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HomeMy WebLinkAboutResolution 9126RESOLUTION NO. 9126 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING MEDIATED SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS WHEREAS, Keith Demarest was previously employed by the City as a patrol officer with the Police Department; and WHEREAS, Mr. Demarest allegedly sustained injuries in the line of duty, which the City denies; and WHEREAS, Mr. Demarest was granted Police and Fire Plan duty disability benefits by the Public Employees Retirement Association (PERA), pursuant to Minn. Stat. § 353.656, Subd. 1; and WHEREAS, Mr. Demarest claims to be entitled to continuation of health insurance coverage under Minn. Stat. § 299A.465, as a result of his duty disability, which the City denies; and WHEREAS, the parties participated in mediation on May 29, 2019 and reached a settlement of Mr. Demarest's claim under Minn. Stat. § 299A.465; and WHEREAS, the parties wish to resolve their differences without the cost, delay and uncertainty of litigating the matter; and WHEREAS, the Settlement Agreement provides for the resolution of the dispute between the parties as well as a release of all claims for the future payment of any health insurance premiums by the City on behalf of Mr. Demarest under Minn. Stat. § 299A.465. NOW, THEREFORE, BE IT RESOLVED THAT the above -referenced recitals are incorporated herein to this Resolution. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council hereby approves the Settlement Agreement in substantially the form as attached hereto as Exhibit A, the contents of which are incorporated herein by reference. NOW, THEREFORE, BE IT FURTHER RESOLVED THAT, the Mayor, the City Administrator and the City Attorney are hereby authorized and directed to take any and all additional steps and actions necessary or convenient to prepare the appropriate documents and/or agreements to facilitate the directives of the City Council as provided herein in order to accomplish the intent of this Resolution. Resolution 9126 June 10, 2019 Page 2 Adopted this 10th day of June, 2019. A��ll� Carol A. Mueller, Mayor ATTEST: I Nyle d<mu d, CiN Administrator The 148ouncis View Vision A Thriving Desirable Co mrmadi'v SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Settlement Agreement and Release of Claims is made by and between Keith Demarest ("Demarest") and the City of Mounds View ("City"). RECITALS WHEREAS, Demarest was formally employed by the City as a police officer; and WHEREAS, Demarest allegedly sustained injuries in the line of duty, which the City denies; and WHEREAS, Demarest was granted Police and Fire Plan duty disability benefits by the Minnesota Public Employees Retirement Association ("PERA"), pursuant to Minn. Stat. § 353.656, Subd. 1; and WHEREAS, Demarest claims to be entitled to continuation of health insurance coverage from the City through age 65 under Minn. Stat. § 299A.465 ("299A Claim"), as a result of his duty disability, which the City denies; and WHEREAS, the parties participated in mediation on May 29, 2019 and reached a settlement of Demarest's 299A Claim; and WHEREAS, the parties now wish to memorialize the terms of their mediated settlement in this Agreement. AGREEMENT 1. Settlement Payment. In full and final settlement and release of Demarest's 299A Claim, the City agrees to pay Demarest the sum of $90,000.00, as compensation for all claims against the City under Minn. Stat. § 299A.465. The parties agree that the settlement payment represents a compromise of the City's monthly insurance obligation to Demarest, which commenced the date of PERA's in -line -of -duty determination and would expire on when Demarest reaches the age of 65. 2. Taxes. Demarest is responsible for any tax obligations, state or federal, as a result of this settlement payment, and he agrees to hold the City harmless as to any of his tax liabilities. 3. Release of Claims. In consideration for the settlement payment, Demarest releases the City from any and all claims, causes of action, damages, costs, attorneys' fees, or liabilities of any nature, known and unknown relative to his actual and potential rights under Minn. Stat. § 299A.465, including but not limited to claims existing up to and including the date of this Agreement and Release, Settlement Agreement - Demarest June 10, 2019 Page 2 and further agrees not to commence suit based upon any of the foregoing. The claims released by this Agreement include any and all claims pursuant to Minn. Stat. § 299A.465, including, but not limited to, claims related to the continuation of healthcare insurance coverage by the City. Demarest also releases the City from all liability for any damages, actions, or claims, arising out of, or relating to, his separation from employment with the City, to the extent such claims are waivable. The parties agree that this Release is not intended to waive Demarest's Minnesota workers' compensation rights, if any, or his PERA Police and Fire Plan pension rights under Minn. Stat. § 353.656, subd. 1. 4. Consideration. Demarest agrees that the settlement payment is a full and fair payment and sufficient consideration for the release of claims in this Agreement. 5. No Admission of Liability. This Agreement is not an admission of guilty or liability by either party. 6. Binding Agreement. The Release of Claims in this Agreement will bind Demarest and his heirs, executors, administrators, assigns, agents, partners, and successors in interest. Demarest represents that no right, claim or cause of action covered by the Release has been assigned or been given to someone else. 7. Voluntary Agreement. Demarest represents that he (a) has read this Agreement and Release carefully; (b) understands its provisions; (c) has had an opportunity to consult with an attorney; (d) has not been influenced to sign this Agreement by any statement or representation by the City; and (e) enters into this Agreement and Release of Claims knowingly and voluntarily. 8. Public Data. This Agreement is public data. To the extent allowed by law, all other personnel data relating to Demarest is private personnel data. 9. Responsibility for Costs. Each party shall be solely responsible for its own costs, expenses, and attorney fees. 10. Non -precedential. This Agreement is reached based solely on the circumstances of the present matter and will not set a precedent for the handling of future grievances or claims related to the same subject matter. 11. Entire Aareement. This Agreement contains the entire understanding between the parties and supersedes all other agreements and understandings relating to the subject matter of this Agreement. Settlement Agreement - Demarest June 10, 2019 Page 3 12.Amendments. This Agreement may not be amended or terminated unless agreed to in writing by the parties and approved by the City's governing body. 13.Severability. If any part of this Agreement is construed to be in violation of any law, the remaining portions shall remain in full force and effect. 14. Governing Law. This Agreement is governed by the laws of Minnesota. 15. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same agreement. IN WITNESS WHEREOF, Demarest and the City have approved and executed this Agreement on the dates indicated below. Dated: June 10, 2019 City of Mounds View Carol A. Mueller, Mayor ATTEST: AX lA Nyle ikmy d, City Administrator Date: 2019 Keith Demarest