HomeMy WebLinkAboutR-98-0102J-98-167
1 /27/98
98- 102
RESOLUTION NO.
A RESOLUTION DIRECTING THE CITY MANAGER, THE CITY
ATTORNEY AND THE CITY CLERK TO MAKE A TIERED
EXECUTIVE PERSONNEL COMPENSATION AND BENEFITS
STUDY OF OTHER COMPARABLE MUNICIPAL ENTITIES IN
THE STATE OF FLORIDA, WITH SAID TIERED STUDY
CONSISTING OF TWO PARTS: (1) CONSIDERATION OF ANY
SUCH ENTITIES WITH A SALARY CAP OF $96,000 OR LESS,
AND (2) THOSE ENTITIES WHICH PERMIT A SALARY IN
EXCESS OF $96,000; FURTHER DIRECTING THAT SAID
TIERED STUDY AND RECOMMENDATIONS BE BROUGHT
BEFORE THE CITY COMMISSION FOR THEIR
CONSIDERATION.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. The City Manager, City Attorney and City Clerk are hereby directed to
make a tiered executive personnel compensation and benefits study of other comparable
municipal entities in the State of Florida, with said tiered study consisting of two parts: (1)
consideration of any such entities with a salary cap of $96,000 or less, and (2) those entities
which permit a salary in excess of $96,000.
Section 2. The City Manager, City Attorney and City Clerk are hereby directed to
bring said tiered study and recommendations before the City Commission for their
consideration.
Section 3. This Resolution shall become effective immediately upon its adoption.
CITY COMMISSION
MEETING OF
JA N ? 7 1998
Resolution Na
� l02
PASSED AND ADOPTED this 27th day of January , 1998.
XAVIER L. SUAREZ, MAYOR
ATTEST:
WALTER J. FOEMAN
CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS:
" � ��- 9 1A /)
EL EDWARD M XWELL
I TERIM CITY A ORNEY
W2242:CSK:JEM
In accordance with Miami Coda Sec. 2.36, since tho Mgor did not Indloate approval of
this legislation by signing it in the designated place provided, said legislation now
becomes effective with the elapse of ten (10) days from the date of Commission action
regarding same, without the Mayor exerc' g veto.
Walter . F an, City Clerk
-r
98- 102
TO
FROM
CITY OF MIAMI, FLORIDA 13
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members DATE: JAN 2 I IM FILE
of the City Commission
SUBJECT: Discussion Item for 01/27/98
Commission Meeting
Jose Garcia -Pedrosa
City Manager I
REFERENCES:
ENCLOSURES:
At the request of Vice -Chairman Teele, a discussion concerning the policy of
compensation and benefits for high-level personnel is scheduled for the City
Commission meeting of January 27, 1998. _
Attached are the following documents for your review:
1) Memorandum from R. Sue Weller, Labor Relations Officer,
attaching the following documents:
• Resolution 9 7- 8 7 9
• Listing of Mayor and City Commissioner Benefits
• December 30, 1997 Commission meeting minutes
• Premium quotes for term life insurance for elected officials
• City Manager benefit package
• Professional services agreement with KPMG Peat Marwick LLP
2) KPMG Peat Marwick LLP proposed engagement letter for review of
executive benefits over the next six to eight weeks at a cost not to exceed
$30,000.
98- 102
TO: Jose Garcia- Pedrosa
City Manager
FROM : R. Sue Weller
Labor Relations Officer
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
DATE: January 20, 1998
SUBJECT: City Manager Benefits
REFERENCES:
ENCLOSURES:
FILE:
Following is the background information leading up to the January 13, 1998 city commission
discussion of benefits for the City Manager.
At the December 30, 1997 commission meeting the benefits and compensation of the Mayor and
City Manager were discussed. Upon a review of the current benefits received, the City
Commission passed a Resolution affording the Mayor an annual salary of $97,000 and the same
benefits presently afforded the City Commission. In reviewing the benefits, the City
Commission noted they did not have life insurance available to them. The Commission directed
the administration to provide premium quotes for life insurance coverage at the next commission
meeting. Although the ' City Commission discussed benefits and compensation for the City
Manager, there was no authorizing legislation passed. The Commission did discuss the issue of a
salary cap of $96,000 and there was some discussion of the type of benefits the City Manager
might receive.
At the January 13, 1998 commission meeting a compensation and benefit package for the City
Manager was presented for discussion. In a follow-up to the December 30, 1997 commission
meeting, premium quotes for term life insurance for the City Commission were also presented
for discussion. Commissioner Teele indicated that the review of benefits for the Mayor,
Commissioners and City Manager would be examined along with the study on executive benefits
to be performed by Peat Marwick.
In conversations with Peat Marwick, they indicate the executive benefit review will take six
weeks to two months to complete at an approximate cost of $30,000.
Attached as backup is the following information:
• Resolution 97-879
• Listing of Mayor and City Commissioner Benefits
• December 30, 1997 commission meeting minutes
• Premium quotes for term life insurance for elected officials
• City Manager benefit package
• Professional services agreement with KPMG Peat Marwick LLP
9S- 102 3
1 1 -• t •4 -- • 4f E G t 0 F•
w
J-97-895
12/9/97
RESOLUTION NO. 4 f 879
A RESOLUTION FIXING AND ESTABLISHING
THE SALARY AND COMPENSATION FOR.
MAYOR XAVIER L. SUAREZ.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. Mayor Xavier L. Suarez shall be paid an
annual salary of Ninety-seven Thousand dollars ($97,000.00).
Section 2. Mayor Xavier L. Suarez shall be a full-time
governmental employee and shall not. -engage the private practice
of law or in any employment in the private sector.
Section 3. Mayor Xavier L. Suarez shall be provided all
the benefits presently afforded the City Commissioners.
Section 4. The herein salary and compensation shall be
effective as of November 14, 1997.
Section S. This Resolution shall become effective
itmitediately upon its adoption.
PASSED AND ADOPTED this 9th day of j2eCPm�r 1997.
?ccordance with Miami Code Sec. 2.36, since the Mayor did not inellov!e- ter^ •�' �f
leglsiatioh by signing it in the designated place provided, _15* : c•*
tomes effective with the elapse of ten (10) days from the date of Commiasiciz .�
;arding some, without the Mayor exercisin a veto.
ATTEST.: ��• /-'�-ems./
Walt Fin' VIER L. SUAREZ, MAYOR
FTAI.Z'F:R 7. FOEMAiY, CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS:
A �Q RS ,
CITY A; R Y
SSS:W2071e/
98- 102
5
MAYOR AND CITY COMMISSIONER BENEFITS
• PHONE ALLOWANCE $300 per month (submission of cellular contract
required)
or or
PHONE PROVIDED Phone provided by City with itemized billing,
responsible for billing costs over $300
• CHIEF OF STAFF PHONE One cellular phone provided with itemized
billing
• CAR ALLOWANCE $900 per month
or or
CAR PROVIDED Leased car provided/monthly lease including
car insurance not to exceed $900, per month
• GAS CARD AMOCO gas card provided with itemized billing
• EXPENSE ALLOWANCE $800 per month
• SALARY Mayor: $97,000 annually — Commission: $5,000
per year or $192.31 per pay period
• HEALTH/DENTAIJVISION Premium for single and family coverage paid by
City
• LIFE INSURANCE None currently provided
• FAX MACHINE Upon request, one fax line and one fax machine
provided for use at home, if available
• COMPUTER Upon request, one lap top computer provided
per office, if available
• PRIVATE PHONE LINE Private phone line provided for home, monthly
billing paid by City
• PENSION BENEFITS Provides for retirement income after 10 years
total service as elected official of the City of
Miami equal to 50% of the highest of the last
three year's W-2 pay. Upon vesting, retirement
allowance increases by 5% for each year of
service to a maximum of 100%.
Approved by Commission 12/09/97
(R-97-879) 7
98- 102
.-. t l t 'It .. •_' :.ZT 1-4 1_1 t -► 1
1.iC..DIRECT INTERIM CITY MANAGER To.. INSTRUCT EXTERNAL
AUDITORS "TO'kESEARCH AND RECOMMEND EXECUTIVE BENEFITS
PLAN FOR CITY MANAGER -- FURTHER REQUEST RESEARCHING
ESTABLISHMENT OF MULTI -TIER BENEFIT PLAN FOR EXECUTIVES
BASED ON CITY RESIDENCY -- SEE LABEL 13.
1. Vice Chairman Teele: *Mr. Garcia; I don't... because I don't -mean
to interrupt you. But's it's very offensive when people start
projecting individual names becatuse it's embarrassing to•the
person whose name you cite. And, to quite.frankly, to what it is
we aire trying to do. Look, I am willing, to conceive that you are
a great administrator. I am willing to conceive that you have
all the requisite criteria to be the Manager. All I.am asking.
you•.for is some assurance that you will develop a process that
will kllow women and men, White, Hispanic and Black to be able to
afford ..whatever God,•given potential they have to .reach the
highest' levels of jobs in the City of Miami without. any bias or
as little bids as is humanly possible.
Mr. Jose Garcia -Pedrosa: I want to give you that assurariCe,
Commissioner. I queSS, I am sensitive to it because I think that
perfotmance is even more important than assurances. The last
time :I -sat in that chair I hired and promoted more waned to
professionalpositions in that office than any of my
.predecessors. And, I might add, I hired and promoted more
African -Americans -in professional positions,. your City Manager
being one of them than any prior City Attorney including my
immediate predecessor who is a distinguished AAfrican-American.
vice Chairman Teele: I take that's an affirmative that you will
be sensitive to the issue.
Mr. Garcia -Pedrosa: Yes, sir_
vice Chairman Teele: The final question that I have and then a
comment. We are making a mockery of the concept of executive
benefits. I don't know if I agree with the Mayor's position on
the salary cap. Is it your understanding that you -will be
limited to ninety-five thousand dollars ($95,000), a salary?
Mr. Garcia -Pedrosa: Ninety-six thousand is what he wants to pay
me.
Vice Chairman Teele: Ninety-six thousand.
E
98- 102
Mr. Garcia -Pedrosa: Yes, sir.
vice Chairman Teele: Is that your understanding?
Mr. Garcia --Pedrosa: That's what he wants. Again, you will make
that decision but I want to...
Vice 'Chairman Teele: Well, I will look to the. Chairman for how
that motion goes..: But, what I don't want to see develop is. a
process now of winking and nodding, and in.that 'regard in this
plan,:.and then as :a separate resolution, "I' am proposing that' the
external auditor --'undertake an extensive review of a tier
executive plan.based upon on the salary cap that we have in place
and based upon other factors and to work with you in doing...
Commissioner Plummer:' We don't have a salary cap in place.
,.Vice Chairman Teele: To work with:xou'in doing that.
Commissioner Plummer: Well, he can't do that.
Vice Chairman Teele: I strongly believe;• however, that people
who get•executive benefits as a privilege should live in the City
of Miemi . I would,: 1 ike to . know i f you' . agree with that and • I a1ri
very frustrated, :.,44Xte •'frankly, that we continue to hire' people
that don't live in._the City of Miami for the top jobs but for.the
y entr-level jobs : wg hold everybody' s feet-`. to. the • f ire . I would
like 'for you. to : jubt comment, do you plan over the next year or
two or. three, and I 'ani in a similar position. Do- you plan to.. .
Commissioner Gort:' You got less. -time. You got...
. Commi*sioner Plummer: ° iP he gets a' place get: two.
Vice`dhairman Teele: I am going.to... I have got... I have got
an option on J.L.'s...
Commissioner Plummer: Oh, no. (phonetic)
Mr. Garcia -Pedrosa: I am not going to live with you,
Commissioner Teele. Separate places.
vice Chairman Teele: But, do you have a plan, do you have a view
on these people that are being hired that don't live in this City
and hdw do you propose to help us, because it's'a very important
issue in developing our tax base? There are five people.that are
in this room that I can assure you that live in the. City of
Miami. And, I think if we five live in the City, then everybody
who works for the City of Miami, as a matter of policy should
live in the City of Miami. Now, obviously, there are going to be
exceptions, you don't want to uproot families. You are going to
have to deal with some things. I know that you probably lived on
Miami Beach. Do you live on Miami Beach now?
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Mr. Garcia --Pedrosa: Yes, sir.
Vice Chairman Teele: Because you worked for Miami Beach.
Mr. Garcia -Pedrosa: Yes, sir.
Vice.Chairman Tee1e; And, I know you will be looking like I am.
looking for a more appropriate home and.it may take a year or two
to do that. And,: I am willing to give'you more time than: the
Charter gives me .which is to January 31st. Hut.. do you have a'
view on employees. living, especially executive employees :that
don't live in the City and how do you think we should factor.. that
in when we compute executive benefits?
Mr. Garcia -Pedrosa: Commissioner, ' I ' agree' that it is a . very:
.salutary policy to have the people ;that are in lmportant-
positions in any City live and breathe that City, shop in •the';-
supetmarkets, walk the streets, 'use .the:.'public facilities' and
what.4not. I think, even though Miami-ls a much larger City ,than
say Miami Beach, it's. important to have that. f lexibili.ty of`which
.you. spoke also because 'in , some areas when. we try, to find the'
ideal person; that person may or. may not live here. ' I am tel.ktng .
to: scsmebody,.for ex"mpje.in.the.Finance area that doesn�t live in
the. City, of Miami at the moment. : And' 'I think that flexibil•ity
':that you itentio'ded; it would be important in particvla=
situations. But, ; r agree .completely that it is ilapo=tart' .that •
not 'dell'' the. main people in .a City's government be a- part of. •that
pity but that they ..also identify triemselves, fully, with the
citi2'enry,.the'particular City that.they serve.
Vice Chairman Teele Mr. Chairman, thank you for your
induhgence. I would just only follow-up by asking and ask' for :..
permission when you will allow me, Mr. * Manager; Mr. Chairman': to . .
make 'a' motion. But, Mr. Pedrosa; I think it we are serious about'
this,- and if„the'RxternAl Auditor in your offic'& work together in
developing, say, atiered benefit o! three levels of four levels,
most -governments have'three,.four, some five and six. That -at
minimum, if someone is eligible for say a.tier two benefit,,.and
they don't live in the City, they should be required to drop down
to the next' level. I would just offer that as a positive
inducement, at least for something to think about because itIs
out of control. if you look at the people that are being hired
and* in this City, and say over sixty -thousand, dollars
($60,000) exempt people. I would be willing to bet you that 50
percent of the people, and I don't know the answer, that have
been hired in the last year, that are exempt, making over fifty
thousand, sixty thousand dollars ($60,000) a year, i -would be
willing to bet you 50 percent of them don't live in the City.
And, I think that's really a poor reflection on the Commission,
because we all live in the City and we like it. And, the Manager
and the Mayor and the whole process. So, I want to encourage
you, I don't want to ask you the question, will you move to the
City? I know you to be an honorable person but I would hope that
you will begin, to think about that in a way that your better 11
yu- 102
half, you know, and you are able to' deal with it in a less
tension fashion than I am trying to deal with it with my better
half. But, I think it's an important issue.
Mr. Garcia -Pedrosa: I agree, I agree completely.
Commissioner Plummer: I live in the'City and I don't have a
better half.
Vice Chairman Teele: And, I hope that you will weigh that in
appointing geople:'and J.L., has the best..., we11, 1 Won't get.
into that.
Commissioner Plummier. I live in' the City. and.I don't have a
better half.
Vice Chairman Teele: Well, you be'careful, J.L. You will be:..
Commissioner Gort: : Oh, . oh, oh.
Commissioner.PlummBr:- She lives. in the;Gables.
;Vice Chairman Teele: You will have your...
Commissioner Gort:':' You' drill be in trouble.
V16i'Chairman Teele: You will have your stuff on the street
tonight., you would•know why.
Commissioner Gort:. You will be in trouble.
vice :Chaizman Teel'o- In that regard, Mr. Chairman, I only..
would... I'would•.only suggest. that •At the appropriate time I
would.:. like to makes a: motion because I thi.rik. what apparently` at
least• three members of this * Commission- are - prepared to do. is
going to be a Mistake: . ' I think i t • i not : a ' mistake to make Mr.
Garcia -Pedrosa the..Manager. To.the. contrary,*it's to our credit.
But, 'I believe it ' 'mo
ve ove forward, withoc out some type of press
that allows people. to apply and be heard, and we can't appoint
anybody*. The Mayor and only the Mayor can appoint, and the Mayor.
could choose to look at a process and ignore it or look ata
is,
if the doomsday scenario occurs for some and the rainbow, scenario
occurli for others, -and that is, it hypothetically there were to
be an election, a new election in April, May, June, July time
frame, we are going to look real silly going through the 'same
process now for the fifth time in one year of naming a new
Manager. And, I think we ought to develop some discipline, some
check and balance on the Mayor, and say, Mr. Mayor, whoever you
are, Mr. Suarez, whoever you are, that you can name whatever
Manager you want, but we are not going to confirm anybody if they
are not in this pool because I would sure as heck hate to see us
in three or four months in that kind of scenario, which I
maintain may or may not happen, if we don't have a contingency
12 9_ 102
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plan for it. And, I think right now todate the musical chair
game over with the Manager has been the exclusive property of one
person in this building. Today, if we do th'is,'and'if:the courts
rule otherwise in three months, we will be a part of that process
.forever more. I think it's a mistake to name a:Manager today
without a process in which it gives everybody :an opportunity; I
am"willing•to concede that Mr. Garcia -Pedrosa would immediately
go into the pool of whatever names are going to be submitted.
Hut,=l think we have to put the brakes on the Mayor; on this
Mayof's musical chair.. to say, we will approve anybody in'�'this
pool.; but we are' not going to allow you to. , go "outside the pool
Becagse I can tell you;- this, if Mr. .Garcia -Pedrosa gets tipset ,
:.with:'• the Mayor and the. Mayor gets upset with him; I predict - he
will fire you because he has fired everybody else. And,.than we
are going to -,look. -silly looking for somebody else. And, having"a.
pool protects you
Commissioner Piumffier:. yeah.
Commissioner' Gort.;" ':We can ove=rule It,. .yeah.
: vice ;.Chairman Tei�e: is much as anything else. Sc;,. the
Commission, will dd-: whit -'it- wants. to :do.- I would like, Mr. ;
Ctiaiim6n whenever.; everybcdy'.'is through' to : make a motion - asking
ttiat'`.we consider a° pool, if we don't get'a. second" i.tls over; ;If
we. got -a second therewill 'be a little bit of , discussion, • maybe
you will agree to.it, maybe you won't.•.But, i just `want to be on
the, 1`ecord of saying, we ara at day one--Inthe City'- of Miami .
Ttiis is a new Charter, a new process and whatever we do.now.
establishes : the precedent for 'our future Commissions and .future
Mayors forever. AMi I think given the history of. :the lass .90
days;•. last 60 days, we - owe' it to. the ..future Commission . to
establish a process so that every Mayor.coming'here' today knows
that they must adhere to , a , process of - allowing .people to be -
consi:dered and it'a his appointment and all'we can do is confirm:
Thank you, Mr. Chairman, -very much'for+your indulgence.
Mr. Frank Rollason (Interim City Manager): I think he got it.
Mr. Garcia -Pedrosa: Thank you.
Chairman Hernandez: Commissioner Gort.
Commissioner Gort: Well two things. The reason I didn't ask any
questions is because I had the opportunity to meet with the..,
Garcia -Pedrosa before. My number one concern, he understands he
works for the Mayor but he also works for the Commission.
(APPGAUSEI The one thing that we also have to make very clear
is, the check and balance for the Mayor is this Commission right
here and I think that was proven today. You are recommending
some changes, we went with some of them, but the other ones we
didn't go with it. I think it's up to this Commission to take
that decision and I think if there is a, and hopefully, God f3
willing there won't be any changes in the future, but i ther
F'= 1 ?
is, -this Commission here takes four -fifth to go ahead and make
the decisions. So' I don't have any problems. .*Most of all, I am
glad.you are very much in favor of women, I'have got six at home
so I am sure they"are going to be very glad to hear that. And, I
am ready to move on.it right now, because. let me teal you .We
went through this process six months -ago.: We went, through a,
national search. We spent thirty-fi:ve thousand dollars
(s3S;000). We. questioned I.. don't know how many' individuals and
letIs face it, Miami. is different., It. takes a long time .for
anyb�dy who does: not live here `to understand this comdiynity.
This'is not a simple community..'. And, in my. business when. people .
come. up from other parts of the countries and try "to ."tell me .how
they;ere g63ng'•ta do things in Miami,:I keep telling them, - look;
i t . doeen' t work in Miami I. it might have worked .'in" LA (.Los -
Angeie)1 it might. have' worked -in New York, - but it's'-. di.ffere"*' in'
Miami..''We have a :different .composition, different;; type' of
people,. different style: Yt will take someone from the outside
to .'come here at . Least a, year to learn -the process and the
political process. -
chatrman Hernandez: Tony.
Commissioner'Plummer:. Mr. Chairman,•excuse me,. if I may?
ChaitmAn Hernandez: Commissioner Plummer.:.,
Cothi6issioner P1.yammer: I.- have ..some.. additional* questions Mr:
City :Manager; Mr....city, .Attorney it. this time, to my knowledge
there.'. is •no cap on the salaries. Am I correct? This Commission
has n`be so ordained.
MX A. Quinni. Jones, III, Esq. (City. Attoney): Mo, the
Comei'ssion hasnr
't .'placed... any cap, there' has been some ' discussion
of.co%jrse by the Mayor that that's what his desire is.
eoinmi'ssloner .Plummer: OK..:..- I am. concerned about your total Comp''
package. As I read.your whatever resume or ;whatever it was.from
the'Beach, it had a very clear if you leave scenario. .i have not
seen 'any of that in the package here, nor. .has there been. any
discussion. And, I think.that we need to know what is'your total
package. We know your. salary is going to be 96. We know you.are
going'to have a 401 - and as we heard I think the "wink and nod"
referred to by Arthur is that You are basically going to make _the
same $mount as you made, on the: Beach, and I have no problem with
that,'. OK. I have no problem with giving it to you in salary
because I think that if we want a top notch man we are going to
have to pay a top notch salary, and you are that man as, far as I
am concerned. But, I think for understanding purposes that. we
don't, get back into the Manager who was terminated into what
.looks like possibly litigation. I think this Commission has not
approved any total Comp. plan. And, that this Commission, if I
am not mistaken, has to approve the Comp. plan.
Mr ; , Jphes . That's correct. 9 8 r 102
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Commissioner Pluminer: That's the total plan. -as far as you
leaving, you know,- and other benefits. Hoa much vacation pay you
are going to get, you .know, how many days of vacation. All of
that, is part and parcel in my opinion,. and I just want to make
sure that you ' unders.tand that that package_ we have not seen, if
it exists, and trat you don't have it without this Commission's
approval.
Mr. Garcia -Pedrosa It is my. specific understanding,
Commissioner Plummer that you set the, compensation of the City.
Manager, and that. `-Anything that is worked - out has to ' be brought
. before .you for app ovii�6efore:it takes hold:
Commissioner ' Plummet: But, wh i t . I am saying is; at this. point,
there has been nothing surrendered to.
Chairman Hernandez Correct.
Mr. Garcia -Pedrosa; Right.
Commissioner' Plummer: At least *to me. ' OX.
Chairman Hernandez: No'. To any of us;
Mr: -Garcia -Pedrosa: Correct.
...Commiesioner.Plummer: Now, would you agree at this point, and 2':
understand, you know, what Arthur .is saying: wild you give me
the 'assurance if you sell -on Ml.ami. Beach or - lease that you - will
move into the City :of .Miami?
Mr. .Garcia -Pedrosa:, Yea; sir:
Commissioner Plummer: OK. Now, on the record, just so you know'
and V know. Mr. City attorney.
Mr. Jones: Uh-huh.
Commissioner Plummer: If this man is ratified today...
Mr.'Jones: Uh-huh.
Commissioner Plummer: ... does this City Commission, the
Commission, not the Mayor, have the right to terminate him?
Chairman Hernandez:' Uh-huh.
Mr. Jones: Yes, that provision is in the ordinance. It's...
vice Chairman Teele: Yeah.
Chairman Hernandez: Yeah. Absolutely. 9 8 W 102
15
Commissioner Plummier: And, It requires?
Mr. Jones: If .requires four -fifths of those members that
presently constitute the Commission.
CommIssioner Plummer: And, is that under the same malfeasance,
misfeasance as before?
Mr. Jones: No.
Commissioner Piumiger:.° Do we have to show cause?
Mr. Jones: No.. Z.t's' at will. It's at.will
Comm.lssione.r Plum4 r: We can terminate without any cause being
given?
Me. Jones: It's at will. -
-Commissioner Pluimm.er: At will.
Mr. Jones: That'8 CotteCt.
Commissioner Plummer: Sir, you understand that?
Mr'.:' Garcia -Pedrosa: And, that's .perfectly acceptable to me,
Commissioner. That's.the way I think i.t.should be.
Commissioner Plummer: I, hey, I totally Concur,'but there were
others; you know, •: the 'last Manager that might:litigate aid,
not
get my.vote, OK.
Mr. Garcia -Pedrosa: Commissioner, I don't'*think that...
Commissioner Plummer: And, that was simply. because of the fact
..that "he had it by.... He had it. I- have to ask one other'
question because Arthur has brought up a very, very...- point. I
am' not 'sure that I agree with it. Does this Commission have the
right to formulate a pool of names to send to the Mayor that he
has to choose from?
Vice Chairman Teele: No. I didn't say that.
Commissioner Plummer: Well, I am asking the...
Vice Chairman Teele: We can't do that. But, we can give him a
pool of names and say to him, if the names don't come from this
pool, it's going to be a rough confirmation hearing.
Commissioner Plummer: What's the difference?
Mice Chairman Teele: Well, basically, none.
say one.
16
Except, you can't
gs-- 102
. . r t -- l 15 T H t_t L <i Its '?
Commissioner Gort: You can't say one.
Commissioner Plummer: Oh, OK. All right.
Vice Chairman Tee1e:.° we do have the authority.to... If foux`.of
us agree that, this".is the pool .and .anybody, Mr. Mayor, that :you
name, if it doesn't come from this pooh and you donut show us an
extraordinary redson, they are not going to` get approval. The'.
normnation is DOA, Dead on Arrival.
Commissioner Plummier:.: My final question. Now, you are putting
me in' a confliCt_`of interest. My- .final . '.question is, , the .
confirmation today.:of..a City Manager , -'does that require three
votes or four?
Commissioner'Gort: :!Three.
'Mr . Joiies Its:` bhree ' votes .
'Vice Chairman Teel* s Three.,
Chairman Hernandez: Three.,'. yeah. _
commissioner Regalado: Three.
Commissioner Plummer: Three votes does.:.
Mr. Jones: 'A majoiity'of the Commission
. Comini:ssioner Plummier: ' r -am beginning to wonder around here.' W'd
used :to know majority is three..'. Now a'. majority is four --fifths:
Comm it.41oner Gort: ' It' all depends.:. It:'depends on- the issue, now.
Commissioner. -Plummer:: It depends on the issue. OK:
Commissioner Gort:..Yt depends 'on the issue
Commissioner Plummer: All right, and 'it is my understanding..if
you were to be confirmed today that in fact, that you would .
assume that office on the 5th day of January?
Mr. Garcia -Pedrosa: Yes, sir, that will be my hope if you would
permit me to do so.
Commissioner Regalado: I have got a question.
Commissioner Plummer: What do you need, the six o'clock news?
Commissioner Regalado: I have got a question for Mr. Garcia -
Pedrosa.
Chairman Hernandez: Commissioner Regalado.
102
17
yd-Ta oe 3
F• _ L L
i .,P1 - L t3 --"!: TH1_1 1 !. 10
Commissioner Regalado: Thank you, Mr. Chairman. Pepe, we have
read in the press, several weeks ago...
Commissioner Regalado: some problems that you had in Miami
Beach with Police.. Union. And, ' I think it's important that . when
you :come in, as you come in, :that ttie.`air is clear with the
different unions:in the City of Miami, and I.wish that you would
give. us your views'on how to deal with the. unions, especially
since we have. the different contracts coming up.:
Mr.' Garcia -Pedrosa: Commissioner, let me say'. that' one of the few
di s'appoihilhent's:that I take away from `my . job on the Beach, is ''the
fact that; for.,.' r6aso' n4 that 1. am about' to explaie Very,.. very
briefly. My.' strong: 'commitment' to the Labor. Union process and
:-'Coll'ctive "ba.rgaizillo has not been .. r' : think;. '. cast 'in - a ptoper
light. My' father .was a labor- lawyer`, in Cuba-fo .:44 years, wrote` .
'same:: of Cuba's; : most important social ` .legislation protecting
workers, represented' : labor unions., and : I grer� . up : with all' . the
bu words • of.. 'Co1Ie'&tive barga.inlriq And . the' things, that define
labor and managem4tnt-relations. S think' what ;happened_on Miami
Beach : is a combination :oi= two things.
INTER -OFFICE MEMORANDUM
Honorable Mayor and January 12, 1998 -=
Members of the City Commission
' Elected Officials
Life Insurance
Jose Garcia -Pedrosa
City Manager
Enclosed please d premium quotes received by the Risk
Management Divisio concerning the January 13, 1998 Commission
Discussion Item No. 32.
Enclosures
M
0S-- 102 19
CITY OF MIAMI ELECTED OFFICIALS
LIFE INSURANCE PREMIUM QUOTES
ANNUALLY RENEWABLE TERM LIFE INSURANCE POLICIES
FACE AMOUNT: $250,000
ESTIMATED TOTAL
ANNUAL PREMIUM*
INSURANCE COMPANY 1st Year
Transamerica Occidental $2,963
Without Accidental Death Benefits -
Southland Life $4,075
Without Accidental Death Benefits
All American Life $4,473
Without Accidental Death Benefits
*ESTIMATED YEARLY RENEWABLE RATES GUARANTEED FOR FIVE YEARS
American International Group
Blanket Accidental Death Benefits
$990
PREMIUM QUOTES OBTAINED BY CITY'S INSURANCE BROKER, AON RISK
SERVICES.
RATES QUOTED ARE SUBJECT TO INSURANCE CARRIER'S APPROVAL OF
EVIDENCE OF INSURABILITY WHICH MAY REQUIRE A MEDICAL EXAM.
08- 102 21
CITY OF MIAMI ELECTED OFFICIALS
BENEFIT AMOUNT: $250,000
GROUP TERM LIFE AND ACCIDENTAL DEATH AND DIEM DMERMENT (AD&D)
INSURANCE PREMIUM QUOTE FROM CIGNA
CURRENT INSURANCE
VOLUME
(EXECUTIVE GROUP
PLAN POLICY)
12,460,072*
*EXCLUDING ELECTED
OFFICIALS BENEFIT
AMOUNT
PROJECTED INSURANCE
VOLUME
13,960,072*
*INCLUDING ELECTED
OFFICIALS BENEFIT
AMOUNT
CURRENT ESTIMATED
TOTAL ANNUAL PREMIUM
$70,275
PROJECTED ESTIMATED TOTAL
ANNUAL PREMIUM BASED ON PREMIUM QUOTE
$129, 432
22 98- 102
INTER -OFFICE iMEAfIORA�IDUN1
Honorable Mayor and Members
of the City Commission
Jose Garcia- Pedrosa
City Manager
36
January 5, 1998
Discussion Item for 1/13/98
Commission Meeting
As per directive at the Special Commission Meeting held on December 30, 1997, a
discussion item has been scheduled for the January 13, 1998 Commission Meeting
concerning my Benefits Package.
9Q� 102 23
u1 u' 93 WED 16:20 FAI ZACK SP:IRBER
r.,
LAW OFRICES
Zack, Sparber, Kosnitzky, Spratt & Brooks
PROFESSIONAL ASSOCIATION
JENNIFER G. ALTMAN
JOHN ARRASTIA, JR.
MARC H. AUERBACM
GARY S. e1110093
ORION G. CALLISON, III
PATRICIA K. FLETCHER
ALAN G. OEFFIN
OrUMA WEIS5 GOOOSTONC
VALERIE J. GRANOIN
JOHN T. HOUCHIN
LOUISE T. JEROSLOW
OOUGLAS KNISKERN
MICHAEL KOSNITbcY
BERTHA CLAIM& LEE
R09ERT A- MALLOW
MITCHELL W. MANOLER
OrBORAH R. MAYO
NANCY ELLBN MCGLRTHY
MELYIN C. MORGENSTERN
MICMELLE N. NIEMEYER
KAREN J. ORLIN
MICHAEL G. PARK
PASLO S. OUESAOA
H. STEPHEN RASH
ROLAND SA14CHE2-MEDINA. JR.
JILL A. SOMAN
HENRI I. SPIEOEL
WILLIAM J. SPRATT, JR.
JAY A. STEINMAN
MARC J. STERNSAUM
THOMAS O. WELLS
STEPFIEN N. ZACK
8YRON L. SPAR®ER a
OF COUNSEL January /ry , 1948
PerronQl and Con rdentia
Mr. Jose Garcia -Pedrosa
City Manager, City of Miami
City Manager's Office
444 S.W. 2d Avenue (loth Floor)
Miami, Florida
Re: Emwl vm-en__t_,Iareement
Dear Jose:
I am enclosing the following documents_
ONE INTERNATIONAL PLACE
I00 SOUTHEAST 2xV STREET
SUITE 2800
MIAMI, FLORIDA 33131-2144
TELEPHONE (303) s39-e40o
FACSIMILE (306) 539-1307
1. A completely clean set of. documents without marginal notations;
via Faesimile
2. A set of documents with marginal notations indicating the changes that were
made since our discussion last night; and
3. A proposed alternate page 2 with the first paragraph beginning on the page
containing a proposed addition which is contrary to what we discussed last night,
but which may be not just appropriate, but acceptable to you in the circumstances,
and an additional page 2 is also enclosed highlighting that paragraph for your
reference.
Please call me at your earliest convenience after you have reviewed these documents so
that I can make whatever changes are appropriate, finalize it, and send it to you by fax and by
courier.
9R� 102 25
i /07/98
of o, 9.9 WED 16:21 FAX .1115-3391301 ZACK SPARBER ZriJ3
Mr. Jose Garcia -Pedrosa
January 7, 1998
Page 2
Looking forward to the imminent completion tfsCmYajt1eemain
SMnstern, Esq.
MCM:rb
Enclosures
1CU"OrBe&UWiat v&Oi<r
26
Zack. Sparber. Kosnitzky. Spratt & Brooks
OPOPCSSIONAL A"OCIATION
�.1-�•�3�- ZACK SPARBER lzonh
0
ul- u7 :1'1 WED 16:2_ F�.0 L3n;
THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of this _ day of
January, 1998, by and between The City of Miami., a Florida municipality (the "City"), and Jose
i Garcia -Pedrosa, an individual (the "Manager"); the Manager and the City being sometimes
hereinafter being referred to individually as the "Party" and collectively as the "Parties."
Preliminary Statements
The Manager has been serving as the City Manager of the City of Miami Beach; and
As the City Manager of the City of Miami Beach, Manager had a substantial compensation
package which provided him substantial compensation, including deferred compensation, as well
as provided him with substantial financial security; and
The City is desirous of employing Manager as its City Manager; and, to that end, is
willing to offer Manager a compensation package which includes current and deferred
compensation, as well as financial security; and
The Manager is willing to accept the financial package offered by the City, notwithstanding
that the total of the current and deferred compensation, as well as the - extent of the financial
security, is less than that which he received from the City of Miami Beach, but only on the terms
and conditions set forth in this Agreement; and
The City desires to confirm in writing the terms on which it will employ the Manager,
and the Manager desires to memorialize such terms and conditions pursuant to the te= and
conditions of this Agreement; and, as a consequence, be cmployed by the City.
NOW, T.EIrMFORE, in consideration of the mutual covenants and premises contained
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
[1 ] Recitals. The foregoing recitals are true and correct as of the date hereof and are
incorporated herein by this reference.
(2] En rtcent Qtradan., Didics and Powers, The City hereby employs the Manager, and
the Manager hereby accepts and agrees to his employment by the City, as the City Manager of
the City.
The Manager shall serve at the will of the City and not for a specified period of time.
As such, there is no specific term of employment under this Agreement, whether "initial" or
"renewal", or otherwise.
The Manager shall have such duties, powers, and authority as are customary for the City
Manager of the City and are appropriate and consistent for such office as are set forth in the City
102 27
ul n-, 8`t wEU 16:22 FAX 30-''39t3(17 ZA'K SPARBER
r4
Charter. The Manager shall perform all such duties, services and responsibilities in accordance
with the reasonable guidelines, policies and procedures as are established by the City after
consultation with the Manager, subject at all times to the supervision of the City.
[3] CoMpettsation and other Bengfi' stf Emn yment.
[a] . The Manager shall be paid an initial annual salary ["Salary"] of $96,000,
payable in intervals in accordance with City policy and as set forth in the Statement of Executive
Employee Benefits appended to this Agreement ["Statement"], the terms of which are incorporated
herein by reference. The payment of this Salary shall be subject to all applicable withholding
provisions. However, the Manager shall 'not be obligated to make a mandatory ten [10%]
contribution towards a City of Miami Pension.
[b] PeEformanee Review; A&Ments to . The City shall make an annual
review of the Manager's performance, and shall make such adjustments as it considers appropriate
in the Manager's annual compensation, inclusive of his salary and other benefits, All adjustments
to the Manager's Salary, as well as all adjustments to the components of his total compensation
package, shall be reflected on an Addendum appended to this Agreement.
[c] Head Cam . Health care coverage and benefits as set forth in the Statement
shall be provided by the City to the Manager, his spouse, and his dependents [collectively,
"Family"), without financial contribution by the Manager or any member of his Family.
[d] Non-OuaI& Dgftff„CQmn_ensadon Pan. The City shall made an annual
contribution of Eight Thousand [$8,000.00] Dollars towards the establishment of a Non -Qualified
Deferred Compensation Plan for Manager ["Deferred Compensation Plan"], such amount being
payable in twelve [12] equal. monthly installments, each in the amount of Six Hundred Sixty Six
and sixty-six hundredths [$666.66], Dollars, payable monthly on the first day of each calendar
month during Manager's employment: The first such payment being made in the month of
January, 1998, and each month thereafter during the employment of Manager. Each such monthly
contribution shall be considered earned in its entirety on the first day of each calendar month of
Manager's employment under this Agreement, including January, 1998.
[e] Contribudazz to "Section A01&lplan". The City shall make an annual
contribution of Thirty Thousand [$30,000.00] Dollars towards the establishment of an account for
Manager [ "Account"] in its "Section 401[a] Plan". The entire amount of this annual contribution
shall be made in the first two [21 weeks of each•catendar year of the Manager's employment
hereunder. The first such payment, applicable to the month of January, 1998, shall be made
within the month of January, 1998. Each annual contribution shall be considered earned in its
28 1...} idi-i- 4 ::
ut tli tm µ'ED 1t3: 2.3 F.-k[ '" ZACK SPaRBER
Qou8
entirety on the first day of the First calendar month of each year of Manager's employment under
this Agreement, including January, 1998.
[f] Universal Lj:& j armce Polig . The City shall make an annual contribution of
Fifteen Thousand [$15,000.00] Dollars towards the payment of premiums, including the initial
premium, and the underwriting of a "Universal" life insurance policy of which the Manager shall
be the Insured ["Policy"]. The entire amount of this annual contributions, both in the year in
which it is underwritten, and thereafter, shall be made in the first two [2) weeks of each calendar
year of Manager's employment under this Agreement. The first such payment, applicable to the
month of January, 1998, shall be made within the first two [2] weeks of the month of January,
1998. Each required annual contribution shaU be considered earned in its entirety on the first day
of the first calendar month of each year of Manager's employment under this Agreement,
including January, 1998. Commencing with the inception of the Policy, Manager shall possess
all incidents of ownership of the Policy unless he provides to the contrary. The ownership and
beneficiary designation of this Policy shall be iu the so inceetion of g ager, exercisable from
time to time consistent with the terms of the Policy.
[g] E== , During the term of Manager's employment, Manager shall be entitled
to an expense allowance in the amount of Eighteen Thousand [$18,000] Dollars per year, such
amount being provided in the amount of Fifteen Hundred (S1500.00] Dollars per month. Each
monthly amount shall be provided to Manager on the first day of each calendar month. Each
monthly amount shall be considered accrued and owing in its entirety on the first day of each
calendar month of Manager's employment under . Agreement, including January, 1998. Such
amount shall be "non -accountable" and Manager shall not be required to submit any documenta-
tion with respect thereto.
[h] Vacation Days. During each twelve [12] months of his employment under this
Agreement, the Manager shall be entitled to two hundred [200] paid vacation hours per year, such
paid vacation hours accruing to Manager at the rate of one -twelfth [1/12th] of such hours monthly
for sixteen and sixty/six hundredths (16.661 hours monthly.] Each such monthly accrual shall be
considered earned in its entirety on the first day of each calendar month of Manager's employment
under this Agreement, including January, 1998. Such hours are redeemable for cash at the end
.p of each calendar year of Manager's employment under this Agreement, or at such earlier time as
Manager's employment shall be terminated. Otherwise, the provisions of the Statement shall be
applicable,
[i] Mck Leave. During each month of Manager's employment under this Agreement,
the Manager shall be entitled to two [2] sick leave days. Each such monthly accrual shall be
considered earned in its entirety on the first day of each calendar month of Manager's employment
under this Agreement, including January, 1998_ Such hours are redeemable for cash at the end
of each calendar year of Manager's employment under this Agreement, or at such earlier time as
Manager's employment shall be terminated. Otherwise, the provisions of the Statement shall be
applicable.
98— 102 29
1 ,ion;_ 9f
tit 11 93 WED 16:21 FAX 31"53M3117 ZACK SPARBER
[aou;1
(J] Pro Am davc. During each month of Manager's employment under this
agreement, the Manager shall be entitled to one and one-half [1-1/2] pro bono days. Each such
monthly accrual of pro bono hours shall be considered earned in its entirety on the first day of
each calendar month of Manager's employment under this Agreement, including January, 1998.
Such pro bono hours are redeemable for cash at the end of each calender year of Manager's
employment under this Agreement, or at such earlier time as Manager's employment shall be
terminated. These pro bono days shall be in addition to any other categories of days or hours
which Manager may accrue or take, or redeem, whether as set forth in this Agreement or in the
provisions of the Statement.
I [k] Pa' -public MU40. As set forth in the Statement.
[I] Use,gf Apartment fBor U UMESS. In the event that the City shall acquire, by
donation, the right to occupy an apartment unit [ "Unit"], the Manager shall have the right to
use such apartn=t as and to the extent that its use is appropr'"'iMe for the conduct of the City's
business. If such right to occupy is acquired, the city shall pay all costs of maintenance and.
special assessments with respect to the Unit, and the Manager shall pay all other costs pertaining
to the continued occupancy of the Unit on an ongoing basis; provided, however, that their
respective financial responsibilities exist only to the extent that their respective costs are not
otherwise paid or provided for.
[m] Automobile. The Manager shall, at his sole option, either: [i] be furnished an
automobile appropriate to the Office of City Manager ["Automobile"], or [ii] be given an
automobile allowance of Ten Thousand [$10,000] Dollars per year ["Allowance. "] .
If Manager elects to receive the use of an Automobile, such Automobile shall be available
to Manager on a 24-Dour basis, and the City shall pay all costs pertaining to its continued use by
the Manager, including maintenance, gasoline, service, replacements [both major and minor]
insurance, etc.; provided, however, that the City may self -insure the automobile and its use on a
completely comprehensive, all risks basis.
If Manager chooses to receive the Allowance, such Allowance shall be in the amount of
Ten Thousand [$10,000] Dollars per year, such amount being paid in the amount of Eight
Hundred Thirty -Three and 33/100 [$833.33] Dollars per month. Each monthly amount shall be
paid in each calendar month on the first day of each calendar month. Each monthly amount shall
be considered earned in its entirety on the first day of each calendar month of Manager's
employment under this Agreement, including January, 1998. Such amount shall be "non -
accountable" and Manager shall not be requited to submit any documentation with respect thereto.
[n] Electronic Communccadons. Manager small be furnished all appropriate electronic
equipment which is reasonably helpful to enable him to be in communication with his office,
employees of and consultants to the City, and persons doing business with the City ["Equip-
ment"]. This Equipment shall include, initially, a portable cellular phone, a paging system, and
4
9sw 102
30
nl oT 98 WED 16:21 FAX 311553911u; Zac;K SPARElER
(A O l o
a home computer with a modem. All costs of acquisition, use, servicing and replacement -of this
Equipment shall be borne by the City. Such equipment shall be updated periodically.
(o ) Disability Income -Insurance. Manager shall be provided with a disability income
insurance policy pursuant to the following specifications;
Insurance Company
I
Waiting (Elimination)
Period
Monthly Coverage
Benefits Payable Through
Owner and Beneficiary
Grade A or higher
One Hundred Twenty [120) days
75 % of the total of the salary and the value of all
other benefits provided to Meager in the first calen-
dar year of his employment, with the value of such
benefits being determined [except with respect to
Manager's salary and benefits for the 1998 calendar
year] by the mutual agreement of the parties, inclu-
sive of the cash value of all forms of days, or hours,
of benefits converted into cash in the prior calendar
Year.
With respect to the 1998 calendar year, and utilizing
assumptions which the parties consider reasonable,
the agreed total value of Manager's 1998 salary and
total benefits package shall, for purposes of this
computation, be presumed to be One Hundred
Fifty Thousand [$150,000) Dollars. The
Cost of the premiums for such policy shall be borne
in the manner most favorable to Manager consistent
with Manager receiving the benefits under the policy
free of federal income tax.
Age 65
Manager, or as he otherwise determines.
[o] QMer Rengfirs. Effective at the inception of this Agreement, and continuing
thereafter until the termination of this Agreement, and continuing thereafter as and to the extent
provided in this Agreement, the Manager shall be entitled to receive such other benefits, and to
participate in such benefit plans, including life, health and disability insurance, disability and
disability income insurance, and other insurance policies, 401(k) benefit plans, "leave" plans, etc.
as are generally provided by the City to its most senior executives and/or as set forward in the
9R•- 102 31
I i io7if9e
ail a .leg WED 16::'t F. X 311'13913ij7 ZA K SPARBER
Zoil
Statement. Such benefits provided to the Manager shall, in each instance, be the most
advantageous offered by the City to its Senior Managers.
(p] /ncorn M&n of the Executive- Emllovment Benqft S ement hv_ Refer_ A.
Interpretation. Except as expressly provided herein to the contrary, the provisions of the
Executive Employee Benefits Statement, which is incorporated herein by reference, and as it shall
be amended from time to time, shall be applicable to the Manager. In the event of any
inconsistency between the provisions of the Statement and the provisions of this Agreement, the
provisions of this Agreement shall prevail.
(4] Continuation. 1'errrinatinn_ (]path a„d pisa „Lk•.
—a► [a] Dearth or D's 'l &,- arenerg In the event that, at any time during the term of this
Agreement, the Manager shall die or suffer any disability (as such term is hereinafter defined),
then, in any such event, his employment by the -City pursuant to this Agreement shall automati-
cally terminate on the date of his death or the day that a determination of Disability is made on or
after One -Hundred Twenty [120] days from the inception of his Disability as determined below,
as the case may be.
@] Dta&- From and after the automatic termination of the employment of the
Manager due to his death, the Manager's Estate shall be entitled. to receive such portion of the
salary to which the Manager otherwise would have been entitled under 5 tien hereof, as well
as all other benefits provided hereunder, whether specifically in this Agreement, or in the
Statement incorporated herein by reference, to the end of the calendar month in which his death
occurred.
-4k [c] Disabft. From and after the inception of his Disability, the Manager shall be
entitled to participate in all benefits provided by the City to the Manager on the date of such
inception and to continue to receive his salary for a period of one -hundred twenty (120) days
following the inception of such Disability, as well as be entitled to receive all other benefits
provided hereunder, whether specifically in this Agreement, or in the Statement incorporated
herein by reference, during such same period of time.
(d] D�,findon of Disability. For purposes of this Agreement, the term "Disability"
of the Manager shall mean the inability of the Manager to perform his regular duties hereunder
for one hundred twenty (120) consecutive calendar days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician, selected by the City
or its insurers and acceptable to the Manager (or the Manager's legal representative] (such
agreement as to acceptability not to be withheld unreasonably). A determination of Disability
shall be in writing, a copy of which shall be provided to the Manager and the Manager's legal
representative. The date of such written correspondence made on or after such one hundred
twentieth (120th1 consecutive calendar day of disability shall be the date of Disability hereunder.
6
:98` 102
32
Z�CR SPARBER
(it ►►; .:1,w WED 18: 2S FAX 3' �:fnt1►►�
Q 01:,
Notwithstanding the foregoing, the definition, and date, of disability defined in an
applicable disability insurance policy hereafter acquired by the City on the Manager shall be
controlling for purposes of this provision, provided that Manager shall not be considered to have
a Disability until one hundred twenty [1101 days have elapsed from the inception of his disability.
In the event that the employment of Manager is terminated as a result of his Disability, then
notwithstanding anything contained herein to the contrary, the Manager's Salary and all other
benefits provided herein, inclusive of benefits provided under the Executive Employee Benefits
Statement, shall be continued for an additional one hundred twenty [1201 days from the date of the
writing described in the foregoing paragraph evidencing his Disability as defined herein.
[a] Death or UWAU&. In the event of the termination of Manager's employment as
a result of his death or disability as defined and provided in Section 3 above, the rights and
obligations of the City and the Manager shall be as determined in such Sw ion 3
[b] Temdnadon ky the Q* _ft Cause. The City shall have the right to terminate the
employment of the Manager pursuant to this Agreement for "Cause". For the purposes of this
provision, a termination of the Manager by the City for Cause shall mean only a termination due
to the Manager's actual malfeasance in office. In the event the City shall teminate the employment
of the Manager hereunder for Cause, then the City shall have no fitrther obligation to provide the
Manager with any compensation hereunder from and after the date set by the City for such
termination, and may, in addition, exercise any other rights it may have at law or in equity.
[c] Termination by the QOLA&W CaM., Termirrn_tioilk.y the Man?g -r tiYrt_ out
Cause: Forced Resignation. The City shall have the right to terminate the employment of the
Manager pursuant to this Agreement other than for "Cause". For the purposes of this provision,
termination of the Manager by the City other than for "Cause" shall mean a termination by the
City other than due to Manager's actual malfeasance in office. The Manager shall have the right
to terminate his employment by the City for any reason.
In the event that the City shall terminate this Agreement other than for "Cause" as defined
herein, or
In the event the Manager shall terminate his employment by the City, by reason of his
Forced Resignation as defined herein,
then in either instance, the Manager shall be entitled to continue to participate in all benefits
(including Salary] provided by the City to the Manager on the date of such termination and to
continue to receive his salary, and all other benefits hereunder, for an additional period of three
hundred sixty-five (365] days from the date of such termination.
7
9Q_ 102 33
i 1/07/98 4:35'
fit . u , . ;1,9 wED 16 : 25 FAX 3V <WI"—, Zac.K SPARBER
m013
In the event the Manager shall terminate his employment by the City for a reason other
then his Forced Resignation as defined herein, then the Manager shall be entitled to receive such
portion of the Salary to which the Manager otherwise would have been entitled under Section
hereof, as well as all other benefits provided hereunder, whether specifically in this Agreement,
or in the Statement incorporated herein by reference, to the end of the month in which his
[unforced] resignation occurred.
For purposes of this Agreement, the term `Forced Resignation' shall mean the Manager's
resignation resulting from the pressure exerted by officials and/or employees of the City to
remove himself from office for reasons other than for actual malfeasance in office.
[a] Entire Aament. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior negotiations,
understandings, agreements, arrangements and understandings, both oral and written, between the
parties hereto with respect to such subject matter.
[b] A mcg_ment. This Agreement may not be amended or modified in any respect,
except by the mutual written agreement of the parties hereto.
[c] Wari ma and Emedies. The waiver by any of the parties hereto of any other
party's prompt and complete performance, or breach or violation, of any provision of this
Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation,
and the waiver by any of the parties hereto to exercise any right or remedy which it may possess
hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by
such party upon the occurrence of any subsequent breach or violation.
[d] jpes ' ' e_ ffgg&_V. Descriptive headings contained herein are for convenience
only and shall not control or affect the meaning or construction of any provision of. this
Agreement-
[e] Ng&es. All notices, consents, requests, instructions, approvals and other
communications provided for herein and all legal process in regard hereto shall be in writing and
shall be deemed to have been duly given, as follows: (i) on the date delivered if by personal
delivery; (1i) on the date telecommunicated if by telegraph; (iii) on the date of transmission with
confirmed answer back if by telex, telefax or other telegraphic method; and (iv) on the date upon
which the return receipt is signed or delivery is refused or the notice is designated by the postal
authorities as not deliverable, as the case may be; as follows;
If to the Manager: Jose Garcia -Pedrosa
5025 Collins Avenue, Apt. 905
Miami Beach, Florida 33140
8
34
98_ 102
ul u; 93 WED ltt:26 FAX "33539L311 ZACK SPARBER I)011
with a copy to:
Mr. Melvin C. Morgenstern
Attorney at Law
Zack, Sparber, Kosnitzky, Spratt & Brooks, P.A.
100 S-E. 2nd Street, Suite 2800
Miami, Florida 33131
(305) 539-8400
(305) 536-6267 [direct] 4IL—.
(305) 539-1307 [fax]
If to the City
City of Miami
City Manager's Office
444 S.W. 2d Avenue (10th Floor)
Miami, Florida 35131
(305) 416-1025
with a copy to: A. Quinn 36nes, III, Esq.
City Attorney
444 S.W. 2d Avenue (9th Floor)
Miami, Florida 33131
or to such other address as any party hereto may from time to time designate in writing delivered
in a Ue manner.
[f] Good Faith. Each party hereto agrees to act in good faith with respect to the other
party or parties in exercising its rights and discharging its obligations under this Agreement. Each
party further agrees to use its best efforts to ensure that the purposes of this Agreement are
realized and to take all steps as are reasonable in order to implement the operational provisions
of this Agreement. Each party agrees to execute, deliver and file any document or instrument
necessary or advisable to realize the purposes of this Agreement-
[g] Attnrnevs' Fees. If any Iegal action is brought for the enforcement of any of the
provisions of this Agreement, the prevailing party shall be entitled to recover upon final judgment
on the merits reasonable attorneys' fees (including attorneys' fees for any appeal) incurred in
bringing such action.
[h] Gover
ning Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida as to all matters, including, but not limited to, matters of
validity, construction and performance. Miami -Dade County in the State of Florida shall be the
sole and exclusive venue for any litigation between the parties that may be brought or arise out of
or in conjunction with or by reason of this Agreement.
9
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f i] Binding.Ejf-cc ;.ALdgMent. This Agreement shall be binding upon, inure to the
benefit of, and be enforceable by and against the City and Employee, and their respective personal
or legal representatives, heirs, successors and permitted assigns. This Agreement is not assignable
by Employee.
IN WITNESS WHEREOF, the parties hereto have placed their hands as of the day and
year first above written.
1CkM geattwkW%Pcdros *4r0u.1
36
City of Miami
a
[print name and title]
Manager
Jose Garcia -Pedrosa
to
1/oii_ 9___s3'
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Nola
i
E MBIT A
STATEMENT OF CITY OF MIAMI
EXECUTIVE EMPLOYIMVT BENEFITS
[ATTACBED]
11
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OL n7.03 WED l8:27 FAX 30.5139t307 ZaCK SP3RBER
EXBIBIT it 1311
' [JEF APPLICABLE]
CITY MANAGER JOB DESCRIPTION
12
98- 1,02
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(Zu1g
rnwvuc� ur c rat•-)u:3-p(J--!ltil Lte ,2 'y( y:4J t.11/ly
XECUTIi�EY�PLOYEL BENEFITS
1_ HEALTH CARE PLANS - Employees have a choice of I medical plans: An
indemnityioetwork plan through CIGNA
Insurance with no dedueti le.* and ove HMO
Plan through CIGNA Insurance. Enrollment is
optional but waiver forras i iust be completed if
declined. In addition. eatp oyees receive vision
benefits with no deductible and dental bonefits
with no calendar year limit.
Z. GROUE' LIFE INStMANCE
*lVith deductible January 1997-
The City pays 100% of
• premium. CoveMe is effe
• .The City pays 100% of the
of the life insurance is ba
at 2 X annual salary r
$1,000-00.
A) ACCIDENTAL DEATH AND - Employees receive 24 hour
DISMLMBERMENT INSURANCE of coverage is the saute as
2 X annual salary.
For specific information, please contact the Office of Group
Benefits at 416-1380:
R. PENSION PLAN
e Family or Single
sve on date of hire.
mium. The amount
on employee salary
dad to the lowest
e. The atuount
Life Insurance,
CITY OF MI AMI - 10% of employee's ealarr will be 'deducted
biweekly. Enrollment is required.
Eligibility: Employees mud be working 40 hours
per week and filling a permanently budget
position.
For additional, information for Fire, please contact the
Pension Office at 579-6371. All other executives, please
contact the Pension Office at 579.6372.
PAID (PUBLIC) HOLIDAYS - Employees receive It days -)or year. (See Article
44 of the American Feder tiou of State. CountY
and Municipal Employees labac agreemeitt for
listing of holidays.)
102 39
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Z.kcK SPARBER 2019
Fax:305-673-?782 Ce. 1 '97 Tells
Executive Employees Benefits (eont'd)
Eligibility: Employees muit be in "pay" status
the day before and the d3y after a holiday in
order to be paid for the holid y.
VACATION - Employees accrue vac'ation hours in accordance
with the amount of hour designated to the
occupation. In order to be credited vacation time
for the first month of emplo3 meat, new employees
must commence work prio to the 16th of the
month.
Vacation time accumulates during the calendar
year previous to the year ir which hours accrued
may be used. This accrual s credited in Januaty
of each calendar year. Bail loyees are allowed to
"carry over" 200 hours from year-to-year provided
-they have utilized the squired amount of
vacation hours during the 3 ear. Employees may
request payment up to 2 0 hours of credited
vacation each year. (See YM-2-87 for furti ur
details.)
Currently no payment of va ation.
Eligibility: Employees a* eligible for use of
credited vacation time d ing the payroll year
following their appoin ant provided the
employee has complete six (6)months
continuous service with ie City. Acerual of
vacation time is subject to penalty due to loave
without pay status.
PERSONAL DAYS Employees accrue 16 ho - of. earned personal
(Earned Personal Leave) leave time per year which must be used during
the calendar year, or c forfeited. Earned
personal leave time is credi ed in January of oath
year.
Eligibility: Employ ecs ale eligible for uric of
earned personal leave ti a six (6) months after
their appointment witli the City. Earned
personal leave time must Ue taken in incroments
of not less than 1 hour.
8. SICK TIME Upon completion of nine y (90) uninterrupted
working days, employees accrue 32 hours sick
leave. Thereafter, sick leave is accrued at the
40 rate of 8 hours per month.
y s — 14 2f ,�a:_ 1
WED 16:23 F AI 305539 L307 ZACK SPARBER
CI TY MANAGERS C =E Fax : 305-673-7782 Dt.. 31 ' 97 9 : 44
P.13/19
Executive Employees Benefits (cont'd)
Eligibility: Employees ra
t be in "pay" status ai
least 15 working days in
the month to accrue
'
their sick leave.
S. DEATIi IN THE FAMILY
- Employees are allowed up
to 40 hours per death
for specified relations.
ee Article 42 of the
American Federation of
Stara, County and
Municipal Employees 1
ibor agreement for
details.)
i,
10. FAMILY LEAVE AND LEAVE
- Employees arc allowed lei
ve of absence without
WITHOUT PAY
pay for up to 90 days d1ur,
ng a 12 month period
for family leave reasons
and any "other good
reason" and 6 months
eava of absence for
educational purposes. (_
as Article 40 of the
A.F.S.C.M.E. labor agreemi int for spacific datafls).
Eligibility: Employees
ust be employed 90
calendar days. Employee
must be working 40
hours per week' and
' ig a peruanantly
budgeted position.
ALL BENEFITS DESCRIBED HEUR; MAY B
CHANGED, MODIFIED
OR DELETED AT THE
DiSCRFTION OF THE CITY MANAGER.
-
12197
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WED 16: 2•3 FAX 305539110 7 ZACK SPiRBER
2021
THUS EMPLOYMENT AGREEMENT (the "Agreement") is made as of this _ day of
January, 1998, by and between The City of Miami., a Florida municipality (the "City"), and .rose
Garcia -Pedrosa, an individual (the "Manager"); the Manager and the City being sometimes
hereinafter being referred to individually as the "Party" and collectively as the "Parties."
Preliminary Statements
The Manager has been serving as the City Manager of the City of Miami Beach; and
As the City Manager of the City of Miami Beach, Manager had a substantial compensation
package which provided him substantial compensation, including deferred compensation, as well
' as provided him with substantial financial security; and
The City is desirous of employing Manager as its City Manager; and, to that end, is
willing to offer Manager a compensation package which includes current and deferred
compensation, as well as financial security; and
The Manager is willing to accept the financial package offered by the City, notwithstanding
that the total of the current and deferred compensation, as well as the extent of the financial
security, is less than that which he received from the City of Miami Beach, but only on the terms
and conditions set forth in this Agreement; and
The City desires to confirm in writing the terms on which it will employ the Manager,
and the Manager desires to memorialize such terms and conditions pursuant to the terms and
conditions of this Agreement; and, as a consequence, be employed by the City.
NOW, THEREFORE, in consideration of the mutual covenants and premises contained
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows: V.
[11 Recit,l . The foregoing recitals are true and correct as of the date hereof and are
incorporated herein by this reference.
(21 &ylgyment; Durations Drr and Powers. The City hereby employs the Manager, and
the Manager hereby accepts and agrees to his employment by the City, as the City Manager of
the .City.
The Manager shall serve at the will of the City and not for a specified period of time.
As such, there is no specific term of employment under this Agreement, whether "initial" or
"renewal", or otherwise.
The Manager shall have such duties, powers, and authority as are customary for the City
Manager of the City and arc appropriate and consistent for such office as are set forth in the City
9Q_ 102
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[a0_'2
Charter. The Manager shall perform all such duties, services and responsibilities in accotdance
with the reasonable guidelines, policies and procedures as are established by the City after
consultation with the Manager, subject at all times to the supervision of the City.
[a] ,. The Manager shall be paid an initial annual salary ["Salary"] of $96,OW,
payable in intervals in accordance with City policy and as set forth in the Statement of Executive
Employee Benefits appended to this Agreement ["Statement"], the terms of which are incorporated
herein by reference. The payment of this Salary shall be subject to all applicable withholding
provisions. However, the Manager shall not be obligated to make a mandatory ten (10%)
contribution towards a City of Miami Pension.
[b] Perfof=ce Review: Adiusdn0ts to &ka. The City small make an annual
review of the Manager's performance, and shall make such adjustments as it considers appropriate
in the Manager's annual compensation, inclusive of his salary and other benefits. All adjustments
to the Manager's Salary, as well as all adjustments to the components of his total compensation
package, shall be reflected on an Addendum appended to this Agreement.
[c] Htdth Cm PAws. Health care coverage and benefits as set -forth in the Statement
shall be provided by the City to the Manager, his spouse, and his dependents [collectively,
"Family"], without financial contribution by the Manager or any member of his Family,
[d] Non__Qual"ed Deferred Comnencation, The City shall made an annual
contribution of Eight Thousand [$8,000.00] Dollars towards the establishment of a Non -Qualified
Deferred Compensation Plan for Manager ["Deferred Compensation Plan"], such amount being
payable in twelve [12] equal monthly installments, each in the amount of Six Hundred Sixty Six
and sixty-six hundredths [$666.66] Dollars, payable monthly on the first day of each calendar
month during Manager's employment: The first such payment being made in the month of
January, 1998, and each month thereafter during the employment of Manager. Each such monthly
contribution shall be considered earned in its entirety on the first day of each calendar month of
Manager's employment under this Agreement, including January, 1998. ,
(e] -Contribution to !`Se 'on }01,[a7 Plan' . The City shall make an annual
contribution of Thirty Thousand [$30,000.00] Dollars towards the establishment of an account for
Manager [ "Account"] in its "Section 401[a] Plan". The entire amount of this annual contribution
shall be made in the first two [2] weeks of each calendar year of the Manager's employment
hereunder. The first such payment, applicable to the month of January, 1998, shall be trade
within the month of January, 1998. Each annual contribution shall be considered earned in its
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entirety on the first day of the first calendar month of each year of Manager's employment under
this Agreement, including January, 1998.
[f] Universal L& L=nznce Policy. The City shall make an annual contribution of
Fifteen Thousand [515,000.00] Dollars towards the payment of premiums, including the initial
premium, and the underwriting of a "Universal" life insurance policy of which the Manager shall
be the Insured ["Policy"]. The entire amount of this annual contributions, both in the year in
which it is underwritten, and thereafter, shall be made in the first two [2] weeks of each calendar
year of Manager's employment under this Agreement. The first such payment, applicable to the
month of January, 1998, shall be trade within the first two [2] weeks of the month of January,
1998. Each required annual contribution shall be considered earned in its entirety on the first day
of the first calendar month of each year of Manager's employment under this Agreement,
including January, 1998_ Commencing with the inception of the Policy, Manager shall possess
all incidents of ownership of the Policy unless he provides to the contrary. The ownership and
beneficiary designation of this Policy shall be in the sole discretion of Manager, exercisable from
time to time consistent with the terms of the Policy.
[g]F.Wens . During the terra of Manager's employment, Manager shall be entitled
to an expense allowance in the amount of Eighteen Thousand [$18,000] Dollars per year, such
amount being provided in the amount of Fifteen Hundred [$1500.00] Dollars per month. Each
monthly amount shall be provided to Manager on the first day of each calendar month. Each
monthly amount shall be considered accrued and owing in its entirety on the first day of each
calendar month of Manager's employment under this Agreement, including January, 1998. Such
amount shall be "non -accountable" and Manager shall not be required to submit any documenta-
tion with respect thereto.
[h] Vacadaa &U. During each twelve [12] months of his employment under this
Agreement, the Manager shall be entitled to two hundred [200] paid vacation hours per year, such
paid vacation hours accruing to Manager at the rate of one -twelfth [1/12th] of such hours monthly
[or sixteen and sixty/six hundredths (16.66) hours monthly.] Each such monthly accrual shall be
considered earned in its en&ety on the first day of each calendar month of Manager's employment
under this Agreement, including January, 1998. Such hours are redeemable for cash at the end
of each calendar year of Manager's employment under this Agreement, or at. such earlier time as
Manager's employment shall be terminated. Otherwise, the provisions of the Statement shall be
applicable.
[il Skk Leaves_ During each month of Manager's employment under this Agreement,
the Manager shall be entitled to two [21 sick leave days. Each such monthly accrual shall be
considered earned in its entirety on the first day of each calendar month of Manager's employment
under this Agreement, including January, 1998_ Such hours are redeemable for cash at the end
of each calendar year of Manager's employment under this Agreement, or at such earlier time as
Manager's employment shall be terminated. Otherwise, the provisions of the Statement shall be
applicable.
3 9Q-- 102
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01 Pro Bono da r. During each month of Manager's employment under this
agreement, the Manager shall be entitled to one and one-half (1-1/21 pro bono days. Each such
monthly accrual of pro bono hours shall be considered earned in its entirety on the first day of
each calendar month of Manager's employment under this Agreement, including January, 1998.
Such pro bono hours are redeemable for cash at the end of each calender year of Manager's
employment under this Agreement, or at such earlier time as Manager's employment shall be
terminated. These pro bono days shall be in addition to any other categories of days or hours
which Manager may accrue or take, or redeem, whether as set forth in this Agreement or in the
provisions of the Statement.
(k] _Pidd Public 112U&YI. As set forth in the Statement.
[11 Use n, f A oor Qy Busi„ nest. In the event that the City shall acquire, by
donation, the right to occupy an apartment unit [ "Unit% the Manager shall have the right to
use such apartment as and to the extent that its -use is appropriate for the conduct of the City's
business. If such right to occupy is acquired, the city shall pay all costs of maintenance and
special assessments with respect to the Unit, and.the Manager shall pay all other costs pertaining
to the continued occupancy of the Unit on an ongoing basis; provided, however, that their
respective financial responsibilities exist only to the extent that their respective costs are not
otherwise paid or provided for.
(m] Automobile. The Manager shall, at has sole option, either: [i) be furnished an
automobile appropriate to the Office of City Manager ["Automobile"], or [ii) be given an
automobile allowance of Ten Thousand [$10,0001 Dollars per year ["Allowance.").
If Manager elects to receive the use of an Automobile, such Automobile shall be available
to Manager on a 24-hour basis, and the City shall pay all costs pertaining to its continued use by
the Manager, including maintenance, gasoline, service, replacements f both major and minor]
insurance, etc.; provided, however, that the City may self -insure the automobile and its use on a
completely comprehensive, all risks basis.
If Manager chooses to receive the Allowance, such Allowance shalltbe in the amount of
Ten Thousand [$10,000] Dollars per year, such amount being paid in the amount of Eight
Hundred Thirty -Three and 33/100 [$833.33] Dollars per month. Each monthly amount shall be
paid in each calendar month on the first day of each calendar month. Each monthly amount shall
be considered earned in its entirety on the first day of each calendar month of Manager's
employment under this Agreement, including January, 1998. Such. amount shall be "non -
accountable" and Manager shall not be required to submit any documentation with respect thereto.
[n] EW&—onir Communic Qns. Manager shall be furnished all appropriate electronic
equipment which is reasonably helpful to enable him to be in communication with his office,
employees of and consultants to the City, and persons doing business with the City ("Equip-
ment"]. This Equipment shall include, initially, a portable cellular phone, a paging system, and
4
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ut 07- 93 WED 16: 3u FAX 1"',5391107, ZACK SPaRBER
I�ho
a home computer with a modem. All costs of acquisition, use, servicing and replacement of this
Equipment shall be borne by the City. Such equipment shall be updated periodically.
(o] M etbility Income Insures. Manager shall be provided with a disability income
insurance policy pursuant to the following specifications;
Insurance Company Grade A or higher
Waiting (Elimination) One hundred Twenty [1201 days
Period
Monthly Coverage 75 % of the total of the salary and the value of all
other benefits provided to Mnager in the first calen-
dar year of his employment, with the value of such
benefits being determined (except with respect to
Manager's salary and benefits for the 1998 calendar
year) by the mutual agreement of the parties, inclu.
sive of the cash value of all forms of days, or hours,
of benefits converted into cash in the prior calendar
year.
With respect to the 1998 calendar year, and utilizing
assumptions which the parties consider reasonable,
the agreed total value of Manager's 1998 salary and
total benefits package shall, for purposes of this
computation, be presumed to be One Hundred
Fifty Thousand [$150,000) Dollars. The
Cost of the premiums for such policy shall be borne
in the manner most favorable to Manager consistent
with Manager receiving the benefits under the policy
free of federal income tax.
Benefits Payable Through Age 65
Owner and Beneficiary Manager, or as he otherwise determines.
(o] gMer &nefus. Effective at the inception of this Agreement, and continuing
thereafter until the termination of this Agreement, and continuing thereafter as and to the extent
Provided in this Agreement, the Manager shall be entitled to receive such other benefits, and to
participate in such benefit plans, including life, health and disability insurance, disability and
disability income insurance, and other insurance policies, 401(k) benefit pi<1ns, "leave" plans, etc.
as are generally provided by the City to its most senior executives and/or as set forward in the
M
98- 102
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Statement. Such benefits provided to the Manager shall, in each instance, be the most
advantageous offered by the City to its Senior Managers.
[p] InCo&wra&w of the Execu&e E PLQyment lien fts Statement Ay Refe rg;
Interpretation. Except as expressly provided herein to the contrary, the provisions of the
Executive Employee Benefits Statement, which is incorporated herein by reference, and as it shall
be amended from tithe to time, shall be applicable to the Manager. In the event of any
inconsistency between the provisions of the Statement and the provisions of this Agreement, the
provisions of this Agreement shall prevail.
[4] Continuation, Termination, Death anti J115abili
(a]. Death or Dira& tv: General. In the event that, at any time during the term of this
Agreement, the Manager shall die or suffer any disability (as such term is hereinafter defined),
then, in any such event, his employment by the City pursuant to this Agreement shall automati-
cally terminate on the date of his death or the day that a determinations of Disability is made on or
after One -Hundred Twenty (1201 days from the inception of his Disability as determined below,
as the case may be.
[b] Death. From and after the automatic termination of the employment of the
Manager due to his death, the Manager's Estate shall be entitled to receive such portion of the
salary to which the Manager otherwise would have been entitled under Somon 3 hereof, as well
as all other benefits provided hereunder, whether specifically in this Agreement, or in the
Statement incorporated herein by reference, to the end of the calendar month in which his death
occurred.
[c] Disability. From and after the inception of his Disability, the Manager shall be
entitled to participate in all benefits provided by the City to the Manager on the date of.such
inception and to -continue to receive his salary for a period of one -hundred twenty (120) days
following the inception of such Disability, as well as be entitled to receive all other benefits
provided hereunder, whether specifically in this Agreement, or in the Statement incorporated
herein by reference, during such same period of time. ,
[d] Def,_t'r don Q f clay t . For purposes of this Agreement, the term. "Disability"
of the Manager shall mean the inability of the Manager to perform his regular duties hereunder
for one hundred twenty (120) consecutive calendar days as a result of incapacity due to mental or
physical iciness which is determined to be total and permanent by a physician selected by the City
or - its insurers and acceptable to the Manager for the Manager's legal representative] (such
agreement as to acceptability not to be withheld unreasonably). A determination of Disability
shall be in writing, a copy of which shall be provided to the Manager and the Manager's legal
representative. The date of such written correspondence made on or after such one hundred
twentieth [120th] consecutive calendar day of disability shall be the date of Disability hereunder.
N.
98— 102 47
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Notwithstanding the foregoing, the definition, and date, of disability defined -in an
applicable disahility insurance policy hereafter acquired by the City on the Manager shall be
controlling for purposes of this provision; provided that Manager shall not be considered to have
a Disability until one hundred twenty [120] days have elapsed from the inception of his disability.
In the event that the employment of Manager is terminated as a result of his Disability, then
notwithstanding anything contained herein to the contrary, the Manager's Salary and all other
benefits provided herein, inclusive of benefits provided under the Executive Employee Benefits
Statement, shall be continued for an additional one hundred twenty [120] days fxom the date of the
writing described in the foregoing paragraph evidencing his Disability as defined herein.
[5] Z er»3iwdyn • "'With Causg", 'Inhoul Cause I
i
[a] Death or Disabilfty. In the event of the termination of Manager's employment as
a result of his death or disability as defined and provided in Sectign above, the rights and
obligations of the City and the Manager shall be as determined in such Section .
[b] Terminatioky► the Q4 -far Cause. The City shal t have the right to terminate the
employment of the Manager pursuant to this Agreement for 'Cause". For the purposes of this
provision, a termination of the Manager by the City for Cause shall mean only a termination due
to the Manager's actual malfeasance in office. In the event the City shall terminate the employment
of the Manager hereunder for Cause, then the City shall have no further obligation to provide the
Manager with any compensation hereunder from and after the date set by the City for such
termination, and may, in addition, exercise any other rights it may have at law or in equity.
[c] Tgrmfnatfon by the 00 Absent Cause; TPrmutad an by the ffanag er Wrthout
Cause; Forced Red _ . The City shall have the right to terminate the employment of the
Manager pursuant to this Agreement other than for "Cause". For the purposes of this provision,
termination of the Manager by the City other than for "Cause" shall mean a termination by the
City other than due to Manager's actual malfeasance in office. The Manager shall have the right
to terminate his employment by the City for any reason. a
In the event that the City shall terminate this Agreement other than for "Cause" as defined
herein., or
In the event the Manager shall terminate his employment by the City, by reason of his
Forced Resignation as defined herein,
then in either instance, the Manager shall be entitled to continue to participate in all benefits
[including Salary] provided by the City to the Manager on the date of such termination and to
continue to receive his salary, and all other benefits hereunder, for an additional period of three
hundred sixty-five [365] days from the date of such termination.
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In the event the Manager shall terminate his employment by the City for a reason -other.
then his Forced Resignation as defined herein, then the Manager shall be entitled to receive such
portion of the Salary to which the Manager otherwise would have been entitled underect'
hereof, as well as all other benefits provided hereunder, whether specifically in this Agreement,
or in the Statement incorporated herein by reference, to the end of the month in which his
[unforced] resignation occurred_
For purposes of this Agreement, the term `Forced Resignation' shall mean the Manager's
resignation resulting from the pressure exerted by officials and/or employees of the City to
remove himself from office for reasons other than for actual malfeasance in office.
(6) Miscellaneous.
[a] Eh&g Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior negotiations,
understandings, agreements, arrangements and understandings, both oral and written, between the
parties hereto with respect to such subject matter.
[b] . Amendment. This Agreement may not be amended or modified in any respect,
except by the mutual written agreement of the parties hereto.
[c] Waiy= and ftmedies. The waiver by any of the parties hereto of any other
party's prompt and complete performance, or breach or violation, of any provision of this
Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation,
and the waiver by any of the parties hereto to exercise any right or remedy which it may possess
hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by
such party upon the occurrence of any subsequent breach or violation.
[d] Descriptive Headings. Descriptive headings contained herein are for convenience
only and shall not control or affect the meaning or construction of any provision of this
Agreement_
r
[e] Notices. All notices, consents, requests, instructions, approvals and other
communications provided for herein and all legal process in regard hereto shall be in writing and
shall be deemed to have been duty given, as follows: (i) on the date delivered if by personal
delivery; (ii) on the date telecomrnunicated if by telegraph; (iii) on the date of transmission with
confirmed answer back if by telex, telefax or other telegraphic method; and (iv) on the date upon
which the return receipt is signed or delivery is refused or the notice is designated by the postal
authorities as not deliverable, as the case may be; as follows;
If to the Manager Jose Garcia -Pedrosa
5025 Collins Avenue, Apt. 905
Miami Beach, Florida 33140
8
0S_ 102 49
11/07/98 4:35.
(it 1)7 93 WED 16:32 FAX 3i'"-3913117 ZACK SPaRBER
ZuZ,a
with a copy to:
Mr. Melvin C. Morgenstern
Attorney at Law
Zack, Sparber, Kosnitzky, Spratt & Brooks, P.A.
100 S.E. 2nd Street, Suite 2800
Miami, Florida 33131
(305) 539-8400
(305) 536-6267 [direct]
(305) 539-1307 [fax]
If to the City City of Miami
City Manager's Office
444 S.W. 2d Avenue (loth Floor)
Miami, Florida 33131
(305) 416-1025
with a copy to: A. Quinn Tones, III, Esq.
City Attorney
444 S.W. 2d Avenue (9th Floor)
Miami, Florida 33131
or to such other address as any party hereto may from tithe to time designate in writing delivered
in a like manner.
[f] Cmd Faith. Each party hereto agrees to act in good faith with respect to the other
party or parties in exercising its rights and discharging its obligations under this Agreement. Each
party ftirther agrees to use its best efforts to ensure that the purposes of this Agreement are
realized and to take all steps as are reasonable in order to implement the operational provisions
of this Agreement. Each party agrees to execute, deliver and file any document or ingmiment
necessary or advisable to realize the purposes of this Agreement.
[g] Attorneys' Fees. If any legal action is brought for the enforcement of any of the
provisions of this Agreement, the prevailing party shall be entitled to recover upon final judgment
on the merits reasonable attorneys' fees (including attorneys' fees for any appeal) incurred in
bringing such action.
[h] Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida as to all matters, including, but not limited to, matters of
validity, construction and performance. MiaTni-Dade County in the State of Florida shall be the
sole and exclusive venue for any litigation between the parties that may be brought or arise out of
or in conjunction with or by reason of this Agreement.
E
9R- 102
50
1/U7/98 4.31
11t.-07-93 WED 16:33 FAX 7..;339007 ZACK SPARBER 2t)31)
[ij finding Fffect;_A__s_ MMen-. This Agreement shall be binding upon, inure to the
benefit of, and be enforceable by and against the City and Employee, and their respective personal
or legal representatives, heirs, successors and permitted assigns. This Agreement is not assignable
by Employee.
IN V M14ESS WHEREOF, the parties hereto have placed their hands as of the day and
year first above written.
IClmoetestl A=%pWwzL*drou.l
City of Miami
By:
[print name and title]
Manager
Jose Garcia -Pedrosa
'0
98— 102 51
f*LOL§g 4:35;
of o7.-9,9 WED 16:33 FAX 31' •i3913o7 ZACK SPaRBER
Z 031
EXMIT A
STATEMENT OF CITY OF MIAMI
EXECUTWE EMPLOYMENT BENEFITS
[ATTACHED]
V.
98- 102
11
52
i�07/98 4:35
Ol'o1i 93 WED 18:33 FAX ' 1539130T ZACK SPARBER
Q 03:
EXMBIT " B"
[IF APPLICABLE]
CITY MANAGER JOB DESCRIPTION
12
gg- 102
53
01• 07 9.3 WED 16:33 FAX 31' -39L3117 ZACK SPARBER Z033
Charter. The Manager shall perform all such duties, services and responsibilities in accordance
with the reasonable guidelines, policies and procedures as are established by the City after
consultation with 'the Manager, subject at all times to the supervision of the City.
Manager will devote his skills, efforts and tithe to the performance of his duties
hereunder and to the furtherance of the interests of the business of the City. The Manager
will performs his duties hereunder to the best of his ability and in a diligent and proper
manner.
[a] &&a. The Manager shall be paid an initial annual salary ["Salary"] of $96,000,
payable in intervals in accordance with City policy and as set forth in the Statement of Executive
Employee Benefits appended to this Agreement ["Statement,], the terms of which are incorporated
herein by reference. The payment of this Salary shall be subject to all applicable withholding
provisions. However, the Manager shall not be obligated to make a mandatory ten [10%]
contribution towards a City of Miami Pension.
[b] Per rmartee Review;A*=ents to _c.,huT The City shall make an annual
review of the Manager's performance, and shall make such adjustments as it considers appropriate
in the Manager's annual compensation, inclusive of his salary and other benefits. All adjustments
to the Manager's Salary, as well as all adjustments to the components of his total compensation
package, shall be reflected on an Addendum appended to this Agreement.
[c] Health Cgre S. Health care coverage and benefits as set forth in the Statement
shall be provided by the City to the Manager, his spouse, and his dependents [collectively,
"Family"], without financial contribution by the Manager or any member of his Family.
[d] Non-awA ed Deferred Comaen adan , The City shall made an annual
contribution of Eight Thousand [$8,000.00] Dollars towards the establishment of a Non -Qualified
Deferred Compensation Plan for Manager ["Deferred Compensation PIan"], such amount being
payable in twelve [12] equal monthly installments, each in the amount of Six Hundred Sixty Six
and sixty-six hundredths [$666.66] Dollars, payable monthly on the first day of each calendar
month during Manager's employment: The first such payment being made in the month of
January, 1998, and each month thereafter during the employment of Manager. Each such monthly
contribution shall be considered earned in its entirety on the first day of each calendar month of
Manager's employment under this Agreement, including January, 1998.
[e] Contribution to uSecdon 401lal Plan f. The City shall make an annual
contribution of Thirty Thousand [$30,000.00] Dollars towards the establishment of an account for
Manager [ "Account"] in its "Section 401 [a] Plan". The entire amount of this annual contribution
shall be made in the first two [2] weeks of each calendar year of the Manager's employment
hereunder. The first such payment, applicable to the month of January, 1998, shall be made
within the month of January, 1998. Each annual contribution shall be considered earned in its
9R- 102
54
z
o t o i 93 WED 16 : '14 FAX ' '55391-107 ZACK SPARBER Z 034
Charter. The Manager shall perform all such duties, services and responsibilities in accordance
with the reasonable guidelines, policies and procedures as are established by the City after
consultation with. the Manager, subject at all times to the supervision of the City.
Manager will devote his skills, efforts and time to the performance of his duties
hereunder and to the furtherance of the interests of the business of the City. The !Manager
will perform his duties hereunder to the best of his ability and in a diligent and proper
manner.
[a] Aga. The Manager shall be paid an initial annual salary ("Salary"] of $96,000,
payable in intervals in accordance with City policy and as set forth in the Statement of Executive
Employee Benefits appended to this Agreement ["Statement"], the terms of which are incorporated
herein by reference. The payment of this Salary shall be subject to all applicable withholding
provisions. However, the Manager shall not be obligated to make a mandatory ten [10%]
contribution towards a City of Miami Pension.
[b] Performance Review; Adi Menu to Salaty. The City shall make an annual
review of the Manager's performance, and shall make such adjustments as it considers appropriate
in the Manager's annual compensation, inclusive of his salary and other benefits. All adjustments
to the Manager's Salary, as well as all adjustments to the components of his total compensation
package, shall be reflected on an Addendum appended to this Agreement.
[c] He, U Care Plans. Health care coverage and benefits as set forth in the Statement
shall be provided by the City to the Manager, his spouse, and his dependents [collectively,
"Family"], without financial contribution by the Manager or any umber of his Family.
[d] Non-Qual' ed DAferred C=vmmdan Plan, The City shall made an annual -
contribution of Eight Thousand [$8,000.001 Dollars towards the establishment of a Non -Qualified
Deferred Compensation Plan for Manager ["Deferred Compensation Plan"], such amount being
payable in twelve [12] equal monthly installments, each in the amount of Six Hundred Sixty Six
and sixty-six hundredths [$666.66) Dollars, payable monthly on the first'day of each calendar
month during Manager's employment: The first such payment being made in the month of
January, 1998, and each month thereafter during the employment of Manager, Each such monthly
contribution shall be considered earned in its entirety on the first day of each calendar month of
Manager's employment under this Agreement, including January, 1998.
[e] Contribution to "Section 401&1 Plan". The City shall make an annual
contribution of Thirty Thousand [$30,000.00] Dollars towards the establishment of an account for
Manager [ "Account"] in its "Section 401(a] Plan". The entire amount of this annual contribution
shall be made in the first two (21 weeks of each calendar year of the Manager's employment
hereunder. The first such payment, applicable to the month of January, 1998, shall be made
within the month of January, 1998. Each annual contribution shall be considered earned in its
98_ 102 55
.n"o 1`�S5c
01'07�98 WED 18:20 FAX 3453?^'30-1 ZACK SPARBER
Z001
ZACK. SPARSER, KOSNITZKY, SPRATT & BROOKS, P.A.
One International Place, Suite 2800
Miami, Florida 33131
Telephone. (305) 539-8400
Facsimile: (305) 539-1307
FACS MUM TRANSMISSION
DATE: January 7, 1998 4:06 pm
NANw: Jose Garcia -Pedrosa
City Manager
FAX: 400-5042
PHONE: 416-IM
PAGES: (34) INCLUDING COVER SHEET
FROM: Mel Morgenstern
Subject:
REP: 8033
MESSAGE:
PERSONAL AND CONFIDENTIAL
CONkTiON:
Receipt of this fax was eonfuzmd by on
IF YOU HAVE ANY DIFFICULTY IN THE RECEIPT OF
THIS TRANSNIISSION, PLEASE CALL 539-84M
ASK FOR ROBIN AT EXTENSION 239
This facsimile contains privileged and confidential information intended only for the use of the individual or entity
named above. If the reader of this facsimile is not the intended recipient or the employee or agent responsible for
delivering it to the intended recipient, you are hereby notified that any dissemination or copym of this facsimile
is strictly prohibited. If you have received this facsimile in error. please imrnediatel notity us�y telephone and
return the original facsimle to us at the above address via the U.S. Postal Service. 46ank you.
9R-- J02
56 �io��9a 4:35p
CITY OF MIAMI. F! ORD.,
INTEROFFICE MEMORANDUM
Phil E. Luney _ January 23, 1997 = _:
Assistant Director
Finance Department = =- Professional Services
Agreement witFr- PMG
Peat Marwick
Rafael O. Diaz
Deputy City At tSrney
Attached is the original Professional Services Agreement between the City of Miami and
KPMG Peat Marwick LLP. Please have it executed by KPMG Peat Marwick LLP and return it
to us for execution by the City Attorney.
ROD:bf W048
attachment
s)s - 102 57
PROFESSIONAL SERVICES AGREEMENT
This Agreement entered into as of the _ day of January, 1997, by and between the City
of Miami, a municipal corporation of the State of Florida, (hereinafter referred to as "the CITY")
and KPMG Peat Marwick LLP, Certified Public Accountants (hereinafter referred to as "KPMG or
Auditor").
RECITAL:
WHEREAS, the City Commission, by Resolution No. 96-805, authorized the City Manager
to select, negotiate and execute an agreement with a certified public accounting firm to provide
independent audits and other services as required by the City Charter and Florida statutes, and
WHEREAS, KPMG has been selected to be the lead independent auditor,
NOW, THEREFORE, in consideration of the promises .and the mutual covenants and
obligations herein contained, and subject to the terms and conditions hereinafter stated, the parties
hereto understand and agree as follows:
I. TERM: The term of this Agreement shall be for three (3) years encompassing the CITY's
fiscal years ending September 30, 1996, September 30, 1997 and September 30, 1998. The CITY.
by resolution of the City Commission and at it's sole discretion, may renew this. Agreement for two
(2) additional terms of one year by written notice to KPMG of its election to extend at least 90
days prior to the expiration of the then current term. The terms and conditions of such renewal
shall be subject to approval by the City Commission.
98- 102 44�
IL SCOPE OF SERVICES: The services to be performed are outlined in Exhibit I to this
Agreement in KPMG's engagement letter to the CITY, which shall be incorporated herein by
reference, and which will be updated on a yearly basis by mutual agreement, and in section II A-N,
including the issuance of an "interim- management letter.
A. Other Engagement Matters
The following are entities within the CITY reporting entity, which have their own
arrangements for independent audits.
- Miami Sports & Exhibition Authority (Special Revenue Fund);
- M.S.E.A. Special Obligation -Refunding Bonds (Debt Service Fund);
- Miami Sports & Exhibition Authority (M.S.E.A.) (Capital Projects Fund),
- Downtown Development Authority (Special Revenue Fund);
- Off Street Parking (Enterprise Fund);
- Gunman Center and the Olympia Building (Enterprise Fund);
- GESE Trust (Pension Trust Fund);
- FIPO Trust (Pension Trust Fund).
The audits of the financial statements of the above listed entities are not included
in the scope of this engagement. As these entities are included in the general purpose
financial statements, KPMG will rely on the audits performed for these entities by their
independent auditors and make reference to such reliance in the KPMG report. It is the
responsibility of CITY management and these component units to ensure timely issuance of
the related audit reports in order to achieve the timetable discussed elsewhere herein.
B. Review and prepare separate bond compliance reports for the Special Obligation,
Revenue, and Non Ad Valorem Bonds issued by the CITY.
F
2 ?4
60 9R- 102
C. Provide consents for the use of opinions on the General Purpose Financial Statements
for inclusions in Preliminary and Official Statements in connection with all bond, notes,
and loan issues.
D. Perform the annual audit in accordance with the Florida Statutes for the S.E.
Overtown/Parkwest Redevelopment Trust and other such trust accounts.
E. Provide and issue agreed -upon letter reports in connection with forthcoming bond and
loan issues.
F.. Provide actuarial services to the CITY for Self -Insurance and Insurance Trust Fund.
G. Evaluate the CITY's self-insurance program and make recommendations of needed
i
IBNR reserves. The self-insurance coverageis to be reviewed shall include: all general
liability, public officials liability, police professional liability, automobile liability and
workers' compensation. KPMG will prepare a report relying on claim tabulations,
exposure and other information provided by the CITY's Risk Management Office.
H. Perform and report on certain agreed -upon procedures and/or rebate calculations on
selected bond, notes and loan issues.
1. KPMG and its sub -contractor firms shall assist in the preparation of required reports if
and when submitted by the CITY to attain a Certificate of Achievement for Excellence
in Financial Reporting.
( J.� KPMG and its sub -contractor firms agree to schedule their audit work to perform a
substantial portion prior to year-end for fiscal years after 1996. KPMG and its sub-
contractor firms will use their reasonable best efforts, subject to the requirements of
applicable professional standards, to complete the field examination of the anntial _audit
3
9- 102
61
by December 31, and to date its report no later than January 31 fior each year of the life
of this Agreement after fiscal 1996 .
K. it is understood the work papers for the audit engagements are the property of KPMG
and its -sub -contractor firms and constitute confidential information However, pursuant
to Governmeni Auditing Siandardr, the auditors are required to make certain work
papers available to federal and state regulatory agencies upon request for their reviews
of audit quality and use by their auditors. Access to the requested work papers will be
provided to the regulators under supervision of the auditor's personnel.
For a period of three (3) years after completion of any work provided herein, KPMG
shall make its work papers, records and other evidence and documents relating to such
work available to its successor and the City, including its designees. The City and its
'representatives shall be entitled, at any time during such three (3) year period, to
inspect such documents and to reproduce same, at its expense, for which provisions will
be made at the time the need for reproduction arises. It is also understood that this
agreement is subject to the provisions dealing with public records requirements of the
Florida Statutes.
? CL KPMG and its sub -contractor firms agree to communicate with and- provide its findings
7
to the City Manager and designee(s), the Audit Advisory Committee and the City
Commission, at a minimum on a quarterly basis, in writing or by formal presentation.
During the first three months of this Agreement, KPMG will provide a monthly verbal
report to the City Commission on the status of 1996 audit.
4
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98- 102
4
M. KPMG shall review the system of internal accounting control and internal
administrative control to the extent required by Generally Accepted Auditing Standards
and requirements of the Single Audit act.
N. K.PMG shall fulfill requirements of Section 10.550 of the Rules of the Auditor General,
for Local Governmental Entity Audits including:
1. Assist in the preparation of the Comprehensive Annual Financial Report.
2. Issuance of Annual Management Letter to inform the City of any material
weaknesses in the system of internal control as uncovered by their examination,
i
and to make known their recommendations which, if implemented, would, in
KPMG's opinion, increase efficiency, improve management and improve
internal control.
3. Agree with the State of Florida Comptroller's Report to the Comprehensive
Annual Financial Report.
4. Preparation of Single Audit Report and other necessary Federal and State
Reports.
III. COMPENSATION:
The CITY shall pay KPMG, as compensation for the fiscal year 1996 services
required pursuant to Exhibit I and Section 11, Items A-N, except E, F. G, and H. a
fee not to exceed $350,000 of which $75,000 will be allocated to the Single Audit
and State Grant in Aide Audit requirement. Said compensation for fiscal year 1996
shall be paid as follows:
- November 15, 1996 $100.000
5
1
98- 102 63
IV
- December 15, 1996 $1 15,000
- January 15, 1997 $100,000
- Delivery of all reports $ 35,000
Total $3 50,000
The KPMG sub -contractor firms will participate up to 50% of these fees on a
shared realization basis and KPMG is responsible for compensating such firms.
The CITY shall have the right to retain ten (10) percent of the final billing, which
shall be paid to KPMG upon receipt and acceptance of the final reports. The CITY
shall have the right to review and audit the time records and related records of the
Auditors pertaining to any such billing.
Fees for the September 30, 1997 and 1998 audit are anticipated to be $325,000,
subject to substantial implementation of the comments made in the KPMG
management letter to the City for the prior fiscal year.
ADDITIONAL SERVICES:
KPMG and its sub -contractor firms, upon receipt of a written request from the City
Manager or his designee, shall perform such additional services as may reasonably
be required, including, but not limited to, special revenue audits, agreed upon
procedure audits, special EDP reviews, reviews of Official Statements for offerings
of securities by the CITY, as well as meetings with underwriters and attorneys in
connection with offerings of securities and other consultative services, as relluesred.
0
64
08— 102
08— 102
A. Additionally, the CITY agrees to pay to KPMG the following fees for other
services as follows:
1. Compensation to KPMG and its sub -contractor firms for extra services
performed pursuant to Section III of this Agreement shall be based as a
fixed agreed -upon amount negotiated at the time the services are requested.
Rates for audit staff classification for additional work, plus reasonable out-
of-pocket expenses are as follows for fiscal 1996:
Partner $160/per hour
Manager $120/per hour
Senior $100/per hour
Staff $ 75/per hour
2. The CITY shall pay KPMG, as compensation for services required pursuant
to Section II, Paragraph E and F, for actuarial services to the CITY, a fee
not to exceed $18,000 plus an additional $1,500 for approved travel and
exit interview expenses.
3. Pursuant to Section III, the CITY will pay KPMG up to $90,000 for time
expended regarding expanded assessment of internal control, assessment of
controls relating to new management information system,. preparation for
and attendance at status meetings with City Manager, Audit Advisory Board
and/or City Commission, expanded scope to fulfill auditing standards
relating to fraud detection and additional time which may be required due to
limited access to prior auditor workpapers. All additional services will be
documented by engagement letter to be approved by the City Manager Znd
•
the Auditor prior to incurring such costs.
7
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98- 102
B. KPMG agrees that it will sub -contract with the minority -owned firms of
Sharpton, Brunson & Company, P.A.; Sanson, Kline and Jacomino & Co.;
Watson & Company, P.A.; and Aida Briele & Associates, P.A. whereby
such firms will earn 50% of the fees outlined in Section 11, A-N, except
items E. F. G and H on a shared realization basis.
C. KPMG shall be reimbursed for non -local travel, per diem and related
expenses other than expenses incurred in connection with services rendered
under Section 11, A-N, excluding items E, F, G and H. All expenses relating
to travel shall be approved in advance by the CITY. If so authorized,
reimbursement shall be limited to amounts allowable under Chapter 112.061
of Florida Statues.
D. It is hereby understood by and between the CITY and KPMG and its sub-
contractor firms that any payment made in accordance with this Agreement
shall be made only if KPMG and its sub -contractor firms -are- not in material
default of this Agreement. If KPMG and/or its sub -contractor firms are in
material default, the CITY shall in no way be obligated and shall not pay to
KPMG and its sub -contractor firms any sum whatsoever.
8
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9R- 102 ��
V. COMPLIANCE WITH FEDERAL STATE AND LOCAL LAWS:
Both parties shall comply with all applicable laws, ordinances, and codes of Federal, State
and Local Governments.
VI. GENERAL CONDITIONS:
A. All notices or other communications which shall or may be given pursuant to
this Agreement shall be in writing and shall be delivered by personal service,
or by registered mail addressed to the other party at the address indicated
herein or as the same may be changed from time to time. Such notice shall
be deemed given on the day on which personally served, or, if by mail, on
the fifth day after being posted or the date of actual receipt, whichever is
earlier.
CITY
Edward Marquez
City Manager
City of Miami
3500 Pan American Drive
Miami, Florida 33133
KPMG
Jose R- Rodriguez
Partner
KPMG Peat Marwick LLP
2 South Biscayne Boulevard, Suite 2900
Miami, Florida 33 131-213 5
B. Title and Paragraph headings are for convenient reference and arc: i:Ot ,;:.'-t
of this Agreement.
C. In the event of conflict between terms of this Agreement and any terms or
conditions contained in any attached documents, the ter;:s °i �iiis
Agreement shall govern.
9
98- 102 ��
D. No waiver or breach of any provision of this Agreement shall constitute a
waiver of any subsequent breach of the same or any other provision hereof,
and no waiver shall be effective unless made in writing.
E. Should any provision, paragraph, sentence, word or phrase contained in this
Agreement be determined by a court of competent jurisdiction to be invalid,
illegal or otherwise unenforceable under the laws of the State of Florida or
the City of Miami, such provision, paragraph, sentence, word or phrase shall
be deemed modified to the extent necessary in order to conform with such
laws, or if not modifiable to conform with such laws, then same shall be
deemed severable, and in either event, the remaining terms and provisions of
this Agreement shall remain unmodified and in full force and effect.
VII. NONDELEGABILITY
This Agreement shall not be assigned, transferred, or encumbered, in whole or in part,
without prior approval of the City Commission and written notice by the City Manager.
VIII. AWARD OF AGREEMENT
KPMG warrants that -it has not employed or retained any person employed by the CITY to
solicit or secure this Agreement and that they have not offered to pay, been paid, or agreed
to pay any person employed by the CITY any fee, commission, percentage, brokerage fee,
or gift of any kind contingent upon or resulting from the award of this Agreement.
0
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IX. CONSTRUCTION OF AGREEMENT
This Agreement shall be construed and enforced according to the laws of the State of
Florida.
X. [NDEMNIFICATiONANSURANCE
The Auditor shall indemnify and save the CITY harmless from any and all claims, liabilities,
losses and causes of action which may arise out of the gross negligence or willful
misconduct of the Auditor, its officials, agents, employees or assigns in the fulfillment of
this Agreement. The Auditor shall pay all claims and losses of any nature whatever arising
therefrom, and shall defend all suits arising therefrom, in the name of the CITY when
applicable, and shall pay all costs and judgments which may issue thereon, except to the
extent caused by the negligence of CITY officers or employees. During the term of this
Agreement, KPMG shall carry the minimum insurance described below:
(a) Workers' Compensation insurance, for all employees of KPMG required by State
Statute 440 of the State of Florida;
(b) Professional liability with a limit that demonstrates a sound business practice.
(c) Commercial -auto liability insurance, covering owned, non -owned and hired
vehicles, combined single limit of $500,000 bodily injury and property damage.
Such insurance shall provide that it will not be canceled or modified without at least
thirty (30) days prior written notice to the CITY. All applicable policies shall name
the CITY as additional insured.
1l kk
9R- 102 6
(d) CITY agrees that all records, documentation, and information requested in
connection with the audit will be made available, that all material information will be
disclosed, and that the full cooperation of CITY personnel will be provided. As
required by generally accepted auditing standards, specific inquiries will be made of
management about the representations embodied in the financial statements, the
effectiveness of the internal control structure and the CITY's compliance with
certain laws and regulations, and management will provide a representation letter
about these matters. The responses to inquiries, the written representations, and the
results of audit tests comprise the evidential matter the auditors will rely upon in
r
forming an opinion on the financial statements. Because of the importance of
management's representations to the effective performance of the audit services, the
CITY will release KPMG and their personnel from any claims, liabilities, costs, and
expenses relating to their services under this Agreement attributable So any
misrepresentations in the representation letter referred to above.
XI. CONFLICT OF INTEREST:
A. KPMG covenants that no person under its employ who presently exercises
any functions or responsibilities in connection with this Agreement has any
personal financial interest, direct or indirect with the CITY. KPMG further
covenants that, in the performance of this Agreement, no person having
such conflicting interest shall be employed. Any such interest on the part of
KPMG or it's employees, must be disclosed in writing to the CITY.
B. KPMG is aware of the conflict of interest laws of the City of Miam; (ClItY Of
Miami Code Chapter 2, Article V), Dade County, Florida (Dade County
12
70 98- 102 kk
IX. CONSTRUCTION OF AGREEMENT
This Agreement shall be construed and enforced according to the laws of the State of
Florida.
X. 1NDEMNIFICATIONANSURANCE
The Auditor shall indemnify and save the CITY harmless from any and all claims, liabilities,
losses and causes of action which may arise out of the gross negligence or willful
misconduct of the Auditor, its officials, agents, employees or assigns in the fulfillment of
this Agreement. The Auditor shall pay all claims and losses of any nature whatever arising
therefrom. and shall defend all suits arising therefrom, in the name of the CITY when
applicable, and shall pay all costs and judgments which may issue thereon, except to the
extent caused by the negligence of CITY officers or employees. During the term -of this
Agreement, KPMG shall carry the minimum insurance described below:
(a) Workers' Compensation insurance, for all employees of KPMG required by State
Statute 440 of the State of Florida;
(b) Professional liability with a limit that demonstrates a sound business practice.
(c) Commercial. auto liability insurance, covering owned, non -owned and hired
vehicles, combined single limit of $500,000 bodily injury and property damage.
Such insurance shall provide that it will not be canceled or modified without at least
thirty (30) days prior written notice to the CITY. All applicable policies shall name
the CITY as additional insured.
11
98- 10
711A
Code Section 2- 1 I.1) and the State of Florida, and agrees to fully comply
with said laws in all respects.
XII. INDEPENDENT CONTRACTOR:
KPMG and its employees and agents shall be deemed to be independent contractors, and
not agents or employees of the CITY, and shall not attain any rights or benefits under the
Civil Service or Pension Ordinances of the CITY, or any rights generally afforded classified
or unclassified employees; further they shall not be deemed entitled to the Florida Workers'
Compensation benefits as employees of the CITY.
XIII. TERMINATION OF AGREEMENT:
The CITY retains the right to terminate this Agreement at any time during each of the fiscal
years of its term or any extension thereof prior to the completion of the services required
pursuant to Paragraph II hereof without penalty to the CITY. In that event, notice of
termination of this Agreement shall be in writing to KPMG, who shall be paid for those
services performed prior to the date of receipt of notice of termination.
XIV. NONDISCRIMINATION:
KPMG agrees that it shall not discriminate as to race, sex, color, religion, age, marital
status, national origin or handicap in connection with its performance under this Agreement.
XV. MINORITY PROCUREMENT COMPLIANCE:
KPMG acknowledges that it has been furnished a copy of Ordinance No. 10538, the
Minority Procurement Ordinance of the City of Miami, and agrees to comply <<-.`i 0
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72
applicable substantive and procedural provisions therein, including any amendments
thereto.
XVI. CONTINGENCY CLAUSE:
Funding for this Agreement is contingent on the availability of funds and continued
authorization for program activities and is subject to amendment or termination by the
CITY due to lack of funds, or authorization, reduction of funds, and/or change in
regulations.
XVII. DEFAULT PROVISION:
In the event KPMG shall fail to comply with each and every term and condition of this
Agreement or fail to perform any of the terms and conditions contained herein, then the
CITY, in addition to other remedies available by law, may, upon written notice to KPMG,
cancel and terminate this Agreement. and all payments, advances, or other compensations
paid to KPMG by the CITY while KPMG was in default, shall be forthwith returned to the
CITY.
XVIII. , ENTIRE AGREEMENT:
This instrument and its attachments constitute the sole and only agreement of the parties
hereto relating to the subject matter hereof and correctly sets forth the rights, duties, and
obligations of each to the other as of its date. Any prior agreements, promises,
negotiations, or representations not expressly set forth in the Agreement are of no force or
effect.
14 ''13
98- 102
M
_z� Peat i\Aa rwick ALP
One Biscayne Tower
Suite 2900
2 South Biscayne Boulevard
Miami, FL 33131
January 13, 1998
Mr. Jose R. Garcia -Pedrosa
City Manager
City of Miami
3500 Pan American Drive
Miami, Florida 33133
Dear Mr. Garcia -Pedrosa:
Telephone 305 358 2300 Telefax 305 577 0544
KPMG Peat Marwick LLP ("KPMG") is pleased to present this proposal to conduct a private salary
and benefits (e.g., vacation, sick leave, car, signing bonus, and other perquisites) survey for the City of
Miami, Florida (the "City"). This proposal is in response to a City Commission resolution passed on
December 30, 1997 directing the external auditor KPMG to analyze the competitiveness of executive
compensation and benefits for top management positions in municipal government comparable to that
of the City. We believe our experience with designing and implementing innovative compensation
programs and performance management systems for numerous clients, including the public sector,
makes us uniquely qualified to assist the City with this critically important study.
Based on your input with respect to the City's most immediate needs, we have developed this proposal
to assist you in ensuring that the City's management staff is compensated competitively.
This letter presents the following elements:
• Project goal, objectives and scope;
• Proposed work plan and deliverables; and
• Estimates of time, professional fees, and expenses required to complete the study.
77 cam. s`7N South Florida Business Unit 1(%� Member Pinn of 918 .L fV/
KPMG International Miami Fort Lauderdale West Palm Beach
75
KPAfCr- Peat Marwick ALP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 2
Project Goal, Objectives And Scope
Our primary goal for this project is to assist the City in establishing competitive compensation and
benefits for selected management positions within the City, in order to recruit and retain qualified
candidates while maintaining internal equity. Based on this goal, specific objectives of this project are
to:
■ Develop and administer a private compensation and benefits survey to assess the external
competitiveness of the annual cash compensation and benefits for benchmark positions
(benchmark positions shall be selected jointly by KPMG and the City to ensure adequate coverage
for the scope of the project and to maintain internal equity;
■ Utilize our published survey sources to supplement information gathered from our private
compensation and benefits survey;
■ Develop competitive salary ranges for selected management positions within the City;
■ Conduct an analysis of competitiveness of benefits with the external market; and
■ Develop salary administration guidelines.
The scope of this project encompasses up to thirty selected management positions within the City.
This study is not intended to be an actuarial analysis of the City's retirement, health, life, or disability
benefits packages, but focuses on those policies that bear directly on a manager's annual compensation
including selected benefits such as vacation, bonus, and sick leave.
Work Plan and Deliverables
To accomplish this study's objectives, we propose a eleven (11) step work plan which includes the
following activities:
Step 1 Collect/Review Documentation: We will collect and review written documentation
pertaining to the City (e.g., job descriptions, past compensation survey data, salary data
and current compensation and benefits program). This review will provide us with
background information and a firm foundation for the consulting team in addressing the
City's needs;
76 98- 102
KPW Peat Marwick LAP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 3
Step 2 Communications Documents: Because projects such as this often foster new
expectations, it is important that the City have a focused communication strategy to
articulate the project's objectives, goals, and methodology. We will discuss the City's
strategy for communication at the beginning of the project;
Step 3 Conduct Initial Meeting: We will meet with appropriate City representatives to
review the project approach, objectives, action steps, time frames, and additional
'documentation needs. In addition, we will also address the following issues related to
the private compensation and benefits survey.
Examples of survey type information is as follows:
■ What is the proper comparison market for the City?
Organization/mission Which entities share the City's orientation and culture?
Scope Which entities provide similar services?
Demographics Which entities have similar demographic characteristics,
labor pool availability, and cost of living?
■ Which specific compensation and benefits elements should be included in the
survey?
■ What is the scope and responsibility level of each position to be included in the
compensation and benefits survey?
Which published survey data will be used as a base for comparison?
We will also review a draft survey instrument with the City to ascertain its
appropriateness in meeting project goals.
Step 4 Administer Private Survey: Based on input from the City, we will administer a
private compensation and benefits survey covering the jointly selected benchmark
positions;
98- 102 77
KP/WC- Peat Marwick LLP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 4
Step 5 Research Published Compensation and Benefits Data: We will reference our
database of published compensation and benefits survey data to supplement feedback
obtained from the private salary survey;
Step 6 Accumulate and Analyze Findings: We will incorporate findings from the private
and published compensation and benefits surveys into our final report. A separate
summary document will be prepared and distributed to private survey participants;
Step 7 Develop Salary Ranges and Salary Guidelines: Based on the competitive
compensation data and scope and responsibility levels of each position, we will develop
preliminary recommendations for a salary ranges, guidelines for placement of jobs
within the ranges, and methodology for increasing salary levels in future years;
Step S Evaluate City's Current Benefits Program: Utilizing the competitive benefits data
collected from both the private survey and best practices, we will compare the City's
current benefits package to the external market. We will prepare preliminary
recommendations for improving the City's current benefits program based on the
external analysis;
Step 9 Review Preliminary Recommendations with City Representatives: We will meet
with City representatives to evaluate analyses and preliminary recommendations;
Step 10 Finalize Recommendations: We will finalize our recommendations and incorporate
them into our final project report; and
Step 11 Prepare Final Report: We will prepare and submit to the City a final report which
summarizes our findings, analyses, and recommendations associated with the City's
current compensation and benefits program.
Estimates of Time, Professional fees and Expenses
Our professional fees are based on the amount of time spent on a study and the experience level of the
consultants required to complete each work step. Within the project's scope described in this proposal,
our professional fee estimate to complete all phases of the project is not to exceed $30,000. Our
proposed fees including travel, secretarial and computer time, and report reproduction. Typically,
these expenses comprise approximate 10 - 15 percent of our proposed professional fee.
98- 102
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KPW- Peat Marwick ALP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 5
This study is a component part of the Operational Planning project adopted by the City Commission
on December 30, 1997. The study will be conducted by KPMG consultants. Lisa Smith, in our
Compensation and Performance Management Consulting Services practice in our South Florida office
will lead this project with significant support from Karen G. Collins. This project will be coordinated
with the Citywide Operational Planning project being conducted by KPMG. Ms. Smith and Ms.
Collins will work closely with the City's project manager and the Commission to ensure this study is
coordinated effectively with other City efforts. Attached is a resume for Ms. Smith and Ms. Collins.
We are prepared to start this project immediately. As requested by you, we are prepared to present
preliminary results within 6 to 8 weeks of project initiation. It should be noted that this is contingent
upon timely participation from our survey participants and full cooperation from the City.
We appreciate the opportunity to present this proposal to the City of Miami. We believe that our
ongoing relationship with the City and our experience in conducting salary surveys and developing
effective and competitive compensation strategies provides the City with a cost-effective approach for
achieving the objectives we have discussed. We look forward to getting started.
City of Miami
Title
cc: Commissioner Arthur Teele
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XPAoIG- Peat Marwick ALP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 6
LISA KAREN SMITH
Senior Manager
Compensation & Benefits
Ms. Smith consults in various areas of Human Resources including compensation planning and
qualified and non -qualified benefits design and compliance. Prior to joining KPMG Peat Marwick,
LLP, Ms. Smith served as Vice President, Human Resources Planning and Administration for a
retailing organization which employed approximately 80,000 people. Her duties there included the
areas of Compensation, Benefits, HRIS, Customer Service, Training, Management and Organizational
Development. Previous experience also includes 8 years in various tax positions in industry and
public accounting, including special emphasis on tax issues with respect to benefits plans.
Professional Activities
Ms. Smith is a member of the following professional organizations: American Society for Training
and Development (ASTD), Society for Human Resources Management (SHRM), American
Compensation Association (ACA), AICPA and FICPA.
Education
Ms. Smith earned her Bachelor of Arts degree in Economics from Emory University in 1981. She
received her M.A. in Accounting Information Systems from the University of West Florida in 1986.
19s, 102
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1KFWlG Peat Marwick LLP
Mr. Jose Garcia -Pedrosa
City of Miami
Page 7
KAREN G. COLLINS
Manager, Performance and Compensation Management Consulting
Ms. Collins experience is primarily in the areas analyzing and designing effective compensation programs, job
descriptions, job classification/evaluation programs, performance management systems and assisting
organizations in reviewing, modifying, and/or developing effective human resource programs. She has
developed comprehensive compensation programs within both the public and private sector.
Representative Accomplishments
• Developed performance management systems for organizations' management and administrative
staff. These systems typically include the establishment of. (1) individual and team objective
setting programs, (2) individual performance assessment methodology, (3) coaching and career
counseling programs, (4) upward feedback systems to improve supervisors' performance, and (5)
mechanisms to tie performance to compensation.
• Designed and implemented numerous compensation programs including analysis of internal equity
and external competitiveness
• Developed comprehensive job descriptions for both exempt and non-exempt positions.
• Administered and analyzed private compensation surveys and analyzed published survey sources
• Developed and implemented comprehensive job classification systems (i.e., slotting jobs into
salary grades) which are specifically tailored to clients' needs and cultures.
• Administered organization -wide and departmental productivity improvement projects. These
projects typically involve the utilization of SPANS, KPMG's proprietary software for analyzing
the duplication, criticality, and efficiency of activity performance.
• Developed Human Resource policies and programs for a wide variety of organizations. Designed
communication documents, including Human Resource Policy Manuals and Employee
Handbooks.
Background
Prior to joining KPMG, Ms. Collins designed job training programs targeted at minorities for the City of
Seattle. She graduated Phi Beta Kappa from the University of Washington, where she received a Bachelor of
Arts degree. In addition, Ms. Collins holds a Master of Business Administration degree from the University of
San Diego.
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