LMUD releases Holley Settlement Agreement details

Responding to a California Public Records Act request from Lassen News, the Lassen Municipal Utility District released a copy of the Settlement Agreement it reached with former General Manager Pat Holley.

According to the agreement, “As of July 5, 2023, claimant (Holley) resigned from his employment based on the Board of Director’s agreement to pay him the maximum severance allowed by law. Following his resignation, disputes arose regarding whether the maximum severance payment was 18-months severance salary along with 18-months health benefits under Government Code section 53260 et seq., or 12-months salary without health benefits in accordance with Claimant’s Employment Contract. At the time of his resignation, the performance evaluation of the claimant was ongoing Though the BOD believes the complaints were of concern, no action was taken by the BOD. Claimant did not have an opportunity to respond to the BOD’s concerns. Claimant believes he acted properly within the scope of his authority, and is entitled to contractural and other damages, and denies there was concern warranting his termination. Claimant believes he may have potential age discrimination claims against LMUD. On or about July 12, 2023, claimant filed an intake form with the California Civil Rights Department … Disputes have arisen between the parties concerning, among other things, alleged irregularities, management issues, breach of contract and perceived age discrimination … The parties now desire to settle the dispute and all claims related thereto.”

According to Government Code Section 53260, “All contracts of employment between an employee and a local agency employer shall include a provision which provides that regardless of the term of the contract, if the contract is terminated, the maximum cash settlement that an employee may receive shall be an amount equal to the monthly salary of the employee multiplied by the number of months left on the unexpired term of the contract. However, if the unexpired term of the contract is greater than 18 months, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by 18.”

According to the settlement agreement, “LMUD shall pay claimant a total of 18 months salary (est. pre-tax amount: $339,050.40) in one lump sum severance payment.”

LMUD also “shall maintain standard LMUD healthcare benefits for an 18-month period or until claimant finds other employment, whichever occurs first.”

Holley also agrees to release his claims against LMUD.

According to the settlement agreement, ” It is understood and agreed by and between the parties to this Settlement Agreement that in consideration for LMUD’s agreement as set forth in paragraph II of the agreement, and the other promises contained herein, claimant completely releases and forever discharges releases from all causes of action, claims, judgments, obligations, damages, and liabilities of whatever kind and character … “