HomeMy WebLinkAboutWALTERS, PAUL M. - SEVERANCE
A-2013-031
Severance Ae:reement and Mutual General Releases
THIS SEVERANCE AGREEMENT AND MUTIJAL GENERAL RELEASES (hereinafter
referred to as "Agreement") is entered into between the City of Santa Ana ("Citi') and Paul M.
Walters ("Officer."). Officer and the City may be referred to herein individually as "Party" or
collectively as the "Parties". The purposes of this Agreement are to bring Officer's employment
with the City as City Manager and Police Commissioner to a conclusion in an agreeable manner
and to settle any and all outstanding disputes relating to his employment.
RECITALS
WHEREAS, Officer is the City Manager and Police Commissioner of the City, employed
under that certain City Manager Employment Agreement adopted on June 4, 2012 (Employment
Agreement);
WHEREAS, pursuant to the Employment Agreement Officer is entitled to certain Severance
remedies upon termination;
WHEREAS, Officer is willing to resign his employment with the City as City Manager and
Police Commissioner upon the terms and conditions in this Agreement; and
WHEREAS, the Parties would like to bring Officerts employment with the City as
City Manager and Police Commissioner to a conclusion in an agreed manner and settle any
and all outstanding disputes relating to that employment.
NOW, THEREFORE, in consideration of the premises and mutual promises herein
contained, it is agreed as follows:
1. Resie:nation Date. Officer agrees that his employment with the City as City
Manager and Police Commissioner shall be severed as of February 1,2013 ("Severance Date")
and his Employment Agreement shall be deemed terminated as of said date.
2. Severance Remedies. In exchange for Officer's waiver of certain procedural
and substantive rights as foun'd in the Employment Agreement and elsewhere, the City
agrees to all of the following:
A. Effective February 1, 2013, such that there is no break in Officer's
employment with the City, City shall re-employ Officer as the City Law Enforcement
Liaison pursuant to mutually agreeable terms in an employment agreement to be executed
by both the City and Officer. That employment agreement shall provide for a Term of one
year, no Termination except for Cause, salary of $264,999, PERS service credit, medical
benefits (health, vision and dental) and other mutually agreeable terms.
B. Within 20 days of receipt by City from Officer of the cost calculation by the
California Public Employees Retirement System (CaIPERS) of the cost of the purchase of
said benefit, City shall initiate the purchase of two (2) years of military service credit for
Officer's U.S. Air Force Military active duty service time in accordance with the rules and
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procedures ofCaIPERS.
C. Within 18 to 24 months from the date this Agreement is executed, City shall
rename the City's Police Administrative Building the Paul M. Walters Police
Administrative Building. City shall place in the lobby of that building a plaque reciting
Officer's service to the City. .
The Severance Remedies provided for above are subject to 1) the execution of this
Agreement by the City and Officer; and 2) expiration of the revocation period, without
revocation, under section 10 of this Agreement.
3. Payment For Earned Compensation. The City shall pay Officer for all earned
and unused accrued vacation and sick leave less applicable payroll tax withholdings and
deductions. Officer shall be able to receive said cash-out in up to four (4) separate payments
upon Officer's request over a period not exceeding two (2) years from the date of this
Agreement. .
4. UnemplOYment Benefits. Officer agrees not to apply for unemployment benefits
following his date of severance from the City.
5. Cooperation with Pen dine: Matters. Officer represents and warrants that he
will cooperate with City staff on trarisitioning all pending matters being handled by the City
Manager's office.
6. Return of Property. Officer represents and warrants that by the close of
business on the Severance Date, he will return to the City all property owned by the City
including all files, books, passwords, documents, vehicles, keys, entry cards, firearms and all
other physical or personal property of any kind owned by the City in Officer's possession.
7. Indemnification. The City agrees that Officer shall be entitled to the defense
or indemnification protections that may be afforded to public employees in Government
Code sections 825 through 825.6 and sections 995 through 996.6. Defense or indemnification,
if any, will only be available for conduct arising out of Officer's course and scope of
employment with the City up to and including the Severance Date. Notwithstanding the Cityts
general obligation to defend or indemnify Officer ifhe is charged with acts that occurred in the
course and scope of his employment, the City may refuse to provide Officer a defense or
indemnity under any of the circumstances allowed for doing so as set forth in Government Code
sections 825 through 825.6 and sections 995 through 996.6.
8. Mutual General Releases of Claims and Parties. Officer hereby irrevocably
and unconditionally releases and discharges the City, 'its affiliates, officers, employees, City
Council members, attorneys or agents (referred to herein individually as "Released Party" or
collectively as the "Released Parties") from any and all claims, charges, complaints, lawsuits,
liabilities, claims for relief, obligations, promises, agreements, contracts, interests, controversies,
injuries, damages, actions, causes of actions, suits~ rights, demands, costs, losses, debts,
liens, judgments, indebtedness, and expenses (including attorneys' fees and costs actually
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incurred), and all other claims and rights of action of all kinds and descriptions, whether
KNOWN OR UNKNOWN, suspected or unsuspected, actual or potential, which Officer now
has, owns or holds, or claims to have, own or hold against the Released Parties, at common
law or under any statute, rule, regulations, order or law, whether federal, state, or local, or on
any grounds whatsoever, with respect to any act, omission, event, matter, claim, damage, loss,
or injury arising out of and/or related in any way to the employment of and/or the termination
of such employment between OffIcer and the City, andlor with respect to any other claims,
matter, or event arising prior to the execution of this Agreement.
Without limiting the foregoing, Officer understands and agrees that he is waiving any
. rights he has, may have had, or may have, to pursue any and all remedies available to him under
~ny employment-related cause of action against the Released Parties,. including without
limitation, any claims for discrimination, harassment and/or retaliation, claims under the Ralph M.
Brown Act (California Government Code 954950 et seq.), the California Fair Employment and
Housing Act (California Government Code 912900 et seq.), the California Family Rights Act
(California Government Code ~ 12945.2), the Vnruh and George Civil Rights Acts (California
Civil Code ~51 et seg.), all provisions of the California Labor Code and any wage orders or
similar directives or authorities issued by any federal or state authority having enforcement
powers, the Constitution of the United States, the Constitution of the State of California, Title
VII of the Civil Rights Act of 1964 (42 U.S.C. ~2000e et seq.), the Age Discrimination in
Employment Act (29 V.S.C. S62l, et. seq.), the Older Workers Benefit Protection Act (29
V.S.C. S626 et seq.)the Equal Pay Act" (29 V.S.C. S206(d)), the Fair Labor Standards Act (29
V.S.C. S 201 et seq.), the Family and Medical Leave Act (29 U.S.C. 92601 et seq.), the
Employment Retirement Income Security Act of 1974 (29 U.S.C. SlOOI et seq.), Sections
1981-88 of Title 42 of the United States Code (42 U.S.C. ~1981 et seq.), the Americans with
Disabilities Act (42 U.S.C. 912101 et seq.), claims of retaliation or whistle-blowing (including
but not limited to California Labor Code 91102.5 et seq. and Government Code S12653),
claims for breach of any type of contract, including written, oral or implied, breach of any
covenant, promise or representation pertaining to Officer's employment, whether expressed or
implied, and all other claims arising in contract, tort or equity or under any other statute or
regulation, federal, state or local, up to the date of execution of this Agreement.
City hereby irrevocably and unconditionally releases and discharges Officer, his
employees, attorneys and agents (referred to herein individually as "City-Released Partyll or
collectively as the "City-Released Parties") from any and all claims, charges, complaints, lawsuits,
liabilities, claims for relief, obligations, promises, agreements, contracts, interests, controversies,
injuries, damages, actions, causes of actions, suits, rights, demands, costs, losses, debts, liens,
judgments, indebtedness, and expenses (including attorneys' fees and costs actually incurred),
and all other claims and rights of action of all kinds and descriptions, whether KNOWN
OR UNKNOWN, suspected or unsuspected, actual or potential, which City now has, owns or
holds, or claims to have, own or hold against Officer and the City-Released Parties, at common
law or under any statute, rule, regulations, order or law, whether federal, state, or local, or on
any grounds whatsoever, with respect to any act, omission, event, matter, claim, damage, loss, or
injury arising prior to the execution ofthis Agreement.
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9. Mutual Section 1542 Waivers. As a further consideration and inducement for this
Agreement, to the extent permitted by law, Officer and the City each hereby waive and release
any and all rights under section 1542 of the California Civil Code or any analogous state, local,
or federal law, statute, rule, order or regulation, he or it has or may have with respect to any
claims against each other, or against the Released Parties or the City-Released Parties.
California Civil Code section 1542 reads as follows;
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR-
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR. II
Officer and the City each waive any right he or it might have to invoke section 1542 now or in
the future with respect to the releases set out in this Agreement. Officer and the City each
recognize and acknowledge that factors which have induced him or it to enter into this
Agreement may turn out to be incorrect or different from what he or it had previously anticipated,
and Officer and City each expressly assume all of the risks of this wavier of section 1542.
10. SDecific Acknowlede:ment of Waiver of Claims Under ADEA and OWBPA.
The Age Discrimination in Employment Act of 1967 C'ADEA"; 29 U.s.C. ~~ 621~634) makes it
illegal for an employer to discharge any individual or otherwise discriminate with respect to the
nature and privileges of an individual's employment on the basis that the individual is age
forty or older. The Older Workers Benefit Protection Act ("OWBPA"; 29 V.S.C. ~~ 626 et
seq.) augments the ADEA and prohibits the waiver of any right or claim under the ADEA
unless the waiver is knowing and voluntary. By entering into this Agreement, Officer
acknowledges that, in exchange for consideration stated herein, he knowingly and voluntarily
waives and releases any rights that he may have under the ADEA and/or OWBPA. Officer
further acknowledges that he has been advised and understands, pursuant to the provisions of
the ADEA and OWBP A that:
a. This waiver/release is written in a manner Officer understands.
b. Officer is aware of and has been advised by a representative
or legal counsel of his own choosing of his rights under the
ADEA and OWBP A, and of the legal significance of his waiver
of any possible claims he currently may have under the ADEA,
OWBP A, or similar age discrimination laws.
c. Officer is entitled to a reasonable time of at least twenty-one
(21) days within which to review and consider this Agreement,
and the waiver and release of any rights he may have under the
ADEA, the OWBPA, or similar age discrimination laws, but he
may, in the exercise of his own discretion, sign or reject this
Agreement at any time before the expiration of the twenty-one
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(21) day period. To the extent that Officer takes less than 21
days to consider this Agreement prior to execution, Officer
acknowledges that he had sufficient time to consider this
Agreement with his legal counsel and that he expressly,
voluntarily and knowingly waives any additional time.
d. The waivers and releases set forth in this Agreement shall not
apply to any rights or claims that may arise after the effective
date of this Agreement
e. Officer has an opportunity to discuss this waiver and release
with, and to be advised with respect thereto, by an attorney of his
choice prior to executing this Agreement.
f. Officer has seven (7) days following his execution of this
Agreement to revoke this Agreement. If Officer desires to
revoke the Agreement, he must give express and actual written
notice of revocation to the City of Santa Ana within seven (7) days
after he (Officer) executes this Agreement. Such notice of
revocation shall be effective only if and when received in
writing by the City of Santa Ana Human Resources
Department before the close of business on the seventh
calendar day after Officer signs this Agreement.
OFFICER ACKNOWLEDGES BY HIS SIGNATURE ON THIS AGREEMENT THAT HE
FULLY UNDERSTANDS HIS RIGHT TO DISCUSS THIS WAIVER WITH LEGAL
COUNSEL, THAT HE HAS CAREFULLY READ AND FULL Y UNDERSTANDS THE
WAIVER, AND THAT HE IS VOLUNTARILY AGREEING TO WAIVE ANY CLAIMS
THAT HE HAS OR MAY HAVE UNDER THE AGE DISCRIMINATION IN
EMPLOYMENT ACT, THE OLDER WORKERS BENEFIT PROTECTION ACT, AND ANY
OTHER LAWS PROHIBITING AGE DISCRIMINA nON IN EMPLOYMENT ARISING
FROM OR RELATED OR A TTRIBUT ABLE TO OFFICER'S EMPLOYMENT WITH THE
CITY.
11. Emplovment Relinquished and No Reemploxment. Officer specifically
and expressly waives any right which he has, or may have, to be employed, reemployed, rehired,
and considered for employment or reinstatement by the City except as set forth in section 2 (A),
hereof.
12. Representation bv Counsel; Attornevs' Fees Allowance. Officer
acknowledges that he is fully aware of his right to discuss any and all aspects of this matter with
an attorney of his choice, that the City has advised him of that right, that he has carefully read and
fully understands the provisions of this Agreement and that he is voluntarily entering into this
Agreement. Within three days of the expiration of the revocation period, without revocation,
under section 10 of this Agreement, City shall pay Executive Law Group, Inc. the sum of
$7,500 as an attorneys' fees allowance for advising Officer in the negotiation and execution of
this Agreement.
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13. Entire Ag:reement and Admissibilitv. This Agreement constitutes the
complete understanding between or among Officer on the one hand, and the City and any other
Released Party on the other hand, and supersedes any and all prior agreements, promises;
representations, or inducements, no matter their form, concerning the subject matter of this
Agreement. The Parties desire that this Agreement represents a single integrated contract
expressing the entire agreement of the Parties with respect to matters set forth herein. No
promises, agreements, or modifications to this Agreement made subs~quent to the execution
of this Agreement by the Parties shall be binding unless reduced to a written instrument which
specifically r~ferences this Agreement and is signed by authorized representatives of the
Parties. The Parties to this Agreement represent that this Agreement may be used as evidence
in any subsequent proceeding in which any of the Parties alleges a breach of this Agreement
or seeks to enforce its terms, provisions or obligations.
14. Assig:nment of Rig:bts. Officer represents that he has not assigned or transferred
or purported to assign or transfer, to any person or entity, any claim or any portion of interest
against the City.
15. Severabilitv. Should any of the provisions or terms of this Agreement
be detennined to be illegal, invalid, or unenforceable by any court or governmental agency of
competent jurisdiction, validity of the remaining parts, tenns, or provisions, shall not be
affected thereby and said illegal, invalid, or unenforceable part, term, or provision shall be
deemed not to be a part of this Agreement.
16. Waiver. No waiver by any Party to this Agreement of any breach of any term or
provision of this Agreement shall be construed to be, nor will be, a waiver of any preceding
concurrent or succeeding breach of the same, or any other term or provision hereof. No waiver
shall be binding unless in writing and signed by the Party to be charged or held bound.
17. Jurisdiction. The Parties hereby understand and agree that this Agreement has
been negotiated and executed in the State of California and shall be governed by, and construed
under, the laws of the State of California. In the event of a dispute the parties hereto
specifically agree the judicial jurisdiction arid venue shall be with and in the County of
Orange, State of California.
18. Execution of Ag:reement. This Agreement may be executed in any number of
counterparts, each of which shall be deemed a duplicate original when all counterparts are
executed, but all of which shall constitute a single instrument. .
19. Mutual Non-Disparag:cment. Officer and City's elected and appointed officials
agree not to disparage the other party, and the other party's officers, directors, employees,
agents or family members, in any manner likely to be harmful to them or their business
reputation or personal reputation. In addition, as part of this Agreement, Officer and City
agree not to voluntarily cooperate with any litigation effort against the other or the other's
officers, employees, agents or family members; provided, however that this shall n~t prevent
any party from cooperating in a legal matter as required by law.
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IN WITNESS WHEREOF, the Parties have executed this Severance Agreement and
Mutual General Releases as of the I ~ of Febnmry, 2013.
I
OFFICER
~~r~ (l)~
R. era. Scott, EXecutive Law Group, Inc.
Employee's Legal Counsel
Approved as to Form:
ATTEST:
1ll1#vz ~~
Maria D. Huizar
Clerk of the Council
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