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Res. No. 113-04-11892RESOLUTION NO.1 1 3-04-1 1 892 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA PROVIDING AN ESTIMATED COST NOT TO EXCEED S7,000 TO COME FROM GENERAL CONTINGENCY ACCOUNT #00121005199920 FOR A LEGAL OPINION RELATING TO FORMER CITY MANAGER CHARLES SCURR'S PENSION MATTER;PROVIDING AN EFFECTIVE DATE. WHEREAS,theMayorandCity Commission requested thattheCityManagercontractwithan impartial attorney to provide advice in the matter of former City Manager Charles Scurfs pension buyback: and WHEREAS,the background and qualifications of those who responded were reviewed bythe Mayor andCommissionandRonaldJ.Cohenwasdeterminedtobethemostqualifiedtoofferanopiniononthis particularmatter;and WHEREAS,an estimate of costsforthereview of salientfactsand documents and preparation of a legal memorandum answering the legal questions proffered by the Mayor and Commission was requested;and WHEREAS,thatestimatewasreceivedfromRonaldJ.Coheninanamount"intheneighborhood of $7000.00v. NOW,THEREFORE,BEIT RESOLVED BYTHE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA: SECTION1.ThattheCity Manager is authorized to contract with Ronald J.Cohen.P.A.to perform an in-depth analysis of the relevant documents,laws and records pertaining to the legality and/or the enforceability of the contract and/or any agreements made between Mr.Scurr and the City of South Miami in regard to his pension and/or the crediting of his time in former government service,and to prepare a legal memorandum laying out the details and facts of that analysis,for a cost not to exceed $7,000 to come from General Contingency Account #00121005199920.with a current balance of $26,572.74. SECTION 2.ThatthisResolutionshalltakeeffectimmediatelyupon approval. PASSED AND ADOPTED THIS 20th DAYOF July 2004. ATTEST; riTv n PRk'uCITYCLERK READ AND APPROVED AS TO FORM: APPROVED: Commission Vote:5-0 MayorRussell:yea Vice Mayor Palmer:Yea Commissioner Wiscombe:Yea Commissioner Birts-Cooper:Yea Commissioner Sherar:Yea South Miami AO-AmoteaCffy CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM 2001 To:Honorable Mayor,ViceMayor andCityCommission From:Maria V.Davis City Manager Date:July 20,2004 Subject:Agenda Item #// Commission Meeting 07/20/04 Re:Attorney for Scurr Matter REQUEST A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA PROVIDING AN ESTIMATED COST NOT TO EXCEED $7,000 TO COME FROM GENERAL CONTINGENCY ACCOUNT #00121005199920 FOR A LEGAL OPINION RELATING TO FORMER CITY MANAGER CHARLES SCURR'S PENSION MATTER;PROVIDING AN EFFECTIVE DATE BACKGROUND AND ANAL YSIS The City Commission attheir regular June 1,2004 meeting instructed the City Manager to prepare a resolution authorizing the entrance into a contract for further legal advice on the provisions of the contract with former city manager Charles Scurr concerning his pension and the crediting for past government service.After selecting the attorney determined tobethe most qualified to offer that advice,the Commission further instructed the Manager to obtain an estimate of thecostforsuchservices.Thisresolutionisintendedtoapprovethose estimated costs,nottoexceed$7,000,asthiswasnota budgeted item.Thisexpenseistocomefrom general contingency account #00121005199920 with a current balance of $26,572.74. RECOMMENDA TION Your denial of the resolution is recommended. Attachments:Resolution Estimate Letter from Ronald Cohen Copy of faxsentto Ronald Cohen Ronald J.Cohen,P.A. ATTORNEYS AT LAW VIA FACSIMILE/305-663-6345 July13,2004 ANDREW JACKSON BUILDING 8IOO OAK LANE,SUITE 403 MIAMI LAKES,FLORIDA 33016 DADE:(305)823-1212 BROWARD:(954)922-144-6 FACSIMILE:(30S)823-7778 Charles Blazak,Assistant toCity Manager Cityof South Miami 6130 Sunset Drive South Miami,FL 33143 Re:Charles Scurr Pension Matter Dear Mr.Blazak: We are pleased to be selected by the City Commission to provide a legal opinion on the Charles Scurr pension matter.Our hourly rate for attorney's time will be $200.00 per hour and our hourly rate for paralegal time will be $75.00 per hour.We estimateourfeestobeinthe neighborhood of$7,000.00. Sincerely, DICTATED &SENTIN HIS ABSENCE TO EXPEDITE Ronald J..Cohen RJC/nlw P:\Documents\RON\Proposals\south miami 2004\Blazek Itr refees.doc CITY OF SOUTH MIAMI 6130 Sunset Drive SouthMiami,FL 33143 (305)663-6318 (305)663-6345 (fax) FROM:Charles Blazek,Assistant tothe City Manager TO:RonaldJ.Cohen,Esq. COMPANY: FAX NUMBER:305-823-7778 DATE:July7,2004 NO.OF PAGES (including thiscover sheet):22 RE:Charles Scurr Pension Matter Comments:The South Miami City Commission selected you to offer a legal opinion on the captioned matter for the city.Please briefly review the following pages and send us an estimate ofyour time and charges to study the matter and present us with a legal memorandum as to whether the City is obligated to pay for his pension buy-back.There are other related questions below and on the first page following this cover that the Commission would like addressed in the memorandum as well.We would appreciate receiving your fee estimate as soon as possible. Several concerns/questions related to the Pension Buyback situation are itemized below: 1.Itisnot clear in either Mr.Scurr's contract orthe resolution approving his hire thatthe City committed itself to buying back Mr.Scurr's previous pension time.The resolution (No.203-98-10470)states,"Section 2.Charles D.Scurr shall receive a salary of $85,000 annually as well as ...,and credit in the South Miami Retirement System for time employed in other governmental entities,as provided in the City of South Miami 1997/98 finaladoptedCitybudget." There is no provision in the referenced budget to a "buyback"of previous time.The resolution simply states that he would receive "credit"for the time,which,per my understanding,is usually used to determine vesting and allowed contribution amounts. Furthermore,there is no provision for payment of any money by the City toward the referenced credit. 2.Mayor Robaina's memo dated July 19,1999,intended to "clarify the intent of the City Commission resolution"simply refers tothe "attached"resolution and offers no interpretation.Even the EMPLOYMENT AGREEMENT BETWEEN CITY OF SOUTH MIAMI AND CHARLES D.SCURR statesonly(underSection2.5 Retirement Benefits), "Credit (bold emphasis added)in the City retirement system for time employed in other governmental entities and annual contributions tothe system." The regular annual contributions to the system,this appears to say,would be based on the years of service with which he was credited.Again,it says nothing about a buyback of time served.Would any responsible legislative body saddle a cash-strapped city with a half-a-million dollar obligation up-front to someone whom it had just hired? The contract and the resolution are between theCity and Mr.Scurr.Onlythe majority of the Commission has any authority to alter any provisions.The Mayor,acting alone,has no authority to clarify and/or change any provisions of either one. 3.The City's Pension Plan is setup and established by ordinance and is supposed to be totally non-discriminatory.Wouldn't it have required the passage of an amending ordinance by the then-sitting Commission ifit was their intent to buy-back or fund all the previous years of Mr.Scurr's previous government service;and would it not have been illegal to separate him as a class unto himself for specialized provisions under the plan thatdonotexistanywhere,foranyclass of employee? 4.If itwasdeterminedtobetheintent of thethen-sittingCommissiontobuybackthe previous years'contributions to the Pension Plan for Mr.Scurr,can the City be held to a provision ina contract thatis illegal onits face? These are ourmainconcernswiththis situation.Wewouldlikeyourmemorandum,should acceptable terms be negotiated,to address these issues also.Thank you. Attached/following: Facts/Issues Re Scurr Pension ArticleIII,Section5HCity of SouthMiami Charter Memofrom Finance Director to present City Manager,Dated 3/19/04 LetterfromPension Attorneys Sugarman &Susskind,1/10/03 Memo fromFinanceDirectorto Acting CityManager12/27/02 Resolution No.203-98-10470 (appointingCityManagerScurr) Memo toFinanceDirectorfromMayorRobaina 7/19/99 Employment Agreement betweenCityandScurr Resolution No.198-02-1157 (acceptingScurrresignation) Facts/Issues Re Scurr Pension The City and Charles Scurr entered in an Employment Agreement.The contract provides for "Credit intheCity retirement system for time employed in other governmental entitiesandannual contributions tothe system"(contract paragraph 2.5). The City's pension attorney has opined that the "buy-back"provision could notbe put intoaPensionPlanunlessitwasextendedtoallotherCity employees.Itwasalsohis opinion that,"Unless and until the Pension Plan is amended by ordinance,the Pension Plan cannot grant credited service to Mr.Scurr for his service with other governmental service.Furthermore,should the P3ension Plan notbeso amended,$89,716.80 paid by the City to the Plan for the other governmental service should be either refunded to the City or credited towards future required City contributions."To so alter the Pension Plan would cause the City to incur costs of at least hundreds of thousands,if not millions of dollars inbuybacksforotheremployees. The City Commission never approved by budget,resolution or ordinance the authorization of expenditures to fund buy-backs.Despite this,Charles Scurr signed checks to pay for the buy-backs of his pension credits.The City Charter at Art.Ill, Section 5H requires all expenditures over $5,000 to be approved by the Commission. Thecheckswereinexcess of that threshold amountandwerenotapprovedbythe Commission.TheCity's Finance Director questioned the expenditures.The mayor at that time,Julio Robaina,drafted a memorandum to justify the expenditure,but all it did was refer tothe contract,whichwas drafted by Mr.Scurr and his representative. Issues 1.Having approved the City Manager's contract,must the Commission approve all other resolutions and ordinances necessary toeffectuateit,ordoestheCity Commission exercise its independent legislative duties on each budgetary item before it? 2.Since Scurr's pension provision was not allowed under the Pension Plan atthe timethe contract was approved,did the Commission have to approve a change to the pension ordinance,or could they exercise independent legislative prerogative in approving thenew pension provisions? 3.WasScurr's signing checksto fund his pension illegal? 4.Didtheact of Scurr's signing checks bindthecityto fully fund his pension buy- back? 5.Doesthe fact that Scurr tookno action to change thepensionplan(hecouldhave proposed an ordinance or resolution)mean that he waived his right to enforce the pension provision? 6.As you're aware,a contract can be formal or ratified by conduct.Bythe City funding the buy-back,Scurr can argue that that was ratification and no other formal act of theCommissionwas necessary.But,since Scurr executedtheacts of ratification on behalf of theCity,canheusethoseactsagainsttheCity? ffloM 7H££o<rrt\/hSflw-C;^y £vfl,<n£# temporary absence ordisability.SuchactingCity Manager shall not serve for a period longer than 90days.During such absence or disability,the Commission may decline such recommendation at any time and appoint another officer of the City to serve until the Manager shall return or his disability shall cease. B.Failure to Recommend During such absence or disability as set forth in(A),if the City Manager fails to recommend an Acting CityManager,the Commission shallnamean Acting Manager to serve at the pleasure of the Commission. SECTION 5.Powers and Duties The City Managershallbe the chief executive officer and head of the administrative branch of theCity government.Heor sheshallbe responsible to the Commission for the proper administration ofall affairs of the City.Heor she shallhave the following powers and duties to: A.Appoint and,when necessary forthegoodoftheCity, remove any non-elective of.£jge.rs_or employees ofthe City (excepting those authorized tobe appointed and removed by the uity commission;,providing such removaldoesnot conflict with Civil Service provisions. B.Prepare the budget annually and submit it to the Commission and be responsible for its administration after adoption. C.Submit to the Commission and make available to the public a report everymonthon the financesand administrative activities ofthe City,together with hisorher recommendations. D.Prepare and submit to the Commission at the end of the fiscalyeara complete reporton the financesand administrative activitiesoftheCityforthepreceding year. E.Direct and superYA£e_the administration of all departmentsr offices and ""~agenc"ies""~'bT""'~tlTe"^i€y","except—as* otherwise provided by this Charter orby law.(Amended 2/8/00) F.Attend all Commission meetings withthe right totake part in discussion.* G.Perform such other duties as are specified in this Charter or which may be required by the Commission. H.Contract for the purchase of any goods or services for any department ofthe City inan amount uptoand including ($5,000.00).Allcontractsforgoodsandservicesinexcessof $5,000.00 shallbe approved bythe City Commission.The city 15 SOUTH MIAMI CITY CHARTER AMENDED 278/00 Managershall report allexpenditurestotheCityCommission monthly.(Amended 2/8/00) All purchases shall be approved after competitive conditions shallhave been maintainedandcompetitivebids sought fromat least three differentsourcesofsupplyifavailable,such determinationtobemadebythe Commission,and,notwithstanding theforegoing,theCitymaymakepurchases through other governmentalagenciesthathave followed similarbidding procedures.Thissubsectiondoesnot apply tothepurchaseof legal andexpert services thathavebeen approved bythe City Commission.(Amended 2/8/00) ARTICLE IV Finance SECTION 1.Fiscal Year The fiscal year of the City ofSouthMiami shall be the same as that set by Dade County or its successors. SECTION TT Budget A.The City.Manager shallsubmittothe Commission,60 days prior tothe beginning of the fiscal year,an annual budget together withan explanatory message.The budget,budget message and all supporting schedules,shallbea public record open to public inspection byanyone. B.Public Hearings Atthemeetingofthe Commission at which the budget and budget message are submitted,the Commission shall determine the time and place for a public hearing on the budget,at which time,interested persons shall be given an opportunity tobe heard.TheCity Clerk shall post a notice of the place and time not less than five days after the date of posting at which time the Commission will hold a public hearing. C t Adjustments After conclusion of such public hearings, the Commission may insert new items or may increase,decrease or delete the items of the budget;provided,however,ifthe total of proposed expenditures be increased thereby,thenandin that event,the City Clerk shall post a notice setting forth the nature of the proposed increase and listing a place andtime not less than five days after the date of posting ofthe public, hearing thereon. D*t Adoption The budget shall be adopted by three affirmative votes of the City Commission before the first day of thenewfiscalyear.Shouldthe Commission takeno final action onor prior tothe date,the budget,as submitted,shallbe 16 SOUTH MIAMI CITY CHARTER AMENDED 2/8/00 CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM I MAR 19 2004 CITY MANAGER'S OFFICE **************************************************************** To:MariaDavis Date:March 19,2004 City Manager From:Hakeem K.Oshikoya,CPA /Re:Pension Buyback- Finance Director \\/Charles Scurr ******************************************************************** Asa follow-up to our conversation of this morning,I am writing this memo to provide you additional information to my December 27,2002 relative to the former City Manager Charles Scurr's pension. 1.On October 5,1999,theCity Commission entered intoanemployment contract with Mr.Scurr. 2.Section 2.5 of the contract provides for "Credit intheCity retirement system for time employed in other governmental entities and annual contributions to the system". 3.At some point after approval of the contract,Mr.Scurr requested for usto begin payment of funds into the pension plan for his regular pension contribution and the buyback time. 4.I responded to him that my interpretation of this section of the contract is only for theCitytopay for his regular pension contribution annually based onhis current salary atthe time,and it does not address the issue ofwhowillbe responsible for the payment ofthe buyback time.Furthermore,theCity pension plan only provides for buyback oftime for City of South Miami past services uptoa maximum of five(5)yearsintheCityretirement system. 5.Because of the fact thattheCity pension plan doesnotprovide for buyback of timeto employees for services rendered to other governmental entities,I suggested for Mr.Scurr to obtain clarification of the matter from either theCity AttorneyortheCity Commission if theCitywas responsible forpayment of his buyback time and how tohandletheambiguity. 6.Subsequent tothis discussion 1had withhim,he forwarded meamemo written by former Mayor Julio Robaina,dated July19,1999 clarifying theintent of theCity Commission regarding Section2.5 of thecontracttomeanthattheCitywillbe financially responsible for payment of Mr.Scurr'spensionbuybacktime. 7.FromthetimewereceivedtheformerMayor'sletter,theCitystarted making two separate biweekly payments tothebank for Mr.Scurr.One for thebuybacktime andtheotherforhisregularpensioncontribution. 8.In December 2002,upon Mr.Scurr's resignation of employmentwiththeCity,I wrote a memo toMr.Youkilis,whowasthe Acting City Managerthentoinquire abouthowtohandle future paymentsintohispensionbuyback account. 9.Heforwardedthe memo andother documents tothe City Commission for direction. 10.The documents werelatersenttothePensionBoard Attorney for review and recommendations (seeattachedletter). 11.Itwasafterreceiving response of the Pension Board Attorneythatitbecame known tousthatthefundssenttothe bank for credit into Mr.Scurr's pension buyback account were never credited tohimbythe Pension Actuary because the current provisions of the pension plan does notallow for himtobe credited with buyback time,and his funds were used tooffsetthe annual amount of contributionsbytheCitytothe general pensionplan. Please advise if thereisany additional informationIneedtoprovide regarding this matter.Thanks. SUGARMAN &SUSSKIND PROFESSIONAL ASSOCIATION ATTORNEYSATLAW RobertA.Sugorman*2901 Ponce DeLeon Boutevard Howad 5.SuoUnd Suite 750 David LRoblnwn CoroJ Oabtes,Rorida 33134 KennethR.Harrison,Sr.(30$)629-2601 O.Marcus BrasweB,Jr.Broward 327«287B George S.Aude ToO Free 1-0)0-329-2122 Charles A.Gtoson Facsimile (305)447-8115 ♦Board Certified Labor &Employment Lawyer January 10,2003 20*d Via facsimile (305)**S»3S77 &U.S,Mail Board ofTrustees City of South Miami Pension Funds c/o Jearmette Enrizo-Navarro,Human Resources Manager 6130 Sunset Drive South Miami,Florida 33143 Re:Pension Credit for Former City Manager Charles Scurr Dear Trustees: You have asked our opinion concerning the contributions which should be made tothe South Miami Pension Plan onbehalf ofrecently resigned City Manager Charles Scurr. In preparing this opinion,we have reviewed the Inter Office Memorandum dated December 27,2002 from Finance Director Oshikoya to Acting City Manager Youkilis,City Commission ResolutionsNo.203-98-1040 and 198-02-11547,theMemorandumdatedJuly 19, 1999 from Mayor Robaina to Finance Director Oshikoya,the Employment Agreement between the City and Mr.Scurr dated October 4,1999,and the provisions ofthe pension plan set forth in Chapter 16,Article II ofthe South Miami Code. Resolution No.203-98-10470,dated July 21,1998,appointed Mr.Scurr asthecity manager and provided for a "credit m the South Miami Retirement System for time employed in other governmental entities;'The July 19,1999 Memorandum from Mayor Robaina verified the City Commission's intent that the retirement credit be "part of the compensation section of the resolution and isthe financial responsibility of the City."Section 2.5 of the October S,1999 Employment Agreement also states that Mr.Scurr received "credit in the City retirement system, for time employed in other governmental entities and annual contributions tothe system." d£0?90 EO-OT-U*r Board ofTrustees City of SouthMiamiPensionFunds c/o Jeannette Enrizo-Navarro,Human Resources Manager January 10,2003 Page2 Although Resolution No.203-98*10470 and the Employment Agreement provide for credited service in the South Miami Pension Plan for Mr.Scurr's other governmental service, there is no such provision in the South Miami Pension Plan which authorizes you to pay a pension based upon service for other governments.As trustees of the Pension Plan,you have a fiduciary dutyto pay benefits only in accordance with the terms ofthe Pension Plan.Since the Pension Plan does not provide for credited service for time spent working for other employers,it is our opinion that the South Miami Pension Plan cannot pay abenefit to Mr.Scurr or grant him credited service based upon his employment with other employers. In order for Mr.Scurr to receive credited service for employment with other governmental employers,the provisions of the South Miami Pension Plan must be amended by ordinance.Because the provisions of Resolution No.203-98-10470 and the Employment Agreement are ambiguous as to the financing of this credit for Mr.Scurr,the ordinance amendment should include answers to the following questions: ♦Is Mr.Scurr required to make employee contributions for the credited service heis receiving for work with other governmental employers? ♦Was Mr.Scurr obligated to make employee contributions for the credited service he earned while employed as South Miami City Manager? ♦Are there any other employment agreements or arrangements with other employees who are participants inthe South Miami Pension Plan providing for credited service for work with other employers?If so,those arrangements should also be included inthe ordinance.1 If the city attorney drafts the amending ordinance,we request an opportunity to review it before itis submitted to the Commission.If you would like usto draft the ordinance,(a service which is covered byour retainer),please askthe City to furnish uswiththe answers tothe above questions and we will prepare the amendment for review bythecity attorney. Before the amending ordinance can be finally adopted bythe Commission,an actuarial impact statement must be prepared by the Pension Plan's actuary.Now that Mr.Scurr's employment with the City has terminated,the exact impact of granting this other governmental service (that is,the amount by which this other service increased the pension he would otherwise earn)can be definitely determined.Thus,the actuary will be able to provide us with a definite cost for this additional credited service.The $89,716.80 which the city has already paid towards that cost (as shown in Finance Director OB&ikoya's December 27,2002,Inter-Office 'Thcanswers to these questions must be provided by the city.Since itwas the city that adopted the resolution and was party to tf«emptoyment contract ofMr arnblgahiesirithciwodacumeailA.Astrustees ofthe Pension Plan,youareantboriad only to ftncrpttt and construe ptovisiott ofthe Pension Plan;you do not have the amhority to conrtroe orimerpret ambiguous provisions ofthe city'semployment contracts. EO*d dS0 5 90 eo-OI-UBC Board of Trustees City ofSouth Miami Pension Funds c/o Jeannette Enrizo-Navarro,Human Resources Manager January 10,2003 Page3 Memorandum)will be credited towards this cost.The actuary should be notified of this contnbution already made by the city so that the actuary can prepare a funding schedule for any balancewhichmaybedue. Based upon the understandings and for the reasons set forth above,it is our opinion that unless and until the Pension Plan is amended by ordinance,the Pension Plan cannot grant credited service to Mr.Scurr for Mrservicewith-other gcrvenimental employers and cannot pay Mr.Scurr a pension based upon the other governmental service.Furthermore,should be Pension Plan not be so amended,$89,716.80 paid by the City to the Plan for the other governmental service should be either refunded to the city or credited towards future required city contributions. Yfiurs truly, u. lOBERTA-SUG^UqWAN RAS/ld Gi^MPF&PINOl^XCrtyMsrfcunP^^ frO'd dS0*90 eo-ot-uer CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM ******* To:ScSSLg, Fr0m''St-n-°fka^CPA Re:P«*™Buyback-Finance Director charles ^ *******************♦******»*»*»♦, In response to a phone inquiry from one of our City Commissioners and a follow ur,conversion between you and me,Iam writing this memo to request direction onTtoepaymentsofthepensionbuybackforformerCityManagerCharlesSrToSer L IK m%*°^COmmiSSi°n entered **-«***»•«contract 2.Section 25of the contract provides for "Credit in the City retirement system fortune^employed mother governmental entities and annua,contribute to the 3.In order to accomplish the requirements of the provision,the City requested andrecerved^formation from Mr.Scurr pertaining to his past salaries toothe^ governmental entities that he was employed.4.The information received was used to determine his average salary in the last ten EsSr working for city °f s°uth ^^~rw2 5'sies,™1 was *"used t0 calculate Ws total pension buyback «*»»*of 6'Th ^h3S T^6 ^followmS Payments towards Mr.Scurr's pension buybackandhisannualcontributionssinceinceptionofthecontract:' YEAR BUYBACK AMOTTNT ANNUAL CmvTPTR.rrrr™ 2000 $28,189.18 $4,495.00 2001 27,054.34 4'674 80 200°3 2L°^54 wJS20036,463.74 ,683.o4 TOTAL 89,716.80 17,998.89 Page2 Charles Scurr Pension Buyback Srf ^ICW'S ^?y °f n&W**wM»the City of South Miami is Februarv 172003,and his pension buyback would not have been Mly paid asSto S ' PleaseadviseonfUtLTuS^^^ RESOLUTION NO.203-98-10470 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO THE CITY ^o?™rPRCHARLFpD ^p***0™™™*0F CITY MANAGER;APPOINTING CHARLES D.SCURR TO SERVE AS CITY MANAGER- PROVIDING FOR SALARY ADJUSTMENT;PROVIDING FOR BENEFITS;AND PROVIDING FORAN EFFECTIVE DATE. WHEREAS,the Mayor and City Commission of the city of South Miami are authorized pursuant to article II,section 7 and article III,section 1 of the city Charter,to appoint a Citv Manager,who shall serve at the pleasure of the Commission;and WHEREAS,the City Manager shall be the chief executive officer and the head of the administrative branch of the citv government;and •lty- ^•4.^?ER^'article III,section 2 of the city Charter provides that the City Manager shall be appointed solely on the basis of ,?f.hfr^eXecutiye and administrative qualifications,shall bequalifiedbyexperienceandtraininginmunicipalgovernmentand shall be a graduate of a recognized school of government of have equivalent experience;and WHEREAS,on January 6,1998 by Resolution No.8-98-10275 the City Commission provided for the selection of a City Manager bv Creating a City of South Miami City Manager Search Committee;and WHEREAS/ON March 3,1998 by Resolution No.52-98-10319 the City Commission provided for the composition of that City Manager Search ^Committee to be comprise into two groups;l)a Professional City Manager Committee,comprised of three'current full members in good standing of the International City/Countv Managers Association (ICMA);and 2)a Citizen Search Committee comprised of five members who would be selected from amona the citizenryoftheCity;and WHEREAS,on March 17,1998 by Resolution No.58-98-10326 Lee Feldman,City Manager for the City of North Miami,John Asmar City Manager from the City of Homestead and Linda Karlson,Citv Manager for the Town of Bay Harbor Islands were appointed to the Professional City Manager Search Committee and were charged with the responsibility of reviewing the applications submitted and narrowing that number down to 10 prospective candidates for review bythe Citizen Search Committee;and WHEREAS,on April 7,1998 by Resolution No.75-98-10342 Ann Bass Bruce Hoffmann,John Whitehead,III,Subrata Basu and Ned W.Valois were appointed to the Citizen Search Committee and were charged with the responsibility of further narrowing down the prospective candidates for submission to the City Commission City ot south mW,Florida ^n a p^rLnent ca^fftv *2 £*pleasure of the Commission.f^aneni:capacity at the Section 2. of $85,000 annually as well compensation,car allowance, Retirement System fortime entities,as provided inthe adoptedCity budget. Charles D.Scurr shall receive a salary HZ*lnsur*?ce.benefits,deferredandcreditmtheSouthMiami employed m other governmental Section 3. upon approval. City of south Miami 1997/98 final This resolution shall take effect immediately PASSED AND ADOPTED this 21st day of July _,1998 ATTEST: CITY CLERK READANDAPPROVEDASTO FORM: —^r<?i CITY ATTORNEY /<z>exjAj^ APPROVED: MAYOR COMMISSION VOTE: Mayor Robaina: ViceMayor Oliveros: CommissionerRussell: Commissioner Feliu: Commissioner Bethel: 5-0 Yea Yea Yea Yea Yea JULIO ROBAINA MAYOR To:Hakeem Oshikoya GifygfSouth xJiuinw 6130 SUNSET DRIVE SOUTH MIAMI,FLORIDA 33143 305/663-6340 FAX 663-6348 '^{^mJFrom:Julio Robaina Date:July 19,1999 Re:Charles(Scurr ASouth Miami Retirement System The purpose ofthis memorandum isto clarify theintent of theCityCommission resolution (Resolution attached)concerningtheretirementcreditforthe City Manager. Thisis part of the compensation section of the resolution andisthe financial responsibility of theCity. CC:C.Scurr EMPLOYMENT AGREEMENT BETWEEN CITY OF SOUTH MIAMI AND CHARLES D.SCURR This Agreement,is made and entered into this 5th day of October,1999,between theCity of SouthMiami,a Florida municipal corporation,andCharlesD.Scurr. WHEREAS,the City of South Miami andCharlesD.Scurr wish to continue to employtheservices of Charles D.Scurr asCity Manager oftheCity of SouthMiami;and WHEREAS,theCity and City Manager desire to provide for certain procedures, benefits,requirements and tosetworking conditions regarding theemployment of the CityManager by theCity. NOW,THEREFORE,in consideration of the promises,mutual covenants, conditions,provisions and undertakings contained inthis Agreement,and for other good and valuable consideration,the receipt and sufficiency of which is acknowledged byboth parties,thepartiescovenantand agree witheachotherasfollows: 1.The City Manager shall: 1.1 Duties.Continue to perform the duties of theCity Manager of theCity of SouthMiamiin accordance withthe terms conditions and provisions contained in this Agreement,the Charterand Code of Ordinances of the City of South Miami,andas otherwise lawfullydirectedby motion or acclamation ofthe City Commission. 1.2 Time Required.TheCityManagerrecognizesthe position is not and cannotbeanhourly-type employment andthe City Managershall work as requiredinordertocarryouthisdutiesand responsibilities. 1.3OutsideEmployment.TheCity Manager may engagein outside employmentsolong as:1)prior permissionisreceivedfromtheMayor andCity Commission upon disclosure of the nature of theemployment, durationandtheestimated number of hoursper month that will be devoted tothe employment,2)theemployment does notviolatethe prohibition againstdualofficeholdingand3)the employment does not createa potential conflict of interest or detract from thetime necessary to accomplish city work,as determined inthe discretion of theCity Commission.Theterm "Outside Employment"shall not be construed to mean occasional teaching,publication,pro bono activitiesorconsulting servicesperformedon time off,not exceeding 5hoursa week unless approved by the City Cornmission. 2.The City shall: 2.1 Employment.Continue to employ Charles D.Scurr as City Manager consistent with the Charter and Code of Ordinances of the City of South Miami,and as otherwise lawfully directed by motion or acclamation ofthe City Commission and the terms and conditions ofthis Agreement 2.2 Salary.The amount of Ninety three thousand five hundred dollars ($93,500.00)for the period beginning October 1,1999,payable in accordance with the regularly scheduled method of compensation for other City employees and subject to adjustment in accordance with this Agreement 2.3 Annual Adjustment Annually review the salary of the City Manager as part of the annual budget annually in accordance with the City Charter. The City Commission may,in its sole discretion,grant a merit salary increase and,or,other benefits totheCity Manager. 2A Cost of Living.COLA as approved by the City for other general employees. 2J>Retirement Benefits.Credit in the City retirement system for time employed in other governmental entities and annual contributions tothe system. 2J>General Expenses:The City shall pay a monthly expense allowance equivalent to that provided for the individual members of the City Cornmission. 2.7 Professional Dues.Reasonable and customary dues,training and subscriptions necessary for the City Manager's continued professional participation,growth and advancement,including national and state professional organizations. 2.8 Transportation.A car allowance of $500.00 monthly plus a gasoline allowance of $100.00 monthly,or if requested by the City Manager,a City car,in which event the City shall be responsible for providing for liability, property damage and comprehensive insurance and for the purchase, operation,maintenance,repair and regular replacement of the vehicle. Entitlement to use of the City vehicle shall cease upon the City Manager's terminationor resignation. 2.9 Insurance/Medical.Payfamily coverage healthanddentalinsurance under thecity plans,longterm disability insurance,andlife insurance in an amount equal to annual salary,and an annual physical. 2.10Leave.Equivalent to other City employees at senior seniority levels as provided in theCitypersonnel regulations. 2.11 Deferred Compensation.An annual amount equal to 11%of the City Manager's annual salary ,into the Plan on the City Manager's behalf,and agree to transfer ownership to the City Manager of the Plan's fund upon theCityManager'sresignationortermination. 2.12Equipment.Providetheequipmentnecessarytoperform the duties of City Managersuchascellphone,pagerandradio. 2.13 Indemnification and Defense of Claims.The City shall defend,save harmlessand indemnify theCityManageragainstany tort,professional liabilityclaimordemandoranyandallotherlegalactionarisingout of an allegedactoromission occurring intheperformance of theCity Manager'sduties.TheCitywill litigate,compromise orsettleanysuch claimorsuitandpaytheamount of any settlement or judgement rendered thereon.TheCity,orits insurance carrier,will providelegal representation fortheCity Manager,suitable totheCity Manager,for any andallclaims,proceedingsorlawsuitsrelated to orarising out of the City Manager'saffiliationwiththeCity.This indemnification provisionshall survive the termination ofthis Agreement. 2.14Bonds.Payforanycost of bondsrequiredpursuanttolaw,ordinance or Charter. 3.Termination.The CityManagershallserveatthe pleasure of the City Commission as defined by theCity Charter.Nothing in this Agreement shall prevent,limitor otherwise interfere withthe absolute right of a majority of the full CityCommissionto tenninate the services of theCity Manager atany time,withorwithout cause,andwithoutpriornotice,in accordance with ArticleHI,Section 3 of the City's Charter,subject onlyto the provisionsset forthin Section 4 of thisAgreement.Inthe event the City Manager voluntarily resigns his position withthe City,then theCity Manager shall givetheCity Commission60-dayswritten notice,in advance,unlesstheparties agree to waivesuchnoticerequirement Termination forcauseshallmean termination for thesame grounds aswouldresultinthe forfeiture of office by a Commissioner under Article II,Section 4.A.of the City Charter. 4.Severance Terms andConditions.Severance pay,as authorized by the Charter, shall notbe payable intheevent of a voluntary resignation or termination for cause.Inthe event theCity Manager isterminated without cause by amajority of thefullCity Commission,ortheCity Manager resignsfollowinga suggestion made in writing or ata public meeting or workshop by any two members of the Commission thatheresign,or the City Commission suspends theCity Manager without cause for more than 90 days,inwhich events the City Manager mayathis option be deemed terminated without cause,theCity shall pay theCity Manager an amount equal 30-days of theCity Manager's salary and accrued benefits.Any payments duetotheCity Manager for severance,accrued leaveorother obligations shallbepaidincashin full within 30 days of resignation or termination. 5.Suspension.The City Conimission may suspend the City Manager with full pay and benefits at any time during the term of this Agreement The Commission may suspend the City Manager without pay and further benefits but only for cause as described in Section 3 and upon giving the City Manager at least 30-days written notice of the charges to be heard at apublic hearing on thecharges.6 6.Term Theterm of'this Agreement sliaU be athree (3)year term commencing October 1,1999 and ending September 30,2002. 7.Contact Payment In the event the City Manager is terminated without cause or the City Manager resigns as provided in paragraph 4,the City shall additionally pay the City Manager the balance"of payments and benefits provided for under this contract up to a maximum of six months plus one additional month for eachyear of service. 8.Amendment The provisions of this Agreement constitute the entire understanding between the parties.Only the representations and understanding contained herein shall be binding upon the City Commission and the City Manager.No other representations or understanding are binding on the City Commission and the City Manager unless contained in this or a subsequent duly adopted Agreement.No modification,amendment or alteration in the terms and conditions of this Agreement shall be effective unless approved in writing by both parties. 9.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 awhole,or any part of the Agreement,other than thepart declared tobeinvalid. 10.No Property Right to Employment.The contract for employment does not change the nature of the employment from at will employment nor create a property right to employment under the laws ofthe State of Florida. 11.No Waiver.The waiver by either party ofa breach of any provision of this Agreement by the other shall not operate or be construed as a waiver of any subsequent breach by that party. 12.Obligations Personal.The rights and obligations herein granted are personal in nature and cannot be transferred by the City Manager. 13.Reduction of Compensation.In the event the City Commission at any time during the employment of the City Manager,reduces the annual financial refuses,following written notice,tocomplywith Z'**C™fJ™benefiting Je C*Manager,then fa that ^^Z^£7£option,be deemed to be terminated within the terms ouflineTm8|S ?J54above,at the date of the reduction or the refusal and th™?provision and other termination provisions JStacSL^E2"£X annualsdary^dbenefitlevelmeffectpriortothereducrTon^S ** 14.Florida Law.This Agreement shall be governed hv Florid i protected property right in employment ieaeraiiy 15.Waiver of Right to Jury Trial.The parties knowingly waive their ririrt to .jury tnal in any legal action arisingunder,or mlatmgSS^me^f 16.Effectiye Date This Agreement shall become effective on the date of armrovalbyresolutionoftheCityCommission.approval .>N WITNESS WHEREOF,the City of South Miami has caused this Agreement toChaXl,^eX^ted.°a lf behalf ^its ^or «*duly attested by Tc^Skl^dChariesD.Scurr has s.gned and executed this Agreement the day L yJfStb^ City of South Miami Attest: City.Clerk // J? Approved astoforand Legal sufficiency: •*./<£><&*L/&y£. CityAttorney Julio Robaina,Mayor City Manager RESOLUTIONNO.198-02-11547 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAML FLORIDA,RELATING TO THE CITY MANAGER;ACCEPTING THE RESIGNATION OF CHARLES D.SCURR AND AUTHORIZING SEVERANCE PAYMENT;PROVTDING AN EFFECTIVE DATE. WHEREAS Charles D.Scurr was appointed by the Mayor and CitvCommissionoftheCityofSouthMiamitoserveasitscitymanagerandMr.Sam bas fully and faithfully served the city during that time;and WHEREAS,Mr.Scurr gave notice on December 17,2002,that he desires to resign as city manager and has notified the city commission that he will continue to be available as necessary and appropriate to assist with the transition; WHEREAS,the Mayor and City Commission accept his resignation upon theterms and conditions stated inthis resolution. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAML FLORIDA; a ~„Sefc°n {,,.^.resignation of Mr.Charles D.Scurr as city manager oftiieCityofSouthMiamiisaccepted.The resignation shall be effective 60 davs from December 17,2002;provided,however,in the event the city commission appoints a permanent city manager during that 60-day period of time the resignation shaU be effective upon the date of the appointment Mr.Scurr shaU be on leave following this commission meeting to the effective date of his resignation.Regardless whether a city manager is appointed during the 60-dav penod,Mr.Scurr shall receive salary and benefits as follows:(1)hTwill receive S^TT^f ^^n ^ne6tS durfng *"**30 day*md (2)Payment shallbemadeforthesecond30daysprovidedthathehasnotcommencedemployment ££5i&2 *•Scm "**•other empIoyment he shaU b<pS to Section^This resolution shall take effect immediately upon approval. Additions shown by underlining and deletions shown by ovcrarilcing. Res,No.198-02-11547 PASSED AND ADOPTED this 17th day of December,2002. AITEST:APPROVED: YCLERK COMMISSION VOTE: READ AND APPROVED AS TO FORM: CITY ATTORNEY '" \\DeU_6100\Documents\0022\EGG\16188.doc Page2 of 2 COMMISSION VOTE: Mayor Feliu: ViceMayorRussell: Commissioner Wiscombe: Commissioner Bethel: Commissioner McCrea: 5-0 Yea Yea Yea Yea Yea