10-05-04 Item 19CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER- OFFICE MEMORANDUM
To: Honorable Mayor, Vice Mayor
and City Commission
From: Maria V. Davis
City Manager iv,
REQUEST
Date: October 5, 2004
South Miami
QN- pmdicaCity
2001
Subject: Agenda Item #
Commission M ng
10/05/04
Re: Settlement with Charles Scurf
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 NEGOTIATE A SETTLEMENT
PAYMENT NOT TO EXCEED $107,000 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 consulting with several attorneys, including Ronald Cohen, Steve Cypen (both independent
pension specialists), our City Attorney and John De La Gloria, their unanimous opinion is that we
should settle the matter concerning the retirement clause in former City Manager Charles Scurr's
employment contract. The full payment under the contract could amount to $186,772.53, but we
have reached an agreement for the amount of $107,000 stated in the authorizing resolution (of
course, we will attempt to negotiate this further). Mr. Scurf has provided us an annuity plan that is
satisfactory to him for that amount. If the attached resolution is approved by the Commission, a
check will be issued to Metlife Investors Insurance Company for credit to Mr. Scurf'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 NEGOTIATE A SETTLEMENT PAYMENT NOT TO
8 EXCEED $107,000 TO METLIFE INVESTORS INSURANCE
9 COMPANY ON HIS BEHALF AS SATISFACTION OF THE
10 RETIREMENT CLAUSE IN HIS EMPLOYMENT
11 CONTRACT; PROVIDING FOR THE DISBURSEMENT
12 FROM SETTLEMENT ACCOUNT 001 - 2100 -519 -9924; AND
13 PROVIDING AN EFFECTIVE DATE.
14
15 WHEREAS, the City Commission approved an employment contract for former
16 City Manager Charles Scurr on October 5, 1999; and
17
18 WHEREAS, section 2.5 of the contract provides for him to receive "credit in the
19 City retirement system for time employed in other governmental entities and annual
20 contributions to the system"; and
21
22 WHEREAS, this provision contradicts the current buyback clause of the City
23 pension plan which limits the eligible time for buyback to five years for services rendered
24 to the City of South Miami only, making it impossible for him to receive credit for any
25 time worked for other governments; and
26
27 WHEREAS, the City has received several legal opinions expressing the
28 advisability of settling this matter out of court; and
29
30 WHEREAS, Mr. Scurr has forwarded a proposal for the City to purchase an
31 annuity with Metlife Investors Insurance Company that will provide him a satisfactory
32 amount of benefit closer to what he would have received under the regular City pension
33 plan at a cost not to exceed $107,000, to be paid from the settlement account 001 -2100-
34 519 -9924 which presently has a balance of $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 City Manager is authorized to negotiate a settlement with Mr.
40 Scurr with authorization to pay an amount up to $107,000 to Metlife Investors Insurance
41 Company on behalf of Charles Scurr to purchase an annuity plan for him as full
42 satisfaction for the provisions of his employment agreement.
43
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Section 2. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of October, 2004.
ATTEST: APPROVED:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
MAYOR
JAMy Documents \resolutions\Resolution pension payment.scurr.doc
Page 2 of 2
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts - Cooper:
Commissioner Sherar: