§ 20.456. 2005 Severance pay for appointed employees.

(a)

All full-time employees who are not in the classified service with the city, and excluding those appointees in the council's and mayor's offices, shall enter into an employment contract with the city. The employment contract shall set forth all the terms and conditions of employment, including, except for those employees who are appointed for a term, the condition of employment that the employee is "at will" and may be removed from the appointed position by the appointing authority with or without cause. For department heads who are appointed under Section 7.2(b) of the Charter the employment contract shall further provide that if the employee is removed from the employee's position, other than for malfeasance, misfeasance, or nonfeasance in office during the employee's first three (3) years, and does not accept another city position, the employee shall receive severance pay in a lump sum payment equal to six (6) months annual salary. The lump sum payment shall be reduced by one (1) month for each additional year of service in the position beyond the third year with the minimum lump sum payment equal to three (3) months of the employee's annual salary. The payment of this severance pay is pursuant to Minnesota Statutes Section 465.72 and 465.722 and is conditioned upon the employee agreeing to release the city from any and all causes of action or claims the employee may have against the city and complying with all applicable notice, waiver and rescission provisions in federal and state law and is in addition to any contribution to the health care savings plan authorized by section 20.440. Severance payments under this section shall be paid within thirty (30) days after the expiration of all applicable notice, wavier and rescission time periods. Employees who elect to not execute a general release of causes of action or claims have no right to any severance payment under this section. In no event shall any severance payment exceed the amount allowed under Minnesota law.

(b)

In addition to the severance payment in paragraph (a), for those department heads appointed under Section 7.2(b) of the Charter who are removed from the appointed position, provide the city the general release required in paragraph (a) and do not accept another city position, the city will pay the following:

(1)

If the appointed employee elects to continue medical insurance through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), one hundred (100) percent of the premium for medical insurance for the first six (6) months of COBRA continuance at the level of coverage, single or family, in effect on the date of the removal and for the medical plan in effect on the date of the removal.

(2)

If an employee elects to continue dental insurance through COBRA, one hundred (100) percent of the premium for dental insurance for the first six (6) months of COBRA continuance at the level of coverage, single or family, in effect on the date of the removal and for the dental plan in effect on the date of the removal. (2005-Or-057, § 2, 7-22-05; 2009-Or-031, § 1, 4-10-09; Ord. No. 2016-037 , § 1, 5-13-16)