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Resolution 2021-31703 RESOLUTION NO. .2 0 2 1 3 1. 7 0 3 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 ALINA T. HUDAK, TO PROVIDE FOR THE TERMS AND CONDITIONS OF THE CITY MANAGER'S EMPLOYMENT, FOR A TERM OF UP TO FOUR (4) YEARS, COMMENCING AS OF APRIL 21,'2021,AND EXPIRING ON APRIL 20, 2025, UNLESS TERMINATED EARLIER BY EITHER PARTY IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT. WHEREAS,on April 21, 2021, the Mayor and City Commission appointed Alina T. Hudak as City Manager of the City of Miami Beach, to be effective immediately, on April 21,2021;. and WHEREAS, it is the desire of the City to provide certain benefits and to establish certain conditions of employment for Alina Hudak in her capacity as City Manager; and WHEREAS, Alina Hudak desires to accept the position of City Manager pursuant to the terms and conditions as setforth in the Employment Agreement attached to this Resolution as Exhibit "A", the terms of which the parties agree will promote the Alina Hudak's continuous productivity and efficiency_.in the best interest of the City in her capacity.as City Manager. NOW, THEREFORE, BE IT DULY RESOLVED BY THE. MAYOR AND THE 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 Alina T. Hudak, toprovide for the terms and conditions of the City Manager's Employment, fora term of:upto four (4) years, commencing as of April 21, 2021, and expiring on April 20, 2025, unless.terminated earlier by either party in accordance with the terms of the agreement. PASSED and ADOPTED this 12st day May, 2021. . ATTEST: Dan Gelber, Mayor 1° 5 kl/Zr Rafael E. Granado, City Clerk ,..,„ . , . iNcoRpl,oRArED) APPROVED AS TO .. .�,: z, FORM& LANGUAGE 11,1 !"-) '. a ..:.•;��~ & FOR EXECUTION !1I2 � 3 - a , City Attorney Dale MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,FL 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Rafael A. Paz, Acting City Attorney DATE: May 12, 2021 SUBJECT: 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 ALINA T. HUDAK, TO PROVIDE FOR THE TERMS AND CONDITIONS OF THE CITY MANAGER'S EMPLOYMENT, FOR A TERM OF UP TO FOUR(4)YEARS, COMMENCING AS OF APRIL 21, 2021, AND EXPIRING ON APRIL 20, 2025, UNLESS TERMINATED EARLIER BY EITHER PARTY IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT. On April 21, 2021, the Mayor and City Commission appointed Alina T. Hudak as City Manager of the City of Miami Beach, effective immediately. At that meeting, the City Commission directed the City Attorney to negotiate the terms for the proposed Employment Agreement with the City Manager, and to meet with Commissioner Arriola, as Chair of the Finance and Economic Resiliency Committee ("Finance Committee"), to review the proposed terms. Once adopted, the employment agreement would be retroactive to the April 21, 2021 date of the City Manager's appointment. The proposed Employment Agreement is attached hereto as Exhibit "A." The terms and conditions of the proposed Employment Agreement are summarized in the chart below, which includes a side-by-side comparison of the employment terms currently provided to City Attorney Raul J. Aguila, and the most recent employment terms provided to former City Manager Jimmy Morales. As shown below, the proposed compensation and terms of employment for City Manager Alina T. Hudak are consistent with the compensation the City has previously provided to both the City Manager and City Attorney. On April 30, 2021, Acting City Attorney and City Manager Hudak met with Commissioner Arriola, the Finance Committee Chair, to review the proposed terms. Following review of the proposed terms, Commissioner Arriola advised that the proposed terms are fair and commensurate with the City Manager's experience and the responsibilities of the position of City Manager. Commission Memorandum—Alina T. Hudak Employment Agreement May 12,2021 Page 2 The terms are summarized below: Raul Aguila Contract J.Morales 2019 Contract Alina T.Hudak's Proposed Terms Term Most recent extension was in Up to 4 years,terminable at Up to 4 years,terminable at May,2018,for 3 years and 10 any time and subject to annual any time and subject to months through March 31, evaluation annual evaluation 2022 final retirement date Base Salary $324,418(2021) $305,736.60 $320,000* *This salary is comparable to salary for City of Miami Manager. 457 Deferred Comp $26,000 per year $25,000 per year,subject to $26,000,subject to automatic Plan automatic annual increase to annual increase to maximum maximum amount permitted by amount permitted by law law IRA contribution $7,000 $7,000,subject to automatic $7,000,subject to automatic annual increase to maximum annual increase to maximum amount permitted by law amount permitted by law City Offered City to pay premiums for City to pay premiums for City to pay premiums for Life, Insurance Medical,Dental, Life Medical, Dental, Life,and Supplemental life,Short Term Supplemental life, Long-term care insurance for Disability, Long-Term Disability, Short Term Disability,and City Manager and dependents and Long Term Care Long Term Disability City Manager will decline Medical/Dental coverage in FY2021 ($45,052 value for family premium PPO coverage).City Manager may elect to join City health plan during open enrollment each year,with City to pay premiums for City Manager/dependents Annual leave Same as general employees Same as general employees, Same as general employees, plus accrual of 120 additional plus accrual of 120 additional Cap of accrued leave at 650 hours of annual leave per year hours of annual leave per year hours Cap at 500 hours,same as Cap at 500 hours,same as general employees general employees Vehicle allowance $800 per month $800 per month $800 per month Separation Benefits 12 weeks 12 weeks Separation Payment, 12 weeks Separation Payment, at Expiration of plus Medical and Dental for plus Medical and Dental for City Agreement(i.e.non- Morales and dependents for Manager and dependents for renewal at end of 4- one year one year(if CM elects to join year term) plan). The Separation Payments will cease if the CM finds alternate employment Commission Memorandum—Alina T. Hudak Employment Agreement May 12, 2021 Page 3 Raul Aguila Contract J.Morales 2019 Contract Alina T.Hudak's Proposed Terms during the 12 week period following her departure. Termination May be terminated by the City May be terminated by the City May be terminated by the City Commission at any time,with Commission at any time,with Commission at any time,with or without cause or without Cause. or without Cause. However,achievement of However,achievement of annual performance annual performance benchmarks shall impact benchmarks shall impact eligibility for bonus only,and eligibility for bonus only,and shall not constitute a basis for shall not constitute a basis for termination for Cause. termination for Cause. Separation Payment 20 weeks Separation Payment 20 weeks Separation Payment, 20 weeks Separation Payment if Termination plus Medical and Dental for (the same severance provided Without Cause Morales and dependents for to all other Charter officers), one year plus Medical and Dental for City Manager and dependents(if CM elects to join plan). Separation Payment None None None if Termination for Cause Termination by City City Attorney may terminate If Manager terminates with 90 If Manager terminates with 90 Manager upon 90 days prior written days'notice: 12 weeks days'notice: 12 weeks notice. No Separation Separation Payment,plus Separation Payment, plus Payment due if City Attorney Medical and Dental for Morales Medical and Dental for Morales elects to terminate. and dependents for one year and dependents for one year. If Manager terminates on less If Manager terminates on less than 90 days'notice,no than 90 days'notice,no Separation Payment. Separation Payment. Annual Annual Performance Mandatory annual review,with Mandatory annual review,with Evaluation/Goals Evaluation(30 days after May agreed-upon goals and agreed-upon goals and 16th) performance measures,with performance measures,and potential bonus up to 10%of potential bonus up to 10%of base salary base salary. City Manager Hudak proposes for goals to be established separately following Commission retreat/workshop in next 3-4 months and incorporated by amendment. TOTAL $394,741.38* $394,824.60* $372,413.20* COMPENSATION PACKAGE: *The City's contribution to the *The City's contribution to the *The City's contribution to the plan is actuarially determined plan is actuarially determined plan is actuarially determined for the plan to maintain benefits for the plan to maintain for the plan to maintain benefits for the entire plan each year. benefits for the entire plan for the entire plan each year. each year. Commission Memorandum-Alina T. Hudak Employment Agreement May 12, 2021 Page 4 In addition, consistent with City Manager Jimmy Morales's contract, the proposed Employment Agreement provides for a mandatory annual review of the City Manager's performance, and establishes a framework for assigning specific goals and priority objectives to the City Manager. To this end, the goals and objectives assigned to City Manager Morales, which were first developed in 2018, with a minor amendment in March, 2019, serve as a useful starting point. However, those goals and objectives need to be updated to reflect the current environment, as many of the City's current priorities, including public safety or post-COVID recovery and other initiatives, are simply not reflected in Jimmy Morales' 2018 performance objectives. Accordingly, because the priority goals and objectives of the City Manager need to be updated by the City Commission, in consultation with City Manager Hudak, the Agreement provides that the goals shall be adopted as soon as possible in the next 3-4 months (ideally, following a Commission workshop or retreat), and memorialized as an amendment to this Agreement. Until such time as the City Commission and Alina Hudak jointly establish such agreed-upon goals and priority objectives, Alina Hudak's immediate priorities shall focus upon (i)the continuation of the City's COVID-19 efforts, including post-COVID economic recovery; (ii) the continuation of City's ongoing public safety efforts, including during High Impact weekends such as Memorial Day weekend; (iii) City's FY2022 budget process; (iv) the City Manager's staffing and organizational plan, including filling of key vacancies; and (v) any such other priorities as the City Commission may establish from time to time. RP/ag EXHIBIT A Resolutions- R7 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Rafael A. Paz,Acting City Attorney DATE: May 12, 2021 9:00 a.m. SUBJECT: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 ALINA T. HUDAK, TO PROVIDE FOR THE TERMS AND CONDITIONS OF THE CITY MANAGER'S EMPLOYMENT, FOR A TERM OF UP TO FOUR (4) YEARS, COMMENCING AS OF APRIL 21, 2021,AND EXPIRING ON APRIL 20, 2025, UNLESS TERMINATED EARLIER BY EITHER PARTY IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT. ANALYSIS See attached Commission Memorandum. SUPPORTING SURVEY DATA N/A Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Legislative Tracking Office of the City Attorney ATTACHMENTS: Description o Commission Memorandum o Resolution Page 451 of 859 D Exhibit A- CM Alina T. Hudak Employment Agreement Page 452 of 859 M. I /\M1 B E A C H City of Miami Beach, 1700 Convention Center Drive,Miami Beach,FL 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Rafael A. Paz, Acting City Attorney DATE: May 12, 2021 SUBJECT: 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 ALINA T. HUDAK, TO PROVIDE FOR THE TERMS AND CONDITIONS OF THE CITY MANAGER'S EMPLOYMENT, FOR A TERM OF UP TO FOUR(4)YEARS,COMMENCING AS OF APRIL 21, 2021, AND EXPIRING ON APRIL 20, 2025, UNLESS TERMINATED EARLIER BY EITHER PARTY IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT. On April 21, 2021, the Mayor and City Commission appointed Aline T. Hudak as City Manager of the City of Miami Beach, effective immediately. At that meeting, the City Commission directed the City Attorney to negotiate the terms for the proposed Employment Agreement with the City Manager, and to meet with Commissioner Arriola, as Chair of the Finance and Economic Resiliency Committee ("Finance Committee"), to review the proposed terms. Once adopted, the employment agreement would be retroactive to the April 21, 2021 date of the City Manager's appointment. The proposed Employment Agreement is attached hereto as Exhibit"A." The terms and conditions of the proposed Employment Agreement are summarized in the chart below, which includes a side-by-side comparison of the employment terms currently provided to City Attorney Raul J. Aguila, and the most recent employment terms provided to former City Manager Jimmy Morales. As shown below, the proposed compensation and terms of employment for City Manager Alina T. Hudak are consistent with the compensation the City has previously provided to both the City Manager and City Attorney. On April 30, 2021, Acting City Attorney and City Manager Hudak met with Commissioner Arriola,the Finance Committee Chair,to review the proposed terms. Following review of the proposed terms, Commissioner Arriola advised that the proposed terms are,fair and commensurate with the City Manager's experience and the responsibilities of the position of City Manager. Page 453 of 859 Commission Memorandum—Alina T.Hudak Employment Agreement May 12,2021 Page 2 The terms are summarized below: Raul Aguila Contract J.Morales 2019 Contract Aline T.Hudak's Proposed Terms Term Most recent extension was in Up to 4 years,terminable at Up to 4 years,terminable at May,2018,for 3 years and 10 any time and subject to annual any time and subject to months through March 31, evaluation annual evaluation 2022 final retirement date Base Salary 5324,418(2021) 5305,736.60 $320,000• • 'This salary is comparable to salary for City of Miami Manager. 457 Deferred Comp $26,000 per year 325,000 per year,subject to $26,000,subject to automatic Plan automatic annual increase to annual increase to maximum maximum amount permitted by amount permitted by law law IRA contribution $7,000 $7,000,subject to automatic $7,000,subject to automatic annual increase to maximum annual increase to maximum amount permitted by law amount permitted by law City Offered City to pay premiums for City to pay premiums for City to pay premiums for Life, Insurance Medical,Dental,Life Medical,Dental,Life,and Supplemental life,Short Term Supplemental life, Long-term care insurance for Disability,Long-Term Disability, Short Term Disability,and City Manager and dependents and Long Term Care Long Term Disability City Manager will decline Medical/Dental coverage in FY2021 ($45,052 value for family premium PPO coverage).City Manager may elect to join City health plan during open enrollment each year,with City to pay premiums for City Manager/dependents Annual leave Same as general employees Same as general employees, Same as general employees; plus accrual of 120 additional plus accrual of 120 additional Cap of accrued leave at 650 hours of annual leave per year hours of annual leave per year hours Cap at 500 hours,same as Cap at 500 hours,same as general employees general employees Vehicle allowance $800 per month $800 per month $800 per month Separation Benefits 12 weeks 12 weeks Separation Payment, 12 weeks Separation Payment, at Expiration of plus Medical and Dental for plus Medical and Dental for City Agreement(i.e.non- Morales and dependents for Manager and dependents for renewal at end of 4- one year one year(if CM elects to join year term) plan). The Separation Payments will cease if the CM finds altemate employment Page 454 of 859 Commission Memorandum—Alina T. Hudak Employment Agreement May 12,2021 Page 3 Raul Aguila Contract J.Morales 2019 Contract Anna T.Hudak's Proposed Terms during the 12 week period following her departure. Termination May be terminated by the City May be terminated by the City May be terminated by the City Commission at any time,with Commission at any time,with Commission at any time,with or without cause or without Cause. or without Cause. However,achievement of However,achievement of annual performance annual performance benchmarks shall impact benchmarks shall impact eligibility for bonus only,and eligibility for bonus only,and shall not constitute a basis for shall not constitute a basis for termination for Cause. termination for Cause. Separation Payment 20 weeks Separation Payment 20 weeks Separation Payment, 20 weeks Separation Payment if Termination plus Medical and Dental for (the same severance provided Without Cause Morales and dependents for to all other Charter officers), one year plus Medical and Dental for City Manager and dependents(if CM elects to join plan). Separation Payment None None None if Termination for Cause Termination by City City Attorney may terminate If Manager terminates with 90 If Manager terminates with 90 Manager upon 90 days prior written days'notice: 12 weeks days'notice: 12 weeks notice. No Separation Separation Payment,plus Separation Payment,plus Payment due if City Attorney Medical and Dental for Morales Medical and Dental for Morales elects to terminate. and dependents for one year and dependents for one year. If Manager terminates on less If Manager terminates on less than 90 days'notice,no than 90 days'notice,no Separation Payment. Separation Payment. Annual Annual Performance Mandatory annual review,with Mandatory annual review,with EvaluationlGoals Evaluation(30 days after May agreed-upon goals and agreed-upon goals and 16th) performance measures,with performance measures,and potential bonus up to 10%of potential bonus up to 10%of base salary base salary. City Manager Hudak proposes for goals to be established separately following Commission retreat/workshop in next 3-4 months and incorporated by amendment. TOTAL $394,741.38• $394,824.60 $372,413.20' COMPENSATION PACKAGE: 'The City's contribution to the •The City's contribution to the 'The City's contribution to the plan is actuarially determined plan is actuarially determined plan is actuarially determined for the plan to maintain benefits for the plan to maintain for the plan to maintain benefits for the entire plan each year. benefits for the entire plan for the entire plan each year. each year. Page 455 of 859 Commission Memorandum-Aline T. Hudak Employment Agreement May 12,2021 Page 4 In addition, consistent with City Manager Jimmy Morales's contract, the proposed Employment Agreement provides for a mandatory annual review of the City Manager's performance, and establishes a framework for assigning specific goals and priority objectives to the City Manager. To this end, the goals and objectives assigned to City Manager Morales, which were first developed in 2018, with a minor amendment in March, 2019, serve as a useful starting point. However, those goals and objectives need to be updated to reflect the current environment, as many of the City's current priorities, including public safety or post-COVID recovery and other initiatives, are simply not reflected in Jimmy Morales' 2018 performance objectives. Accordingly, because the priority goals and objectives of the City Manager need to be updated by the City Commission, in consultation with City Manager Hudak, the Agreement provides that the goals shall be adopted as soon as possible in the next 3-4 months (ideally, following a Commission workshop or retreat), and memorialized as an amendment to this Agreement. Until such time as the City Commission and Alina Hudak jointly establish such agreed-upon goals and priority objectives, Aline Hudak's immediate priorities shall focus upon (i)the continuation of the City's COVID-19 efforts, including post-COVID economic recovery; (ii)the continuation of City's ongoing public safety efforts, including during High Impact weekends such as Memorial Day weekend; (iii) City's FY2022 budget process; (iv)the City Manager's staffing and organizational plan, including filling of key vacancies; and (v)any such other priorities as the City Commission may establish from time to time. RP/ag Page 456 of 859