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Attorney reviews proposed ED contract changes; board narrowly approves resolution to permit bonuses from nonfederal development funds
Summary
Legal counsel reviewed a contract template proposing changes to severance, vehicle allowance, residency and termination thresholds; after debate the board approved Resolution 2024-11 giving the authority permission to consider bonuses payable from nonfederal development or affiliate funds (motion recorded as passing, discussed as "3 out of 4").
An attorney advising the New Smyrna Beach Housing Authority walked commissioners through recommended changes to the executive director's employment contract and a related resolution that would allow the board, acting as the development corporation or not-for-profit affiliates, to authorize bonuses from nonfederal development revenues. The counsel repeatedly framed many proposals as trade-offs designed to protect both the authority and the executive director.
On compensation structure, the counsel recommended linking an executive director's cost-of-living adjustment (COLA) to staff COLA practice so the ED receives the same percentage when the board approves systemwide increases. He also proposed adding a fixed automobile allowance (the consultant cited a typical $500–$750 monthly range) or, if the authority later provides a vehicle, spelled-out incidental-use rules for personal stops. Commissioners asked staff to supply the ED's historical mileage before agreeing to any allowance.
The more contested discussion focused on severance and removal procedures. The counsel suggested a severance increase tied to longevity (he recommended one year for long-serving EDs, versus the authority’s six-month term in the current contract) and argued a simple majority should be adequate for removal in some "for cause" circumstances. Several commissioners worried that lowering a supermajority removal requirement could open the ED to political or personal-terminations; one commissioner warned the provision risked devolving into a personality dispute and urged caution. The counsel said housing authorities are exempt from certain municipal statutorily imposed caps on severance and that his recommendations reflect industry trends.
The counsel then explained the proposed resolution (2024-11) that would permit the authority’s development corporation or not-for-profit affiliates to use nonfederal developer and management fees to provide bonuses to the executive director and staff. He stressed the distinction between salary (still paid from HUD where applicable) and bonuses paid from unrestricted nonfederal funds and said any actual bonus payment would require a separate corporate decision with board approval. The transcript records disagreement over proposed caps: the materials referenced both a percentage cap (one-third in draft language) and a 2% cap in discussion; commissioners asked staff to clarify the final cap language.
After further procedural clarification, the board took two formal votes on the agenda. The revised budget (Resolution 2024-10) was moved and approved earlier in the meeting. The board then voted on Resolution 2024-11 (permission to permit bonuses from nonfederal development or affiliate funds); a commissioner said, "I would vote no, but that's 3 out of 4," and the motion was declared passed. The development-corporation contract and related detailed implementation items were deferred to the next meeting.
Board members asked staff to consult the executive director before finalizing contract language and to prepare the specific draft contract and governance rules for a future meeting.
