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Instructor mentioned above. An independent contract is not the only way to compensate this position; however, it <br />appears to be practical and to be in the City’s best interest. <br />The rationale for an independent contract are as follows: <br />1. An independent contract protects the City from claims for employee benefits, unemployment compensation and <br />workers’ compensation coverage. <br />2. The City Attorney and Labor Relations Associates have advised that creating an independent contract adequately <br />resolves the nepotism issue. <br />3. An independent contract puts the responsibility for tax reporting on the independent contractor. The City would <br />not be liable for any unreported revenues generated from lessons (i.e. tips). <br />4. Positions covered under independent contracts are not included in the City’s pay equity report. <br />Compensation <br />The staff recommendation presented at the July 9th Council meeting was that the Council allow the instructor to keep <br />100% of the fees generated from lessons less the cost of range balls and that the instructor not participate in the Junior <br />Golf program. Since the July 9th meeting staff has become aware of additional information that makes it necessary to <br />modify the July 9th recommendations: <br />1. The City Attorney has advised that the City must receive some form of compensation from an independent <br />contractor for use of the course. Further, compensation to the City should cover costs associated with use of the course <br />outside of the actual lesson being provided (i.e., use of the driving range, parking lot, restrooms, golf balls, etc.). <br />2. The Clubhouse Manager has indicated that the City does not have another golf instructor on staff who can cover <br />the Junior Golf lessons currently being provided by the Seasonal Golf Instructor. <br />Recommendation <br />Based on the new information staff is proposing the following compensation structure with the approval of the City <br />Attorney and Labor Relations Associates: <br />· For Private, Semi-Private and Group Lessons the independent contractor will pay the City 30% of all revenues <br />generated from fees for golf lessons and will keep the remaining 70%. <br />· For Junior Golf Lessons the independent contractor will receive $5.00 per student per lesson at the end of the eight- <br />week program. <br />Respectfully Submitted, <br />Givonna Reed <br />Assistant to the City Administrator <br />AGREEMENT FOR PROFESSIONAL SERVICES <br /> THIS AGREEMENT is made, effective as of this 23rd day of July, 2001, by and between the City of Mounds <br />View, located at 2401 Highway 10, Mounds View, Minnesota 55112 (hereinafter "City") and Jim Manthis, of <br />_______________________________, ___________________, Minnesota _______ (hereinafter "Professional"). <br /> WITNESSETH: <br /> WHEREAS, City desires to engage the services of Professional to administer private, semi-private, and group <br />lessons and lessons for the Junior Golf program as necessary, on an interim basis; and <br /> WHEREAS, Professional has expressed his willingness to provide such services; <br /> NOW, THEREFORE, the parties hereto do mutually agree as set forth below: <br />A. Professional Services. Professional shall perform private, semi-private, and group lessons and lessons for the <br />Junior Golf program as necessary within his expertise. It is understood between the parties that such services <br />specifically may include use of the practice range for private lessons and use of the practice range and greens for the