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HomeMy WebLinkAboutItem 06.fJanuary 19, 2016 Item No.___ APPROVAL OF SEPARATION AGREEMENT AND RELEASE OF CLAIMS Proposed Action Staff recommends adoption of the following motion: Move approval of the attached Separation Agreement and Release of Claims. Overview In September 2014 former Lakeville Police Officer John Arvidson filed a discrimination case against the City of Lakeville with the Equal Employment Opportunity Commission and the Minnesota Department of Human Rights. Since that time, both parties have agreed to settle this case with the attached separation agreement and release of claims. Primary Issues to Consider • Does the attached agreement protect the financial interest of the City of Lakeville? Supporting Information • Separation Agreement and Release of Claims Justin Miller City Administrator Financial Impact: $13,000_________Budgeted: Y/N _N___ Source: __________________ Related Documents (CIP, ERP, etc.): ________________________________________ Community Values: Good Value for Public Services SEPARATION AGREEMENT AND RELEASE OF CLAIMS This Separation Agreement and Release of Claims ("Agreement") is made by and between John Arvidson ("Arvidson") and the City of Lakeville ("City"). WHEREAS, on or about September 23, 2014, Arvidson filed a discrimination charge with the Equal Employment Opportunity Commission ("EEOC"), Charge No. 444-2014-01515, and/or Minnesota Department of Human Rights ("MDHR"); and WHEREAS, the City has denied any liability or wrongdoing whatsoever relating to the allegations in Arvidson's discrimination charge; and WHEREAS, in order to avoid the expense and uncertainty of litigation, the parties desire to mutually resolve and settle all disputes among them, known and unknown, in accordance with the terms and conditions hereinafter set forth. NOW THEREFORE, in consideration of the recitals and promises made herein, the parties agree as follows: 1. Nonadmission. It is expressly understood and agreed that this Agreement does not constitute and shall not be construed as an adjudication or finding on the merits of any claim or potential claim by Arvidson. Nor does this Agreement constitute or be construed as an admission of wrongful conduct or liability on the part of the City or its current or former officials, employees, volunteers, agents, representatives, or affiliates. 2. Payment. In settlement and consideration for the release of any and all claims, grievances, or complaints, asserted or unasserted, the League of Minnesota Cities Insurance Trust ("LMCIT"), on behalf of the City, agrees to pay Arvidson and his attorneys the total sum of Thirteen Thousand an d no/100 Dollars ($13,000). Specifically, LMCIT will issue two separate checks and issue 1099 forms for the following payments: One check made payable to John Arvidson in the amount of Eleven Thousand Five Hundred and no/100 Dollars ($11,500), and one check made payable to Pitton Law PC in the amount of One Thousand Five Hundred and no/100 Dollars 1,500). 3. Tax Treatment. The City and LMCIT make no representations or warranties about any particular tax treatment of the payments. Arvidson enters into this Agreement only after consulting with his own attorney and/or tax advisor(s) as to the characterization and treatment of such payment. In the event a taxing authority asserts a claim for federal or state income taxes, social security taxes, unemployment taxes and/or Medicare taxes, Arvidson stipulates and agrees that neither the City nor LMCIT is responsible to said taxing authority for payment of that obligation, and Arvidson agrees to pay for any such obligation. Arvidson further agrees to indemnify, defend, and hold harmless the City and LMCIT from those claims if asserted. 4. Release of Claims. In exchange for the above referenced payments at Paragraph 2, Arvidson for himself, his heirs, administrators, representatives, successors, and assigns, hereby releases and forever discharges the City, LMCIT, and their current and former officers, agents, employees, successors, and assigns from any and all demands, debts, obligations or claims that were or could have been raised by Arvidson and that arise from or relate in any way to Arvidson's discrimination charge and/or claims and/or Arvidson's employment with the City, including, but not limited to, claims 2 i s. under the Age Discrimination in Employment Act(ADEA); Title VII of the Civil Rights Act of 1964, as amended; the Americans with Disabilities Act (ADA), the Family Medical Leave Act (FMLA); the Genetic Information Nondiscrimination Act (GINA); 42 U.S.C. §1981, §1981a, §1983, §1985, §1988; the Minnesota Human Rights Act MHRA); Minnesota's whistleblower statute, Minn. Stat. § 181.932; Minnesota's Veterans Preference Act (VPA); the Peace Officer Discipline Procedures Act (PODPA); Minnesota's open meeting law, Minn. Stat. § 13D.01 et. al; the Minnesota Government Data Practices Act (MGDPA), Minn. Stat. 13.01 et. al; Minnesota's independent review statute, Minn. Stat. §179A.25; defamation; and/or any other claims under common law and any other applicable federal, state or local statute or ordinance, existing at any time up to and including the date of this Agreement. 5. Dismissal of EEOC Charge. Within ten business days of receiving the consideration described paragraph 2 of this Agreement, Arvidson agrees to withdraw/dismiss his discrimination charge, No. 444-2014-01515 filed with the EEOC. 6. Consideration and Rescission Period. Arvidson understands and acknowledges that he may take up to 21 days from the date of receipt of this Agreement to consider it and seek counsel to advise regarding the terms. Arvidson also represents that if he signs this Agreement before the expiration of the 21-day period, it is because he has decided that he does not need any additional time to consider whether he/she wishes to release any potential claims. Arvidson understands and acknowledges he has the right to rescind or revoke his release of any claims he may have under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. § 621, et seq., if done within seven (7) calendar 3 days from the date he signs this Agreement. To be effective, any rescission must be: 1) in writing and hand-delivered or mailed to the City's attorney Jana O'Leary Sullivan within the seven (7) day period; (2) properly addressed to Ms. Sullivan at 145 University Avenue West, St. Paul MN 55103; and (3) if mailed, sent by certified mail/return receipt requested. This Agreement shall not become effective until the rescission period has expired. Arvidson understands that if he rescinds any portion of this Agreement, the City shall have the right to either void the Agreement in its entirety or to enforce the Agreement regarding the terms of the Agreement not related to the rescission period. 7.Voluntary and Knowing Action. Each person signing this Agreement specifically acknowledges that he/she has read the terms of the Agreement in full, has had the opportunity to consult with an attorney, understands the terms of this Agreement, and understands to be bound thereby in full. Those signing below in the representative capacity fully affirm or verify that he/she/they are authorized to execute this Agreement on behalf of their respective principals and that it is their principals' intent to be bound thereby in full. 8. Entire Agreement. This Agreement constitutes the entire Agreement of the parties. This Agreement supersedes any and all prior agreements. No modification shall be binding on any of the parties unless it has been agreed to by the parties in writing, signed by them, and identified as an amendment to this Agreement. There are no inducements or representations leading to the execution of this Agreement except as herein explicitly contained. 4 9. Governing Law. Interpretation and construction of this Agreement shall be governed by the laws of the State of Minnesota. 10. Severability. If for any reason a court of competent jurisdiction finds any provision of the Agreement to be unenforceable, the unenforceable provision shall be amended to the extent necessary to comfort to applicable law. If it cannot be so amended without materially altering the intention of the parties, it shall be severed here from. In either event, the remainder of the Agreement shall continue in full force and effect. 11. Counterparts. This Agreement may be executed in multiple counterparts, which shall be construed together as if one instrument. In addition, any party shall be entitled to rely on any electronic or facsimile copy of a signature as if it were the original. 12. Government Data. All signatories to this Agreement acknowledge that the release of information concerning this matter is governed by the Minnesota Government Data Practices Act, Minn. Stat. § 13.43, subds. 2(a)(6) and 10. IN WITNESS WHEREOF, the City of Lakeville and Arvidson have approved and executed this Settlement Agreement and Release of Claims. Date: ;. - ') 2015 o n Arvidson 5 CITY OF LAKEVILLE Date: 20 By Its 6