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Home My WebLink About11477RESOLUTION NO. 11477 A RESOLUTION APPROVING A SEPARATION AGREEMENT AND RELEASE BETWEEN THE CITY OF PUEBLO AND DAVID J. GALLI AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Separation Agreement And Release dated December 8, 2008, between the City of Pueblo and David J. Galli, a copy of which is attached hereto, having been approved as to form by the City Attorney, is hereby approved. SECTION 2 The President of the City Council is authorized to execute the Separation Agreement And Release in the name of the City and the City Clerk is directed to affix the seal of th e City thereto and attest same. BY Michael Occhiato Councilperson PRt %rtw unri, A :s r) a { CLERK INTRODUCED December 8, 2008 D O ED A e Background Paper for Proposed RESOLUTION AGENDA ITEM # 9A DATE: December 8, 2008 DEPARTMENT: Law Department TITLE A RESOLUTION APPROVING A SEPARATION AGREEMENT AND RELEASE BETWEEN THE CITY OF PUEBLO AND DAVID J. GALLI AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve the Separation Agreement And Release? RECOMMENDATION Approve the Separation Agreement And Release. BACKGROUND The Separation Agreement And Release ( "Agreement ") provides that David J. Galli ( "Galli ") will resign effective January 5, 2009 ( "Effective Date "). He will be paid all vacation leave accrued through the Effective Date. In addition, Galli will receive the following severance pay and benefits: (a) $79,747.98 on December 16, 2008, representing his monthly salary, life insurance and car allowance for six (6) months; (b) all sick leave up to a maximum 200 days accrued to December 16, 2008; (c) if Galli elects COBRA continuation coverage, City will pay Galli's COBRA continuation coverage health insurance premium for him and his family through December 31, 2009; and (d) Galli will retain his cell phone. The Agreement mutually releases the City and Galli from any claims or liability arising out of his employment or separation from employment with the City. Galli's separation from employment as City Manager shall be treated as a resignation without fault or cause. The City will adopt the PERA's Qualified Replacement Benefit Arrangement. Each party agrees not to make any disparaging statements or remarks against the other party. FINANCIAL IMPACT See Background. SEPARATION AGREEMENT AND RELEASE THIS SEPARATION AGREEMENT AND RELEASE ( "Agreement ") entered into as of December 8, 2008, by and between David J. Gatti ( "Galli ") and the City of Pueblo ( "City "), WITNESSETH: WHEREAS, Galli was appointed City Manager of the City of Pueblo ( "Manager ") for an indefinite term commencing November 8, 2004, and WHEREAS, City and Galli entered into an Employment Agreement dated November 8, 2004 (the "2004 Agreement "), and WHEREAS, Galli and City are desirous of amicably agreeing upon the terms and provisions of Galli's separation from employment as City Manager. NOW, THEREFORE, in consideration of the foregoing and mutual covenants contained herein, City and Manager agree as follows: 1. Galli hereby resigns as Manager effective 5:00 P.M. January 5, 2009 ( "Effective Date ") and City does hereby accept such resignation as of the Effective Date. 2. The 2004 Agreement is cancelled on the Effective Date and both City and Galli shall be released and discharged from all obligations thereunder. I Galli shall continue to receive salary and benefits through the Effective Date. Galli shall on January 5, 2009, be paid all vacation leave accrued through the Effective Date. In addition, Galli shall receive and City will make available to Galli the following severance pay and benefits: (a) $79,747.98, representing his monthly salary, life insurance premium and car allowance for six (6) months, will be paid to Galli on December 16, 2008. (b) City will pay to Galli on December 16, 2008 all sick leave accrued to December 16, 2008, up to a maximum of 200 days. (c) If Galli elects COBRA continuation coverage, City will pay Galli's COBRA continuation coverage health insurance premium for him and his family through December 31, 2009. (d) Galli shall be entitled to keep and retain the cell phone assigned to him as his own property. 4. City will on or before December 31, 2008 adopt the PERA's Qualified Replacement Benefit Arrangement ( "Arrangement "). Under the Arrangement if a PERA member retires and his PERA retirement benefit exceeds Internal Revenue Code Section 415(b) limits, the amount in excess of such limits wilt be remitted to the PERA employer. The PERA employer will then pay the excess amount received from PERA to the retired PERA member reduced by all applicable federal, state and local income, payroll and estate tax withholding amounts, if any. PERA will be the Administrator of the Arrangement. 5. Except for breaches of this Agreement, Galli hereby releases and forever discharges the City, its officers, employees, attorneys, agents, successors and assigns, of any and all claims, demands, causes of action of any nature whatsoever arising out of or in any way related to his employment or the separation of his employment with the City including, without limitation, claims for alleged discrimination based on the Age Discrimination in Employment Act, or any claim for damage for wrongful discharge or discrimination which may be brought against the City by or on Galli's behalf under federal or state law. It is the intention of the parties to make this release as broad and as general as the law permits. 6. Except for breaches of this Agreement, City hereby releases and forever discharges Galli, his heirs and personal representatives from any and all claims, demands, causes of action of any nature whatsoever arising out of or in any way related to his employment or the separation of his employment with the City. It is the intention of the parties to make this release as broad and as general as the law permits. 7. Galli hereby additionally acknowledges, represents and agrees: (a) This Agreement is signed and delivered by Galli as his free and voluntary act after being given the opportunity to review this Agreement and all its terms with third parties not affiliated with the City, including Galli's personal attorney. (b) City has advised Galli of his right to consider this Agreement for a period up to twenty -one (2 1) days prior to his execution of same and of his right to revoke this Agreement for a period of seven (7) days after its execution by the parties. This Agreement shall not become effective until the stated revocation period has elapsed or expired. 8. City agrees that Galli's separation from employment as City Manager shall be treated as a resignation without fault or cause. In the event Galli or a current or prospective employer of Galli requests an evaluation or reference, City will not provide any unfavorable information in response to such request, but will verify Galli's dates of employment, salary, employment history and positions held, and that he voluntarily resigned without fault or cause. 9. Galli agrees not to make any disparaging statements or remarks concerning the City or its officers. City and its officers agree not to make any disparaging statements or remarks concerning Galli. 10. Galli agrees to make himself available to City and its legal counsel, at City's request, without the necessity of City obtaining a subpoena or court order, in City's investigation, preparation, prosecution and /or defense of any actual or potential legal proceedings, regulatory action, or internal matter. Galli agrees to provide any information reasonably within his recollection. City will reimburse Galli $500.00 per day and all of his out -of- pocket expenses incurred as a result of City's; requests, or, at City's option, City will arrange to advance Galli's expenses or to incur his expenses -2- directly. 11. This Agreement shall be interpreted and enforced according to the laws of the State of Colorado and may not be modified or amended except by written instrument signed by the parties. 12. This Agreement constitutes the entire understanding and agreement between the parties regarding the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable by a court of competent jurisdiction, such determination shall not affect the other provisions of this Agreement which will remain in full force and effect. 13. This Agreement shall be binding upon and inure to the benefit of City and Galli and their respective heirs, personal representatives, successors and assigns. Executed in Pueblo, Colorado, the day and year first above written. CITY OF PUEBLO —7 �By David J. Gal ' _ _ President of the City Council Attest: City Clgrk Approved as to form: 7 u City Attorne -3-