9.d Soltis Employment Agreement
Staff Report
Date of Meeting: June 18, 2019
To: City Council
From: Brenda Eklund, Deputy Clerk
Re: Discuss Re-engaging Neil Soltis for CIP and 2020 Budget Planning
Background:
Prior to his retirement as City Administrator on May 6th, Neil Soltis expressed his willingness to
assist with preparations of the Capital Improvement Plan and 2020 budget in the interim of
hiring a new administrator, anticipated by early August. Mr. Soltis also indicated that he could
assist with an orientation period once the new administrator begins their position.
Issue:
Should the City Council agree to employ Mr. Soltis for leading CIP and budget preparations and
to participate with an orientation while a new city administrator is hired?
Proposal Details:
Mr. Soltis has offered to prepare for and attend the July CIP and budget planning meetings, to
conclude with a budget overview at the August 7 Work Session at a rate of $60/hour. Mr. Soltis
estimated his time to be up to 8 hours a week. Mr. Soltis would also return for an orientation
period when the new administrator begins. Legal staff has prepared the attached employment
agreement outlining the proposal.
Fiscal Impact:
Mr. Soltis’s time to prepare for, attend the meetings and return for an orientation would be
paid from the general fund personnel wages for administration. It’s anticipated Mr. Soltis
would prepare for and attend one CIP meeting and two City Council meetings.
Options:
1) Approve re-engaging Mr. Soltis for CIP and budget planning with the City Council and
through an orientation with the new administrator.
2) Make changes to the terms for Mr. Soltis’s consulting services.
3) Do not approve the proposal.
Recommendation: Option 1.
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made effective as of the
18th day of June, 2019 (the “Effective Date”), by and between the CITY OF SCANDIA, a
municipal corporation and political subdivision under the laws of the State of Minnesota (the
“Employer”), and NEIL SOLTIS (the “Employee”).
RECITALS
A. Employer is a Minnesota municipal corporation and political subdivision with
administrative offices located at 14727 209th Street, Scandia, Minnesota 55073.
B. Employee retired from Employer on May 6, 2019 as the City Administrator.
C. Employer anticipates hiring a new City Administrator in August, 2019.
D. Until a new City Administrator is hired and for a period of up to one month after
they are hired, Employer needs assistance in preparing their Capital Improvement Plan and the
2020 budget.
E. Employer wishes to employ Employee on an hourly basis in a temporary capacity
to assist with the Capital Improvement Plan and the 2020 budget until a new City Administrator
is hired and can appropriately take over the role independently. It is expected that this position will
last up to one month after a new City Administrator has been hired, although there is no guaranty
for continued employment through that time as this position is at-will.
C. Employee desires to establish a new hourly 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
agree as follows:
1. Position and Duties. Employer agrees to employ Employee as a temporary
employee solely for the purpose of assisting with the Capital Improvement Plan and the 2020
budget. Employee will not do any other tasks previously designed as being within the role of the
City Administrator. Employee acknowledges that his may require his attendance at evening and
other meetings outside of regular business hours.
2. Duration and Compensation.
a. Term. This Agreement shall be in effect for the period beginning on June
18, 2019 (the “Commencement Date”) and shall continue until terminated by Employer or
Employee. It is expected, although there is no guaranty on behalf of either party, that this
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position will continue until a new City Administrator is hired and for up to one month to
allow an appropriate transition of the duties of Employee.
b. Hourly Rate. Employee shall be paid an hourly rate of $60 per hour for all
work completed. Payroll is processed bi-weekly. Time cards are submitted to the Deputy
Clerk no later than the Monday morning follow the last day of the pay c ycle.
c. Work Schedule & Overtime. Employee has the ability to establish his own
work schedule. It is anticipated that he will not work more than 8 hours per week. Employee
will be a non-exempt employee and thus will be eligible for overtime pay at a rate of time
and one-half for all hours worked over 40 in one workweek. Employee is not expected to
work overtime and all overtime must be pre-approved by the temporary Personnel
Committee consisting of Mayor Maefsky and Councilmember Jerry Cusick.
d. 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 Employer be required to contribute to more than one such
pension plan or to contribute more than the minimum required by Minnesota law.
e. Personnel Policies & Benefits. To the extent consistent with the spirit and
intent of this Agreement and except as otherwise provided herein, Employee has access
only to such benefits as are made available to Employer’s temporary employees by
Employer’s Personnel Policy (the “Personnel Policies”) as adopted or modified from time
to time by Employer. Employee is not considered a “regular full-time” or “regular part-
time” employee, but instead a “temporary employee.” Employee does not have access to
PTO or holiday pay but will be eligible for any leave mandated by state or federal law.
Employee will not have access to the Employer’s health insurance plan, life insurance, or
disability insurance. Employee hereby agrees to be bound by and adhere to Employer’s
Personnel Policies as adopted or modified from time to time by Employer.
3. At-Will Employment Relationship. This Agreement does not constitute a promise
or guarantee that employment will continue for a specified period of time or end only under certain
conditions. Employment with Employer is a voluntary employment-at-will relationship, and
nothing in this Agreement is intended to create an express or implied contract of employment for
a definite period of time or a promise or guarantee of any benefit. Employee has the right to
terminate their employment relationship for any reason, with or without cause or notice, at any
time, and the Employer has the same right.
4. Indemnification. Employer shall defend and indemnify Employee to the extent
required by and subject to the limitations set forth in Minnesota Statutes, Sections 466.07 and
465.76, as amended.
5. Non-Civil Service Status. It is expressly understood and agreed that Employee is
not being appointed or employed under any state or local civil service laws, procedures, or
regulations, and neither state nor local civil service laws, procedures o r regulations apply to
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Employee’s employment and tenure. Employee expressly waives any coverage under any such
laws or procedures or regulations.
6. 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
agreement 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 Minnesota law.
The parties to such arbitration proceeding shall each pay one-half 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.
7. Legal Counsel Disclosure. At the request of Employer and with the consent of
Employee, the law firm of Eckberg Lammers, P.C. (the “Law Firm”) as the City Attorney for
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 exist 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 its Deputy Clerk, and Employee has signed this
Agreement, in duplicate, the day and year first above written.
EMPLOYER:
CITY OF SCANDIA, MINNESOTA
By: _______________________________
Christine Maefsky, Mayor
EMPLOYEE:
______________________________
Neil Soltis
ATTEST:
__________________________________
Brenda Eklund, Deputy Clerk