HomeMy WebLinkAbout 16-17 Approving First Amendment to Separation AgreementA RESOLUTION
AGREEMENT
RESOLUTION NO.
APPROVING A FIRST AMENDMENT TO MUTUAL SEPARATION
WHEREAS, the Town of Firestone ("Town") and Wesley LaVanchy (the "Town
Manager") previously entered into that certain Mutual Separation Agreement dated May 25,
2016, (the "Agreement"), which Agreement sets forth certain general understandings of the
Parties regarding the considerations, terms and conditions of the Town Manager's separation
from employment with the Town;
WHEREAS, an amendment has been proposed to amend the terms of the severance pay
provisions of the Agreement, and the Board of Trustees by this Resolution desires to approve the
amendment and authorize its execution,
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FIRESTONE, COLORADO,
Section 1. The proposed First Amendment to Mutual Separation Agreement
("Amendment") between Wesley LaVanchy and the Town of Firestone to amend the terms of the
Mutual Separation Agreement is hereby approved in essentially the same form as the copy of such
Amendment accompanying this resolution.
Section 2. The Mayor is hereby authorized to execute the Amendment and the Mayor
is further authorized to negotiate and approve on behalf of the Town such revisions to the
Amendment as the Mayor determines are necessary or desirable for the protection of the Town,
so long as the essential terms and conditions of the Amendment are not altered.
INTRODUCED, READ, and ADOPTED this day of 4� , 20l 6.
TOWN OF FIRESTONE, COLORADO
1 Sorensen, Mayor
Medina, Town Clerk
rIRST AMENDMENT TO MUTUAL SEPARATION AGREEMENT
THIS FIRST AMENDMENT TO MUTUAL SEPARATION AGREEMENT is made and
entered into effective the day of , 2016 by and between Wesley LaVanchy
("the Town Manager"), and the Town of Firestone, Colorado, a Colorado municipal corporation,
("the Town"), (sometimes collectively referred to as the "Parties"), with reference to that certain
MUTUAL SEPARATION AGREEMENT by and between the Town Manager and the Town dated
May 25, 2016 (the "Agreement").
WHEREAS, in view of PERA rules, the Parties desire to amend Section 3 of the
Agreement with regard to retirement benefits payable in connection with severance pay;
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged and confessed, the Parties agree as follows:
1. Section 3 of the Agreement is hereby amended to read as follows (words to be
deleted are shown in s#r-ikeaut; words to be added are underlined);
3. Severance Pay. In recognition of the severance pay period identified
in the employment agreement and the Town Manager's service, the Town agrees to
pay the Town Manager twelve months' salary as severance pay, which shall be paid
for the period commencing July 1, 2016 and ending June 30, 2017, in biweekly
installments at the same time as employees of the Town are paid under the Town's
payroll schedule. The first and final installments of said severance pay shall be
prorated as appropriate to correspond to the foregoing severance pay period and
payment on the dates provided under the Town's payroll schedule. The Town and
Town Manager additionally agrees the Town shall withhold and pay for such
severance pay Federal Insurance Contributions Act ("FICA") taxes at the then -
current rates, with the employerportions to be paid by Town and the employee
portions to paid by Town Manager by deductions from amounts paid from the Town
to Town Manager. The Town additionally agrees to pay to Town Manager an
amount equal to 6.05% of the foregoing severance pay, such amount of $9,075 to be
paid as additional severance pay in a lump sum payment made on the first Town
payroll date occurring after August 1, 2016 and made payable to Town Manager,or
to any non-PERA account designated in writing by Town Manager to which the
Town may make payment consistent with applicable law. It is acknowledged_ and
weed that severance pay is not includable salary for purposes of PERA
contributions and therefore no contributions or payments of any kind shall be paid to
any PERA-affiliated plans with respect to any severance pay payments under this
Agreement, including without limitation any PERA defined benefit defined
contribution (401(k)), or deferred compensation (457 accounts, to eantinue and „��
b ' ,e s ee ay the—Toaim''s eantribution into the T,,.,.., Manager's er's PERA
t nu. 4, T 4 •1 t' aiainto i,
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sane -time payments nts of . eran 'a to b at the t., fate as is
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Severance pay shall be subject to all applicable
2. The Agreement, as herein amended by this First Amendment, is hereby ratified
and confirmed and remains in full force and effect in accordance with its terms.
IN WITNESS WHEREOF, the Parties have executed this First Amendment to Mutual
Separation Agreement effective as of the day and year first above set forth.
ATTEST:
Clarissa Medina, Town Clerk
TOWN MANAGER
Wesley LaVanchy
Date:
TOWN OF FIRESTONE, COLORADO
sy:
2
Paul Sorensen, Mayor