06-01-2017 Town Manager Employment AgreementTOWN MANAGER EMPLOYMENT AGREEMENT
WITH VIRGINIA EGGER
THIS EMPLOYMENT AGREEMENT ("Agreement") effective June 1, 2017, by and between Virginia Egger
("Manager") and the Town of Avon, Colorado ("Town"), a Home Rule municipality of the State of
Colorado (individually "Party" and collectively "Parties"), and is made in contemplation of the following and
is subject to the terms and conditions herein contained.
RECITALS
WHEREAS, the Parties signed a "TOWN MANAGER EMPLOYMENT AGREEMENT WITH VIRGINIA
EGGER", effective on August 28, 2012, along with four subsequent amendments; and,
WHEREAS, the Parties agree it is best to update those terms and conditions which are no longer
relevant and to incorporate those changes and all terms and conditions from the Agreement, thereby
providing in this Town Manager Employment Agreement all terms and conditions of the Manager's
employment.
NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and the
above Recitals, which are incorporated herein, the Parties agree to the following terms and conditions:
1.0 EMPLOYMENT. Manager is employed as Town Manager of the Town for an indefinite period as
an employee at will subject to the terms and conditions of this Agreement; the Town of Avon
Employee Policies & Procedures, effective April 25, 2016; the Town of Avon Compensation &
Benefits Programs, effective January 1, 2016; and, the Avon Home Rule Charter, as may be
amended from time to time.
2.0 DUTIES. Manager is employed as Town Manager in a fulltime capacity of the Town with the duties
and functions specified in the Town of Avon Home Rule Charter and as legally specified and directed by
the Town Council.
3.0 COMPENSATION.
3.1 BASE SALARY. The Town agrees to pay Manager a base annual salary ("Base Salary")
of ONE HUNDRED SEVENTY-FOUR THOUSAND SEVEN HUNDRED SIXTY DOLLARS
($174,760.00), which shall be paid retroactively to and from June 1, 2017. Payment of the
Base Salary under this Agreement shall be made in equal installments on a biweekly basis
during the term of this Agreement.
3.2 HOUSING AND AUTOMOBILE ALLOWANCE. Manager shall receive a ONE
THOUSAND SEVENTY DOLLARS ($1,070.00) per month allowance as additional salary
for housing and automobile, which shall be paid retroactively to and from June 1, 2017.
3.3 RETIREMENT. The Town shall pay as retirement contribution an amount equal to the
amount paid by Manager to the 401(a) Retirement Plan of the Town, which currently is
eleven percent (11 %) of the Base Salary of Manager. The 11 % matching contribution from
the Town towards the 401(a) Retirement Plan shall be paid retroactively to and from June
1, 2017. In addition, Manager shall be entitled to participate in the 457 Deferred
Compensation Retirement Plan of the Town which is a voluntary contribution plan subject
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July 25, 2017
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to the limitation of the Internal Revenue Service,
3.4 INSURANCE BENEFITS. The Town shall provide and pay that portion of the premiums
for health, dental, vision, and term life insurance for Manager and her dependents equal to
that which is provided to all other fulltime employees of the Town in accordance with Town
of Avon Compensation & Benefits Programs, effective January 1, 2016, as may be
amended from time to time.
3.5 PAID TIME OFF. The Manager shall be entitled to paid time off ("Paid Time Off") in
accordance with Section 2.16.a of the Town of Avon Compensation & Benefits Programs,
effective January 1, 2016, as may be amended from time to time, provided that Manager
shall begin accruing Paid Time Off at the rate of an employee with five (5) years of
employment with the Town, which accrual shall begin on the date of commencement of
employment set forth in Section 5 below.
3.6 OTHER BENEFITS. Manager shall be entitled to any other benefits that are provided by
the Town to other fulltime executive employees.
3.7 COMPENSATION ADJUSTMENT. The Compensation of the Manager may be adjusted
based upon the Manager's annual performance evaluation as set forth in Section 4 below,
by the Town Council. Any change in Compensation shall be effective on June 1, of each
year, and/or at subsequent annual performance evaluations. Compensation adjustments
shall be made by motion and vote and do not require amendment of this Agreement.
4.0 PERFORMANCE REVIEW. The Town Council shall complete the annual performance review of
the Manager on or before the fourth Tuesday of May of each calendar year, unless the Town
Council and Manager mutually agree to a different date. The Town Council also may require a
performance evaluation at any time a majority of the Council deems a review is necessary. The
Town Council shall advise and inform Manager as to the Town Council's opinion and expectations
regarding her performance as Town Manager based upon specific performance criteria. The Town
Council shall use the specific performance evaluation criteria and process, which were used for
current year's annual performance review, with any changes being provided to the Town Manager
for her concurrence on or before the fourth Tuesday in May, for the next year's annual performance
review.
5.0 COMMENCEMENT OF EMPLOYMENT AS TOWN MANAGER. The Effective Date of the
Agreement was August 28, 2012, irrespective of the date or dates upon which the Parties execute
it. Manager commenced her duties as Town Manager on December 1, 2012,
6.0 FACILITIES. The Town shall furnish office facilities and assistance for Manager as the Town
Council deems appropriate for the performance of Manager's duties.
7.0 LIMITATION ON PROFESSIONAL ACTIVITIES. Manager shall not engage in any non -Town
employment activities for compensation without the express written consent of the Town Council.
It is the intent of the Parties that Manager's employment agreement is for fulltime employment.
Participation in professional organizations and voluntary programs are encouraged provided they
are consistent with the responsibilities of the Town Manager of the Town. The Town shall pay
Manager's membership fees and reasonable costs of participation in the International City
Manager's Association and other memberships including professional development activities which
the Town Council determines are consistent with her employment.
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8.0 CONFERENCE ATTENDANCE. The Town shall pay for all expenses related to Manager's
attendance at the International City Manager's Association annual conference, the Colorado
Association of Ski Towns annual conference, the Colorado Municipal League annual conference,
and at least one other out of state conference to be selected at the discretion of the Manager.
Manager may propose additional job related training, education and professional membership and
participation which shall be subject to review and approval by the Town Council.
9.0 TERMINATION. This Agreement may be terminated only as follows:
9.1 The Town may terminate Manager's employment with or without cause ("Cause," as
defined below in Section 10.3), upon the vote of the majority of the Town Council; or
9.2 Manager may terminate Manager's employment, without notice, if the Town, the citizens of
the Town, or the Colorado General Assembly acts to amend any provision of the Town of
Avon Home Rule Charter, Town ordinances, or appropriate enabling legislation so as to
materially alter the role, powers, duties authority, or responsibilities of the Town Manager
or the form of government of the Town; or
9.3 Manager may terminate Manager's employment, without notice, by resigning the position
of Town Manager following a Town Council proposal that Manager resign; or
9.4 Manager may terminate Manager's employment owing to a breach of contract by the Town
where the Town has failed to cure the alleged breach within forty-five (45) days of written
notice by Manager to the Town of the alleged breach.
10.0 SEVERANCE.
10.1 The Town shall pay severance ("Severance," as defined below in Section 10.2), to
Manager if Manager's employment is terminated for any reason set forth in Section 9.
Town shall not be obligated to pay severance if Manager's employment is terminated for
Cause, defined below in Section 10.3, or in the case that Manager resigns voluntarily as
set forth in Section 11.
10.2 The amount of Severance payment shall be four (4) months Base Salary and benefits at
Manager's then current rate of Base Salary and benefits.
A. Severance payment shall be paid biweekly or shall be paid in a lump sum within
seven (7) business days of termination at the sole discretion of the Town and shall
be reduced by all taxes and other withholdings required by law.
B. Severance payment shall include compensation for all accrued Paid Time Off and
paid holidays.
C. Severance shall include payment of all premiums necessary for Manager to
maintain health and dental insurance for herself and her dependents through
COBRA or other applicable laws or regulations providing continuation coverage for
four (4) months following the termination of her employment.
10.3 For the purpose of this Agreement, Cause shall include:
A. Conduct by Manager which is fraudulent or dishonest; or
B. Manager's conviction of a felony or crime involving moral turpitude under any
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federal or state law; or
C. Gross negligence or malfeasance in office; or
D. Excessive use of alcohol or drugs, which renders Manager unfit or unable to
perform her duties, as determined by the Town Council.
10.4 If the Town Council intends to consider termination of Manager's employment for Cause,
the Town Council shall give Manager written notification stating matters constituting the
basis for termination for Cause ("Notice of Termination for Cause"). If Manager desires
to question whether the matters stated in the Notice of Termination for Cause are accurate
or whether they constitute Cause, she shall have the right to do so by written notice
("Notice of Appeal") to the Town Council given within ten (10) days after her receipt of the
Notice of Termination for Cause. In the event the Town and Manager are unable to
resolve the issue within fifteen (15) days after the Notice of Appeal, such dispute shall be
submitted to binding arbitration as provided in Section 12. In the event the arbitration
decision determines Manager's termination was not for Cause, Manager shall thereupon
be deemed to have been terminated without Cause effective the date of the Notice of
Termination for Cause and she shall be entitled to Severance.
10.5 In the event the Town Council offers to permit Manager to resign in lieu of being
terminated for Cause, such resignation, if it occurs, will constitute a termination without
Cause under this Agreement and Manager shall be entitled to Severance.
11.0 RESIGNATION. In the event that Manager voluntarily resigns her position with the Town in a
manner not contemplated by Sections 9.2, 9.3 or 9.4, Manager shall provide a minimum of forty-
five (45) days written notice unless the Parties otherwise agree. Upon the effective date of
resignation, Manager shall be entitled to no further compensation or benefits under this
Agreement.
12.0 ARBITRATION. Whenever any dispute arises under the Fourth Agreement, the Parties agree that
upon written demand of either Party, such dispute shall be submitted to binding arbitration to the
Judicial Arbiter Group, Inc. located in Denver, or its successor, or such other arbitrator as the
Parties may mutually select, pursuant to the rules and procedure as determined by arbitrator.
Provided, however, the arbitration hearing shall be held within thirty (30) days of appointment of the
arbitrator unless otherwise agreed by both Parties. Furthermore, each Party shall be entitled to
one deposition. The Colorado Rules of Evidence shall not apply unless otherwise agreed by the
Parties, although the arbitrator shall have discretion to determine whether any proffered evidence
is sufficiently reliable and probative to be admitted. The determination of the arbitrator shall be
final and absolute. The decision of the arbitrator may be entered as a judgment in any court in the
State of Colorado or elsewhere,
13.0 COMPLIANCE WITH THE LAW. It is the intent of the Town and Manager to comply with the
provision of Article X, Section 20 of the Constitution of the State of Colorado, including, in
particular, subsection 4(b). Therefore, the Parties agree that this Agreement is subject to an
annual appropriation by the Town Council and that the failure to make such appropriation will be
deemed a termination without Cause, unless such action is the result of a prior termination for
Cause pursuant to Sections 10.3 and 10.4 above.
14.0 INDEMNIFICATION. In conjunction with the liability insurance policy provided by the Town, the
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Town shall defend, save harmless, and indemnify Manager against any and all losses, damages,
judgments, interest, settlements, fines, court costs, and other liabilities incurred by, imposed upon,
or suffered by Manager in connection with or resulting from any claim, action, suit, or proceeding,
actual or threatened, arising out of an alleged act or omission in the performance of Manager's
duties as Town Manager or resulting from the exercise of judgment or discretion in connection with
the performance of duties or responsibilities on behalf of the Town unless the act or omission
involves willful or wanton conduct or intentional misconduct. Manager may request the Town to
provide independent legal representation acceptable to Manager at the Town's expense and the
Town shall not unreasonably withhold approval. Legal representation provided by the Town for
Manager shall extend until a final determination of the legal action including any appeals brought
by either party. Any settlement of any claim must be made with prior approval of the Town in order
for indemnification as provided in this Section to be available.
15.0 NOTICES. All written notifications contemplated in this Agreement shall be sent to the following
addresses provided that the Manager may amend the address for notification by providing written notice of
such address change:
If to the Town: If to Manager:
Mayor
Virginia Egger
Town of Avon
Town Manager
1 Lake Street
P.O. Box 4654
P.O. Box 975
Edwards, CO 81632
Avon, CO 81620
With Copy to:
Town Attorney
1 Lake Street
P.O. Box 975
Avon, CO 81620
16.0 ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties as to the
subject matter hereof and may not be changed orally, but only by written agreement signed by both
Parties for any waiver, changes, modification, or extension.
17.0 BINDING EFFECT. The Agreement shall be binding upon the Town and Manager and, as
applicable, upon their heirs, personal representatives, successors, and authorized assigns.
18.0 ASSIGNMENT. The rights and obligations of this Agreement are personal in nature and shall not
be assigned or other conveyed without the prior written consent of both parties.
19.0 NO THIRD PARTY BENEFICIARY. It is expressly understood and agreed that enforcement of the
terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall
be strictly reserved to the Town and Manager, and nothing contained in this Agreement shall give
or allow any such claim or right of action by any third person to this Agreement. It is the expressed
intention of the Town and Manager that any person other than the Town or Manager receiving
services or benefits under this Agreement shall be deemed to be an incidental beneficiary only.
20.0 SEVERABILITY. The validity or partial invalidity of any portion of this Agreement will not affect the
validity of any other provision. In the event that any provision of this Agreement is held to be
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invalid, the Parties shall negotiate and diligently seek to reach agreement regarding the intent of
the Parties concerning any such invalid provision. Accordingly, if any provision of this Agreement
is held to be invalid, the remaining provisions shall be deemed to be in full force and effect as if
they has been executed by both Parties subsequent to the expungement of the invalid provision.
AMENDED AGREEMENT READ, UNDERSTOOD AND APPROVED by the Town of Avon and the
Manager.
TOWN OF AVON, COLORADO
BY: ATTEST:
nie Fancher, Mayor Debbie Hoppe, Town derk
:SEAL,:
APPROVEDCp.�RADO
AS TO FORM:(:�*
Eric 4. He , Town-Att ney
MANAGER
BY: C2 e
Virginia C. Egger 00
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