SEPARATION AGREEMENT
This Separation Agreement (hereafter “Agreement”), made and entered into by and between the City of Lawrence, Kansas, a municipal corporation, (hereafter “City”), and H. Michael Wildgen (hereafter “Employee”).
WHEREAS, City and Employee made and entered into an agreement for Employee’s services as City Manager for City, with an effective date of January 1, 2005, and which remains in effect for the year 2006;
WHEREAS, City no longer desires to retain the services of Employee as City Manager and Employee desires to resign from such position;
WHEREAS, Employee, in acceptance of and reliance upon the consideration, terms and conditions of Agreement desires to and does hereby resign his position as City Manager for City, effective 5:00 o’clock p.m., March 10, 2006; and
WHEREAS, City, in consideration of Employee’s resignation as City Manager effective 5:00 o’clock p.m., March 10, 2006, and the terms, conditions and agreements herein, hereby desires to enter into this Agreement.
NOW THEREFORE, for and in consideration of the above recitations, and the mutual covenants and agreements stated herein, the parties do hereby agree as follows:
1. Employee, by execution of this Agreement, does hereby resign effective at 5:00 p.m. March 10, 2006, as City Manager of the City of Lawrence.
2. For purposes of implementing this Agreement, Employee shall remain on City payroll until March 31, 2007.
3. In consideration of this resignation, Employee shall provide consulting services to City from March 11, 2006 through August 31, 2006 and shall be reimbursed according to his January 1, 2005, Employment Agreement and any changes per this Agreement.
4. Beginning September 1, 2006, City agrees to pay to Employee payments equal to seven (7) months aggregate base salary (through March 31, 2007) less required tax withholdings, and Employee’s share of family health insurance contributions, retirement and deferred compensation payments. In addition, City shall pay Employee for all allowable vacation leave accumulated through March 31, 2007, and 25% of all allowable sick leave accumulated through March 31, 2007, per City policy. Also, City shall pay to or for the benefit of Employee seven (7) month’s car allowance totaling $3,500.00 and the 2006 and 2007 whole life policy premiums for the policy purchased in 1990 which insures Employee’s life. The Employee’s individual and family health coverage shall be maintained through March 31, 2007, and the Employee will be eligible for COBRA health insurance coverage after that date.
5. City shall pay Employee the 2006 longevity payment and 25% of the 2007 longevity payment per current City policy.
6. The rate of pay for all hours worked by the Employee between January 8, 2006 and 5:00 p.m. August 31, 2006, will be increased by 3%. Said 3% being the salary adjustment rate increase given to all employees working for the City as of January 8, 2006.
All compensation described under Section 3 above will be similarly compensated at a 3% higher rate.
7. City shall continue to contribute to Employees’ 457 Retirement Plan for the seven (7) months of pay at the same rate included in the January 1, 2005, employment agreement.
8. City shall pay travel expenses, registration and housing for Employee to attend the 2006 ICMA Annual Conference held in September, 2006 and the Kansas City and County Managers Annual Conference in November, 2006.
9. Employee is currently and will be indemnified by the City for any claims, causes of action, lawsuits, legal defenses, travel and per diem, the basis of which are his actions during his term of employment with the City pursuant to the Kansas Tort Claims Act.
10. Employee shall return to City all City property in his possession, including but not limited to: a cell phone, laptop computer, access card, and employee badge and shall remove all personal items from his office no later than 5:00 p.m. March 10, 2006.
11. This Agreement represents the entire Agreement between the parties hereto reducing to writing any previous agreements whether written or oral and Employee hereby releases the City of Lawrence, its elected officials, and its employees from any further liability.
This Agreement is and shall be binding and obligatory upon and inure for the benefit of the parties and their respective heirs, trustees, personal representatives, successors and assigns.
The City of Lawrence, Kansas
By: __________________________
Dennis Highberger, Mayor
“City”
H. Michael Wildgen
“Employee”
ATTEST:
By: _____________________________
Frank Reeb, City Clerk