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03-38 Resolution No. 03-38 RESOLUTION AUTHORIZING EXECUTION OF AN EMPLOYMENT CONTRACT WITH DAVID M. DORGAN BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an Employment Contract on behalf of the City of Elgin with David M. Dorgan 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/ Ed Schock Ed Schock, Mayor Presented: February 12 , 2003 Adopted: February 12 , 2003 Vote : Yeas : 4 Nays : 2 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk Draft 1/31/03 Employment Contract THIS AGREEMENT, made and entered into this31 S day of January, 2003, by and between the City of Elgin, Illinois, a municipal corporation, hereinafter referred to as the "City", as party of the first part, and David M. Dorgan, hereinafter referred to either as "David M. Dorgan", "Mr. Dorgan" or"Employee", as party of the second part, both of whom understand as follows: WITNESSETH: WHEREAS, the City desires to employ the services of said David M. Dorgan 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 "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; and WHEREAS, The parties acknowledge that Employee is a member of the International City/County Management Association (ICMA)and that Employee is subject to the ICMA Code of Ethics; 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 David M. Dorgan 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 Council shall from time to time assign. David M. Dorgan 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 Council shall from time to time assign. David M. Dorgan shall commence employment as the City Manager for the City of Elgin on March 10, 2003. 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 1 terminated by David M. Dorgan 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 September 10, 2005, during such time that Employee is willing and able to perform his duties under this agreement, 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 September 10, 2005, during such time that Employee is willing and able to perform his duties under this agreement, then in that event the City agrees to pay Employee as severance pay a lump sum amount equal to six months of Employee's annual base salary and six 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" 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$137,000, payable in installments at the same time as other management employees of the City are paid. Section 5: Performance Evaluation The Council may review and evaluate the performance of the Employee at such times and in accordance with criteria as determined by the 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. 2 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 Council. In the event of such an approval by the 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: Moving and Relocation Expenses A. Mr. Dorgan agrees to and shall within 12-months of the comencement of his employment with the City establish and maintain his bonafide residence and principal place of abode within the corporate city limits of the City of Elgin. Mr. Dorgan shall thereafter continue to comply with the residency requirements for City officers provided for in Chapter 2.20 of the Elgin Municipal Code, 1976, as amended. The City of Elgin shall pay all expenses associated with moving David M. Dorgan's furniture, household goods, and personal possessions to Elgin; Mr. Dorgan shall obtain three estimates of moving expenses from reputable experienced movers and employ the lowest qualified bidder for such purposes. B. In the event Mr. Dorgan obtains and expends funds for temporary housing in the City of Elgin following his commencement employment with the City and prior to moving into the City of Elgin the City agrees to reimburse Mr. Dorgan for the costs of such temporary housing in the amount not to exceed $1,000 per month for a period not to exceed six (6) months. Section 9: Vehicle The City of Elgin shall provide a mid-sized automobile as determined and selected by the City for use by David M. Dorgan and shall pay all expenses related to its use by Mr. Dorgan. Section 10: Paid Leave Upon commencement of his employment, the City shall credit David M. Dorgan with 20 days of vacation leave and 20 days of sick leave. Thereafter, Mr. Dorgan shall accrue vacation leave at a rate resulting in twenty-days per year and sick leave at the same accrual rate as other Class "A" employees of the City. Section 11: Disability, Health, and Life Insurance A. The City agrees to purchase and to pay the required premiums on David M. Dorgan's existing long term disability policy which currently costs about$700.00 semi 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" employees of the City or, in the event no such plan exists, to provide same for Employee. 3 C. Employee agrees to submit as often as once per year, at the request of the City, to a physical examination by a qualified physician selected by the City, the cost of which shall be paid by the City. Section 12: Retirement A. In addition to the City's required contribution to the Illinois Municipal Retirement Fund, the City shall pay Employee's required contribution to the Illinois Municipal Retirement Fund; such payment shall be limited to four and one-half percent (4.5 %) of David M. Dorgan earnings subject to such contribution. 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 the City to Employee, the City agrees to pay an amount equal to $7,500.00 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. Section 13: 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 14: Professional Development The City hereby agrees to pay for travel and subsistence expenses of Employee in such amounts as determined by the Council for 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 no 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 Council determining sufficient funds are available for such expenses and the 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 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 Council 4 determining sufficient funds are available for such expenses and the Council approving a budget appropriation for such travel and subsistence expenses. Section 15: 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 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 16: 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 17: Bonding The City shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance. Section 18: 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" employees of the City. Section 19: Notices Notices pursuant to this agreement shall be given 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) David M. Dorgan: David M. Dorgan at current or future home address of Employee. 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 5 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 20: General Provisions A. The text herein shall constitute the entire agreement between the parties. B. This agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee. C. This agreement shall become effective upon its execution. D. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, invalid or unenforceable, the remainder of this agreement, 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 agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and David M. Dorgan has signed and executed this agreement, both in duplicate, the day and year first above written. CITY OF ELGIN By yor chock ATTEST: ';�O" &Za� City Clerk of the City of Elgin, Illinois (Seal) APP OVED AS TO FORM: VVvv � - L4g Corporation Counsel David M.Dorgan FALegal Dept\Agreement\Dorgan City Manager Employment K-Final.doc 6