AGENDA MEMORANDUM

Meeting Date: October 25, 2010

From: Jay M. Evans, City Manager

Subject: Resolution authorizing approval of a Settlement Agreement with Charles Pinkston individually and on behalf of all similarly situated persons

Staff Recommendation:

Staff recommends approval of the Settlement Agreement with Charles Pinkston individually and on behalf of all similarly situated persons.

Analysis:

The proposed Settlement Agreement would resolve a Fair Labor Standards Act (FLSA) claim by Mr. Charles Pinkston, former police officer, and other similarly situated persons who choose to opt-in to the settlement. The issue being settled is (was) a long-standing practice of requiring officers to do 15 minutes of preliminary work before their shift and 15 minutes of postliminary work after their shift. The idea appears to have been that because their lunch break was paid, the 30 minutes did not violate FLSA. However, because the officers were still technically “on duty” during said break, the break may have been compensable anyway. This scheduling practice seems to date back to at least the administration of Police Chief Jim Brown.

The practice was eliminated when the 12-hour shifts were adopted in March of 2009. The potential damages were effectively stopped at that point. Damages are also limited by Federal law to only 2 years of back-pay.

The settlement will provide a fund of $150,000, inclusive of attorney’s fees/costs of $55,400. The fund will be paid on a claims-made basis with any undisbursed funds retained by the City. There are approximately 89 potential opt-in plaintiffs. Each will be notified by the plaintiff’s attorney of the potential to opt-in and those who do will be paid from the fund based on weeks of service during the two year “class period”. The fund also includes a $1,500 payment to Mr. Pinkston (original plaintiff) for his time and energy. In addition to the Settlement Fund, the City will be responsible for payment of FICA/Medicare/FUTA.

Options:

1. Approve the Settlement Agreement as proposed; or

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

Approximately $161,475, inclusive of the employer portion of federal income taxes. This expense will be paid from General Fund – Fund Balance.

Submission Date and Time: 10/20/2010 2:53 PM____

Department: __Administration_________

Prepared by: __Jay M. Evans_________

Attachments: Yes __X__ No ______

Advertised: ____Not Required __X____

Dates: __________________________

Attorney Review : Yes _X__ No ____

_________________________________

Revised 6/10/04

Reviewed by: Dept. Head ________

Finance Dept. __________________

Deputy C.M. ___________________

Submitted by:

City Manager ___________________

Account No. _________________

Project No. ___________________

WF No. ______________________

Budget ______________________

Available _____________________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO APPROVE A SETTLEMENT AGREEMENT BETWEEN THE CITY OF LEESBURG AND CHARLES PINKSTON INDIVIDUALLY AND ON BEHALF OF ALL SIMILARLY SITUATED PERSONS; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

THAT the Mayor and City Clerk are hereby authorized to approve a Settlement Agreement with Charles Pinkston individually and on behalf of all similarly situated persons to settle matters related to allegedly unpaid overtime compensation as described in Case No. 5:09-cv-545-Oc-10GRJ, United Sates District Court for the Middle District of Florida.

THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 25^th day of October, 2010.

__________________________

Mayor

ATTEST:

__________________________

City Clerk