Pay Raise Comes on Heels of City Manager Seeking and Losing Bid For Montgomery, Ohio Job
Raise Retroactive to Time Period Carroll Was Trying to Leave Loveland
Loveland, Ohio - On May 22, two week after Loveland City Manager Thomas Carroll found out he did not get the new job he applied for with the City of Montgomery, City Council put in motion a pay raise for him. Council is expected to vote on the new compensation package at their next meeting, June 12.
In announcing to council that he did not get the Montgomery job, Carroll told them in an e-mail with the subject line, Staying in Loveland, "While my ego wishes I had had an offer, my heart is quite relieved to not have to make a choice."
In late March when Carroll told council he was among four finalist for the Montgomery job he said, "In my cover letter, I communicated to the Montgomery City Council that this is the only position I have applied for in six years as City Manager and it is the only position in the only community I would consider leaving Loveland to accept."
This LOVELAND MAGAZINE HD VIDEO was taken at the council meeting of April 10 when City Council voted to place an increase of the City income tax on this Fall's ballot. In this video, Carroll talked about the deteriorating morale and anxiety of city staff, including himself, of working within a framework of financial instability. Citing mounting budget deficits, Carroll recommended the income tax hike and encouraged council to make the possible tax hike permanent. He was successful at both.
Carroll currently enjoys an annual base salary of $111,225. The increase Carroll is expected to receive will be retroactive to the beginning of the year. He is being offered a 4% wage increase, and will be eligible for a 1% lump sum payment equal to one percent of his 2012 gross earnings if he remains employed through December 16, 2012. He will also receive a monthly car allowance of $300.00 plus mileage.
Below is the employment agreement Carroll has been offered:
AMENDED EMPLOYMENT AGREEMENT
This Amended Agreement made and entered into this _____ day of _________, 2012 by and between the City of Loveland, Ohio, a municipal corporation hereinafter referred to as "Employer," and Thomas M. Carroll, hereinafter referred to as "Employee," both of whom understand as follows:
WHEREAS, Employer desires to continue the services of Thomas M. Carroll as Manager of the City of Loveland as provided by Article IV of the Charter of the City of Loveland; and
WHEREAS, it is the desire of the Council of the City of Loveland, hereinafter referred to as "Council," to provide certain benefits, establish certain conditions and expectations of employment and to set working conditions of said Employee.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:
SECTION 1. DUTIES
Employer hereby agrees to employ Thomas M. Carroll as Manager of the City to perform the functions and duties specified in said Article IV, Section 4.02 of the Charter of the City of Loveland, and to perform other legally permissible and proper duties and functions the Council shall from time to time assign.
SECTION 2. TERM
Employee shall serve an indefinite term subject to Council's pleasure;
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right
of the Council to terminate the services of Employee at any time, subject to the provisions set forth in Article IV, Section 4.04 of the Charter and Section 3 of this Agreement;
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 to notice to the City Council of a minimum of 60 days.
SECTION 3. SUSPENSION, TERMINATION AND SEVERANCE PAY
a. The procedure for removal of the Employee shall be as outlined in Section 4.04 of the City Charter. If removal for other than cause, "cause" being defined as malfeasance, misfeasance or nonfeasance or the conviction of a crime of moral turpitude, takes place during the 2012 year, the Employee will be paid ten (10) months severance pay; and if removal takes place in 2013 11 months severance pay; and if removal takes place in 2014 or thereafter 12 months severance pay.
b. In the event the Employer at any time during the term of this Agreement reduces the salary or other financial benefits of Employee in a greater percentage than an applicable across-the-board reduction for all non-unionized employees of the Employer, or in the event Employer refuses, following written notice, to comply with any other provisions benefiting Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by a majority of Council Members that he resign, then Employee may at his option, be deemed to be removed for other than cause at the date of such reduction or such refusal to comply. The Employee shall be entitled to the severance pay set out in Section 3a under the schedule articulated in Section 3c.
c. In the event the Employer terminates Employee for other than cause entitling Employee to Severance Pay pursuant to Section 3(a) of this Agreement, Employer shall pay the severance pay by continuing to pay Employee his regular compensation and Employee shall receive all benefits that he is entitled to receive as an Employee, as if employed, for a six month period. Employee shall not be required to perform his duties as City Manager during such time and will not report to work at the City of Loveland except as expressly requested by the next City Manager or Mayor or City Council. Following the end of the six month period, Employer shall pay Employee any remaining Severance Pay in a lump sum payment. Nothing herein shall limit Employee’s rights to continue health insurance payments at the end of the six month period under COBRA.
SECTION 4. SALARY
a. Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $111,225 effective the 1st day of January, 2012 payable in installments at the same time as other employees of the Employer are paid. This represents a 4% wage increase over Employee’s wages which equal the cumulative 4% wage increase other employees in the City of Loveland received between 2010-2012 during which time the Employee received no wage increase.
b. Employee shall be eligible to receive a 1% lump sum payment under the same terms and conditions of Ordinance 2011-81, which Ordinance provides a one-time, lump-sum payment equal to one percent (1%) of non-union employees’ 2012 gross earnings. Said lump- sum payment will be awarded on or before December 23, 2012 if Employee is in an active, continuous employment status from January 1 to December 16, 2012 and receives a satisfactory performance evaluation. Employer may increase said base salary and/or other benefits of Employee in such amounts and to such extent as the Council may determine is desirable on the basis of an annual review of said Employee made each year.
SECTION 5. PERFORMANCE EVALUATION
a. The Employer shall evaluate the performance of the Employee annually. Said evaluation shall be in accordance with specific criteria developed jointly by Employer and Employee. Said criteria may be added to or deleted from as the Council may from time to time determine in consultation with the Employee. Further, the Mayor, or the Mayor's designee, shall
provide the Employee with a summary statement of the findings of the Council and provide adequate opportunity for the Employee to discuss his evaluation with the Council.
b. Annually the Council and Employee shall define such goals and performance objectives that they determine necessary for proper operation of the City and attainment of the Council's policy objectives and shall further establish a relative priority among the various goals and objectives, said goals and objectives to be reduced to writing. Such goals and objectives shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided.
SECTION 6. HOUR OF WORK
It is recognized that Employee must devote a great deal of time outside the normal office hours to business of the Employer, and to that end, Employee will be allowed to take reasonable flex time off as he shall deem appropriate during said normal office hours, providing that City's business affairs do not suffer, and further providing that such flex time shall not accumulate to a balance of more than ten (10) working days annually.
SECTION 7. AUTOMOBILE
Employee's duties are such that it is a requisite that he has an automobile available for City business at all time. The City will pay a monthly car allowance of $300.00 plus mileage for business trips outside Hamilton, Clermont and Warren Counties at the rate then in effect set by the Internal Revenue Service.
Employee shall carry liability insurance on his automobile and shall provide the City proof of insurance.
SECTION 8. VACATION AND SICK LEAVE
Employee shall accrue, and have credited to his personal account, sick leave at the same rate as other employees and be entitled to vacation of three (3) weeks per year beginning with calendar year 2006 and three (3) weeks for each year thereafter or at such higher rate as accrues to other employees of the Employer.
SECTION 9. HEALTH AND LIFE INSURANCE
a. Employer agrees to put into force and to make required premium payments on behalf of Employee for insurance policies for life, accident, sickness, major medical and dependents coverage group insurance covering Employee and his dependents. Coverage shall be the same as that provided to all other non-union employees.
b. Employer agrees to purchase and to pay the premiums on a term life insurance policy equal to three times base salary. The Employee shall have the right to designate the beneficiary of the policy.
c. Employer agrees to continue to provide hospitalization, surgical and comprehensive medical insurance for Employee and his dependents and to pay the premiums thereon equal to that provided to all other employees of the Employer.
SECTION 10. RETIREMENT AND DEFERRED COMPENSATION
a. The retirement plan provided for the Employee will be that of the Ohio Public Employees Retirement System (O.P.E.R.S.). Employer agrees to pay the Employee's share of O.P.E.R.S. on behalf of Employee.
b. Employee may, at his option, designate a portion of his annual salary to be paid to a deferred compensation plan.
SECTION 11. DUES AND SUBSCRIPTIONS
Employer agrees to budget and to pay the professional dues and subscriptions of Employee necessary for his continuance and full participation in National, Regional, State and Local associates and organizations necessary and desirable for his continuing professional participation, growth and advancement, and for the good of the Employer, including the International City/County Management Association.
SECTION 12. PROFESSIONAL DEVELOPMENT
Employer hereby agrees to budget for and to pay travel and 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 functions of Employee, including the annual Conference of the International City/County Management Association.
SECTION 13. GENERAL EXPENSES
The Employer recognizes that reasonable expenses of a non-personal and job-related nature are incurred by the Employee. The Employer hereby agrees to reimburse said reasonable expenses of the Employee upon the presentation to the Director of Finance a receipt, voucher, statement or personal affidavit as to such expenses.
SECTION 14. RESIDENCE
Pursuant to Section 4.01 of the Charter, the Employee shall reside in the City of Loveland during the tenure of office.
SECTION 15. INDEMNIFICATION
As required under Ohio Revised Code 2744.07, Employer shall provide for the defense of an employee, in any state or federal court, in any civil action or proceeding to recover damages for injury, death, or loss to persons or property allegedly caused by an act or omission of the
employee in connection with a governmental or proprietary function if the act or omission occurred or is alleged to have occurred while the employee was acting in good faith and not manifestly outside the scope of his employment or official responsibilities. The duty to provide for the defense of an employee specified in this division does not apply in a civil action or proceeding that is commenced by or on behalf of Employer. Employer shall indemnify and hold harmless an employee in the amount of any judgment, other than a judgment for punitive or exemplary damages, that is obtained against the employee in a state or federal court or as a result of a law of a foreign jurisdiction and that is for damages for injury, death, or loss to persons or property caused by an act or omission in connection with a governmental or proprietary function, if at the time of the act or omission the employee was acting in good faith and within the scope of his employment or official responsibilities.
SECTION 16. GENERAL PROVISIONS
a. This text shall constitute the entire agreement between the parties and supersedes any previous agreement enter into by Employer and Employee;
b. This Agreement shall be binding upon and inure to the benefits of the heirs at law and executions of Employee;
c. This Agreement shall become effective commencing January 1, 2012 and continuing until terminated by either party as provided for herein;
d. If any provision of the Agreement is found to be unlawful or invalid, the remainder of this Agreement, or portions thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.
IN WITNESS WHEREOF, the City of Loveland has caused this Agreement to be signed and executed by its Mayor and duly attested by the Clerk of Council, and the Employee has signed and executed this Agreement, in duplicate, the day and year first above written.
APPROVED AS TO FORM:
________________________________ Franklin A. Klaine, Jr.
Solicitor, City of Loveland