david tipton's employment contract

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    BELFAIR WATERDISTRICT #1

    DISTRJ:CT MANAGER

    This employment agreement is entered into between Mr. David Tipton (hereinafterreferred to as "Mr. Tipton") and the Belfair Water District #1, Belfair, Washington(hereinafter referred to as "the District") to describe the terms and conditions ofemployment asGeneral Manager of the Belfair WaterDistrict#l.

    r n r n ill [ ? T l 'WHEREAS,the District has employed Mr. Tipton continuously since September, 2007and desires to continue to employ Mr. Tipton as the General Manager; and

    RECITALS

    WHEREAS,the District and Mr. Tipton desire to formalize the September 2007 verbalagreement under which Mr. Tipton has heretofore been employed; andWHEREAS,Mr. Tipton desires to continue as the General Manager of the District; andWHEREAS,the parties jointly desire to enter into this Employment Agreement tomemorialize the terms and conditions of Mr. Tipton's employment with the District.AGREEMENT [ ] ) r n ill r T I TNOW, THEREFORE,n consideration of the mutual benefits to be derived the partiesagree as follows:Section 1. Appointment and Effective Date.Mr. Tipton was appointed Manager of the District for an indefinite term effectiveSeptember 4,2007. Pursuant to this agreement the District continues said appointment.Section 2. Duties.Mr. Tipton shall perform all duties required of the position of Manager of the District.Any duties or changes to duties will b e assigned by a majority vote of the Commissionersat a public meeting and will be mutually agreed to by Mr. Tipton before implementation.No commissioner can assign duties to Mr. Tipton individually. Mr. Tipton shall attend regularand special meetings of the District Commissioners that are scheduled during businesshours, unless excused.

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    Mr. Tipton will be compensated at a rate of three (3) days pay for attending any regularor special meeting that starts after 2:00Pm Pacific Standard Time or is still in session after4:00Pm Pacific Standard Time. Mr. Tipton is not required to attend any meetings on Saturdayor Sunday.

    Section 3. Exclusjve Employment.Mr. Tipton agrees to devote his full-time efforts to the position of General Manager .:Full-time efforts are defined as 32 or more hours of work on a weekly basis. Work weekis Monday through Sunday. Absent major emergency, Mr. Tipton is excluded from workon Saturday and Sunday.

    Section 4. Benefits.All benefits applicable to District employees in general shall also be applicable to Mr.Tipton, except as otherwise provided herein. Mr. Tipton and his t;>eneficiarieswill continueto receive District Paid health and dental insurance coverage.Sedlon S. Salary.As compensation for services in the capacity as General Manager, Mr. Tipton shall receivean annual salary of $72.070, payable in installments at the same frequency as other Districtemployees. Mr. Tipton's salary shall be increased by the same COlAadjustment affordedthe District employees annually in the adopted District budget. Mr. Tipton's salary will increaseannually by a minimum of lY2%.Mr. Tipton shall be ineligible for overtime pay except inextenuating circumstances approved by the majority of the District's Board of Commissioners.Sedlon 6. Working Conditions.The provlslons of the District Personnel Manual shall be applicable to the employment ofMr. Tipton, where not in conflict with the terms of this agreement or the Revised Code ofWashington, provided, however, the District Personnel Manual shall not be considered apart of this Employment Agreement, and the Board of Commissioners reserves the right,in their sole discretion, to unilaterally change the terms of the District Personnel Manualwithout notice. Mr. Tipton agrees that he shall not rely upon the District Personnel Manualas a term or condition of his employment with the District. Mr. Tipton will be allowed tocontinue the practice of bringing his dogs to work. No one is allowed access to Mr. Tipton'soffice without Mr. Tipton's consent and presence.

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    No changes to existing working conditions will be made without agreement to the changesBy Mr. Tipton.Section 7. car Allowance.While Mr. Tipton is using his personal vehicle on District business the District shall reimburseMr. Tipton at the then prevailing IRSmileage rate.Section 8. General Expenses.The District recognizes that certain job-related expenses will be incurred by Mr. Tiptonwhile on District business. The District agrees to reimburse Mr. Tipton for such expensesreasonable and necessary to District business as permitted by Statute, District policy andbudget.

    Section 9. Involuntary Termination/Merger, Assumption orConsolidation.A. Involuntary Termination.The District reserves the right, in its sole, subjective discretion, to terminate this agreementand the services of Mr. Tipton as General Manager. In the event the District decides toterminate this agreement and services of Mr. Tipton, it will provide Mr. Tipton a 120-day written notice of such termination. In the event such termination is for reasons otherthan conviction of a crime, Mr. Tipton shall receive severance pay equivalent to3 years pay of pay at the rate of pay in effect for Mr. Tipton on the date of notice oftermination. Said pay shall be paid in one lump sum payable within Sdays. In such circumstanceMr.Tipton and his legal dependents shall also be covered on the District's health insuranceprogram at the District's expense for said 270 days or until such time as Mr. Tiptonsecures other employment with medical insurance coverage, whichever occurs sooner.The severance pay shall include all benefits except vacation and sick leave accrual. Paymentshall be made for all accrued vacation and sick leave accrued as of the actual date oftermination. There will no limit on the number of hours of accrued vacation and sick leave.Should Mr. Tipton voluntarily terminate his employment during the 120 day notificationperiod, he shall be entitled to pay up to the last day worked, plus severance pay as previouslydescribed.

    B. Merger, Assumption or Consolidation.In the event Mr. Tipton's employment as General Manager is terminated as a result of amerger, assumption or consolidation of BWD with another utility district, County, city, orbankruptcy, Mr. Tipton shall receive severance pay equivalent to 2 years of pay

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    at the rate of pay in effect for Mr. Tipton on the date of notice of termination. Severancepay shall be paid in one lump sum payment. Mr. Tipton and his legal dependents shall alsobe covered on the District's health insurance program at the District's expense for said 270days or until such time as Mr. Tipton secures other employment with medical insurancecoverage, whichever occurs sooner.

    Section 10. Voluntary Termination.In the event that Mr. Tipton elects to voluntarily resign or retire, 'he shall give the Districtnot less than thirty (30) days advance written notice. In the event of a voluntary terminationby Mr. Tipton the severance pay will equal 2 years of pay and insurance benefitsreferenced in Section 9 above.

    Section 11. Vacation Leave/Administrative leave.Mr. Tipton will be allocated fifteen (15) days.vacation annually. The District Commissionerswill review the amount of annual vacation allocated to Mr. Tipton annually for increasesover the standard vacation leave granted other employees. In addition to vacation leave,Mr. Tipton shall receive ten (10) days of paid administrative leave per contract year.Section 12. Professional Membership.The District agrees to pay the professional dues and subscriptions for Mr. Tipton toparticipate in National, Regional, State, and Local associations and organizationsnecessary and desirable for his continued professional partlclpatlon, growth andadvancement, and the good of the District. Such dues will include but are not limitedto the annual WASWD dues and American Water Works Association dues.

    Section 13. Performance Evaluations.

    Section 14. Term.

    The District Commissioners will evaluate Mr. Tipton's performance annually, in Octoberof each year. The District Commissioners, in consultation with the Manager, shall determinethe method for Mr. Tipton's annual performance review. The failure of the Commissioners toconduct an annual performance review in October provides Mr. Tipton a $5,000 performancebonus payable on November 1 of every year of the contract.

    Subject to the provisions of Sections 9 and 10, the term of this agreement shall be for fiveyears, commencing August 9, 2011 to terminating August 8, 2016. Mr. Tipton may, at hisoption, renew this agreement for an additional six (6)years by advising the Board ofCommissioners not later than August 1, 2016 of his desire to renew.

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    r n illi l l [ r O 'Section 15. Entire Asreement.This agreement contains the entire understanding between the two parties and it shallnot be modified by any oral understanding inconsistent with the terms and conditionsherein. This contract can only be modified by written addendum agreed to by the parties.

    IN WITNESSWHEREOF,and in agreement to the terms and conditions contained herein,the parties have affixed their signatures on the dates indicated ..

    Approved by motion of the Belfair Water DistrictCommissioners on the 9th day of August, 2010.

    Date 08/9/2011 r n illi l l r T f ]CommissionerDate 08/9/2011

    Commissioner

    Date 08/9/2011Commissioner

    Date 08/9/2011District Manager . .