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2019-08-06 Ex 17 CITY OF OKEECHOBEE 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 Phone: (863)763-3372 www.cityofokeechobee.com Okeechobee City Council Mayor Dowling R. Watford, Jr. Wes Abney Monica Clark Bob Jarriel Bobby Keefe ______________________________________________________________________ MEMORANDUM TO: Mayor Watford and City Council FROM: Marcos Montes De Oca, P.E., City Administrator Re: City Administrator Supplemental Salary Comparison Data & Key Points DATE: June 26, 2019 Revised; July 23, 2019 ______________________________________________________________________ Please add the following updated supplemental information for the August 6th, 2019 City Council Meeting. The corresponding Administration contract will be presented at the meeting as an exhibit, previously reviewed for Legal sufficiency. Based upon the 2017 League of Cities data for city administrators I have compiled the following in support of my salary increase for the upcoming contract. I have sorted the data in sever al ways to ensure questions are answered in both the local, regional and state levels to ensure completeness. Please note, locally in the Lake Okeechobee area, new appointments and/or raises have been given, but not included in this data set. State of Florida Level Overage state average for all cities - populations 8 to 467,872 = $117,942.52 Average city administrator in cities populations 4500 to 6500 = $122,152.43 Regionally with Treasure Coast Average Salary in Treasure Coast none-removed = $130,981.79 Same as above with Moore Haven and Belle Glade removed (low / high) = $123,727.24 Locally with areas in Heartland and Surrounding Lake Okeechobee Average salary none-removed = $136,475.00 Same as above with Moore Haven and Belle Glade removed (low / high) = $112,950.00 All above numbers are 2017 averages, correcting for 2019-2020 is approximately 5% in addition and does not include recent positions or new hires. Proposed salary is approximately under state average and consistent with local area, n ot including engineering services I currently provide. Key items for contract renewal: - Acceptance of this Agreement will result in a savings of over $130,000 in professional service expenses for the 2019-2020 budget. Additional savings are anticipated to be greater in the upcoming years with increased economic development and review requirements. - City is operating within its budget operationally without use of reserves, first time in over a decade. Budget year 2017-2018 – Approximately $160k above our revenues in operation. - Saved approximately $75k-$80k on Construction plan preparation, engineering consulting and engineering construction oversite, not including day to day repair items and upcoming plans. Review of all TRC items from drainage and engineering perspective without separate contract or Planning review Sub-Contract annually. - Current preparation of budget that would be largest voluntary millage drop in over 20 years. - Changed investment usage of our reserve to now provide a revenue of at least $125,000 per year - Provided leadership and community relationship to promote growth, diversity and a more economic sustainable mentality for the community through policy development and involvement. - Cohesive relationship with County from not only administration but to all departments from Public Works, Fire, but also Police Department. - Involvement and familiar working relationships with our local, state and federal level elected officials as well as FDOT, SFWMD and FDEP. - Numerous projects to bring city “up to date” from computers, to dispatch to our developmental philosophies to increase revenues and providing more city amenities. - City has worked with other agencies to secure approximately $2M in grants and facilities. - Worked with FDOT and State elected officials to have signal approved at North 9th, to be funded fully by FDOT. - Involvement into the community through projects and volunteering this is my community too. - As based upon the date provided by the FL League of Cities, salary will be below average for like service without the additional engineering reviews and construction plan preparation. Over 10% lower than the average salaries for communities around the lake as of 2 years ago. - City of Okeechobee is now part of Competitive Florida for potential funding opportunities and economic growth to promote diversity and resiliency of our community. 2017 Data Populations from 4500 – 6500 Municipality County Population Salary Flagler Beach Flagler,Volusia 4,685 $120,000.00 Davenport Polk 4,946 $85,000.00 Belleview Marion 4,979 $112,785.00 Wauchula Hardee 5,172 $100,610.00 South Bay Palm Beach 5,215 $107,900.00 Indiantown Martin 5,457 $125,000.00 DeFuniak Springs Walton 5,471 $80,000.00 Fellsmere Indian River 5,483 $140,600.00 Starke Bradford 5,520 $70,000.00 Okeechobee Okeechobee 5,566 $87,721.66 Mascotte Lake 5,623 $118,102.00 Tequesta Palm Beach 5,731 $190,858.00 Fort Meade Polk 5,736 $100,000.00 Surfside Miami-Dade 5,814 $169,744.00 Bay Harbor Islands Miami-Dade 5,826 $172,578.90 Pahokee Palm Beach 5,889 $118,000.00 Lake Alfred Polk 5,903 $107,145.00 Newberry Alachua 5,907 $114,109.00 High Springs Alachua 6,023 $90,000.00 Lauderdale-By-The-Sea Broward 6,175 $168,000.00 Islamorada, Village of Islands Monroe 6,326 $146,450.00 Fort Myers Beach Lee 6,328 $162,750.00 2017 Data Regional and Lake Okeechobee Area Municipality County Population Salary Indiantown Martin 5,457 $125,000.00 Sewall's Point Martin 2,044 $102,000.00 Stuart Martin 16,183 $137,500.00 Belle Glade Palm Beach 17,290 $235,000.00 Pahokee Palm Beach 5,889 $118,000.00 South Bay Palm Beach 5,215 $107,900.00 Port St. Lucie St Lucie 181,284 $199,120.22 Clewiston Hendry 7,659 $104,563.68 Sebring Highlands 10,993 $95,734.00 Moore Haven Glades 1,747 $85,000.00 Page 1 of 8 CITY OF OKEECHOBEE, FLORIDA CITY ADMINISTRATOR EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT, (hereinafter referred to as “Agreement”), is by and between the City of Okeechobee, Florida, (hereinafter referred to as “CITY”) a Municipal Corporation existing under the laws of the State of Florida, whose address is 55 Southeast 3rd Avenue, Okeechobee, Florida 34974; and MARCOS MONTES DE OCA, hereinafter referred to as “CITY ADMINISTRATOR”, whose address on the date of execution is: 2001 SW 8th Street, Okeechobee, Florida 34974, and whose mailing address is PO Box 1001, Okeechobee, FL 34973. W I T N E S S E T H: WHEREAS, the CITY desires to employ MARCOS MONTES DE OCA as CITY ADMINISTRATOR, as provided for in the Code of Ordinances for the CITY; and WHEREAS, the CITY, through the City Council, desires to provide certain benefits and compensation, to establish certain conditions of employment, and to set working conditions applicable of the CITY ADMINISTRATOR; and WHEREAS, MARCOS MONTES DE OCA desires to accept the employment offer to serve as CITY ADMINISTRATOR; and WHEREAS, the CITY and CITY ADMINISTRATOR have negotiated the terms of said employment which are set forth herein. NOW, THEREFORE, in consideration of the mutual covenants and consideration herein contained, the CITY and the CITY ADMINISTRATOR hereby agree as follows: SECTION 1: EMPLOYMENT A. The CITY hereby hires and appoints MARCOS MONTES DE OCA as its CITY ADMINISTRATOR, under the terms established herein, to perform the duties and functions specified in the CITY’S Charter, Code of Ordinances, Personnel Policies and Procedures, and other controlling la w, and to perform other legally permissible and proper duties and functions as the City Council shall from time to time assign. Considering this, MARCOS MONTES DE OCA agrees to accept and to diligently perform such duties. SECTION 2: EFFECTIVE DATE This Agreement shall be effective as of October 1, 2019. Page 2 of 8 SECTION 3: TERM A. The initial term of this Agreement shall commence on the effective date as provided in Section 2 herein, and be for a period of five (5) years, unless renewed as provided herein below, or terminated as provided in Section 10 herein. B. This Agreement may renew for a period of five (5) years after the initial term, upon majority vote of the City Council or extended with approvals of both parties within the contract period. C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the CITY to terminate the services of the CITY ADMINISTRATOR at any time, subject only to the provision set forth in this Agreement and in the City Code of Ordinances. D. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the CITY ADMINISTRATOR to resign at any time from the position of CITY ADMINISTRATOR subject only to the provision set forth in this Agreement. SECTION 4: SALARY AND EVALUATION A. For the performance of services pursuant to this Agreement, the CITY agrees to pay the CITY ADMINISTRATOR an annual base salary of as per the table below based upon each year under this agreement , payable in installments at the same time as other CITY employees are paid, subject to standard tax and benefit deductions. Year 1 - City Fiscal Year 2019 - 2020 $113,000 Year 2 - City Fiscal Year 2020 - 2021 $117,500 Year 3 - City Fiscal Year 2021 - 2022 $120,500 Year 4 - City Fiscal Year 2022 - 2023 $122,500 Year 5 - City Fiscal Year 2023 - 2024 $125,500 B. The CITY ADMINISTRATOR is subject to an evaluation of their performance at least once annually, to be completed by the City Council by June 1 of each year. C. Upon the annual employment anniversary date, and receiving a satisfactory evaluation score, the CITY ADMINISTRATOR shall be entitled to a longevity salary increase as provided for all other full-time employees. D. The City Council, in its sole discretion upon receipt of an unsatisfactory evaluation, may extend to the CITY ADMINISTRATOR a period of sixty (60) days to improve their performance prior to terminating this contract for cause. E. The CITY ADMINISTRATOR is entitled to receive any annual across the board and/or cost of living salary increases that may be approved by the City Council as provided for all other full-time employees. Page 3 of 8 F. Nothing in this Section shall require the CITY to increase the base salary or other benefits of the CITY ADMINISTRATOR. Furthermore, the City’s failure to conduct any of the scheduled evaluations shall not constitute non-compliance with a material provision of this Agreement. SECTION 5: DUTIES AND OBLIGATIONS. A. The CITY ADMINISTRATOR shall have the duties, responsibilities and powers of said office as provided in the Code of Ordinances, and Job Description, Attached hereto as Exhibit 1. The CITY ADMINISTRATOR agrees to perform all duties and responsibilities faithfully, industriously, and to the best of their ability and in a professional and competent manner. Further agrees and understands they are to attend all City Council Meetings and Workshops, preside as Chair over the Technical Review Committee meetings, and attend Planning Board/Board of Adjustment/Design Review Committee meetings (as necessity requires), as well as others that are appointed by the City Council from time to time . B. The CITY ADMINISTRATOR agrees that they are properly classified as Exempt for purposes of the Federal Fair Labor Standards Act. It is recognized that the CITY ADMINISTRATOR will frequently work hours outside the normal work day, of 8:00 a.m. to 4:30 p.m., but “full-time” employment as used in this Agreement means a minimum of a 40-hour week, and the normal hours of t he CITY ADMINISTRATOR will be from 8:00 a.m. to 4:30 p.m. Monday through Friday. C. The CITY ADMINISTRATOR and the CITY agree that in all events, the CITY ADMINISTRATOR shall devote such time as necessary to competently and professionally undertake and complete their duties, which may include being called out after hours or on weekends for emergency situations. D. The CITY ADMINISTRATOR shall be a full-time employee of the CITY and shall devote all such time, attention, knowledge and skills necessary to faithfully perform their duties under this Agreement. The CITY ADMINISTRATOR may, however, engage in educational, lecturing and professional activities and other employment activities upon receipt of approval by the City Council, provided that such activities or employment do not create a conflict of interest with the CITY or it officials. A “conflict of interest” shall be defined as set forth in Chapter 112, Florida Statutes, as a violation of CITY policies, or as any employment, consultant work, or other professional activity that will be inconsistent with the duties of CITY ADMINISTRATOR, or that is contrary to the interests of the CITY. E. In the event the CITY ADMINISTRATOR shall serve on any appointed boards or elected boards of any professional organization, or serve on any committees related to their professional activities, in the event any monies are paid, or gifts received, by the CITY ADMINISTRATOR related to such service, such money or property shall be paid over to or delivered to the CITY, unles s otherwise reported or provided by the State of Florida Ethics Laws on gifts. Page 4 of 8 F. The CITY recognizes the desirability of representation in and before local civil and other organizations, and encourages the CITY ADMINISTRATOR to participate in these organizations to foster a continuing awareness of the CITY’S activities as well as the community’s attitudes and ideas. G. The CITY recognizes that the CITY ADMINISTRATOR is a licensed professional engineer (PE 63897) in the State of Florida, and owns a private firm engaged in that work, MDO Engineering, Inc. While employed at the CITY, the CITY ADMINISTRATOR shall not perform engineering services as MDO Engineering Inc. for private clients during normal work hours while at the CITY. If engaged in engineering services for private clients, that work shall not conflict with the role of CITY ADMINISTRATOR at the CITY, nor shall such engineering services, plans or certifications be placed before any citizen boards at the CITY for plan approval. This provision shall not prevent CITY ADMINISTRATOR from performing engineering services for the benefit of a project on behalf of the CITY, but such engineering services shall be provided to CITY without additional compensation other than that set out herein. H. In as much as CITY ADMINISTRATOR will be an active full member of International City/County Management Association (ICMA), the “Code of Ethics” promulgated by ICMA, as well as the provisions of the Florida Commission on Ethics are incorporated herein, and by this reference made a part hereof. CITY ADMINISTRATOR shall follow these principles to govern his conduct and actions as CITY ADMINISTRATOR at all times. Further, CITY ADMINISTRATOR shall familiarize himself with other applicab le laws in Florida that may concern his actions and conduct, including but not limited to Sunshine laws and laws concerning receipt of gifts. SECTION 6: BENEFITS. A. All benefits available to every employee as set out in the Personnel Policies and Procedures Employee Benefits and Leave Benefits Chapters as written, or as from time to time amended by the City Council. 1. Annual Leave – CITY ADMINISTRATOR shall accrue 10.7 hours per month of annual leave per year, accrued in accordance with CITY policy. B. The CITY shall provide in its sole discretion a suitable late model automobile for the use by the CITY ADMINISTRATOR to conduct CITY business, which shall include insurance, maintenance, and fuel. Said vehicle may be used by the CITY ADMINISTRATOR for travel to and from their Okeechobee residence, all CITY business and travel as required to perform their duties, including use to seminars, training, conventions, meetings with CITY consultants and other locations and/or events deemed appropriate by the CITY AD MINISTRATOR. C. The CITY ADMINISTRATOR shall be provided an office, and clerical support and such other facilities and supplies suitable to the position, and adequate for the performance of all required duties. Page 5 of 8 D. The CITY shall provide the CITY ADMINISTRATOR with a cellular phone allowance of $100.00 per month to compensate them for the business use on their personal cellular phone. E. The CITY agrees to provide the CITY ADMINISTRATOR annual health, long term disability and life insurance, which does not include coverage for spouse or dependents, but which may be obtained at additional cost to the CITY ADMINISTRATOR should it be selected. Such coverage will be effective upon employment. F. The CITY agrees to pay the professional dues for membership of the CITY ADMINISTRATOR to the Florida League of Cities, the Florida City and County Managers Association (FCCMA); ICMA; and Florida Engineering Society (FES). The CITY shall pay other dues and subscriptions on behalf of the CITY ADMINISTRATOR as are approved in the CITY’S annual budget (on a line item basis) or as authorized separately by the City Council. G. The CITY ADMINISTRATOR is entitled and encouraged to participate in such General Employees Pension Plan as may be in effect within the CITY or as amended. Alternatively, the CITY ADMINISTRATOR may elect to seek to join a deferred compensation plan, such as the International City Management Association Retirement Corporation (ICMA-RC) plan, which satisfies Federal Internal Revenue Service deferred compensation plan requirements. If the CITY ADMINISTRATOR desires to join such a deferred compensation plan or other qualifying plan, upon reasonable right of review and approval by the C ITY which shall not unreasonably be withheld, the CITY shall pay into such plan the sa me amount or percentage as the CITY would pay into the CITY ADMINISTRATOR’S General Employee Pension Plan by payment of such amount into a deferred compensation plan, this negates the CITY’S responsibility to pay into the General Employee Pension Plan. H. The CITY ADMINISTRATOR is entitled to attend, without prior approval of the CITY, all Florida League of Cities annual convention/meetings; ICMA meetings; FCCMA meetings; FES meetings, and other similar professional meetings, located within the State of Florida. Any out of State meetings must be approved by the City Council in advance. All payments made under this section shall be on a reimbursable basis; provided that receipts and other sufficient documentation have been submitted to the CITY. Mileage, meals and hotel reimbursement shall be at the rate consistent with Section 112.061 Florida Statutes. SECTION 7: INDEMNITY. The CITY agrees to indemnify, defend and hold harmless CITY ADMINISTRATOR from any and all claims that may arise out of CITY ADMINISTRATOR’S employment with CITY acting in his role as CITY ADMINISTRATOR; Provided that he is acting within the scope, terms and conditions of his employment. While acting in that capacity, the CITY shall provide insurance coverage to protect and defend CITY ADMINISTRATOR from Page 6 of 8 and against tort, professional liability claims, including for engineering services provided to the CITY, claims of demand or other legal action, whether groundless or otherwise, which arises out of an alleged act or omission occurring in the performance of CITY ADMINISTRATOR duties, unless he acted in bad faith with malicious purpose, or in a manner which exhibits wanton and willful disregard of human rights, safety or property. That CITY shall not be responsible or liable for t he acts or omissions of CITY ADMINISTRATOR committed while acting outside the course and scope of his agreed duties and job description, or any services provided to CITY as a professional engineer. In such instance, CITY ADMINISTRATOR shall reimburse the CITY for any legal fees and expenses incurred for or on his behalf, in connection with the charged conduct. That all of these mutual obligations shall extend beyond the termination of his employment at CITY so long as the claim arose while employed. The CITY may compromise and settle any such claim or suit, without consent or further involvement of CITY ADMINISTRATOR. Nothing herein shall be construed to be a waiver or extension of the sovereign immunity limitations of liability possessed by CITY by state or federal law. SECTION 8: RESIDENCE. As a condition to this employment, the CITY ADMINISTRATOR shall maintain his primary residence within Okeechobee County, Florida. SECTION 9: TERMINATION AND SEVERANCE. A. This contract of employment contemplates that the term of employment is for 5 years, and that either party may elect to not renew the term of employment by providing ninety (90) days’ notice prior to the ending date of the contract. In the event the CITY were to terminate employment of the CITY ADMINISTRATOR at any other time during the contract period without cause, the CITY ADMINISTRATOR shall be entitled to receive severance pay, which shall be: Severance pay shall be ninety (90) days of CITY ADMINISTRATOR base annual salary, 100 percent of accrued annual leave up to 240.0 hours, and 100 percent of accrued sick leave. In the event the CITY ADMINISTRATOR is terminated for cause; leaves employment in violation of the notice requirements of this contract; or there is not a renewal of the contract, then all rights to severance pay (minus the accrued annual and sick leave above) are forfeited. All other accrued and unused benefits shall be paid to the CITY ADMINISTRATOR regardless of the manner of separation, as previously set forth. The City Council reserves the right to waive strict compliance to this section upon just cause, as determined solely within the discretion of the City Council with pay, however all accrued earned benefits during employment as well and vested pension are to remain intact. Page 7 of 8 B. This Agreement may be terminated by the CITY at any time for cause upon 3/5 affirmative vote of the City Council. The term “cause” shall be defined from time to time as set forth under then current Florida law; and may include, but not be limited to, a violation of any duty or contractual agreement set forth herein, any ground set forth in the Personnel Policies and Procedures Employee Relations Chapter, and in all events the failure of the CITY ADMINISTRATOR to perform any of the duties as provided and required by this agreement. Termination without cause shall require a 4/5 affirmative vote of the City Council, as provided by ordinance. C. Upon a termination for cause or without cause, the employment shall be considered terminated as of the time of the vote, and no further notice of intent to terminate shall be required to be provided to the CITY ADMINISTRATOR. D. In the event of termination for cause, the CITY ADMINISTRATOR shall receive no severance or dismissal benefit or any other benefit other than earned and unused annual or compensation as permitted for unused sick leave or annual leave as set out in the Personnel Policies and Procedures Leave Benefits Chapter as written or hereafter as amended. E. The CITY shall have the right for cause as defined, to suspend the CITY ADMINISTRATOR with or without pay, for his actions or inactions. Additional grounds for suspension shall include arrest or information against the CITY ADMINISTRATOR charging them with a felony, or any other crime involving moral turpitude. The decision to suspend the length of suspension may be solely and immediately by the Mayor, but shall be affirmed or denied by majority vote of the City Council at the next regular meeting or a special meeting. SECTION 11: GENERAL PROVISIONS A. If any article or part thereof contained herein is held to be unconstitutional, invalid, or unenforceable, it shall be deemed severable, and the remainder of this Agreement shall not be affected and shall remain in full force and effect. B. The foregoing sets out the full understanding of the parties, subsumes any and all oral understandings or representations of the parties, and shall not be hereafter altered or amended except by further written agreement signed by all parties. C. The CITY ADMINISTRATOR expressly acknowledges that they have read and voluntarily signed this Agreement, and agrees that no oral agreements or representations; other written promises; side agreements or assurances or other inducements have been made by the CITY, its officials, employe es or agents, other than what is specifically contained within the four corners of this written Employment Service Agreement. Further, the CITY ADMINISTRATOR acknowledges that this Agreement has been fully reviewed by him; that it is completely understood; that he has consulted with private counsel or had the opportunity to do so and voluntarily opt not to do so. Page 8 of 8 D. The parties hereto mutually renounce any rights or claim they may have against the other by agreement or by any statute to claim or collect attor ney’s fees from the other for claims or litigation arising out of the interpretation or enforcement of this Agreement. E. This Agreement shall be construed according to the laws of the State of Florida; and for any claim, action or suit, the parties stipulate that venue therefore shall be at all times Okeechobee County, Florida. F. The CITY ADMINISTRATOR understands and agrees, that for any decision permitted herein by the CITY as it pertains to the performance, suspension, or continued employment of the CITY ADMINISTRATOR, it is strictly and absolutely within the sole complete discretion of the City Council, and that CITY ADMINISTRATOR covenants and agrees that he absolutely waives, and shall not challenge the exercise of such discretion in any claim, demand, action, suit or proceedings brought by the CITY due to such decision. IN WITNESS THEREOF, the parties have made and executed this Agreement of the respective dates under such signature below, including that of the City of Okeechobee, Florida, acting by and through its City Council, and Mayor who is authorized to execute this agreement on behalf of the CITY, as attested by the City Clerk. As to the CITY: As to the CITY ADMINISTRATOR: ___________________________ ________________________________ Dowling R. Watford Jr., Mayor Marcos Montes De Oca, P.E. ATTEST: Date:____________________________ ____________________________ Lane Gamiotea, CMC, City Clerk REVIEWED FOR LEGAL SUFFICIENCY: _________________________________ John R. Cook, City Attorney Approved by City Council: ______________________________