EMPLOYMENT AGREEMENT

THIS AGREEMENT is made and entered into this ___ day of September 2006 by and between the CITY OF SOUTH PORTLAND, a municipal corporation within the County of Cumberland and the State of Maine (hereinafter called the “CITY”), as party of the first part, and Thaddeus J. Jankowski, Jr. (hereinafter called the “MANAGER,” except as otherwise noted), as party of the second part.

WITNESSETH:

WHEREAS, the City desires to employ the services of the Manager as City Manager of the City of South Portland as provided by Section 227 of its Charter;

WHEREAS, it is the desire of the City Council to provide certain benefits, establish certain conditions of employment, and to set working conditions of said Manager;

WHEREAS, it is the desire of the City Council (1) to secure the services of the Manager and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring Manager’s morale and peace of mind with respect to future security, and (3) to provide a just means for terminating Manager’s services at such time as he may be unable to fully discharge his duties, within the discretion of the City Council, due to disability, or when the City may desire to otherwise terminate his employment; and,

WHEREAS, the Manager desires to maintain employment as City Manager of said City;

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein set forth, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

Section 1. Duties. City hereby agrees to hire Thaddeus J. Jankowski, Jr. as City Manager of said City. The Manager accepts such employment and agrees to perform the functions and duties specified in the City Charter, City Ordinances, and the Maine General Statutes, and to perform such other legally permissible and proper duties, and reasonable functions as the City Council shall from time to time assign.

Section 2. Probationary Period. Pursuant to 30-A M.R.S.A. 2701, the Manager’s employment is probationary for six (6) months. Should the City Council terminate the Manager’s employment for other than cause, the Manager shall receive a cash payment equal to two (2) calendar months of compensation if the termination occurs after three (3) months but before six (6) months of employment. The City Council may evaluate the Manager’s performance before the end of the probationary period.

Section 3. Term.

A. This Agreement shall remain in effect beginning September __, 2006 and ending September __, 2010 in accordance with Sections 227 and 228 of the City Charter. During that period of time, the Manager’s appointment term shall be indefinite.

B. This Agreement may be terminated and the Manager removed from office by the Council pursuant to Section 228 of the City Charter. Unless the Manager is removed for just cause, the Manager shall receive severance benefits as provided in

Section 4 of this Agreement. Upon termination for just cause, the Manager shall not be entitled to salary or severance benefits after termination other than accrued vacation.

C. In the event the City seeks to terminate the Manager for cause, the Manager shall be entitled to due process rights in accordance with Section 228 of the City Charter.

Section 4. Termination and Severance Pay.

A. In the event the Manager is terminated by the City Council for other than cause, the City agrees to pay the Manager within thirty (30) days of said termination a cash payment equal to two (2) calendar months of compensation and all unused, accrued vacation time.

B. In the event that the City, at any time during the term of this Agreement, reduces the salary or other financial benefits of the Manager in a greater percentage than an applicable across-the-board reduction for all employees of the City, or in the event that the City unreasonably refuses upon written notice to comply with any other provision benefiting the Manager under this Agreement, the Manager may, at his option within 30 calendar days of the event, be deemed to be terminated for other than cause, and the severance pay provision as stated in this Agreement shall be applicable.

C. In the event the Manager voluntarily resigns his position with the City, then the Manager shall give the City not less than thirty (30) days written notice in advance, such notice to be directed to the Mayor of the City, with a copy to the City Clerk. If the Manager voluntarily resigns, he shall not be entitled to salary after the effective date of the resignation or to severance benefits, except he shall be paid for accrued, unused vacation and any sick days which have accrued and which other management employees receive.

Section 5. Salary.

A. The Manager’s starting salary shall be $104,000.00.

B. Effective July 1, 2007 and each July 1st thereafter, and presuming satisfactory service, the City agrees to pay the Manager a salary increase based on the salary increases given to other management employees for his services.

C. The Manager may be provided with such additional or further compensation above his base salary as may be voted by the City Council from time to time, based upon its annual performance evaluation and review of the Manager.

Section 6. Annual Performance Evaluation

A. The City Council shall review and evaluate the performance of the Manager annually during the month of September, or such other month as may be mutually agreed upon, commencing in 2007. This review and evaluation shall be in accordance with specific criteria developed jointly by the City Council and the Manager. These criteria may be added to or deleted from as the Council may from time to time determine, in consultation with the Manager. At the completion of the review and evaluation, the City Council shall provide the Manager with a summary written statement of the findings of the City Council and shall provide adequate opportunity for the Manager to discuss the review and evaluation with the City Council. The City Council may form a subcommittee to assist with the routine aspects of performance evaluation.

B. Annually, commencing prior to October 15, 2007, the City Council and the Manager shall define such performance objectives as they may determine necessary for the proper operation of the City and in attainment of the City Council’s policy objectives, and shall further establish a relative priority among those various objectives, these objectives to be reduced to writing. The objectives shall generally be attainable within the time limitations specified and the annual operating and capital budgets and appropriations provided.

C. In effecting the provisions of this section, the Council and the Manager mutually agree to abide by the provisions of applicable law.

Section 7. Hours of Work. It is recognized that the Manager must devote a great deal of time outside normal office hours to business of the City, and to that end, the Manager will be allowed to take reasonable compensatory time off as he shall deem appropriate during said normal office hours.

Section 8. Automobile. During the term in which the Manager is engaged in the performance of his duties and responsibilities pursuant to this Agreement, the City agrees to provide a five hundred dollar ($500.00) monthly allowance for automobile expenses in recognition of the requirements of the position. The City is under no obligation to reimburse the Manager for any automobile costs that exceed this amount, with the exception of gasoline and tolls for business travel outside the “greater Portland” area. Review of the adequacy of this monthly allowance will be done on an annual basis during budget review discussions.

Section 9. Dues and Subscriptions. The City hereby agrees to budget and pay the professional dues and subscriptions of the Manager necessary for his continuation and full participation in national, regional, state, and local associations and organizations, necessary and desirable for his continued professional participation, growth and advancement, and for the good of the City.

Section 10. Professional Development. The City hereby agrees to pay, within the budgetary constraints of the Manager’s professional development budget, the necessary expenses of Manager to continue his professional development and to adequately pursue official functions of the City, including but not limited to the annual conference of ICMA, the Maine Municipal Association, the Maine Town and City Managers Association, and other such national, regional and state governmental groups and committees.

Section 11. General Expenses – Expense Account. The City recognizes that certain expenses of a non-personal and generally job-affiliated nature are incurred by Manager, and hereby agrees to reimburse or to pay said reasonable expenses upon receipt of duly executed expense vouchers, receipts, statements, or personal affidavits.

Section 12. Holidays and Vacation.

A. The Manager shall receive twenty (20) work days vacation on an annual basis. The Manager shall not utilize vacation days beyond those accrued on a pro rata basis without consent of the City Council. The Manager will be able to carry-over/accrue unused vacation pursuant to the City’s vacation policy.

B. The Manager shall be entitled to the same paid holidays that other management employees receive.

Section 13. Sick Leave. The Manager will receive up to 15 paid sick days each year with unlimited accrual pursuant to the City’s standard sick leave policy.

Section 14. Health, Life, Dental and Disability Insurance.

A. The city agrees to provide to Manager and his dependents the same health, life, dental and disability insurance afforded to other City management employees upon commencement of employment. In the event that the Manager is terminated for other than cause, the City shall continue in force for the Manager and his dependents the health, life, dental and disability insurance afforded other City employees to equal the number of months that the severance payment will be made after termination unless such coverage has been provided to Manager without cost through new employment.

B. The City shall provide the same long-term disability insurance coverage to the Manager as is afforded to other City management employees upon commencement of employment. If the Manager becomes temporarily or permanently disabled, the City shall provide the Manager, directly or indirectly, those payments afforded to other City management employees. To the extent the Manager is provided payments and to the extent allowed by law, the Manager shall surrender to the City any worker’s compensation, accident, sickness, or other disability benefit received from the City or any of its insurers during the initial period.

Section 15. Deferred Compensation, Pension and Retirement Health Insurance.

A. The City shall execute the necessary agreement allowing the Manager to enroll in the International City Management Association’s Retirement Corporation’s 457 Deferred Compensation Plan. Effective _________________, the City agrees to match the employee contribution to the same extent as other City management employees. Payment of this sum is to be pro-rated in accordance with the City’s normal salary payment schedule.

B. The City shall allow the Manager to enroll and participate in the Maine State Retirement System in accordance with the same policies and contribution rate as afforded all other employees of the City. The total contribution shall not exceed any maximum established by law.

Section 16. Cell Phone and Internet Service. The City will provide the Manager with Cell Phone Service and Home Based Internet Service while actively employed as City Manager.

Section 17. Indemnification. The City agrees to indemnify the Manager as provided in the Maine Tort Claims Act, Title 14, Sections 8101 – 8118 of the Maine Revised Statutes.

Section 18. Outside Work. The Manager shall not spend more than an average of five (5) hours a week in teaching, consulting, or other non-City connected business, without the prior approval of the City Council.

Section 19. Bonding. The City shall bear the full cost of any fidelity or other bonds required of the Manager under any law or ordinance.

Section 20. Other Terms and Conditions. The City Council may fix such other reasonable terms and conditions of employment, as it may determine from time to time, relating to the Manager, provided such terms and conditions are not inconsistent with or in conflict with the provisions of the Agreement, the City Charter, or any other federal or state law.

Section 21. General Provisions.

A. The text of this written Agreement and any amendments approved by the City Council and executed by the Mayor and the Manager constitute the entire understanding between the parties with respect to the employment of Thaddeus J. Jankowski, Jr. as the City Manager of the City of South Portland.

B. This Agreement shall be binding upon the City and the Manager, and their heirs, successors, and assigns.

C. This Agreement shall become effective upon execution.

Section 22. Severability. If any provision of this Agreement is found to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable.

Section 23. Notices. Notices pursuant to this Agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:

1) City: Mayor

25 Cottage Road

South Portland, Maine 04106

2) Manager: City Manager

25 Cottage Road

South Portland, Maine 04106

Alternatively, notices required pursuant to this Agreement may be personally served in the same manner as is applicable to civil judicial practice or may be hand-delivered to the recipient. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.

IN WITNESS WHEREOF, the City of South Portland has caused this Agreement to be signed and executed on its behalf by its Mayor, and the Manager has signed and executed this Agreement on the date first above written.

___________________________________ ______________________________________

WITNESS Thaddeus J. Jankowski, Jr.

___________________________________ ______________________________________

WITNESS MAXINE R. BEECHER, MAYOR

CITY OF SOUTH PORTLAND, MAINE

Pursuant to vote of the City Council on ______

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