Here is a comprehensive summary of the benefits Michael W. Kovacs receives under his 2022 employment agreement as City Manager of the City of Fate, Texas. Actual document provided at end.
💼 Compensation & Salary
- Base Salary: $202,436.34 annually, paid biweekly.
- Salary Adjustments: Automatically increased in accordance with any general cost-of-living adjustments (COLAs) applied to executive-level employees.
- Performance-Based Raises: Salary and/or benefits may increase based on annual performance evaluations.
- Salary Floor: Cannot be reduced below the base salary without mutual written agreement.
🏥 Health, Disability & Life Insurance
- Full Coverage: City pays 100% of premiums for health, hospitalization, surgical, dental, vision, and comprehensive medical insurance for Kovacs and his dependents.
- Life Insurance: City pays for a policy worth three times his annual salary. Policy is owned by Kovacs; premiums treated as taxable income.
🕒 Paid Time Off (PTO) & Leave
- Accrues PTO under the same policies as other employees.
- May accrue and carry forward unused PTO.
- Upon termination (excluding resignation or retirement), will be compensated for all unused PTO.
- Entitled to military leave under the same provisions as all employees.
🚗 Automobile Allowance
- Receives $7,000 annually (paid monthly) for vehicle purchase, lease, operation, and maintenance.
- May request IRS standard mileage reimbursement for official business beyond 100 miles from Fate.
🏦 Retirement Benefits
- Enrolled in the Texas Municipal Retirement System (TMRS).
📚 Professional Development & Memberships
- City pays for:
- Membership dues (e.g., ICMA and other professional associations).
- Travel and expenses for attending national, regional, state, and local meetings and conferences.
- Short courses, institutes, seminars for professional growth.
- Membership fees for local civic clubs or organizations.
- Reasonable expenses for job-related meals and social engagements.
- Provided laptop, mobile phone, and/or tablet for business and personal use (must return upon termination).
🛡️ Severance Package
- If terminated without cause:
- Receives 12 months’ salary as severance.
- Includes accrued PTO and continued health benefits (subject to caps).
- Severance is forfeited if:
- Terminated for a felony, moral turpitude misdemeanor, or conflict-of-interest violations.
- Resigns voluntarily or retires.
🏠 Residency Requirement
- Must maintain residence within Fate city limits.
🕰️ Work Schedule & Expectations
- Flexible hours expected, including significant time outside normal office hours.
- May establish own work schedule as long as job duties are fulfilled.
⚖️ Indemnification & Legal Support
- City will indemnify and defend Kovacs (including attorney’s fees, costs, settlements, etc.) for any legal actions related to his job unless his actions involve gross negligence, bad faith, or willful misconduct.
- Continues to receive legal support and reasonable consulting fees/travel expenses even after separation, if related to job duties or litigation where he is a witness/advisor.
- Independent legal representation available upon request, at City’s expense (within reason).
📉 Suspension & Termination
- May be suspended with full pay and benefits by majority City Council vote.
- Kovacs must receive written notice of charges within 10 days and can request a hearing (open or closed session).
📜 Ethical Standards & Restrictions
- Prohibited from:
- Endorsing candidates.
- Donating to campaigns.
- Participating in political fundraising or petitions.
- Protected from being ordered to violate these principles by any City official.
- Must uphold ICMA Code of Ethics.
📈 Outside Activities
- May engage in teaching or consulting only with prior approval of the City Council.
- Such work must not interfere with City duties or present conflicts of interest.
📑 Other Provisions
- Bonding: City pays for any fidelity or similar bonds required by law.
- Dispute Resolution: Parties must attempt non-binding mediation before filing any lawsuit.
- Precedence Clause: Terms of this agreement supersede conflicting City policies or laws (unless prohibited by law).