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3.8. SR 10-17-2005 *Item 3.8.* MEMORANDUM TO: Mayor and City Council FROM: Pat Klaers, City Administr,;ator DATE: October 17,2005 . SUBJECT: Resignation Consistent with our discussion at the October 10, 2005 City Council meeting, I am submitting my resignation as the City Administrator for the City of Elk River. This resignation is subject to the City Council accepting the attached terms of resignation as outlined by Councilmember Motin. Recommendation It is recommended that the City Council accept the resignation of the City Administrator and the separation terms as outlined in the attached memo from Councilmember Motin; and the City Council appoint Lori Johnson as interim City Administrator per the attached letter from the Mayor. Page 1 of 1 Klaers, Pat From: Pmotin@aol.com Sent: Friday, October 14, 2005 9:32 AM To: pklaers@cLelk-river.mn.us Cc: Ijohnson@cLelk-river.mn.us; Mayorer@aol.com Subject: Terms of Resignation Pat -- As we discussed, the following are the suggested terms of your resignation and related benefits. Pat Klaers - Terms of Resignation Expected to be formally submitted and accepted 10/17/05. Last day as employee (termination date) - 10/24/05 (no benefits or accruals after that date, except as set forth below) Pat is to receive - as of 10/24/05: 6 months salary at current rate, plus total unpaid accrued vacation leave, plus one-third (1/3) unused accrued sick leave. All amounts are subject to applicable withholdings. Entire amount to be paid as a lump sum. COBRA benefits will be available. At Pat's option (to be determined prior to 10/24/05): The 6 months salary may be taken on a prorated basis over the 6 month period (to be paid on the regular payday schedule). If this option is elected, the City will pay Pat's medical insurance premiums (to the extent it does now) through the end of such 6 month period. and/or The amount payable relating to unpaid accrued vacation leave and one-third (1/3) unused accrued sick leave may be deferred and paid in a lump-sum in the first paycheck payable on or after 01/01/06. [Subsequent to the above discussion, it is my understanding that you decided to take your salary on a prorated basis, but that you wanted to have your vacation and sick leave paid in a lump-sum as soon as practical after 10/24/05. If you change your mind prior to 10/24, please advise Lori.] 10/14/2005 130650rono Parkway Elk River, MN 55330 October 13,2005 Dear city department and division heads: This letter is to inform you of the resignation of City Administrator Pat Klaers. His resignation will be formally accepted by the city council at the Monday, Oct. 17 meeting. Also at the Oct. 17 meeting, Finance Director and Head of Administrative Services Lori Johnson will be appointed by the council as interim city administrator. She -will serve in the -~------~ru:n a urnonfTof the-offrce-while--a-de-crs-rOln::l1:ntp-eJ:n:rarrene place m-errris-rmrde--bytln:cil y council. Please know that your interests, and the interests of your staff members, during this transition period are of utmost importance to myself and the council members. We feel very fortunate to have such a highly professional and competent staff. We are confident that you can carry on without any negative impact on the excellent service you provide to our constituents and others with whom the City of Elk River serves or does business. We are grateful to Pat for his many years of service to the city and wish him. well in his future pursuits. Please feel free to call either myself or any of the council members with any concerns or questions you might have now and into the future. Sincerely, ~.~ Mayor Stephanie Klinzing Phone: 763.635.1000 Fax: 763.635.1090 www.ci.elk-river.mn.us s: \ Council\ Council\Mayor\DepartmentHeads.doc