05-21 Resolution No. 05-21
RESOLUTION
AUTHORIZING EXECUTION OF AN EMPLOYMENT CONTRACT
WITH OLUFEMI FOLARIN
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 Olufemi Folarin 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: January 26, 2005
Passed: January 26, 2005
Omnibus Vote: Yeas: 6 Nays: 0
Recorded: January 27, 2005
Published:
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
EMPLOYMENT CONTRACT
THIS AGREEMENT, made and entered into this 26th day of
January, 2005, by and between the CITY OF ELGIN, ILLINOIS, a
municipal corporation, hereinafter referred to as the "City" , and
OLUFEMI FOLARIN, hereinafter referred to as either "Mr. Folarin" or
"Employee" .
WITNESSETH:
WHEREAS, the City desires to employ the services of
Mr. Folarin 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. Folarin 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. Folarin 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. Folarin shall commence employment as the City Manager for
the City of Elgin on March 2 , 2005 .
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. Folarin 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 2 , 2007, 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 September 2, 2007, 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 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" 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
$147, 112 , payable in installments at the same time as other
management employees of the City are paid. Mr. Folarin 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 .
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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. The City of Elgin shall provide a mid-
sized automobile as determined and selected by the City for use by
Mr. Folarin and shall pay all expenses related to its use by
Mr. Folarin.
Section 9 : Paid Leave. Mr. Folarin shall accrue vacation leave
at a rate resulting in twenty-five (25) days per year 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 purchase and to pay the required
premiums on Mr. Folarin' s existing long term disability policy
which currently costs about $800 . 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" 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. Folarin.
Section 11 : 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 Mr. Folarin' s 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.
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C. It is agreed that Mr. Folarin may continue to participate
in the City' s 401 (a) Plan for Class "A" management employees, as
such plan may be amended from time to time by the City. In the
event Mr. Folarin elects to continue to participate in such 401 (a)
Plan the City' s obligation to pay $7, 500 . 00 annually provided for
in the preceding Subparagraph B shall be reduced by the amount of
the City' s annual employer contribution pursuant to such 401 (a)
Plan.
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 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 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 .
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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 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) Olufemi Folarin: Olufemi Folarin 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
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.
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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 .
E. The City agrees that during each year this contract
remains in effect to provide to Mr. Folarin at no cost to
Mr. Folarin a season pass allowing Mr. Folarin to play at the
City' s golf courses .
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 Olufemi Folarin has signed
and executed this contract, both in duplicate, the day and year
first above written.
CITY OF ELGIN
By
Mayor M Schock
ATTEST:
A-C�-
City Clerk of the
City of Elgin, Illinois
(Seal)
APPROVED AS TO FORM:
V\ I t�� L .(4 i
Corporation Counsel
J
O lu7Tlar n
F:\Legal Dept\Agreement\Folarin city Manager Employment K-2005.doc
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