission and Employee. Said criteria may be added or deleted as the City Commission may from time to time determine in consultation with Employee. (b) Annually the City Commission and Employee shall define such goals and performance objectives as they determine necessary for proper operation of the City and the attainment of the City Commission's policy objectives and shall further establish a relative priority among those various goals and objectives, said goals and objectives to be reduced to writing. They shall generally be attainable within the time limit as specified in the operating budget and capital improvements and appropriations provided. (c) In effectuating the provisions of this section, the City Commission and Employee mutually agree to abide by the provisions of the City Charter. Section 6. Other Terms and Conditions of Emplovment. (a) The City Commission shall fix any such other reasonable terms and conditions of employment as it may determine from time to time regarding the performance of Employee provided such terms and conditions are not inconsistent or conflict with the provisions of this agreement, the City Charter or any other law. Section 7. General Provisions. (a) The members of the City Commission and Employee agree to work in the spirit of open communication, cooperation, and an atmosphere of mutual trust and support to attain shared goals. (b) The language of the City Charter as it may be amended from time to time with regard to the powers and duties of the City Manager is incorporated herein by reference. The text herein including the aforesaid provisions of the City Charter and the City Code shall constitute the entire agreement between the parties. (c) This Employment Agreement shall become effective as of August 2, 2001, except as otherwise provided herein, and shall inure to the benefit of Employee, his heirs and personal representatives. 5 !(J I I (d) If any provision or portion thereof contained in this agreement is held to be unconstitutional or invalid or unenforceable, the remainder of this agreement or portion thereof shall be deemed severable and not be affected and shall remain in full force and effect. (e) The City shall indemnify, defend and hold harmless Employee as provided in Chapter; 2, Article 2, Clearwater Code of Ordinances, as adopted on February 4, 1992. Section 8. This agreement constitutes the entire agreement between the parties hereto as to the matters herein contained and shall not be modified in any respect except by an amendment in writing signed by the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed this 10..0:- day of ~, 2001. CITY OF CLEARWATER, FLORIDA By: Brian J. Aungs Mayor-Commi sioner Approved as to form: Attest: 4u'uQ~.Qb,-flr ~/JUL~~ Pamela K. Akin -J;J Cynthia . G udeau --, / City Attorney 1) City Clerk , ~OYEE ~~-:lt IlIiam B. Horne II 6 tA