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Possible Factors to Consider Negotiating Employment Agreements

Missouri City/County Management Association (MCMA)

Thursday, May 7, 2015

Art Davis, President

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Discussion Outline

I. Questions to Ponder

II. Random Review of Terms

III. A Dialogue Based on Your Questions

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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)

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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?

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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 1st 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)

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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?)

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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

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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

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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

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Questions & Discussion

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It has been a privilege to speak with you today!

Art Davis, PresidentArt Davis Group