Agenda 07/28/2009 Item #16E174L). 16-17
2009
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Of 5
EXECUTIVE SUMMARY
Recommendation to approve and authorize the Chairman to sign a second addendum to
the County Manager Employment Agreement for the purpose of correcting conflicting
provisions in Sections 12(13) and 12(C) of the agreement.
OBJECTIVE: To receive approval to amend the County Manager Employment Agreement to correct
conflicting provisions in Section 12(B) and 12(C) of the agreement which govern the administration of
group insurance benefits.
CONSIDERATIONS: On July 30, 2002, the Board entered into an Employment Agreement with
County Manager, James V. Mudd. On November 1, 2005, the Agreement was extended with no
changes to the terms of the agreement with the exception of the Termination Date.
Upon review of the Agreement, the County Manager and staff discovered a conflict between Sections
12(B) and 12(C) which govern the provision of various group insurance coverage(s). Section 12(B)
states that the employer agrees to maintain in force for the employee all health, life insurance or other
insurance policies provided by County to its other employees. Section 12(C) states that the employer
will provide these benefits at specified levels that are in conflict with the provisions of Section 12(B).
The insurance policies currently in force cannot resolve the conflicting benefit provisions of these
sections.
Staff is recommending that Sections 12(B) and 12(C) be deleted entirely and replaced with the
following paragraphs in Section 12 to repair this conflict.
B. Unless otherwise specified in this paragraph, Employer agrees to pay for and maintain on
behalf of Employee and if applicable, Employee's eligible dependents all health, life, disability,
and other insurance policies provided by the Employer to its other employees. Employer
agrees to pay for and provide Group Life and Accidental Death insurance under the Group Life
and Accidental Death insurance program(s) with a death benefit equivalent to three times (3x)
salary not to exceed a maximum death benefit of $500,000. Employer agrees to pay for and
provide Short and Long Term Disability insurance to the Employee. The Employer will take
steps to make disability benefit payments received by Employee exempt from Federal income
tax withholding by imputing the value of premium as income to the Employee or through a
supplemental disability payment sufficient to pay the estimated Federal tax obligation.
C. Unused universal leave will be paid at Employee's current rate of salary upon termination,
resignation or contract expiration. Employee shall continue to have the option of participating in
the County Leave Bank.
This addendum will resolve these conflicting provisions; will resolve taxation issues; will make the
benefit provisions commensurate with the existing benefit plan structure; and will provide clear direction
to staff regarding the administration of these programs.
FISCAL iMFACT: f=unds are budgeted under Fund 517, Group Health and Life for these benefits.
These changes clarify the benefit provisions of the agreement and will eliminate potential liability to the
Employer of approximately $70,000. The rates currently budgeted are sufficient to fund these programs
and will not result in an increase to the existing rate structure.
Agaoca'it �,m:'A � 7
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Page2o(5
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
LEGAL CONSIDERATIONS: This hern has been reviewed by the County Attorney's {}ffiue, it requires
majority vote only, and is legally sufficient for Board action. — CMG
That the Board of Commissioners approves and authorizes the Chairman to
execute a second addendum to the County Manager Employment Agreement os described above and
authorize the Risk Management Director to sign those doournenta, if any, necessary to amend the
insurance program.
PREPARED BY: Jeff Walker, CPCU, ARM, Director Risk Management
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file://C:'\AL,eiidaTest"\Exi)oi-t \1 33-.Ju1v0/(i20?-8.1/o202009\ I 6.0/(,'-?OCONSFNT%20ACF,-NDA\ I --- 7/?70009
COLLIER COUNTY
BOARD OF COUNTY
Item Number:
15=17
Item Summary:
Recommendation to approve and authorize the Chairman
to sign a second addendum to the
County Manager Employment Agreement for the purpose of correcting conflicting provisions
in Sections 12(D) and ',')(Cj of the agreement.
Meeting Date:
7!28/2009 9:00:00 AM
Prepared By
jeffrey A. Walker, CH-CU,
I
Risk Management Director
Date
ARM
kdministrative Services
Risk Management
7113112009 8:44:-18 AM
Approved By
Jeffrey A. Walker, CPf-'J,
ARM
Ri sV Management Director
Date
Administrative Services
Risk Management
7/1312009 8:44 AM
Approved By
Colleen Greene
Assistant County Attorner
Date
County Attorney
County Attorney Office
7113,'2009 2:27 Prol
Approved By
Len Guiden Price
Administrative Services Administrator
Date
Administrative Services
Administrative Services Admin.
71144'2009 4:0 PM
Approved By
OMB Coordinator
OWE Coordinator
Cute
County Manager's Office
Office of W'anacgervient & Budget
7/15!2009 9: 3 1 f--, 'M
Approved By
Jeff Klatzkow
County Attorney
Date
County A.tt3rney
CVcw!y Attorney Office
7!1512 '09 6:59 PM
Approved fly
Sherry Pry o r
Manogernent & Budget '?'.rialy "
D a te
County Mariager's Office
Office of Nll-a;-,ngemenL & Eudg-et
71c0 ' "c -5:55 F10
Approved By
Leo E'-. Ochs, Jr.
'vie:. ,y coumy Mariag-':
Este
Board of County
Commiss:oners
C oun'y 'V'3naq��r's Office
7i20/20'19 5-46 P119
file://C:'\AL,eiidaTest"\Exi)oi-t \1 33-.Ju1v0/(i20?-8.1/o202009\ I 6.0/(,'-?OCONSFNT%20ACF,-NDA\ I --- 7/?70009
SECOND ADDENDUM TO COUNTY MANAGER EMPLOYMENT
AGREEMENT
This Second Addendum to County Manager Employment Agreement (the "Addendum ")
hereby aniends, is attached to and is incorporated into that certain County Manager Employment
Agreement dated July 30, 2002, and as amended on November 1, 2005 by and between
COLLIER COUNTY, a political subdivision of the State of Florida (hereinafter "Employer ")
and JAMES V. MUDD (hereinafter "Employee"). and is dated this day of
2009.
WHEREAS, Employer and Employee have entered into the County Manager
Employment Agreement (the "Agreement ") whereby Employer agreed to employ the services of
Employee as County Manager ( "County Administrator ") of Collier County, as provided by
Collier County Ordinance Number 93 -72, as amended and Chapter 125, Part III, Florida Statutes:
and
WHEREAS, Employer and Employee wish to modify the terms of the Agreement in
accordance with the terms and conditions hereof.
NOW THEREFORE, in consideration of the mutual covenants herein contained, the
part), hereby agrees as follows:
I . RECITALS. The above recitals are true and correct and are hereby incorporated
herein by reference.
2. AMENDMENT OF SECTION 12 PARAGRAPHS (B) AND (C). Notwithstanding
any provision to the contrary, Section 12, paragraphs (B) and (C) are deleted in their
entirety and replaced as follows:
B. Unless otherwise specified in this paragraph, Employer agrees to pay for and
maintain on behalf of Employee and if applicable. Employee's eligible dependents,
all health, life; disability and other insurance policies provided by the Employer to its
other employees. Employer agrees to pay for and provide Group Life and
Accidental Death insurance under the Group Life and Accidental Death insurance
programs) with a death benefit equivalent to three times (3x) salary not to exceed a
maximum death benefit of 5500,000. Employer agrees to pay for and provide Short
and Long Term Disability insurance to the Employee. The Employer will take steps
to make disability benefit payments received by Employee exempt from Federal
income tax withholding by imputing the value of premium as income to the
Fmployee or through a supplemental disability payment sufficient to pay the
estimated Federal tax obligation.
C. Unused universal leave will be paid at Employee's current rate of salary upon
ternunation, resignation or contract expiration. Employee shall continue to have the
option of participating in the County Leave Bank.
3. REMAINING PROVISIONS. Except as modified hereby, the terrns and
conditions of the above — referenced Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Second Addendum as of the
date first above written.
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
0
Donna Fiala, Chairman
WITNESSES: EMPLOYEE:
Printed Name: James V. Mudd
Printed Name'
Approved as to form and legal sufficiency:
Oolleen M. -Greene
-
Assistant County Attorney