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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. 13 14 WHEREAS, the City Commission approved an employment contract for former 15 City Manager Charles D. Scurr on October 5, 1999; and 16 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 20 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 25 26 WHEREAS, the City has received several legal opinions expressing the 27 advisability of settling this matter out of court; and 28 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. 35 36 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY 37 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: 38 39 Section 1. The above whereas clauses are incorporated by reference. 40 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 Page 2 of 2 COMMISSION VOTE: Mayor Russell: Vice Mayor Palmer: Commissioner Wiscombe: Commissioner Birts- Cooper: Commissioner Sherar: