10-Accepting the separation agreement
CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
12/14/10
Council Date: City Council Mayor Biard 10.
12/20/10
RECOMMENDED MOTION:
Move to authorize a Resolution accepting the separation agreement between the City Manager and City
of Paris and authorizing the Mayor to negotiate and execute all necessary documents.
POLICY ISSUES):
Personnel
BACKGROUND:
BOARD/COMMISSION RECOMMENDATION:
EXHIBITS:
Resolution
ACTION: BUDGET INFO:
❑ Financial Report ❑ Minute Order Expense $
❑ Department Report ® Resolution Budgeted Amt. $
❑ Presentation ❑ Ordinance YTD Actual $
❑ Public Hearing ❑ Other Acct. Name
Acct. Number
FISCAL NOTES:
REVIEWED AND APPROVED BY:
® Administration ® City Clerk ❑ EMS/IT ❑ Engineering, Planning, & Community Development
❑ Finance ❑ Fire ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Utilities
City of Paris Revised 2/04/08
182
DRAFT
S:\RESWORK\CURRENT\City Mgr Separation Agreement Res 12-20-10.docx
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
APPROVING AND AUTHORIZING THE EXECUTION OF SEPARATION
AGREEMENT BETWEEN CITY MANAGER, KEVIN CARRUTH AND THE
CITY OF PARIS TERMINATING HIS POSITION AS CITY MANAGER AND
DESIGNATING A QUALIFIED PERSON TO SERVE IN THE CAPACITY OF
INTERIM CITY MANAGER; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, a majority of the total membership of the City Council of the City of Paris
has expressed their dissatisfaction with the performance of Kevin Carruth as City Manager
for the City of Paris, Texas and has requested Mr. Carruth to resign his position as City
Manager; and
WHEREAS, Mr. Carruth has agreed to the terms of the Separation Agreement,
attached hereto as Exhibit "A", terminating his position as City Manager.
WHEREAS, in accordance with Section 22 of the City Charter of the City of Paris,
Texas, the City Council hereby accepts the resignation of Kevin Carruth from the position of
City Manager of the City of Paris for the reasons provided herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PARIS, PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby
in all things approved.
Section 2. That the City Council of the City of Paris, Texas hereby approves the
terms and conditions of the Separation Agreement attached hereto and incorporated
herein as Exhibit A and accepts the resignation of Kevin Carruth from his position as City
Manager for the City of Paris effective January 1, 2011.
Section 3. That the Mayor be, and is hereby authorized, to execute said
Separation Agreement in the form attached hereto as Exhibit A.
Section 5. That the City Council hereby designates
to serve as Interim City Manager with the accompanying authority and duties of office.
Section 6. That this resolution shall be effective immediately upon passage.
PASSED AND APPROVED this 20th day of December, 2010.
Will Biard, Mayor
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ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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SEPARATION AGREEMENT AND GENERAL RELEASE
This Separation Agreement and General Release ("Agreement") is entered into by and
between the City of Paris, Texas ("City") and Kevin Carruth ("Carruth").
WHEREAS, the City and Carruth have decided to sever their relationship and resolve all
obligations pursuant to Carruth's employment with the City, and
WHEREAS, the parties acknowledge that they have previously entered into a document
entitled "City Manager Employment Agreement" and have extended said agreement. The parties
acknowledge that some of the terms contained within the Agreement are susceptible to different
interpretations. The parties in this Agreement desire to settle any and all issues regarding said
City Manager Employment Agreement as well as any and all other issues that may exist between
the parties; and
WHEREAS, in consideration of Carruth signing the Agreement and releasing the City
from any and all claims which Carruth may have against it, including those contained in the City
Manager Employment Agreement, and the City signing this Agreement and approving such, the
parties will do the following:
1. Carruth shall continue to work and draw his current salary and benefits through and
until January 1, 2011;
2. Thereafter, Carruth will draw his salary and benefits from January 1, 2011 through
and until March 31, 2011;
3. On or about April 1, 2011, Carruth will receive a lump sum payment from the City to
be calculated as follows:
a. $140,000.00 less the total cost to the City for Carruth's employment from
January 1, 2011 through March 31, 2011 as described in No. 2 above. The
amount to be deducted from the $140,000.00 lump sum figure described
herein shall specifically include all cost to the City for Carruth's employment
during this time period and specifically includes the following: salary, City's
matching social security obligation, retirement contributions, car allowance,
insurance premiums for health, dental, disability, and vision; and
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b. The City will withhold from the lump sum payment all applicable income tax
withholding and FICA.
4. The parties acknowledge that Carruth will be responsible for all income tax
obligations accruing as a result of the payments pursuant to this Agreement;
5. Carruth, during the time described in No. 2 above, will be available to the City for
consultation and assistance in transition of city management; and
6. Carruth will, at the time of the execution of this Agreement, submit a formal letter of
resignation effective January 1, 2011.
NOW, THEREFORE, in exchange for the consideration described above, the parties
hereby forever release each other from any and all complaints, charges, claims, liabilities,
demands, debts, accounts, obligations, promises, suits, actions, causes of action, and demands in
law and in equity, including claims for damages, attorney's fees or costs, whether known or
unknown, which either may have at the time of the execution of this Agreement.
IT IS FURTHER ACKNOWLEDGED AND AGREED by the parties that should any
provision of this Agreement be declared or determined to be illegal or invalid by final
determination by any court of competent jurisdiction, the validity of the remaining parts, terms,
or provisions of this agreement shall not be affected thereby and the illegal or invalid part, term,
or provision shall be deemed not to be part of this Agreement.
CITY OF PARIS, Texas
Will Biard, Mayor
Executed this day of December, 2010.
CITY MANAGER
Kevin Carruth
Executed this day of December, 2010.
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