H3. City Manager Employment AgreementCity of Kalispell
Jolmna Preble Office of City Attorney Tel 406.758.7709
City Attomey 201 First Avenue East Fax 406.758.7758
P.O. Box 1997 jpreble@kalispellxom
Kalispell, MT 59903-1997
MEMORANDUM
TO: Mayor Mark Johnson and Kalispell City Council
FROM: Johnna Preble, City Attorney
SUBJECT: Review and Approval of City Manager Employment Agreement
MEETING DATE: December 15, 2025 — Regular Council Meeting
BACKGROUND: Following the formal search to fill the vacant City Manager position, the City
Council interviewed one candidate and concluded that it wished to negotiate an employment
agreement with Jarod Nygren. Contract parameters were provided by council members to the Mayor
and City Attorney and discussions took place with Mr. Nygren. At the conclusion of the negotiations
the following salient terms were reached:
• Five year contract term
• $200,000.00 annual salary with no bonus alternatives
• $750 monthly vehicle allowance
• 10% contribution a 457 deferred compensation plan as well as continuation in the PERS system
• 100% paid health insurance for himself and family
• 24 months' salary severance in event of termination
• Credit for all sick and vacation leave previously accrued with the same accrual rate
• Wage increase based on average afforded other City employees
A copy of the negotiated employment agreement, signed by Mr. Nygren is attached hereto.
RECOMMENDATION: That City Council consider and approve the employment agreement with
Mr. Nygren.
ALTERNATIVES: The fiscal impacts are as set forth in the terms of the contract.
ATTACHMENT: City Manager Employment Agreement
CITY or F - �
KALISPELL
EMPLOYMENT AGREEMENT
EFFECTIVE DATE: This Agreement is dated as of December 15, 2025 (the "Effective
Date")
PARTIES: EMPLOYER
City of Kalispell
Kalispell City Council
201 I st Avenue East
Kalispell, MT 59903
EMPLOYEE
Jarod Nygren
201 1"Avenue East
Kalispell, MT 59903
THIS AGREEMENT is made and entered into, by and between the City of Kalispell, Montana, a
municipal corporation (`'Employer" or "City Council"), and Jarod Nygren ("Employee" or "City
Manager").
WITNESSETH:
WHEREAS, Employer desires to employ the services of said Jarod Nygren as City
Manager of the City of Kalispell; and
WHEREAS, it is the desire of City Council to provide certain benefits and to establish
conditions of employment of said Employee including inducements to continue employment; and
WHEREAS, Employer desires to establish an atmosphere which makes possible the
Employee's full productivity and at the same time ensures the Employee's future security by
establishing a clear mutual understanding as to pay and fringe benefits and providing a just and
proper means for terminating the services of the Employee if that action becomes necessary or
Nygren Employment Agreement Page 1 of 8
desirable;
NOW THEREFORE, IN CONSIDERATION of the mutual covenants herein contained, the parties
agree as follows:
1. Term and Employment Start Date
This agreement shall remain in full force in effect from the effective date of December 15, 2025,
for a period of five (5) years or until terminated by the Employer or Employee as provided in
Section 9 of this agreement. Employee's first date of employment shall be December 16, 2025.
2. Duties and Authority
Employer agrees to employ Jarod Nygren as City Manager to perform the functions and
duties specified in any relevant existing or future enactments of Municipal Code, Resolution,
City Charter, or state law governing the City of Kalispell and to perform other legally
permissible and proper duties and functions.
3. Compensation
A. Base Salary: Employer agrees to pay Employee an annual base salary of $200,000.00,
payable in installments at the same time that the other management employees of the
Employer are paid.
B. Employer agrees to increase the base salary on July 1 of each year by the rate of the
average increase afforded to employees of the municipality, inclusive of cost of living
increase and any step or merit increase. This agreement shall be automatically amended
to reflect the salary adjustments that are identified in this paragraph.
4. Health and Dental Insurance Benefits
The Employer agrees to pay 100% of the premium for health and dental insurance for the
Employee and his family. Employee's coverage and plan shall be the same as that of other
City of Kalispell employees.
5. Life Insurance
The Employer agrees to pay 100% of the premium for a $300,000 life insurance policy for
Employee with enrollment consistent with the guidelines and procedures of the life insurance
company and MMIA. Employee's coverage and plan shall be the same as that offered to other
City of Kalispell employees.
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6. Vacation and Sick Leave
A. Upon commencing employment, the Employee shall be credited with all sick and
vacation leave previously accrued in Employee's prior employment with Employer. The
Employee shall then accrue sick and vacation leave on an annual basis at the rate and
increase with which he previously accrued sick and vacation leave. Employee shall
continue to accrue sick and vacation leave in accordance with City of Kalispell policy and
state law.
B. In the event the Employee's employment is terminated, either voluntarily or involuntarily,
the Employee shall be compensated for all accrued leave, and other benefits to date in
accordance with City of Kalispell policy and state law.
7. Automobile- Monthly Vehicle Allowance
The Employer agrees to pay to the Employee, during the term of this Agreement and in
addition to other salary and benefits herein provided the sum of $750 per month, payable
monthly, as a vehicle allowance to be used to purchase, lease, or own, operate and maintain
a vehicle. The Employee shall be responsible for paying for liability, property damage, and
comprehensive insurance coverage upon such vehicle and shall further be responsible for all
expenses attendant to the purchase, operation, maintenance, repair, and regular replacement
of said vehicle. The Employer shall reimburse the Employee at the IRS standard mileage rate
for any business use of the vehicle that requires travel outside of Flathead County.
8. Retirement
Employer agrees to execute all necessary agreements provided by MissionSquare or other
Section 457 deferred compensation plan for Employee's continued participation in said
supplementary retirement plan and, in addition to the base salary paid by the Employer to
Employee, Employer agrees to pay an amount equal to 10% of Employee's base salary or
maximum dollar amount permissible under Federal and state law, whichever is less, into the
designated plan on the Employee's behalf, in equal proportionate amount each pay period.
The City will also provide Employee the same retirement program through Montana Public
Employees Retirement Administration as is provided to other City employees.
9. General Business Expenses
a. Employer agrees to budget for and to pay for professional dues and subscriptions of the
Employee necessary for continuation and full participation in national, regional, state, and
local associations, and organizations necessary and desirable for the Employee's continued
professional participation, growth, and advancement, and for the good of the Employer.
b. Employer agrees to budget for and to pay for registration, travel and subsistence
expenses of Employee for conference and training sessions necessary to obtain/maintain
the International City/County Management Association Certified Manager Certification
and the Certified Public Finance Officer Certification. This includes attendance at the
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ICMA and GFOA Annual Conferences.
c. Employer agrees to budget for and to pay for travel and subsistence expenses of
Employee for professional and official travel, meetings, and occasions to adequately
continue the professional development of Employee and to pursue necessary official
functions of Employer, including, but not limited to the state league of municipalities, and
such other national, regional, state, and local governmental groups and committees in which
Employee serves as a member, institutes, and seminars that are necessary for the Employee's
professional development and for the good of the Employer.
d. Employer agrees to budget for and to pay for annual dues and participation
expenses of Employee to become a member of one local service organization.
10. Termination
For the purpose of this agreement, termination shall occur when:
a. A super majority of the full governing body votes to terminate the Employee at a
duly authorized public meeting.
b. If the Employer, citizens or legislature acts to amend any provisions of City Charter,
Municipal Code, or enabling legislation pertaining to the role, powers, duties, authority,
responsibilities of the Employee's position that substantially changes the form of
government or Employee's working conditions, the Employee shall have the right to
declare that such amendments constitute termination.
c. If the Employer reduces the base salary, compensation or any other financial benefit of
the Employee, such action shall constitute a breach of this agreement and will be
regarded as a termination.
d. If the Employee resigns following an offer to accept resignation, whether formal or
informal, by the Employer as representative of the super majority of the governing body,
then the Employee may declare a termination as of the date of the suggestion.
e. Breach of contract declared by either party with a 30-day cure period for either
Employee or Employer. Written notice of a breach of contract shall be provided in
accordance with the provisions of Section 19.
11. Severance
Severance shall be paid to the Employee when employment is terminated as defined in Section 9.
If the Employee is terminated, the Employer shall provide a minimum severance payment
equal to twenty-four (24) month's salary at the current rate of pay and health insurance as
provided in Section 4. This severance shall be paid in a lump sum or in a continuation of
salary on the existing biweekly basis, at the Employee's option. Vacation and sick leave
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accruals will cease upon termination.
The Employee shall also be compensated for all accrued sick leave and vacation time in
accordance with City of Kalispell policy and state law.
The following are circumstances where the Employer is not required to provide severance
pay under this agreement:
l . If the Employee is terminated because of a conviction of a felony;
2. death;
3. disability for more than 6 months;
4. malfeasance in office;
5. abuse of public office for personal gain.
12. Resignation
In the event that the Employee voluntarily resigns his/her position with the Employer, the
Employee shall provide a minimum of 60 days' notice unless the parties agree otherwise.
13. Performance Evaluation
The full Council shall annually review the performance of the Employee using the standard
evaluation process provided by City of Kalispell policy. Such evaluation shall occur in
December of each year during an executive session of Council. The process at a minimum
shall include the opportunity for the Employer to: (1) prepare a written evaluation, (2) meet
and discuss the evaluation, and (3) present a written summary of the evaluation results. The
final written evaluation shall be completed and delivered to the Employee within 30 days of
the evaluation meeting.
14. Hours of Work
It is recognized that the Employee must devote a great deal of time outside the normal office
hours on business for the Employer, and to that end, Employee shall be allowed to establish
an appropriate work schedule, though it is generally expected that the Employee is available
during normal business hours.
15. Outside Activities
The employment provided for by this Agreement shall be the Employee's primary
employment. Recognizing that certain outside consulting or event promotion opportunities
provide indirect benefits to the Employer and the community, the Employee may elect to
accept limited consulting or event promotion opportunities with the understanding that such
arrangements shall not constitute interference with or a conflict of interest with his
responsibilities under this Agreement.
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16. Residency
Employee agrees to maintain residence within the boundaries of Flathead County.
17. Indemnification
Beyond that required under Federal, State or Local Law, Employer shall defend, save
harmless and indemnify Employee against any tort, professional liability claim or demand
or other legal action, whether groundless or otherwise, arising out of an alleged act or
omission occurring in the performance of Employee's duties as City Manager or resulting
from the exercise of judgment or discretion in connection with the performance of program
duties or responsibilities, unless the act or omission involved willful or wanton conduct.
The Employee may request, and the Employer shall not unreasonably refuse, to provide
independent legal representation at Employer's expense and Employer may not
unreasonably withhold approval. Legal representation, provided by Employer for
Employee, shall extend until a final determination of the legal action including any appeals
brought by either party. The Employer, other than in an action brought by the City against
the Employee, or an action filed against the City by the Employee, shall indemnify
Employee against any and all losses, damages, judgments, interest, settlements, fines, court
costs and other reasonable costs and expenses of legal proceedings including attorneys'
fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee in
connection with or resulting from any claim, action, suit, or proceeding, actual or
threatened, arising out of, or in connection with, the performance of his or her duties. Any
settlement of any claim must be made with prior approval of the Employer in order for
indemnification, as provided in this Section, to be available.
Employee recognizes that Employer shall have the right to compromise and unless the
Employee is a party to the suit which Employee shall have a veto authority over the
settlement, settle any claim or suit; unless, said compromise or settlement is of a personal
nature to Employee.
Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout
the pendency of any litigation to which the Employee is a party, witness or advisor to the
Employer. Such expense payments shall continue beyond Employee's service to the
Employer as long as litigation is pending. Further, Employer agrees to pay Employee
reasonable consulting fees and travel expenses when Employee serves as a witness, advisor
or consultant to Employer regarding pending litigation.
18. Bonding
Employer shall bear the full cost of any fidelity or other bonds required of the Employee
under any law or ordinance.
19. Other Terms and Conditions of Employment
The Employer, only upon agreement with Employee, shall fix any such other terms and
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conditions of employment, as it may determine from time to time, relating to the performance
of the Employee, provided such terms and conditions are not inconsistent with or in conflict
with the provisions of this Agreement, the City of Kalispell Code, Charter, or any other law.
Except as otherwise provided in this Agreement, the Employee shall be entitled to the
highest level of benefits that are enjoyed by other appointed officials, appointed employees,
department heads or general employees of the Employer as provided in the Charter, Code,
Personnel Rules and Regulations or by practice.
20. Notices
Notice pursuant to this Agreement shall be given by depositing in the custody of the United
States Postal Service, postage prepaid, addressed as follows:
EMPLOYER: City of Kalispell;
EMPLOYEE: JarodNygren, City Manager; City of Kalispell;
Alternatively, notice required pursuant to this Agreement may be personally served in the
same manner as is applicable to civil judicial practice. Notice shall be deemed given as of
the date of personal service or as the date of deposit of such written notice in the course of
transmission in the United States Postal Service.
21. General Provisions
a. Integration. This Agreement sets forth and establishes the entire understanding between
the Employer and the Employee relating to the employment of the Employee by the
Employer. Any prior discussions or representations by or between the parties are merged
into and rendered null and void by this Agreement. The parties by mutual written agreement
may amend any provision of this agreement during the life of the agreement. Such
amendments shall be incorporated and made a part of this agreement.
b. Binding Effect. This Agreement shall be binding on the Employer and the Employee as
well as their heirs, assigns, executors, personal representatives and successors in interest.
c. Effective Date. This Agreement shall become effective on December 15, 2025.
d. Severability. The invalidity or partial invalidity of any portion of this Agreement will
not affect the validity of any other provision. In the event that any provision of this
Agreement is held to be invalid, the remaining provisions shall be deemed to be in full
force and effect as if they have been executed by both parties subsequent to the
expungement or judicial modification of the invalid provision.
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IN WITNESS THEREOF, the Parties have executed this Agreement as of the date first above
written.
THE CITY:
Mark Johnson, Mayor
Attest:
Aimee Brunckhorst, City Clerk
EMPLOYEE:
(::Z-V�2 514A-�-
Jar d Nygren
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