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04/16/2014 - Personnel CommitteePERSONNEL COMMITTEE MEETING WEDNESDAY, APRIL 16, 2014 5:00 - 5:30 P.M. EAGAN MUNICIPAL BUILDING AGENDA I. AGENDA ADOPTION II. FIRE RELIEF AND PERA III. OTHER BUSINESS IV. ADJOURNMENT DDougherty, Molenda, Solfest, Hills & Bauer P.A. OUGIMRTY MOLENDA Attorneys I Advisors MEMORANDUM To: Eagan City Council From: Mike Dougherty, City Attorney 7300 West 147th Street Suite 600 Apple Valley, MN 55124 (952)432-3136 Phone (952)432-3780 Fax www.dmshb.com PRIVILEGED AND CONFIDENTIAL Date: 4/9/2014 Re: Michael Scott / Firefighter Relief Association Pension In discussions with City Administrator Osberg, the matter described in this memo is intended to be presented to the Personnel Committee on April 16, 2014. It is our opinion that the most appropriate forum for a discussion of the topic is the Committee. Chief Mike Scott is aware that this matter will be discussed by the Committee. In June of 2013, an attorney representing Mike Scott submitted a claim to the City and the Eagan Firefighter's Relief Association demanding a payment in excess of $80,000.00 to Chief Scott's pension fund. The author of the letter asserted that the City had wrongly denied pension payments that Chief Scott was entitled. The asserted claims extended back to 2006, when Mike Scott was hired as Fire Chief. The City's administration has denied that it took or failed to take any action that caused Chief Scott to suffer any damage. Nevertheless, since the receipt of the letter, the City Administrator and I have met with Mike Scott, as well as with officers in the Eagan Firefighter's Relief Association. The end result of these discussions is that Mike Scott is agreeable to accept a payment of $8,900.00 in full satisfaction and release of all claims regarding his Relief Association pension. Under the circumstances, it is an amount that the City Administrator and I believe to be reasonable to effectuate a settlement. As a preliminary step toward completing a settlement, I have prepared a Release of Claims to be executed by Chief Scott and to be delivered to the City in exchange for the payment of $8,900.00 by the City. Procedurally, as noted above, Mike Scott's claim will be reviewed by the Personnel Committee. If the Committee determines that it is able to recommend settlement, the resolution of this matter will be placed on the May 5 Council Agenda as part of the Personnel Items. Otherwise, the administration will respond appropriately to the direction of the Committee. While the Council has the ability to meet in a closed session to discuss the claim and/or the settlement proposal, a notification of the purpose for the closed session would need to be placed in the public record. If any Council Member has any questions concerning the claim, the settlement or the proposed process, please call Mr. Osberg. RELEASE OF CLAIMS IN CONSIDERATION of the an agreed upon sum of money paid by the City of Eagan, a Minnesota municipal corporation ("City"), the receipt of which is hereby acknowledged, Michael Scott ("Scott") absolutely and unconditionally releases, acquits and forever discharges the City and the Eagan Firefighters Relief Association, a Minnesota governmental entity ("Relief Association") from any and all claims, disputes, demands, actions, suits, contracts, debts, agreements, damages (including attorney fees), costs, expenses and other liabilities whatsoever, whether liquidated or unliquidated, absolute or contingent, that were or could have been asserted as of the date of this release, in connection with Scott's participation in the Relief Association's pension. The undersigned acknowledge that the City and Relief Association have denied legal liability and denied the nature and extent of any and all claims asserted by Scott. Scott hereto warrants that no promise or inducement has been offered, except as herein set forth, and that this release is executed without reliance, on any statements or representations by the parties released or their representatives, and that the undersigned is of legal age, legally competent to execute this release, and accepts full responsibility for its content. Michael Scott Subscribed and sworn to before me this day of 2014. Notary Public This is a Legally Binding Obligation. If not understood or you desire legal advice, consult an attorney.