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The nature of municipal management has evolved, and the need for “professional” management continues to grow. Municipalities today are complex organizations operating under a wide array of local, state, and federal laws, as well as local policies, customs and traditions. Modern cities and towns, regardless of their formal structure, recognize the value and necessity of having a professional manager to facilitate the day-to-day operations and business of the municipal corporation. These communities seek to recruit and retain the most highly qualified professionals they
can afford. In turn, highly qualified municipal administrators seek to serve in communities that recognize the value of professional management, and that understand the importance of clearly defined terms of employment and service.
Written employment agreements are used to avoid misunderstandings on the part of either party. It is in the interests of both the community and the manager to have a written summary of terms and conditions of employment and service to which both parties have agreed. The stable working environment created by a formal agreement helps attract and keep top-flight managers in what has become an increasingly challenging profession with a shrinking pool of qualified candidates.
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Statutory authority for municipal manager employment agreements is provided in the Massachusetts General Laws, Chapter 41, Section 108N.
Chapter 41: Section 108N Town manager, administrator, executive secretary, or administrative assistant; employment contract
Section 108N. Notwithstanding the provision of any general or special law to the contrary, any city or town acting through its board of selectmen or city council or mayor with the approval of the city council, as the case may be, may establish an employment contract for a period of time to provide for the salary, fringe benefits, and other conditions of employment, including but not limited to, severance pay, relocation expenses, reimbursement for expenses incurred in the performances of duties or office, liability insurance, and leave for its town manager, town administrator, executive secretary, administrative assistant to the board of selectmen, town accountants, city auditor or city manager, or the person performing such duties having a different title.
Said contract shall be in accordance with and subject to the provisions of the city or town charter and shall prevail over any conflicting provision of any local personnel by-law, ordinance, rule, or regulation. In addition to the benefits provided municipal employees under chapters thirty-two and thirty-two B, said contract may provide for supplemental retirement and insurance benefits.
Nothing contained in this section shall affect the appointment or removal powers of any city or town over its town manager, town administrator, executive secretary, administrative assistant to the board of selectmen, town accountants, city auditor or city manager, or such person performing such duties with a different title, nor shall it grant tenure to such officer, nor shall it abridge the provisions of section sixty-seven of chapter forty-four.
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Typical Components of a Municipal Manager Employment Agreement
1. |
Salary |
2. |
Severance Pay |
3. |
Disability Insurance |
4. |
Indemnification |
5. |
Health Insurance |
6. |
Relocation Allowance |
7. |
Just Cause Protection |
8. |
Non-Renewal Notice |
9. |
Vacation Leave |
10. |
Benefits |
|
a. Sick Leave |
|
b. Life Insurance |
|
c. Personal Leave |
|
d. Bereavement Leave |
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e. Military Leave |
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f. Jury Leave |
|
g. Holidays |
11. |
Travel/Car Expenses |
12. |
Professional Memberships and Conferences |
13. |
Office/Town Business Expenses |
14. |
Description of Duties and Function |
15. |
Housing Allowance |
16. |
Contract Term |
17. |
Pension Supplements (Deferred Compensation) |
18. |
Professional Development |
19. |
Consulting and Teaching Activities |
20. |
Professional Evaluation |
21. |
Bonus |
22. |
Function |
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