HomeMy WebLinkAbout17- Severance and General Release Agreement - C. KukulskiSEVERANCE AND GENERAL RELEASE AGREEMENT
This Severance and General Release Agreement (hereinafter "Agreement") is
effective on the Effective Date as defined herein and is between Chris Kukulski of 1445
Cherry Drive, Bozeman, Montana ("Employee") and the City of Bozeman, 121 N. Rouse
Ave., Bozeman, MT 59771-1230 ("Employer"), (collectively "the Parties").
RECITALS
WHEREAS, Employee was employed by Employer pursuant to that certain
employment agreement dated February 1, 2016 ("Employment Agreement") and Article
III of the City of Bozeman Charter ("City Charter"); and
WHEREAS, Employer and Employee have agreed to terminate the Employment
Agreement as of the Effective Date (defined below); and
WHEREAS, the Parties have agreed that Employee will be provided with certain
severance benefits; and
WHEREAS, the parties enter into this Agreement in lieu of the City Commission
initiating procedures pursuant to Article III, Sec. 3.02 of the Bozeman City Charter;
WHEREAS, in consideration of these severance benefits, Employee has agreed to
release certain claims he might have against Employer arising out of his employment or
the termination of his employment;
NOW, THEREFORE, for and in consideration of the mutual promises,
obligations and covenants herein contained, the Parties voluntarily and knowingly agree
as follows:
AGREEMENT
1. Effective Date. This Agreement shall become effective on the day it is executed
by Employee and Employer ("Effective Date").
2. Termination. Employee's employment and duties as City Manager shall terminate
on April 1, 2017. Employee agrees that after April 1, 2017, he will not perform any work
for Employer, his access to all of Employer's electronic systems shall be shut off and he
shall have no authority to act on behalf of Employer or any related entities.
3. Release. Employee shall, and hereby does, on behalf of himself, his heirs,
successors and assigns, acknowledge full and complete satisfaction of, and does hereby
waive his right to damages from and release, absolve and discharge Employer, its
subsidiaries, divisions, and affiliated corporations, past and present, and each of them, as
well as their trustees, directors, officers, stockholders, agents, servants, employees,
representatives, heirs and attorneys, past and present, and each of them (collectively the
"Released Parties"), from any and all claims, demands, liens, agreements, contracts,
covenants, actions, suits, causes of action, complaints, wages, obligations, debts, labor
grievances, expenses, damages, judgments, orders, and liabilities of whatever kind or
nature in law, equity or otherwise, whether known or unknown, suspected or unsuspected,
related to or arising out of his employment or termination of his employment, which he
owns or holds or at any time heretofore owned or held against the Released Parties or any
one or more of the Released Parties, including specifically but not exclusively, without
limiting the generality of the foregoing, (1) except as required pursuant to 2-9-305, MCA,
any and all claims arising out of or in any way connected with Employee's employment
or payment of compensation by Employer or its affiliates under the Employment
Agreement, City Charter or otherwise; (2) any and all claims arising out of or in any way
connected with,the termination of Employee's employment with Employer; (3) any claim
that could arise under common (including civil tort) law and/or state or federal statutes,
including but not limited to, any and all claims under the federal Fair Labor Standards
Act, the Equal Pay Act, the Age Discrimination in Employment Act, Title VII of the Civil
Rights Act of 1964, as amended, the Civil Rights Act of 1991, the Americans with
Disabilities Act, the Family and Medical Leave Act, the Civil Rights Act of 1866, the
Montana Wrongful Discharge from Employment Act, the Montana Wage Payment Act,
the Montana Human Rights Act, including but not limited to state and federal tax laws,
and any other federal, state or local laws, without limitation or exception. The Parties
intend this Agreement to have a broad effect and to settle to the fullest extent permitted
by law all claims and disputes, without limitation of any kind or nature, whether known
or unknown, relating to Employee and his employment by Employer, subject to
Employer's obligation pursuant to Section 2-9-305, MCA (2015) and all amendments
thereto.
4. Severance Amount. In consideration for this Agreement, and in satisfaction of any
obligation to make payments under the Employment Agreement, Employer agrees to pay
to Employee the following amounts (the "Severance") to be mailed to the Employee at
the address listed in this Agreement unless the Employee provides written notice
otherwise: (1) all accrued and unpaid base salary through April 1, 2017 to be paid within
three (3) business days after April 1, 2017; (2) reimbursement of all expenses payable in
accordance with past practice as set forth in the Employment Agreement to be paid within
three (3) business days after April 1, 2017; (3) a total payment of $148,500.00 (one
hundred forty eight thousand five hundred dollars and zero cents), less required
withholdings, equal to twelve (12) month's base salary made, unless otherwise agreed to
between the Employer and Employee, in two installments the first of which will be paid
to the Employee within three (3) business days after April 1, 2017 and be equal to eight
(8) months of base salary ($99,000 (ninety nine thousand dollars and zero cents)) less
required withholdings and the second final payment ($49,500 (forty nine thousand five
hundred dollars and zero cents)) less required withholdings will mailed January 3, 2018
and be equal to four (4) months base salary. In addition, the Employer will make a
contribution within three (3) days after April 1, 2017 to the Employee's retirement
accounts according to the Employee's current distribution schedule in the amount of
$27,900 (twenty seven thousand nine hundred dollars). Finally; within three (3) business
days after April 1, 2017 the Employer will make a one-time payment to the Employee in
2
the amount of $5,000.00 (five thousand dollars and zero cents) for life and disability
insurance.
5. Leave Payouts and Vehicle and Housing Proration. Employer will pay out all
accrued and unused leave per City policy. Employer will pay Employee prorated vehicle
and housing allowance as of April 1, 2017.
6. Insurance. The Parties understand that continuation of medical benefits, including
dental and vision benefits, is governed by the appropriate provisions of the federal law
commonly known as COBRA, 29 U.S.C. §1162, et seq., and it shall be solely Employee's
responsibility to initiate any continuation of insurance coverage.
7. Acknowledgment of Compensation. Employee acknowledges that, except for the
sums set out in this Agreement, he has received full payment of all wages and
compensation due to him including, but not limited to, salary, vacation, and bonuses.
8. Non -disparagement. Employee and Employer further agree, as a consideration for
this Agreement and the payments made hereunder, that neither party to this Agreement,
by word, writing or action, shall do anything to disparage the other party, its business or
its services in any way.
9. Confidential Information. During the course of employment, Employee has
acquired certain "Confidential Information" of the Employer. "Confidential Information"
shall mean any information, including Intellectual Property Rights and Trade Secrets,
that is not generally known outside the Employer and that is proprietary to the Employer,
relating to any phase of the Employer's existing or reasonably foreseeable activities which
is disclosed to Employee by the Employer including information conceived, discovered
or developed by Employee. Employee agrees that he shall not use such Confidential
Information acquired during the term of his employment with the Employer and shall not
disclose to any person, other than an employee of the Employer any Confidential
Information obtained by him while in the employ of the Employer.
10. Severability. The terms of this Agreement are contractual and not a mere recital.
Should any provision, or part of any provision, or application thereof, be held invalid,
the invalidity shall not affect other provisions or applications of the Agreement which
can be given effect without the invalid provision or application, and to this end, the
provisions of this Agreement are declared to be severable.
11. No Representations. Employer makes no representations regarding the tax
consequences of this Agreement or any payments made hereunder.
12. Interpretation. The Parties agree that this Agreement shall be interpreted in
accordance with the plain meaning of its terms and not strictly for or against any party.
The terms of this Agreement shall be enforced pursuant to Montana law.
13. Notice. Notice to be given under this Agreement should be sent by first class mail,
postage prepaid to the parties at the following addresses:
3
Chris Kukulski
1445 Cherry Dr.
Bozeman, MT 58901
City of Bozeman
Attn: Mayor
P.O. Box 1230
Bozeman, MT 59771
14. Complete Agreement. The undersigned acknowledge that they have carefully read
and understood the contents of this Agreement. They further acknowledge and agree that
the consideration recited in this Agreement is the sole and only consideration for this
Agreement, and no representations, promises, or inducements have been made by any
party or its officers, employees, agents or attorneys thereof other than appear in this
Agreement. EXCEPT AS SPECIFICALLY SET OUT HEREIN, this Agreement
supersedes any other oral or written agreement or understanding between the parties
regarding any matter within the scope of this Agreement, including, without limitation,
the Employment Agreement.
15. Public Document. This Agreement is a public document and shall be available
for public inspection.
Employee acknowledges voluntarily entering into this Agreement on the date
written above, with full knowledge of the rights that he may be waiving.
DATED: 3 - Z7-17
DATED: 3I;q I
11
Chris Kukulski
Employer:
City of Bozeman
By: `4AOI —
Mayor Carson Taylor