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Memo This document contains time-sensitive information. Please read
_ immediately and respond as specified.
�-�'_.:
��`
To Mayor and Village Councilmembers
From Kim Bodiniuo, Human Resources Coordinator����
Date/Time February 5,2002
` -` Subject Employment Contract Agreement Between Michaef Re
`� Couzzo,jr.And the Village of Tequesta; Special Village
- Council Meeting Agenda Item
�_�.
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`yv��=t=' For your consideration, attached is the draft Employment Agreement
��_5�,,:.:
4 ;,� _ between Michael R. Couuo, Jr. and the Village of Tequesta. As you
'"` know, the current Employment Agreement with Mr. Couzzo was
reviewed and evaluated by the Village Labor Attorney, Edward G.
Guedes (see attached Memo regarding his evaluation). The attached
draft Employment Agreement has been revised to incorporate the
changes recommended by Mr. Guedes.
Thank you.
/krb
Attachments
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EMrY,()'Y'lY1�N'I"A�RE�,MCIVT�ETW��:iV
M1�HAEI.,l�. COUZ�O,,T�i,
AND
TH��JII�Lt��E OF TEQUY+:S'1'11, FLOR�D,A
This .E1�reere,ent, �taade aud eni.ered into thas day of�� , 2002, by a»ci
bctvorceci the Village of'd'�questa, Florida, a municipal corporatic>n, hereynafter calfed the "\lilla�;c",
and Micha�l T�„ Couzzo, Jr., an is�div�d�ial,hereinafter c�llcd"Employee°',both�f r�vhn�n undcrstand
�s fc�ll�w�:
W�-�ERFAS,thc Villa�;�desir�s t��rnp�py tlie services of 1V(iChael Tt. Cou�c),Jr.(���ployc:e)
a� ili�la�;e Managei° of the t/illa�e ��"Cequesta as provid�cl by appropriate Cl�a.rt�r, slatute �nc�
ord��aar�ce sectit�ns; and
'�Vi�li:�EA�, at is the d�s�re c�f the �iddagc C�ran�i! t� pr�vide ce�•lair� bencfits a�gd �stzbl�sh
c�Jicii�m�ns c�f ed�nploymcd�t; arid
�V�ERF,AS, thc Village seeks to provide in�uccment f�r ��nployc� to remain ili sucl�
employi�lent and rrialce possible full�c�rk productivity by �ssuring�mployee's tnoralc and�eace of
rnind with r�s3�cct to futtrre security, t� aet as a deterre�it against malfeasance or disho���sty !'s�r
persnnal gain on the p�trt of thc�mpioyee; and to provide a just mea.ns for terzninating Err�playec's
scivices at such time as hc may be unable futly to discharge his duties or whcn the`Till��;e may desire
tc� c�the�v��e tcrniinate his etx�playme�t; �r�d
WI-IEREAS, �mployee desires to a�cept empl�ymec9t�s�illa.�e M�raager of th� °,lilla�e of
TequBsta,
N�1Jt�,Ti1�REFQ�E, aiz�ons�deration ofthe mu�ua9 cove��ants herei�z coutained, th�parties
hcrcto a�ree as fnitows:
SECTION 1. I)UTiES
�li�l��c hcreby agrees to emplpy FinpIoyee as ViIlage Manager of thc Vi(tage ta perf��•�r� �he
functions and duties spccified in the Village Cha�ter, st�,te statutes 1nd ordinanc�s ��ld t� p�rfc�z-m
such other leg�)ly permissible and proper duties and functitrns as thc Village�ouncil sh�il frc��r�ti�ne
to ti'ne�ssibn,
SECT(QN 2. T�RM
This agre�ment and alI of its terms and provisions, sh�lI have an effective dat� of .,�,`,
2002, and shall expire on _ _� 2Q0 . Nothing in this Agreernent shall prevent, lirr,it or
otllerwis�interfere with the right�f the�lilla�e Council�o t�rmi„a.tc the services of�:�ipioy��at�hc
wi11 uf the 'Vi11a,�e Ce�uncil, without cause, �,t any time, subje�� only to the pt�visic�n� set f�i•th ia�
Scction 3 o�this A�reca�i�nt.
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Nathii�� in this Agreernent shall prevent, ]imit or c�therwise interferc with the ri�;l-�t of t1�e
F'�playcc to resi�at an�time from his p�sition vvith the V�llag�, sut�j�ct to i:he provisit'ns set fi�rth
in Seclic�n 3 �fthi� Agreement.
lii�ployce aga•ees to zer�rain ii� tlie �xclusive emPloy �f thc Villabe and shQ�ll not UccQtne
c�taploycd by any other employer unless rasignatia1 or tenninatian is ef�'ected as hercinafl.er provi�ieci,
Tlie prohibitipn against outside employment shall not be construed t� incJu�e occasio��al teach�iag,
�vriting ps consultin� performed on �mployc�'s tirne afF. However, iil rio event eh�tll k�.mploy�e's
otatside employYt�ent interfer� with c�r othenvise hin�i�r the perfoamance c)f his d�tics as Villa�;e
1Viduiagci°or refl�ct g,00rly upon thc r��rsi�or reputatio�n of thc Villa�e.
, SC�:T[QN 3, °TERIVI�NA'I°i�N AND �FV�1[�ANCE PAY
,
Tn thc e�ent E�nplayee is tercrii�n�ted b�#h�V'illa�e Cou�neil bePc�re expiration of the afor�'�aid
t�i-s�r�ofempit�yment and durin�such time tlit�t�mp�oyee is willing and abte tc�perf'�r�thc duti oi'
Vilta�;e Mlnagcr9 t}iei�and in that event tlte Villag�agrees to pay�mployee a lump s�m cash pay� ee�t
equal to six (6} ��oi�ths aggrc��t� s�ary ("Severancc Paynlent"), and slizlt cont�nue Employ c's
other benefits provit�cd her�u�nder�'t�r th�� six-month periad is�mediatcly f�llowing terrnii�ation. In
' the event Lmployee is re-em�loyed during the sixanonth period immediately followin�ter�ni,�at oa�,
the Village's obligation to continue benefa#s shall ccase. Re-emptoyanent, huwev�r, will not a ect
Employee's entitlement t� the Severance Payment.
In the event, liovvev�r, th�t �mployc�i� terniinated f�r r�a�on5 rel�tia'� to anara! tuz��ittad�,
nlalfcas7nce or derel��tion of duty, ihen,in that evcnt, the Village shall h�ve iia obli�;at��n�o cnak tl,e
Sever�nce Payngcnt or continue benefits subsequent to tennination, except as may b�r�quired by 1 �v,
"I'lic Severance Payment,vacation, sick leave and ot�er accrued benefits i-ef�i•�nced in this a�a-ee er�t
s19a11 serve�s liquidatcd damages and sh�ll serve in the place and stead ofany claim Employee i ay
hlvc aoairist tiie Viil�.ge, its �fficers or representatives, directly or indi�•eciiy relatin� to his
termination.
ln l}le event the Villa�e at any time during the tez� of this a�;reement redu��s tlge sal� pi-
other fn�ncial bene�ts of Empioyee in a �reater percentage than �n applicable aerc��s�the-bo rd
reduction for all Vil�age employees, or in the event the Village refuses, foltowing v�rritten notiee tc,
com�ly with any otl�er provisions benefiting Ernployee hercit�, or the Employec resi�n�fc�livwii r a
su���stion, whe�her formal or informal,made by a majority of the Villagc Council ��x�ffici�.l s�ss�nn
that hc resign,then and in tYaat event, �mploycc ifiay at l�is option be deemed to be"tcrmisiatec3"a af
ttae date of such a•eductinn, refiisal to comply or resi�nation, wiahix�t1�e n�ea�ung and c�ntext af }�i�
severance pro�vision.
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��,�-Q�I-�'��� j�fl�� �j's;��' }�i�� �;=s ��ti; �s t?t1
In the ev�nt 'Emplcay�e v�lu��a►-it� resi�ns liis position�rith t�c Villa�;c l�cfor�expir�iior� o�'
thc t�rm of this ��recancnt, th�n�dnploycc shall givc the Vslla�;e six�y{GO)days' adv��7�;e notice fia�d
' rsl�;lq�yashes any and all ri�hts t� the s���ranee ben�fits prc,v�ded under this sect�oi�.
SEC'TI�N�. �ALAR1�
Be�irrnin� 1, 2002, Villag�agrees to pay��nployee for scrvices rendered pursuant
to thi;;A�reement an annual base sa)ary of$ . 1C�ployee's�.s�nual base�a�ary shall be paid
to �:'sit�ployee in equ�!inst�llt�cc�ts at t4�c sam�tim�other ea�ployees �f i�e ViIlage �.re p�zic�.
,A�i subsequ�nt provision�f�r aiu�ual cvalu�tion wit�pay inci•ease,if any, shall be det�rn,691ed
by the Villa�e Council. Cmployee shatl be enlil(ed to re�eive atl across-the-boarci increases�ra�it�to
other �mployees s�f the Village and hi� anna�al basc sa.lary shall bc adjusted accordin�ly. An an u�l
pe�-�ormatace eva(uatian of�mployee U�r the Village Cotancil is encauraged for #he benefit of thc;
V'i�l���c�nd�mployee and pay incre�.ses,if any,other ihan acr�ss the bc�ard ir�creases g;r�,nted tc�o tier
�mployccs as spc�ified herein, shall be tied tc� the performance evaluation. �xc�pt as specifi liy
pravicled f�r in thi� sectflon9 the �r�ntin�; of salasy incre�scs based os� Ernploy�e's Perfs�rmailce
evrxlu�tion is lef� excliasivcly to thc discretioaa of the Villag�Council.
S�C'i'1�N 5. YACATIQN
�mployee shall accumulate va�ation days i�t the same manner as other dcpartrrieait headv,
SEC'T1UIV b. AUTOMOBiL�
�ec�use employrr�ent r�quires twenty-foear(24)hour availabilily of a vehiG3e, the�lilla�;c h�ll
providc aa� aut�mobile allowance to Employee in the amount of$� per month for use �F tt�e
Em�loyee's personal vehicle. This£tgure inay bc rcviewred by the Village G�unci�periot�ically�nd
�djustcd �ccordiiie to the Bureau of Labor Statistics, S�utheast Regional Office, C�nsurryer I'riL�
Index. In addityo��t�t1,e above,the Empioyee sl�lt Ue compsnsated at the standard�ate approve�l vy
tlte Village Council for official velucle tisage for empioyer related trips i-cquired of the Villf�;�
Manager ou�side Palm BeactJMartin County areas. Said iiulea�e shall be compu�ed front ithc
�Y`lerrnoSt limits of t�e T�al�n ri�ach/Martin County areas to the tinat destin�i.tion pain�. �
SIFCTIDN 7. PRO�'ESSYON'AI. DEVELQPMENT
The Village agrees to provid��mployee the usual and necessary fianding ap�lic�blc for t�•avel
�nd subsistencc ncccssary for the Employee's professionat developmenl and for the good of tiie
Vitla�c. The Viltag� agrees to pay the mcmbcrship dues of the Internatinnal City 10�1ana�ers
Assoeiatipn, the F1or�da Caunty and City Managers Assaciation, and the�airn Beach Cour►ty C;ity
Managers Association. Villa�e specifically a�rees to budget and to pay for itie iravel and subsisten�e
relatiai�; to thc Anni�al Canference pf th� Tnternational City M�.�a�gers �ss�sciatiqn �nd th�Annua,l
Cpnf�rel'ce Qf tl�e f�lorid�.C'ity and Cuunly Mana�;ers A4soci�ti�c�, pursiia�at to the applicabl�irav�l
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��.�—��4—�`���`-' �'l��i ��<���j�a r�►"� �°f�a� l�Uo r', �.�'�
�7c�licies r�f thc Villa�e, if any. A,bsent �uiy Villa�;e iravel policy relatsvc to same, �uCh travell�id
sia�s�st�racc sh�1(be r�as�r�able as d�ter�n93��d by th��illage.
SE�"TI+Dl�1 Sa T1�T��I�AN"C�,
7'h�Village agrccs to provide hvspital�zatioai,life, major ir�edic�.11nd o�her reldtec��'7siiranc�
ft�r En�ployee znd make arr�ilable su�h covcrag;e for his dependents and Lo pay the pr�,nituijs thcrec�n
ira z n�atincr co�nparable tc� that which is provide�i fc�r all othcr Viila�e �„�ploy�es.
SF.G'�'YOl�' 9. 1NDEM11�IFiC.A,'�'YCDI�
!'he Village�hal3 defend, save harmless and inde�x�nify�,mployee against anytort,professi�nal
liahili�y cl�inn or dem�.nd, or other Iega1 action, whetlie�•groundless vr othcrwis�, arisi��g oirt of�n
�llcD�d act �r oanission or.currittg in the performaz�ce of Employee's duties as Vill��e Manage{� �s
prc�videc�by Chlrter and tha Village�t9de of Ordin�,nces arid in cbnnectioi�with wh�ch�mployee�vas
actitl�within t}ie seope of his duties as Villa�e Manager, The Vi11a�e Cauncil r�serves the i�i�}� to
sclect legal counsel �nd control the conduct�f Iitigation or other adversarial proccedings for wl ich
indemnif oation is ptovided Eiereunder, inch�din� setting the tenns of any sett(ement of suGh c! a�rs
incicmnified hereunder, In the evcnt that durin�t[�e defensc or subsequent to thc conclusiot� o�' ny
t�rt, pra�essionat lial�ility or pther claim asscrted agaiiist En�ployec �r arising fr�in E�nplfly e'�
cmplayment with the VilIage a court oFcompetent jurisdiction or other fact-finder deierrnines i�,t
Employee's conctuct was fraudulent,criminal or intentionally tortious,Emp(�yee Z�;recs to i•eimb�irs�
thc�illage for tF�e�osts of any defense provided hcrcunder.
SECTION 10, J��3 itL+'LATED EXP�NSLS �
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The Vil�a�e reco�nizes that certa�iz�expcnses of a non-personal and job r�lated natua•e, s�a�1z
as us� of Cmployee's personal cellula.r phone, long distaucc calls and faxes from home, nn-li»e
c��mpliter ti�ne for computcr locatad at home, software, attenda��ce at local government ane�tin�s,
job rclatcd publications, me�is, etc. are necessarily incurr�d by the Empioyee in accardance with�his
employment as Village M�nager. Therefore, EmplQyee sha71 receive a general e�cpcnse�,Itar�rance�f
� per mo�yth, payablc on the rirst day of each monlh, during his tci°m of employ�nent to cover
these ���d siiY�ilar expertses, Employce sha11 not be eutiticd to reimbursemei�t for ariy �xpez��cs
incurrcd over and above the$,^,_ allpwed as au cxpense allOwance. �niitlemenk tc'this �enea�al
expense allvwance shall cease uppn Employce's resignation or termination.
SECTI�N 1.1. �tETIREMEN'r �
The Vill�.�;e a�rees to esecute all necessary a�-eements provided by thc Internation�l C'i�y
Manaseca�ent Association-Retirement Corporation (�CMA-KC) for En,ploy�e's continueci
���rticipation in said ICMA-RC Rctircment plan. In addition to the base salary and otherbenefits paid '
by tlie Viila��to�mployee as described i��Sc�tion 3 of th;s,A.greemcnti, the�lillage agrees to pay an
�motmnt eqttal 1u six perc;ent(�i%)of Ernployee's�ranual Uase salary intv th�e r�MA�RC on Empioyee°s
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i���i�—�1'�—��iJ� ���i� �:i;:�r`,-� F'i'� �`;s�� ��(' �a l:��
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t��half �n equal pr�porti�nate amour�ls each pay period a�ad to t��ansfer c�tivnersliip to EmpJoyee upora
Esa�}�lt�ye�'s t�esi�xt�tios�ar discharge. Not�vithstand�ng this�►rovisioii,thc maximum C4��tributior' Ln
be paid by tlae�Jilda�;e unc��r this se��go�shall not �xe:e�d thc maximum alic�dved by lav�r.
'�'I1e�illagE shall also mak��o,�ti-ibutians on beh�lf of the Employee to the retir�er��n!pl�n i�
ei�'ec�G for�11 l/illage emplayees at�h�sa��e levets appDicable to general admin;strative emplc�yees and
��;rccs t�Li°aiisi`er p�vne�ship of stunc to Employee ttpon resi�n�tion or dischar�e.
S�C'TIOIeT 12. O`I'�i�1(��''�IZl��lS �ND COl��filt)1�15 DF E1V(P�.O`Y1Vd CN'I'
The �lillage �ouncil �hall fix such other tcrins and �onditi�ans of crnploym�i,t �s i� may
cietermine froixa time to time xel�ting to thc performanc:e of Employee, prc�vided such tca•iY�s anci
c�nditiocis ar�not inco►lsist�nt with or in conflict with the pr�visioras of this agreenaent, th�Cha�-ter
r�r a�iy �ther l�w,
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Ex�ept Z5 sl��aifically pr�vided herein, �mployee �h�ll �e s�Uject �u �11 prt�visi���s of tlte
V�lla�� �:h�rtcr and C:ode, as w�It �is re�a�(�t��ns a�ad rules �f th� �lill�ge relatln� t� sicic i�• ve,
f�$1SC;IIlSll� and pensi�l� s�stcm contributions, holidays, �nd r�ther fi-inge benefits �rad woi• 'r��;
cnnditioa�s as thcy naw exist or hereaftcr m�.y be a�nenr�ed
The'Villa�c shall bear the fiill c�si of any tideiity or other lbonds requir�d of the�anl�3t��ec
undcr any ordinance. �
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Tf ��iy provisiun or any portion thereaf cvntained in this A�;reernent is held to I be
1111CO11St11,ULi0dl3', 1P1Vi114t� O�'UACd1fOTC81�(8, th�reinainder of ibis�.�;reemcnt or porti�n thes�of' s �11
be deemesi sever�tblo and shall not b�affected a��d sh�ll remain in f�ll force�nd cffcct.
SEGTION 13. G�NF9�ICTS �F IN'Y'EREST
Err��sloyea shall not, without ttie exPress prior �vri�ten aPprova! of the Vilta�;e Coun�il,
individually, or as a partner,joint venturer, of�icer, sharehotder or a,ny other sirnilar po�iiit��7 €af�aYy
kind ar natu�-e whatsoever, invest or participate in aily busincss venture whic}i conducts s�r i��t�t�d�to
Conduct business within the corporate lirnits of the Village, except for slock owncrsh�p �r� �a�y
comp�.try, the eapit�t stock of which is pubticly held and re�,=ularly traded. Except fc�r purcl�a�e qf a
�ersunal�esidence, Lrnplc�yee shall not own or itivest in any real property witllin the carporatc lir�'iLs
of thc 'Vill��e, �ithdut prior notification to and adva�ice written approval by the Village �c�un il,
w�iich apprnval may be withheld by thc Village Council in its$ole discrstion.
Em�l�yee is precluded from engaging in any conduct which crcates eirher an a,�tual c�r
perceived canl�ict of interest under applicable feilerat, state or local law. �
S
r�:�;- [���--�?��� �L��� t?:���9 f'i l �`A�{ T1t�, �', C'"i
SECTIOPT 14. 1VII�CELL�NE�US�'RO'V�YSl(JNS
'i°)�is agaeemet►t constitutes the ent�rc undcrstandinb between the parlies re�;arding issl�es
relatin�.to C�nployee's emplayment with the Villag�, and supersesies any pi�ior a�;recment or
understanding, whether verb�tl �r written, wilich niay have cxistcd betwecn the parties. Tlli�
Agreement may nat be aiTiended exccpt in writinb and with the express approval of both parties.
In tl�e evcnt it should become necessary for either garty ta initiate adversarial;proceedinga Ya
enforce the terms of tt�is agreemeat, the prevailin� party shall be entitled to rec�ver its r�asc��}abl�.
attUrney's iees incurred im such e#�orts. 'Venue for any such proceedinb shatl i�� in a court of
coin�etent jurisdiction in P�lm Bcach County.
�mploy�e ackciowledges that he has been af�'or�ed tbe opportunity�nd eneouraged lo obtain
t}i�r��resentztaon c�f legai counsel in�onncction with the drat�ing arid executioii of this A�reemcnt.
,�s such,no provision ofthis Agrcenient sha�l be cc,nstrued in favor ofor�,�ainst cither�artyby virtue
of drRfts�nanship.
1N W.t7`NESS W�iFREOF, the Viltagc pf Tequesta has cause�this�greeinent to be si�ned
ai�d cxecutcd on its behalf by a majarity of its Village Council a.ud duly attasted by ils Village Clerk,
anJ the Fmploye�l�;as signed aild ex�cuted this A�;reemeni, both i�r duplicat�e, thc day and ycar tirsl
abovc written.
VII.I.A(yF; COUNCIi, EN1�'�,0)YE�
MichAc� �2,. Couzzo,Ja•.
� Mayar
ATTEST:
Vili�ge(.;le�rtc
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wsr vvr vs a•..�.0 .a.i,.�.a. asus asvai vv4 .,v..�. ",...vv aia.,.a�uass aw aua�..aau�aaa `YJvvf.
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E1Vm'LOXMENT AG�iEE1VYENT��TWE�rj
�ca�L�.couzzo,rn
�
THE VII.LAC,E OF TEQUESTA,FLQRIDA
This Agreecne�tt,mdde and entercd into this day af ,�96A 204z,by and between
the Village of Texluesta,Florida,a cciunxc;.pa�corpor�tion,herein�tfter c�tll.ed the"V llage",and Michael R; Couz�ao,
Jr.,an individual,b.eYe�inafter. called"Emplo�ee",both of whom undcrstand as foltows:
WHEREAS, the Village desires to employ the services of Michael R Couazo, Jr. (Employee)as Village
1Vlacsager of the Village of Te�uesta es pzovided by approp.d�te Charter,statute and ordinance sections;and
VNfI�REAS, it is the desire of the Village Council to provide certain benefits and establish condirions af
euiploy�nent;aiui
vV��Ett�AS, the Village seeks to pravide inducement for Employee to remain iu such employment and
mak�e possible full work productivity by 2tssuza�ng �mp�oyee's mora�.e and ��ce of nnind with respect to�itture
security:to act as a detezrent�gainst malfcasancc or dishonesty far personal gain on tY►c p,irrt of the Empldyee;2�nd to
provide a jusi means for terminating Employee's senrices at such time as he may be unable fully to discharge his
duties ar when the Village may des�Te to othcrw;sc tcrminatc his e�er�e�nlnvment;and
WF�1�AS,Employee desues to accept employnnent as Village Maz�ager of the Village of Tequesta.
NOW,TI�REFORE,in eonsideration of the mutua!covenauu herein contained.,tlie parties hereto agrec:as
follows� �
SECTTON�. DUTIES
Village hereby agrees to euiploy � , , Em io ee as Village Manager of the
Village to perform tb.e fun.ctitons and dutics specified in the 'Village Charter, state statutEs and ot+dinancc,s and to
peiform sueh pther legally pernussible and proper dnties aud functions as the Village Couucil shall&om wne ta
timc assign. ;
SECTION 2. TERM
"I'his agreement and all of its terms and provisions,shall have an effective d�te of .�110x,_and shall
ex ire on 200 . Nothin► in thi� A�reemeat , ,
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shall prcvent,linut or othenvise interfere with the righi of the Village Couucil to
terminate the scrvices of�mpl��ee at the will of the V'illage Council,without cause,at any Uime,subject only to tlie
provisions se[fo�►in Section 3 of this eg�ee�e�Aereement.
Nod�ig in this ag�eeAae�E A�r'eement shall preven[, limii or othervvise interfere with the right of thc
Fanployee ta resign at any rime from�his position with the Village,subject to the provisians set foctli in Secrian 3 af
����{A,�.reement.
Employee ag�ees to remain in t���e exclusive employ of the Village and shall not become emplayed by aa�y
oth�er employer unless res�ign�tion or termination is effectefl as hereinafter provided. The prohibition aexinst
outaide cmulovment
�'�ii��l�� '�'U� 3�;�f �'� 3U5 �59 �J1J 3V�1SS S�R�"1°�l �C ki�3�t��ir�i� t�1���
" " sbal! not be comstruod to include occasional teachin�. writing oz consultirg
performed on.Emplo�ee's time off._�mvever,in no ev�nt shall Em,�lovee's outside emglavment interfere with
or otherwiye hinder t�e a�r[ormxnce oi`'lus dut�cs as ViIingc Manaeer or re�ett poorlv unon the na,nc or
seput:�tion ot the Villaga
SEC�ON 3. TERMIlVA�'�fJN A1Vb SEVERANCE PAY
L� lhe event Ernplayee is terminated try the V�illage Cauucit bcfpre e:�cpiration of the aforesaid tema of
empioymcnt and during such tsnne that Emplayee is willin��utd dble to peaform the duties of Village Managez,then
and in that event the Vil�tge agrees to pay Employee a ttump sum cash payment equal to six(�)mon'ths�ggrEgate
� S�everancc Pavment"), and 9[sail continue Employee'9 4ther beneCts nrovided hereunder for the xix-
:nonth criod immediatel folYowin terminatipn. Ia t�ie event Entployee is
re-emnloved dnrine the kiz-month qeriod immcdiatciv follawin�
termination,the'Villatc's obliQation to cantinue benefits sl�all ceaye. Rx-emntovment,howcver.will not affect
EmnlOvee's catitlement to the S�verance PaYmen�
Ya fhe event however that Em lo ee i� terminated far rcaaons rclatin to moral tuTpitude,
malfea�ce or�en�ce dereliction of dwty.ihen,in that event,the Vill�ge sb�all have no 4bligation to�e
., rnakc thc 5cverance Pavment
or conti�ae beuet"►ts subseQaent tv termination.czceut as mav be r�uired hv lavv. 'Y'hc Scvcrance Paymen
v�acation, sick leave amd otller accrued benefits refc�renced iu this agreement shatl sexve�s liquidatcd damages and
shall serve in the place and stead of any elaim EmpYayee may have against the 'Village, its officers or
represertali�ves,direcfly or indirectly relating to his termin�tivz�.
In the event Utc Village at any time duxi�g thc e�le�es�e�term of this d�inent reduces it►e salary
pr other financial be�n�ts of Employee in�gteater percentage than an applicable�ctoss-thc-board reducuon far all
Village employees,or in the event the Villaga refiises,following written noti�cc,W complq with any other proVisions
gexe� beneCttinQ Employee hercin, or the Employee resig�ns foltowing a suggestion, whether fonnai ar
informal, made by d m2jority of the Village Council in official session that he resign, thcn and in that event,
Employee may at his optian be deemed lo be "terminated" � as uf the datc af seich reduction e�sae�,refusal to
coxnply or resi�nation,witt��n the meaning and context vf�-herein t6is severance�provisivn,
r
3
�2ID5d�2 'iZ18 14��2 F'� 3�5 ��� =�m� n���� a�xu�� � nr.��mAi� �y�g
I�t}�e event�znployr.e voluntarily resigns his position witli the Village before expiration of die�a�
teim oF+ee�leyt�aea�thys aQrcem�nt, then Emplayee shall give the Vllage ' ' ' sixt 6U
Qsys, advance notice and relinquishes anv and ali rights W the severdnce � benetits nrovided under this
section.
SECTION 4. SALARY
Beginning AsEebef i, �AA9 Z0�12. VillagC dgrces to pay �mployee fox �is services rendered
pursuant�eto-e-s�`to thi,r A�reement en annual base salary of$84,��8� . Employee's�nnual
bdse Salgry sha11 be paid to Employee in eyuAt installments at the same time as other employees of the Village are
p�-
, , All subscancnt pravisions for annual evaluadon witl�pa;�increase, if any,
shall be determined by the�Iillage Council. Employee sTn�li be entitled to receive all across-the-boazd increases
granted to other employees �
of the Villagc and his annuel da.ae 4alary
shall be adiusted aeeordinglv. An annual perfoimance evaluation of Employee by the Village Council is
eneouraged for the benefit of the Village and l�te Employee�nd pay�ncreases,�f. any, other tban acxoss the boazd
increases granted to otha'emple�yees as specified herein, shall be tied to the peiformance evaivauon. Excent aa
SDeC1$CdI1Y DrOV�dCA �Or iri thi� 9eCtioll the gr'antin�of sulary inereases based on Emulovee'� nerformen�e
evalaation;x left exclu.iivelv to thc discretion of the Villa�e Counc�L
SECTION 5. V,A,CATIOIV
�
,
.�6A•l;�mplayee sl�all acc�unnlate vacation days in the same manner as other depaitment heads.
S�CTYQN 6. AUTOMOBII,E
Bccause emplayment requires tarenty-four(24)haur availability of a vetucle,the Village shall provide an
autouwbile allowance to Employee iu tb�e amount of�-S8A;88$ pCr rnonth fpr use o�the E�mp�ayee's personal
vel►icle. This figure ei�ma bc �vicuved evc+t�-��weaaf-�a►�f,�� �`" ""'' ",."„ a" �r the 'Villa�e Council
pe�ioclicall and adjusted according to the Buresu of Labor Statistics,Southeast Regional Office, Consumer Price
lndex. In addition to�the above,the Employee shall be compensdled at tbe stand�rd�rate appzoved by the Village
Couucil for official vehicle usage foa exnployer xe).atcd txi.ps recpuired of�the Village Man�ger outside Palm
Beach/Martin County are�as. Ssid xniteagc sha11 bc computcd from tlie auurmost limits of thc Pa1m Beach/M�rtin
Coanty areas to the final destination paint.
5ECT1(dN`7.
--�n�*�
�G�IAA�S. ��tOFESSYONAL DEVELOPNiENT
The V'illage agrees to provide Employec thc usual and necessary funding applicable for tra�vel and
subsi5tence necCssaYy for the F.�r►ployee's professional development and for the good of the Village. The Village
agrees to pay tt�e membershiP dues of the Intemational City Iv�anagets Associdi,ion, the Florada Couriiy�nd Ci.ty
4
�3�/9�l�3� '1'�J� :��435 �'t5� �D5 85� ��2� i��3SS �EI8flT�1 3� ii�I.F�r�rd ���p�
[1�31 7:29j De!Para "Employee shall ... his emptoyrnent.��
ji:32 1:29] Changcd "SECTION 8."to"."
[1:341_31]Changed °9"to"8��
[i:35 1:32]Chaitged "and his"t�"and z�t�ke available yvch coverage for his"
[1:35 1:32)Changed "as is eq�sl "to"fra a manncz comparable"
(1:36 1_33]Ch�nged '�10.INDEI1dI�I�'Y(.`ATTorT"LO��9.IN�F.]�/IN�"Y(,'A�'I�N"
(1:37 1:34J Changed "The Village ... ordinance.�'he"to"The"
[1:37 1:34J Changed "for"to"in connection with'°
[1'38 1:34)Changed "SIECTION"to"The V�illage ... hereunder."
(1:3B 1:35] Changed "SECTION 11"to"SEC7'ICIN 1.0"
[.i:39 1:36J Chxngcd "of�200,00 per"to°'of$ per"
[1:39 1:36�Chan,ged "the$200.OQ aliowed"to"the$ allowed"
(1:40 1:37]Cbanged "12"to"11"
[1:41 1:38]Cf�angcd "Villagc dgxees to exe�te"to`"The Village ... to e�cecute"
[1:41 1:38]Changed "and in"to". In"
[t:41 I:38J Change$ °salerYpaid"to"salarY and ,., benefitc paid"
[1:41 1:38)Cb,anged "Emptuyee.Village"td".8mployee as ... the Village'°
[1:41 I:38] Changed "Employee's base'�to"Emplayee's annua!base"
[l:41 1:38J Changed "succeeding employers"to"Empla}ree"
(1:41 1:38] Changed "by Viilage"to"by thc V�iIlag� ... this section"
(1:4t 1.38J Changed "law or IItS ... per annum."to"law."
[1:42 1_39]Changed "."to"aztd�grees ... discharge."
j1:43 I:40]Changed "SECI'ION 13"to"SEC'I'ION 12"
[1:45 1_42]Cb,anged "A11 "to"Except as .,, subject to all"
ji:45 1:42�Changal "Code and reguyativns"to"Godc,ds well as regutations"
[1:45 1;43�Changed "amended shali ... pravided."to""
[�:45 1:43J Changed "amended shall"to"The Vill�ge"
(1:47 1:44J C.hanged "this d�reement is"to"this Agreement is"
[l:48 1:45]Add Paras "SECT'ION I3. CONFL,ICTS .,, draftsmanstvp,"
(1:48 1�52]Cbanged "dus a�reement,"to "this.A.greentent,"
d1:58 1.:62) Changed " ��to�� ��
9
� � � 1
• � � � � � � �
� m �
To; Mayor Ge�akline Genco
From: EdwaM G. Guedes, �sq.
Date: 01h4/2002
Re; Evat�ation of Current Empbyment Agneement with Viliage Manager
What follows is a summary of my analysis ofthecurrentemptoymentagreementtheVillageof
Tequesta("Viltage")has with the ViNage Manag�rr, Michael Couzzo {"Manager"). By and Narge, as 1
indicated during ourtelephoneconversation,the agreement is fairiy corr�petitive in terms of salary and
bene�its. I have not addressed in this memorandum a series af minoc scriv�ener's revisions that i
believe wou(d benefit the agreement and make it more comprehensible. The foHowing matte�s are of
g�atEr significance and w�outd need to be addressed in o►der to make the agraeement mor�ef�ective:
(1) The te►m of the cument agr�ement is four years (Section 2). While that is not
necessarily unusuat, given the Village's electoral pracess,it might behoove the Village politicatly to set
a shorterterrn with automatic renewal provisions. Ofcourse,the practical effect of setting a particuiar
term is less refevant since the �greement may be terminated at-�uiq. The reappoirttment provisions
should be deteted since the Viltage charter was rec;enti�r amended to ehminate the r�equirement for
annual r�appantmen#of the Manager.
(2) Section 3 (fermination and Sev�rance Pay) does not addmss whffi aecu►� if the
termination of the manager occurs with less than 6 months left in #he term ofi the agreernertt. Some
contracts provide that in the event the remaining term af the agreement is shorter than the number of
months enc�mpassed by the sev�erar►ae payment, then the sewar�nnce payment is r�educ�d
commensurate{y. This is not necessarily an industry standarci.
(3) 'Theterminetion provision in Section 3currentlysuggeststhata°convicfian"is required
in arder fc�r the ViBage to refuse to honor the severance package. The industry norm is that munieipal
employers refuse to honor severance packages iF the ernploy�ee is terminated far r�easons r�lating to
moral turpitude,dishonesty,dereiiction ofduty,incompetence,criminal conduct,etc.,without the need
ibr a criminal conviction. Basing the decision to horior or not honor a severance package on whether or
nat an empbyee is convicted unnecessarify ties the Cuunaf's hands.
(4) The cument severance padcage p►�rnrides fior six months' wath of benefits (insurance,
etc.j post-termination. Qoes the Vitlage wish to continue those benefits if the Manager finds a new job
within those six months? It is not unusual to terminate employmant benefits once the emplayee finds
new empbyment.
(fi) The provision at the end of paragraph one of Section 3 relating to liquidated damages
and the payment ofi benefits serving in the stead aF any claims the Manager might ha�e against the
�Itage is largely unenfiorceable insc�far as daims af discrrminatian, har�ssment, etc., are inwlv�ed. It
wouk�t be enforc,�abie as to claims for dirw,ct compensation, r�imbursement,etc.
1
(B} The 30-day notice requinement ftx the Man�er to terminate the agr�eement is
uncharacteristicaltyr shork Most agreeinents we hav�e negotiated proviicfe �Or a 6d-day noticx� period.
Even fhough the cument cir�rter provides that a vacancy in ttte Manage�'s posiiti�on must be filled within
34 days,given the difficultie&of locating a new manager andlor promoting from within,60 days'notice
is not unr�asnnab[e.
{7) The cument agreem�nt has a cost of living provision that is somewhat confusing. I
betieve the intent is to provide the Manager with atl cos#of living increases that are granted across the
board to all other employees. Ha+vever, as cumently phrased, the Manager would be entitled to any
cx�st of living increase granted to any other smployees, �gard►�s of whether they are acrc�ss the board
ar not. 7his section needs some re-writing to clarify the intent of the Viltage.
(8) The automobile altawance contains a mandatary adjustinent pursuant to pubGshed
statis6cs. Does me Vifk�ge want this ta k�automatic?
(9} Yhe section relafing to moving e�enses(Sec#ion 7)should be deleted.
(14) With respectta insurance coverage and benefits(Section 9),do atf employees receive
the same benefits? In other wads,does the Vl�age pay the s�ne premiums fnr atf its empioyees or do
department heads get add�ional coverage Tor dependents paid by the Vllage? The phrasing of th�s
section is awkward and coukf use some revision.
(11) Section 1t3 raelating to indemnificatiwt should be rewritten to provids greater c�ntroi to
the Vittage to sefec;t legal c,�,inse{, se�tte claims, dinect litigation, etc. L�es the ViNage want the
ind�nnificaticxr provision to e�d beyond the time the Manager is emAloyed provided the elaim arises
#rom events that took place while the Managerv++as still employed? That is the norm in the industry. It
is atso the norm to exclude coverage fiior acts determined by a court of competent jurisdiction to be
f�audulent or criminal in nature or, in some instances, deliberatey tortious (warranfing assessment af
punitive damages). !n fhose situaticxis, cov�rage is provided unt� such time as the a�urt makes a
determination regarding the iraudulent or criminal nature of the conduct and reimbur�emerrt is then
sought #rom the empbyee fior legal expenses {sometimes a mechanism is created that alk�vus the
employer to set offreimbursement amaunts due against monies owed to the emplayee). The seetion
relating to bonding shouki be detetect and inGuded in a separate section.
(i2) Section 91 retating to job e�enses is somewhat unusual in the degree of contro#and
the limitation to$Z00 per month. The standard is ta allow tor reimbursement of reasonabie business
e�enses vvifhout limitation.
(13) Secticm 12 rctating ta retir�ement benefits needs some revision to elaninate oonfusion as
to what occurs in the event the Manager were to change jobs. The requirement to transfer ownership
of the funds in the 1CMA RC plan to th�Manager(not to the succeeding employer)should extend to
those funds in the Viflacje's retirement plan as welf. Sane agreements we h�ve seen also have a
provision as tothe Village's obtigations regarding these funds in the ev�nt ofthe death of the Manager
{payment to ber�eficiary,etc.).
(14) The provisions in Section 13 relating to the application of leave and c�tt�er personnel
policies shoutd be revfsed to avoid the impression that the Manager is entitled to the same treatment
und�:r all fhose poli�ies as are the other empbyees of the Village. Th�re ar� many r�s why the
Manager shoufd not be entitled to avait him�e{fqf the same poticies to the same degree as ministerial
employees. The provisbn should provide that he is subject to or gor�med by the sarne poficies as
othec emptoyees af the V'�lage. The phrase relating to �etirement and pensian system contribufions
shouki be deleted �ecaase it contradi�ts andlor may be dupticative of the separate section that govems
retirement benefits.
•Page 2
(15} The agreement cantains no provisions relating to conflicts of interest. V1le customarily
inciude provisior�s intheagreement c��dministratas r�lati�g to conflicts of inter�est and the cw�mership
of real property witFiin the juri�dict�n af t�e municipality. Ger�eraAy, wiEt� the exoeption �a personat
residence,we hav�e �quir�ed that managers not pur�hase real property within the jurisdiction without
the priar' approvat of tt�e leyislative baty. We havF: also incfiuded a genewal prohibition of conflicts of
int�st oonsistent with state law.
(16) Some agreements we have prepared have a separa#e section relating to the
municipaliry's obligations upon the death of the manager and pr�►vide a limitation on thQse duties. This
is not an indu�hy norm.
(16) l�here are a series of general provisions that ar� not includ�t in the agreement that
�vacrtd-nam,ally-be-t+ountt-irr-mi�-tp r.-�cte�;ision-n�s-t -tt�r-th�-- _ - - --
agreement shnutd contair�an attome�s fiee provision tc� recov�er costs associated with enfnr�cement 4r
defense af the agreement. provisions relating ta proger venue, integration clauses, etc., shouk! be
induded.
Please feel free to contact me after yau have had an opporturi�ty to r�eview these suggestions in the
context of the current agreement.
•Page 3