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HomeMy Public PortalAbout09-7436 Police Chief James Wright Sponsored by: City Manager RESOLUTION NO. 0 9-7 4 3 6 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, RESCINDING RESOLUTION 08-7361 AND AUTHORIZING THE CITY MANAGER TO SETTLE THE PENDING LAWSUIT BROUGHT BY FORMER POLICE CHIEF JAMES WRIGHT AND FURTHER AUTHORIZING THE CITY MANAGER TO ISSUE A FORM 1099 IN CONNECTION WITH PAYMENT IN EXCHANGE FOR A RELEASE AGREEMENT PROVIDING FOR INDEMNIFICATION TO THE CITY WHEREAS, James Wright ("Wright") was an employee and the former Police Chief of the City of Opa-locka("City"); and WHEREAS, Wright and the City entered into a written contract for employment with the City dated February 14, 2005 and; WHEREAS, the City and Wright agree that it is in the best interest of all involved to settle the pending litigation filed by Wright against the City of Opa-Locka; and WHEREAS, on October 8, 2008, the City Commission of the City of Opa-locka ("City Commission") adopted Resolution 08-7361 and voted to pay Wright as follows: Eight Nine Thousand Two Hundred and Forty Four Dollars and Ninety Two Cents ($89,244.92) for net salary; Thirty-Two Thousand Two Hundred Sixteen Dollars and Nine Cents ($32,216.09) for State FRS and third party provider retirement and deferred compensation benefits; and Twelve Thousand Four Hundred Eighty-Six Dollars and Twenty cents ($12,486.20) to third party providers for insurance benefits; and WHEREAS, settlement of the matter of James Wright v. City of Opa-Locka, Case # 08- 62478CA 6, will not require the City to pay any additional amount from the passage of Resolution No. 0 9—7 4 3 6 Resolution 08-7361, but would require City to issue Wright a Form 1099 in exchange for a Release and Settlement Agreement providing for full indemnification to City; and WHEREAS, the City Commission desires to rescind Resolution 08-7361 and authorize the City Manager to pay to Wright the negotiated settlement amounts specified in Exhibit "A" and enter into a Settlement Agreement with Wright for full and final settlement of any and all claims arising out of Wright's employment with City, as set forth in Exhibit"B." NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA: Section 1. The recitals to the preamble are hereby incorporated by reference. Section 2. The City Commission of the City of Opa-locka hereby rescinds Resolution 08-7361 in its entirety. Section 3. The City Commission of the City of Opa-locka hereby authorizes the City Manager to settle the pending lawsuit brought against the City by Former Police Chief James Wright and further authorizes the City Manager to issue a Form 1099 in connection with payment of the negotiated settlement amounts set forth in Exhibit "A" and in exchange for a Release and Settlement Agreement for any and all claims arising out of Wright's employment with City which provides for indemnification to the City, as set forth in Exhibit"B." Section 4. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 25 day of FFRRiIARY, 2009. Resolution No. 0 9-7 4 3 6 dip.0, di-via& JO " L KELL : Y MA OR Attest: Approved as to form and legal sufficiency: AOOP ZAP Deborah S. Ir ay Btu ade Nor eeks City Clerk City • ttorne- Moved by: JOHNSON Seconded by: TAYLOR Commission Vote: 4-0 Commissioner Tydus: YES Commissioner Holmes: OUT OF ROOM Commissioner Johnson: YES Vice-Mayor Taylor: YES Mayor Kelley: YES Sponsored by: City Manager RESOLUTION NO. 08-7361 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER TO MAKE A PAYMENT TO FORMER POLICE CHIEF JAMES WRIGHT IN THE AMOUNT OF EIGHTY NINE THOUSAND TWO HUNDRED FORTY- FOUR DOLLARS AND NINETY-TWO CENTS ($89,244.92) PAYABLE FROM ACCOUNT NUMBER 26-521110; AUTHORIZING PAYMENT OF THIRTY-TWO THOUSAND TWO HUNDRED SIXTEEN DOLLARS AND NINE CENTS ($32,216.09) ON BEHALF OF JAMES WRIGHT, TO THE STATE FRS AND THIRD PARTY PROVIDER FOR RETIREMENT AND DEFERRED COMPENSATION BENEFITS, PAYABLE FROM ACCOUNT NUMBER 26-521220; AND AUTHORIZING PAYMENT OF TWELVE THOUSAND FOUR HUNDRED EIGHTY-SIX DOLLARS AND TWENTY CENTS ($12,486.20) ON BEHALF OF JAMES WRIGHT, TO THIRD PARTY PROVIDERS FOR INSURANCE BENEFITS, PAYABLE FROM ACCOUNT NUMBER 26-521230, AS FULL AND FINAL SETTLEMENT OF ALL CLAIMS AGAINST THE CITY OF OPA-LOCKA. WHEREAS, James Wright ("Wright") was an employee and the former Police Chief of the City of Opa-locka("City"); and WHEREAS, Wright and the City entered into a written contract for employment dated February 14, 2005 and; WHEREAS, the City and Wright agree that it is in the best interest of all involved to mutually end the employer/employee relationship between Wright and the City; and WHEREAS,the City and Wright desire to resolve all of the outstanding issues related to and arising out of Wright's employment by the City; and WHEREAS,the City and Wright have reached a negotiated settlement of the claims on a non-admission of wrongdoing or liability basis; and Resolution No. 0 8-7 3 61 WHEREAS, the City and Wright have agreed to settle any and all claims of any kind arising out of Wright's employment with the City; and WHEREAS, the City and Wright have resolved all such issues to their mutual satisfaction and desire to compromise and settle all claims and causes of action whatsoever; and WHEREAS,the City Commission of the City of Opa-locka("City Commission") desires to authorize the City Manager to pay the negotiated settlement amounts to Wright and on Wright's behalf, for full and final settlement of any and all claims arising out of Wright's employment with the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF OPA-LOCKA,FLORIDA: Section 1. The recitals to the preamble are hereby incorporated by reference. Section 2. The City Commission of the City of Opa-locka hereby authorizes the City Manager to make payments in the negotiated settlement amounts of Eighty Nine Thousand Two Hundred Forty Four Dollars and Ninety Two cents ($89,244.92) to James Wright payable from Account No. 26-521110; Thirty-Two Thousand Two Hundred Sixteen Dollars and Nine Cents ($32,216.09) on behalf of James Wright, to the State FRS and third party provider for retirement and deferred compensation benefits, payable from Account No. 26-521220; and Twelve Thousand Four Hundred Eighty-Six Dollars and Twenty cents ($12,486.20) on behalf of James Wright, to third party providers for insurance benefits, payable from Account No. 26-521230, as full and final settlement of all claims arising out of Wright's employment with the City of the Opa-locka. Section 3. This resolution shall take effect immediately upon adoption. Resolution No. 08-7361 PASSED AND ADOPTED this 8 day of OCTOBER , 2008. ai JOSEPH L. L Y MAYOR Attest: Approved as to form and legal sufficiency: I , f Deborah S. Irby madette No ' eeks City Clerk City Attom Moved by: JOHNSON Seconded by: HOLMES Commission Vote: 3-1 Commissioner Tydus: YES Commissioner Holmes: NO Commissioner Miller: OUT OF ROOM Vice-Mayor Johnson: YES Mayor Kelley: YES City of Opa-locka Calculation of Severance Pay James B.Wright SALARIES AND WAGES Number of hours/pay period Salary Vacation Sick Total 2080 232 368 Rate per hour/pay period $ 54.82 54.82 $ 54.82 Gross earnings 114,025.60 12,718.24 20,173.76 $ 146,917.60 Less: Federal withholding 38,668.96 3,240.56 5,820.82 OASDI 47,730.34 5,772.74 788.53 1,250.77 7,812.04 Medicare 1,653.37 184.41 292.52 2,130.30 Net salaries and wages $ 67,930.53 $ 8,504.74 $ 12,809.65 $ 89,244.92 FRINGE BENEFITS FRS contribution payable to the State(20.92%of earnings,excluding sick leave) Deferred Compensation Plan($219.28*26) $ 26,514.81 Total amount to be paid to third party 5,701.28 $ 32,216.09 Medical insurance($1,453.28*5mos.) Dental insurance($72.76*5mos.) 7,266.40 Standard life/accidental death insurance($26*7mos.) 363.80 (no Standard Life premiums paid 2/08&3/08,thus the 7 mo.noted above) 182.00 Additional security life insurance(Base salary*$.041) Total amount that will be paid by the'end of Feb. 2009 4,674.00 $ 12,486.20 r� i SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE ("Agreement") is made and entered into as of the 28th day of January, 2009, by and between James Wright, ("Wright"), and the City of Opa-Locka, ("City"). (Wright and City may be collectively referred to as the "Parties"). Based upon the Parties' mutual obligations and commitments as agreed, to settle all potential claims asserted or that could have been asserted by Wright, which arose prior to the execution of this Agreement, and which would include all federal and state law claims, as set out below, and to release any and all further claims that may exist through the date of this Agreement. It is expressly understood and agreed that this Agreement shall not be construed as, or be deemed to be, evidence of an admission or concession of any wrongdoing, fault, liability or damage whatsoever on the part of either of the Parties hereto. The Parties specifically acknowledge that by entering into this Agreement, they admit no wrongdoing and no liability of any kind to the other. The Parties acknowledge that this settlement is being entered into to avoid the cost and expense of continued litigation. RECITALS: A. WHEREAS, Wright was employed by the City as the Chief of Police; B. WHEREAS, the parties acknowledge that they previously entered into a written contract for employment; and C. WHEREAS, the parties agree that it is in the best interest of all involved to have mutually ended the employer/employee relationship between the two of them; and D. WHEREAS, the parties desire to resolve all of the outstanding issues related to and arising out of Wright's employment with the City; and E. WHEREAS, the Parties have resolved all such issues to their mutual satisfaction and desire to compromise and settle all claims and causes of action whatsoever, and intend that the full terms and conditions of this Settlement Agreement be set forth herein; F. The Parties have reached a negotiated settlement of the claims on a non- admission of wrongdoing or liability basis; G. In addition, the Parties have agreed to settle any and all claims of any kind arising out of Wright's employment with the City in order to avoid all further litigation among the Parties; and H. The Parties hereto desire to set forth herein their understandings and agreements in connection therewith. 823508-1 73095v1 NOW THEREFORE, for and in consideration of the payments made by City to Wright inclusive of attorney fees and costs in the amounts referenced, incorporated and attached as Exhibit "A" hereto, the acknowledgments, mutual promises and covenants contained herein by the Parties, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 1. Recitals. The above Recitals are true and correct and are incorporated herein by reference. 2. Consideration and Payment. City agrees to pay, and Wright agrees to accept, a settlement of$191,619.89 as a gross amount. This amount is inclusive of the following: $146,917.60 for salary and wages; $57,672.68 for income taxes due to the Internal Revenue Service; $32,216.09 for FRS contribution and deferred compensation; and $12,486.20 for additional fringe benefits including, payout for medical, dental and life insurance. Payment shall be made by the City as full and final settlement for this claim, as well as any claims the Wright might have in the future against the City of Opa-Locka in connection with the case of James Wright v. City of Opa-Locka, Case #08-62478 CA or any similar actions raising the from similar claims. The settlement amounts are more specifically set forth in Exhibit "A". Exhibit "A" is hereby incorporated herein and made a part of this Settlement Agreement. City will issue a Form 1099 for this payment, and Wright shall be responsible for any and all tax consequences arising from this payment. Wright acknowledges and agrees that he is responsible for the payment of any and all federal, state and/or local taxes imposed on him by any revenue agency that are or may be owed taxes or other withholdings with respect to the monies paid to him hereunder. Wright agrees to indemnify and hold City harmless from any claims, demands, deficiencies, levies, assessments, executions, judgments or recoveries by any governmental authority or other third party, asserted against City because of Wright's failure to pay taxes, meet obligations or other withholdings. Wright further agrees to hold City harmless as to costs, expenses or damages sustained by City as taxes, attorneys' fees, deficiencies, levies, assessments, fines, penalties, interest or otherwise, as a result of his failure to pay such taxes, other withholdings or meet obligations. Wright represents that he is not relying in any way upon City or its counsel in this regard. 3. Time of Payment of Settlement Sum/Additional Consideration. City shall forward the Settlement Sum in the manner and form described in paragraph 2 to Wright, in care of his attorney. Wright shall make all efforts to quickly return an executed Agreement. City shall make all efforts to process the settlement following a commission vote on the matter of payment. 4. Allocation . Wright acknowledges that the monies paid hereunder by City to him is in full and complete settlement of his disputed claims against City and that 2 payment of the Settlement Sum described above, along with the covenants and promises contained in this Agreement, is considered to be the compromise by and between the Parties to completely settle all claims as set out herein, whether or not asserted by Wright, and that Wright is not otherwise entitled to said monies. Further, each party is to bear its own attorney's fees and costs in this matter. The settlement amount shall resolve and forever discharge the City of any obligations for future performance under the Contract for Employment and all outstanding obligations have been reduced to a monetary figure and is reflected in the amount to be paid under paragraph 2 above. 5. Release and Settlement by Wright. In exchange for the good and valuable consideration extended hereunder, Wright, on his own behalf and on behalf of his heirs, executors, administrators, legal representatives, or others acting on his behalf, hereby knowingly, willingly, and voluntarily settles, waives, releases and forever discharges City and its commissioners, directors, officers, employees, agents, managers, attorneys and any parent, subsidiary, affiliate or successor entity, (collectively referred to as "Released Parties"), from any and all rights, claims, debts, demands, actions, causes of action, suits, costs, damages (including back pay, bonus payments, benefits, wages, front pay, liquidated damages, compensatory damages, punitive damages, attorney's fees and litigation costs and interest available), right to reinstatement, expenses, obligations and other liabilities whatsoever, and specifically including actions to or for equitable or declaratory relief of any kind, whether or not asserted by Wright. These rights and claims include, but are not limited to, rights and claims arising under: the Fair Labor Standards Act of 1938, as amended; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; the Civil Rights Act of 1866, as amended; the Family and Medical Leave Act of 1993; the Employee Retirement Income Security Act of 1974 (ERISA); the Health Insurance Portability and Accountability Act of 1996 (HIPAA); the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA); the Equal Pay Act of 1963; the Rehabilitation Act of 1973, as amended; the Americans With Disabilities Act of 1990; the National Labor Relations Act; the Worker Adjustment and Retraining Notification Act; any federal or Florida False Claims Act, including but not limited to, 31 U.S.C. § 3729, et seq., and § 68.081, et seq., Florida Statutes; under any employment law of the State of Florida, including but not limited to, any wage law of the State of Florida (constitution, statute or common law); the Florida Civil Rights Act of 1992, as amended, Florida's general labor regulations (including but not limited to, Chapter 448, Florida Statutes, private whistleblower retaliation claims, wage, retaliation and/or attorneys' fee claims); claims under Florida's Public Whistleblower Act (Chapter 112, Fla. Stat.); and any other federal, state or local statute, rule, ordinance or regulation dealing with employment, discrimination and/or retaliation on any basis. In addition, Wright is unaware and has not complained that City has violated any federal, state or local statute, rule, ordinance, regulation, or company policy or procedure. Wright also agrees that this release and waiver includes any or all rights or claims for wrongful or retaliatory discharge, tortuous interference, and rights and claims based on theories of contract (oral, written or implied), promissory estoppel or tort (including but not limited to, negligence, defamation, etc.) and any or all rights or claims 3 of any kind or description under any statute, regulation, law, ordinance or rule (federal, state or local) or any other common law or equitable basis of action. 6. Release by City. The City herein releases Wright from all causes, causes of action, liabilities, lawsuits, potential lawsuits, actions or claims of any type whatsoever, whether in law or in equity arising out of or related to his employment in connection with this matter. 7. Return of Property. The Parties shall return to each other, all property in their possession, which properly belongs to the other upon execution and approval of this Settlement Agreement, except as expressly set forth herein. The Parties agree that if there is any property in the possession of either of the parties, which is required to be retained for a period of time by the other party, then the party seeking to retain the property shall provide a written statement detailing the specific facts and circumstances for which the property is being retained. Property to be returned is outlined in Exhibit "C„ 8. Cooperation by Wright. Wright hereby agrees to cooperate with and assist the City with any ongoing investigations related to activities which occurred during the term of and within the scope of Wright's employment with the City. For the purpose of this Settlement Agreement, Wright's obligation shall consist of, but not limited to, attending depositions, and if necessary, testifying at trial. All reasonable expenses and costs incurred by Wright in fulfilling this obligation shall be borne by the City. 9. Nondisparagement/Letter of Employment Confirmation. Wright agrees not to make any disparaging comments about City, or any individual associated with City. City agrees not to disparage Wright. 10. Coverage of Release and Future Damages. Wright acknowledges and expressly agrees that the settlement, releases and waivers contained herein extend to all claims of every nature and kind whatsoever, that he may have had against City, known or unknown, suspected or unsuspected, past and present, whether or not raised orally or in written form, through the date of this Agreement. 11. Voluntary Dismissal of Suit and Waiver of Future Claims. The parties agree that upon the final payment in connection with this matter that counsel for the Plaintiff shall deliver an Order for execution by the Court which dismisses the following action, with prejudice, each party bearing its own costs and fees, and which reserves jurisdiction to enforce the Agreement: In the Judicial Circuit in and for Miami-Dade County, Florida, Case No. 08-62478 CA 6 or similar case style. To the extent permitted by law, Wright waives the right to receive any further compensation or damages other than set forth herein if he institutes other claim(s), charge, action or legal proceeding against Released Parties, or if an agency or entity sues or brings any action against Released Parties, on his behalf for claims through the date of this Agreement. Nothing contained in this Agreement shall prevent either party from filing a lawsuit for the purpose of enforcing its rights under this Agreement. 4 12. No Pending Claims. Wright represents that he has no suits, claims, charges, complaints or demands of any kind whatsoever currently pending against City or any of the Released Parties with any local, state, or federal court or any governmental, administrative, investigative, civil rights or other agency or board. Wright further agrees that he will not initiate or institute any suit, claim, charge, action or legal proceeding, or assist any others in any action (unless under subpoena or under court order) against any of the Released Parties. 13. No Admission of Liability. It is expressly understood and agreed that this Agreement shall not be construed as, or be deemed to be, evidence of an admission or concession of any fault or liability or damage whatsoever on the part of any of the parties hereto. Wright specifically acknowledges that, in entering into this Agreement and City paying the consideration for this Agreement, Released Parties do not admit, and expressly deny, liability of any kind to Wright. The Parties acknowledge that the settlement is being entered into to avoid the cost and expense of further litigation. 14. Governing Law; Enforcement of Agreement; Attorneys' Fees and Costs. This Agreement shall be governed by and enforced in accordance with the laws of the State of Florida and any applicable federal law. The Florida courts shall have exclusive jurisdiction over the enforcement of this Agreement. Venue shall lie exclusively in the federal and state courts in Miami-Dade County, Florida. In the event an action is instituted for breach of this Agreement, each party shall bear its own attorneys' fees and costs, including attorneys' fees and costs on appeal. 15. Binding Effect. All of the terms, covenants, warranties and representations contained herein shall be binding upon the Parties, and their respective heirs, and successors, to the full extent permitted by law. 16. Construction.This Agreement shall not be construed more strongly against any party regardless of who is responsible for its preparation. The Parties acknowledge that each contributed and is equally responsible for the preparation of this Agreement. 17. Complete Agreement, Modification. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, oral or otherwise, with respect to the subject matter hereof. Neither this Agreement nor any term hereof may be changed, waived, discharged or terminated orally, except by an instrument in writing signed by all parties to this Agreement. 18. Headings, Gender and Singular. The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof. Unless the context otherwise requires, references in this Agreement to any gender shall be construed to include all other genders, references in the singular shall be construed to include the plural, and references in the plural shall be construed to include the singular. 19. Opportunity to Consider and Confer. Wright expressly warrants and represents: that before executing this Agreement, he has fully informed himself of the 5 terms, contents, conditions and effects thereof; that in making the settlement represented by this Agreement, he has had the benefit of the advice of counsel of his own choosing; that no promise or representation of any kind has been made to him, except as is expressly stated in this Agreement; that he fully understands and is in complete agreement with all terms of this Agreement; and, that he is entering into this Agreement of his own free will. Wright further expressly warrants and represents that he has relied solely and completely on his own judgment and the advice of his counsel in making the settlement represented by this Agreement and he agrees that he has not relied on any representation or statement not set forth in this Agreement. In addition, Wright understands and agrees that the City's obligations under this paragraph shall not be due until this Agreement has been agreed to and signed by both parties, and that any revocation period after execution of this Agreement has expired. 20. Severability. If any clause or provision in this Agreement is found to be void, invalid, or unenforceable, it shall be severed from the remaining provisions and clauses that shall remain in full force and effect. 21. Facsimile Transmissions. Facsimile Transmission copies shall be deemed sufficient to bind the parties to the terms of this Settlement Agreement. 22. Authority. Both Parties acknowledge and understand that this Agreement must first obtain Commission approval before taking effect. The City intends to place this Settlement Agreement as an Agenda item on January 28, 2009. 23. Signing of Agreement. The undersigned agrees that he has read this document consisting of six (6) pages prior to signing, which reading and signing took place in the presence of the undersigned witnesses. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above with the intent to be legally bound hereby. JAMES WRIGHT By: James Wright Dated: CITY OF OPA-LOCKA By: Title: Bryan K. Finnie, Interim City Manager Dated: 6