12/08/1997 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES DECEMBER 8, 1997 Council Member Lyden requested that Mr. Hawkins review in detail the differences between the existing and proposed amended City Administrator's employment agreements. Mr. Hawkins stated that he has no personal knowledge of the contents of the current agreement and, therefore, cannot comment on the differences. Council Member Lyden suggested that Mr. Schumacher had removed information from the last City audit relating to his (Schumacher's) sick time, and, therefore, further investigation of the terms of the amended employment agreement is required. Council Member Bergeson commented that the portion of the amended employment agreement related to sick leave provides for 50% of the accrued sick leave to be paid at the time of severance, and states a current accrued balance. He further commented that the Council members who participated in the review of the proposed employment agreement did so in good faith. Council Member Bergeson then indicated that the matter before Council at this time is consideration of the amended employment agreement, and expressed his favor with the contract based upon the following: The amended employment agreement provides for a smooth transition, should the present City Administrator's employment be terminated; provision of a smooth and orderly transition being the obligation of the City Council. Additionally, the City Council has an obligation to take all prudent steps to prevent litigation which might arise out of such employment termination; the proposed amended employment agreement seeks to accomplish this end. Council Member Bergeson expressed exception to the statement regarding a possible cost to the City of $200,000 to terminate the City Administrator's employment. He then reviewed two specific items within the contract which he indicated should be considered, as follows: Section 15, Benefits, states in part that "...the City would continue to provide and pay for benefits set forth in Paragraphs 7 and 8." These benefits include health, life, and disability insurance. Council Member Bergeson stated that the suggested term for provision of these benefits be changed to "...one year, or until comparable benefits are provided by a subsequent employer." The second item Council Member Bergeson addressed was a limitation on additional compensation beyond that provided within the employment agreement. He stated that he was informed by Mr. Hawkins that a specific provision to that effect is not required, as execution of the amended employment agreement as written binds the employee to acceptance of specific compensation. Mayor Landers expressed agreement with statements made by Council Member Bergeson, adding that the employment agreement coincides with agreements for similar employees of a number of other communities like Lino Lakes specifically with reference to automobile allowance. Council Member Neal pointed out that Mr. Schumacher has not been provided a vehicle nor compensated for use of his personal vehicle over his period of employment by the City of Lino Lakes, and asked if retroactive compensation would be necessary. 14