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R-1192 - 07/24/2012 - AGREEMENT - Resolutions Supporting DocumentsITEM 6.F.3) OF OAt ak"�fr '• =Qlium AGENDA ITEM Regular Board of Trustees Meeting of July 24, 2012 SUBJECT: Settlement Agreement FROM: Blaine Wing, Assistant Village Manager BUDGET SOURCE/BUDGET IMPACT: Legal Settlement Agreement (Program 121 - 76350) RECOMMENDED MOTION: I move to approve the attached Resolution Approving And Authorizing The Execution Of A Settlement Agreement By And Between The Village Of Oak Brook And Paul And Tracy Jacobs Background/History: The Village Board continues to fight several legal cases, but after weighing the potential risk and costs of this particular case, both staff and the attorneys from Ancel Glink recommended pursuing settlement. After more than six (6) months of negotiations and Board authorization, the parties have reached an agreement. The agreement limits the Village's overall exposure from a lifetime for both the former employee as well as his spouse, to 65 years of age. Additionally, the agreement dramatically limits the possibility of incurring costs for the former employee's children. The overall possible cost was estimated at over $1 million dollars with an estimate of at least $50,000 in additional legal fees. The agreement terms that the Board authorized are expected to be entered and accepted by both parties on Monday, July 23rd, in DuPage County court. Although not exact, staff is estimating the settlement agreement to cost approximately $200,000, or about one -fifth the estimated cost if the Village lost the case. Recommendation: Staff recommends that the Village Board approved the attached Resolution. RESOLUTION 2012 -AG- SETT- PL -EX -R -1192 A RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT BY AND BETWEEN THE VILLAGE OF OAK BROOK AND PAUL AND TRACY JACOBS WHEREAS, Paul Jacobs ( "PlaintifF), filed a lawsuit in 2010 in the Court of DuPage County, Illinois, Case No. 10 MR 000261, claiming, among other things, that Plaintiff is entitled to benefits under the Public Safety Employee Benefits Act, 820 ILCS 320/1 et seq. ( "Lawsuit "); and WHEREAS, the Village and the Plaintiff now desire to reach a mutually acceptable, good faith resolution of all matters pending between them; and WHEREAS, the President and Board of Trustees have determined that settling the Lawsuit with the Plaintiff by entering into a settlement agreement is in the best interests of the Village; NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows: Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook. Section 2: Approval of the Agreement. The President and Board of Trustees hereby approve the Settlement Agreement by and between the Village and the Plaintiff and Plaintiffs spouse, Tracy Jacobs, in substantially the same the form as attached as Exhibit A ( "Settlement Agreement). Section 3: Authorization and Execution of the Agreement. The Village President and Village Clerk shall be, and hereby are, authorized to execute the final Settlement Agreement on behalf of the Village after review and approval of the final form of the Agreement by the Village Manager and the Village Attorney. Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and approval in the manner provided by law. [SIGNATURE PAGE FOLLOWS] Ayes: APPROVED THIS 20 day of July, 2012 Gopal G. Lalmalani Village President PASSED THIS 24'" day of September, 2012 ATTEST: Charlotte K. Pruss Village Clerk Resolution 2012 -AG- SETT- PL -EX -R -1192 Approving and Authorizing the Execution of a Settlement Agreement with Paul Jacobs Page 2 of 3 Resolution 2012 -AG- SETT- PL -EX -R -1192 Approving and Authorizing the Execution of a Settlement Agreement with Paul Jacobs Page 3 of 3 EXHIBIT A SETTLEMENT AGREEMENT SETTLEMENT AGREEMENT This Settlement Agreement ( "Agreement") is entered into by and between Paul Jacobs ( "Jacobs ") and Tracy Jacobs (his "spouse ") and the Village of Oak Brook ( "Village "): NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual covenants herein made and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties do hereby enter into the following Agreement: 1. Medical Insurance Benefits. The Village of Oak Brook will provide the following package of medical benefits for Jacobs, Jacobs' spouse and his family: a) Paul Jacobs will be enrolled in what the Village sets (as often as annually) as the Village's basic health insurance plan beginning on July 1, 2012. During the term of this Agreement the Village retains the right to add new plans, change insurance carriers, change third party administrators, or to insure as it deems appropriate, including through a health insurance cooperative or exchange. If Jacobs chooses anything other than the Village's basic health insurance plan, he must first complete the "Application and Policy Change" form as well as pay the monthly difference each and every month that he selects coverage under other than the Village's basic health insurance plan. Jacobs shall remain on the basic medical plan until he reaches age sixty -five (65).. If Jacobs is offered and/or receives medical coverage from an employer other than the Village after the effective date of this Agreement, then he must notify the Village of such circumstances. At that time, the Village may elect to become a secondary insurer /provider of medical insurance coverage for Jacobs or pay the medical insurance premiums of the employer. b) The Village will reimburse, on a quarterly basis, Jacobs for his spouse's (Tracy Jacobs) employee health premium cost not to exceed Four Hundred Six Dollars ($406.00) per month beginning on July 1, 2012 until she reaches age sixty -five (65) or remarries, whichever occurs earlier. If the employee's health premium cost exceeds $406 per month, then the Village, at its option, may elect to continue to pay such health premiums, or alternatively, elect to add her to the Village's basic health insurance plan. If Jacobs' spouse loses her health benefits because her employment is involuntarily terminated through no fault of her own, then within sixty (60) days thereafter she will be added to the Village's basic health insurance plan as designated from time to time by the Village. The Village will not be seeking back payment from Jacobs for any insurance premiums owed by him to the Village. C) Jacobs and his Spouse agree that their five children, Kyle (fourteen years of age); Daniel (eleven years of age); Logan (eight years of age); and Adam and Jayson (both six years of age), will not be covered by the Village's basic health insurance plan as they must continue participation in the "Illinois All Kids" program in order to obtain health insurance coverage. If the Illinois All Kids program or any similar State - funded health care plan is terminated and/or the children lose their eligibility through no fault of Jacobs and/or his Spouse or the children to participate in the plan, then within sixty (60) days thereafter, the children will be added to the Village's basic health insurance plan, as designated from time to time by the Village and will remain on the plan until the child/children reach the age of majority or until the end of the calendar year in which the child reaches the age of twenty -five (25), or if the child continues to be dependent for support or the child is a full -time or part-time student and is dependent for support. d) The Village agrees to pay Jacobs Fifteen Thousand Seven Hundred Eighty-Nine Dollars and Twenty -Nine Cents ($15,789.29) as reimbursement for any and all past health insurance expenses incurred by Jacobs and his family pending verification with reasonable records, since the Village discontinued its health coverage for Jacobs and his family. 2. Attorneys' Fees. The Village agrees to pay the sum of Twelve Thousand Dollars ($12,000.00) as attorneys' fees to Mr. Anthony Argeros. 3. Waiver. Jacobs and his spouse waives any and all claims they may have now or in the future for PSEBA (Public Safety Employee Benefits Act) benefits to which he, his spouse and/or family could be entitled to based upon Jacob's disability status. Jacobs acknowledges that he has received all compensation due him and that the Village has discharged all obligations to him as a result of his work on behalf of the Village, as well as any other expectation of renumeration or benefit. 4. Consideration. Jacobs acknowledges that he would not be entitled to the benefits provided for in paragraph 1 above in the absence of his signing this Agreement, that the benefits constitute a substantial economic benefit to Jacobs, and that they constitute good and valuable consideration for the various commitments undertaken by Jacobs in this Agreement. 5. Parties Released. For purposes of this Agreement, the term "Releasees" means the Village, and each of its elected and appointed officials, employees, agents, representatives, attorneys and insurers in their individual capacities. Plaintiff agrees to the dismissal with prejudice of all the claims in his lawsuit against the Village of Oak Brook, Case No. 10 MR 000261. 2 6. General Release. Jacobs, for and on behalf of himself and each of his personal and legal representatives, heirs, devisees, executors, successors and assigns, hereby acknowledges full and complete satisfaction of, and fully and forever waives and releases the Releasees from any and all claims, causes of action, demands, liabilities, damages, obligations, and debts (collectively referred to as "Claims "), of every kind and nature, whether known or unknown, which Jacobs holds as of the date Jacobs signs this Agreement, or at any time previously held against the Releasees, or any of them, arising out of any matter (with the exception of breaches of this Agreement) including but not limited to claims under Title VII of the Civil Rights Act; the Illinois Human Rights Act, the Civil Rights Act of 1991, the Illinois Civil Rights Act, the Illinois Wage Payment and Collection Act, the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Act, the Fair Labor Standards Act, and any other state or federal statutes or Village policies applicable to Jacobs' employment with the District. Jacobs acknowledges that he has been granted a period of 21 days within which to consider the terms of this Agreement and that he has consulted with an attorney prior to signing this Settlement Agreement. Jacobs further acknowledges that he may revoke this Agreement within seven (7) days after its execution, and that the Agreement shall not become effective or enforceable until the revocation period has expired. 7. Covenant Not to Sue. Jacobs represents and warrants that as of the date he signs this Agreement, he has not initiated or caused to be initiated against the Village any administrative claim, investigation, or proceeding of any kind. 8. Remedies for Breach. If Jacobs, or anyone on his behalf, initiates, brings or prosecutes any suit or action against the Village in any federal, state, county or municipal court, with respect to any of the Claims released in this Agreement, or if Jacobs breaches any of the terms of this Agreement, then (a) Jacobs shall be liable for the payment of all damages, costs and expenses (including attorneys' fees) incurred by the Releasees, or any of them, in connection with such suit, action or breach and (b) the Village shall no longer be obligated to make any payments not already made to Jacobs prior to Jacobs's breach of this Agreement. Additionally, in the event Jacobs files a suit or action in any court against the Village, the Village may require Jacobs to return all monies and benefits paid to him pursuant to this Agreement. Jacobs also waives his right to any attorneys' fees, compensation or other recovery whatsoever as the result of any legal action brought by him or on his behalf by any other party against the Village. If the Village breaches this Agreement, Jacobs shall not be held to have waived any Claims pursuant to this Agreement. 9. Taxes. Jacobs agrees that he is responsible for payment of all federal, state, and local taxes, of any type whatsoever, due and resulting from the payments to him of the above - described consideration. 10. No Admission of Liability. Nothing in this Agreement constitutes or shall be construed as an admission of liability on the part of the Releasees, or any of them. The Releasees expressly deny any liability of any kind to Jacobs, and particularly any liability arising out of or in any way related to his or his spouse's claim for PSEBA benefits from the Village. It is agreed 9 that evidence of this settlement shall be inadmissible in any other action of any kind, unless introduced by or with permission of the Releasees. 11. Non - Disparagement. Jacobs agrees that he will not, directly or indirectly, engage in any conduct or make any statement to any person or entity that is calculated or likely to have the effect of undermining, disparaging or otherwise reflecting poorly upon the Village. 12. Warranty of Understanding and Voluntary Nature of Agreement. Jacobs acknowledges that he has carefully read and fully understands all of the provisions of this Agreement; that he knows and understands the rights he is waiving by signing this Agreement; and that he has entered into the Agreement knowingly and voluntarily, without coercion, duress or overreaching of any sort. Jacobs acknowledges that he has been advised of his right to consult with an attorney or other representative of his choice prior to signing this Agreement. 13. Severability. The provisions of this Agreement are fully severable. Therefore, if any provision of this Agreement is for any reason determined to be invalid or unenforceable, such invalidity or unenforceability will not affect the validity or enforceability of any of the remaining provisions. 14. Entire Agreement/Integration. This Agreement constitutes the sole and entire agreement between Jacobs and the Village with respect to the subjects addressed in it, and supersedes all prior or contemporaneous agreements, understandings, and representations, oral and written, with respect to those subjects. Jacobs acknowledges that no promises or agreements have been made to him except those contained in this Agreement. Any and all prior settlements between the Village and Jacobs are not affected by this Settlement Agreement including, but not limited to all prior settlements of Jacobs' workers' compensation claims. 15. No Waiver. No waiver, modification or amendment of any of the provisions of this Agreement shall be valid and enforceable unless in writing and executed by Jacobs and the Village. 16. Confidentiality. Jacobs shall keep confidential the existence of this Agreement and its terns, and agrees that neither he, nor his attorneys, nor any of his agents, shall directly or indirectly disclose any such matters unless written consent is given by the Village, or unless required to comply with any federal, state or local law, rule or order. However, this paragraph will not prohibit Jacobs from disclosing the terms of this Agreement to his attorneys, accountants or other tax consultants as necessary for the purpose of securing their professional advice, or in connection with any suit or action alleging a breach of this Agreement. In view of the difficulty of determining monetary damages in the event of a breach of this confidentiality provision, it is agreed that Releasees shall be entitled to liquidated damages in the amount of One Thousand Dollars ($1,000), plus reasonable attorneys' fees and costs associated 'with enforcing this confidentiality provision, in the event of a breach of this paragraph by Jacobs, which remedies are agreed by Jacobs to be reasonable. Releasees shall also be entitled to injunctive relief and/or any other available remedy in the event of a breach of this paragraph by Jacobs. In the event that Releasees take steps to seek relief from Jacobs for an alleged breach of this paragraph, all of the remaining provisions of this Agreement shall remain in full force and effect. J 17. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Jacobs and his personal and legal representatives, heirs, devisees, executors, successors and assigns, and the Village and its successors and assigns. 18. Choice of Law. This Agreement and any amendments thereto shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to conflicts of law principles. PAUL JACOBS VILLAGE OF OAK BROOK IC Date: 2012. Date: 2012. TRACY JACOBS Date: 2012. 5