Contract - Laurie Hadley - 1/8/2015 (2) EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF ROUND ROCK, TEXAS
AND
LAURIE HADLEY
FOR THE POSITION OF CITY MANAGER
THIS EMPLOYMENT AGREEMENT, hereinafter "Agreement," is made and entered into this
f31 - day of January, 2015 (the "Effective Date,") by and between the City of Round Rock,
Texas, a municipal corporation, hereinafter called "City," and Laurie Hadley, hereinafter called
"Employee," both of whom understand as follows:
WHEREAS, City desires to employ the services of Employee as City Manager, as provided by
Sec. 4.01 of the City Charter; and
WHEREAS, it is the desire of the City's governing body, hereinafter called "City Council," to
provide for the compensation and other terms and conditions of Employee's employment; and
WHEREAS, Employee desires to accept employment by the City on the terms indicated;
NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties
agree as follows:
Section 1: Duties
The City hereby agrees to employ Employee, and Employee hereby accepts employment, as
City Manager, to perform the functions and duties specified in said Sec. 4.01 of the City Charter
and applicable provisions of the City Code and to perform other legally permissible and proper
duties and functions as the City Council shall from time to time assign.
Section 2: Residency
The employee shall establish her principal physical residence in the City, and shall have her
principal physical residence in the City continuously during the term of her employment as City
Manager.
Section 3: Term
This Agreement commences on the Effective Date and shall continue in effect until terminated
by City or Employee in accordance with Section 13. Employee shall begin her employment on
the Effective Date, at which time her salary and other benefits shall begin to accrue. Nothing
contained in this Agreement shall change or alter the fact that Employee serves at the will of the
City Council.
Section 4: Best Efforts
Employee agrees to devote her best efforts, energies, and skill to the discharge of the duties
and responsibilities attributable to her position, and to this end, she will devote her full time and
attention exclusively to the business and affairs of the City. Employee agrees that she may not
derive any personal advantage or gain, either directly or indirectly, with respect to any business
transaction in which the City engages, and that she will promptly disclose in writing to the City
Council all facts that are material to any such potential profit or gain.
Section 5: Salary and Other Benefits
All compensation shall be payable in installments at the same time as other employees of the
City unless otherwise noted. The City agrees to pay Employee for her services rendered
pursuant hereto:
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326996
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A. An initial base salary of$185,000.00 per year.
B. A car allowance of$500 per month.
C. Additional deferred compensation equal to $5,200 annually will be paid on the Employee's
behalf to the City's deferred compensation plan provider, allocated equally on a pay period
basis.
D. The City will pay the insurance premiums for Employee's medical and dental insurance for
the coverage of her and her family at the City's higher plan, if more than one plan is offered
to employees.
E. The City will pay for Employee's portion of the contribution (up to 7% of base salary) into the
Texas Municipal Retirement System.
F. The City Council may increase the salary of the Employee from time to time, at its discretion.
Section 6: Performance Evaluation
A. The City Council shall review and evaluate the performance of the Employee at such times
as are determined appropriate by the City Council. Such review and evaluation shall be in
accordance with specific criteria developed jointly by the City and Employee. Said criteria
may be added to or deleted from as the City Council may from time to time determine, in
consultation with the Employee.
B. The City Council shall define such goals and performance objectives that it determines
necessary for the proper operation of the City and the attainment of the City Council's policy
objectives.
C. Merit consideration will be provided if the City Council so indicates. Such salary increases, if
given, will be based upon level of performance during each year of employment, while also
considering budgetary constraints of the City.
Section 7: Vacation, Sick, and Military Leave
A. Employee shall accrue and have credited to her personal account, vacation and sick leave
at the highest accrual rate provided to employees of the City.
B. Employee shall be entitled to military leave pursuant to Federal or State law and City
policies.
Section 8: Employee Benefits
The City shall provide for Employee's participation in the City of Round Rock retirement plan
through the Texas Municipal Retirement System in a manner consistent with all other
employees of the City, unless otherwise provided in this Agreement. The City agrees to provide
employee benefits for medical, dental, life insurance, and disability in accordance with normal
City policy for general employees unless otherwise provided in this Agreement.
Section 9: Outside Activities
Employee shall not spend more than 10 hours per week in teaching, consulting or other non
City connected business without the prior approval of the City Council.
Section 10: Dues and Subscriptions
The City agrees to budget and to pay for professional dues and subscriptions of Employee
necessary for her continuation and full participation in national, regional, state, and local
associations and organizations necessary and desirable for her continued professional
participation, growth, and advancement, and for the good of the City. The City shall also pay for
the dues for Employee to join and become a member of a local civic organization.
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Section 11: Professional Development
A. The City agrees to budget for and to pay for travel and subsistence expenses of Employee
for professional and official travel, meetings, and occasions adequate to continue
professional development of Employee and to adequately pursue necessary or official
functions for the City, including but not limited to the Texas Municipal League and such
other national, regional, state, and local government groups and committees of which the
Employee serves as a member. Participation in said professional development activities
shall be considered a part of the Employee's work related duties and Employee shall not be
required to use accrued leave for such participation.
B. The City also agrees to budget for and to pay for travel and subsistence expenses of
Employee for short courses, institutes, and seminars that are necessary for her professional
development and for the good of the City.
Section 12: Indemnification
The City shall provide for indemnification and defense of the Employee in accordance with the
provisions found in the Round Rock City Code. The City shall bear the full cost of any fidelity or
other bonds or other insurance required of the Employee under law or ordinance by virtue of her
employment.
Section 13: Termination
A. Termination without Cause: The City may terminate this Agreement at any time without
cause. For the purpose of this Agreement, termination shall occur when:
1. The majority of the City Council votes to terminate the Employee at a duly authorized
public meeting;
2. The City reduces the base salary, compensation or any other financial benefit of the
Employee, unless it is applied in no greater percentage than the average reduction of all
department heads;
B. Termination for Cause: The City may terminate the Employee for cause. Such termination
shall require the majority vote of the City Council and shall be preceded by notice to
Employee. For purposes of this Agreement, "cause" shall include, without limitation, the
following:
1. Misconduct in connection with the performance of any of Employee's duties, including,
without limitation, misappropriation of funds or property of the City, securing or
attempting to secure any personal profit or commercial advantage in connection with any
transaction entered into by the City, any falsification or misrepresentation of fact, or any
violation of law or regulation to which the City is subject;
2. Conviction of a felony offense, or of a misdemeanor involving moral turpitude, whether
committed within or outside the scope of Employee's employment hereunder.
3. Violation of the Round Rock City Charter.
4. Acts of incompetency.
5. Neglect of duty.
6. Acts that violate the moral standards of the community.
7. Absence without leave.
C. Notice to the Employee of proposed termination: Employee shall be given written notice of
the Council's consideration of the termination of Employee and the date of a hearing to be
conducted in an executive session of the Council at least 72 hours prior to such hearing and
termination. Employee shall be given the opportunity to present evidence at the hearing in
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response to such proposed termination. Employee's failure to appear at such hearing does
not prohibit the Council from taking action to terminate Employee.
D. Resignation by Employee. In the event Employee voluntarily resigns her position with the
City during the term of this Agreement, then Employee shall give the City 30 days notice in
advance, unless the parties agree otherwise in writing.
Section 14: Severance
A. Termination without cause: In the event Employee is terminated without cause:
1. the City will pay Employee a lump sum cash payment for all base salary earned, and
earned unused vacation (the same as public employees) as of the last day of active
employment, and
2. the City will pay the Employee a lump sum cash payment equal to nine (9) months base
salary, plus an amount equal to nine (9) months cost of deferred compensation
payments, and health insurance premiums, based on said cost for the month immediately
preceding the termination. One (1) additional month of the aforesaid severance base
salary and other payments will accrue following the completion of each successive year
of employment, up to a maximum severance payment of twelve (12) months. This lump
sum cash payment is contingent upon a waiver and release of all claims against the City
in a form acceptable to the City.
B. Termination for cause: In the event Employee is terminated for cause as defined in this
document, the City shall have no obligation to pay the severance pay and severance
benefits designated in this Agreement.
C. Resignation by Employee: The City will pay Employee a lump sum cash payment for all
salary earned, and earned unused vacation (the same as public service employees) as of
the last day of active employment.
Section 15: 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:
CITY: Mayor
City of Round Rock
221 E. Main St.
Round Rock, Texas 78664
with a copy to:
Stephan L. Sheets
City Attorney
309 E. Main St.
Round Rock, Texas 78664
EMPLOYEE: Laurie Hadley
City Manager
221 E. Main St.
Round Rock, Texas 78664
Alternatively, notices required pursuant to this Agreement may be personally delivered. Notice
shall be deemed given as of the date of personal delivery.
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Section 16: General Provisions
A. This Agreement replaces and supersedes all prior agreements between parties, whether
written or oral. The text herein shall constitute the entire agreement between the parties
with respect to the subject matter hereof.
B. This Agreement shall be binding upon and inure to the benefit of heirs at law and
executors of Employee.
C. If any provision 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 WHEREOF, the City Council of Round Rock, Texas, has authorized the City's
Mayor to execute this Agreement, and the same has been duly attested to by its City Secretar Le'v1.1
and signed by the Employee, in duplicate, the day and year first written above.
CITY OF ROUND ROCK, TEXAS
OfV)
Alan McGraw, Mayor
ATTEST:
4\71/V1 ' OPVE'.
Sara White, City Secretary
EMPLOYEE:
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Laurie Hadley
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