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Home My WebLink About13854 RESOLUTION NO. 13854 A RESOLUTION APPROVING AN AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND SAM AZAD AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council finds and determines that good cause exists to amend the employment agreement with Sam Azad dated December 10, 2012. The Amendment to Employment Agreement dated December 26, 2017, a copy of which is attached hereto and incorporated herein by this reference, having been approved as to form by the City Attorney, is hereby approved. The President of City Council is authorized to execute and deliver said amendment in the name of the City and the Acting City Clerk is directed to affix the seal of the City thereto and to attest same. SECTION 2. The officers and staff of the City are authorized and directed to perform any and all acts consistent with the intent of this Resolution and the attached Amendment to Employment Agreement which are necessary or desirable to implement the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED December 26, 2017 BY: Ed Brown City Clerk’s Office Item # M-4 Background Paper for Proposed Resolution COUNCIL MEETING DATE: December 26, 2017 TO: Members of City Council CC: Sam Azad, City Manager VIA: Brenda Armijo, Acting City Clerk FROM: Stephen G. Nawrocki, President of City Council SUBJECT: A RESOLUTION APPROVING AN AMENDMENT TO AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND SAM AZAD AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAID AMENDMENT SUMMARY: Attached is a Resolution approving and authorizing the President of City Council to sign an amendment to an employment agreement with Sam Azad. The amendment makes certain changes to a December 10, 2012 Employment Agreement with Mr. Azad. Except as changed by the amendment, the December 10, 2012 Employment Agreement will remain in full force and effect. PREVIOUS COUNCIL ACTION: On December 10, 2012, by Resolution No. 12555, the City Council approved an employment agreement with Mr. Azad to serve as City Manager. BACKGROUND: On November 7, 2017, the voters of the City of Pueblo, by a 52% to 48% margin, approved an amendment to the City Charter to change the form of government from a Council-Manager government to a Mayor-Council government. The charter amendment approved by the voters provides that the City Manager shall continue in office “to serve and carry out the functions, power and duties of the office until the first Mayor elected under the charter amendment takes office.” Sam Azad, the current City Manager, has agreed to continue to serve in that capacity through January 2019 when new Mayor takes office. The change in the form of government to a Mayor- Council government requires that Mr. Azad’s City Manager contract be updated and amended. FINANCIAL IMPLICATIONS: Mr. Azad’s December 10, 2012 Employment Agreement and the attached Amendment to Employment Agreement are similar to and patterned after the employment agreements for former City Managers. The amendment to Mr. Azad’s employment contract will not increase his salary. Council will annually adjust his salary by the same percentage as other City management employees. The term of Mr. Azad’s employment agreement will change from indefinite to when the new Mayor takes office. Upon termination of his employment contract, Mr. Azad will be paid for accrued vacation and accrued sick leave. The cap on the maximum number of accrued hours has been removed. In addition, the City will increase its contribution to Mr. Azad’s Health Savings Account to $658.33 per month. The City will contribute $500 per month to a retirement account designated by Mr. Azad. In all other respects, the December 10, 2012 Employment Agreement will continue to be honored by both the City and Mr. Azad. Should Mr. Azad decide to resign as City Manager prior to when the new Mayor takes office, he is required to give the City thirty (30) days advance written notice specifying the date of resignation. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Resolution. STAKEHOLDER PROCESS: Not applicable to this Resolution. ALTERNATIVES: If this Resolution is not approved, Mr. Azad has the option of resigning as City Manager and not serving in that capacity until the Mayor takes office. RECOMMENDATION: Approval of the Resolution. Attachments: Proposed Resolution; proposed Amendment to employment agreement AMENDMENT TO EMPLOYMENT AGREEMENT THIS AMENDMENT TO EMPLOYMENT AGREEMENT ("Amendment") is entered into this 26th day of December, 2017, between the City of Pueblo ("City"), a Colorado municipal corporation and Sam Azad ("Manager"). WITNESSETH WHEREAS, on December 10, 2012, by Resolution No. 12555, the City Council of the City approved an employment agreement ("Employment Agreement") with Manager to serve as City Manager; and WHEREAS, on November 7, 2017, the voters of the City approved an amendment to the City Charter to change the form of government from a Council-Manager government to a Mayor-Council government; and WHEREAS, the charter amendment approved by the voters provides that the City Manager shall continue in office "to serve and carry out the functions, power and duties of the office until the first Mayor elected under the charter amendment takes office;" and WHEREAS, Manager, the current City Manager, has agreed to continue to serve in that capacity until the new Mayor takes office; and WHEREAS, the change in the form of government to a Mayor-Council government requires that the Employment Agreement be updated and amended. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Manager agree as follows: A. The above recitals are true and correct and are incorporated herein. B. The Employment Agreement is hereby ratified and except as amended by this instrument, shall remain in full force and effect. C. Section 2 of the Employment Agreement is hereby amended to read as follows: 2. Term. Manager is appointed and employed as City Manager commencing January 1, 2013 (the "Effective Date") until the new Mayor takes office (the "Termination Date"). As mandated by the City Charter, Manager shall serve at the pleasure of the City Council. Prior to the Termination Date, Manager may be removed by the City Council as City Manager by majority vote of its members as provided in Section 4-3 of the Charter of the City. D. Section 3 of the Employment Agreement is hereby amended to read as follows: 1 3. Salary. For services performed as City Manager, Manager shall be paid his current salary as of the date of this Amendment, payable in accordance with City's normal payroll procedures. Manager's salary shall automatically be adjusted by the same percentage as the City management employees' salary adjustments for each fiscal year. Such adjustment in salary shall occur at the same time as the management employees' annual salary adjustments take place. D. Section 5 of the Employment Agreement is hereby amended to read as follows: 5. Severance Pay. Upon the disability or death of Manager or in the event that the Manager is removed as City Manager by City Council , City will pay Manager, or Manager's heirs or beneficiaries as applicable, the following severance payments: (a) prorated salary owed to Manager as of the date of separation from employment ("Regular Salary"); and (b) accrued vacation and sick leave at the then existing rate of pay ("Leave Pay"); and (c) an additional amount equal to nine (9) months of salary ("Salary Severance Pay"), without benefits. Upon the Manager's separation from employment, City will pay Manager's COBRA continuation coverage premium through March 31, 2020 ("COBRA Payments"). The Salary Severance Pay will be paid, at the option of the Manager, in either a lump sum or in monthly installments. If the Manager elects to have the Salary Severance Pay paid in monthly installments the installments will begin on February 1, 2019 and be paid through October 31, 2019. If the Manager chooses the monthly installments the monthly installments shall include the payment of the health, medical, dental and vision insurance for the Manager. The payment for the Manager's health, medical, dental and vision insurance shall be in lieu of COBRA for the fourteen months with COBRA payments to be then made for the period of November 1, 2019 through March 31, 2020. D. Section 6 of the Employment Agreement is hereby amended to read as follows: 6. Resignation. Manager may resign as City Manager by giving to the City at least thirty (30) days' advance written notice specifying the date of resignation. All Severance Pay benefits will be paid as provided in Section 5, above. . D. Section 7 of the Employment Agreement is hereby amended to read as follows: 7. Benefits. Except as otherwise provided herein. Manager shall receive not less than the same benefits provided by City to City's management personnel under City's personnel ordinances as amended from time to time, including: hospital and dental insurance, holidays, personal holidays, sick leave, funeral leave, family and medical leave, and vacation leave. With respect to vacation and sick leave and contributions to an employee's Health Savings Account, Manager shall be entitled to the following benefits: 2 (a) Vacation Leave. Vacation leave shall accrue, without limitation, at the rate of eighteen (18) hours for each completed month of service. . (b) Sick Leave. Sick leave shall accrue, without limitation, at the rate of twelve (12) hours for each completed month of service. (c) Health Savings Account. Commencing January 1, 2018 and until Manager's disability, death or separation from employment for any reason, City will contribute $658.33 per month to Manager's Health Savings Account. (d) Retirement Plan. Commencing January 1, 2018 and until Manager's disability, death or separation from employment for any reason, the City will contribute $500 per month to a retirement plan designated by the Manager. IN WITNESS WHEREOF, the parties have caused this Amendment to Employment Agreement to be executed as of the day and year first above written. [ SEAL ] City of Pueblo, a Mu ' ••-1 Corpor. '.n QQ Attest: -&st_n toLu4 By _ Acrn City Clerk President o e City Council Sam A d 3