FY2019-16 Employment Contract with Michael Powers, Borough ManagerEMPLOYMENT CONTRACT
CONTRACT NO. FY2019-16
r
THIS AGREEMENT is made and entered into this L day of January, 2019,
between the Kodiak Island Borough Assembly (hereinafter Borough) and Michael Powers,
(hereinafter Manager).
WHEREAS, Borough wishes to continue to employ the services of Michael Powers, as
Manager of the Kodiak Island Borough; and
WHEREAS, Borough and Manager desire to provide for certain procedures, benefits, and
requirements regarding the employment of Manager by Borough; and
WHEREAS, Manager wishes to accept employment as Manager of said Borough; and
NOW, THEREFORE, Borough and Manager agree to the following terms and conditions:
Section 1: Duties and Nature of Employment.
A. Borough hereby agrees to employ Manager, and Manager agrees to be employed by
Borough, in the position of Borough Manager. Manager is an at -will employee who serves at
the pleasure of the Borough Assembly. Manager, as an administrative and/or executive
employee of the legislative branch of Borough government, is entitled to all fringe benefits
provided to any other Borough administrative and/or executive employee, and, therefore,
Manager is not entitled to receive overtime compensation.
B. Manager shall perform all duties and functions assigned to Manager by law, and such other
legally permissible and proper duties and functions as the Borough Assembly shall from time
to time prescribe.
Section 2: Contract Term and Notice Requirements.
This is an at will contract spanning May 25, 2019 through May 22, 2021. At twelve months (May
22, 2020), the Assembly will decide on awarding a third -year to the contract.
Section 3: Salary and Benefits.
A. Borough agrees to pay Manager for his services, payable in installments at the same time as
other employees of the Borough, at the initial rate of One Hundred Thirty Five Thousand and
00/100 Dollars ($135,000) annually for the first year, increasing by Five Thousand and 11/100
Dollars ($5,000) each subsequent year provided Manager attains a satisfactory rating on his
annual review.
B. Manager shall accrue annual leave of thirty (30) days annually and on each anniversary date
for the life of the contract. Manager must take at least eighty (80) hours of leave annually.
Annual leave use of more than five (5) days shall be noticed to the assembly at least two (2)
Manager's Employment Contract (Final) Contract No. FY2019-16
Page 1 of 4
weeks in advance, except in an emergency. Manager may cash out a total of 160 Hours per
calendar year. Such request may be made twice per calendar year, but in no case exceed
160 hour of leave cash out except upon separation of employment.
C. Sick leave, health insurance, life insurance, disability insurance, workers' compensation
insurance, jury duty, holidays, and contributions to the Alaska Public Employees Retirement
System will be'provided to Manager in accordance with the Kodiak Island Borough Personnel
Manual, as provided for all other employees except that the Borough shall pay 1000/o of the
cost of health insurance for Manager and his dependents. Borough will pay for annual physical
if not covered by health insurance.
D. Except to the extent specifically referenced to in this Agreement, all provisions of the Kodiak
Island Borough Personnel Manual are applicable to Manager's personnel status as a Borough
employee.
E. Borough will provide an automobile for Manager's business use only, including commuting
to/from work. Borough will provide gas, oil, maintenance, and liability insurance. Vehicle will
be replaced as needed.
F. Manager shall receive a full performance review annually on or prior to the anniversary date
(May 23). In addition, a short -form midterm review shall be conducted approximately six
months after each annual review.
Section 4: Separation of Employment and Severance Pay.
A. The Borough Assembly may terminate Manager at any time, for any reason or for no reason,
by delivering to Manager written notice of termination.
1. Termination for other than good cause:
a. In the event of termination other than for good cause, Borough shall pay to Manager
a severance pay in an amount equal to 6 months salary and benefits. Manager shall
also be compensated for all accrued annual leave.
2. Termination for good cause:
a. In the event Manager is terminated for good cause, Borough shall not pay severance
pay to Manager; however, Manager shall be compensated for all accrued annual
leave.
B. Manager may voluntarily resign his employment as Borough Manager at any time, for any
reason or for no reason, by delivering to the Borough Assembly notice of resignation at least
sixty (60) days prior to the effective date of resignation, unless the parties agree otherwise. If
Manager voluntarily resigns, Borough will not be obligated to pay severance pay to Manager.
C. For the purpose of this section, the term "good cause" shall mean:
1. A willful breach, disregard, or gross neglect of the duties assigned to the Manager bylaw
or by the Borough Assembly, or incompetence, which is defined as the inability or the
intentional failure to perform the Manager's duties in a satisfactory manner. However,
termination for incompetence will require written notice and reasonable time allowed,
Manager's Employment Contract (Final) Contract No. FY2019-16
Page 2 of 4
along with appropriate resources provided, to affect a remedy.
2. Any conduct of Manager bringing public embarrassment or ridicule to the Borough.
3. Any conduct of Manager involving a conviction for any act of moral turpitude or illegality
defined as a felony or a misdemeanor that tends to reflect dishonesty.
Section 5: Conditions of Employment.
Manager shall receive the salary and benefits, and shall work under the terms and conditions,
specified in this document during the three year term of this contract.
Section 6: Dues and Subscriptions.
A. Borough hereby agrees pay for membership to International City/Country Management
Association (ICMA), the Alaska Municipal Managers Association (AMMA) and the Alaska
Municipal League (AML). Borough will pay for dues and all expenses for one (1) civic group
upon mutual agreement of said civic group.
Section 7: Professional Development.
A. Borough will budget and pay for attendance at the ICMA annual conference and the AML
annual conference including travel and hotel costs. Reimbursement for normal expenses
associated with attendance (meals).
B. Manager, while traveling out of town on official business, will be reimbursed for reasonable
expenses by Borough. Borough will provide for and/or reimburse Manager for transportation
costs and other costs incidental to such travel, and of a normal and necessary nature. Such
expenses would include: hotel rooms, auto rental, taxi fare, and telephone. This section
applies to short courses, institutes, and seminars that are necessary for his professional
development and for the good of Borough, as budgeted by the Borough Assembly along with
all other Borough related travel.
Section 8: Indemnification.
A. Borough agrees to defend, save and hold harmless, and indemnify Manager against any tort
claim, professional liability claim or demand or other legal action, whether groundless or
otherwise, arising out of an alleged act or omission by Manager arising out of the course and
scope of his employment; provided, however, that the aforementioned obligation of Borough
shall not extend to claims based on the following acts of misconduct:
1. A willful breach, disregard, or gross neglect of duties requested of Manager by the
Borough Assembly formally communicated to Manager or required to be performed by
Manager hereunder or under the ordinances of the Kodiak Island Borough and the laws
of the United States of America and the State of Alaska;
2. Any conduct of Manager bringing public embarrassment or ridicule to Borough; or
3. Any conduct of Manager involving a conviction for any act of moral turpitude or illegality
defined as any felony involving moral turpitude or a crime; which reflects dishonesty.
B. Borough will defend, compromise, or settle any such claim or suit and pay the amount of
settlement or judgment rendered thereon.
Manager's Employment Contract (Final) Contract No. FY2019-16
Page 3 of 4
Section 9: General Provisions.
A. This Agreement 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 Manager.
C. This Agreement shall be in effect for the term agreed upon by the parties and listed above or
until Manager resigns or is terminated under the provisions of Section 4, above.
D. If any provision, or any portion thereof, contained in this agreement is held to be
unconstitutional, invalid, or unenforceable, the remainder of this agreement or any portion
thereof, shall be deemed severable, shall not be affected, and shall remain in full force and
effect.
Section 10: No Reduction of Benefits; Good Faith and Fair Dealing.
A. Borough shall not at any time during the term of employment with this agreement reduce the
salary, compensation, or other financial benefits to Manager.
B. All contract provisions shall be subject to good faith and fair dealing.
IN WIT S WHEREOF, the parties have executed this Agreement effective the
Eo -
day of Y, 019
KODIA ISLAND BOROUGH MANAGER
Name, Title 5I AiU Name
Date:
ATTEST:
Borough Clerk
-OSPj,
Y "�1
Manager's Employment Contract (Final) Contract No. FY2019-16
Page 4 of 4