Possible Factors to Consider Negotiating Employment Agreements Missouri City/County Management Association (MCMA) Thursday, May 7, 2015 Art Davis, President 1

Discussion Outline I.Questions to Ponder II.Random Review of Terms III. A Dialogue Based on Your Question s 2

Questions to Ponder Do you have a strategy for negotiating a contract? Have you talked to others that have been through this? (Always a good thing to learn about other experiences!) Think about having an attorney that represents your interest review the final contract before signing. (It will cost a little money out of pocket – but should send a positive message to your future employer) 3

Questions to Ponder (cont. 2) Are you working without a contract? Do you want to have one at some point? How will you approach the Gov. Body? Are you thinking about retiring? If you have a contract, be careful how you make your announcement. Have you thought about timing issues for a search for a new manager and how you might be asked to assist? Do you have the flexibility to stay on until a new person starts? What about over-lap with a new manager – is this a good idea? 4

Questions to Ponder (cont. 3) If you are the assistant & the Gov. Body wants to appoint you --- at a minimum ---insist on being the highest paid person in your org! (Know your city’s current compensation schedule and don’t feel pressured to accept the 1 st offer sent your way) If starting new, always insist on having an employment agreement, even if it is just the basics. (The political landscape can change very quickly) 5

Random Review of Terms (ICMA Model Agreement – 2012) Term of Contract (Evergreen vs. specific time for renewal requiring Governing Body update) Duties and Authority Compensation (Wrong approach by City or candidate can sour relations quickly) Health, Disability & Life Insurance Benefits Vacation, Sick, & Military Leave (Credit in recognition of yrs. of service? Same as all employees?) 6

Random Review of Terms Automobile (Most candidates appear to prefer a vehicle allowance – many smaller cities prefer providing a vehicle) Retirement (Does prospective employer have practice of contributing extra $ toward retirement? An incentive for recruitment / retention) General Business Expenses (Important to include language that “employer agrees to pay for professional dues and to attend professional development conferences (MCMA/ICMA) on an annual basis” --- smaller cities with funding constraints should at least include references to MML and MCMA conferences) Termination 7

Random Review of Terms Severance (Most smaller cities provide 3-6 mos., occasionally 12 mos. based on volatility – longer than 1 yr. rare) Resignation (Are you required to provide notice? Cities are starting to ask for a 30 to 60 day notice provision) Performance Evaluation (Required annually by date?) Hours of Work Ethical Commitments 8

Random Review of Terms Outside Activities Moving and Relocation Expenses (customary; most cities provide contingent on 3 quotes – reimburse with receipts; if providing an amount with tracking expenses – it is taxable) Home Sale & Purchase Expenses Indemnification Bonding Other Terms & Conditions of Employment 9

Questions & Discussion 10

It has been a privilege to speak with you today! Art Davis, President Art Davis Group 11