02-14-2002 VC SP-MMINUTES OF THE SPECIAL SESSION
• OF THE VILLAGE COUNCIL
OF NORTH PALM BEACH, FLORIDA
HELD TUESDAY, FEBRUARY 14, 2002
Present: David B. Norris, Mayor
Dr. Edward M. Eissey, Vice Mayor
Don Noel, President Pro Tem
Charles R. O'Meilia, Councilman
Joseph Tringali, Councilman
Dennis W. Kelly, Village Manager
George W. Baldwin, Village Attorney
Kathleen F. Kelly, CMC, Village Clerk
ROIL CALL
Mayor Norris called the Special Meeting to order at 6:30 p.nt. All members of the Council
were present. All members of staff were present except Village Attorney George Baldwin.
Labor Attorney James Cherof was present.
7'l~e purpose of the Special Meeting was to authorize the Village Manager to issue certain
employee benefits.
Vice Mayor F,issey moved to take the issue from the table. President Pro Tem Noel seconded the
motion, and all present voted aye.
The Council reviewed the recommendations of the Village Manager for a severance package as
negotiated by him with Tom Hogarth, Director of Public Services.
Village Manager Dennis Kelly reported to the Council that his assertion at a prior meeting
regarding buying back into the Pension Fund with the cash settlement was not permissible, and
Mr. Kelly apologized for the misunderstanding.
After review and further discussion, Councilman O'Meilia moved that no action be taken by the
Village Council, and recommended that the the Personnel Rules and Regulations be followed in
this matter. The motion died for lack of a second.
Councilman Tringali moved to accept the Village Manager's proposals as presented in his memo
dated January 28, 2002. Vice Mayor Eissey seconded the motion. The motion failed I-4, with
Councihnan Tringali voting aye, and Vice Mayor Eissey, Councilman O'Meilia, President Pro
Tem Noel and Mayor Norris voting nay.
More discussion regarding the fact that Mr. Hogarth would have been vested in eight months and
whether the termination should be postponed for that period of time. The option of terminating
• according the Personnel Rules and Regulations was also discussed. No resolution was reached
regarding this matter.
Minutes of Special Session
I Icld 1'ebruary 14, 2002
• Vice Mayor Lissey moved to accept the termination terms and severance package as
recommended by the Village Manager in his memo of January 28, 2002. Councilman Tringali
seconded the motion. The motion passed 3-2, with Vice Mayor Eissey, Councilman Tringali and
President I'ro Tem Noel voting aye, and Councilman O'Meilia and Mayor Norris voting nay.
AI).IDOUKNMI3NT
With no further business to come before the Council, the meeting adjourned at 7:10 p.m.
1~. Kelly, CMC, Village Clerk
•
2
O
Office of the Village Manager
DENNIS W. KELLY
(561) 841-3380. FAX (56]) 848-3344
E-MAIL: villn b a evcom.net
The Village of
NORTH PALM BEACH
501 U.S. Highway #I
North Palm Beach, Florida 33408
TO: Mayor and Village Council
FROM: Dennis W. Kelly, Village Manag r
SUBJECT: Tom Hogarth -Letter of Resignatio
DATE: January 28, 2002
Public Services Director Tom Hogarth has submitted and the Village Manager has
accepted his letter of resignation from his position as Public Services Director. Reference
the attached letter dated January 16, 2002. In his letter Mr. Hogarth has requested a
"severance package" as part of his resignation. Fundamentally, I have no problems with
the concept of the resignation package however, there aze two (2) requests I am not
authorized to approve.
The Finance Director was directed to complete a financial analysis of the benefit issues as
delineated in Mr. Hogarth's letter referenced above. Find attached a copy of that analysis
titled Tom Hogarth Benefit Issues. This analysis provides a snap shot of the cost for the
benefits Mr. Hogarth is requesting.
The Village Manager has accepted Mr. Hogarth's resignation effective ninety (90) days
from January 16, 2002, which in effect would make Tuesday, April 16, 2002 his last day.
The Village Manager has the authority to accept items two and four in the letter of
resignation but does not have the authority to approve or authorize items one and three
regarding full vesting in the retirement and health insurance coverage. Those require
Council authorization. Subsequently, the following is recommended in order to afford
Mr. Hogarth the opportunity to depart on a professional and amicable basis:
Provide health insurance coverage not to exceed six months following his last day
of employment (April 16, 2002) or upon his gaining employment elsewhere,
whichever comes first. This would be paid at the COBRA rate of $816.00 per
month for family coverage. That would equate to $4,896.00.
The benefit issues attachment explains the difference in pension benefits between
Mr. Hogarth's present value and future value relative to 75% vestment and the
100% vestment. The Village Council can look at this as two options. Mr.
Hogarth is requesting a one hundred and eighty (180) day notice and the Village
Manager is accepting ninety (90) days notice plus 90 days cash severance subject
to Council approval. Consider providing ninety day severance following the
ninety day notice and allow Mr. Hogarth to use the ninety day severance as he
sees fit. If he has not found employment by then, he can then use it to live off of
MEMORANDUM
or if he has already found employment by then, the ninety day severance can be
applied to his pension/retirement program or to a deferred compensation program
or an IRA. Ninety days severance would equate to $20,956.00. The Village
Manager's recommendation would be to provide him the ninety day severance
(cash) and let him exercise his own discretion as to how those monies would be
used.
In summary, the Manager's recommendation would be providing the health insurance
coverage not to exceed six months or upon Mr. Hogarth obtaining employment elsewhere
which ever comes first; reimbursing unused sick leave and vacation time per the
Personnel Rules and Regulations; and providing a lump sum cash payment of ninety days
severance in addition to the ninety day notice and Mr. Hogarth exercises his discretion as
to how it would be applied to benefits. For clarification, should he obtain employment
prior to the completion of his ninety day notice it would be my position he would still
receive the ninety day cash severance. I believe this to be a fair package and affords him
the opportunity to move on with his cazeer development and goals and affords the Village
time to start the process of finding his replacement. Whatever the Council approves in
concept, the budget transfers relative to a severance package will be brought forward by
the Finance Department over the next two or three meetings. It is believed to not be
necessary to complete the budget transfers before authorizing the severance package.
The transfers can be treated as a follow-up matter during regulaz Council meetings.
I want to convey to the Council that Mr. Hogarth has been extraordinarily professional
and business-like throughout ow discussions and negotiations regarding this issue. It is
my strongest recommendation that he be treated with the dignity and professionalism he
deserves. I believe approving these recommendations would be a step in that direction. I
have requested of the Mayor a special meeting for Tuesday, February 5, 2002 at 6:00
P.M. for the purpose of acting on the two (2) specific authorizations: pension and group
health. Thank you.
cc: Tom Hogarth, Public Services Director
Shaukat Kahn, Finance Director
George Baldwin, Village Attorney
Tom Hogarth
Benefit Issues
1. Pension
Current Status: Age 45
8 years of service
75% vested
Estimated lump sum payment at age 60:
75% vested = $ 175,315
100% vested = $ 233,752
Difference (at age 60) between 75% and 100% vested = $ 58,438
Present value of the difference ($ 58,438) at the current age of 45 = 17 l87
2. Unused Leave (as of 1-23-02)
a. Sick - 237 hours
237 hours x 50% x $ 40.30/hour = 4 776
b. Vacation - 118 hours
118 hours x $ 40.30/hour = 4 755
3. Health Insurance
Monthly premium paid by terminated employee (family coverage) - $ 816/month
Cobra coverage for 18 months x $ 816 = 14 688