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Res. No. 032-09-12841RESOLUTION NO.: 32-09-12841 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, REGARDING THE CITY MANAGER'S CONTRACT; AUTHORIZING A CLARIFICATION OF THE CONTRACT BETWEEN THE CITY OF SOUTH MIAMI AND W. AJIBOLA BALOGUN TO REFLECT THE INTENT OF THE PARTIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on June P, 2008 the Mayor and City Commission approved by Resolution No. 81 -08 -12678 the employment agreement between W. Ajibola Balogun and City of South Miami; and, WHEREAS, the executed employment agreement as modified and approved by the City Commission provides that in the event the City Manager does not receive a performance review 60 days prior to his anniversary date that he would receive an automatic merit increase in the minimum amount established under contract; and, WHEREAS, the employment contract does not establish a minimum merit increase, thus rendering the sentence meaningless; and, WHEREAS, the City Commission has directed that this discrepancy in the employment contract be resolved to both parties' mutual satisfaction in an expeditious manner; and, WHEREAS, it is in the best interest of the City of South Miami and W. Ajibola Balogun to address this any discrepancies in the employment contract; and, WHEREAS, repeated scheduling and delays have caused the City Manager to incur legal fees and any further delays will cause an unnecessary financial hardship on the City Manager; and WHEREAS, the City of South Miami and W. Ajibola Balogun wish to clarify the employment contract to reflect the actual intent of the parties at the time the employment contract was considered and approved by the City Commission. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, Pg. 2 of Res. No. 32 -09 -12841 Section l: The above whereas clause are incorporated by reference into the body of this resolution. Section 2: The proposed clarification to the contract between the City of South Miami and W. Ajibola Balogun is approved. Section 3: This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this day of pr/" 2009. ATTEST: CLERK ,o Luis R.,F' _ . Office Ic COMISSION VOTE: 5 -0 Mayor Feliu: Yea Vice Mayor Beasley: Yea Commissioner Newman: Yea Commissioner Beckman: Yea Commissioner Palmer: Yea ADDENDUM TO EMPLOYMENT AGREEMENT This Addendum To Employment Agreement ( "Addendum ") is made this ____ day of February, 2009, between City of South Miami (hereinafter, "City ") and W. Ajibola Balogun (hereinafter, "City Manager "). WHEREAS the City and City Manager previously entered into an Employment Agreement on June 3`d, 2008; WHEREAS subsection 4.3 of the executed employment agreement does not establish a minimum merit increase and the last section that provides that in the event the city manager does not receive a performance review 60 days prior to his anniversary date that he would receive an automatic merit increase in the minimum amount established under the contract is therefore meaningless; and, WHEREAS the parties wish to amend the Employment Agreement to delete the last sentence of subsection 4.3. NOW THEREFORE, in consideration of the promises and mutual covenants set forth, the parties do agree to amend the Employment Agreement as follows: 1. Subsection 4.3 of the Employment Agreement is amended to read as follows: The Commission shall review the performance of the City Manager annually, not later than 60 days before the anniversary date established in this Agreement, and in accordance with established criteria for the annual performance reviews for the City Manager. 2. There are no additional changes to the employment contract. The remainder of the original agreement is in full force and effect. IN WITNESS WHEREOF, this Amendment to the Employment Agreement has been executed and delivered by a duly authorized officer of the City of South Miami and by the City Manager Employee on the date first above written. ATTEST: Maria Menendez, City Clerk APPROVED AS TO FORM: Luis R. Figueredo, City Attorney W. Ajibola Balogun, City Manager 15150 SW 166' Street, Miami, Florida 33187 WITNESSESS: W:Wty Documents0oc\ADDENDUM To EMPLOYMENT AGREEMENT.balogun.doc EMPLOYMENT AGREEMENT BETWEEN CITY OF SOUTH MIAMI AND W. AJIBOLA BALOGUN This Agreement is made and entered into this day of JA� , 2008, by and between the City of South Miami (hereinafter, "City") and W Aiibola Baloaun (hereinafter, "City Manager "), which hereafter may be individually referred to as a "Party' or be collectively referred to as "Parties ". In consideration of the promises, mutual covenants, conditions, provisions and undertakings contained in this Agreement, and for other good and valuable consideration, and receipt and sufficiency of which is hereby acknowledged by both Parties, the Parties covenant and agree with each other as follows: 1. APPOINTMENT AS CITY MANAGER The City, pursuant to art. III, sec I of the City Charter and actin through its Mayor and City Commission ( "Commission "), have by City Resolution ._�j� Zb j elected to employ W Aiibola Baloeun as its City Manager. Mr. Baloyn, upon approval of the terms of this Agreement by the Commission, agrees to serve as the City Manager of the City of South Miami in accordance with the terms and conditions of this Agreement. 2. TERMS OF EMPLOYMENT The City Manager, pursuant to art. Ii, sec 7A of the City Charter, serves at the pleasure of the Commission, which is empowered to terminate the services of the City Manager at any time in accordance with the provision of this Agreement. This Agreement shall continue for a fixed term of sixty (60) months, beginning March 24, 2008. Except as otherwise provided in this agreement, City Manager shall remain the exclusive employee of the City. However, the City Manager may devote his personal time and interest to matters relating to public service such as community service, teaching, writing, speaking engagements, pro bono services and other professional endeavors provided they are performed during the City Manager's off-duty time. In the event any such activities require that the City Manager engage in non -city related activity during his scheduled working hours, the City manager shall disclose the nature of the endeavor, its duration, estimated time requirements and schedule commitments to the City Commission and receive the approval of the City Commission prior to participating in the activity. Furthermore, the City Manager, prior to engaging in such endeavors, shall ensure that such endeavors: (i) do not violate the prohibition against dual office holdings; do not create reality or appearance of conflict of interest; and Page I of 9 do not materially detract from the time or schedule to accomplish the City Manager's duties or objectives. This Employment employment or createsea property right toeemploymeni under the laws of the State of Florida. ill" 3 DUTIES AND RESPONSIBILITIES OF THE CITY MANAGER The City Manager, as the Chief Administrative officer of the City, shall be responsible for the administration of all City affairs, for carrying out policies adopted by the Commission, and for implementing the City budget and programs as directed by the Commission. The City Manager shall report and be accountable only to the Commission. The City Manager shall perform those duties prescribed by art. DL sec. 5 and other relevant provisions of the City Charter; prescribed by law or inter -local agreement, and as directed by the Commission. The City Manger shall be solely responsible for hiring and terminating City employees, subject to limitations imposed by budget authorizations, funding availability or policy direction by the Commission. The City Manager shall devote his time and interest to the city's affairs at whatever time of day or day of week reasonably required or scheduled by the City Manager, subject to a minimum average of forty (40) hours per week. The City Manager shall report to the City Attorney any alleged violation of Federal, State or City laws, codes, ordinances as well as any violations of any terms of this contract. The City Manager warrants that: () He does not now have, and that he will not knowingly enter into any contract or relationship with another person or entity that creates a conflict or interest, as the term is described in se. 2 -11.1 of the code of Miami -Dade County and the city's conflict of Interest and Ethics Codes, He has not paid or agreed to pay any person any consideration for the procurement of this Agreement. (iii) He will uphold the State, County and City ethics does and the Florida Public Meeting and Public Records laws (Sunshine Laws), and (iv) In the event he has any concerns or reservations about any pending actions as they may relate to the above topics, he will seek legal advice from the City Attorney and/or direction from the Commission. Page 2 of 9 4, DUTIES AND RESPONSIBILITIES OF THE CITY 4.1 To the extent practical, the Commission members shall address their concerns regarding the financial condition, operations, personal and other City matters directly to the City Manager, who shall address those matters with the pertinent City staff, consultants, contractors and advisors for response to the Commission 4.2 No Commission member, acting alone and without authorization of the Commission, shall direct the City Manager to enter into or terminate any contract or to employ any person or, to grant or withhold funds to any person, or to instruct any person under the City Manager's authority to take or refrain from taking any specific action. This paragraph shall not be applied to limit the non - interference provisions of art. VI, sec 7 of the City Charter. 4.3 The Commission shall review the performance of the City Manager annually, not later than 60 days before the anniversary date established in this Agreement, and in accordance with established criteria for the annual performance reviews for the City Manager. Merit increase of a minimum established in the Agreement shall be automatically awarded to the City Manager on the 59'" day before the anniversary date, if Commission fails to perform or complete performance review for the Manager. 4.4 The Commission shall consider such factors as job performance, experience, and length of employment, satisfaction of objectives, responsiveness or other factors as the commission may deem to be important. in determining the annual merit salary increase. 4.5 The Commission, for unforeseen fiscal adversity, may elect to either temporarily or permanently reduce the salary and/or benefit payments of City employees. In the event the Commission reduces the salary or other benefits of the City Manager in an a greater percentage then an equivalent "across- the - board" reduction of salary or benefits of all full -time City employees, or in the event the City refuses to comply with any other substantive provisions of this Agreement, the City, upon notification by the City Manager within fifteen (15) days of such action, shall have forty-five (45) days from such notice within which to cure the violation. If the violation continues beyond the cure period it shall considered a constructive termination "for convenience", in which case the associated severance provisions, as described herein; shall be effective as of the day the violation occurred and pursuant to the salary, benefits or other conditions in effect immediately before the violation. Page 3 of 9 5. SALARY AND BENEFITS 5.1 Salary 5.1.1 The City Manager shall initially receive an annual base salary of $165,000.00 commencing from the date of appointment as City Manager and paid in the same frequency and proportion as that of other salaried City employees and subject to the same legally required deductions. The City Manager shall to be considered for a maximum of seven percent (7 %) merit increase effective on his anniversary date. 5.1.2 For no additional compensation, the City Manager shall continue to serve as Public Works Director until September 30, 2008. 5.1.3 The City Manager shall be entitled to and receive the same annual cost of- living adjustment (COLA) as may be granted to other City administrative employees. The City Manger's role, if any, in negotiating such and adjustment with recognized collective bargaining organization shall not be considered a conflict of interest. 5.2 Benefits 5.2.1. The City Manager shall accrue the equivalent of 1.5 days of "vacation time" and 1.0 days of "sick time" per month. The City Manager may accumulate unused vacation time. In addition, the City Manager shall receive personal days in the same fashion city employees accrue personal days. 5.2.2. The City Manager shall be entitled to all paid holidays customarily granted to all City employees. 5.23. All comprehensive medical, dental, vision, disability and other health and wellness insurance options shall be available to the City Manager and his family at no cost to the City Manager. The City shall also provide the City Manager, at the City's expense, a comprehensive annual physical examination, supplemental life insurance and life insurance coverage in an amount equal to the City Manager's annual base salary. 5.2.4. The City shall contribute to a deferred compensation plan selected by the City Manager in an amount equal to eighteen percent (18 %) of the City Manager's annual base salary. Such contributions shall occur on a pro- rated basis per City pay period. 5.2.5. The City shall provide the City Manager with a monthly expense allowance equal to the allowance provided to a member of the city Commission. 5.2.6. Because of the nature of the City Manager's duties and responsibilities, the City Manager will require the use of a take —home automobile. The take home vehicle may be utilized for personal use. In the event the Commission elects to replace the automobile currently used by the City Page 4 of 9 r°SS� Manager, any replacement automobile will be a similar model. Accordingly, the City Manager may, at his option, use his own motor vehicle or continue to use the automobile provided to him by the City. If the City Manager elects to use a city provided automobile, the City shall be responsible for any pay of its purchase and all expenses related to its operation, maintenance, repair, fuel and replacement. The City shall also pay for all liability, property comprehensive uninsured motorist, personal injury protection and medical insurance for the automobile. If the City Manager elects to use an automobile which is not furnished by the City, the City shall pay the City manager a monthly allowance of $550 and a $200 monthly gas allowance. The fuel allowance shall be adjusted annually by the City Commission based on fuel costs. 5.3 Equipment 5.3.1 The City shall provide at.no cost to the City Manager all equipment, material and devices necessary or desired to efficiently and effectively carry out the City Manager's duties to the City's benefit, which may include,' but not limited to: a cellular phone, personal digital assistant, radio, pager, hard hat, reflective vest, emergency equipment, etc. Any equipment, material and devices so provided shall remain the property of the City and shall be immediately returned to the City by the City Manger upon termination or expiration of this Agreement. 53.2 The City shall indemnity, defend and hold harmless the City Manager against any tort, professional liability claim or demand or any other legal action arising of an alleged act or omission occurring from the performance of the City Manager's duties. The City will litigate compromise or settle any such claim, demand or legal action and pay the amount of any settlement or judgment rendered thereon. Additionally, the City, or its insurer, will provide suitable legal representation for the City Manager for any and all proceedings, mediations, arbitrations, law suits or appeals related to or arising out of the City Manager's affiliation with the City. The City shall be under no obligation to indemnify and hold harmless the City Manager where he is found to have acted dishonestly, in bad faith or in a manner exhibiting wanton and willful disregard of human rights, safety or property. This entire indemnification provision shall survive the termination of this Agreement. Page 5 of 9 5.3.3 The City Manager shall furnish a surety bond to be approve by the Commission, as required under art. VI, sec 2 of the charter, in such amount as may be determined by the Commission. The City shall be responsible for payment of the premium of this bond. The City Manager shall secure a surety bond, upon approval of the commission, within 30 days of the effective date of this agreement. 5.3.4 The City shall pay registration, travel and per diem expenses, as authorized by law, for the City Manager's attendance and representation of the City at the international County Manager Association, the Florida City /County Management Association and the Florida League of Cities annual conferences, and any other related conferences, meetings, conventions or seminars the Commission may direct or authorize the City Manager to attend. 5.3.5 The City shall reimburse the City manager for pertinent, reasonable and customary professional society or association dues, subscriptions, training or other costs related to the continued professional growth and recognition of the City Manager. 6. TERMINATION 6.1 The City may terminate this Agreement with or without cause in accordance with art. III, sec 3 of the City Charter, subject only to the severance provision set forth in this Agreement. 6.2 The term "for cause "shall be defined to mean (1) breach of any material term or condition of this agreement; (2) conviction of a felony during the term of this agreement; (3) misconduct in office; (4) gross insubordination and, or willful neglect of duty; or (5) a knowing or intentional violation of the Florida or Miami -Dade County conflict of interest and code of ethics laws. A "for cause" termination decision may be reviewed by the circuit court in an original action or a de novo review proceeding. 63 In the event that the Commission wishes to terminate the City Manager "for cause ", the Commission shall first submit "A Notice of Intent to discipline/terminate" in writing to the City Manager, detailing the reason(s) of the intent. Upon receipt of the Notice of Intent to discipline/terminate the City Manager shall have seven (7) days to request a hearing.. A hearing shall be afforded to the City Manager within thirty (30) days. Page 6 of 9 6.4 In the event that the Commission terminates this Agreement "for cause", the City shall not be obligated to pay and the City Manager shall not be entitled to receive any severance compensation other than the cash value of accrued but unused leave time or sick time, and any salary and other benefits earned up to the effective date of the termination, unless the amounts for accrual leave and sick time are used as a set off for any amounts owed by the City Manager to the City. The payment for unused leave or sick time shall be paid within seven (7) days of the effective date of the termination. 6.5 In the event that the Commission terminates this Agreement "for convenience" during the first year of the Agreement term, the City shall pay the City Manager a lump sum cash payment equal to the City Manager's base salary for six (6) months as a severance benefit. The severance benefit shall be paid within seven (7) days of the effective date of the termination. In addition to the severance benefit, the City shall continue to provide all insurance benefits from the effective date of the termination for a period equal in time to the basis of the severance benefit. The City shall not be obligated to pay for any other allowances or benefits after the effective date of termination and shall not be financially obligated to the City manager thereafter, except as may be required by the indemnity provision herein. In the event the City Manager terminates this Agreement, the City Manager shall not be entitled to severance benefits. 7. RETURN OF PROPERTY 7.1 Immediately upon termination of this agreement, the City Manager shall return all City property in his possession or control, including but not limited to keys, computers, cell phone, pagers, vehicle, documents and any other property of the City. 8. OTHER TERMS AND CONDITIONS Dispute Resolution. Any claims or dispute arising out of or related to this Agreement shall be subject to informal mediation as a condition precedent to the initiation of legal or equitable proceedings by either party. Mediation shall be deemed complete upon either an executed written settlement of the claim or dispute or the expiration of forty — five (45) days from the date either party serves the other with a written request for mediation and the other parry has not responded. The parties shall share equally the mediator's fee and any filing fees. Mediation shall be held in Miami -Dade County, Florida and settlements or other agreements reached in mediation shall be enforceable as settlement agreements in the Circuit Court for the 11"' Judicial Circuit of the State of Florida. Waiver of a Jury Trial. Both parties hereby waive any right to arbitration and to jury trial. Venue. Any legal or administrative action arising under this Agreement, Page 7 of 9 including an action to enforce the Agreement, shall be brought in state court in Miami -Dade County, Florida and administered and be governed by Florida law Construction. In the event a court of competent jurisdiction must interpret any word or provision of this Agreement, the word or provision shall not be construed against either party by reason of drafting or negotiating this Agreement. Notice. Any notice required or provided for in this Agreement shall be given to the parties at the addresses provided in the execution of this Agreement. Severability. In the event any provision of this Agreement is declared by a court of competent jurisdiction to be invalid, the declaration shall not affect the validity of the Agreement as a whole or any part of the Agreement other than the part declared to be invalid. Non - Waiver. The waiver by either party of a breach of any provision herein by the other shall not operate or be construed as a waiver of any subsequent breach by that party. Sovereign Immunity. The City does not waive its sovereign immunity for any claim arising under, or related to, this agreement other than for breach of contract. The City shall not be liable to pay for damages, other than amounts due under this agreement, in the event it is adjudicated to be liable for breach of contract, or otherwise permitted by law. Notwithstanding this limited waiver of sovereign immunity, the City does not waive its immunity from, and shall not pay awards for prejudgment interest and/or attorney's fees. Policy. The Commission may fix any other terms and conditions of employment it may determine from time to time to be necessary and in the City's best interest relating to the performance of the City Manager, provided that such terms and conditions are compatible with the provisions of this agreement, Florida Statues and any other law, and are agreed to in writing by the City Manager. Page 8 of 9 ATTEST: 6130 Sunset Drive South Miami, Flor Maria Menendez, City Clerk W. Ajibola Balo , ,ity Manager 15150 SW 166' Street, Miami, Florida 33187 APPROVED AS TO FORM: �.— W ESSES G-� igueredo, City Attorney ✓ n I, Maria M. Menendez City Clerk of th City of South Miami, Miami -Dade County, Florida do hereby certify that this is true and correct copy of Employment Agreement between the City of South Miami and W. Ajibola Balogun as shown in the official records of the City of South Nhami, Miami -Dade County, Florida. Given under my hand and seal, this `74 _ day of 2008. City Clerk Page 9 of 9 RESOLUTION NO. 81 -08 -12678 A RESOLUTION OF THE MAYOR AND.CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO THE POSITION OF CITY MANAGER; AND RELATING TO CONTRACTS; AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE CITY OF SOUTH MIAMI AND W. ARBOLA BALOGUN; PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Article II, Section 7 of the City of South Miami Charter the Mayor and City Commission is vested with the power to appoint a City Manager; and, . WHEREAS, the Mayor and City Commission authorized the City Attorney to enter into negotiations with W. Ajibola Balogun, as the proposed City Manager so as to prepare a draft employment agreement; and, WHEREAS, the City of South Miami and W. Ajibola Balogun wish to employ Mr. Balogun's services as City Manager of the City of South Miami by executing the attached contract. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA; Section 1. The above whereas clauses are incorporated by reference into the body of this resolution. Section 2. The term of the contract between the City of South Miami and W. Ajibola Balogun shall be as provided for in attached exhibit A to this resolution, which exhibit contains the draft employment agreement for Mr. Balogun, as City Manager. Section 3. The City Manager will meet - individually with each Commissioner on an annual basis to discuss his performance. Page I of 2 Res. no. 81 -08 -12678 Section 4. This resolution shall take effect immediately upon approval. PASSED AND ADOPTED this 3Td day of June, 2008. ATTEST: 'Y CLERK Luis R F b redo, \` Nagin Gallop & Figueredo, P.A. Office of City Attorney APPROVED: COMMISSION VOTE: 4 -1 Mayor Feliu:, yea Vice Mayor Beasley: yea Commissioner Wiscombe: yea Commissioner Beckman: Nay Commissioner Palmer: yea Page 2 of 2