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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. 1 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 2 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 3 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