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HomeMy WebLinkAboutDocumentation_Regular_Tab 13_07/13/2006 MEMORANDUM DATE: 07/06/06 TO: Members of the Village Council THRU: Michael R. Couzzo, Jr., Village Manager FROM: Mayor Jim Humpage RE: AGENDA ITEM — Discussion and possible action regarding compensation (Severance Package) for Police Chief Steve Allison At the Village Council Meeting on June 13, 1996 (minutes attached), the Village Council approved a Tequesta Early Retirement Incentive Program. In an effort to continue with the program, I would request Council consider a compensation (severance) package for Police Chief Steve Allison for his 30 years of dedicated service to the Village of Tequesta. Other employees in the past that have participated in this progam are: Mr. Marvin Brown, Public Works Crew Leader Mr. Carl Roderick, Chief of Police Mr. Gary Preston, Public Works Director In the past under the Early Retirement Incentive Program the Village has offered employees with 25 years of service or more an incentive of $750.00 per year x years of service, or 6 months of salary. As part of an incentive package, if Council agrees to provide Chief Allison with the incentive of $750.00 per year x years of service, he has indicated his desire for the funds to be held in a special trust account to be used to pay for health insurance premiums. Based on his 30 years of service the total amount would be $22,500.00, which would take care of his health insurance premiums for 24 '/2 months at $922.00 per month. I am requesting Council approve a severance package in some fashion, based on the Early Retirement Incentive Program to Chief Allison in gratitude of his many years of service to the Village of Tequesta. Village Council Meeting Minutes June 13, 1996 Page 2 9 --------------- Bradford also explained that the Village was providing funding of $44,000 from the Improvement Bond Revenue Fund to the Capital Improvement Fund for the purpose of providing a new roof on the Tequesta Recreation Center, formerly known as the JTJC Building. Village Manager Bradford also explained that in the course of presentations to the Village Council about the fund balances needed to accommodate the Capital Improvement Fund, and/or estimated General Fund balances, all were done on the assumption that the payback of the loan which was made to the General Fund from the Water Department for the excess funding needed for the Tequesta Branch Library would be waived by the Village Council. Councilmembers stated they had no problem with that; thus authorizinq the liability of $361,100 to be removed from the Capital Improvement Fund and the transaction adjusted to reflect a transfer of funds not requiring repayment. Attorney Diaz read Resolution No. 28-95/96 by title only. Vice Mayor Schauer made a motion to approve Resolution 28-95/96. Councilmember Meder seconded the motion. The vote on the motion was: Ron T. Mackail - for Elizabeth A. Schauer - for Joseph N. Capretta - for Carl C. Hansen - for Michael R. Meder - for The motion was therefore passed and adopted. K) Consideration of Approval of Proposed Tequesta Early Retirement Incentive Program (ERIP) . (Staff Recommends Approval) Village Manager Bradford pointed out that this was a very important item with serious implications for those employees recommended for the program. The Village Manager explained that the primary purpose for the Village Council Meeting Minutes June 13, 1996 Page 30 --------------- program was to save the Village and the taxpayers money, and to avoid a tax rate increase, particularly in the next fiscal year, and that the program would only work if employees did in fact retire and were not replaced. The proposal was to offer to any employee w.ith 25+ years of service either six months salary or _$750 for each year af service, whichever was greater. Two employees, Marvin Brown, the Public Works Crew Leader, and Police Chief Carl Roderick, qualified under the proposed criteria. Village Manager Bradford stated for the record that in the event this program was approved by the Village Council and in the event that Chief Roderick accepted the program offer that Village Manager Bradford's recommendation was not to fill the position, but to change the number of Police Department administrative employees from three to two, and to promote current Assistant Police Chief Steve Allison to Chief of Police. Total cost to the Village would be $49,370 if the program were adopted, and total savings to the Village during the upcoming fiscal year would be $116,651, which is a 136% return on the early retirement investment, and would leave the Village with $40,993 in its Compensated Absences account to pay for accrued vacations and sick leave for any future employees who left emplpyment. Village Manager Bradford reported that the total cost if and when the two employees under discussion left the Village would be $91,920 which would be their early retirement incentive plus their estimated accruals. Village Manager Bradford reported if the two employees took the offer prior to July l, 1996 their vacation accruals would be counted toward compensation in the Florida Retirement System so that their average compensation and their retirement benefit would be increased. Village Manager Bradford reported that Chief Roderick appeared to be leaning toward accepting the offer. Both would be given a separation agreement which spelled out the specifics of the program. Chief Roderick had requested that the Village consider that the proceeds be applied by the Village directly to buy back time that he had in the Florida Retirement System which did not accrue to him at the Public Safety Officer rate, which would in essence cause him to village Council Meeting Minutes June 13, 1996 Page 31 --------------- receive a full retirement. Mr. Brown had indicated his desire that the Village set up a program where his incentive funds would be held in a special trust account to be used to pay for health insurance premiums for both him and his wife for the next thirty months. Village Manager Bradford stated that if these two employees accepted the offer that it could mean the difference between a budget requiring no millaqe rate increase and a budget which wou�d have a millage rate increase. Councilmember Meder questioned the exit departure dates for Mr. Brown and Chief Roderick. Village Manaqer Bradford explained that they would be presented with the aqreement and under law would have 45 days to decide, and then seven additional days after signing to rescind; however, it would be to their advantage to retire before July 1, 1996, as explained earlier. Village Manage� Bradford responded to Councilmember Hansen that Mr. Brown's work would be contracted out at a lesser cost, which was cheaper and normally worked well as long as a core of personnel existed to oversee the work of subcontractors. Councilmember Capretta suggested that it would be a good idea to offer the employees this early retirement incentive, and that the Village should look at contracting out jobs in other areas. Councilmember Meder questioned whether the cost was too expensive to offer the incentive program to workers with 20+ years of service, to which Village Manager Bradford responded that was true. Vice Mayor Schauer commented that an early retirement incentive program was the reason for Mr. Picklesimer's retirement. Cauncilmembers expressed to Chief Roderick that they would miss him it he chose to take advantage of the program. Vice Mayor Schauer made a motion to approve the Early Retirement Incentive Program (ERIP) per agreement with Village Manager Bradford. Councilmember Meder seconded the motion. The vote on the motion was: Ron T. Mackail - for Village Council Meeting Minutes June 13, 1996 Page 32 --------------- Elizabeth A. Schauer - for Joseph N. Capretta - for Carl C. Hansen - for Michael R. Meder - for The motion was therefore passed and adopted. XII. UNFINISHED BUSINESS (B) Ordinance - Second Reading - an Ordinance of the Village of Tequesta, Palm Beach County, Florida, Amending Chapter 2 of the Code of Ordinances at Article IV, Boards and Commissions, by Rescinding Division 2, Code Enforcement Board, in its Entirety; Providing a New Chapter 2, Article N, Division 2, to be Entitled Codes Enforcement; Providing for a Special Master, Providing for Repeal of Ordinances in Conflict; Providing for Codification; Providing an Effective Date. (Staff Recommends Approval) Attorney Diaz read the above referenced Ordinance on Second Reading by title only. Tom Little, 486 Dover Road, stated that the Special Master would be acting as a judge and under the Ordinance would control all eighteen points in the code book and he did not see how anyone could handle 50 people a day. Mr. Little suggested a sunset provision be added to the Ordinance so that if costs, in total, exceed $5,000 annually the Special Master system would revert back to the Code Enforcement Board. Mr. Little expressed concern that this was merely setting up another government bureaucracy, and advised that the Village Council look more closely at the cost of this matter, and delay adoption pending further study. Councilmember Meder Stated that he appreciated Mr. Little's comments, but did not share his opinions. Councilmember Hansen commented that several months ago he had contacted three nearby municipalities which had already adopted the Special Master Sys�em and had