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HomeMy WebLinkAbout16-97 Resolution No. 16-97 RESOLUTION APPOINTING RICHARD G. KOZAL AS CITY MANAGER OF THE CITY OF ELGIN AND AUTHORIZING EXECUTION OF AN EMPLOYMENT CONTRACT WITH RICHARD G. KOZAL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Richard G. Kozal is hereby appointed City Manager of the City of Elgin effective August 1, 2016, and that David J.Kaptain,Mayor,and Kimberly A.Dewis,City Clerk,be and are hereby authorized and directed to execute an Employment Contract on behalf of the City of Elgin with Richard G. Kozal for his services as City Manager of the City of Elgin,a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: June 22, 2016 Adopted: June 22, 2016 Vote: Yeas: 7 Nays: 2 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk EMPLOYMENT CONTRACT THIS AGREEMENT,made and entered into this 22nd day of June,2016,by and between the CITY OF ELGIN, ILLINOIS, a municipal corporation, hereinafter referred to as the '`City", and RICHARD G. KOZAL, hereinafter referred to as either"Mr. Kozal" or"Employee". WITNESSETH: WHEREAS,the City desires to employ the services of Mr. Kozal as City Manager of the City of Elgin, Illinois; and WHEREAS, it is the desire of the City Council of the City of Elgin,hereinafter referred to as the"City Council",to provide certain benefits,to establish certain conditions of employment,and to set working conditions of said Employee; and WHEREAS, Employee desires to accept employment as City Manager of Elgin pursuant to the terms and conditions as set forth in this contract. NOW THEREFORE, in consideration of the mutual covenants herein contained,the parties agree as follows: Section 1: Employment and Duties. The City hereby agrees to employ Mr. Kozal as the City of Elgin's City Manager to perform the functions and duties of the office of the City Manager specified in the ordinances of the City of Elgin and the statutes of the State of Illinois and to perform other legally permissible and proper duties and functions as the City Council shall from time to time assign. Mr. Kozal agrees to act as the City Manager for the City of Elgin and to carry out to the best of his abilities all of the duties imposed upon that office in the ordinances of the City of Elgin and the statutes of the State of Illinois and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. Mr. Kozal shall commence employment as the City Manager for the City of Elgin on August 1, 2016. Section 2: Term and Termination. This contract is for an indefinite term and notwithstanding anything to the contrary in this contract this contract and Employee's employment with the City may be terminated at any time by the City acting through its corporate authorities,with or without cause. This contract also may be terminated by Mr. Kozal upon written notice to the Mayor and members of the City Council of the City at least thirty(30)days before,but not more than sixty(60)days before,the effective date of said notice of termination,unless otherwise agreed by the City of Elgin. Section 3: Severance Pay. In the event Employee is terminated by the City on or before August 1,2019, during such time that Employee is willing and able to perform his duties under this contract, then in that event the City agrees to pay Employee as severance pay a lump sum amount equal to 12 months of Employee's annual base salary and 12 months of premiums for comprehensive major medical insurance. In the event the Employee is terminated by the City after August 1,2019, during such time that Employee is willing and able to perform his duties under this contract.then in that event the City agrees to pay Employee as severance pay a lump sum amount equal to six (6) months of Employee's annual base salary and six(6)months of premiums for comprehensive major medical insurance. Employee shall also be compensated for all accrued paid leave benefits according to City of Elgin policy provisions applicable to Class "A" management City employees. In the event Employee is terminated for just cause,then, in that event,the City shall have no obligation to pay the severance sum designated in the above paragraph. In the event the Employee voluntarily resigns from the Office of City Manager of the City of Elgin or otherwise terminates this contract the City shall have no obligation to pay the severance sum designated in the above paragraph. Section 4: Salary. The City agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $198,751.28, payable in installments at the same time as other management employees of the City are paid. Mr. Kozal shall receive cost of living increases to such annual base salary in the same percentage amount and at the same time cost of living increases are provided to other Class "A" management employees of the City. Section 5: Performance Evaluation. The City Council may review and evaluate the performance of the Employee at such times and in accordance with criteria as determined by the City Council. Section 6: Hours of Work. It is recognized that Employee must devote a great deal of time outside the normal office hours to business of the City,and to that end Employee will be allowed to take compensatory time off as he shall deem appropriate during said normal office hours. Section 7: Outside Activities. Employee shall not engage or participate in non-City connected business, including but not limited to such matters as teaching or consulting,without the prior approval of the City Council. In the event of such an approval by the City Council,it is agreed and understood that in no event shall Employee spend more than 10 hours per week in any such teaching, consulting or other non-City connected business. Section 8: Vehicle Allowance. The City of Elgin shall provide an automobile allowance to Employee in the amount of Six Hundred Dollars ($600.00) per month during the term of this Agreement. The automobile allowance is intended to provide for Employee's cost to own and operate a vehicle and as such, Employee will not be eligible for the reimbursement for gasoline, maintenance or per mile rate allowances in effect from time-to-time under Internal Revenue Service regulations. Employee shall carry liability, property damage and comprehensive insurance for the vehicle for which the allowance is provided. 2 Section 9: Paid Leave. Mr. Kozal shall accrue vacation leave at a rate resulting in twenty- five (25) days per year and shall receive the same paid holidays and shall accrue sick leave and personal days at the same accrual rate as other Class ``A" management employees of the City. Section 10: Disability, Health, and Life Insurance. A. The City agrees to pay the required premiums on Mr. Kozal's existing life insurance policy which currently costs about $890.00 annually. B. The City agrees to provide comprehensive major medical insurance and dental insurance for Employee and his dependents and to pay the premiums thereon equal to that which is provided all other Class "A"management employees of the City or,in the event no such plan exists, to provide same for Employee. C. The City agrees to pay as often as once per year the cost of a physical examination for Mr. Kozal. Section 11: Retirement. A. Mr. Kozal shall continue to participate in the Illinois Municipal Retirement Fund in accordance with applicable law. Mr. Kozal shall pay the employee's contributions from his salary as required by applicable law and the City shall contribute on Mr. Kozal's behalf the employer's required payments in accordance with applicable law. B. The City agrees to execute all necessary agreements provided by ICMA Retirement Corporation (ICMA-RC) for the City's participation in said ICMA-RC retirement plan and, in addition to the base salary paid by the City to Employee, the City agrees to pay an amount equal to $15,500.00 annually into the ICMA-RC on Employee's behalf,in equal proportionate amounts each pay period, and to transfer ownership to succeeding employers upon Employee"s resignation or termination. C. It is agreed that Mr. Kozal may continue to receive longevity pay for non-bargaining unit employees as provided for from time-to-time in the City's ordinance establishing a pay and benefit plan for certain appointed officers and employees of the City. In the event Mr. Kozal elects to continue to receive such longevity pay the City's obligation to pay$15,500.00 annually provided for in the preceding Subparagraph B shall be reduced by the amount of the City's annual payment of longevity pay to Mr. Kozal. Section 12: Dues and Subscriptions. The City agrees to budget for and to pay for professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state, and local associations and organizations necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the City. Section 13: Professional Development. The City hereby agrees to pay for travel and subsistence expenses of Employee in such amounts as determined by the City Council for 3 professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official functions for the City, including but not limited to the ICMA Annual Conference, the state league of municipalities, and such other national, regional, state, and local governmental groups and committees thereof which Employee serves as a member. The City's obligation to pay for such travel and subsistence expenses as provided in this paragraph is contingent upon the City Council determining sufficient funds are available for such expenses and the City Council approving a budget appropriation for such travel and subsistence expenses. The City also agrees to pay for travel and subsistence expenses of Employee in such amounts as determined by the City Council for short courses,institutes,and seminars that are necessary for his professional development and for the good of the City. The City's obligation to pay for such travel and subsistence expenses as provided in this paragraph is contingent upon the City Council determining sufficient funds are available for such expenses and the City Council approving a budget appropriation for such travel and subsistence expenses. Section 14: General Expenses. The City recognizes that certain expenses of a nonpersonal and generally job-affiliated nature are incurred by Employee, and hereby agrees to reimburse or to pay said general expenses, up to an amount as approved by the City Council in the annual budget, and the finance director is hereby authorized to disburse such monies upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. Section 15: Indemnification. In addition to that required under state and local law,the City shall, to the extent permitted by law, defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager. Any such claim, demand or legal action shall be defended by legal counsel of the City's choosing. The Employee shall not compromise and/or settle any such claim,demand or legal action without the written consent and the approval of the City. The City will, to the extent permitted by law, pay the amount of any settlement or judgment of any such claim, demand or legal action. Section 16: Bonding. The City shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 17: No Reduction of Benefits. The City shall not at any time during the term of this agreement reduce the salary, compensation or other financial benefits of Employee, except to the degree of such a reduction across-the-board for all Class "'A" management employees of the City. Section 18: Notices. Notices pursuant to this agreement shall be g:veu by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows: (1) City of Elgin, Illinois: City of Elgin, 150 Dexter Court, Elgin, Illinois 60120, Attention: Mayor. (2) Richard G. Kozal: Richard G. Kozal at current or future home address of Employee. 4 Alternatively, notices required pursuant to this agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service. Section 19: General Provisions. A. The text herein shall constitute the entire agreement between the parties. B. This contract shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. C. This contract shall become effective upon its execution. D. If any provision, or any portion thereof, contained in this contract is held unconstitutional, invalid or unenforceable,the remainder of this contract,or portion thereof,shall be deemed severable, shall not be affected, and shall remain in full force and effect. IN WITNESS WHEREOF, the City of Elgin, Illinois has caused this contract to be signed and executed in its behalf by its Mayor,and duly attested by its City Clerk,and Richard G.Kozal has signed and executed this contract, both in duplicate, the day and year first above written. CITY OF ELGIN B : 4/. , e ____ ." /ire' do, ..4 0, ,, Mayor Davis . K. ain diehard G. Kozal ATTEST: ficAA(AW (,el'i-'A' City Clerk APPROVED AS TO FORM: 4 Gr 04, William A. Cogley, f 4 .oration Counsel F:ALegal Dept\AgreementAkozal City Manager Employment K-20I6-clean 6-10-I6.docx 5