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Agenda 09/23/2014 Item #11C9/23/2014 11.C. EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners extend the County Manager Employment Agreement with Leo E. Ochs, Jr., fixing the end date of the second extension term as September 30, 2017. OBJECTIVE: That the Board of County Commissioners extend the County Manager Employment Agreement with Leo E. Ochs, Jr., and fix the end date of the second extension term as September 30, 2017. CONSIDERATIONS: On October 27, 2009, the Board of County Commissioners and Leo E. Ochs, Jr., entered into the County Manager Employment Agreement. On September 25, 2012, the Board approved the first extension to the Agreement which is set to expire on September 30, 2015. Section 2:B. of the Agreement is set forth below: Section 2: Term B. On or before September 30th of the year immediately preceding the then ending year of the Agreement, including any applicable extensions, the term of this Agreement may be extended for a period of two (2) years by the mutual written agreement of the Board and the Employee. It is contemplated that the Board will base its decision on the question of whether or not to grant the extension of the term of this Agreement on (1) the Employee's performance and (2) the Employee's ability to successfully achieve goals mutually developed and agreed to by the Employee and the Board. Notwithstanding the foregoing, the end date of the first extension term, if implemented, will be September 30th, so that the term of this Agreement will ultimately correspond with the County's fiscal year. The proposed Extension of County Manager Employment Agreement fixes the end date of the second extension term as September 30, 2017. FISCAL IMPACT: Funds are appropriated in the County Manager Office operating budget. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. RECOMMENDATION: That the Board of County Commissioners extend the County Manager Employment Agreement, fixing the end date of the second extension term as September 30, 2017. PREPARED BY: Leo E. Ochs Jr., County Manager Packet Page -446- COLLIER COUNTY Board of County Commissioners Item Number: 11.11.C. 9/23/2014 11.C. Item Summary: Recommendation that the Board of County Commissioners extend the County Manager Employment Agreement with Leo E. Ochs, Jr., fixing the end date of the second extension term as September 30, 2017. Meeting Date: 9/23/2014 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, County Managers Office 9/16/2014 2:37:06 PM Submitted by Title: Executive Secretary to County Manager, County Managers Office Name: BrockMaryJo 9/16/2014 2:37:07 PM Approved By Name: OchsLeo Title: County Manager, County Managers Office Date: 9/16/2014 4:49:07 PM Packet Page -447- 9/23/2014 11.C. EXTENSION OF COUNTY MANAGER EMPLOYMENT AGREEMENT THIS EXTENSION OF COUNTY MANAGER EMPLOYMENT AGREEMENT ( "Extension ") is made and entered into this day of , 2014, by and between COLLIER COUNTY, a political subdivision of the State of Florida, hereinafter called "Employer," as the party of the first part, and Leo E. Ochs, Jr., hereinafter called "Employee," as party of the second part. RECITALS: WHEREAS, Employer and Employee entered into a County Manager Employment Agreement commencing October 27, 2009 (collectively referred to as the "Agreement "), a copy of which is attached hereto; and WHEREAS, the Agreement expires September 30, 2015; and WHEREAS, the Agreement provides in relevant part that "On or before September 30th of the year immediately preceding the then ending year of the Agreement, including any applicable extensions, the term of the Agreement may be extended for a period of two (2) years by the mutual written agreement of the Board and the Employee." WITNESSETH: NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration exchanged amongst the Employer and Employee, and in consideration of the covenants contained herein, the Employer and Employee agree as follows: 1. The above RECITALS are true and correct and are hereby expressly incorporated herein by reference as if set forth fully below. 2. The termination date of the Agreement as set forth in Section 2 is hereby extended to September 30, 2017. 3. Except as modified by this Extension, the Agreement shall remain in full force and effect. If there is a conflict between the terms of this Extension and the Agreement, the terms of this Extension shall prevail. IN WITNESS WHEREOF, the Employer has caused this Extension to be signed and executed on its behalf by its Chairman, and duly attested by its Clerk to the Board, and the Employee has signed and executed this Extension, both in duplicate, the month, date and year first written above. Packet Page -448- Attest: DWIGHT E. BROCK, Clerk LoSm , Deputy Clerk WITNESSES: Print Name: Print Name: Approved as for form and legal sufficiency Scott R. Teach Deputy County Attorney BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: TOM HENNING, CHAIRMAN EMPLOYEE By: LEO E. OCHS, JR. Packet Page -449- 9/23/2014 11.C. 9/23/2014 11.C. EXTENSION OF COUNTY MANAGER EMPLOYMENT AGREEMENT THIS EXTENSION OF COUNTY MANAGER EMPLOYMENT AGREEMENT ( "Extension ") is made and entered into this o 6 day of 04 -t** ? 2 r , 2012, by and between COLLIER COUNTY, a political subdivision of the State of Florida, hereinafter called "Employer," as the party of the first part, and Leo E. Ochs, Jr.,, hereinafter called "Employee," as party of the second part. RECITALS: WHEREAS, Employer and Employee entered into a County Manager Employment Agreement commencing October 27, 2009 (collectively referred to as the "Agreement "), a copy of which is attached hereto; and WHEREAS, the Agreement expires October 27, 2013; and WHEREAS, the Agreement provides in relevant part that "On or before September 30th of the year immediately preceding the then ending year of the Agreement, including any applicable extensions, the term of the Agreement may be extended for a period of two (2) years by the mutual written agreement of the Board and the Employee;" and WHEREAS, during the 2011 Legislative Session Ch. 2011 -143 (HB 43 /SB 88) was enacted, providing in relevant part that on or after July 1, 2011, a unit of government that enters into an employment agreement, or renewal or renegotiation of an existing employment agreement, that contains a provision for severance pay with an employee, must include the following provisions in the contract: (1) a requirement that severance pay provided may not exceed an amount greater than 20 weeks of compensation, and (2) a prohibition of provision of severance pay when the officer, agent, employee, or contractor has been fired for misconduct. as defined in s. 443.036(30), by the unit of government; and WHEREAS, the Employer and Employee wish to amend the Agreement to comport with Ch. 2011 -143, Florida Statutes, and to extend the term of the Agreement to September 30, 2015, in the manner set forth below. WITNESSETH: NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration exchanged amongst the Employer and Employee, and in consideration of the covenants contained herein, the Employer and Employee agree as follows: Packet Page -450- 9/23/2014 11.C. 1. The above RECITALS are true and correct and are hereby expressly incorporated herein by reference as if set forth fully below. 2. The termination date of the Agreement as set forth in Section 2 is hereby extended to September 30, 2015. 3. The Agreement is hereby amended to comply with Ch. 2011 -143, Florida Statutes so that notwithstanding anything to the contrary, any severance pay provided may not exceed an amount greater than 20 weeks of compensation, and no severance pay shall be made if the Employee has been fired for misconduct, as defined in s. 443.036(30), by the Employer. 4. Except as modified by this Extension, the Agreement shall remain in full force and effect. If there is a conflict between the terms of this Extension and the Agreement, the terms of this Extension shall prevail. IN WITNESS WHEREOF, the Employer has caused this Extension to be signed and executed on its behalf by its Chairman, and duly attested by its Clerk to the Board, and the Employee has signed and executed this Extension, both in duplicate, the month, date and year first written above. Attest: DWIGHT -0E .RbCi Clerk r Attest` 6s to- Chi fluty CierP Ilgnu�k;ure ot 4 Lf; WITNESSES:.: BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA R 7"�'^- --'�`- '*ice,... Bv:. -°'-� .. FRED W. COYLE, CHAIRMA EMPLOYEE Approved as for form and al sufficiezyy Se tt R. Teach Deputy County Attorney r Y LEO`E. OCHS, JR. ' / r Packet Page -451- 9/23/2014 11 COUNTY MANAGER EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 27" day of October, 2009, by and between COLLIER COUNTY, a political subdivision of the State of Florida, hereinafter called "Employer," as party of the first part, and Lco E. Ochs Jr., hereinafter called "Employee," as party of the second part, both of wh6m understand as follows: WPTNESSETH: WHEREAS, Employer desires to employ the services of Leo E. Ochs, Jr. as County Manager (County Administrator) of Collier County, as provided by Collier County Ordinance No. 93 -72, as amended, and Chapter 125, Part III, Florida Statutes; and WHEREAS, it is the desire of the governing board, hereinafter called "Board of County Commissioners" or 'Board," to provide certain benefits, to establish certain conditions of employment, and to set working conditions of said Employee; and WHEREAS, Employee desires to accept employment as County Manager of said Collier County; and NOW THEREFORE, m consideration of the mutual covenants herein contained, the parties agree as follows: Section 1: Duties The Employee shall have the authority, duties and responsibilities as set forth in Section 3 of Ordinance No. 93-72, as such Ordinance has bean amended or may be amended or superseded in the future, or as such authority, duties and responsibilities are set forth for a County Manager in Section 125.74, Florida Statutes. Section 2: Terre A. Employ= agrees to ren uun in the exclusive employ of Employer until October 27, 2013 as specified in Section 20, paragraph D herein, from the effective date of this Agreement, and neither to accept other employment nor to become employed by any other employer until termination of employment pursuant to this Agreement. B. On or before September 30th of the year immediately preceding the then ending year of the Agreement, including any applicable extensions, the term of this Agreement may be extended for a period of two (2) years by the mutual written agreement of the Board and the Employee. It is contemplated that the Board will base its decision on the question of whether or not to grant the extension of the term of this Agreement on (1) the Employee's performance and (2) the Employee's ability to successfully achieve goals mutually developed and agreed to by the Packet Page -452- C. 9/23/2014 11.C. Employee and the Board. Notwithstanding the foregoing, the end date of the first extension term, if implemented, will be September 30th, so that the term of this Agreement will ultimately correspond with the County's fiscal year. C. Nearing the conclusion of such four (4) year employment period, and any applicable extensions, the Employment Agreement may be renegotiated by the Employer. The Employee shall be given one hundred - eighty (1$0) days notice of Board's intent to renegotiate the Agreement or to allow the Agreement to expire without renegotiation. In the event the Board's notice is not to renegotiate, but for the Agreement to expire, no salary and deferred compensation severance payment nor insurance benefits shall be provided Employee or his dependents upon the expiration of the Agreement. Elements of this Agreement may be changed at any time when mutually agreed upon in writing by the Employer and the Employee. D. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employer to terminate the services of Employee at any time, subject only to the provisions set forth in Section 4 of this Agreement. E. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the Employee to resign at any time from his position with Employer, subject only to the provisions set forth in Section 5 of this Agreement. Section 3• SmMj;Mion Employer may suspend the Employee with full pay and benefits at any time during the term of this Art, but only it A. A majority of the Board and Employee agroe, or; B. After a public hearing, a majority of the Board votes to suspend Employee for just cause, provided, however, that Employee shall have been given written notice setting forth any charges at least ten (10) days prior to such hearing by the Board of County Commissioners' members bringing such charges. Just cause shall include only willful misconduct or willful failure or disregard of Employee's duties under this Employment Agreement. Section 4: Termination and Severance Pay In the event this Employment Agreement with Employee is terminated by the Employer before expiration of the aforesaid term of employment and during such time that Employee is willing and able to perform his duties under this Agreement, then, and only in that event, Employer agrees to pay Employee, in addition to any amounts then Packet Page -453- 9/23/2014 11. C. ,r a y a due Employee, including any unused leave, a lump sum :cash payment within ten (10) working days after the eff xtive date ofterminatiom as follows: A. If termination occurs any time during the first two (2) years of this Agreement, an amount equal to twelve (12) months of Employee's annual base salary and benefits (universal leave and retirement) at the rate effective on the date of termination, less any normally required deductions. In such event, Employee's individual and dependent health insurance benefits and term life insurance benefits shall also be continued and provided by Employer for a period of twelve (12) months after termination B. If termination occurs after the first two (2) years of this Agreement, an amount equal to six (6) months of Employee's annual base salary and benefits (universal leave and retirement) at the rate effective on the date of termination, less any normally required deductions. in such event, Employee's individual and dependent health insurance benefits and term life 'insurance benefits shall also be continued and provided by Employer for a period of six (6) months affix termination. In the event Employee is convicted of any felony or of any crime involving moral turpitude, Employer may terminate Employee's employment without notice and without any obligation to pay any aggregate severance sum or to provide post - germination insurance benefits described in the above paragraphs. Section 5; Resiznation In the event Employee voluntarily resigns his position with Employer before expiration of the aforesaid term of his employment, then Employee shall give Employer sixty (60) days advance written notice. If Employee voluntarily resigns, providing Employer with less than sixty (60) days notice, Employee shall forfeit any payment for accrued leave otherwise due and owing. Section 6: Disability If Employee is permanently disabled or is otherwise unable to perform his duties because of sickness, accidetrt, injury, mental incapacity or health for a period of four (4) successive weeks beyond any accrued leave, Employer shall have the option to terminate this Agreement, subject to the severance pay requirements of Section 4. Section 7: Salary A. Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $165,000 payable in bi- weekly installments. Packet Page -454- 9/23/2014 11.C. B. Employer and Employee shall negotiate in good faith to establish, within one hundred and twenty (120) days after execution of this Agreement, a performance based merit system through which the Employee shall be eligible for a merit adjustment upon the successful completion of measurable goals and objectives to be completed or attained by the Employee during the 2010 fiscal year and each fiscal year thereafter during the term of this Agreemmt. Such annual performance based merit adjustment shall not exceed a maximum of ten percent (10%) of the Employee's annual base salary. The minimum increase for satisfactory performance under such performance based merit system will equal the average percentage salary adjustment provided to all County employees for the given fiscal year or three percent (3 0/*) whichever is greater. All such merit adjustments shall be included in the Employee's base salary. C. On the date that general wage adjustments (i.e., cost of living adjustments, special study pay adjustments, etc.) are granted generally to Collier County employees, Employee's base salary shall be modified to reflect the general wage adjustment granted to other County employees. Section 8: Performance Evaluation The Employer shall review and evaluate the pmformanc.-e of the Employee in accordance with the perfo martce •based merit system as provided in Section 7. Written evaluations based on said performance system will be provided by each County Commissioner to Employee prior to September 1, 2010, and prior to each September 1st thereafter for the term of this Agreement A summary of all evaluations will be prepared by the Board Chair for the Board and Employee including the recommended merit wage adjustment. A merit system wage adjustment will take effect on October 1, 2010 and each October 1st thereafter for the term of this Agreement. An updated performance merit system for Employee will be developed in good faith between the Board of County Commissioners and Employee and adopted by the Board prior to October 1st of each fiscal year for implementation in the next fiscal year. Section 9: Hours of Work All duties required hereunder shall be performed by the Employee personally, or through the assistance of such County employees as may be made available from time to time by the County and concerning which the Employee shall assume full responsibility, provided, however, that nothing herein shall be deemed to absolve the Employee of personal responsibility for the duties set forth herein. The Employee shall be "on -call" twenty -four (24) hours a day, available to perform said duties and agrees to make himself available as needed during said period. The manner and means of performance of the duties herein shalt be determined by the Employee. All acts performed by the Employee, explicitly or implicitly, on behalf of the County, within the scope of his employment, shall be deemed authorized by the County as its agent, except that any act which constitutes willful misconduct or which may be unlawful shall be deemed to be an individual act of the Employee without authority of the County. Packet Page -455- 9/23/2014 11.C. The Employee agrees to remain in the exclusive employ of the County while employed by the County. Section 11: Automobile and Cellular Phone Employer shall provide Employee with a cash allowance in the amount of Five Hundred and 00/100 Dollars (5500.00) per month as a vehicle allowance for the use of Employee's privately owned vehicle for County business, Employer shall provide a cellular phone and service for &c Employee's use. Section 12' Lnsu*ace. Vation. and S - jckl,4cave A. As an induaanent to Employee to become County Manager, at signature hereof; Employee shall be credited with the carryover of his accrued vacation and sixty percent of eligible accrued sick leave days to date into a universal leave account, a portion of which may be used to purchase unpaid prior years earned retirement service credit. Employee shall accrue to his universal leave account an additional thirty (30) days per year, not including County holidays, on a monthly basis of two and a half (2.5) days per month Employee is highly encouraged to utilize his universal leave days not only for the Employee's individual health and welfare, but also for the increased effectiveness and efficiency of the County as a whole. Employee is authorized to sell back a portion of earned universal leave on a periodic basis. B. Employer agrees to maintain in force for Employee all health, life insurance or oilier kisurance policies provkIed by County to its other employees. C. Unused universal leave will be paid at Employee's current sate of salary upon termination, resignation or contract expiration. Employer agrees to put into force and to make required premium payments for Employee for insurance policies for Iife, accident, disability income benefits, major medical and dental, and dependeart's coverage group insurance covering Employee and his dependents. Term life insurance for Employee shall be provided at a level of three times (3x) Employee's annual base salary, not to exceed a maximum benefit of $500,000. Disability insurance income benefits shall be sixty-six and two thirds percent (66.66 0%) of Employee's annual base salary and administered as specified by County policy. Employee shall continue to have the option of participating in the County Leave Bank. D. Employer agrees that commencing on the third anniversary date of this agreement and annually thereafter, the Employee will be paid for all hours of accrued universal leave that exceed three hundred -sixty (360) hours. Packet Page -456- 9/23/2014 11. C. E. All provisions of law and regulations and rules of the County relating to holidays and other fringe benefits and working conditions as they now exist, or hm after may be amended,, shall also apply to Employee in the manner that they apply to other employees of the County, in addition to benefits specifically enumerated in this Agreement. Section 13: Retirement Employer agrees to execute all necessary - agreements provided by ICMA Retirement Corporation (ICMA -RC) or NACO Public Employees Benefit Services Corporation (as determined by Employee) and the Florida Retirement System for Employee's continued participation in said retirement plants. Employer agrees to pay the maximum allowable annual amount into the Employees current retirement fiord on Employees behalf on the effective date of this Agreement and on the anniversary of said date thereafter, and to transfer ownership to succeeding employers upon Employee's resignation or termination, or to Employee upon his retirement, in accordance with any applicable rules, regulations or laws. Since August 1986, Employee has been and is designated as a Senior Macageneent Service Class Employee in the Florida Retirement System and is entitled to the retirement benefit contribution levels specified for same. Section 14: Dues and Subscription Employer agrees to budget for and to pay for professional dues and subscriptions necessary for Employee's continuation and full participation in national, regional, state, and local associations and organizadons necessary and desirable for his continued professional participation, growth, and advancement, and for the good of the Employer, including but not limited to: International City and County Managers Association and the Florida City and County Management Association. Section 15: Professional Devel A. Employer hereby agrees to budget for and to pay fear travel and subsistence expenses of Employee for professional and official travel, meetings, and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official functions for Employer, including but not limited to the ICMA Annual Conference, Florida City and County Management Association annual seminar, Leadership Collier, and Leadership Florida. B. Employer also agrees to budget for and to pay for travel and subsistence expenses of Employee for short courses, institutes, and seminars that are necessary for his professional development and for the good of the Employer. C. All out -of -state travel not specifically provided for herein shall be pre - approved by the Board. Reimbursement for out -of -county travel shall be as provided by Florida Statutes. Packet Page -457- 9/23/2014 11 Section 16: Indemnification In addition to that required under state and local law, Employer shall defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, including costs and attorneys' fees relating thereto whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as County Manager. Section 17: Bonding Employer shall bear the fall cost of any fidelity or other bonds required of the Employee under any law or ordinance. The Board and the Employee shall fix any such other terms and conditions of employment as they may determine from time to time, relating to the performance of Employee, provided such tenses and conditions are not inconsistent with or in conflict with the provisions of this Agreement or any other law. Section 19: Notices Notices pursuant to this Agreement shall be in writing, transmitted by personal service or by deposit in the custody of the United States postal Service, postage prepaid, addressed as follows: (1) EWWYER: Board of County Commissioners Collier County Government Center 3301 East Tamiami Trail Naples, FL 34112 (2) EMPLOYEE Leo E. Ochs, Jr. 9139 The Lane Naples, FL 34I09 Notices shall be deemed effective upon delivery or receipt. Section 20: General Provisions A. The text herein shall constitute the entire agreement between the parties. This Agreement shalt be binding upon and inure to the benefit of the heirs at law and executors of Employee. This Agreement is a personal services contract and neither this Agreement nor Emolovee's nbiivgtjoriS under this Agreement are assignable. Packet Page -458- r h C. D. 'ibis Agaooaaaat sW became offil, mivo coo maric W Ocoabw 27, 2x09 p miidi og fcr me =*by=" a mieart n dsse of October 27, 2013 uakas dus Ageeamaot is a boded or rampatimd w provided bmbL E. Ii a" pravisiaoy or mW portioa lialwC cootsinad in ffiis Ag<oemo t is bead ynoomtimtioeal, invalid or eoced6ro , I* the :amaietier of this App meat, or puMm dl=4 dM be doomed seva*ir, "U twt be and sboR amain in f ffi &= mid elect. IN WnN= WIHMWF,tbe 1mpb3a fns owned lbis A$te+ MW b be s*wd and aoocarled om i1s bebaif by ib Cbaiem=6 aatd d* o tented by its Ckek W the Itoesd, and the EmpkU ee bss signed aed mooasod this Agreemsr4 bald m datlbmft, ft MOB*. date and year fast slaeve Haitian. It ! i •I 73 .4 FM r Packet Page -459- 9/23/2014 11.C. 9/23/2014 11. C. A49w �b 25, 2012} Packet Page -460-