Approved Agreements and Contracts City Manager Employment Contract 10-5-22

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                       Agenda Item Review Form
                                                us                       _ GO
                          Muskegon City Commission

Commission Meeting Date: October 25, 2022                          Title: City Manager Contract

Submitted By: Mayor Johnson                                        Department: Mayor's Office

Brief Summary: To approve an agreement with Jonathan Seyferth as City Manager beginning
November 28, 2022.

Detailed Summary & Background: The City Commission interviewed several candidates for City
Manager and voted to offer the position to Jonathan Seyferth by a 5-2 vote. An agreement has
been reached with the candidate for an annual salary of $148,000 beginning November 28, 2022.

Goal/Focus Area/Action Item Addressed:

Amount Requested : NA                              Amount Budgeted :

Fund(s) or Account(s) :                            Fund(s) or Account(s) :

Recommended Motion: To approve the agreement as presented.

Approvals: Get approval from division head at a minimum prior      Guest(s) Invited / Presenting
to sending to the Clerk.
Immediate Division Head    □   Information Technology       □      Yes
Other Division Heads
                           □   Communication
                                                            □      No
Legal Review
For City Clerk Use Only:
Commission Action:
                                       EMPLOYMENT AGREEMENT

                          CITY OF MUSKEGON JONATHAN SEYFERTH
                                   Effective November 28, 2022

        This employment agreement is made and entered into by and between the CITY OF


        A.        The CITY desires to employ MANAGER as the City Manager of the City of
Muskegon as provided in the Charter of the City of Muskegon and desires to establish conditions
of employment, provide certain benefits and set working conditions for said MANAGER.
        B.        MANAGER desires to be employed as City Manager of the City of Muskegon in
accordance with the terms and provisions of the Agreement.
        C.        This Agreement supersedes all discussions and agreements.


         1.       EMPLOYMENT. CITY employs MANAGER as City Manager to perform the
functions and duties specified in the City Charter and ordinances and to perform such other
legally permissible and proper duties and functions as the City Commission may, from time to
time, assign, and MANAGER accepts such employment.
                  MANAGER agrees to remain in the employment of the CITY until termination is
effected as hereinafter provided. MANAGER agrees to devote full time to his duties as City
Manager and may undertake other incidental employment, subject to the right of the City to
require Manager to terminate other incidental employment.

         2.        SALARY. Effective November 28, 2022, CITY agrees to pay MANAGER, as
compensation for services rendered, an annual salary of $148,000 per year. MANAGER shall be
entitled to cost of living adjustments approved by the City Commission for department heads on
the first of each year, commencing January 1, 2023, and a merit adjustment will be considered
and, if granted, would be effective July 1 of each year, commencing July 1, 2023.

        3.       FRINGE BENEFITS.                  In addition to the base salary, CITY shall afford
MANAGER the fringe benefits provided for as follows:

        3.1       Residency Premium:              City will pay to MANAGER a premium for being a
        resident consistent with the Muskegon City Residency Program as amended. Presently,
        the incentive is 6% of base wages, paid bi-weekly, while the Manager resides in the City
        of Muskegon city limits. There is also a match toward a down payment and a forgivable
        loan program, subject to certain limitations.

        3.2       Health Insurance:             City shall provide the same HMO health insurance plan
        provided to other department heads.              MANAGER shall contribute toward the health
        insurance premium at the same rate as other department heads and follow the same
        wellness program required of other department heads. MANAGER may opt out of the
        health insurance and receive an annual stipend equal to the stipend offered to other
        department heads.

         3.3      Disability Insurance:City provides short-term and long-term (60% of pre-
         disability earnings up to $5,000 per month) disability insurance.

         3 .4     Life, Vision and Dental Insurance: City provides life insurance (200% of base
         salary to a maximum of $200,000), vision insurance, and dental insurance.

         3.5      Flexible Spending Account: Employees may contribute pre-tax income to a
         flexible spending account for medical and dependent care.

         3.6      Health Care Savings Plan: City offers a Health Care Savings Plan. There is a
         mandatory 2% employee pre-tax contribution and a 3% City match.

         3.7       Defined Contribution Plan: City provides a defined contribution plan through
         the Municipal Employees Retirement System (MERS). There is a mandatory employee
         contribution of 3% and a City contribution of 9% ofW-2 wages.

         3.8       Holidays: City offers the standard 12 recognized holidays.


        3.9       Vacation Time:           City will credit 112 hours to MANAGER'S vacation bank
        effective on November 28, 2022 and 200 hours on the first of each year, commencing
        January 1, 2023. 160 hours can be carried over from one calendar year to the next.

        3.10      Personal Leave: City grants 16 hours of personal leave per year, which cannot
        be carried over from one year to the next.

        3.11      Sick Leave: Sick leave is earned at 3.6923 hours bi-weekly (96 hours per year).
        Sick leave may be accumulated to a maximum of 1056 hours. Once an employee has
        accumulated 160 hours, an employee may be paid (50%) or deposit into a deferred
        compensation plan (100%). There are ce1iain restrictions on the payout.

         3.12     Bereavement Leave: In the event of death in the immediate family of an
         employee, consisting only of spouse, parent, grandparent, child, brother, sister, mother-
         in-law, father in-law, son-in-law, daughter-in-law, brother-in law, sister-in-law,
         grandchild, and grandparent-in-law and the employee attends the funeral service, such
         employee shall be granted up to 30 hours leave of absence with full pay. In the event of
         death in the step family of an employee, consisting only of step-parent, step-grandparent,
         step-child, step-brother, step-sister, step mother-in-law, step father-in-law, step son-in-
         law, step daughter-in-law, step brother-in-law, step sister-in-law, step-grandchild, and
         step-grandparent-in-law, and the employee attends the funeral service, shall be granted up
         to 20 hours leave with pay. In the event of death in the family of such employee other
         than above, 10 hours leave is granted with pay, and shall be taken on the day of the
         funeral and provided the employee attends the funeral.

         3.13      Jury Duty: If an employee is summoned to report for jury duty, the employee
         will be paid the difference between normal wages earned on affected days and jury fees
         allotted by the courts.

         3.14      Membership Dues:             City will pay membership dues to Michigan Municipal
         League Local Govemment Management Association, ICMA membership, and one civic
         organization. City will reimburse expenses to attend the two Michigan Municipal League
         conferences, the ICMA annual conference and ICMA conferences in the state.

        3.15      Diversity, Equity, and Inclusion (DEi) Training.         The City's Mayor and
        Manager shall review options for a DEI training program, the time commitment, and cost
        of various programs.           The City's Mayor and Manager shall recommend to the City
        Commission a DEI program for the Manager to attend/participate, with conesponding
        release time and budget for reimbursement costs.

        3.6       Use of City Vehicle. Manager shall receive a vehicle allowance of $300 per
        month and may use a City vehicle for any travel outside of Muskegon County and the
        adjoining counties. i.e., outside of Muskegon County, Oceana County, Newaygo County,
        Kent County and Ottawa County.

        In addition to the fringe benefits set forth above, and to the extent that this paragraph
does not duplicate or conflict with the above paragraph which shall prevail, the MANAGER
shall have the same fringe benefits as are available to the highest compensated department head
employed by the CITY from time to time.

         4.       TERM. It is understood by both CITY and MANAGER that employment may be
terminated at the will of either party.

         5.        SEVERANCE PAY UPON TERMINATION BY CITY.                      If CITY terminates
MANAGER'S employment without "cause", or if termination occurs pursuant to section 7
(except the last paragraph thereof), MANAGER shall receive the following:
                   a)       severance pay in an amount equal to six month's severance pay with one
         additional month of severance pay for every year of employment, not to exceed twelve
         months of severance pay; and
                   b)       50% of any unused sick leave pay and 100% of any unused vacation time
"Cause" is defined as i) conduct involving harm, even nominal, or threats to the City or its
employees, elected officials, customers, residents, or others with an actual or potential
relationship with the City; ii) conduct that materially damages the City's image; iii) conduct
that reasonably makes it difficult or impossible for City employees, elected officials, customers,
residents, or others with an actual or potential relationship with the City to deal with the City; iv)
public attacks, physical or verbal, on the City or its employees, elected officials, customers,
residents, or others with an actual or potential relationship with the City; or v) failure to

significantly improve performance after a 120 day written notice of specific and significant
perfonnance deficiency(ies).
         If termination is for "cause", MANAGER is not entitled to the severance pay or pay for
unused sick leave or vacation time.

         6.        TERMINATION OF EMPLOYMENT BY MANAGER.                         MANAGER may
terminate employment at any time after providing the CITY with a thirty (30) day notice.

         7.        SEVERANCE PAY UPON TERMINATION BY MANAGER. In the event the
CITY refuses, following written notice, to comply with any material provisions of this agreement
which would financially benefit MANAGER, or MANAGER resigns following the simultaneous
suggestion, whether formal or informal, by a majority of the members of the City Commission
that MANAGER resign without "cause" to terminate employment, or Manager resigns after
receiving a credible threat, as determined by the City, to Manager's safety and the City fails or
refuses to undertake reasonable security precautions, then, in that event, the MANAGER may at
his option be deemed to be terminated without "cause" at the date of such failure to comply or
simultaneous suggestion. In such case, the MANAGER shall be deemed to have been terminated
by the CITY without "cause" and entitled to the severance benefits set forth above.
                   In the event the MANAGER terminates his employment for reasons other than
those stated in this paragraph, he shall receive fifty percent (50%) of his unused sick leave bank
and all unused vacation pay, but no other severance pay or benefit, except as required by law.

          8.        MERGER OF NEGOTIATIONS. This agreement constitutes the entire contract
of employment between CITY and MANAGER.                       No statement, promise, agreement, or
obligation that conflicts with the terms of this agreement shall modify, enlarge, or invalidate this
 agreement or any provisions hereof.

                    The remainder of this page is left intentionally blank.

                 IN WITNESS WHEREOF, the CITY and MANAGER have executed this
                                r.'.' bl'\                       ·
        agreement this .;).) - day of           OCtu\tJ?J) 2022.
                                                          CITY OF MUSKEGON


                                                          a ~- - ~ ~
                                                             Ann Marie Meisch, Its Clerk


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