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HomeMy WebLinkAboutItem 06.lMay 6, 2013 - Item No. AGREEMENT AMONG THE CITY OF LAKEVILLE, L.E.L.S. AND CHAD HAGEN Proposed Action Staff recommends adoption of the following motion: Move to approve the agreement with Chad Hagen. Adoption of this motion will result in Chad Hagan's resignation, opening the position for re- hiring. Overview Military leave rights are provided to employees called up for military service through the federal USERRA law as well as Minnesota Statutes. These rights include the payment of up to 15 days of military leave for each year of absence as well as other benefit rights including the accrual of sick and vacation leave which would be granted to the employee upon their return from the service. In addition, they provide the right to reemployment upon completion of the military duty. Sergeant Hagen has been called for a five -year military leave. He understands that a five -year absence would be difficult for the city and therefore has proposed an agreement which would result in his resignation. The City Staff and Sergeant Hagen, along with his union representative, are proposing the adoption of the attached settlement agreement. The Personnel Committee has reviewed the agreement and is recommending its approval. Primary Issues to Consider • How will this settlement be financed? • How did the City arrive at the value of the settlement? Supporting Information • Agreement among the City of Lakeville, Minnesota, Law Enforcement Labor Services, Inc. Local 177 and Chad Hagan, Cindi JoosteU Human Resources Manager If more than a sentence or two needed to explain the financial impact, add to notes page. Financial Impact: $_26,236.34 Budgeted: Y/N _N_ Source: Notes: How will this settlement be financed? Sergeant Hagen`s position has remained unfilled since the beginning of his leave. This vacancy will cover the cost of the agreement. How did the City arrive at the value of the agreement? Staff negotiated an agreement with Sergeant Hagen based upon the following: The Labor Agreement between Police Sergeants and the City of Lakeville entitles Sergeant Hagen to severance based on his unused sick leave accruals and his years of service with the city. The current value of this severance is $7,044. According to Minn. Stat. §§ 192.26 - 192.261, Sergeant Hagen would have been entitled to 15 days of paid leave for each year of leave. These wages would have been more than $7,000 for each year of leave, or more than $35,000 in total. AGREEMENT AMONG THE CITY OF LAKEVILLE MINNESOTA, LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL 177 AND CHAD HAGEN THIS AGREEMENT, made and entered into this cZ day of AP, , 2013, by and among the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), LAW ENFORCEMENT LABOR SERVICES, INC. LOCAL 177 ( "Union "), and CHAD HAGEN, an individual ('Employee "). RECITALS A. Employee is employed by the City as a Police Sergeant and is a member of the Union. B. Employee has been call to military duty in the Air force. C. Employee understands his military leave rights including his right to reemployment under the Uniformed Services Employment and Reemployment Rights Act, (USERRA - 38 USC §§ 4301- 4333). D. Employee understands his military leave rights including his right to reemployment under Minnesota law (Minn, Stat. §§ 192.26 - 192.261). NOW, THEREFORE, in consideration of their mutual agreements, the Parties agree as follows: 1. Employee resigns from. his employment with the City effective immediately, 2. Employee knowingly and voluntarily notifies the City that lie does not intend to return to employment with the City after his military service. 3. Employee knowingly and voluntarily waives all his non - seniority rights and benefits with the City ordinarily granted to similarly situated employees on furlough or leave of absence including vacation accrual, sick leave accrual, holiday pay, health insurance, life insurance, cafeteria plan, pay, and paid leave pursuant to Minn. Stat. § 192,26. 4. If the recession periods set forth in paragraph 6 of this Agreement have passed without Employee rescinding the waivers and releases, City shall pay Employee $ 26,236.34 less customary deductions. 5. In consideration of the terms described in this Agreement, the Employee, for himself, his heirs, representatives, successors, and assigns, releases and forever discharges the City and its attorneys, agents, representatives, employees, former employees, insurers, heirs, executors and assigns of and from any and all past, present or fixture claims, demands, obligations, actions or Doc. No. 168137v.3 RNK: 4/512013 causes of action, at law or in equity, whether arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all claims for attorneys' fees, costs and expenses, including but not limited to all claims of any kind arising out of the Employee's employment, including but not limited to claims for emotional distress, discrimination, or constructive discharge. The Employee specifically releases the City from any claims for benefits, salary, severance payments, or any other benefits to which he might otherwise be entitled. In consideration of the terms described in this Agreement and release clause, the Employee further acknowledges that he is knowingly and voluntarily waiving all possible rights or claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 626, and all possible rights or claims arising under the Minnesota Human Rights Act, Minn. Stat. § 363A, et al,, and that he has had an opportunity to consult with his attorney concerning the waiver of and content of the rights available under these acts. It is specifically understood that this release is intended to include only those claims arising from any conduct, event or transaction occurring prior to the date of this Agreement and is intended to include any and all claims fox unknown injuries and/or damages, unanticipated injuries and/or damages and unexpected consequences of injuries and/or damages. Further, this release shall not affect any claims which could be made under any pension or retirement plan,, welfare benefit plans, or under workers' compensation. Pursuant to the Age Discrimination in Employment Act, the Employee has up to twenty -one (21) days to consider this Agreement and to seek the advice of his attorney or financial advisor before signing it. After the Employee signs the Agreement, the rescission/revocation periods set forth in paragraph 6 below will become effective. The Employee further acknowledges that he fully understands the terms of this Agreement and this release clause, and that he is signing the same freely and voluntarily. The Employee further acknowledges that he is waiving and releasing any rights that he might otherwise have under state or federal law with respect to a hearing with respect to any matter arising out of his employment with the City or arising out of matters set forth in this Agreement, 6. This Agreement is subject to the following rescission/revocation periods as provided by law; Act Revocation Period Age Discrimination in Employment Act,. 7 days 29 U.S.C. § 626(f) (1) (G); Minnesota Human Rights Act, 15 days Minn, Stat. § 363A.31, Subd, 2. Once the Agreement has been executed, the Employee understands that he has the right to rescind and/or revoke the waivers and releases contained in this Agreement. To be effective, the rescission Doc. No. 1681370 RISK; 4/5/2013 or revocation must be in writing and delivered to the City either by hand or mail within the 7 -day period for the Age Discrimination in Employment Act, or within the 15 -day period for the Minnesota Human Rights Act. If delivered by mail, the rescission or revocation must be: (1) postmarked within the applicable 7- or 15 -day period; (2) properly addressed to the City's Attorney; and (3) sent by certified mail return receipt requested. The address of the City Attorney is; Mr. Roger N. Knutson Campbell Knutson, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, Minnesota 55121 7. • Employee acknowledges and agrees that he has received full, fair and adequate 'representation from his Union and its Business Agent throughout this matter, and that Employee and the Union enter into this Agreement knowingly and voluntarily. Employee acknowledges that he has been provided with the opportunity to have this Agreement reviewed by an attorney. 8. Employee acknowledges that this Agreement was open for acceptance by Employee for 21 days after he was given a copy of this Agreement. CITY OF LAKEVILLE' BY; Matt Little, Mayor P Charlene Friedges, City Clerk 11. - r i I/Ra-FRA Dated: � -*r 2 0 s ; d Is EMPLOYEE: Cha agen LAW INC. MN LABOR SERVICES, Doc, No. 168137v.3 RNK: 4/5/2013