Resolution No. 04-56 CITY OF TIGARD,OREGON
RESOLUTION NO.04-5�
A RESOLUTION APPROVING AMENDMENTS TO CITY MANAGER,WILLIAM A.MONAHAN'S,
EMPLOYMENT AGREEMENT WITH THE CITY OF TIGARD AND ESTABLISHING SALARY.
WHEREAS,William A.Monahan's Employment Agreement was entered into in 2002,
WHEREAS, In May, 2004, the City Council reviewed the performance of the City Manager and
determined that his performance was satisfactory.
WHEREAS,Council has since ratified the May 2002 Agreement,and
WHEREAS, all prerequisite actions have been accomplished for development of a new Employment
Agreement,including establishment of a new salary to take effect July 1,2004.
WHEREAS,the new monthly salary will be$10,000,with the City Manager eligible for all cost of living
adjustments granted to other City management employees and annual reviews which may result in future
merit based salary increases during the term of the Agreement.
WHEREAS,during the May performance review Council indicated acceptance of new terms to be included
in the new Employment Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that the Tigard City Council
approves the "3-year rolling term" and additional amendments to the Employment Agreement effective
immediately.
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PASSED: This—'77 qday of CJLQ 2004.
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made and entered into this 14th day of May,
2004,by and between the CITY OF TIGARD,OREGON("CITY")and WILLIAM A.
MONAHAN("EMPLOYEE").
RECITALS
A. EMPLOYEE has been employed as the City Manager of CITY since November
15, 1994,and had previously worked for the City in other capacities from August
2, 1982 to January 31,1988 and from August 1, 1994 to November 14, 1994.
B. The current written employment agreement between CITY and EMPLOYEE
expires on May 15,2006. CITY and EMPLOYEE desire a written agreement
setting forth the terms by which EMPLOYEE will continue to serve as City
Manager.
C. The written employment agreement is intended to create a professional and
business-like relationship serving as a basis for effective communication and as a
means for avoiding misunderstanding.
D. By not having to worry about personal finances or family security,the
EMPLOYEE can effectively concentrate on the CITY'S business;
I THEREFORE,in consideration of the mutual covenants contained in this Agreement and
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for the consideration specified in this Agreement,the CITY and EMPLOYEE mutually agree:
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EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE I
SECTION 1-EMPLOYMENT,DUTIES AND AUTHORITY:
A. EMPLOYEE shall continue to serve the CITY as City Manager under the terms
specified in this Agreement. EMPLOYEE'S prior service as specified in Recital A shall be
recognized in CITY records to establish EMPLOYEE'S years of service for length of service
only.
B. The authority of EMPLOYEE,consistent with State law,City Charter or
ordinance,shall include,but not be limited to the following:
(1) The overall management,administration,and direction of City operations;
(2) The hiring,disciplining,and firing of all City employees,except
Municipal Judge and City Attorney;
(3) The negotiation,execution and administration of City contracts within
budget appropriations pursuant to City policy and ordinance;and
(4) 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. In the event of such a breach,
EMPLOYEE may provide written notice requesting compliance with the Agreement as provided
- in Section 3.D.
C. The Mayor and Council of the CITY agree to the principle of non-interference 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 Manager. EMPLOYEE agrees to respond promptly to all inquiries from the
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 2
Council whether made individually or collectively.
SECTION 2:TERMINOTICE OF NON-RENEWAL:
The initial term of this Agreement shall be three years,commencing on May 14,2004. On the
yearly anniversary date the term shall be automatically extended for one(1)year,so that,
following extension,the contract term shall be three years. However,the City Council may
notify the City Manager on or before March 15 that the provision for the annual extension has
been terminated. In that event,the automatic extension provision shall be terminated,and the
Employment Agreement shall expire at the end of the then existing three-year period. The City
Manager may notify the City Council prior to April 15 that he does not desire the extension,in
which case the automatic extension shall be terminated. Nothing in this section prevents
termination of this Agreement as otherwise provided in this Agreement.
A. Nothing in the Agreement shall prevent,limit,or otherwise interfere with the right
of the City Council to terminate 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 CITY during the
term of this Agreement,and agrees neither to accept employment,nor to become employed by
any other employer until said contract termination date,unless said termination is effected as
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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 discretion
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 3
upon advisement to the Mayor.
SECTION 3-TERMINATION AND SEVERANCE:
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. In the event EMPLOYEE is involuntarily terminated without cause by
the City Council before expiration of the term of this Agreement and during such time as the
EMPLOYEE is willing and able to perform the assigned duties,the CITY shall pay EMPLOYEE
on a monthly basis at the EMPLOYEE'S highest rate of base salary during his term of CITY
employment,for a six(6)month period following the termination date.
B. Termination For Cause.This Agreement may be terminated immediately for
cause in the sole discretion of the City upon the occurrence of any of the following events:
(1) EMPLOYEE willfully and continuously fails or refuses to comply with
the policies,standards,and regulations of the CITY as are,from time to time,established;
(2) EMPLOYEE commits an act of fraud,dishonesty,misappropriation of
funds,embezzlement,or other misconduct in the rendering of services on behalf of the
CITY;
(3) EMPLOYEE fails or refuses to perform faithfully or diligently any of the
provisions of this Agreement;
(4) EMPLOYEE is unfit for the position per Federal,State and City rules and
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j regulations applicable to all employees in a For-Cause Termination.
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If EMPLOYEE is terminated for cause or convicted of any illegal act involving personal
gain to him,CITY shall not pay any severance pay to EMPLOYEE.
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 4
C. Acts Constituting Involuntary Termination. 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 management employees of the City,or if the CITY refuses to comply
with the terms of this Agreement following written notice requesting compliance,or if
EMPLOYEE resigns following suggestion at a public meeting,whether formal or informal,by a
majority of the City Council that he resign,then 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 provisions of this Agreement,and the severance pay provision under
Paragraph A of this section apply.
D. Accrued Vacation on Termination. 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 management employees.
E. Notice of Resignation. If EMPLOYEE voluntarily resigns his position with the
CITY before expiration of this Agreement,EMPLOYEE shall give the CITY at least sixty(60)
days'written notice,excluding use of accrued vacation,and EMPLOYEE shall be present to
serve during the 60 day period. After the EMPLOYEE has given notice,the CITY and
EMPLOYEE may agree to a termination date other than that set forth in the notice of
resignation.
j SECTION 4-SALARY,HOURS OF WORK,VACATION AND SICK LEAVE:
i A. Sam.The CITY agrees to pay the EMPLOYEE for his services in an amount set
1 by the City Council,payable in the same installments and in the same manner as other
-EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 5
management employees are paid. The City Council may conduct performance evaluations of
EMPLOYEE as often as the Council deems appropriate and as provided in Section 7 of this
Agreement. The City Council shall review EMPLOYEE annually during the month of April and
may provide an increase in salary based on merit based on that review. When reviewing
EMPLOYEE'S salary,Council will consider the seven city comparables used by the City to
perform labor market comparisons.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.Effective July 1,2004 EMPLOYEE shall be paid$10,000 per month.
B. Cost-of-Living Adjustments:EMPLOYEE shall receive future cost-of-living
allowances in the same percentage and on the same effective date as other City management
employees.
C. 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 schedule benefit both the CITY and EMPLOYEE,the EMPLOYEE has sole discretion as
to his work schedule and hours worked.
D. Vacation:The CITY grants the EMPLOYEE vacation benefits at the rate of
accrual for an employee with 21 years of service as of May 15,2002. EMPLOYEE is subject to
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the same accrual limits as other management employees,to be used as he deems appropriate.
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E. Sick Leave:EMPLOYEE shall be entitled to continue to earn and accrue sick
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i leave benefits on the same terms as other management City employees and that such additional
sick leave shall be added to the sick leave accrued by EMPLOYEE as of the effective date of this
Agreement. EMPLOYEE shall not be eligible to receive any cash or retirement credit for unused
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
_PAGE6
sick leave,even if a benefit allowing the cashing out of unused sick leave,the application of
unused sick leave to retirement benefit,or for any other purpose(other than use of the benefit for
approved leave)is made available to other City management employees.
F. Management Leave: EMPLOYEE shall receive a total of five(5)days
management leave per fiscal year,to be taken consistent with city personnel policies as applied
to management employees. The management leave must be taken by June 30 of each fiscal year
and does not accrue into subsequent fiscal years.
G. 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.
SECTION 5-RETIREMENT,DISABILITY AND HEALTH INSURANCE:
A. Retirement: The CITY agrees to contribute into the CITY'S retirement program,
on EMPLOYEE'S behalf,an amount equal to that same percentage of salary contributed for the
CITY'S other management employees. EMPLOYEE and CITY agree that any future adjustment
to the retirement benefits of management personnel will apply equally to EMPLOYEE at the
same rate of adjustment,effective date,and adjustment to salary. EMPLOYEE is eligible for
City contribution to his ICMA deferred compensation account on the same terms provided to
other City management employees.
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B. Health Insurance:The CITY agrees to provide a comprehensive annual physical
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for EMPLOYEE. The CITY agrees to continue to provide coverage and make full premium
payment for EMPLOYEE and his dependants for comprehensive medical Blue Cross Plan II and
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 7
dental plans equivalent to other programs provided other regular management employees.
C. Life Insurance:CITY will purchase a Life Insurance Policy,the cost of which
shall not exceed$1,000 per year,on EMPLOYEE'S behalf,for a beneficiary to be named by
EMPLOYEE. EMPLOYEE has the right to retain such policy at EMPLOYEE'S expense,
subsequent to tenure as a CITY employee. EMPLOYEE shall have the option of purchasing
Term or Universal Life Insurance. EMPLOYEE may either have the CITY pay the policy
provider directly or compensate EMPLOYEE for the cost of EMPLOYEE'S purchasing the Life
Insurance Policy.
SECTION 6-PROFESSIONAL DEVELOPMENT AND EXPENSES:
A_ The CITY encourages the professional growth and development of the
EMPLOYEE and encourages participation as be deems appropriate in professional associations,
short courses,seminars and conferences including,but not limited to:the International City
Management Association and the American Planning Association and their annual conferences,
and the League of Oregon Cities 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.
L B. The CITY shall provide$300 per month vehicle allowance to EMPLOYEE who
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n shall provide his own vehicle,insurance,operation,and maintenance.EMPLOYEE shall provide
J for oil and gasoline within the Portland metro area.CITY shall reimburse for gasoline expenses
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J on City business outside the Portland Metro area.
C. The CITY recognizes that certain expenses of a job-affiliated nature are incurred
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGES
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 moneys per
receipts or personal affidavits.Any civic service club memberships taken out at CITY expense
shall be upon the approval of the Mayor.
SECTION 7-ANNUAL GOAL-SETTING AND PERFORMANCE EVALUATION:
The Mayor and individual members of the Council shall be encouraged to periodically
identify any concerns to the EMPLOYEE by either informal discussions with the EMPLOYEE
or by more formal means 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 assess 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 I of this Agreement. These annual
evaluations shall be in closed Executive Sessions and shall be conducted during the month of
April,with the exception of 2005 review. The performance review for 2005,based on Council's
suggestions will be a"360 Degree"review. Prior to January,2005,Council and EMPLOYEE
will discuss and agree to a format and process to be carried out after January I,2005.
In the event the CITY determines that the performance of the EMPLOYEE is
unsatisfactory in any respect or needs significant 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 4 of this Agreement,the EMPLOYEE'S
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i salary shall be reviewed at least annually after the performance evaluation.
SECTION S-GENERAL PROVISIONS:
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 9
A. Professional Liabilitv: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,as to any actions of EMPLOYEE within the scope of his
employment.The CITY agrees to pay premiums on 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 of 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
the Agreement.EMPLOYEE reserves the right to discuss the terms or termination of this
Agreement with the Council as a whole or 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 management City employee,including provisions governing accrual and
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1 payment therefor on tennination of employment.All provisions of the City Charter and other
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i City programs relating to employee benefits and working conditions as they now exist,or as
amended,shall also apply to the EMPLOYEE as to other unclassified employees,and are in
EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
PAGE 10
addition to any benefits to the EMPLOYEE specifically identified in this Agreement.
D. The EMPLOYEE is required to maintain residence in the City in accordance with
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 of the
heirs at law and executors of EMPLOYEE.
F. Severability:If any provision,or 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,on the date first written above.
Gaik Dirksen, ayor — I'ffl'am A.Monahan,City Employee
City of Tigard
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EMPLOYMENT AGREEMENT-WILLIAM MONAHAN
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