02-15-05 Item 18i
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM
To: Honorable Mayor, Vice Mayor
REQUEST
Date: February 15 2 0 0 5
Subject: Agenda Item #
Commission Meeting
2/01/05
Re: Settlement with Charles Scurr
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA RELATING TO FORMER
CITY MANAGER CHARLES SCURR'S PENSION; AUTHORIZING
THE CITY MANAGER TO PAY AN AMOUNT NOT TO EXCEED
$89,716.80 TO METLIFE INVESTORS INSURANCE COMPANY ON
HIS BEHALF AS SATISFACTION OF THE RETIREMENT CLAUSE
IN HIS EMPLOYMENT CONTRACT; PROVIDING FOR THE
DISBURSEMENT FROM SETTLEMENT ACCOUNT 001 - 2100 - 519 - 9924;
AND PROVIDING AN EFFECTIVE DATE
BACKGROUND AND ANALYSIS
After receiving instructions from the City Commission to renegotiate the proposed settlement with
former City Manager Charles Scurr on the retirement clause of his employment contract, we were
able to come to agreement on a sum of $89,716.80. The full payment under the contract could
amount to $186,772.53, and we had originally reached an agreement for the amount of $107,000, so
this represents a considerable saving over our potential liability. Mr. Scurr has provided us an
annuity plan that is satisfactory to him for the proposed amount. If the attached resolution is
approved by the Commission, a check will be issued to Metlife Investors Insurance Company for
credit to Mr. Scurr's annuity plan for the negotiated amount and will release the City of any future
commitments to his retirement benefit.
RECOMMENDATION.-
Approval is recommended.
I RESOLUTION NO.
2
3 A RESOLUTION OF THE MAYOR AND CITY
4 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA
5 RELATING TO FORMER CITY MANAGER CHARLES
6 SCURR'S PENSION; AUTHORIZING THE CITY MANAGER
7 TO PAY AN AMOUNT NOT TO EXCEED $89,716.80 TO
8 METLIFE INVESTORS INSURANCE COMPANY ON HIS
9 BEHALF AS SATISFACTION OF THE RETIREMENT
10 CLAUSE IN HIS EMPLOYMENT CONTRACT; PROVIDING
11 FOR THE DISBURSEMENT FROM SETTLEMENT ACCOUNT
12 001 -2100- 519 -9924; AND PROVIDING AN EFFECTIVE DATE.
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14 WHEREAS, the City Commission approved an employment contract for former
15 City Manager Charles D. Scurr on October 5, 1999; and
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17 WHEREAS, section 2.5 of the contract provides for him to receive "credit in the
18 City retirement system for time employed in other governmental entities and annual
19 contributions to the system "; and
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21 WHEREAS, this provision contradicts the current buyback clause of the City
22 pension plan which limits the eligible time for buyback to five years for services rendered
23 to the City of South Miami only, making it impossible for him to receive credit for any
24 time worked for other governments; and
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26 WHEREAS, the City has received several legal opinions expressing the
27 advisability of settling this matter out of court; and
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29 WHEREAS, the City Manager has negotiated a settlement with Mr. Scurr which
30 states that the City will purchase an annuity with Metlife Investors Insurance Company
31 that will provide him a satisfactory amount of benefit closer to what he would have
32 received under the regular City pension plan at a cost not to exceed $89,716.80, to be
33 paid from the settlement account 001- 2100 -519 -9924 which presently has a balance of
34 $107,000.
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36 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
37 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
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39 Section 1. The above whereas clauses are incorporated by reference.
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Section 3. The City Manager is authorized to pay an amount up to $89,716.80
to Metlife Investors Insurance Company on behalf of Charles D. Scurr to purchase an
annuity plan for him as full satisfaction for the provisions of his employment agreement.
Section 4. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of February, 2005.
ATTEST: APPROVED:
CITY CLERK MAYOR
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
JXBlazekon "McGrufP \Resolutions \Reso Scurr Pension.doc
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COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar: