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POLICY H4 6/22/05 ITEM: Request for approval of revisions to the Employment Agreement for the City Administrator SUBMITTED BY: Sue Gehrz, Mayor REVIEWED BY: Roger Knutson, City Attorney EXPLANATION: Summary: The Mayor conducts an annual performance review of the City Administrator and negotiates changes to the Employment Contract when necessary. Few changes have been made to the original Employment Contract entered into by Heather Worthington and the City Council in April, 2000. Following a very positive performance review which included evaluations by all City Council members and interviews with the Finance Director, Deputy Clerk, Planning and Zoning Coordinator, and Director of Parks and Public Works, the Mayor is recommending the following changes to the original Employment Contract: • 1. Change the language and format to be more appropriate to a legal contract. 2. Update the salary data in Section 4. 3. Remove references to specific organizations in the Professional Development section in Section 11. 4. Remove the specific mileage reimbursement rate from Section 13 and replace it with , "shall be based upon federal mileage reimbursement rate" which usually changes annually. In Section 16, increase the severance pay from three months to four months, add a provision that the city provide and pay for four months of insurance benefits if the City Administrator is eligible for severance pay. 6. Remove the "just cause" referenced in Section 8 g in the original Employment Agreement as one of the circumstances under which the City will have no obligation to pay severance pay. 7. Remove the non-binding arbitration provision of Section 8 g in the original Employment Agreement pertaining to the "just cause" basis for termination. These changes are agreeable to the City Administrator. 3~