Negotiating the Superintendent s Contract. Presented by Rhonda Crass & Rick Hill

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1 Negotiating the Superintendent s Contract Presented by Rhonda Crass & Rick Hill

2 ADAMS, LYNCH & LOFTIN, P.C. A Texas professional corporation Attorney for the District Rhonda Crass Shareholder 302 W. Broad Street Mansfield, Texas fax rhonda@leasorcrass.com Attorney for TASA Richard E. Hill Attorney 3950 State Hwy 360 Grapevine, Texas fax reh@all-lawfirm.com

3 Agenda The Superintendent Search Process 1 The board decides on the search firm. 2 The board has meetings to determine its criteria. 3 4 Candidates submit bios and are screened. Candidates are interviewed for Superintendent position Superintendent is named lone finalist. Superintendent s contract is negotiated. Board hires Superintendent.

4 The Lawyers Their Respective Roles Superintendent s lawyer Protecting your interest. Getting you the best deal. School district s lawyer Protecting the interest of the board/district. Getting the district the best deal.

5 A New Contract When should you get one? Upon initial hiring. Any time the terms are changed from the previous contract.

6 Miscommunication Where the train starts to initially derail. The Search Consultant 1 The Board 2 Usually will ask the Board to set a range of salary based on experience, e.g., $150,000 - $180,000. The range is interpreted by the Board to mean the Superintendent s total package. The top end of the range includes all other benefits. The Superintendent With the initial contract, communication with the Board and the Superintendent is essential in establishing the parameters of the contract. The compensation package is often the most misunderstood issue when negotiating the contract. 3 The range is interpreted by the Superintendent to mean the base salary that the board is offering. The top end of that range is often not included in the Superintendent s desire to obtain other benefits.

7 The Contract Who represents whom? The Search Consultant The Board The Superintendent 1 This group or individual represents itself. Its job is to bring candidates to the board for review and assist in the selection of the new superintendent. The consultant is hired by the board. The consultant should not be involved in the contract negotiations unless the board has asked the law firm to assist with the search. Remember the lawyer works for the board. 2 The Board is normally represented by a lawyer. Depending on the sophistication of the board, the relationship the board has with its attorney and its willingness to spend legal fees will often determine the Board s involving its lawyer in the formation of the contract. This lawyer works for the Board and does not represent the Superintendent. 3 You should retain your own counsel to review the contract. This is the person who will represent the Superintendent in the negotiations and will also look out for the Superintendent s best interest. This is an out of pocket expense to the Superintendent but is well worth it in the end.

8 The Term Section 1 Length of the Contract One to five years Beginning date and ending date Tenure No tenure in Texas

9 Employment Section 2 1 Duties listed out even though spelled out in the Education Code 2 Professional Certification 3 Reassignment Boards never want this in the contract. No Superintendent will agree to it without its inclusion in the contract. 4 Attendance at Board meetings. 5 Criticisms, complaints and suggestions lays out the expectations for everyone s behavior. 6 Indemnification E&O policy is pretty specific but again lays out the expectations. 7 Residence requirement.

10 Compensation Section 3 Salary The base salary of what the Superintendent will be paid (the monthly check). Issues Board Mindset Community Perception Employee Perception

11 Salary Adjustments Section 2 Step 1 Agree not to lower. Step 2 New RIF provisions. Step 3 Can change midyear with a new contract.

12 The Days Vacation Board Policy will usually set this out. How will you keep track of this amount of time? i Holiday Days the District is closed. Personal Leave Not much different than vacation. Includes sick days. 12 month employee vs duty days. Is it use it or lose it?

13 Insurance Section 3 Health Under the Affordable Health Care Act, Districts now usually only provide to the Superintendent the same health care benefits that are provided to all contract employees. Dental Vision

14 Professional Growth & Development Memberships and Dues If you are not in your District, who is running the District vs. If you are not learning, how will your district grow? TASA AASA TAS/ MUS CQL Leadership Baldridge

15 Other Benefits Section 4 Civic Activities Outside consultant activities Expenses

16 Media & Communication Expenses Cell Phone Personal and professional use Ipad Wifi Laptop computer Data plan

17 Performance Incentives & Retirement 403 B and 401 K Longevity / Golden Handcuffs Performance based incentives This is a creative area for you to increase your pay as time goes by and depending on the needs of the Superintendent and the Board.

18 Moving/Relocation Section 5 Moving Cost of the move Lump sum vs. actual Temporary Housing When do they want you? Any days prior to the contract?

19 Goals and Performance Never an issue until it s an issue. Develop Goals Time and basis Format

20 Extension & Termination Extension 1 We all agree that Chapter 21 provisions are applicable. Termination 2 Death, Retirement or Mutual Agreement Reasons for Termination 3 Good cause and usually lists them out. Difficulty comes in the subjective good cause reasons.

21 Addendums New vs. add-ons New contracts keep things simple. New contracts allow you to address other issues. Money and terms are good reasons for new contracts. Additional benefits are good reasons for new contracts. The cost of an addendum is no different than the cost of a new contract. Board president should communicate with attorney. Superintendent should communicate with his/her attorney.

22 Killing the Deal Attorney issues Value Ego $$$

23 The Buyout Points to Ponder Know before the meeting if your contract will be extended. If not, contact your attorney. A contract above one year is really only good for one year.

24 Issues to Address Ending the Contract Learn to count to four. A buy-out doesn t mean you are a bad superintendent. A superintendent can t be effective without support of a majority of the board.

25 THANK YOU!