SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Sixth Amendment to the Employment Agreement with Town Manager Malcolm Fleming to Increase the Compensation and Reduce the Severance
Department
DEPARTMENT: Administrative Operations
Presenter
PRESENTER(S): Malcolm Fleming, Town Manager
Kendra Carberry, Town Attorney
ime
TIME ESTIMATE: 0 minutes
end
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $13,756.26 Increase in Salary, which brings Total
Compensation to $280,021.35, which consists of $243,027.26 Salary, $36,454.09 Deferred Compensation contributions to 457 and 401 retirement funds, and $540 cell phone stipend)
Balance Available: $206,904 in 100‐20‐110‐500000
$59,841 in 100‐20‐110‐501000
Fund: General Fund
New Appropriation Required: No
Policy
POLICY ISSUES:
Providing competitive compensation and applying the same market and merit percentage increases to the Town Manager as are applied to other Town employees who receive a satisfactory performance evaluation.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution.
Body
SUMMARY/KEY POINTS
• The Town Manager’s Employment Agreement requires the Town Council to review and evaluate the Town Manager’s performance at least once every 12 months.
• Based on Manager Fleming’s performance over the past 17 months, and applying the same market and merit percentage increases to the Town Manager as are applied to other Town employees who receive a satisfactory performance evaluation for the 2024-2025 period, Council desires to increase Fleming’s compensation by a 3% market adjustment and 3% merit adjustment retroactive to his employment anniversary date of Jan. 9, 2025.
• Council also desires to reduce from 12 months to 6 months the severance payment due Fleming if Council terminates Fleming’s employment without cause.
• Depending on expenses in other categories, a supplemental budget request may be needed in December to appropriate additional funds into the account to accommodate the increase in salary. Finance staff will monitor the budget and address this in the supplemental budget if necessary.
BACKGROUND OF SUBJECT MATTER:
On Jan. 8, 2019, the Board of Trustees approved an Employment Agreement with Malcolm Fleming to serve as Town Administrator. The Home Rule Charter approved by Erie voters in 2023 changed the title of the Board of Trustees to Town Council and the title of Town Administrator to Town Manager. The Town Council has approved amendments to the initial 2019 agreement five times since then providing for compensation increases for Fleming.
The Agreement outlines the terms under which Fleming accepted employment and the Council appointed Fleming as Town Manager. Among the terms is the requirement for the Council to evaluate Fleming’s performance. This evaluation typically involves considering multiple factors relating to Individual Characteristics, Professional Skills, Relationship with Council, Policy Execution, Information Sharing, Resident Relations, Staffing, Supervision, Fiscal Management, and Community Engagement.
In accord with the employment agreement provisions, in December 2024, Council members discussed but did not finalize their evaluation of Fleming’s performance. The new Council seated in January then discussed Fleming’s performance on March 25, and again on May 27. Based on those discussions, Council directed Fleming and the Town Attorney to prepare for Council consideration an amendment to the Employment Agreement reflecting the same percentage salary increase applicable to other Town employees who receive a satisfactory performance evaluation; a 3% market adjustment and a 3% merit adjustment, retroactive to Fleming’s anniversary date. Fleming’s sixth anniversary serving as Town Manager was Jan. 9, 2025. Implementing these increases will set Fleming’s salary at $243,027 per year. Based on the Town’s independent consultant’s review of 24 other cities and towns in the Town’s employment market, this salary is 87% of the 2024/2025 market average.
Council also directed the Employment Agreement be amended to reduce from 12 months to 6 months the severance payment due Fleming if Council terminates Fleming’s employment without cause. The employment agreement includes provisions providing no severance if Fleming is terminated for cause, including if Fleming fails to perform any material term of the Agreement or his job description, or fails to meet his performance goals, and such failure continues for 30 days after written notice from the Town Council specifying the failure and expected corrective action.
The attached documents include the proposed Employment Agreement reflecting these changes as well as a redline version highlighting amendments to the current Employment Agreement. The Town is changing the entity, known as “the Record Keeper” that manages Town employees’ 401 and 457 retirement accounts. Accordingly, the amendments to the Agreement also include amendments to reflect the new Record Keeper. Other than these changes, all other terms of the Agreement remain identical.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☒ Attractive Community Amenities
☒ Engaged and Diverse Community
☒ Prosperous Economy
☒ Well-Maintained Transportation Infrastructure
☒ Small Town Feel
☒ Safe and Healthy Community
☒ Effective Governance
☒ Environmentally Sustainable
☒ Fiscally Responsible
attachments
ATTACHMENT(S):
1. Resolution
2. Sixth Amended Employment Agreement
3. Redline version reflecting Amendments to Fifth Amendment Employment Agreement