EMPLOYMENT AGREEMENT

Introduction

This Agreement made and entered into this by and between IOWA CITY
and THOMAS M
IOWA a municipal corporation hereinafter called Employer
the education training
MARKUS hereinafter called Employee an individual who has
and who as a member of ICMA is
and experience in local government management
of whom agree as follows
subject to the ICMA Code of Ethics both

Section 1 Term
10 until terminated
remain in full force and effect from 12
1 by
A This agreement shall
as provided in Section 9 10 or 11 of this agreement
the Employer or Employee

Section 2 Duties and Authority

the
Employer agrees toemploy Thomas M Markus as City Manager to perform
functions and duties specified in Article IV of the Iowa City Charter Title I Chapter 7 of
duties and
the Iowa City Code and to perform other legally permissible and proper
functions as the Council may from time to time assign

Section 3 Compensation
to pay Employee an annual base salary of 160000
A Base Salary Employer agrees
payable in installments at the same time that the other administrative employees of the

Employer are paid

B Consideration shall be given on an annual basis to increase compensation

C The Employer may increase the compensation of the Employee dependent upon the
of
results of the performance evaluation conducted under the provisions of Section 12
this Agreement Increased compensation may be in the form of a salary increase and
or

a bonus

Section 4 Health Disability and Life Insurance Benefits

and
A The Employer agrees to provide health hospitalization surgical vision dental
her dependents equal to
his
comprehensive medical insurance for the Employee and
that which is provided to all other administrative employees of Iowa City
 to that which is provided
B The Employer provide disability insurance equal
agrees to
to all other administrative employees of Iowa City

to a complete physical
C The Employee may elect to submit once per calendar year
selected
examination including a cardiovascular examination by a qualified physician
unless the cost is
by the Employee the cost of which shall be paid by the Employer
covered by insurance

D The Employer shall pay the amount of the premium not in excess of 2 000
annually sannual
for term life insurance in the amount of three 3 times the Employee
life of this agreement
base salary including all increases in the base salary during the
The Employee shall name the beneficiary of the life insurance policy Employee
understands that this is a taxable benefit

offer to
E Other During the term of this agreement Employer shall
Benefits
other non
represented
Employee other fringe benefits which may be provided
Administrative and Confidential employees of Employer

Section 5 Vacation Sick and Holidays

shall be credited with vacation leave
A Upon commencing employment the Employee
and
equal highest annual accrual 192 hours provided to all other employees
to the
then accrue sick and
sick leave in the amount of 192 hours The Employee shall
vacation leave on an annual basis at the highest rate provided to any other employees
that which is provided all
Employer agrees to provide a holiday benefit program equal to
other administrative employees of Employer

shall have access to a bank of 180

B Upon commencing employment the Employee
sick days to be used in the case of serious medical conditions This leave can only be
of illness or
used to provide coverage during the waiting period between the onset
takes effect
disability and the point at which short or long term disability coverage

C The is entitled to accrue unused vacation leave up to a maximum of 400

Employee
hours and in the event the Employee employment is terminated either voluntarily or
s
time All sick
involuntarily the Employee shall be compensated for all accrued vacation
leave shall be accrued consistent with all other administrative employees

Section 6 Automobile
month for
Employer provide Employee an automobile allowance of 475
shall 00 per
his business and personal use during his employment with Employer Employee shall
be responsible for paying for liability property damage and comprehensive insurance
shall be responsible for expenses attendant to the
coverage upon such vehicle and
of said vehicle This
purchase operation maintenance repair and regular replacement
automobile allowance shall be adjusted by the yearly percentage change of the Iowa
of 2011
City Iowa area CPIU as published by the Department of Labor for December
and December of each contract year thereafter

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Section 7 Retirement
into the applicable state or local
A The Employer agrees to enroll the Employee
on the Employee
s
retirement system and to make all the appropriate contributions
sshare
behalf for the Employer

B In addition to the Employer payment to the state or local retirement system as

s
to execute all necessary agreements
applicable referenced above Employer agrees
provided by ICMA Retirement Corporation ICMA RC or other Section 457 deferred
s continued participation in said supplementary
compensation plan for Employee
to Employee
retirement plan and in addition to the base salary paid by the Employer
5 of his base salary
12 or the maximum
Employer agrees to pay an amount equal to
into the designated
allowable amount under IRS rules whichever is the lesser amount
amount each pay period The
s behalf in equal proportionate
plan on the Employee
financial impact of any amendment to the
parties shall fully disclose to each other the
sretirement benefit
terms of Employee

In lieu of making a contribution to a compensation plan the dollar

Section 457 deferred
value of this contribution may be used at soption to purchase previous
the Employee
service from another qualified plan

Section 8 General Business Expenses

dues and
A Employer agrees budget for and to pay for professional
to

subscriptions of the Employee necessary for continuation and

full participation in
and
national regional state and local associations and organizations necessary
s continued professional participation growth and
desirable for the Employee
advancement and for the good of the Employer

subsistence expenses
B Employer agrees to budget for and to pay for travel and
occasions to adequately
of Employee for professional and official travel meetings and
official
continue the professional development of Employee and to pursue necessary
functions for Employer including but not limited to the ICMA Annual Conference the
and local
state league of municipalities and such other national regional state
serves as a member
governmental groups and committees in which Employee
for travel and subsistence
C Employer also agrees to budget for and to pay
and seminars that are necessary for
expenses of Employee for short courses institutes
of the Employer
sprofessional development and for the good
the Employee

D personal but job related

Employer recognizes that certain expenses of anon
reimburse or to pay said general
nature are incurred by Employee and agrees to
authorized to disburse such moneys upon receipt of
expenses The finance director is
statements or personal
duly executed expense or petty cash vouchers receipts
with the policies of
affidavits or other necessary documentation required in accordance

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the City of Iowa City
and be
E The Employer acknowledges the value of having Employee participate
shall pay for
directly involved in local civic clubs or organizations Accordingly Employer
or dues to enable the Employee to become an
the reasonable membership fees and
active member in local civic clubs or organizations

with modem cell

computer software fax
F The Employer shall provide Employee a

phone pager and such other devices as may be developed and required for the
Employee to perform the job and to maintain communication

Section 9 Termination
For the purpose of this agreement termination shall occur when
A The majority of the governing body votes to terminate the Employee at a duly
authorized public meeting

of the Iowa City

B Employer citizens or legislature acts to amend any provisions
If the
Charter or Iowa City Code pertaining to the role powers duties authority
form of
s position that substantially changes the
responsibilities of the Employee
that such amendments
government the Employee shall have the right to declare
constitute termination

the base salary

C If theEmployer without the approval of Employee reduces
unless it is applied in no
compensation or any other financial benefit of the Employee
greater percentage than the average reduction of all administrative employees such
action shall constitute a breach of this agreement and will be regarded as a termination

formal or
D Employee resigns following an offer to accept resignation whether
If the
the governing body that
informal by the Employer as representative of the majority of
the date of
the Employee resigns then the Employee may declare a termination as of
the suggestion

Section 10 Severance
Severance shall be paid to the when employment is terminated as defined in
Employee
Section 9

and during such

In the event Employee is terminated or discharged by the City Council
time the Employee is willing and able to perform his duties under this Agreement then
and in that event the Employer shall continue to pay to the Employee his thenexisting
base salary and deferred compensation on the regular payroll schedule of the Employer
of termination until such
i until the expiration of nine 9 months from the date or ii
time as Employee accepts and commences employment with any other employer
whichever occurs first To the extent allowable by law Employer shall either continue
spremiums for COBRA
to provide and pay for health insurance or pay Employee

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coverage during the severance period

of felony then the Employer is

If the Employee is terminated because of a conviction a

not obligated to pay severance under this section

Section 11 Resignation
her position with the Employer
In the event that the Employee voluntarily resigns his
the Employee shall provide a minimum of 60 days notice unless the parties agree
otherwise

Section 12 Performance Evaluation

Employer shall annually review the performance of the Employee prior toJuly 1 subject
to process form criteria and format for the evaluation
a
which shall be mutually agreed
The at a minimum shall include the
upon by the Employer and Employee process
opportunity for parties to 1 prepare a written evaluation 2 meet and discuss the
both
of the evaluation results The final written
evaluation and 3 present a written summary
within 30 days of the
evaluation should be completed and delivered to the Employee
evaluation meeting

Section 13 Hours of Work

It is recognized Employee must devote a great deal of time outside the normal
that the
shall be allowed to
office hours on business for the Employer and to that end Employee
establish an appropriate work schedule

Section 14 Outside Activities

The employment provided for s sole
by this Agreement shall be the Employee
outside consulting or teaching opportunities
employment Recognizing that certain
the Employee may elect to
provide indirect benefits to the Employer and the community
that such arrangements
accept limited teaching opportunities with the understanding
conflict of interest with his or her
shall constitute interference with
not nor a

responsibilities under this Agreement

Section 15 and Relocation Expenses

Moving
Employee agrees to establish residence within the corporate boundaries of the local
boundaries of the
government and thereafter to maintain residence within the corporate
local government
her family
his
A Employer shall pay directly for the expenses of moving Employee and
and personal property from Birmingham Michigan to Iowa City Iowa Said moving
and insurance charges
expenses include packing moving storage costs unpacking

for
B Employer shall reimburse Employee for actual lodging and meal expenses
her family in route from Michigan to Iowa Mileage costs for moving two personal
his
automobiles shall be reimbursed at the current IRS allowable rate of 50 cents per mile
 of One Thousand
C Employer shall pay Employee an interim housing supplement
000 per month for a period commencing
Dollars 1 December 1 2010 and shall
This supplement will cease upon the
continue fora maximum of 12 months
shome
sacquisition and closing on the Manager
Employee

D Employer shall reimburse Employee for a total of 6 roundtrip air fares for Employee
of
and his spouse for a total amount of 12 tickets at any time during the first year
the transition and relocation
service to assist with house hunting and other facets of
his spouse may utilize and distribute the total 6 individual
process The Employee and
for actual
round trip tickets in any combination The Employee shall be reimbursed
any trips conducted
lodging and meal expenses incurred by Employee or his spouse
on

prior to relocation as detailed herein

Section 16 Indemnification
Local Law Employer shall defend save
Beyond required under Federal State or
that
claim or
harmless and indemnify Employee against any tort professional liability
out of an alleged
demand or other legal action whether groundless or otherwise arising
act or omission occurring within the scope of Employee
semployment or duties unless
the act or omission involved willful orwanton conduct In the defense of such claims the

Employee may request and the Employer shall not unreasonably refuse to provide
s
Employer
at expense and Employer may not
independent legal representation
unreasonably withhold approval Legal representation provided by Employer for
of the legal action including any
Employee shall extend until a final determination
appeals brought by either party The Employer shall indemnify employee against any
costs and other
and all losses damages judgments interest settlements fines court
and any
reasonable costs and expenses of legal proceedings including attorneys fees
in connection
other liabilities incurred by imposed upon or suffered by such Employee
with or resulting from any claim action suit or proceeding actual or threatened arising
out of or in connection with the performance of his or her duties unless the act
or

claim must be made

omission involved willful or wanton conduct Any settlement of any
as provided in this
with prior approval of the Employer in order for indemnification
Section to be available
Employee recognizes that Employer right to compromise adjust and
shall have the
indemnification
settle claims against Employee for which Employee is entitled to
of Employee
Further Employer agrees to pay all reasonable litigation expenses
throughout the pendency of any litigation to which the Employee
is a party witness or
continue beyond Employee
s
advisor to the Employer Such expense payments shall
service to the Employer as long as litigation is pending

Section 17 Bonding
other bonds required of the Employee
Employer shall bear the full cost of any fidelity or

under any law or ordinance

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Section 18 Other Terms and Conditions of Employment

entitled
Except as otherwise provided in this Agreement the Employee shall be
to the highest level of benefits that are enjoyed by other administrative employees of the
Rules and Regulations or by
Employer as provided in the Charter Code Personnel
practice

Section 19 Notices
Notice pursuant Agreement shall be given by depositing in the custody of the
to this
United States Postal Service postage prepaid addressed as follows

1 EMPLOYER Mayor of Iowa City Iowa with a copy to the Clerk

410 E Washington St
Iowa City Iowa 52240

M Markus
2 EMPLOYEE Thomas
1365 Southfield

Birmingham MI 48009

served in
Alternatively notice required pursuant to this Agreement may be personally
the same manner as is applicable to civil judicial practice Notice shall be deemed given
notice in the
as of the date of personal service or as the date of deposit of such written

course of transmission in the United States Postal Service

Section 20 General Provisions

establishes the entire understanding
A Integration This Agreement sets forth and
between the Employer and the Employee relating to the employment of the Employee
or between the parties are
by the Employer Any prior discussions or representations by
The parties by mutual
merged into and rendered null and void by this Agreement
of the
written agreement may amend any provision of this agreement during the life
made a part of this
agreement Such amendments shall be incorporated and
agreement

B Binding Effect This Agreement shall be binding on the Employer and

the Employee
in
as well as their heirs assigns executors personal representatives and successors

interest

C Effective Date This Agreement shall become effective on December 1 2010

will
D Severability The invalidity or partial invalidity of any portion of this Agreement
not affect the validity of any other provision In the event that any provision of this
is held to be invalid the remaining provisions shall be deemed to be in full
Agreement
to the
force and effect as if they have been executed by both parties subsequent
expungement or judicial modification of the invalid provision

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 of this agreement shall be
E Governing law This agreement and the interpretation
governed by Iowa law

IOWA CITY a Municipal Corporation

By
Mayor
Attest
Clerk

By
Thomas M Markus

roved as

v
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City Attorney