a. The City employs the Employee as its City Manager to perform the functions and duties as its chief administrative officer with all of the authority and powers provided therefore under the laws of the State of Kansas and the ordinances of the City and to perform such other legally permissible and proper functions and duties as the Governing Body of the City may from time to time assign.

b. Because the parties anticipate that the Employee will perform many of his official duties outside the normal working hours for other City employees, the Employee shall be permitted to take compensatory time off, at his discretion, during normal working hours.

Section 2. Term.

a. The term of this Agreement shall be for a period of one year commencing on September 29, 2006, and shall automatically be renewed for successive one year terms unless the City gives the Employee written notice of its intent not to renew this Agreement at least thirty (30) days prior to the end of the present term or any renewal term hereof.

b. Subject to the provisions of section 3 hereof, nothing in this Agreement shall be construed to prevent, limit, or otherwise interfere with the right of the Governing Body of the City to non-renew the employment of the Employee at the expiration of the term or to terminate the services of the Employee at any time or with the right of the Employee to resign from his position as City Manager of the City at any time.

c. The Employee shall be in the exclusive employ of the City, and shall neither accept other employment nor become employed by any other employer during the term of this Agreement or any renewal term thereof.

Section 3. Termination and Severance Pay.

a. In the event the City terminates this Agreement, or non-renews the employment of the Employee in his capacity as City Manager, under Section 3c, below, or if the Employee is permitted to declare a termination pursuant to Section c, below, notwithstanding the Employee’s willingness to continue performing such services for the City, the City shall pay to the Employee all contractual obligations remaining due under this Agreement, if any, and in addition thereto, shall pay as severance pay a lump sum cash payment equal to the total of not less than three nor more than nine months’ aggregate salary, as provided in Section 6d hereof, together with all accrued vacation, and all other benefits available to employees and shall, for the same period that Employee receives severance pay following such termination, continue to underwrite the Employee’s participation in the City’s health care plan to the same extent as prevailed immediately prior to such termination; provided, that should the Employee be terminated after being convicted of any felony, any crime involving personal gain or any crime of moral turpitude, the City shall have no obligation to pay any such severance pay.

b. Except as otherwise agreed by the parties, the Employee shall give the City six weeks’ written notice of any voluntary resignation from employment hereunder. In the event of such voluntary resignation and subject to Section 3c below, the provisions of Section 3a above shall not apply and this Agreement shall expire on the effective date of such resignation.

c. If at any time during the term of this Agreement:

1) A majority of the Governing Body votes to terminate Employee at a duly authorized public meeting for any reason other than conviction of any felony, and crime involving personal gain or any crime of moral turpitude, when Employee is ready, willing, and able to perform the duties of City Manager;

2) If the City or Legislature acts to amend any provision of the State Statutes, City Charter, or City Code, pertaining to the role, powers, duties, authority, and responsibilities of the office of City Manager that substantially changes the role, powers, duties, authority, and responsibility of said position, Employee shall have the right to declare such amendments to constitute termination;

3) If the City reduces base salary, compensation, or other financial benefits applicable to Employee, unless such reduction applies in no greater percentage than the average reduction of all department heads and fulltime employees of the City, Employee shall have the right to declare that such reduction constitutes termination;

4) If Employee resigns following an offer to accept resignation, whether formally or informally, by a commissioner as a representative of the majority of the Governing Body that he resign at any time Employee is ready, willing, and able to perform the duties of City Manager, then Employee may declare a termination as of the date of such resignation;

5) If the City suspends Employee with or without pay for a period of ten (10) or more business days during any calendar year, when Employee is ready, willing, and able to perform the duties of City Manager, then Employee shall have the right to declare that such suspension constitutes termination, unless such suspension occurs as the result of a criminal investigation of Employee or other internal investigation of allegations of fiscal impropriety;

6) If the City breaches any provisions of this Agreement and has not remedied said breach within ten (10) business days of written notice from Employee, then Employee may declare a termination as of the date of such notice;

The Employee may at his election deem his employment hereunder to have been terminated within the meaning of subsection “a” of this section and, upon receipt of notice of such election, the City shall forthwith make the payments and provide the benefits required under such subsection “a”.

Section 4. Salary.

The City shall pay to Employee during the initial term of this Agreement as compensation for his services hereunder an annual base salary of $125,000 payable in installments at such intervals as other City employees are paid. Any increase in the Employee’s base salary shall occur only upon a majority vote of the Governing Body of the City during the initial or any renewal term of this Agreement.

Section 5. Other monetary benefits.

a. Vehicle allowance. The City shall provide the Employee with a vehicle allowance of $5,000 per year for official use of his private vehicle within Douglas County payable in installments on a pro-rata basis at such intervals as other City employees are paid. The Employee shall, in addition, be reimbursed for use of such vehicle for official travel to destinations outside Douglas County at the rate paid to other City employees for similar travel. All operating, maintenance, and other expenses incurred by the Employee in connection with his official duties shall be borne by the Employee.

b. Deferred compensation. The City shall, in addition to other compensation provided for in this Agreement, contribute $15,000.00 per year payable in installments on a pro-rata basis on behalf of the employee to a deferred compensation program of the Employee’s choice. Any amount over the $15,000.00 that can be legally deferred that the Employee chooses will be deducted from the base salary of the Employee.

c. The City shall pay the full amount of the health insurance premium for the Employee and the same portion of the family health insurance premium as all other City employees.

d. The City shall pay the sum of $1,000.00 during each year of this Agreement, and all renewal periods thereof, toward the purchase of a policy of insurance on the Employee’s life, with the beneficiary(ies) thereof to be designated by the Employee. This payment shall be in addition to all other premiums paid by the City for insurance on the life of the employee. The insurer under this policy shall be selected by the Employee.

e. The City shall pay the sum of $1,000.00 during each year of this Agreement, and all renewal periods thereof, toward the purchase of a policy of disability insurance on behalf of the Employee. This payment shall be in addition to all other premiums paid by the City for disability insurance for the benefit of the Employee. The insurer under this policy shall be selected by the Employee.

Section 6. Leaves and other benefits.

a. The Employee shall have credited to his personal account, at the same rate or rates applicable to such other employees, all leaves afforded to management employees of the City. The Employee may accrue up to 360 hours of vacation leave.

b. Group insurance and all other benefits provided to other employees of the City shall be made available to the Employee on like terms and conditions.

c. In addition to any deferred compensation payment made pursuant to section 5(b) of this Agreement, the Employee may elect to allocate any part of his total compensation to a retirement, deferred compensation or similar program of his choice. The Employee will also receive any benefits that other employees receive including but not limited to worker’s compensation, unemployment insurance, KPERS, personal/family leave, and FICA.

d. During the term of this Agreement the Employee shall be entitled to severance pay equal to three months of his base salary, together with all other contractual obligations afforded the Employee by this Agreement. For each one (1) year renewal of this Agreement the Employee shall earn one (1) additional month of severance pay up to and including a total of six (6) additional months, with the maximum available severance pay being nine (9) months during the sixth year of this Agreement and thereafter. The Employees entitlement to severance pay shall be governed by the terms and conditions set forth in paragraph 3 of this Agreement.

Section 7. Professional Development.

a. The City shall budget for and pay the professional dues and subscriptions incurred by the Employee for his participation in such national, regional, state, and local associations or organizations as he deems necessary or desirable for his continued professional group and advancement and for the good of the City; provided, that with respect to local associations and organizations, the City’s obligation shall be for payment for one civic club of Employees choice.

b. The City shall budget for and pay the travel, registration and subsistence expenses incurred by the Employee in the course of his attendance at or participation in such meetings, conferences, or other functions as he deems necessary to adequately discharge official and ceremonial functions on behalf of the City, including but not limited to the annual conferences or conventions of the International City Management Association, the National League of Cities, the League of Kansas Municipalities and any such national, regional, state, and local groups and committees thereof upon which the Employee serves as a member.

c. The City shall budget and pay for travel and subsistence expenses incurred by the Employee for short courses, seminars, and institutes which he deems necessary for his professional development and for the good of the City.

Section 8. Other terms and conditions of employment.

a. In addition to benefits specifically enumerated in this Agreement, all provisions of the City Code and other rules and regulations of the City relating to vacation and sick leave, retirement and pension system contributions, holidays and other benefits and working conditions, as they now exist or may hereafter be amended, shall apply to the Employee in the same way as to other management employees of the City.

b. The City, in consultation with the Employee, may fix any such other terms and conditions of employment relating to the performance of the Employee as it deems appropriate from time to time; provided, that such terms and conditions are not inconsistent with or in conflict with the express provisions of this Agreement, the City charter or any other law or regulation. No such additional terms or conditions shall be effective unless first reduced to writing and mutually agreed to and signed by the Employee and the City.

Section 9. Risk allocation.

a. The parties acknowledge the applicability of the Kansas Tort Claims Act, K.S.A. 75-6101, et seq. (the “KTCA”), to the Employee. The Employee shall be afforded all of the rights and protections afforded public employees generally pursuant to the KTCA, including but not limited to those rights and protections relating to alleged violations of state or federal civil rights laws. The Employee may be afforded such additional rights and protections with respect to civil actions to which he is made a party, as the City may from time to time deem appropriate.

b. The Employee shall keep all personal vehicles used for official business in good cosmetic and operating condition, and shall maintain continuously in force with respect to all such vehicles a policy of liability insurance having a limit of at least $500,000 per occurrence for bodily injury and $50,000 per occurrence for property damage. The Employee shall provide the City’s Risk Management office with appropriate proof of compliance with the insurance requirements of this section, with such proof of compliance to be so furnished upon the renewal date of such policy or upon the date a new policy shall be issued.

Section 10. Performance Evaluation.

a. The Governing Body of the City shall provide such review and consultation with the Employee as it determines necessary to ensure adequate communication and direction on performance of the Employee, however not less than annually.

b. In implementing the provisions of this section, the parties agree to abide by all applicable law.

EMPLOYMENT AGREEMENT