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RESOLUTION NO. 48-2011RESOLUTION OF THE PLAINFIELD MUNICIPAL UTILITIES AUTHORITY AUTHORIZING SETTLEMENT OF EMPLOYEE CONTRACTS WHEREAS,

The Plainfield Municipal Utilities Authority(the "Authority") is a public body corporate and politic ofthe State of New Jersey and was created by the PlainfieldCity Council pursuant to Ordinance MC-1995-19 and inaccordance with the Municipal and County UtilitiesAuthorities Law, N.J.S.A. 40:14B-1 et seq., to implementand operate a municipal utilities authority which will _.-.------------prcY'\ride--certairr---solid-waste--and-sewerage-serv-ices---to-the--- inhabitants of th~ City of Plainfield (the "City"); and

WHEREAS,

in March, 2011 the Authority's ExecutiveDirector and Assistant Executive Director, together withthe Authority, jointly announced their separation from theAuthority; and

WHEREAS,

both employees havesince its creation and have playedits growth and in the establishmentwaste and sewer systems that serveCity; andserved the Authoritya significant role inof comprehensive solidthe residents of the

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WHEREAS,

at the time of the separation announcement,both employees were midway in their employment contractswith the Authority; and

WHEREAS,

in light of theseparation, it is arguable asemployees benefit entitlementconditions of the contracts; andnature of the employeesto the extent of theunder the terms and

WHEREAS,

after review of several issues, including thetenure of the employees at the Authority and mostimportant, the fact that certain severance funds have beenfunded through the Authority budgets at the recommendationof the Authority's Auditor/Financial Consultant, Lerch,Vinci

Higgins

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to be available in the event ofpotential payout liabilities by virtue of the employeesemployment contracts with the Authority, the Board hasdetermined to utilize the allocated severance funds thathave been budgeted totaling approximately $275,000 to beused in partial settlement of the employees' compensationclaims under their contracts. The parties agree that any

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further claims of the employees regarding any additionalmonies they claim may be owed to them under theircontracts, will be addressed by a third party neutralarbitrator to be mutually selected by both parties; and

WHEREAS,

the employees and the Authority further agreethat the last working day for the employees will be June30, 2011; and

WHEREAS,

as set forth in the Certification of Funds ofthe Authority's Chief Financial Officer, the funds to makethis payment have been budgeted for this purpose and

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budget or the Authority's rates.

NOW, THEREFORE, BE IT RESOLVED

by the PlainfieldMunicipal Utilities Authority as follows:

The aforementioned recitals areherein as though fully set forth at length.incorporated

The Board hereby authorizes to thepaymentemployees from the .above budgeted severance funds inpartial settlement to resolve the employees' compensationclaims under their contracts and to pursue arbitration withrespect to any other claims of the employees as set forthherein.3. This Resolution shall take effect immediately.