Broken Arrow City Council
Meeting of: May 17, 2016
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion, possible approval of and authorization to execute a First Amendment to Employment Agreement with Michael L. Spurgeon, the City Manager
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Background:
On July 21, 2015, the City Council appointed Michael L. Spurgeon to be the City Manager. An Employment Agreement was approved by the Council on August 4, 2015. Pursuant to the terms of the Agreement, a six-month review was conducted by the City Council on May 3, 2016, This review was conducted in Executive Session. Once the Council reconvened in Open Session, a Motion was made to have the City Attorney draft an Amendment to the Employment Agreement.
Pursuant to the direction given to the City Attorney, the attached First Amendment was drafted. The First Amendment provides for several revisions to the existing Agreement, none of which involve a general wage increase. The first involves contributions to the City Manager’s retirement account. The existing Agreement provides for a 12% contribution. The proposed Amendment increases the contribution to 15% and identifies ICMA and the City’s Plan Document.
The second proposed revision involves paid leaves. The original Agreement provided for vacation accrual, use, and maximum accumulation in accordance with the Broken Arrow Code of Ordinances as an employee with ten (10) years of service. The proposed First Amendment increases the representative timeframe to that of an employee with twenty (20) years of service. This revision is consistent with vacation accruals and accumulations in contracts with prior City Managers. It could also be considered consistent with similarly situated City Managers.
The final proposed revision involves the provision of employee and dependent group term life, health, vision, and dental insurance. The proposed Amendment sets out the terms for payment of these benefits which are in accordance with those offered to regular non-union employees, with the exception of the cost.
As a clean-up measure, the City Attorney also removed the requirement of passing a drug screen prior to beginning employment. Mr. Spurgeon successfully passed this test prior to beginning employment and, as such, it is no longer necessary. The other terms of the original Employment Agreement remain in full force and effect.
The City Attorney believes that the attached First Amendment, coupled with the original Agreement, remain reflective of others in the industry. It is presented for the Council’s consideration. Mr. Spurgeon has indicated that the terms reflected within the Agreement are satisfactory.
Cost: 3% increase in City’s contribution to Mr. Spurgeon’s ICMA 401A Retirement Plan, cost of insurance for dependent coverage
Prepared By: Beth Anne Wilkening, City Attorney
Reviewed By: Acting Assistant City Manager - Administration
Human Resources Department
Approved By: Michael L. Spurgeon, City Manager
Attachments: First Amendment to Employment Agreement
Recommendation:
Approve the First Amendment to Employment Agreement and authorize its execution.