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EMPLOYMENT AGREEMENT • <br /> This Employment Agreement ("Agreement"), dated , 1997 <br /> is made between the CITY OF MOUNDS VIEW, a municipal corporation under the laws of <br /> Minnesota ("City") and JOHN HAMMERSCHNIIDT ("Hammerschmidt") for the position of the <br /> City's Golf Course Superintendent. <br /> RECITALS <br /> 1. The City is the owner of a golf course ("The Bridges") located at <br /> in the City of Mounds View. <br /> 2. Hammerschmidt is experienced in the management of golf courses and is willing to enter <br /> into this Agreement. <br /> NOW, THEREFORE, in consideration of the mutual covenants and promises contained <br /> in this Agreement, the City and Hammerschmidt agree as follows: <br /> ARTICLE I: TERMS AND CONDITIONS OF AGREEMENT <br /> The initial term of this Agreement will be three years, commencing on January 1, 1997 • <br /> and continuing through December 31, 1999. This Agreement Shall automatically renew for two <br /> additional three-year terms under the same terms and conditions unless either party gives written <br /> notice to the other party on or before June 30 in the third year of each three-year term of the <br /> Agreement. <br /> ARTICLE IL COMPENSATION <br /> The City will pay Hammerschmidt a base salary of 540,000 per year in 1997 plus its <br /> standard contributions toward the Minnesota Public Employees Retirement Fund, Social Security, <br /> Medicare, and health insurance_ In future years. Hammerschmidt's base salary will increase by <br /> the same percentage increase granted to City Pdministrative personnel In addition, <br /> Hammerschmidt will be eligible for incentive pay (as defined herein) based on performance of <br /> The Bridges and the total personnel costs at The Bridges with total compensation not to exceed <br /> 95% of the City Clerk-Administrator's maximum salary. Incentive pay shall not exceed 50% of <br /> Hammerschmidt's total compensation. Hammerschmidt's total compensation shall not exceed any <br /> limits established by Minnesota Statutes and shall be established in such a manner so as to <br /> maintain the City's compliance with the State of Minnesota's pay equity statutes. The <br /> compensation and benefits set out in this Article represent the total compensation to be paid to <br /> Hammerschmidt. <br /> Incentive pay will be calculated annually and established by the City Council in an amount <br /> up to 44% of the gross revenues, less the total personnel costs, at The Bridges. Gross revenues • <br /> shall include all revenues derived from activities conducted at The Bridges, less general sales <br /> taxes and sales taxes imposed on the sale of alcoholic beverages. Prepaid fees will not be <br /> considered revenues until such time as The Bridges has provided the goods or services necessary <br /> GARZSK128030 <br /> MU1 <br /> :25-33 <br />