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6. City Administrator Employment Agreement � . EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT ("Agreement") is made effective the 28`h day of August, 2012 (the "Effective Date") by and between the CITY OF SCANDIA, a Minnesota municipal corporation("Employer"), and KRISTINA HANDT ("Employee"). RECITALS A. Employer is a Minnesota political subdivision with administrative offices located at 14727 -209th Street, Scandia,MN 55073. B. Employer wishes to employ the Employee as its City Administrator in accordance with the terms of this Agreement. C. Employee desires to establish an employment relationship with Employer in accordance with the terms and conditions of this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, including the recitals set forth above and the hiring of Employee, Employer and Employee hereby agree as follows: 1. Position and Duties. Employer agrees to employ Employee as its City Administrator. Employee agrees to serve as City Administrator in accordance with the job description adopted by the Employer and attached hereto as Exhibit A as modified from time to time in the sole discretion of the Employer. Employee agrees to devote Employee's full time efforts to such employment, to perform such other duties as determined from time to time by Employer and to assist the Employer in establishing goals and objections for the operation of Employer. Employee acknowledges that her duties are not limited to normal business hours and require her attendance at numerous evening and other meetings outside of such hours. 2. Duration and Compensation. a. Term. This Agreement shall be in effect for the period beginning on September 17, 2012 and shall continue until terminated by Employer or Employee as provided in Paragraph 7 hereof(the "Term"). b. Salarv• During the Term, Employer shall pay Employee an annual salary of $70,000.00 (prorated as necessary) starting on the Effecrive Date hereof and in accordance with Employer's normal payroll practices. c. Adiustments. Upon completion of the Probationary Period and thereafter during the Term, Employee's salary may be adjusted from time to time by Employer in its sole discretion. 1 d. Probationarv Period. The six (6) month period from and after the Effective Date of this Agreement shall be deemed the Employee's"Probationary Period"hereunder. e. Limitations. During the term of this Agreement, Employee shall not be entitled to any raises, cost of living adjustments or increases in benefits except as provided in this Agreement. 3. Additional. In addition to the salary identified above, Employer may provide Employee with some or all of the following: a. Pension Plan. Employer shall contribute to the Public Employees Retirement Association ("PERA") pension plan to the extent required by Minnesota Law for Employee or to an alternate pension plan, if selected by Employee and authorized by Minnesota Law. In no event will the Employer be required to contribute to more than one such pension plan or to contribute more than the minimum required by Minnesota law, including without limitation PERA. b. Personnel Policies. To the extent consistent with the spirit and intent of this Agreement and except as otherwise provided herein, such benefits as are made available to Employer's full time employees by Employer's Personne] Policy Provisions (the "Personnel Policies") including, but not limited to policies regarding paid time off (PTO) (including accrual and payment on termination), vacations, and holidays as adopted or modified from � time to time by Employer and Employee hereby agrees to be bound by and adhere to such Personnel Policies as adopted or modified from time to time by Employer. Solely for purposes of calculating any benefits available through the Personnel Policies such as PTO: (1) Employee will be credited with three (3) days of PTO upon the Effective Date of this Agreement and (2) Employee will be deemed to be commencing her second year of employment with the Employee as of the Effective Date. c. Dues and Subscriptions. Employer shall budget for and pay the professional dues and subscriptions for Employee's continued participation in national, regional, state, and local associations which, in the opinion of Employer, are necessary and reasonably desirable for Employee's continued participation, growth,and advancement in the position of employment described herein. Initially, during the Term, Employer agrees to pay Employee's dues for membership in (1) the International City Managers Association ("ICMA") and (2) the Minnesota City Managers Association ("MCMA"). Except for Employee membership dues for the ICMA and MCMA, Employee will submit a written request to Employer before the Employer will be obligated to pay or reimburse the cost of such dues and subscriptions and Employer will not be obligated for the cost of such dues and subscriptions unless Employer has consented to such cost in advance. d. Professional Development. Employer will budget for and upon receipt of a written request from Employee will pay the reasonable travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions which, in the opinion of Employer, are necessary to continue the professional development of Employee and necessary to attend officia] and other committee meetings of which Employee may serve as a mernber. Employee shall use good judgment in such outside activities so that primary duties 2 to the Employer are not neglected. Employee will submit a written request to Employer before the Employer will be obligated to pay or reimburse the cost of such dues and subscriptions and Employer will not be obligated for the cost of such dues and subscriptions unless Employer has consented to such cost in advance. e. Civic Club Membership. Employer recognizes the desirability of representation in and before local civic and other organizations. With Employer's prior consent, Employee will be authorized to become a member of such clubs or organizations and Employer will pay the reasonable cost of the dues to belong to such club or organization. Employer will not be responsible for dues or other costs associated with any organization as to which Employee has not received such prior consent of Employer. 4. Automobile. Employee shall be paid mileage expense at the IRS approved rate for use of Employee's personal automobile for Employer business, excluding travel between the Employee's residence and the Employer's place of business. Employer will pay Employee's mileage expenses when provided with appropriate documentation. 5. General Expenses. Employer shall reimburse Employee for miscellaneous reasonable and job-related out-of-pocket expenses which it is anticipated Employee will incur from time to time. Employee shall submit a written itemization of such expenses to Employer on a monthly basis and Employer will pay such expenses in accordance with its normal practices. 6. Termination Benefits. a. Probationary Period. Employer may terminate Employee at any time during the Probationary Period, with or without "just cause" as defined herein and without the payment of any Termination Benefits as defined herein except and to the extent as provided in the Personnel Policies. b. Without Just Cause. In the event that Employee is terminated by the Employer subsequent to the Probationary Period for other than"just cause" as defined herein and during such time as Employee is willing and able to perform the duties of City Adrninistrator, Employer agrees to pay Employee at the time of receipt of Employee's last paycheck a lump sum cash payment equal to three (3) months aggregate salary and to continue to provide and pay for the benefits described in Paragraphs 3(a) and 3(b) above, for a period of three(3)months following termination(collectively the "Termination Benefits"). c. With Just Cause. In the event that Employee is terminated by the Employer at any time for "just cause" as defined herein, Employee will not be entitled to any Termination Benefits except as provided in the Personnel Policies. d. Definition. For purposes of this Agreement, "just cause" for termination of Employee's employment relationship shall be defined as any of the following: (1) conduct sufficient to disqualify Employee from the receipt of benefits under the Minnesota unemployment or re-employment compensation Statutes; 3 (2) theft, dishonesty, excessive absenteeism, conviction of an illegal act, insubordination, failure to follow Employer's Personnel Policies or any material breach of this Agreement; (3) performance of any job-related acts that endanger the property or personal safety of Employee or any other person; (4) Employee's inability to perform her duties hereunder for a continuous period of six (6)weeks or for an aggegate period of three(3)months during any consecutive twelve (12) month period without an approved leave of absence from Employer; (5) violation of any lawful official order of, or failure to obey any lawful direction made and given by, the governing body of Employer, where such violation or failure to obey amounts to an act of insubordination or a serious breach of proper discipline, or has resulted or reasonably might be expected to result in a loss or injury to Employer or to the public; (6) insubordination or disgraceful conduct, whether occurring during the performance of Employee's official duties or off-duty; or (7) use of, threatened use of, or attempted use of political influence in securing leaves of absence, transfers, or changes of job,pay or nature of work. 7. Termination. a. By Employer. This Agreement may be terminated by Employer by written notice to Employee at any time for any reason including for "just cause" as defined in Paragraph 6 above. Such termination will be ef�ective on the date Employee receives written notice of termination. b. B�Emplovee. Employee may terminate this Agreement at any time by providing thirty(30)days advance written notice to Employer. c. No Limitation. Employer acknowledges that her employment with Employer is "at will". Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Employer to terminate the services of Employee at any time, for any reason or for no reason subject only to the provisions of this Agreement. Furthermore, nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time from his position with Employer, subject only to the provisions of this Agreement. 8. Reduction of Salarv. The Employer shall not reduce the salary and/or benefits of the Employee unless the salary and/or benefits of all salaried, non-represented employees are reduced in the same manner and by the same percentage. If the Employee's salary and/or benefits are reduced 4 in a different manner and/or by a greater percentage than those of other salaried, non-represented employees, the Employee's option shall be: (a) deeming her employment terminated without cause and receiving severance compensation as defined in Section 6(b), or (b) accepting such reduced salary and/or benefits in which event, this Agreement will be deemed amended to reflect such reductions. 9. Performance Reviews. a. FrequencX Employer shall make every effort to review and evaluate the performance of Employee at least once annually. The review and evaluation shall be done in accordance with specific criteria developed jointly by Employer and Employee, and as may be therea8er modified by Employer. b. Goals. The Employer and Employee shall jointly define in writing the goals and performance objectives for the proper operation of Employer and the attainment of Employer's policy objectives, and shall further establish a relative priority among those various goals and objectives. The goals and objectives should generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided. c. No Breach. Failure by either party to complete the matters described in Paragraphs 8(a) and 8(b) hereof shall not constitute a breach of this Agreement for which arbitration may be demanded or recovery may be had. 10. Indemnification. Employer shall defend and indemnify Employee to the extent required by and subject to the limitations set forth in Minnesota Statutes 466.07 and 465.76 as amended from time to time. 11. Non-Civil Service Status. It is expressly understood and agreed that Employee is not being appointed or employed as City Administrator under any state or local civil service laws, procedures, or regulations, and neither state nor local civil service laws, procedures or regulations apply to Employee's employment and tenure as City Administrator. Employee expressly waives any coverage under any such laws or procedures or regulations. 12. Arbitration. Any dispute arising under or in any way relating to this Agreement shall be resolved by final and binding arbitration before an arbitrator chosen by the mutual ageement of the parties to this arbitration or failing such agreement pursuant to the rules of the American Arbitration Association. Without in any way limiting the authority granted to arbitrators by the laws of the State of Minnesota,the decision of the arbitrator on any matter relating to or arising out of this Agreement shall be final and binding on the parties to such proceeding subject only to the grounds for challenge specifically enumerated in Minn. Stat. § 572.19. The parties to such arbitration proceeding shall each pay one-half ('/2) of the costs of the arbitrator and any fee charged by the American Arbitration Association or like organization. Further, each party to such proceeding shall bear its own respective costs and attorney's fees relating to such arbitration proceeding. 13. Legal Counsel Disclosure. At the request of the Employer and with the consent of the Employee, the firm of Miller & Stevens, P.A. (the "Law Firm") as the City Attorney for the 5 Employer has drafted this Agreement and has agreed to render legal services in connection with this Agreement. Employee recognizes that Employee's interest under this Agreement may now or hereafter be adverse to or in conflict with the interest of Employer. The Law Firm has disclosed to Employee that it is representing only Employer with respect to this transaction and Employee has consented to such representation. Employee agrees that at no time will such representation be construed, claimed or deemed to be a conflict of interest or violation of professional obligations to Employee by the Law Firm. Employee acknowledges that Employee has been advised of Employee's individual right to seek separate legal counsel because of potential conflicts of interest which exists or may arise in the future with respect the transactions contemplated hereunder. IN WITNESS WHEREOF, Employer has caused this Agreement to be signed and executed on its behalf by its Mayor, and Employee has signed this Agreement, in duplicate, the day and year first above written. EMPLOYER: EMPLOYEE: CITY OF SCANDIA By: '�,���� `�`� Randall Simonson,Mayor Kristina Handt ATTEST: Brenda Eklund,Deputy Clerk 6 EXHIBIT A Current Citv Administrator Job Description E�ibit A Administrator General Definition of Work Performs difficult professional and administrative work managing local government operations and activities; ensuring adopted ordinances, resolutions and policies are implemented and consistently applied; maintaining official records; and performing related work as required. Work is performed under general supervision of the local elected governing body. Supervision is exercised over all staff. Essential Functions of the Position i Administrator Duties • Directs agenda a minute preparation for governing board agendas and minutes and for appointed boards and commissions; staffs meeting s and directs staff to ensure implementation of adopted policies and direction. • Works with the governing body to coordinate the establishment and implementation of strategic and long-ranges plans. • Prepares and submits a proposed budget to the governing body for its approval; administers the budget and provides financial reports to the governing body. • Reviews and prepares written reports and recommendations for the governing body and various boards and commissions. • Meets with various citizen groups or individual citizens; responds to requests for information; handles complaints. • Provides recommendations to the governing body on the employment, discipline and removal of all employees. • Supervises employees; establishes and communicates performance expectations; coaches and develops staff; and regularly evaluates staff performance to ensure accountability. • Develops and administers human resource policies; a compensation plan; and employee benefits. • Develops and implements administrative rules,policies and procedures. • Coordinates and manages consultant service agreements for contracted functions and special projects. • Responds to questions from residents and developers regarding zoning and land use regulations. • Performs related tasks as required. Clerk Duties • Provides for recording and filing all official proceedings and noticing regular and special meetings and public hearings. • Coordinates and supervises bi-annual and special elections, including training of election judges. • Oversees the maintenance of financial books and recording of funds;receipting of payments; preparation of vendor claims; and the selection of official depositories. • Performs related tasks as required. 8 Knowledge, Skills and Abilities Comprehensive knowledge of the principles and practices of public administration; thorough knowledge of municipal finance practices; thorough knowledge of the laws, ordinances and regulations applicable to local government; ability to express thoughts effectively orally and in clear and concise reports, memoranda, directives and letters; ability to analyze complex problems and develop comprehensive plans from general instructions; ability to meet the public and to discuss problems and complaints; ability to establish and maintain effective working relationships with elected officials, staff, appointed members of boards and commissions, volunteers, and the public; ability to plan and direct the work of operating departments. Education and Experience Graduation from an accredited college or university with major coursework in public administration or related field or equivalent combination of education and experience, and considerable administrative experience in local government. Physical Requirements This is sedentary work requiring the exertion of up to 10 pounds of force occasionally, and a negligible amount of force frequently or constantly to move objects; work requires fingering, grasping, and repetitive motions; vocal communication is required for expressing or exchanging ideas by means of the spoken word, and conveying detailed or important instructions to others accurately, loudly, or quickly; hearing is required to perceive information at normal spoken word levels, and to receive detailed information through oral communications and/or to make fine distinctions in sound, visual acuity is required for preparing and analyzing written or computer data, determining the accuracy and thoroughness of work, and observing general surroundings and activities;the worker is not subject to adverse environmental conditions. Special Requirements Reasonable accommodations may be made to enable individuals with disabilities to perform the essential tasks. Possession of a driver's license valid in the State of Minnesota. 9