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HomeMy WebLinkAbout4.D.3. Authorization to Enter into seperation agreement __101111611 Consent Business 4. D. 3. SHt\KoI'F F TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator DATE: 09/16/2014 SUBJECT: Authorization to Enter into Separation Agreement(E) Action Sought The Council is asked to authorize the City Administrator to enter into the attached separation agreement with one of the City's Police Sergeants. Background One of the City's Police Sergeants has been off work or on light duty since January of 2013 trying to recover from an injury sustained at work. A functional capacity exam (FCE) was recently completed by the employee and after consultation with the treating physicians it has been determined that the employee remains unable to perform the essential functions of the position of Police Sergeant. The employee is a 17 year veteran of the Police Department and meets the eligibility standards for the City's recently offered retirement incentive program. However, accepting the retirement incentive as it was offered requires signing a release and waiver that lists the separation from employment as voluntary. This would not be in the employee's best interest given the need to apply for disability benefits through PERA and the City's long-term disability insurance. Therefore the attached release has been drafted in its place that notes the reason for the employee's separation as a medical retirement. It also provides for a slightly different means of supplying a continued insurance contribution, albeit in the same dollar amount as would have been provided under the standard retirement incentive program. Entering into this separation agreement recognizes the many contributions of this long-term employee and ensures that the City can move forward with filling the Sergeant position without concern about future challenges or lawsuits. Budget Impact There are sufficient funds in the Police Department's personnel budget to cover the cost of the separation agreement. Recommendation I recommend that the City Administrator be authorized to enter into the attached agreement with the employee in question. Relationship to Vision This agreement provides for the fair and respectful treatment of a long-term City employee and clears the path to filling this important public safety position promptly. Therefore it contributes to Goal E: Deliver effective and efficient public services by a staff of well-trained, caring and professional employees. Requested Action The Council is asked to offer a motion authorizing the City Administrator to enter into the attached separation agreement with a Sergeant in the Police Department. Attachments: Separation Agreement CITY OF SHAKOPEE RETIREMENT AGREEMENT and GENERAL RELEASE I, the undersigned Employee ("Employee") of the City of Shakopee, am medically retiring from my position as police sergeant with the City of Shakopee due to my inability to perform my job as determined by a functional capacity evaluation (FCE), which was conducted in 2014. A. Termination I am medically retiring from employment with the City of Shakopee and will terminate my employment on . In exchange for my retirement I will receive the payments and benefits outlined below if the appropriate circumstances occur. B. Benefits Paid I understand that the following benefits will be provided to me: • Fifteen weeks (600 hrs.) of pay at my current rate of pay;to be paid out to me on the date of my last scheduled paycheck. • Health Insurance: I will be applying for disability benefits with PERA. o If I do qualify for continued health insurance coverage under Minn. Stat. § 299A.465, the City of Shakopee will continue to make the employer contributions towards health insurance premiums as required by law. I will be obligated to pay the employee's share of the health insurance premium. o If I do not qualify for continued health insurance coverage under Minn. Stat. §299A.465, I have the option to remain on the City of Shakopee's group health insurance plan. The City of Shakopee agrees to continue making the employer contribution for the health insurance premium for a period of eight (8) months, and I am obligated to pay the employee's share of the health insurance premium. If I do not pay the employee's share of the health insurance premium within thirty (30) days of the due date, the City shall cease making its contribution toward the premium. Additionally, the City's contribution towards the health insurance premium will cease after eight (8) months, at which time I will have the right to continue the health insurance coverage under applicable state and federal law at my own expense. Page 1 of 3 C. My Acknowledgement of the Consideration and Purpose of the Release I acknowledge that I would not be eligible for the payments and benefits under this Agreement unless I sign (and then do not rescind) this Retirement Agreement and General Release. I received this offer from the City and reviewed it. I am responsible for seeking counsel from a financial advisor/lawyer or union representative if I so choose before signing this agreement. The City did not give me legal and/or financial advice. D. Time to Consider the Agreement and Release I understand that pursuant to the Age Discrimination in Employment Act, I have 21 calendar days to consider whether to sign the Retirement Agreement and General Release and to seek the advice of a financial advisor and/or lawyer. I understand that I am knowingly and voluntarily agreeing to waive the 21 calendar day consideration period by electing to sign the Retirement Agreement and General Release before the 21 calendar days have passed. The City encouraged me to take my time and carefully evaluate my circumstances before deciding if signing this agreement is the right thing for me to do. E. What I Am Releasing In consideration for the payments and benefits outlined above, I fully release and discharge the City of Shakopee from any and all claims, charges, complaints, liabilities of any kind, known or unknown(each a "claim"). I understand that by releasing the City of Shakopee from each and every claim, I am releasing all of my rights to bring any claim against the City of Shakopee based on any action, decision or event occurring prior to my signing this Agreement, including,without limitation, the terms and conditions of my employment with the City of Shakopee and the ending of my employment. Except as permitted by law, I will not commence any proceeding relating to any claim, and if the law permits me to commence such a proceeding, I agree that I may not seek or recover any monetary damages or other relief as a result of any such proceeding. My release includes any claim based upon: The Age Discrimination in Employment Act, 29 U.S.C. §§621, et seq.;federal, state or local employment discrimination laws, regulations or requirements, including,but not limited to Title VII of Civil Rights Act,42 U.S.C. §§2000e, et seq.; the Americans with Disabilities Act 42 U.S.C. §§12101, et seq.; and the Minnesota Human Rights Act, Minn. Stat. Ch. 363A;Minn. Stat. § 176.82, subd. 1 (retaliatory discharge damages); any other statute, ordinance, or regulation; any contract, quasi-contract or promissory estoppel; any tort, including Page 2 of 3 wrongful discharge, misrepresentation, fraud, infliction of emotional distress, or defamation; or any other legal or equitable theory. I also release and waive any rights and claims I may have under the Veterans Preference Act, Minn. Stat. 197.46. F. What I am Not Releasing I am not releasing any claims for post-termination benefits, such as retirement benefits, under the provisions of any employee benefit plan. I also am not waiving any rights I have with regard to events that occur after the date of this Release. I also am not waiving or releasing any right I may have to workers compensation benefits. G. If I Want to Rescind this Agreement and Release I understand that I have fifteen (15) calendar days after I sign this Retirement Agreement and General Release in which to change my mind and rescind it. In order for this rescission to be effective, it must be in writing and delivered to Kris Wilson, Assistant City Administrator, within fifteen (15) days from the date I sign this agreement. I understand that my delivery of a written rescission can be either by hand by 4:00 p.m. on the last day or by certified mail return receipt requested, postmarked by the last day. Employee Signature Date Signed Mark McNeill, City Administrator Date Signed Page 3 of 3