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as the next step, develop model ordinances that would show how some of these issues might be <br />addressed at the local level. <br /> <br /> III. APPROVAL: EMPLOYMENT AGREEMENT WITH CITY MANAGER <br /> <br />Mr. Farr introduced the topic, noting that there were some areas of disagreement among <br />councilors and the City Manager regarding the employment contract attached to the agenda. <br /> <br />In response to a question from Ms. Taylor, Mr. Farr said that paying vacation accrual hours in <br />cash was a common way of handling accrued vacation. Ms. Taylor said she believed the total <br />remuneration package should be less, given the City's financial state. <br /> <br />Ms. Swanson Gribskov asked for clarification of the "step" and cost of living (COL) increases. <br />Mr. Farr explained that the "step" increases are based on merit and are not exclusive to the <br />manager's position. City Manager Jim Johnson explained that prior placing the manager on a <br />salary range, there was a salary negotiated, with increases negotiated at the time of the <br />performance evaluation. He added that the council may wish to handle the position differently <br />than the rest of the employees. Mr. Johnson said the COL was also consistent with how other <br />employees are treated. Ms. Swanson Gribskov said she was a surprised with the section (4.3) <br />making the salary retroactive to April 13, 1998, when Mr. Johnson was appointed as City <br />Manager Pro Tern. She also asked for clarification on the evaluation periods in Section 5. <br /> <br />Mr. Farr defended the retroactivity, saying the manager has been doing the job since he was <br />appointed as pro tern. Mr. Johnson clarified that the first evaluation period (six months) would <br />begin effective July 29, 1998, with annual evaluations occurring on that anniversary date. <br /> <br />Mr. Meisner expressed concern with "step creep" in general. He received confirmation that <br />vacation time was awarded based on hours worked per pay period. Mr. Meisner asked for an <br />explanation of the transportation allowance. Mr. Johnson said he drives his personal vehicle on <br />City business at his own expense and the allowance is meant to reimburse him, although he <br />pays taxes on that amount. Mr. Meisner said that he was uncomfortable with the allowance given <br />the council's goal on transportation, adding that it was a policy that the council may wish to <br />reexamine. He said he was pleased with the section on "subsequent employment" but wondered <br />if the fixed amount was intended. Mr. Johnson clarified that it should read "$10,000 or more." <br />Mr. Meisner also expressed concern with the retroactive pay clause, but added that it was not a <br />major objection. <br /> <br />Mr. Tollenaar said he was pleased that a specific term of years for the appointment was <br />excluded, meaning that Mr. Johnson's appointment was at the council's pleasure. He said the <br />salary range was justified and comparable to similar positions and the manager's experience. <br />Mr. Tollenaar said he was also concerned with the retroactive pay, adding that he was also <br />concerned about the City picking up the six percent Public Employees Retirement System <br />(PERS) amount in the case of a six months- termination settlement. Mr. Johnson said PERS <br />payments are based on the amount paid to employees so the six percent would be applied to that <br />six months-salary payment. Payroll Supervisor Terry Grondona added that State law required the <br />six percent payment on salary, including severance pay. <br /> <br />Mr. Johnson made it clear that he really wants the council to use the contract, specifically the <br />termination clause if "things are not going well between the manager and the council," i.e., he <br /> <br />MINUTES--Eugene City Council September 14, 1998 Page 3 <br />5:30 p.m. <br /> <br /> <br />