The Steamboat Springs City Council on Tuesday approved an employment contract for the appointment of new city manager Tom Leeson. 

Tasha Murphy, city human resources and risk director, presented the agenda item at council’s regular Tuesday night meeting. The council had interviewed finalist candidates on Feb. 14 and subsequently directed negotiations with Leeson as the leading candidate. The proposed contract was presented for approval, with a notable addition regarding health care benefits in the form of Continuation of Health Coverage or COBRA payments.

Murphy explained that the agreement, set to begin March 10, includes an annual salary of $235,000, severance pay of six months’ gross salary at $117,500, and yearly performance reviews. The contract also stipulates monthly allowances of $500 for car use and $100 for cell phone expenses, which Murphy noted are the same allowances received by former city manager Gary Suiter. 

Acknowledging his prior service to the city, Leeson will earn the maximum accrual level for paid time off and holidays, added Murphy. The city will contribute 10% of his gross salary to a retirement plan, and he will receive an annual allowance of $2,500 for dues and subscriptions. There is also a residency requirement stating that Leeson must live within a 30-minute drive of City Hall.

Council sought clarification on various aspects of the contract. Council member Bryan Swintek inquired about the duration and estimated value of the COBRA payments. Murphy explained the payments would last up to six months, terminating earlier if new coverage is obtained, with an estimated range of $12,000 to $18,000 depending on the selected plan.

Council members Joella West and Amy Dickson emphasized the importance and standard practice of including COBRA coverage in executive contracts across various sectors.

Dan Foote, city attorney, clarified a point about performance evaluations, mentioning that language had been added to address Leeson’s request for a six-month review in addition to an annual evaluation. This adjustment aimed to ensure clarity in the review schedule moving forward.

With no members of the public coming forward to comment, the council voted to approve the contract.

Council President Gail Garey concluded the agenda item with a statement congratulating Leeson on his appointment as city manager. She expressed gratitude to the city staff, including Murphy and Foote, as well as Columbia Recruiting, for efforts in conducting a thorough nationwide search.

“We also want to take this opportunity really to express our gratitude to all of those who applied to potentially serve our community, as well as thank all of the community members who came out and participated in the meet-and-greet,” Garey said. “They took the time to meet the city manager finalists and … to write comments and give us their input, which was invaluable … in terms of providing that input to council, which we took into consideration during our deliberations on Friday.”

Garey also addressed concerns about the time and resources invested in the national search, explaining that it was necessary for compliance with the Equal Pay for Equal Work Act and to ensure a fair and competitive process.

“We very much appreciate you stepping up into this new role,” Garey said of Leeson. “Your previous experience, your knowledge, your lived experience, and here in Steamboat as well as the Yampa Valley, we think, uniquely qualifies you to lead city staff and to support council and our work collectively to meet our community’s needs and priorities. So thank you, and again, we look forward to working with you.”