Tuesday night, without discussion, the Manhattan City Commission renewed the City Managers contract and gave him a 3% raise.

Each year the City Commission evaluates the performance of the City Manager Ron Fehr. Tuesday they raised his salary from $88,000 to $90,640. He also is paid a total of 12% for retirement and he pays 4%.

Fehr receives $260.00 per month for a car allowance, which works out to $6,760.00 per year. The City also pays up to $1,200 per year for a $100,000 life insurance policy.

It is in the contract that the city will pay for one service organization but Fehr has not billed the city in the past. The Commission did take away part of the contract where Fehr was to receive travel pay for his family. He did not use family travel last year.

Here is the Contract:

EMPLOYMENT AGREEMENT

THIS AGREEMENT, made and entered in this 18th day of December 2001, by and between the City of Manhattan, State of Kansas, a Municipal Corporation, hereinafter referred to as "Employer", and Ronald R. Fehr, hereinafter referred to as "Employee." Employer and Employee hereby stipulate and agree as follows:

WITNESSETH:

WHEREAS, Employer and employee have previously entered into an Employment Agreement for the position of City Manager dated the 18th day of April 2000 and subsequently modified said agreement on the 19th of December 2000; and

WHEREAS, Employer and Employee desire to enter into a new Employment Agreement which replaces the Agreement set forth above; and

WHEREAS, it is the desire of the Employer to provide certain benefits, establish certain conditions of employment, standards of employment, obligations and responsibilities, and also to set forth, working conditions; and

WHEREAS, under the laws of the State of Kansas, the City Manager is responsible to the Governing Body of the City; therefore, wherever action by the Employer is necessary hereunder, such action shall be deemed to be required by the Governing Body of the City of Manhattan, Kansas.

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:

SECTION 1. DUTIES

Employer hereby agrees to employ said Ronald R. Fehr as City Manager of said Employer to perform the function and duties specified in the Manhattan City Code and Statutes of Kansas, and to perform other legally permissible and proper duties and functions as Employer shall from time to time assign. Employee hereby accepts such employment.

SECTION 2. TERM

A. The term of this Agreement shall be open-ended, with Employee serving at the pleasure of the Governing Body of the City of Manhattan.

B. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of Employer through action of the Governing Body to terminate the services of Employee at any time, subject only to the provisions set forth in Section 4.

C. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provision set forth in Section 4.

D. Employee agrees to remain in the exclusive employ of Employer during the term of this contract or any extensions thereof. Both parties acknowledge that exclusive employment shall mean that Employee shall not accept any outside employment from any source whatsoever without first obtaining written approval from Employer. Outside employment shall not be construed to include occasional teaching, writing or consulting performed on the employee’s time off.

SECTION 3. EMPLOYMENT RELATIONSHIP

The employment relationship between Employer and Employee shall be solely, governed by the provisions of this Agreement. Nothing contained within the Personnel Rules and Regulations of the Employer shall be deemed to be applicable to Employee, except where those Personnel Rules and Regulations are specifically referenced herein.

SECTION 4. TERMINATION AND SEVERANCE PAY/VOLUNTARY RESIGNATION

A. TERMINATION AND SEVERANCE PAY. Employer and Employee agree that Employee’s employment is an "employment at will." Employer and Employee further agree that Employee serves at the pleasure of the Governing Body of the City of Manhattan, Kansas, and may be terminated at any time, with or without cause, and with or without notice. If Employee’s employment is terminated without cause, Employer agrees to pay Employee a lump sum cash payment equal to six (6) months base salary, plus six (6) months of the Employer’s share of health insurance benefits, plus payment for all vacation and sick leave accrued as of the date of termination. Employer shall be entitled to withhold from said payments all amounts required to be withheld pursuant to the laws of the State of Kansas and the laws of the United States. All amounts due under the terms of this section shall be paid within thirty (30) days of the date of termination. If Employee’s employment is terminated for cause, Employer shall not be obligated to pay any compensation to Employee other than the amounts earned by Employee as of the date of termination. If Employee voluntarily resigns from employment, the benefits set forth in this subsection shall not apply. The term "cause" for the purposes of this Agreement shall be defined as:

1. The failure by Employee to comply with any of the terms or conditions of this Agreement; or

2. Employee’s conviction of a crime. The term "crime" shall not include minor traffic offenses.

B. VOLUNTARY RESIGNATION. In the event Employee voluntarily resigns from his position with Employer before the expiration of any contract term, Employee agrees to give two (2) months’ notice to Employer, unless the parties agree otherwise. Upon such voluntary resignation, Employee shall be entitled to all benefits provided to other exempt employees, pursuant to the Personnel Policy. The term "voluntary resignation" shall include any cessation of the employer/employee relationship, except where employee is terminated by action of the Governing Body.

SECTION 5. SALARY AND BENEFITS

A. Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of Ninety Thousand Six Hundred Forty and 00/100 Dollars ($90,640), payable in installments at the same time as other exempt employees of Employer are paid.

B. Employer agrees to provide an annual vacation benefit to Employee, computed pursuant to the personnel policies in effect and applicable for exempt City employees, and acknowledging his current level of service. Employer expects Employee to be diligent in the use of granted vacation days each year; however, unused vacation may carry over to the following year pursuant to the personnel policies in effect and applicable for exempt City employees.

C. Employer agrees that medical (sick) leave, holiday and similar leave periods for Employee shall be the same as for other exempt employees of Employer.

D. Employer shall grant to employee, and pay for medical, hospital, major medical, and all related health benefits allowed to exempt City employees by approved personnel policy.

E. Employer shall review and consider adjustments to, Employee’s salary at least annually. Employer may, based upon the performance of Employee, in achievement of goals and objectives, as assigned by Employer and accepted by Employee, increase Employee’s salary, with the consent of Employee.

SECTION 6. PERFORMANCE EVALUATION

Employer shall review and evaluate the performance of the Employee at least annually. Said review and evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee and in accordance with any ordinance(s) of Employer.

SECTION 7. AUTOMOBILE

Employee’s duties require travel within and outside the Manhattan City limits. For travel within the City limits and the Riley, Pottawatomie, and Geary County, Kansas region, the Employee shall receive a car allowance in the amount of Two Hundred and Sixty Dollars ($260.00) per pay period. All City required travel outside the City limits using Employee’s personal vehicle will be reimbursed at the current City rate per mile.

SECTION 8. DISABILITY, HEALTH AND LIFE INSURANCE

Employee shall receive, at the City’s expense including payment by the city of the employee’s share of such benefits, all disability, health benefits, and life insurance as provided to all exempt City of Manhattan employees as enumerated in the City Personnel Manual. Additionally, Employer shall provide up to $1,200 in annual premium for a $100,000 term life insurance policy for the benefit of the employee during the life of this contract. Employee shall be responsible for providing documentation of the expense.

SECTION 9. RETIREMENT

Employer agrees to execute all necessary agreements provided by the International City Management Association - Retirement Corporation (ICMA-RC) for Employee’s continued participation in said ICMA-RC retirement plan and, in addition to the base salary paid by Employer to Employee, Employer agrees to pay an amount equal to eight percent (8%) perannum into ICMA-RC on Employee’s behalf and to transfer ownership to succeeding employers upon Employee’s resignation or discharge.

Additionally, Employer will make such contributions in Employee’s name into the Kansas Personnel Retirement System (KPERS) as required by law.

SECTION 10. DUES AND SUBSCRIPTIONS

Employer agrees to pay for professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state and local associations and organizations, provided said expenses have been previously budgeted for. Nothing herein shall require Employer to budget for such expenses.

SECTION 11. PROFESSIONAL DEVELOPMENT

A. Employer hereby agrees to pay all pre-budgeted travel subsistence expenses of Employee for professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including, but not limited to, the Annual Conference of the International City/County Management Association, Kansas Association of City Managers, the state league of municipalities, and such other national, regional, state and local governmental groups and committees thereof which Employee or Employee serves as a member.

B. Employer also agrees to pay for all pre-budgeted travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for his professional development and for the good of the Employer.

C. Employer agrees to pay employee’s annual dues to one (1) service organization on behalf of employee.

SECTION 12. BONDING

Employer shall bear the full cost of any fidelity or other bonds required of Employee under any law or ordinance.

SECTION 13. OTHER TERMS AND CONDITIONS OF EMPLOYMENT

Employer shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions arc not inconsistent with or conflict with the provisions of this Agreement, City ordinances or any other law.

SECTION 14. NOTICES

Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:

(1) Employer: Mayor, City of Manhattan

1101 Poyntz Avenue

Manhattan, KS 66502-5497

(2) Employee: Ronald R. Fehr

Office of the City Manager - City Hall

City of Manhattan

1101 Poyntz Avenue

Manhattan, KS 66502-5497

Alternately, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.

SECTION 15. GENERAL PROVISIONS

A. The text herein shall constitute the entire Agreement between the parties.

B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of Employee.

C. This Agreement shall become effective on the eighteenth (18th) day of December 2001. All other previous Employment Agreements between the parties are hereby terminated and replaced by this agreement.

D. If any provisions, or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

IN WITNESS THEREOF, the City of Manhattan has caused this Agreement to be signed and executed in its behalf by the Mayor, and duly attested by the City Clerk, and the Employee has signed and executed this Agreement, both in duplicate, the day and year first above written.