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CR 11-068 Appoint City ManagerJuly 19, 2011 Council Report 2011-068 • APPOINT CITY MANAGER Proposed Action Move that the Hopkins City Council appoint Michael Mornson as Hopkins City Manager and approve employment agreement. Approval of this motion will officially appoint Mr. Mornson as City Manager. Overview Rick Getschow left in March of this year. Since that time the City Council has undertaken an extensive process to replace him. Advertising and recruitment took place in April and May eventually attracting over 60 candidates. The City Council, in June, narrowed the field to six. There were two days of interviews with the candidates earlier this month. They met with city employees and community members. The Council spent an entire day interviewing the six candidates. • The City Council authorized the City's consultant, Richard Fursman, to negotiate a contract with Mr. Mornson. The draft contract has been completed. The contract calls for Mr. Mornson to begin August 22. Background Mr. Mornson is currently the City Manager of St. Anthony, Minnesota where he has served since 1994. Prior to St. Anthony, Mr. Mornson served seven years as the City Administrator of Big Lake and two years as City Administrator of the cities of Carver and Young America. Supporting Information • Employment Agreement James Genellie Acting City Manager 9 EMPLOYEE AGREEMENT • THIS AGREEMENT is made and entered into this 19th day of July, 2011, between the City of Hopkins, Minnesota (the City), and Mike Mornson (Mr. Mornson). BACKGROUND FACTS A. The City wishes to employ the services to employ the services of Mr. Mornson as City Manager of the City of Hopkins, Minnesota; and, B. The City and Mr. Mornson desire to provide for certain procedures, benefits and requirements regarding the employment of Mr. Mornson by the City; and, C. Mr. Mornson wishes to accept employment as City Manager of Hopkins, under the terms and conditions of this agreement. TERMS OF AGREEMENT In consideration of the facts mentioned above and the mutual promises set out below, the parties agree as follows: Duties: City agrees to employ Mr. Mornson as the City Manager of the City of Hopkins to perform all duties as specified by law and ordinance and perform such other proper duties as assigned by the City Council. 2. Compensation: The compensation of Mr. Mornson as City Manager shall be $115,000 commencing August 22, 2011. Mr. Mornson will receive a performance evaluation at six months of employment, twelve months of employment and annually thereafter. Any future salary adjustment will be granted • at the same time as for other management employees and are subject to Council approval and a satisfactory performance evaluation. Terms and Conditions: Mr. Mornson will serve at the will of the Council and may be terminated with or without cause at any time. Any of the following will constitute termination with cause and would result in no severance: a. Willful neglect of duty. b. Gross inefficiency or incompetence in office that is not corrected after a reasonable written notice. c. Malfeasance in office. Should the City terminate the employment of Mr. Mornson without cause, Mr. Mornson will receive six months severance pay and benefits. If Mr. Mornson decides to terminate employment, Mr. Mornson will provide the City a minimum of 45 days notice of his intent to terminate. 4. Minnesota Public Employees Retirement System (PERA): City will contribute the amounts required by State Law. Mr. Mornson will have the option of choosing that the City amount go to ICMA instead. 5. Insurance Converge: Mr. Mornson will be provided insurance coverage at the same rate as other City Employees. 0 6. Flex Leave and Holidays: a. Mr. Mornson will be provided with five (5) days of flex leave upon employment. Mr. Mornson will be credited with 10 years of service for the purposes of calculating future leave (currently at 296 hours per year for those with 10 years of service). b. Mr. Mornson will be granted the same number of holidays as other City employees. 7. Business Expenses: City will reimburse Mr. Mornson for all reasonable employment related expenses including, but not limited to, meals, one civic club membership and subscriptions. 8. Automobile Expenses: Mr. Mornson will receive a car allowance of $450 per month for use of his personal vehicle while on City business within the City of Hopkins. Dues, Conferences, Subscriptions: The City will pay for dues and related membership costs to professional organizations, conferences, seminars, and other training and development opportunities, subject to budget consideration and Council approval. Professional organizations include, but are not limited to, the ICMA, the Minnesota City/County Managers Association, and the League of Minnesota Cities. In additions the City will pay dues and related expenses for membership to one local service organization. 10. Indemnification: In addition to that which is required under state and local law, the City shall defend, save harmless and indemnify Mr. Mornson against any tort, other than any intentional torts, 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 Mr. Morrison's duties as City Manager. The City will compromise and settle any such claims or suit and pay the amount of any settlement of judgment thereon. • 11. Bonding: The City shall bear the full cost of any fidelity or other bonds required of the Employee under law or ordinance. 12. General Conditions of Employment: In addition to the benefits cited herein, the City shall provide Mr. Mornson with and all benefits that apply to any other employees. 13. Binding Effect: This agreement shall be binding of the City and Mr. Mornson and the successors assigns, and heirs of each respectively. This agreement is now being executed by the parties as of the date stated at the beginning of this agreement. City Clerk 0 By City of Hopkins, Minnesota Gene Maxwell ... _..... _... _....... ......... _............................................. _............. Mike Mornson