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2013-28184 Reso RESOLUTION NO. 2013-28184 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND CITY MANAGER JIMMY MORALES, WITH THE CITY MANAGER'S TERM OF EMPLOYMENT HAVING BEEN DEEMED TO COMMENCE RETROACTIVELY, AS OF APRIL 1, 2013. WHEREAS, on March 13, 2013 the Mayor and Commission appointed Jimmy Morales as City Manager of the City of Miami Beach (City) to be effective on April 1, 2013; and WHEREAS, it is the desire of the City to provide certain benefits and to establish certain conditions of employment for Jimmy Morales in his capacity as City Manager; and WHEREAS, Jimmy Morales desires to accept the position of City Manager pursuant to the terms and conditions set forth in the attached Employment Agreement, the terms of which the parties agree will promote his continuous productivity and efficiency in the best interest of the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute an Employment Agreement between the City of Miami Beach and City Manager Jimmy Morales, with the City Manager's term of employment having been deemed to commence retroactively, as of April 1, 2013. PASSED and ADOPTED this /I day of r-1 , 2013. ATTEST: �P.........•••••... Bow e.0 Matti errera Be y ayor APPROVED AS TO Rafael . Granado, City Clerk FORM &LANGUAGE INCORP ORATED: &FOR EXECUTION .........•. �N 26 ( �3 orn Date F:\ATTO\SMIJ\Morales,Jimmy\Resolution Approving Jimmy Morales Employment Contract 4-1- A cx EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into, by, and between JIMMY L. MORALES ("Morales") and the CITY OF MIAMI BEACH, FLORIDA (the "City") (collectively, the "Parties"). WHEREAS, the City, acting by and through its City Commission, desires to employ Morales as its City Manager on the terms and conditions set forth in this Agreement and Morales desires to accept employment as City Manager on those same terms and conditions; NOW, THEREFORE, the Parties agree as follows: 1. Recitations. Parties agree that the recitations above are true and correct and are incorporated as if fully set forth here. 2. Employment. The City agrees to employ Morales as its City Manager and Morales agrees to be so employed. Morales will devote his full working time to his duties as City Manager and will not accept or perform any other employment, paid or unpaid, while he is employed as City Manager except as expressly set forth herein or expressly agreed to by the City Commission by resolution and modification of this Agreement according to its terms. However, nothing in this Agreement shall prohibit Morales from occasional other work, such as teaching, writing, community activities, pro bono work, or civic or charitable activities as is appropriate to this position of City Manager, provided, however, that such work shall not interfere with Morales' duties as City Manager and shall not in any way reflect unfavorably on the City. Morales shall at all times apply his best efforts to the performance of his duties as City Manager. 3. Employment At Will. Morales is employed at will and serves at the pleasure of the City Commission. This Agreement and his employment may be terminated by the City Commission at any time and for any reason or for no reason, subject only to the express Termination provisions of this Agreement. 4. Duties. Morales will perform the duties of the office of City Manager as set forth in the Charter of the City of Miami Beach, Florida, and in the Code of the City of Miami Beach, Florida, and all such duties customary and appropriate to this position of City Manager and such other appropriate duties as may be assigned by the City Commission or its designee from time to time. 5. Effective Date. This Agreement shall become effective April 1, 2013 (the "Effective Date"). 6. Term. The term of this Agreement shall commence at 12:01 a.m., April 1, 2013, and shall expire at midnight, March 31, 2015, unless terminated earlier or renewed as set forth herein. 7. Compensation. Morales shall receive compensation for performing the.duties of City Manager as set forth in this Section 7. Nothing other than those items set forth in this Section 7 shall be considered or treated as compensation, wages, salary, earnings, or 1 remuneration to Morales for any purpose whatsoever, including pension or for purposes of Section 448.08, Florida Statutes, or in arbitration. a. Salary. The City shall pay Morales a salary of annualized at $255,000.00 to be earned and to accrue bi-weekly. This salary shall likewise be paid bi-weekly according to the usual payroll practices of the City applicable to unclassified general employees. Morales may participate in the Section 457 deferred compensation plan offered by the City and may designate a portion of his salary to be contributed thereto according to the terms of the plan and applicable law. It is understood and agreed that any contributions to the plan shall be made by Morales and not the City. The City agrees to review the annual salary and/or other benefits of Morales at the time of evaluation of performance as provided in Section 7.d. and make adjustments as the City may determine. An annual salary review of Morales will be made every year within 30 days after April 1 of each year. b. Insurance. The City will pay the full amount of premiums for the City- offered group medical and group dental plan selected by Morales, for himself and his eligible dependents. The City will pay the full amount of premiums for the City-offered life insurance policy on Morales. Morales may (or, if participation is mandatory, shall) participate in other City-offered insurance for which he is eligible on the terms applicable to unclassified general employees. C. Leave. Morales will be eligible to accrue, use, and convert leave hours to the extent and on the terms applicable to unclassified general employees. d. Performance Evaluation and Incentive. i. An annual review and evaluation of Morales shall be in accordance with the specific criteria developed jointly by the City Commission and Morales as set forth in Section 7.d.11. The Mayor shall provide Morales with a summary written statement of the findings of the City Commission and provide an adequate opportunity for Morales to discuss the review and evaluation with the City Commission. ii. Within 90 days of the Effective Date of this Agreement and annually thereafter, the City Commission, in consultation with Morales, shall set quantitative measures and goals upon which to evaluate the performance of Morales. Such measures may include, but are not limited to, the City's financial performance, progress on capital projects, improvements in customer service, and successful implementation of agreed upon priority initiatives. Based on the measures and goals established and the performance achieved pursuant to the City Commission's review of those measures and goals as provided in Section 7.d.i., the City Commission may provide to Morales a onetime Performance Incentive of up to 10 percent of the annualized salary amount set forth in Section 7.a. The Performance Incentive shall not be deemed a part of"base pay" or other earnings for purposes of pension. 2 8. Non-Compensation Expenses and Reimbursements. The City will pay for, reimburse, or otherwise provide for the items set forth in this Section 8. These items are paid for, reimbursed, or otherwise provided because they inure to the benefit of the City and do not constitute compensation, wages, salary, earnings, or remuneration to Morales for any purpose whatsoever, including pension or for purposes of Section 448.08, Florida Statutes, or in arbitration. a. Vehicle. The City will pay to Morales a vehicle allowance in the amount of$6,000.00 annually, paid in proportionate bi-weekly installments to reimburse him for the use of his personal vehicle for the benefit of the City. b. Moving Allowance. The City will pay to Morales a onetime allowance of up to $3,500.00 to reimburse Morales for reasonable moving-related expenses should Morales, in his sole discretion, choose to move his primary residence into the City during the first 12 months of this Agreement. The moving allowance will be paid upon submission of satisfactory documentation of the moving-related expenses. C. Information and Communications Technology Expenses. The City will provide to Morales adequate and reasonable information and communications hardware, software, and services to support him in the performance of his duties as City Manager. d. Subscriptions, Memberships, and Fees. Morales may include as an expense item in the budget of the Office of the City Manager an amount to be used to pay for such reasonable subscriptions, memberships, and fees and other similar costs, such as travel and lodging, as may be incurred for development and advancement related to, in support of, and inuring to the benefit of the City. No payment authorized hereunder may be made to an entity that illegally discriminates on the basis of race, color, gender, religion, national origin, age, disability, marital status, or sexual orientation. 9. Renewal and Non-Renewal. The City Commission may renew or extend the original term of this Agreement by resolution for succeeding periods as specified by the City Commission on the same terms and conditions as then set forth in this Agreement or on such modified terns and conditions to which it may agree with Morales. Should the City Commission not renew or extend the original or any succeeding term, this Agreement shall expire at the end of such original or succeeding term. Morales' employment shall simultaneously end with the expiration of the original or succeeding term or period. Should the City not renew this Agreement, it will either give Morales 90 days' notice of intent not to renew or, if no notice is given, the City shall, commencing upon the end of his employment, pay Morales an amount equivalent to 12 weeks of the salary amount set forth in Section 7.a. (the "Separation Payments"), along with all payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and shall have no further liability to him whatsoever. The Separation Payments will be paid bi-weekly according to the City's usual payroll practices. Should Morales accept employment prior to the expiration of 12 weeks after the date of expiration of the original or succeeding term, the Separation Payments shall immediately cease and the City shall have no obligation to make Separation Payments then remaining unpaid. 3 10. Termination by Morales. a. With Notice. Should Morales terminate this Agreement by giving notice not less than 90 days prior to termination, the City shall pay him in like manner as if the Agreement were not renewed. b. Without Notice. Should Morales terminate this Agreement by giving notice less than 90 days prior to termination, the City shall pay him any payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and shall have no further liability to him whatsoever. 11. Termination by the City. The City Commission may terminate this Agreement and, thereby, Morales' employment at any time, without or without notice, and for any reason or for no reason. a. Without Cause. Should the City terminate this Agreement without Cause, as defined in Section l Lb., it shall pay Morales an amount equivalent to 20 weeks of the salary amount set forth in Section 7.a. (the "Severance Payment"), along with all payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and shall have no further liability to him whatsoever. Should Florida law be changed to permit a Severance Payment greater than that permitted under law at the time of the execution of this Agreement, the City Commission will review the amount of the Severance Payment set forth in this Agreement. In the event the City at any time during the term of this Agreement reduces the salary or other financial benefits of Morales in a greater percentage than an applicable across the board reduction for all employees of the City or in the event the City refuses after written notice to comply with any other provision of this Agreement benefitting Morales or if a majority of the entire City Commission in a public meeting requests that Morales resign then Morales may, at his option, be deemed to be terminated at the date of such reduction or such refusal to comply within the meaning and context of this Section l La. b. With Cause. Should the City terminate this Agreement with Cause, as herein defined, it shall pay Morales any payments due for work performed through the date of termination and other payments due, if any, upon termination on the same terms and conditions applicable to unclassified general employees and shall have no further liability to him whatsoever, including no obligation to pay the Severance Payment as defined in Section l La. Cause is defined as one or more of the following: material breach of this Agreement; conviction of any felony; admission of conduct that would constitute any felony; conduct that would constitute a violation of any applicable code of ethics or professional conduct; conduct that would constitute malfeasance or misfeasance in office as those terms are interpreted under Section 112.3187, Florida Statutes; or other similar conduct that the City Commission reasonably determines merits termination. 12. Pension. Morales shall become a member of the Miami Beach Employees Retirement Plan as a condition of his employment pursuant to the governing ordinance of the 4 plan (which plan, at the time of the execution of this Agreement, includes an accrual factor of 4 percent for the position of city manager). 13. Bonds. The City shall bear the full expense of any fidelity or other bond required of Morales in his capacity as City Manager under any statute, ordinance, or regulation. 14. Indemnification. The City shall indemnify and defend Morales or, at its option, provide a defense to Morales against claims arising out of and in the course and scope of his employment or function, consistent with and to the extent of Florida law under Chapter 111, Florida Statutes, and a public official's right to a defense against claims arising from their performance of their public duties performed while serving a public purpose under the common law of Florida. 15. Notice. Any notice hereunder shall be effective if made by delivery,postage paid, to the United States Postal Service or by a manner valid for personal service under the Florida Rules of Civil Procedure or by public statement on the record during a meeting of the City Commission in the presence of the party to whom notice is to be given. Notice, for purposes of this Agreement, is to be given to: City: Mayor Matti Herrera Bower(or successor) City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 and City Attorney Jose Smith(or successor) City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Morales: Jimmy L. Morales (or heirs) 6815 Corsica Street Coral Gables, Florida 33146 16. No Assignment or Delegation, No Third-Party Beneficiaries. The services provided by Morales are considered unique and personal to him. Accordingly, Morales may not delegate or assign any duty, obligation, or benefit attaching or accruing hereunder. This Agreement is entered into and intended for the benefit solely of the City and of Morales and not for the benefit of any other person or entity. 17. Entire Agreement, Severability, Modification, Waiver. The provisions of this Agreement constitute the entire agreement between the Parties on its subject matter and this Agreement supersedes any other agreement, understanding, representation, or promise whatsoever. Morales agrees that he has relied solely upon the express language of this Agreement in determining whether to enter into this Agreement and not upon any other understanding or communication of any kind, whether written or oral. Should a court or arbitrator of competent jurisdiction determine that any provision or portion thereof of this Agreement is illegal, invalid, or unenforceable, the remaining provisions or portions thereof shall 5 remain in full force and effect. This Agreement may be modified only by a writing signed by both Parties and approved by the City Commission by resolution. Waiver of any right or of any breach of this Agreement by either party in any instance or instances shall not constitute or be construed as a waiver in any other instance. 18. Construction, Governing Law, Headings. This Agreement shall be construed according to its express language and not strictly for or against either Party, regardless of authorship. This Agreement shall be governed by and according to the laws of the State of Florida. Section headings are for convenience only and shall have no legal effect. 19. Arbitration. The Parties agree that any claim or dispute arising from this Agreement, its interpretation, its renewal, or its breach shall be settled in final and binding arbitration by a single arbitrator under the Arbitration Policies and Procedures of the Federal Mediation and Conciliation Service. A panel of arbitrators may be requested by either Party and the Parties will select an arbitrator by alternative strikes. The first Party to strike will be determined by agreement or coin flip. Each Party may one time reject a proposed panel of arbitrators and request another. The party requesting any panel shall bear the expense of the request. The Parties shall bear equally the expense of the arbitrator and the location of the arbitration hearing. The Parties shall each bear their own litigation costs, including attorney's fees, court reporter fees, and witness fees, if any. The arbitrator shall apply a preponderance of the evidence standard of proof. The party asserting a claim or affirmative defense shall have the burden of persuasion as to that claim or affirmative defense. The arbitrator shall not have authority to make any award of attorney's fees or the costs of the arbitration. The arbitrator shall confine himself or herself strictly to the language of this Agreement and shall have no authority to add to, subtract from, or modify any term or provision of this Agreement. The arbitrator shall have no authority to construe any law, regulation, rule, principle of law, decision, or provision or provisions of this Agreement or to make any award that would result in or obligate the City, directly or indirectly, to incur any debt, cost, expense, or liability in excess of the amount initially budgeted, approved, and appropriated for the funding of this Agreement. Any such purported construction or award will be null and void. The arbitrator's award shall be subject to enforcement or vacation by the Circuit Court according to law. Moreover, and without waiving the preceding limitation, in no case shall the City be liable for any punitive, consequential, indirect, or incidental damages whatsoever. [INTENTIONALLY LEFT BLANK] 6 20. Counterparts, Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute a single instrument. Execution and delivery of this Agreement by electronic exchange bearing the copies of a Party's signature shall constitute a valid and binding execution and delivery of this Agreement by such Party. Such electronic copies shall constitute enforceable original documents. WHEREFORE, the Parties, after full consideration, including consultation with independent counsel, do knowingly, voluntarily, and intending to be legally bound, hereby enter into this Agreement duly executed on the dates written below. Attest: FOR CITY OF MIAMI BEACH, FLORIDA: Rafael E. Granado, City Clerk Ma Herrera Bower, Mayor 741, day of A I er)'/ , 2013 FOR MANAGER: Witness Signature Jimm orales, ati day of 1y1 c rc , 2013. Print Name O W' ess Signature Print Name APPROVED AS TO FORM & LANGUAGE 49 o R EXE TI N ate 7 2�t3 MIAMI BEACH OFFICE OF THE CITY CLERK State of Florida County of Miami-Dade I, Jimmy L. Morales, a citizen of the State of Florida and of the United States of America, and being employed by or an officer of the City of Miami Beach and a recipient of public funds as such employee or officer, do hereby solemnly swear or affirm that I will support the Constitution of the United States and of the State of Florida; and that I will well and faithfully perform the duties of City Manager for the City of Miami each, Lctive ril 1, 2013. Ji L. Morales Date City anager Sworn to(or affirmed)and subscribed before me this Z 9+1k day of March 2013, by Jimmy L. Morales, who is personally known to me. � Z9 I , n Ra/h� E. Granado Date City Clerk INCORP ORATED �!tj Notary Public State of Florida (^ Rafael E Granado My Expires 09/16/20DD916782 FACLER\CLER\OATH\Oath Morales Reg.Doc eV SCANNE[ MIAMI BEACH OFFICE OF THE CITY CLERK State of Florida County of Miami-Dade I, Jimmy L. Morales, a citizen of the State of Florida and of the United States of America, and being employed by or an officer of the City of Miami Beach and a recipient of public funds as such employee or officer, do hereby solemnly swear or affirm that I will support the Constitution of the United States and of the State of Florida; and that I will well and faithfully perform the duties of City Manager for the City f Miami B ch, effective April 1, 2013. 171j, immy L. orales, ate ity Man ger Sworn to and subscribed before me: 1 7- "In.- ( 3 isa S. Walsh, Circuit Judge j Date Eleventh Judicial Circuit of Florida FACLER\CLER\OATH\Oath Morales(2).Doc 46 SCANNC. m MMIABEACH 3 Pursuant to Florida Statutes § 876.05, all persons who now or hereafter are employed by or who now or hereafter are on the payroll of the City of Miami Beach are required to take the below oath. PUBLIC EMPLOYEES OATH I, the undersigned, being employed by or an officer of the City of Miami Beach, Florida, and a recipient of public funds as such employee or officer, do hereby solemnly swear or affirm that I will support the Constitution of the United States and of the State of Florida. Under penalties of perjury, declare that I have read the foregoing Oath, and that the facts stated in it are true. 1121111 Jimmy L. orales Date City Mana i ler Effective: pril 1, 2013 eljj�� SCC� r FACLER\$ALL\REG\OATHS\Loyalty Morales,Jimmy(non notary).docx