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2012-028 RES APPROVING/AUTHORIZING EXECUTION OF CITY MANAGER EMPLOYMENTAGREEMENT BETWEEN JOHN GODWIN AND COPRESOLUTION N0. 2012-028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF A CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN JOHN GODWIN AND THE CITY OF PARIS, TEXAS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on March 26, 2012, the City Council of the City of Paris voted 6-1 to offer the City Manager position with the City of Paris to John Godwin subject to Mr. Godwin executing an Employment Agreement, a copy of which is attached hereto as Exhibit "A"; and WHEREAS, the City Council has reviewed the attached Employment Agreement with John Godwin and deems it appropriate, and the Mayor should be authorized to execute the Employment Agreement on behalf of the City Council said Agreement being attached hereto as Exhibit "A"; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble of this resolution are hereby in all things approved. Section 2. That the City Manager Employment Agreement between John Godwin and the City of Paris, Texas attached hereto as Exhibit "A", is hereby accepted conditioned upon the terms and conditions included in the Agreement and the Mayor of the City of Paris be and he is hereby authorized and directed to execute the Employment Agreement on behalf of the City of Paris. Section 3. That this resolution shall be effective from and after the date of passage. PASSED AND APPROVED this 9th day of April, 2012\ ~ A.J. Hashm~~l:;D., Mayor . ~ , ~ ATTEST: E 00,O- gn . , iace Ellis, City Clerk APPROVED AS TO FORM: ~ W. Kent ity Attorney EMP:LQYMENT AGREEMENT IntrodUCtion -E.. This Agreement, made anri entered into thi~ day of 1Vlazch 2012 by and between the City Council af the City of Paris Texas, a municipal corporation, (hereinafter called "Employer") and John K. Godwin, (hereinafter catled "Employee") an Xndividual who has the edncation, training and e;cperience in Iocal government rnanagement azld who, as a member of TCMA, is sabject to the ICMA Code af Ethics, bot6 of whom agree as fallows: Section 1: Term 1.1 Initial Term. T'he term of this Eznployment Agreement ("Agreement") shall be for a period of three (3) years beginn.ing May 23, 2012 and ending Mav 22, 2015 ("initial term") provided, however, Che terrn of this Agreement may be terminated earlier by either party subject to the provisions set forth in Sections 9, 10 and 11 of ihis Agreement. 1.2 Extension. Priar ta the expiration of the initial term of this Agreemsnt, Employer and Employee may mutually agree in writing to renew and extend this Agreemetat. Section 2: EmploymendAssignments and Duties. Employer hereby agrees to emplo}r John Goc3win as Ciq, Manager for the City of Paris, Texas. Employee shall faithfully perform the duties of City Manager as prescribed in the jab descrzption, as set forth in the City Charter, City Ordinances, City Policies and Procedures and as may be lawfullyr assigned by the City Council. Further, Fmployee shall comply with the City Charter, City !Ordinances, City Folieies and Prpcedures, and all applicable state and federal law, as they exist and as they may be amended (coilectiveiy "Applicable Laws and Authorities") and aIt lawful City Cauncil directives. All duties assigned ta Empioyee by the CounciI shall be appropriate ta and consistent with the pra£essional role and responsibility of the City 1lqanager posit3on. Section 3: Campensatian A. Base Salary: Emplayer agrees to pay Employee an annual base salary of $165,430.00 payable in installments at the same time that the ather managemenfi employees of the Employer are paid. B. This agreement shall be automaticalIy amended to reflect any salary adjusimerns tha.t are provided or required by the Emplayer's compensation policies. C. Consideration sha.fl be given on an annual basis to increased compensation. Irz no case shatl eompensation be inereased each yea.r by less than the average across the board increase granted to other employees of Employer. Section 4: Health, Disability and Life Insurance Benefits A. Empioyer agrees to provide and to pay the premiums for health, haspitalizatian, surgiGal, visio.n, denial, and eomprehensive medical insurance for Bnipioyee and his dependents equal to that which is provided to a11 other employees of the City of Paris. Fram the effective date af this agreernent through September 30, 2012, Employer shall reimburse Emplayee for all Cobra payments for $C/BS health covezage through the Town of Fairview. Enipioyee shall be enrolled in Paris's health plan effective Octaher l, 2012. B. Employer agrees to put into force and to make required premium payments for long term disabilitv coverage for Empioyee. C. Employer shaIl pay the amount of premium due for tercn life insurance in an amount equal to the Employee's annual base salary, including all increases in the base salaiy during the life of this agreement. Employee shall narrrne the beneficiary of the Iife insurance polrcy. Sertion 5: Vacatian and Sick Leave A. Employee shall accrue sick and vacation leave on an annuaI basis at the highest rate provided to any other emplnyee. B. Employee is entitled to accrue all unused leave consistent tivith City of Paris policies, and in the event Emp}oyee's employment is terminated, either voluntari.ly or involuntarily, Employee shall be compensated for alt accrued vaeation time, all paid holidays, and other benefits to date. ~ ~no~d C. Employee shall be credited xvith fve (5) davs o~administrative leave beginning on the first date of errtployment. Section 6: Manthly Vehicle Allowance Employer agrees to pay to Emgloyee, during the term of this Agreenient and in additian to other satary and benefits herein provided the sum of $6,000 per year, payable manthly, as a vehicle a.llowance to be used to purchase, lease, or own, operate and maintain a vehicie. Beginning May 1, 2013, the monthly alloNvance shall be increased in proportion to the percentage increase i.n t.he cost of retail fuel as pubiished by the Oil Price Tnfonnatian Service (QPIS). Employee shall be responsible for paying for liability, property damage, and comprehensive insurance coverage upon such vehiele and shall further be responsihle for all expenses attcndant to the purchase, aperation, rnaintenance, repair, and regular replacement of said vehicle. Employer sha.tl reimburse the Employee at tlze IRS standard mileage rate for any business use of the vehicle outside Lamar County, Section 7: 12etirement Employer agrees to enroll Employee into the Texas Municipal Retirement System and to make all the appropriate contrihutions on the Employee's behalf. Section 8: General Business Eacpenses 1. Employer agrees to budget far and to pay for professianal dues and subscriptions of Employee necessary for continuation and full participation in national, regional, state, and loca( assaciations, and organizafiions necessary and desirable for Employee's continued professionai participa#ion, growth, and advancement, and for the good of Employer. 2. Emplayer agrees to budget for and to pay for trauel and subsistence expenses of Employee far professional and official travel, meetings, and occasians to adequately continue the professional develapment of Employee and to pursue necessary official functions for Employer, including but not limited to the IC'VIA Annual Conference, the Texas Municzpai League, the Tex.zs City Management Assoeiation, and such other national, regional, state, and local gavernmental groups and committees in which Employee serves as a member. 3. Emplayer also agrees to budget for and to pay for travel and subsistence expenses of Employee for shart courses, institutes, and seminars that are necessary for Employee's professional development and for the good of Employer. 4. Ecnployer shall pravide Employee with, ar reiznburse Bznployee for costs af, a hame computer, software, faxfmodem, and cell phone requiretl for Employee to perfarm the job and to mainta.in communication. SecYion 9: Terrninatian For the purpose of this agreement, terrnination shall occur when: A. Employee is terminated for gaad cause. For purposes of this Agreernent the ferm "good cause" is defined as Follows: 1. flny willful, knowing, grossly negligent, or negtigent breach, disregard or habitual neglect of an}r provisions of this Agreement, or any willful, knowing, grpssly negligent, or negligent breach, disregard or habituai negIect of ariy duty or abligation required to be performed by City Manager under this Agreement or under the Charter, ordinances andJor Policies of the City and/or the laws of the United States or the State of Texas. 2. Any willful, knowing, or grossly negligent misapplication or misuse, direck or indirect, by City Manager of pubiic or other funds or other property, reals personal, or mixed, owned by or entrusted to the Ci#y, any agency or corporation thereof, or the City Manager in his of~"icial capacity. B. The majority af the governing 6ody votes to termina#e the Employee at a duly authorzzed public meeting. C. If Employer, citizens, or the state icgistature acts to amend any provisions o£ the 1'exas Locat Government Code or a future city charter pertaining to the role, pawers, duties, authority, responsibilities of Employee's position that substantially changes tlie form of government, the Employee shall have the right ta declare that such amendments constitute termination. U. If Employer reduces the ba,se salary, compensation or any other $naixcial benefit af the Employee, unless it is applied in no greater percentage than the average reduction af a11 department beads, such action sha11 constitute a breach of this agreement and will be regarded as a ternunation. E. If Empioyee resigns his employment with the City, in response to a resolution approved by a majority of the entire City Councii requesting Employee's resignation, then Employee may declare a termination as of the date of his signed letter of resignation.. F. Employer has eommitted a ma.terial breach of this Agreement and Employer has not cured the breach within thirty (30) da.ys following receipt of written notioe of the breach delivered by Employee. Provided, however, if said breach cannot be cured within said thirty (30) days, then Empiayer shall be allowec€ a reasonable aniount of time ta cure sa:id breach_ Written notice of a breach of contract shall be provided in accordance with the provisions of Sectian 17. Section 10: Severance Severance shall be paid to Employee when employment is terminated as defined in Section 9. If Employee is terminated, Employer shali provide a minimum severance payment equal to ] 0 rnonths' salary at the then current rate of pay. This severance sha11 be paid in a lump sum unless otherwise agreed to by Employer and Employee. One year from the effective date of this agreement said pavment shall increase to an amount equa.l to eleven rnonths' salary, and two years froni the effective date to twelve months. Employee shall aiso 6e compensated for a11 accrued sick leave, vacation time, a11 paid hoIidays, and administrative l.eave, if any. For a minimum period of 10 months following termination, Employer shall pay the cost to contirrue the following benefits: 1. Health insurance for the employee and ail dependents as pravided in Sectian 4A; 2. Life insurance as provided in Section 4b: 3. Long-term disability as provided in Sectian 413; 4. Car aliowance; and 5. Any other avaiIable benefrts. If Employee is terminated for gaod cause then Employer is not obligated ta pay severaxice under this sectzon. Section 11: Resignation In th.e event that Etnpioyee voluntarily resigns his position with Emp3oyer, Employee shall pravide a minimum af thirty (30) clays notice unless the parties agree othenvise. Emplayer is not obligated to pay severance to Employee in the event Ernployee voluntarily resigns his employment with City. Section 12: Performance Evaluation Emplo,yer shail annually review tfie performance of Employee subject to a process, form, criteria, and format for ttle evaluatian which shall be mutually agreed upan by Employer and Employee. The pracess at a minimum shaIl include the opportunity for both parties to: 1} prepare a written evaluation, 2} nrteet and discuss the evaluatian, and 3} present a written summary of the evaluation results. The final written evaluation shouId be compieted and delivered to Employee within thiriy (30) days of the evaluatian meeting. Section 13: Hours of Wark It is recognized that Employee must devate agreat deal of time outside nonnal office hours on business for Employer, and to that end Eznplpyee shall be alio«=ed to establish an appropriate Nvork schedule. Seckion 14: Outside Activities The employrrtent pravided far by tbis Agzeement shall be Employee's sole employment. However, recognizing that certain outside consulting or teaching opportunities provide indirect benefits to Employer and the cammunity, Emplayee ma.y elect to accept limited teaching, consulting ar other busi►aess oppoxtunities with the understanding that such arrangemants shall not constitute interference with ar a conflict of interest with his respansrbi[itres under tbis Agreament. Section 15: Indemnification To the extent perrnitted by law, Employer shall defend, save harmless and indemnify Emgloyee against any tort, professional liability claim or demand or other legal action, whether groundless or othenvise, arising out of an alleged act ar oznission occnrring in the performance of Employee's duties as City Manager or resulring from the exercise of judgment or discretion in connection with the performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. Employee may request and Employer shall not unreasonably refuse to provide independent legal representation at Employer's expense and Employer may not unreasonably withhald approval. Legal representation, pzovided by Ernployer for Employee, shall eartend until a final determination of the legal action includi.ug any appeais brought by either party. Employer shall indem.nify emplayee against an_y and all Iosses, damages, judgments, interest, settiements, firtes, caurt costs and other reasonable casts and expenses of Iegal proceedings including attorneys fees, and any other Iiabili#ies incurred by, impased upon, or suffered by such Employee in connection with or resulting from an_y claim, actian, suit, or proceeding, actuat ar threatened, arising out of or in connection with the perfarmance of his ar her duties. Any settlement of any claim must be made with prior approval of Emplo-ver in order far indemnification, as provided in this Section, to be available. Employee recognizes t.hat Employer shall have the right to grasecute, compromise and/or settle any claim or lawsuit involving Employee in his off"icial capacity and Employee sha11 have inpu# in the prosecution or settlement of a claim, lawsuit ar settlement only if Employee was sued in his persanal capacity. Further, Employer agrees to pay all reasonable litigution exgenses of Employee throughout the pendency of any litigation to which Employee is a party, witness or advisor to Emgtoyer. Such expense payments shalI continue beyond Employee's service to the Employer as lang as litigation is pending. Further, Employer agrees to pay Employee reasonabie consulting fees and travet expenses when Employee serves as a witness, advisor or consultant to Employer regarding pending IitigatiQn. Section 16: Other Terms and Conditions of Employment Employer, anly upon agreement with Employee, shali fix any such ather terms and conditions of empIayment, as it may determine from time to tame, relating ta the perforznance of the Employee, provided such terms and conditions are nat inconsistent with or ui conflict Ncith the provisions of this Agreement, the Teaas Local Government Code, the City of Paris Charter, or any other law. Sectiori 17: Notices Notice pursuant to this Agreement shall be given by depositing in the custody of the United States F'astal Service, postage prepaid, addressed asfallows: (1) EMPLOYER: Mayar, City of Paris, P.Q. Box 9437, Faris, Texas 7546I-9037, and an additional copy addressed to City Clerk, City of Paris, Texas, PO Box 9037, Paris, Texas 75461-9037 (2) EMPL4YEE: John Godwin, 6613 Springmeadaw Lanc, Rawlett. TX 75089 Alternatively, notice required pursuant to this Agreement may be personally served in the sarne manner as is applicable to civil judicial practice. Notice shall bc deemed given as of the date af persanal service or as the date af deposit of such written notice in the course of transrnission in the Uruted States Postal Service. Section 1$: General Provisians A. Primarv Residence in City af Paris. Employee agrees to establish and maintain his primary residence in the city Iimits of the City of Paris during the term of this Agreement and any extensions or renewats thereof. B. Integration. This Agreemcnt sets forth and establishes the entire understanding between Employer and Employee relating to the employment of Employee by E-mployer. Any prior discussions or representations by or between the parties are merged into and rendered null and void by this Agreernent. The parties by muttial w-ritten agreement may amend any provisian of this agreement during the life of the agreement. Such amendments shall be incorporated and made a part of this Agreement. C. Binding Effect. This Agreement shall be binding on Employer and Employee as well as their heirs, assigns, executars, personal representatives and successors in interest. D. Effectave Date. This Agreement shaU become effective on~ . 2012 and shall remain in £ull force and effect far a period of three years. E. Severability. The imvalidity or partial invalidity of any portion of this Agreement will not affect the validity af any other pravisiou. In the event tliat any provision of this Agreement is held to be invalid, the remaining pravisions shail be deemed to be in ftill force and effect as if they have been executed by both parties subsequent to the eYpungement or judicial modification di the invalid provision. F. Waiver. No waiver of any provisian hereaf or of any right or remedy hereunder shall be effecfiive unless in writing and signed by the party against whom such waiver is soaght to be enfarced. Na delay in exercising, no course in dealing with respect ta, ar no partial exercise of any right or remedy hereunder shall constitute a waiver of any other right or remedy, ar future exercise thereof. G. Governing I,aw & Venne. This Agreement shall be construed and enforced in accordance with the laws af the State af Texas and this Agreement sha.tl be perfarmed in Paris, Lamar County, Teaas, therefore any Iawsuits related to this Agreement shall be filed in Lamar County, Te,Kas if in 5taxe Court and in the Eastern District of TeYas if filed in Federal Court. IN WI'INESS WHEREOF, THE City and the Manager liave executed this Agreement as af the dates indicated below. By: ATTEST: S gae Ellis, City Clerk THE CITY UF PA►,RIS, TEXAS AJ. Hashmh M.D:, Date: CITY MANAGER: Ay, A , oh K. Gadwi I?ate: O*( Qz1( 2,,,