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Item B O~~Y~~~~E (305) 294-4641 Mayor Murray E. Nelson Damaron Building, Suite 2 99198 Overseas Highway Key Largo, FL 33037 PHONE (305) 852-7175 FAX (305) 852-7162 EMAIL: boccdis5@monroecounty-fl.gov (~.~ ---- BOARD OF COUNTY COMMISSIONERS Mayor Murray E. Nelson, District 5 Mayor Pro Tern David P. Rice, District 4 Dixie M. Spehar, District 1 George Neugent, District 2 Charles "Sonny" McCoy, District 3 * CONFIDENTIAL * INTEROFFICE MEMO June 21/ 2004 TO: Mayor Pro Tem Rice and Commissioners Spehar, McCoy & Neugent FR: Mayor Murray E. Nelson RE: UPDATE ON NEW COUNTY ADMINISTRATOR SELECTION After two weeks of negotiating with our First choice for County Administrator, David Bullock, I have received his notice of withdrawal from the position. Although many approaches to meet his salary and housing needs were explored, none were satisfactory to Mr. Bullock. If it pleases the other commissioners, I will instruct Mr. Colin Baenziger to present five additional candidates to the/Commission. I also think it would be in the best interests of the county and the negotiator to advertise the salary range as $125/000-$150/000 and leave the housing allowance to be negotiated after selection. It may also be advantageous to avoid housing allowances, as this could set up a precedent for hiring of future division and department heads. C: County Attorney Richard Collins B. O. O~~rY ~2~~E (305) 294-4641 Mayor Murray E. Nelson Damaron Building, Suite 2 99198 Overseas Highway Key Largo, FL 33037 PHONE (305) 852-7175 FAX (305) 852-7162 EMAIL: boccdis5@monroecounty-fl.gov To: David Bullock Dear David, ,... ..... ...-.....-.. , June 21,2004 BOARD OF COUNTY COMMISSIONERS Mayor Murray E. Nelson, District 5 Mayor Pro Tern David P. Rice, District 4 Dixie M. Spehar, District 1 George Neugent, District 2 Charles "Sonny" McCoy, District 3 It is with great regret that I received your email this morning at 9 a.m.. Although we tried many approaches to meeting your needs for salary and housing allowances, the combined package for base pay, section 457, and housing allowance exceeded $200,000. As all the other county benefits were in addition to this figure, the cost was too high for a starting figure. I am enclosing an alternate proposal that might meet your needs $155,000 Base salary Housing allowance 457 Contribution $155,000 - 5.000 - $155,000 24,000 5.000 $184,000 per year Future raises would be negotiated with the BaCC after the first year of employment. Sincerely, Murray E. Nelson Mayor Hanson-Donna From: Sent: To: Subject: Isabel Desantis[SMTP: idesantis@monroe-c1erk.com] Friday, June 18, 2004 1: 17 PM Donna Hanson Mayor's request Hi Donna, The Mayor just called our office for the FRS contribution that will be paid for the new Administrator _ David Bullock, with a $150,000 salary: FICA Retirement Total 7,785 14,215 172,000 J told him I would fax this info. to his office, but your fax # is busy. Pis. pass this along. Thanks! Page 1 Hanson-Donna ----------- -..-.-----..---- From: Sent: To: DAVID BULLOCK[SMTP:dbullock16@msn.com] Sunday, June 20, 2004 12: 16 PM Murray Nelson; boccdis1@monroecounty-fJ.gov; boccdis2@monroecounty-ff.gov; boccdis3 @monroecounty-fl.gov; boccdis4@monroecounty-fl.gov John Collins Monroe County Administrator Position Cc: Subject: Commissioners: It is with sincere regret that I withdraw from consideration for the position of Administrator. After extensive discussion with Mayor Nelson he has made it clear to me that the County Commission is unwilling to consider a base salary of more than $145,000 per year with a housing allowance and other considerations common to County Administrators' contracts in the nation. My wife and I have researched the housing costs extensively. Unfortunately the proposed package offered by the Mayor is not sufficient to allow us to relocate to Monroe County given the cost of housing. I tried to make it clear during my discussions with each of you and Mr. Baenziger that I would need to be in the high end of the advertised salary range and would need housing assistance (I also provided a draft contract to the Mayor and County Attorney). Now I have come to understand that is not possible. I believe I could have done an excellent job for you and the citizens of Monroe County. Thank you for allowing me to get to know each of you. I will continue to follow the progress the County makes in transforming its government into a customer focused, continuously improving organization. Dave Bullock From: Hanson-Donna rdsent: Monday, June 21, 2004 12:43 PM . . To: I:> 'Jamie Hyman'; 'US#1 Radio'; 'Steve Gibbs'; Alyson Matley-Keynoter; Ann Henson; Dave Whitney; 7h/~6 VJ(j...O ~f2.{) +0 /,ndependent; Jennifer Babson-Herald; KEYNOTER; News-Barometer; Rebekah Mills; Travis Tritten Cc: 'Danny Kolhage'; 'Isabel Desantis'; 'Colin Baenziger'; Collins-John; Shillinger-Bob; zz-County Administrator G;J-//o,/ ~ ~ ~ a - Ir~ ~8J::~ Page 1 ( , Hanson-Donna From: Sent: To: Cc: Subject: Dave Bullock[SMTP:DBULLOCK@scgov.net] Tuesday, June 15, 20044:40 PM Hanson-Donna@MonroeCounty-FL.Gov dbullock16@msn.com Re: COUNTER-OFFER - JUNE 15 ItJ Mayor Nelson.doc Mayor: thank you for your most recent email. I understand the postion you have set forth and the concerns expresses in your email. I understand your caution about a compensation package meeting "stiff resistance." I believe what I have proposed falls within the County advertised ranges. However I also understand what I heard from the County Commission and community members during interviews and other discussions. The work to bring sustainable improvements to Monroe County will require focus, experience with organizational change, development of strategic objectives, and hard work. I believe I can bring those things to Monroe County while working with the commission to make improvements in the lives of County residents and visitors. Please feel free to share my previous email with the rest of the Commission. I have attached it as a Word file so it is a bit easier to read. >>> <Hanson-Donna@MonroeCounty-FL.Gov> 6/15/2004 3:26:34 PM >>> David, Attached is Mayor Nelson's counter-offer to your email of June 15. Page 1 <<BULLOCK6-15-04CounterOffer>> Donna Hanson Executive Assistant to Mayor Nelson PH (305) 852-7175 FAX (305) 852-7162 Email: boccdis5@monroecounty-f1.gov Mayor Nelson: Thank you for speaking with me yesterday and today. Working through these contract issues is frequently stressful for all parties. I appreciate your straightforward approach. We discussed three major items of importance to work through. Base Compensation: Monroe County advertised nationwide for an Administrator in the unique environment of the Florida Keys facing a set of challenges that don't exist anywhere else in the nation. The salary range advertised was $125,000 to $175,000. The ad also referenced a willingness to consider a housing allowance. Given my current salary and the increased cost of housing, which Donna and' would experience, a salary of $170,000 is needed to help me qualify for a mortgage of sufficient size to buy a house. Housing Allowance: You had previously offered a housing allowance of $2,000 per month (Which is fully taxable). This allowance would yield approximately $1280 per month after taxes to apply toward housing. When combined with the salary above I could qualify for the mortgage needed to obtain a house. 457 Contribution: The IRS allows tax deferred compensation contributions of $15,000 per year. This is a very important of a total compensation package and is standard in City/County Manager contracts. We have researched housing extensively; consulted with a tax accountant, mortgage brokers, and a contract attorney. It is very important to me that' fully understand all elements of the proposed contact in the context of the costs we will incur to live in the Keys. In quickly reviewing the draft contract I received this morning these are the major issues. There are a few other minor issues I would want to discuss but I consider the above to be threshold issues. Mayor Nelson, as I explained to you, Donna and' are people who commit to a community and fully intend to buy a house in the Keys and live there through out my remaining career and well into retirement. Let me assure you and the other Commissioners I am committed to focusing my full professional energies to this position and to work closely with the County Commission to accomplish great things for Monroe County. This will be a journey that will require patience from all parties, some uncomfortable decisions, and an unwavering commitment to creating an excellent government. Thank you for your patience in working through this' am looking forward to hearing from you. David R. Bullock