Loading...
04-07-90 Special/Workshop CITY OF DELRAY BEACH, FLORIDA SPECIAL WORKSHOP - CITY COMMISSION April 7, 1990 11:15 A.M. AGENDA Commission Chambers Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting or hearing, such persons will need a record of these proceedings, and for this purpose such persons may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The City does not provide or prepare such record. 1. Discussion of Employment Contract for City Manager. · . MINUTES OF THE SPECIAL WORKSHOP MEETING OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA HELD APRIL 7, 1990 Present: Mayor Thomas E. Lynch, Commission Members Jay Alperin, William Andrews, Mary McCarty, David Randolph, Interim City Manager Robert Barcinski and Assistant City Attorney Jeffrey Kurtz. The meeting was called to order at 11:17 A.M. 1. Discussion of Employment Contract for City Manager. Robert Elliott, applicant for City Manager, stated he would like to thank the Commission for allowing him to be a participant in the program for the last couple of days and is now prepared to discuss the contract in any aspect. Assistant City Attorney Kurtz commented he has presented the Commission with memos concerning some of the proposed changes. The contract, as drafted, is acceptable to Mr. Elliott and is now before the Commission for their decision. Upon question by Mayor Lynch, Dr. Alperin stated he feels the Commission should discuss the changes in the standard contract. Assistant City Attorney Kurtz advised he has identified six basic substantive issues, the first being the length of the contract. Mr. Elliott prefers an open end term opposed to a two year term. with a fixed term contract the primary advantage to the City would be, at the conclusion of that term, all obligations under the contract including severance pay would be eliminated, realizing a potential savings. In addition, with a defined time period, people can be more focused and aware that there is a date when their performance will be seriously evaluated. Mayor Lynch commented that one of the problems with a fixed term contract is that there is too much focus on that term, with too much time spent thinking about how that person can be removed within two or three years and maybe hold on or procrastinate a decision. Mr. Elliott stated he does not want to comment on each section unless the Commission would like him to. He suggested the Commis- sion consider the contract as a total package and decide on the merits of the package. Assistant City Attorney Kurtz stated the Commission originally proposed a six month severance package; however, if there was termination wi thin the first six months, the severance package would be for only three months. Mr. Elliott rejected that package as being totally inadequate and proposed a nine month severance package within the first two years of employment, from years two to four that would transition into a six month package and after four years the severance would only be three months. Assistant City Attorney Kurtz advised another major issue is the salary package. The Commission authorized a $70,000 offer, which Minutes of the Special Workshop held April 7, 1990 Page 2 Mr. Elliott perceives to be a compression problem in the salary levels between department heads and himself. He feels the approp- riate compensation should be at the upper end of the advertised salary position of $70,000 to $80,000, but would be willing to accept a $75,000 initial salary, with a performance evaluation at the end of six months on November 1st. If deemed satisfactory at that time, he requests a five percent increase in salary. There- after, he would like his performance to be reviewed on an annual basis in accordance with the City's budgetary year, to take place in August, with a salary increase to become effective in October. He has proposed a specific step plan of five percent increases, if his performance is above-average level, to be continued until the end of 1993. Thereafter, there would be no specific raises or criteria that would allow a raise. In addition, Mr. Elliott would like to get COLA increases, not to the extent of those granted to all employees, but rather to management level and defined by the Commission. Upon question by Ms. McCarty, Assistant City Attorney Kurtz advised the five percent increase on November 1st would be for satisfactory performance and anything after that would be based on an above- average performance. Assistant City Attorney Kurtz stated the next issue concerns a temporary stipend to get him over the hump in the transition from Enid, Oklahoma to Delray Beach. The Commission had previously offered a cap of $ 2,500 for expenses on a reimbursement basis, based on an allocation given to Mr. Barry when he moved from Melbourne. Mr. Elliott pointed out there is a difference in moving from Melbourne, Florida, opposed to Enid, Oklahoma and is proposing a $1,000 a month stipend up to a maximum of six months or at the time that his house in Enid is sold and closed. Assistant City Attorney Kurtz commented that the next item refers to the amount of sick and vacation leave to be afforded on an annual basis. Mr. Elliott requested that 15 days be placed in a bank for vacation and that he accrue vacation leave at a rate of 15 days per year. He also requested that 12 days sick leave be placed in a bank and that he accrue another 12 days a year. The differ- ence is that a general employee would have nothing in the bank for either of those two items and would accrue sick and vacation leave at 12 days a year. In the past, the City has granted an initial bank and accrual at the rate of 12 days per year, subject to normal Ci ty policies. Ms. McCarty pointed out that the reason for the banking of Mr. Barry's vacation days was due to the fact that he was currently employed at the time and the City did not want to impact the benefit he was receiving. Assistant City Attorney Kurtz advised the final significant issues deal with insurance provisions. Mr. Elliott is requesting that his dependent health care coverage be paid by the City. Current City policy is that premiums for dependent health care coverage are the Minutes of the Special Workshop held April 7, 1990 Page 3 responsibility of the employee. Mr. Elliott would also like the City to purchase a $200,000 term life insurance policy and, it is his understanding, this will cost approximately $500 on an annual basis. Upon question, Assistant City Attorney Kurtz advised the dependent health care coverage would equate to $2,000 per year. The City would traditionally waive the waiting periods on insurance coverage. Assistant City Attorney Kurtz commented that a minor issue is that of physicals. Mr. Elliott's employment with the City is condition- al upon passing a physical and drug test and he has asked that a thorough physical be continued on a biannual basis at a cost of approximately $750. Mr. Elliott presented this as a package; there are other benefits contained in this package, but they have not been altered. Dr. Alperin stated he feels Mr. Elliott showed a good example as a negotiator. He would pre fer a closed end contract, but would be willing to go along with an open end contract. He also expressed the feeling that a six month severance would be ample with no reduction. He stated he feels comfortable with the salary offer of $70,000, if all the benefits are offered with that. He has a concern regarding the elimination of benefits for some of the City's long time employees simply due to a difference in salary. His feeling is that a five percent increase should be automatic for above-average performance and he would be reluctant to consider a full COLA; and as top management, he is wondering if COLA is also appropriate in that. Upon question by Dr. Alperin, Assistant City Attorney Kurtz stated the stipend would be $1,000 per month, the Ci ty would not be concerned with the actual expenses incurred and it would be for a maximum of six months. Dr. Alperin stated he always considered the benefits of banking sick and vacation leave to be a reward of continuing employment and doing a good job and feels uncomfortable in allowing one full year of banking up front. He stated he would not hesitate to supply full insurance coverage for the family and is comfortable with waiving the waiting period, providing the $70,000 contract was accepted. He also feels the physical is a major benefit, but would certainly go along with that. Mr. Randolph commented that he has no problem with the open end contract and views it as beneficial to the City. He feels comfort- able going with the additional $5,000 for a total salary of $75,000. He would be more agreeable to a three month, opposed to a six month stipend. With regard to banking days, he would prefer nine days for sick leave and twelve for vacation. He agrees with providing the term life insurance, but is concerned about the dependent health care, especially if the contract is $75,000. Mayor Lynch stated he has no problem with the open end contract, feeling comfortable with the severance package of nine months for the first year, dropping to six months for the following two years Minutes of the Special Workshop held April 7, 1990 Page 4 and after four years to three months, which would show good will on Mr. Elliott's part. He would like a $73,000 salary to begin with, adding $2,000 for the dependent insurance coverage making a total of $75,000. After the first year, he feels Mr. Elliott should be responsible with regard to dependent insurance if there should be an increase. He is comfortable with the five percent for above- average performance and with the take out of COLA. If Mr. Elliott's job becomes more demanding and he continues to do a better job, he sees no reason why the five percent cannot be increased. If this does not happen, he would like the flexibility of also decreasing the five percent. Mayor Lynch expressed a desire for more exactness regarding moving and living expenses, which he feels is a duplication, due to the assumption that Mr. Elliott will receive severance pay from his former position. He further stated that he is agreeable with the biannual physical. Ms. McCarty expressed a concern that the Commission is eliminating any possibility for not having to pay severance for eliminating any possibility for a smooth transition but, since it seems to be the consensus of the Commission that they have no problem with an open end contract, she will not oppose that. She stated she has no problem with the severance package of nine, six and three months. Her suggested salary for Mr. Elliott would be $70,000 along with an increase of five percent for above-average performance. She concurs with the Commission in opposing COLA and that will be consistent with her policy regarding the management personnel this year. If there is a change, Mr. Elliott would be included in that change. She has no problem with the temporary stipend. She would be inclined to allow Mr. Elliott to bank 12 days for sick and vacation leave after the first six months, to begin with a bank of nine, to be increased at an incremental level up to 15 for both over the next one to two years ending with a cap of fifteen days. She has no problem in picking up the dependent health care coverage with a cap of $2,000, the $200,000 term life insurance policy and the extensive physical biannually. Mayor Lynch stated he forgot to voice his acceptance of allowing Mr. Elliott a week off for the purpose of moving his family. Other than that, he is not agreeable to allowing vacation or sick leave during the first six months. He also commented that he is agree- able to twelve days vacation and nine sick days after six months. After one year, he concurs with the 15 days. Dr. Alperin commented, if allowed as the contract states, after one year and no sick or vacation time is used, thirty days vacation and twelve sick days will have accrued. Assistant City Attorney Kurtz advised Mr. Elliott would have five personal leave days, pursuant to City Policy as of October 1. Wi thin the contract there was a cap placed on what he could potentially accrue and that was placed at 120 days for both sick and vacation leave. · Minutes of the Special Workshop held April 7, 1990 Page 5 Mr. Elliott commented he would be reluctant, at this point, to change the negotiations. He and Mr. Kurtz negotiated in good faith, at the direction of the Commission, and he does not feel the public should be left with the impression that negotiation is taking place at this time. Assistant City Attorney Kurtz commented that he would like to summarize what he feels he is hearing from the Commission as follows: open end term is agreeable; the severance package being nine months in the first two years is an open item and six months is agreeable definitely; the salary has a consensus of $75,000 if dependent coverage is picked up by Mr. Elliott and $70,000 is the number if the City is providing the dependent coverage; temporary stipend is agreeable; sick and vacation leave needs to be adjusted and the remainder of the insurance benefits are acceptable. Assistant City Attorney Kurtz advised that he will report back to the Commission as soon as possible explaining at what point he and Mr. Elliott have arrived with regard to this situation. Assistant Ci ty Attorney Kurtz commented, on the salary package, he did not perceive a negative reaction to the idea of a step plan, if it eliminated or tied COLAs to what would be granted to management level personnel. Mayor Lynch stated that includes the first six months and from then on yearly. His feeling would be, depending on how the City pro- gresses and what is happening, there is a possibility that could go even higher, based on performance. The meeting was adjourned at 12:00 Noon. rs