EMPLOYMENT AGREEMENT DATE: PARTIES: (City) and (Employee). RECITALS: A.) City is a municipal corporation of the State of Oregon and, as such, is subject to the provisions of the City Charter. Sections of the Charter authorize the City Manager of the City to appoint various officers and employees and to remove such officers and employees. B.) City has offered and Employee has accepted employment as . C.) The appropriation of funds to pay City employees, including Employee, are subject to the Oregon Local Budget Law and actions of the City Council. In years subsequent to the first year of employment under this Agreement, Employee's compensation and fringe benefits will be within the scope of those actions and the budget process. D.) The parties desire to enter into a written employment agreement which creates a professional and businesslike relationship, which serves as a basis for effective communication, and which avoids any misunderstanding between the parties as to the terms of the employment relationship. THE PARTIES AGREE: SECTION ONE APPOINTMENT, REMOVAL, AND SUPERVISION The City Manager of City has the sole authority to appoint, remove, and supervise Employee. Employee serves at the pleasure of the City Manager and may be removed by the City Manager at any time without cause. SECTION TWO DUTIES Employee is employed as City's Director to perform the functions and duties specified in the job description for the position and to perform such other duties as the City Manager may assign from time to time. SECTION THREE TERM OF EMPLOYMENT 1 - EMPLOYMENT AGREEMENT Employee was employed commencing on, and such employment shall continue until Employee resigns, retires, or until termination by the City Manager. SECTION FOUR TERMINATION/SEVERANCE PAY 4.1 If Employee is terminated by the City Manager while willing and able to perform the duties of the position, or if Employee submits a resignation at the request of the City Manager, then City shall pay Employee a lump sum cash payment as severance pay. The severance pay shall be equal to one week's aggregate salary for every year of continuous service to the City, not to exceed a maximum of twelve (12) weeks. "Aggregate salary" shall mean Employee's gross salary, plus employee benefit contributions, less deductions actually made from the gross salary. 4.2 In the event Employee resigns voluntarily, City shall have no duty to pay the severance award described in Section 4.1. 4.3 In the event the City Manager intends to discharge employee for unwillingness to perform the duties required, or for gross neglect or misconduct in such duties, then, at Employee's request, the City Manager shall inform Employee in writing of the reasons for such discharge and provide an opportunity for Employee to respond. Following this response, and after consideration of the response, the City Manager may withdraw the charges, proceed with other appropriate disciplinary actions, or discharge Employee. Employee shall be entitled to a written statement of the findings of the City Manager in the event of discipline or discharge. In the event of discharge, City shall have no duty to pay the severance award described in Section 4.1. SECTION FIVE COMPENSATION City shall pay Employee an annual base salary within a salary range established for the position by Resolution of the City Council. This salary shall be payable in installments on specified paydays as established by the City. The City Manager shall adjust Employee's salary within the salary range established annually by the City Council, based upon evaluation of Employee's performance as provided in Section 6. 2 - EMPLOYMENT AGREEMENT SECTION SIX PERFORMANCE EVALUATION Employee shall be evaluated annually by the City Manager. This review and evaluation shall be in accordance with specific criteria used to evaluate the performance of management employees of the City. SECTION SEVEN HOURS OF WORK Employee will devote services to the City during normal office hours and will be required to devote additional time to the City's business from time to time. Subject to the City Manager's approval, time-off may be taken by the Employee in recognition of longer than normal working schedules. SECTION EIGHT OUTSIDE ACTIVITIES Subject to the approval of the City Manager, the Employee may spend a reasonable amount of time teaching or consulting outside of the City organization. SECTION NINE AUTOMOBILE Employee shall have the use of an automobile provided by City to be used for City-related business only, at City's expense. If an automobile is not assigned to Employee, an automobile allowance will be paid to Employee by the City in an amount comparable to the value of using a City-assigned automobile. SECTION TEN MOVING EXPENSES If Employee is required to move to accept the employment described in this Agreement, subject to the approval of the City Manager, the City shall pay for expenses associated with the move. Employee agrees to reimburse City one half of moving expenses if Employee leaves City employment 36 months or less after employment date noted in Section Three. 3 - EMPLOYMENT AGREEMENT SECTION ELEVEN DUES AND SUBSCRIPTIONS Subject to approval by the City Manager, the City shall pay professional dues and subscriptions of Employee necessary for the continuation and participation of Employee in national, regional, state, or local organizations and associations necessary for Employee's continued professional growth. SECTION TWELVE PROFESSIONAL DEVELOPMENT Subject to prior approval by the City Manager, City shall pay travel costs and subsistence expenses actually incurred by Employee for professional and official travel. SECTION THIRTEEN REIMBURSED EXPENSES City will reimburse Employee for expenses of a non-personal and job-related nature as they are incurred. Reimbursement shall be made upon presentation of expense vouchers, receipts, statements, or personal affidavits. SECTION FOURTEEN SERVICE CLUB MEMBERSHIP Subject to the approval by the City Manager, Employee may become a member of one service club or community organization at City's expense. SECTION FIFTEEN VACATION/SICK LEAVE Upon employment, Employee shall accrue vacation and sick leave at the rate established by Resolution of the City Council. Vacation may not be taken during the first six (6) months of employment. Accrued vacation hours shall be paid at termination only after Employee has been employed by City for six (6) months. Employee may receive a cash payment for accrued vacation as established by Resolution of the City Council for administrative procedure. 4 - EMPLOYMENT AGREEMENT SECTION SIXTEEN LIFE, DISABILITY, AND HEALTH INSURANCE City shall provide insurance benefits to Employee as established for management by Resolution of the City Council. SECTION SEVENTEEN RETIREMENT After six (6) months of employment, City will enroll Employee in one of the Retirement Plans established by Resolution of the City Council, subject to the terms and conditions of the Plan. SECTION EIGHTEEN DEFERRED COMPENSATION Employee will have the option of participating in a deferred compensation plan sponsored by City. This plan is voluntary and at the sole expense of Employee. SECTION NINETEEN PROFESSIONAL LIABILITY City agrees to defend, hold harmless, and indemnify Employee on any and all claims brought against Employee arising out of Employee's actions within the scope of the employment relationship with City. CITY OF: _________________________________ By: , City Manager EMPLOYEE: __________________________________ 5 - EMPLOYMENT AGREEMENT