Michelle Rhee
Employment contract as Chancellor, DCPS
July 3, 2007

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DCWatch Home

July 3, 2007

Ms. Michelle Rhee

Dear Ms. Rhee:

This letter confirms the terms and conditions of your appointment as Chancellor for the District of Columbia Public Schools, in accordance with the Public Education Reform Amendment Act of 2007 (the "Act"). I am also providing you with basic information on Executive Service appointments and requesting that you indicate your acceptance of the terms of your appointment by signing the letter.

1. Your appointment as Chancellor will commence on June 12, 2007, and is for a term of four (4) years. Your appointment may be extended for an additional year, pending the incumbent Mayor’s re-election and acceptable performance. This is an Executive Service position, and as such, is subject to confirmation by the Council of the District of Columbia. Your "acting" appointment will end once Council confirmation is obtained. You will serve at the pleasure of the Mayor.
2. Your compensation will be at an annual salary of $275,000 per year and will be retroactive to the date of your appointment. Your salary will not decrease during your appointment. You will receive a signing bonus of $41,250 to be paid within thirty (30) days after Council confirmation.
3. You will be eligible to receive health and life insurance, retirement benefits and earn 26 days of universal leave per year. Additionally, you will be granted 4 days of paid administrative leave per year.
4. You will be eligible for an annual performance incentive bonus, not to exceed 10% of base pay based upon your effectiveness in specific performance goals identified by the Mayor, in the areas of Student Academic Achievement and Improvement, Financial Systems and Management; School Facilities Maintenance, Improvement and New Construction; Student and Staff Safety and Security; Staff Improvement; Communications with Community and Families; and Technology. A mutually agreed upon evaluation plan will be developed with sixty (60) days after the beginning of each year. The performance evaluation plan shall be used to determine your entitlement to the performance incentive.
5. You shall be reimbursed for all reasonable expenses that were/are incurred relative to your recruitment and/or the assumption of your official duties, including travel, lodging, meals, communication and supplies. You shall also be reimbursed for temporary lodging for a period up to six (6) months or until you find a permanent residence within the District. You shall also be reimbursed for actual out-of-pocket expenses for a moving company to pack, transport, unpack and relocate you and your family’s possessions to the region and are obligated to obtain at least two quotes from reputable moving firms and use the company giving the lesser quote.
6. You shall serve at the pleasure of the Mayor and may be removed in accordance with the Act. In the event that your employment is terminated for any reasons other than (i) criminal conduct, (ii) gross dereliction of duty or (iii) gross misconduct, you shall be entitled to a severance payment of up to 12 weeks of your base salary, plus any accrued leave, as well as an additional 12 weeks of administrative pay. Additionally, should you choose to terminate your appointment for a good cause, you shall receive a severance payment of up to 12 weeks of your base salary, plus any accrued leave, as well as an additional 12 weeks of administrative pay.
7. The Excepted and Executive Service Domicile Requirement Amendment Act of 2002, effective October 1, 2002, requires each Excepted Service appointee to be domiciled in the District of Columbia at the time of appointment or within 120 days of appointment, and to maintain such domicile for the duration of the appointment. A personal nominated to serve in an Acting or Interim capacity in an Executive Service position requirement confirmation by the Council is not subject to the domicile requirement until after confirmation by the Council and promulgation of a Mayor’s Order or a personnel action appointment him or her to the position.
8. A person accepting appointment is required to complete a Form I-9, Employment Eligibility Verification, under the requirements of the Immigration Reform and Control Act of 1986. This form must be completed when you are firm employed. At that time, you will be asked to provide original documents that establish your identity and employment eligibility. We will make copies of your documents for our records and return the originals to you.
9. If you accept this position, and are an annuitant under any District government civilian retirement system, your pay will be reduced by the amount of annuity applicable to this period of employment.
10. Irrespective of any performance-based bonus or salary increases, you will receive an annual cost-of-living adjustment.
11. You and/or your estate will be indemnified, defended, and held harmless from any and all demands, claims, damages, suits, actions, and legal proceedings brought against you, whether in your individual or official capacity, for any incident or activity arising out of or in the course of your employment, including any liability arising from the use of the school system’s vehicles in the course of your employment, so long as you conduct yourself in good faith and or not intentionally tortious or in violation of a criminal statute. Such indemnity shall include the costs and attorney’s fees reasonably required to effectuate this provision. This indemnity provision shall survive the termination of this Agreement.
12. You will receive the most favorable pension available to any DCPS official.
13. During the term of this Agreement, the District shall provide you with an appropriate vehicle and a driver for school district business in and around the District. In the event you need to travel more than 25 miles outside the District on school business, you may rent an automobile and shall be reimbursed the cost of rental, or may use your personal automobile and shall be reimbursed at a per mile rate equal to maximum rate allowed by the Internal Revenue Service. Where appropriate, you may use air or train transportation at the District’s expense.
14. It is mutually agreed that if any part of this Agreement or any addenda or amendments hereto are held by a court of competent jurisdiction to be invalid, void, or voidable for any reason, then that portion shall be severed from the remained of the Agreement, and this Agreement shall be interpreted as if such invalid term or covenant were not contained herein, and such term or covenant shall not void or negate the obligations and rights arising out of any other part of the Agreement.
15. All changes, amendment, and modifications to this Agreement shall be in writing and executed by both you and the Mayor. Subject to the laws of the District of Columbia including, but not limited to, the inclusion of any District government financial obligations in the annual Congressional appropriation of District expenditures, this constitute the entire agreement between the parties.

If the terms of this appointment are acceptable, please sign and return this letter to Peter J. Nickles, General Counsel to the Mayor, by fax at (202) 724-7743, or via e-mail at peter.nickles@dc.gov, at your earliest convenience.

We look forward to having you join our team, and we trust that you will find this Agreement acceptable.

Sincerely,

Adrian M. Fenty
Mayor

Accept: Michelle Rhee
Date: July 3, 2007
I accept this position and I understand and accept the conditions of employment to include the Domicile Requirement.

cc: Daniel Tangherlini, City Administrator, Office of the City Administrator
Official Personnel Action