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7 - ICMA AgreeV8-CC wsCASAclean-3 (2) EMPLOYMENT AGREEMENT BETWEEN CITY OF SOUTH MIAMI, FLORIDA, AND STEVEN ALEXANDER This Agreement, made and entered into this JUNE ___, 2013, by and between the City of South Miami, Florida, a municipal corporation, (hereinafter called ”City ”) and Steven Alexander, (hereinafter called “City Manager”), an individual who has the education, training and experience in local government management and who, as a member of the International City/County Management Association (ICMA), is subject to the ICMA Code of Ethics, both of whom agree as follows: Section 1: Term A. The term of this Agreement shall be for an initial period of two (2) years from JUNE ___, 2013, to JUNE ___, 2015, and, after the first year, the City shall have the option to add two (2) additional years to the term of this contract. In the event that the City Manager is terminated, as defined in Section 9 of this Agreement, the City Manager shall be entitled to all compensation that shall include salary, accrued vacation and car allowance. This compensation shall be paid in a lump sum or, at the City’s option, in a continuation of salary, on the existing [biweekly/monthly] basis, up until the date of termination. Section 2: Duties and Authority A. The City agrees to employ Steven Alexander as City Manager to perform the functions and duties specified in Article III, Section 5 of the Charter for the City of South Miami and to perform other legally permissible and proper duties and functions without interference. B. The City Manager is the chief executive officer of the City and shall faithfully perform the duties as prescribed in the job description as set forth in the City’s charter and/or ordinances and as may be lawfully assigned by the City and shall comply with all lawful governing body directives, county, state, and federal law, City policies, rules and ordinances as they exist or may hereafter be amended. C. Specifically, it shall be the duty of the City Manager to employ on behalf of the City all other employees of the organization consistent with the policies of the governing body and the ordinances and charter of the City. D. It shall also be the duty of the City Manager to direct, assign, reassign, and evaluate all of the employees of the City consistent with policies, ordinances, charter, state and federal law. E. It shall also be the duty of the City Manager to organize, reorganize, and arrange the staff of the City and to develop and establish internal regulations, rules, and procedures which the City Manager deems necessary for the efficient and effective operation of the City consistent with the lawful directives, policies, ordinances, city charter, county, state and federal law. F. It shall also be the duty of the City Manager to accept all resignations of employees of the City consistent with the policies, ordinances, charter, county, state and federal law, except the City Manager‘s resignation which must be accepted by the governing body, if any. G. The City Manager shall perform the duties of city manager of the City with reasonable care, diligence, skill and expertise. Page 2 of 8 H. All duties assigned to the City Manager by the governing body shall be appropriate to and consistent with the professional role and responsibility of the City Manager. I. The City Manager cannot be reassigned from the position of City Manager to another position without the City Manager’s express written consent. J. The City Manager or designee shall attend, and shall be permitted to attend, all meetings of the governing body, both public and closed, or otherwise consistent with state law. K. The governing body, individually and collectively, shall refer in a timely manner all substantive criticisms, complaints and suggestions called to their attention to the City Manager for study and/or appropriate action. Section 3: Compensation A. Base Salary: City agrees to pay City Manager an annual base salary of $175,000, payable in installments at the same time that the other management employees of the City are paid. B. This Agreement shall be automatically amended to reflect any salary adjustments that are provided or required by the City 's compensation policies to include all salary adjustments on the same basis as applied to the executive classification of employees. C. The City shall provide a fixed annual increase in the City Manager’s salary which shall be based on the change, if any, in the South Florida Consumer Price Index issued by the U.S. Department of Labor in August of each year. In addition, the City may further increase the compensation of the City Manager, depending on the results of the performance evaluation conducted under the provisions of Section 12 of this Agreement. D. At any time during the term of the Agreement, the City may, in its discretion, review and adjust the salary of the City Manager, but in no event shall the City Manager be paid less than the salary set forth in Section 3.A. including increases as provided in this section of the Agreement, except by mutual written agreement between the City Manager and the City. Such adjustments, if any, shall be made pursuant to a lawful governing body action. In such event, the City and the City Manager agree to provide their best efforts and reasonable cooperation to execute a new agreement incorporating the adjusted salary. E. Except as otherwise provided in this Agreement, the City Manager shall be entitled, at a minimum, to the highest level of benefits enjoyed by and/or available to other employees, department heads or general employees of the City as provided by the City’s policies, charter, ordinances, or personnel rules and regulations or other practices. Section 4: Health, Disability and Life Insurance Benefits A. The City agrees to provide and to pay the premiums for health, hospitalization, surgical, vision, dental, and comprehensive medical insurance for the City Manager and his/her dependents, at a minimum, equal to that which is provided to all other employees of the City. In the event no such plan exists, the City agrees to provide coverage for the City Manager and dependents in a manner mutually agreed upon by the City and the City Manager. B. The City agrees to put into force and to make required premium payments for short-term and long-term disability coverage for the City Manager. Page 3 of 8 C. The City shall pay the amount of premium due for term life insurance in the amount of two (2) times the City Manager’s annual base salary, including all increases in the base salary during the life of this Agreement. The City Manager shall name the beneficiary of the life insurance policy. Section 5: Vacation and Sick Upon commencing employment, the City Manager shall be allowed to use all of his first year vacation leave before it is accrued but should he leave before the end of the first year the unaccrued leave shall be paid back to the City or debited from any amount owed to the City Manager. Beginning the first day of employment, the City Manager may use his sick leave before it accrues and it shall accrue at the rate of one (1) day per month. Vacation leave shall accrue at the rate of four (4) weeks per year at a minimum. The City Manager shall be entitled to accrue and retain, at the termination of this Agreement, up to eight (8) weeks of accrued vacation leave. Section 6: Automobile The City agrees to pay to the City Manager, during the term of this Agreement and in addition to other salary and benefits herein provided, the sum of $600 per month, payable monthly, as a vehicle allowance that may be used to purchase or lease, and to operate and maintain a vehicle. The monthly allowance shall be changed annually by the change in the South Florida Consumer Price Index. The City Manager shall be responsible for paying for his own insurance, including liability, property damage, and comprehensive insurance coverage upon such vehicle and shall further be responsible for all other expenses attendant to the purchase, lease, operation, maintenance, repair, and regular replacement of said vehicle. The City shall reimburse the City Manager at the IRS standard mileage rate for any business use of the vehicle beyond the South Florida area. For purposes of this Section, use of the car within the South Florida area is defined as travel to locations within a 100-mile radius of city hall. Section 7: Retirement The City agrees to pay an amount equal to fourteen 14 percent (14%) into a retirement plan, designated by the City Manager and on the City Manager’s behalf, in equal proportionate amounts each pay period. Section 8: General Business Expenses A. The City may budget and pay for professional dues, travel, short courses, and seminars. B. The City recognizes that certain expenses of a non-personal but job-related nature are incurred by the City Manager, and agrees to reimburse or to pay said general expenses. Such expenses may include meals where the City business is being discussed or conducted and participation in social events of various organizations when representing the City. Such expenditures shall not exceed five hundred dollars ($500)/month. The cap may be adjusted by the City Commission in each annual budget to reflect changes in the consumer price index, subject to annual budget constraints, as well as state and City ethics and purchasing policies. The finance director is authorized to disburse such moneys upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits. C. The City may budget for the reasonable membership fees and/or dues to enable the City Manager to become an active member in local civic clubs or organizations and, if budgeted, the City Manager may expend such budgeted amount for such memberships and dues. D. Recognizing the importance of constant communication and maximum productivity, the City shall provide the City Manager, for business and personal use, a laptop computer, software, and a monthly allowance of one hundred fifty dollars ($150) for mobile phone and fifty dollars Page 4 of 8 ($50) internet connection at the City Manager’s permanent residence, and mobile phone for business and personal use required for the City Manager to perform his duties and to maintain communication with the City ’s staff and officials as well as other individuals who are doing business with the City. Upon termination of the City Manager’s employment, the equipment described herein shall become the property of the City Manager and at the discretion of the City Manager any mobile phone number shall be transferred to the City Manager. Section 9: Termination A. For the purpose of this Agreement, termination shall occur: 1. If a majority of the governing body votes to terminate the City Manager without cause in accordance with this Agreement at a properly posted and duly authorized public meeting. 2. If any provisions of the charter or code of ordinances pertaining to the role, powers, duties, authority and responsibilities of the City Manager’s position that substantially changes the form of government, the City Manager shall have the right to declare that such amendments constitute termination. 3. If the City reduces the base salary, compensation or any other financial benefit of the City Manager, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Agreement and will be regarded as a termination. 4. The City shall not reduce the base salary, compensation or any other financial benefit of the City Manager and, if it does, such action shall constitute a breach of this Agreement and will be regarded as a termination unless the City enacts salary reductions for Department heads and general employees to the same extent. In the latter event, the City Manager’s salary may be reduced accordingly and such event shall not be an event of termination or breach. 5. If the City Manager resigns following an offer to accept resignation, by resolution of the majority of the governing body that the City Manager resign, then the City Manager may resign and declare a voluntary termination as of the date of the suggestion. 6. Substantial Breach of Contract. Written notice of a breach of contract shall be provided in accordance with the provisions of Section 19 except when intentional breach by the City Manager is verified. 7. City Manager is found to have committed the offenses authorizing termination for cause as set forth and defined in Section 10. Section 10: Severance Severance shall be paid to the City Manager when employment is terminated as defined in Section 9, unless termination is for cause. When severance is owed, the City shall provide a minimum severance payment equal to four (4) months salary at the then current rate of pay. This severance shall be paid in a lump sum or in a continuation of salary on the existing biweekly basis, at the City’s option. A. The City Manager shall also be compensated for all sick leave, vacation leave, and all paid holidays, including that which accrues or would have accrued during that severance period of Page 5 of 8 time. The City agrees to make a contribution to the City Manager’s retirement account or plan that is in effect on the date of termination, which shall include in its calculation the value of this compensation in addition to current annual salary of the City Manager at the date of termination during the severance period. If the amount of the contribution under this Section exceeds the limit under the Code for a contribution to the retirement account or plan, the remainder shall be paid to the City Manager in a lump sum as taxable compensation. B. For the severance period following termination, the City shall pay the cost to continue the following benefits: 1. Health insurance for the City Manager and all dependents as provided in Section 4 A, after which time, City Manager will be provided access to health insurance pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) 2. Life insurance as provided in Section 4 D 3. Short-term and long-term disability as provided in Section 4 B 4. Car allowance 5. Any other available benefits. If the City Manager is terminated "for cause", which shall be defined as an act of fraud, dishonesty or conviction of any criminal act (except for minor traffic infractions), including a felony conviction, or due to a substantial breach as in Section 9 above, then the City is not obligated to pay severance under this section. Section 11: Resignation In the event that the City Manager voluntarily resigns his position with the City, the City Manager shall provide a minimum of thirty (30) days’ notice unless the City and the City Manager agree otherwise. Section 12: Performance Evaluation A. The City may annually review the performance of the City Manager in May of each year, in accordance with the process, form, criteria, and format for the evaluation, which shall be mutually agreed upon by the City and the City Manager. B. The annual evaluation process, at a minimum, shall include the opportunity for both parties to: (1) conduct a formulary session where the governing body and the City Manager meet first to discuss goals and objectives of both the past twelve (12) month performance period as well as the upcoming twelve (12) month performance period; (2) following that formulary discussion, prepare a written evaluation of goals and objectives for the past and upcoming year, (3) next meet and discuss the written evaluation of these goals and objectives; and, (4) present a written summary of the evaluation results to the City Manager. The final written evaluation, prepared by each commission member individually, shall be completed and delivered to the City Manager and the City Clerk within thirty (30) days of the initial formulary evaluation meeting, if any. Section 13: Hours of Work It is recognized that the City Manager must devote a great deal of time outside the normal office hours on business for the City, and to that end City Manager shall be allowed to establish an appropriate work schedule. The schedule shall be appropriate to the needs of the City and shall allow the City Manager to faithfully perform his assigned duties and responsibilities. Section 14: Ethical Commitments The City Manager will at all times uphold the tenets of the ICMA Code of Ethics, a copy of which is attached hereto and incorporated herein. Specifically, the City Manager shall not endorse candidates, make financial contributions, sign or circulate petitions, or participate in fund-raising Page 6 of 8 activities for individuals seeking or holding elected office, nor seek or accept any personal enrichment or profit derived from confidential information or misuse of public time. Provided, however, the City Manager may attend fundraisers for issues or candidates, excluding City of South Miami issues or Mayor/Commission seats. The City shall support the City Manager in keeping these commitments by refraining from any order, direction or request that would require the City Manager to violate the ICMA Code of Ethics. Specifically, neither the governing body nor any individual member thereof, shall request the City Manager to endorse any candidate, make any financial contribution, sign or circulate any petition, or participate in any fund-raising activity for individuals seeking or holding elected office, nor to handle any matter of personnel. Section 15: Outside Activities The employment provided for by this Agreement shall be the City Manager’s primary employment. No new revenue producing activities are permitted unless approved by resolution of the City. The City Manager may continue to receive residual compensation from activities prior to this Agreement. Recognizing that certain outside consulting or teaching opportunities provide indirect benefits to the City and the community, the City Manager may elect to accept limited teaching, consulting or other business opportunities with the understanding that such arrangements must not create a conflict of interest nor constitute interference with his responsibilities under this Agreement. Section 16: Indemnification as provided by Sec. 2-4.6. - Indemnification A. The City shall defend, indemnify and pay all judgments or settlements in regard to any personal liability arising out of and in the scope of the City Manager's responsibilities, to the fullest extent authorized by Section 111.071, Florida Statutes, and other law, in addition to any insurance purchased by the City. The City agrees to pay all reasonable litigation expenses of the City Manager throughout the pendency of any City of South Miami litigation to which the City Manager is a party as a result of acts or omission within the course and scope of his employment, witness or advisor to the City. Such expense payments shall continue beyond the City Manager's service to the City as long as litigation is pending. B. Nothing in this section shall constitute a waiver of sovereign immunity or a waiver of any other defense or immunity to such lawsuits. C. Nothing in this section shall create any private right of action against the City by any third party. D. Nothing in this section shall provide for any defense, indemnification or payment if the City Manager acted in bad faith, with malicious purpose, or in a manner exhibiting wanton and willful disregard of human rights, safety or property. Section 17: Bonding The City shall bear the full cost of any fidelity or other bonds required of the City Manager under any law or ordinance. Section 18: Other Terms and Conditions of Employment A. The City, only upon written agreement with City Manager, approved by resolution, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the City Manager, provided such terms and conditions are not inconsistent with or in conflict with the provisions of, the City Charter, local ordinances or any other law. Page 7 of 8 B. Except as otherwise provided in this Agreement, the City Manager shall be entitled, at a minimum, to the highest level of benefits that are enjoyed by or offered to other department heads or general employees of the City as provided in the Charter, Code, Personnel Rules and Regulations or by practice. C. The City agrees to appropriate funds of the municipality each year in an amount sufficient to fund and pay all financial obligations of the City pursuant to this Agreement for that year, including but not limited to, the severance and other benefits set forth in Section 10. D. Upon the termination of this Agreement, other than for cause, the City shall enter into a separate Agreement with Steven Alexander with a term of not less than two (2) months for management consulting relating to the transition of City Managers at the City Manager’s then rate of compensation including all benefits. Section 19: Notices Notice pursuant to this Agreement shall be given by depositing in the custody of the United States Postal Service, (by registered mail to the Mayor and the City Manager), postage prepaid, personal service, provided the recipient signs a receipt which must be produced to prove delivery, or by some other service, including e-mail (e-mail to the City Clerk constitutes delivery to the Mayor and the City Attorney), if it provides proof of delivery or receipt and addressed as follows: CITY Mayor 6130 Sunset Drive South Miami, FL 33143-5093 With a copy to: City Attorney 6130 Sunset Drive South Miami, FL 33143-5093 Maria M. Menendez, CMC City Clerk 6130 Sunset Drive South Miami, FL 33143-5093 E-mail: Mmenendez@southmiamifl.gov CITY MANAGER: Steven Alexander City Manager 6130 Sunset Drive South Miami, FL 33143-5093 Notice shall be deemed given as of the date of personal service provided the recipient signs a receipt, which must be produced to prove delivery, or as the date of receipt by registered mail or by some other service that provides proof of delivery. Section 20: General Provisions A. Integration. This Agreement sets forth and establishes the entire understanding between the City and the City Manager relating to the employment of the City Manager by the City. Any prior discussions or representations by or between the City and the City Manager are merged into and rendered null and void by this Agreement. The City and the City Manager by mutual written agreement, approved by resolution of the governing body, may amend any provision of Page 8 of 8 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 City and the City Manager as well as their heirs, assigns, executors, personal representatives and successors in interest. C. Effective Date. This Agreement shall become effective on June ___, 2013. 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 the City and the City Manager subsequent to the expungement or judicial modification of the invalid provision. E. Precedence. In the event of any conflict between the terms, conditions and provisions of this Agreement and the provisions of the City’s permissive ordinances or the City’s rules and regulations, or any permissive state or federal law, then, unless otherwise prohibited by law, the terms of this Agreement shall take precedence over contrary provisions of the City’s permissive ordinances, or the City’s rules and regulations or any such permissive law during the term of this Agreement. F. Waiver of Jury Trial. The parties to this Agreement hereby waive any right they may have to a jury trial with regard to any matter or dispute between the parties and arising out of this Agreement. City of South Miami By: ___________________________ Mayor Philip Stoddard Executed this the ____ day of June, 2013. Steven Alexander By: __________________________ Steven Alexander Executed this the ____ day of June, 2013.