Sample Options

SAMPLE – OPTIONS

City Manager Agreement

Many different benefit options exist for each city to compensate its city manager. Likewise many provisions exist as alternatives to those set forth in the accompanying base SampleCity Manager's Agreement.

Below are sample benefit options and other alternative provisions compiled in this listing (organized by reference to the sections of the accompanying base SampleCity Manager's Agreement).

This listing illustrates the great breadth and depth of the choices that exist for cities and their city managers. Of course the universe of available options and alternatives is actually quite larger than reflected in this, or any other list, as the options and alternatives are limited only by the desire and creativity of the parties.

As with the any legal documents or instruments, the parties are advised to consult legal counsel to assist with preparing and finalizing same. These sample options and alternatives are not a substitute for legal advice given directly to each of the parties by their respective legal counsel.

I. Term

Alternative (to Add to Paragraph 1.1) – Evergreen Clause:

Each year during the term hereof this Agreement shall automatically be extended for an additional year, unless the Council notifies the Manager in writing at least four (4) months prior to the anniversary of the effective date of this Agreement that it has voted to not extend this Agreement. The Council may decide to not extend this Agreement for an additional year as set forth in this Paragraph for any reason, with or without cause.

II. Employment

Alternative (to Replace Paragraph 2.8) – Hours of Work:

2.8Hours of Work. The Manager acknowledges the proper performance of the duties of the City Manager of the City will require the Manager to generally observe normal business hours and will also often require the performance of necessary services outside of normal business hours. The Manager agrees to devote such additional time as is necessary for the full and proper performance of the Manager's duties and that the compensation herein provided includes compensation for the performance of all such services. However, the City intends that reasonable time off be permitted the Manager, such as is customary for exempt employees so long as the time off does not interfere with the normal conduct of the office of the City Manager. The Manager will devote full time and effort to the performance of the City Manager's Duties, and shall remain in the exclusive employ of the City during the term of this Agreement; provided that, with the prior consent of the Council, the Manager may accept temporary, outside professional employment which will not in any way interfere with the performance of, or the Manager's availability for the performance of, the Manager's duties hereunder. The term "outside professional employment" means professional services provided to third parties for which the Manager is compensated and which are performed on the Manager's time off. The Council encourages theManager to accept invitations to speaking engagements, writing or other opportunities to communicate with the community, to make use of and share data and information with relevant persons and groups, and shall encourage the participation of the Manager in pertinent seminars, groups, associations and organizations, as well as in informational meetings with those individuals whose particular skills, expertise, or backgrounds would serve to improve the capacity of the Manager to perform the City Manager's Duties.

III. Compensation

Alternative Provisions for Salary

Automatic Salary Escalator Clause – Fixed Percentage Increase - Alternative (to Add to Paragraph 3.1):

The Manager's annual salary shall be automatically increased each year, on the anniversary of the effective date of this Agreement, by an additional percent ( %) of the then current salary of the Manager.

Automatic Salary Escalator Clause – Tied to Staff Raises - Alternative (to Add to Paragraph 3.1):

The Manager's then current annual salary shall be automatically increased each year, on the anniversary of the effective date of this Agreement, by an amount equal to the greater of the highest percentage raise given to the City's other employees or a percentage mutually agreeable to the Council and the Manager.

Performance Based Salary Escalator Clause - Alternative (to Add to Paragraph 3.1):

For each year of this Agreement, provided that [insert objectively measurable goals and/or standards that the Manager must achieve or meet], the Manager's annual salary shall be automatically increased on the anniversary of the effective date of this Agreement, by an additional percent ( %) of the then current salary of the Manager.

Benefit Options

If benefits from among these options or other options not listed herein are agreed to by the parties, then they would be included in the Manager’s Agreement by inserting the appropriate section number, title and text in Article III of the sample Manager’s Agreement.

Annual Physical Examination - Benefit Option:

Annual Physical Examination. Once each year during the term of this Agreement, the Managermay undergo a physical examination performed by a licensed physician selected by the Manager. Upon such examination, the physician shall submit a confidential statement to the Council verifying the Manager's fitness to perform the Manager's duties and copies of all such statements shall be maintained in the Manager's personnel file. The City shall pay all costs of the physical examination and the physician's statement shall remain confidential to the full extent of the Applicable Laws and Authorities.

Automobile/Automobile Expense - Benefit Options:

Automobile—Allowance. The Council shall provide the Manager with an automobile allowance in the sum of ______Dollars ($______) per month, which payment is in lieu of mileage expense reimbursement, gasoline or other vehicle upkeep charges associated with travel to destinations within the City. This allowance shall be paid in addition to the annual salary set forth in Paragraph 3.1 of this Agreement. The Manager will be reimbursed by the City on a per mile basis for business travel in the Manager’s personal automobile to destinations outside the City in accordance with City policy as for other administrative employees. [NOTE: If this option is selected, the second sentence of Paragraph 3.7 of the sample City Manager’s Agreement must be modified to read as follows: “The City agrees to pay the actual and incidental costs incurred by the Manager for travel to destinations outside the City.”]

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Automobile—City Vehicle. The City shall provide the Manager with a late model, full-size automobile for the Manager's business and personal use. The City shall fully maintain the automobile in a safe and good working condition and maintain an automobile liability insurance policy on the automobile with the Manager as a named insured. The City shall fully pay or reimburse the Manager for expenses incurred in the maintenance and use of said automobile and may, in its discretion, provide the Manager with a credit card owned by the City to which such reasonable automobile expenses may be charged.

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Automobile—City Vehicle. The City shall provide the Manager with a late model, full-size automobile for the Manager's business and incidental personal use. The City shall fully maintain the automobile in a safe and good working condition and maintain an automobile liability insurance policy on the automobile with the Manager as a named insured. The City shall fully pay or reimburse the Manager for expenses incurred in the maintenance and use of said automobile and may, in its discretion, provide the Manager with a credit card owned by the City to which such reasonable automobile expenses may be charged.

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Automobile—City Vehicle. The City shall provide the Manager with a late model, full-size automobile for the Manager's business use. The City shall fully maintain the automobile in a safe and good working condition and maintain an automobile liability insurance policy on the automobile with the Manager as a named insured. The City shall fully pay or reimburse the Manager for expenses incurred in the maintenance and use of said automobile and may, in its discretion, provide the Manager with a credit card owned by the City to which such reasonable automobile expenses may be charged.

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Automobile—Reimbursement. The Manager will be reimbursed by the City on a per mile basis for all business travel in the Manager’s personal automobile in accordance with City policy as for other administrative employees on twelve-month contracts.

Civic Activities - Benefit Options(to Replace Paragraph 3.9):

Civic Activities. The Manager is encouraged to participate in community and civic affairs including ______[list specific activities: chamber of commerce, certain civic clubs, etc.]. The expenses of participation in such activities shall be borne by the City.

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Civic Activities. The Manager is encouraged to participate in community and civic affairs. The City shall pay the membership dues to ______(____) community or civic organizations selected by the Manager. In addition to membership dues, the other expenses of participation in such activities shall be borne by the City.

Consultant Activities - Benefit Options:

Outside Consultant Activities. Notwithstanding anything to the contrary in this Agreement, the Managermay serve as a consultant and/or undertake speaking engagements, writing, teaching or other professional duties and obligations for other than the Cityand be paid for such activities (referred to collectively herein as “Consulting Services”) for up to ____ (____) days per year, provided that these Consulting Services do not conflict or interfere with the Manager’s professional responsibilities to the City and that there is no expense to the City. Consulting Services provided by the Manager under the terms and conditions of this paragraph must be consistent with state and federal law.

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Outside Consultant Activities. Notwithstanding anything to the contrary in this Agreement, the Manager may serve as a consultant and/or undertake speaking engagements, writing, teaching or other professional duties and obligations for other than the Cityand be paid for such activities (referred to collectively herein as "Consulting Services"), provided that these Consulting Services do not conflict or interfere with the Manager's professional responsibilities to the City and that there is no expense to the City. Consulting Services provided by the Manager under the terms and conditions of this paragraph must be consistent with state and federal law. The Manager is hereby granted ____ (____) days of Consulting Leave (“Consulting Days”) for each year of this Agreement. The Manager’s accrued but unused Consulting Days shall carry over from year-to-year during the term of this Agreement.

Expenses Benefit Options:

Expenses–Allowance. The City shall provide the Manager with a business expense allowance in the sum of $______per month, for discretionary business expenses related to the City’s business that may be incurred by the Manager but that are not directly reimbursed by the City, e.g., meal and event expenses for gatherings with individual Council members, staff members, business contacts and/or other individuals with whom the City has a relationship.

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Expenses–Annual Audit. The Manager shall cooperate with the City’s external auditors so that the external auditors can perform a complete audit of the Manager’s expenses on a yearly basis and report the audit results to the Council.

Housing Benefit Options:

Housing—Allowance. The City shall pay to the Manager a housing allowance of ______Dollars ($______) per year payable in ______(______) equal installments.

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Housing—Allowance—Temporary. The City shall pay to the Manager a housing allowance of ______Dollars ($______) per month for the first ____ (___) months the Manager is employed by the City.

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Housing. The City agrees to provide suitable housing to the Manager during the term of this Agreement, and agrees to pay for all utilities, repairs and maintenance, including lawn and garden care, and other housing costs.

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Insurance – Health - Benefit Options- Alternatives (to Replace Paragraph 3.5):

3.5Insurance – Health. The City agrees to pay the premiums for health, hospitalization, vision, dental and comprehensive medical insurance for the Managerand the Manager's dependents pursuant to the group health care plan provided by the City for its administrative employees.

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3.5Insurance—Health – Manager and Family. The Cityagrees to pay the premiums for health, hospitalization, vision, dental and comprehensive medical insurance for the Manager and the Manager’s dependants pursuant to the group health care plan provided by the City for its administrative employees. In the event that the Manager does not elect to receive dependant coverage for his family, the City shall pay the amount of the City's Premium Savings (defined below) to the Manager as a dependent coverage cost stipend. The "City's Premium Savings" are an amount equal to the difference in premium cost to provide coverage at the highest available option for: (a) the Manager only,or(b) the Manager and the Manager's dependants.

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3.5Insurance—Health – Manager and Family - Capped. The Cityagrees to pay the premiums for health, hospitalization, vision, dental and comprehensive medical insurance for the Manager and the Manager’s dependants pursuant to the group health care plan provided by the City for its administrative employees; provided, however, that in no event shall the City’s obligations to pay premiums exceed a total of ______Dollars ($______) per month. The City shall provide a plan established under Section 125 of the Internal Revenue Code (the “Code”) and allow the Manager to pay all health, hospitalization, vision, dental and comprehensive medical insurance premiums on a non-taxable basis through such plan to the extent permitted by the Code.

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3.5Insurance—Allowance. The City shall pay ______Dollars ($______) per month toward the premium for insurance coverage as selected by the Manager for health, hospitalization, major medical, dental, life and/or disability insurance. Any costs for such insurance coverage that exceed the payment provided for herein shall be paid by the Manager. The City shall provide a plan established under Section 125 of the Internal Revenue Code (the “Code”) and allow the Manager to pay all health, hospitalization, vision, dental and comprehensive medical insurance premiums on a non-taxable basis through such plan to the extent permitted by the Code.

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3.5Insurance—Allowance – Manager and Family. The City shall pay the Manager ______Dollars ($______) per month for premiums for health, hospitalization, major medical, dental, life and/or disability insurance coverage selected by the Manager for the Manager and the Manager’s dependants.Any costs for such insurance coverage that exceed the payment provided for herein shall be paid by the Manager. The City shall provide a plan established under Section 125 of the Internal Revenue Code (the “Code”) and allow the Manager to pay all health, hospitalization, vision, dental and comprehensive medical insurance premiums on a non-taxable basis through such plan to the extent permitted by the Code.

Insurance – Life - Benefit Options:

Insurance—Life. The City shall pay the annual premium toward the purchase of a term life insurance policy or similar life insurance policy having an aggregate face amount of ______Dollars ($______). All life insurance policies provided hereunder shall be owned by the City on the life of the Manager, with the Manager having the sole right to determine the beneficiary under each of the life insurance policies.

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Insurance—Life. The City shall pay the annual premium toward the purchase of a term life insurance policy or similar life insurance policy having an aggregate face amount of ( ) times the amount of the Manager’s then current annual salary. All life insurance policies provided hereunder shall be owned by the City on the life of the Manager, with the Manager having the sole right to determine the beneficiary under each of the life insurance policies.

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Insurance—Life. The City shall pay the annual premium toward the purchase of a term life insurance policy or similar life insurance policyon the life of the Manager, provided that the City's expense in funding any single annual premium shall not exceed Dollars ($ ). All life insurance policies provided hereunder shall be owned by the City on the life of the Manager, with the Manager having the sole right to determine the beneficiary under each of the life insurance policies.

Insurance – Disability - Benefit Options:

Insurance—Disability. The City shall pay the annual premiums for a disability income policy for the Manager, which policy shall provide disability income of ______percent (____%) of the Manager’s then current annual salary to the Manager or the Manager’s designated beneficiary in the event the Manager becomes disabled or incapacitated during the term of this Agreement.