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Resolution No. 91-52 CITY OF TIGARD, OREGON RESOLUTION NO. 91-J A RESOLUTION OF THE TIGARD CITY COUNCIL APPROVING THE EMPLOYMENT AGREEMENT WITH PATRICK J. REILLY, CITY ADMIN=STRATOR WHEREAS, the Tigard City Council has reviewed performance of Patrick J. Reilly as City Administrator for the period through # -�A.-.i 3.01954, as provided under City - rules and in the ployment'Agreement; and WHEREAS, the Tigard City Council has found the City Administrator Is employee performance to be satisfactory. NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: Section 1: The Employment Agreement first entered into with Patrick J. Reilly dated September 18, 1988, is hereby further amended by mutual agreement of the parties as set forth in the attached Exhibit "A." This Agreement will take effect July 1, 1991, and upon taking effect shall repeal and replace all prior Agreements. PASSED: This t ls/kh day of .y. - City of Tigard ATTEST: � City Recorder - City of Turd RESEMPLOY } i AN EMPLOYMENT AGREEMENT (Revised Text as Amended Through July 1, 1991) THIS EMPLOYMENT AGREEMENT, made and entered into this 1st day of July, 1991, by and between the CITY OF TIGARD, OREGON, hereinafter referred to as "CITY," and PATRICK J. REILLY hereinafter referred to as "EMPLOYEE." WITNESSETH' WHEREAS, CITY and EMPLOYEE desire a written agreement creating a professional and businesslike relationship serving as a basis for effective communication and to avoid misunderstanding; and, WHEREAS, by not having to worry about personal finances or family security, the EMPLOYEE can effectively concentrate on the CITY'S business; THEREFORE, in consideration of mutual covenants herein contained and for consideration herein specified, the CITY and EMPLOYEE mutually agree: SECTION 1 — EMPLOYMENT, DUTIES AND AUTHORITY: The CITY has agreed to employ Patrick J. Reilly as City Administrator. The EMPLOYEE agrees to accept said employment. The authority of EMPLOYEE, consistent with state law, 1 EMPLOYMENT AGREEMENT s City Charter of ordinance, shall include, but not be limited to the following: the overall management, administration, and direction of City operations; the hiring disciplining, and firing of all City employees except Municipal Judge and City Attorney; the negotiation, execution and administration of City contracts within budget appropriations pursuant to City policy and ordinance; policy advice to elected officials and open communication with the community so as to foster responsive and courteous public service. Any reduction or revocation of either the duties or authority, except by mutual written agreement to the contrary, shall constitute a breach of this Agreement. The May:)r and Council agree to the principal of noninterference in the administration as necessary to the orderly and efficient implementation of Council Policy. The Mayor and Council agree to direct their concerns and communications to the administration through the City Administrator. The EMPLOYEE agrees to respond promptly to all inquiries from the Council whether made individually or collectively. SECTION 2 - TERM: The term of this revised agreement shall be for two years commencing on July 1, 1991, with annual renewals as herein provided. A. Nothing in the Agreement shall prevent, limit, or otherwise interfere with the right of the City Council to terminate 2 — EMPLOYMENT AGREEMENT r the services of EMPLOYEE at any time, subject only to the provisions set: forth in this Agreement. B. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the EMPLOYEE to resign at any time from his position with the CITY, subject only to the provisions set forth in this Agreement. C. EMPLOYEE agrees to remain in the exclusive employ of the CT-TY during the term of this Agreement, neither to accept, nor to become employed by any other employer until said contract termination date, unless said termination is effected as hereinafter provided. The term "employed" shall not be construed to include occasional teaching or consulting on the EMPLOYEE's time off, which shall be at the EMPLOYEE's direction upon the ac'vice of the Mayor. SECTION 3 - ANNUAL RENEWALS: Unless the CITY notifies the EMPLOYEE to the contrary in writing thirty (30) days before the start of each remaining agreement year, it shall be deemed that the CT-TY has renewed this Agreement for one (1) year beyond the term of that current agreement. Unless the EMPLOYEE notifies the CITY to the contrary in writing thirty (30,) days before the start of the remaining agreement year, EMPLOYEE agrees to accept renewal of this Agreement as heretofore stated. If the term of the agreement is not extended as herein provided, it shall be allowed to reach its 3 -- EMPLOYMENT AGREEMENT existing, effective ending date. Renewal shall automatically occur unless specific action to the contrary is taken or a mutually agreed upon change to this Agreement. SECTION 4 - TERMINATION AND SEV MANCE: A. Termination Without Cause. This Agreement may be terminated by either the CITY or EMPLOYEE for any reason whatsoever upon the giving of sixty (60) days' written notice to the other party. B. Termination for Cause. In the event of a For-Cause Termination, this Agreement shall not be deemed to construe any waiver of rights or remedy available to any employee. This Agreement may be terminated immediately For Cause in the sole discretion of the CITY upon the occurrence of any one of the following events: (1) EMPLOYEE willfully and continuously fails or rebuses to comply with the policies, standards, and regulations of the CITY as are, from time-to-time, established; (2) EMPLOYEE shall be guilty of fraud, dishonesty, misappropriation of funds, embezzlement, or other act of misconduct in the rendering of services on behalf of the City; 4 - EMPLOYMENT AGREEMENT (3) EMPLOYEE shall fail to refuse to perform faithfully or diligently any of the provisions of this Agreement; (4) EMPLOYEE shall be found unfit for the position per Federal, State, and City rules and regulations applicable to all employees in a For-Cause Termination. C. Not-for-Cause Termination. In the event EMPLOYEE is involuntarily terminated Not-for-Ca,,:se by the City Council before e7:piration of the term of employment and during such time as the EMPLOYEE is willing and able to perform the assigned duties, then in that event the CITY agrees to pay EMPLOYEE on a monthly basis and at the EMPLOYEE'S highest rate of base salary during his term of City employment, for a six (6) month period. Monthly severance payments by CITY shall cease if prior to or during the period of the above scheduled payments, EMPLOYEE accepts employment with another City, or another employer of any other type. However, if EMPLOYEE is terminated For Cause per Section 4B of this Agreement or convicted of any illegal act involving personal gain to him, then CITY shall have no obligation to pay the severance pay. D. If the CITY reduces the salary or other financial benefits of EMPLOYEE in a greater percentage than an applicable across-the-board reduction for all unclassified employees of the City, or if the CITY refuses following written notice requesting compliance with any other provision benefiting EMPLOYEE herein, or 5 - EMPLOYMENT AGREEMENT r if EMPLOYEE resigns following public suggestion, whether formal or informal, by a majority of the City Council that he resign, then the EMPLOYEE may, at his option, deem the Agreement to be involuntarily terminated without cause at the date of such reduction or refusal to comply with the meaning and context of this Agreement, and the severance pay provision under Paragraph C of this section shall apply. Termination or 'resignation in good standing shall entitle EMPLOYEE to a lump-sum payment equivalent to all accrued vacation and other entitlement benefits, except that in no event will these benefits exceed similar benefits accorded other unclassified employees. E. If EMPLOYEE voluntarily resigns his position with the CITY before expiration of said term of employment, then EMPLOYEE shall give the CITY at least sixty (60) days' written notice in advance, and EMPLOYEE shall be present to serve during the period. The City Council shall have the discretion whether EMPLOYEE shall continue in his position during this notice period. SECTION 5 - SALARY, HOURS OF WORK, VACATION AND SICK LEAVE: A. Salary - The CITY agrees to pay the EMPLOYEE for his services in an amount as set by the City Council, payable in the same installments and in the same manner as other employees are paid. There may be performance evaluations as often as the Council deems appropriate and as provided in Section 8 of this Agreement. 6 - EMPLOYMENT AGREEMENT There shall be a merit-pay increase review annually at least thirty (30) days before the effective annual renewal date of this Agreement. The City Council may award a merit bonus, as it deems appropriate, with a cap of five (5) percent of EMPLOYEE's gross wage over the term of this Agreement. EMPLOYEE shall be paid $5,500/month ($66,000 annual equivalent) effective July 1, 1991. B. Hours of Work: Because the EMPLOYEE will devote a great deal of time outside normal office hours to the business of the CITY and because flexibility in hours worked and work schedules benefit both the CITY and EMPLOYEE, the EMPLOYEE has sole discretion as to his work schedule and hours worked. t" C. Vacation: The City recognizes that EMPLOYEE had education and experience equivalent to ten (10) years' employment with the CITY at date of hire on October 3, 1988_ EMPLOYEE shall therefore accrue vacation at fifteen (15) days per year to be used as he deems appropriate, and shall henceforth accrue vacation at said rate equivalent to other unclassified employees_ D. Payroll Reporting: EMPLOYEE shall be on straight salary as per this section of the Agreement and shall be paid automatically by the CITY as per this Agreement. Any vacation or sick leave used shall be reported to the CITY in the same manner as for other City employees. 7 —EMPLOYMENT AGREEMENT SECTION 6 - RETIREMENT, DISABILITY„ AND HEALTH INSURANCE: A. Retirement: The CITY agrees to contribute into either the ICMA Retirement Corporation or the CITY's retirement program, on EMPLOYEE'S behalf, an amount at least equal to that same percentage of salary contributed for the City's other management/professional employees. B. Health Insurance: The CITY agrees to provide a comprehensive annual physical for EMPLOYEE. The CITY agrees to continue to provide coverage and make required premium payments for EMPLOYEE and his dependents for comprehensive medical and dental plans equivalent to other programs provided other regular unclassified employees. C. Life Insurance: CITY agrees to purchase $110,000 Group Term Life Insurance through the IC14A Life Insurance Program on EMPLOYEE's behalf for beneficiary to be named by EMPLOYEE. SECTION 7 - PROFESSIONAL DEVELOPMENT AND EXPENSES: A. The CITY encourages the professional growth and development of the EMPLOYEE and encourages participation as he deems appropriate in professional associations, short courses, seminars and conferences including, but not limited to: the International City Management Association and its annual 8 - EMPLOYMENT AGREEMENT t conference, and the State Municipal League Conference. The CITY shall permit a reasonable amount of time for EMPLOYEE to attend and the CITY shall pay for the direct costs necessary for travel, subsistence and registration subject to reasonable availability of funds and as approved in the annual budget. The CITY shall pay ICMA Conference registration, expenses, except transportation costs for EMPLOYEE,s spouse, if actively participating in the conference. B. The CITY shall provide $250 per month vehicle allowance to EMPLOYEE who shall provide his own vehicle, insurance, operation, and maintenance. EMPLOYEE shall provide for oil and gasoline within the Portland Metro area. CITY shall reimburse for gasoline expenses on City business outside the Portland Metro area. C. The CITY recognizes that certain expenses of a job- affiliated nature are incurred by EMPLOYEE on behalf of the CITY and hereby agrees to reimburse or pay said general expenses on a monthly reimbursement basis, and the CITY shall disburse such monies per receipts or personal affidavits. Any civic service club memberships taken out at CITY expense shall be upon the approval r of the Mayor. SECTION 8 - ANNUAL GOAL-SETTING AND EVALIIATION: The Mayor and individual members of the Council shall be encouraged to periodically identify their concerns to the EMPLOYEE by either informal discussions with the EMPLOYEE or by more formal means 9 _ EMPLOYMENT AGREEMENT during Council meetings. The Council shall meet with the EMPLOYEE at least annually for the purpose of setting Council goals and priorities. The Council and the EMPLOYEE shall meet at least annually to evaluate and access the performance of the EMPLOYEE in meeting or progressing towards the goals formally adopted by Council as well as the exercise of authority granted in Section 1 of this Agreement. These annual evaluations shall be in closed Executive Sessions and shall be conducted at least one hundred and twenty (120) days prior to the annual renewal date of this Agreement. In the event the CITY determines that the performance of the EMPLOYEE is unsatisfactory in any respect or needs significant a improvement in any area, the CITY shall describe these concerns in writing and in reasonable detail or with specific examples so as to be objective and positive in nature. As provided in section 5 of this :agreement, the ENPLOYEE's salary shall be reviewed at least annually after the performance evaluation. SECTION 9 - GENERAL PROVISIONS: A. Professional Liability: The CITY agrees to defend, hold harmless, and indemnify the EMPLOYEE from any and all demands, claims, suits, actions, and legal proceedings brought against EMPLOYEE in his individual capacity, or in his official capacity as agent and EMPLOYEE of the CITY, if EMPLOYEE was acting within 10 - EMPLOYMENT AGREEMENT S the scope of his employment. The CITY agrees to pay premiums an appropriate insurance policies through the CITY's normal insurance program and through the Public officials' Liability Insurance Program of the International city Management Association. B. Other Terms and Conditions of employment may be determined by the CITY relating to the duties and performance o:E the EMPLOYEE provided that such terms and conditions are not inconsistent with the provisions of this Agreement, the City Charter or any other law. EMPLOYEE shall receive benefits equal to those provided to other City management employees, except where specifically addressed in this Agreement. Nothing shall restrict the ability of the CITY and EMPLOYEE to mutually, and in writing, amend or adjust the terms of this Agreement. EMPLOYEE reserves the right to discuss the terms or termination of this Agreement with the Council as a whole in either closed Executive Session or open Regular Session as state law allows and as the EMPLOYEE deems appropriate. C. Except as otherwise specifically provided by this Agreement, the EMPLOYEE shall be entitled to receive the same salary, compensation, vacation, sick leave, and other benefits as accorded any other unclassified City employee, including provisions governing accrual and payment therefor on termination of employment. All provisions of the City Charter and other City programs relating to employee benefits and working conditions as 11 - EMPLOYMENT AGREEMENT e they now exist, or as amended, shall also apply to the EMPLOYEE as to other unclassified employees, and are in addition to any benefits to the EMPLOYEE specifically identified in tbis Agreement. D. The EMPLOYEE is required to maintain residence in the City in accordance to City Code requirements. Temporary relocation circumstances may be approved by the Mayor and Council consent. E. The text herein shall constitute the entire Agreement between the parties and any oral or other understandings are not binding upon the parties, unless specifically amended in. writing by mutual agreement. This Agreement shall be binding and inure to the benefit to the heirs at law and executors of EMPLOYEE. This Agreement shall become effective as of July 1, 1991, and shall remain in effect through July 1, 1993, except if renewed pursuant to this Agreement. F. Severability: If any provision, or any portion thereof, contained in this Agreement is held to be unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable and shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF, the CITY OF TIGARD, OREGON has caused this Agreement to be signed and executed and the EMPLOYEE has signed and executed this Agreement, both in duplicate, the day and year first 12 - EMPLOYMENT AGREEMENT a t { written above. ,�ayor - City of Tigard Patri J. Rei C' y ogee 1 2.t,v�.e C.L�d ATTEST: City RecordeAP ROVED AS - City Attorney MCRnGn \R YAGw— t 13 — EMPLOYMENT AGREEMENT e