87-1037 WHITE - C�TV CLERK COIlIICll /�►
PINK - FINANCE GITY OF SAINT PAUL J( p
BI.UERV - MAVORTMENT File NO. (' ��/ ��
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Council Resolution ,--=
Presented By ` ' �
Referred To Committee: Date
� Out of Committee By Date
RESOLVED, That based upon �he attached Sei��lemen�t Agreemen��
ana Release which is in a form approved d�y the City A-t-torney,
��he proper City officers are hereby au-�horizea and directed
��o pay out of the Tort Liabili�y Fund 09U70-511-000, to:
l. Eliza;�e-�h L. Tedesco, the sum of $28, 000, ���3�_ch is in full
se't�tleinent of any and all claims she has o-r r�1ay have as se-t
for�h in -che a'ttached Settlement AgreeMent.
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The City Attorney's Office has informed the City Council that
all of the parties involved in this personnel complaint have
agreed that no monies be withheld pursuant to Paragraphs Number
Four and Five of the Agreement and that any reference to such
liquidated damages be considered stricken from the Agreement.
COUNC[LMEN Requested by Department of:
Yeas �re�—' Nays
N].COSld�"
Re�ttmar� in Favor
'�`+tiScheibel
�Sonnen � Against BY
�Ti�ieida
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JUL 21 1987 Form Approved by City Attorney
Adopted by Council: Date `,�f���C��C " �C /,�L-,��
Certified P• •s b oun il t By L�
By
Approve 1Aavo . e � — �- —� ��� 2 � PPr d y Mayor for i io to Co�ncil
B - -
P�tS�,p AU G 1 1987
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JOINT STATEMENT OF POSITIONS
OF THE PARTIES IN THE MATTER
OF THE COMPLAINT OF ELIZABETH
� TEDESCO AGAINST THE CITY OF
SAINT PAUL AND GREG BLEES .
The parties involved in the matter of the complaint of
Elizabeth Tedesco against the City of Saint Paul and Gregory
Blees have agreed to the release of the following information
which is being supplied pursuant to a request by the Mayor and
the St. Paul City Council for a public clarification of the
settlement presently before the Council . This is not meant to be
a complete summary of all the facts involved in this matter, nor
is it to be interpreted as an agreement by any of the parties to
a particular version of any conduct described. The factual
allegations supporting any complaint by Ms. Tedesco against the ,
City and Mr. Blees are in dispute.
POSITION OF ELIZABETH TEDESCO
Elizabeth Tedesco made a personnel complaint against her
former supervisor Blees and threatened to sue the City because it
was the ert:ployer of Greg Blees and because of the City' s own
actions or failure to take actions . Several legal claims would '
be made against the City including sex discrimination and retalia-
tion, intentional infliction of emotional distress , negligence
and defamation, with damages alleged in excess of $50, 000 for
. each claim. Blees would also be named individually on som� of
these claims.
Her allegations in support of her claims include the following:
Starting in September , 1986 , Tedesco complained to City
officials that Greg Blees made communications of a sexual� . nature
• ' t�o her and that she was offended, publically humiliated and ;
. degraded by the comrrunications . She alleges she had already
, asked Greg Blees to stop these communications . These communications
had the effect of discriminating against Ms. Tedesco by creating
a hostile and offensive working environment in violation of the
Minnesota Human Rights Act. SYie followed the established procedures
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under the existing City sexual harassment policy in filing her
� complaint. .
Based on her belief that the environment was hostile and
offensive, she requested a transfer. As a result of the transfer, ,
Tedesco lost the job security she had acquired in the budget
department. She alleges that she was retaliated against when the
City allowed Greg Blees to impose "layoff conditions" on her
transfer that were not placed on any other employees . When it
became apparent that �he City did not take seriously her complaint
of sexual harassment or retaliation, she began medical treatment
and counselling for emotional distress , and she retained a private
attorney t� pursue legal remedies including revisions in procedures
for handling complaints and the sexual harassment policy.
Tedesco alleges the City does not have in place adequate
• procedures that would assure a full investigation of a complaint
, and that would protect a complainant. Tedesco alleges that the .
City failed to investigate , failed to communicate with her ,
failed to take appropriate actions and failed to protect her from
retaliation.
POSITION OF GREG BLEES
Mr. Blees has admitted making some inappropriate statements
that were meant to be humorous comments , never having an intent
to either embarass or harm Ms. Tedesco. He denies that the
conduct alleged affected Ms . Tedesco' s work environment and that
a job transfer was necessary. Greg Blees recognizes that a
supervisor is responsible for setting an example for all employees .
He also specifically denies any subsequent claim of retaliatory
conduct, particularly those allegations concerning the processing
of Ms . Tedesco ' s job transfer. At all times after the filing of
the complaint in September, 1986 he acted conscientiously fulfill-
ing his duties and responsibilities as the Budget Director for
the City of Saint Paul . �
POSITION OF THE CITY OF ST. PAUL
Both Ms . Tedesco and Mr. Blees have been with the City for
. years and are exceptional employees , often working many long
hours beyond the normal forty hour week under very stressful
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circumstances . Each has skills and experience irt:portant to the
City. It is one of the City' s goals in this settlement that
these experienced employees remain with the City so they may
continue to provide excellent service in their respective fields.
The City denies that the conduct alleged, albeit inappropriate,
created a hostile and intimidating environment as defined by the
Minnesota Human Rights Act. The City also denies that a job
transfer was necessary or that any retaliation took place, including
the imposition of conc�itions on the transfer.
As a practical matter , the City realizes that an employer is
often times held responsible for the acts of its supervisory
employees whether or not the specific acts complained of are
authorized or forbidden by the employer and whether or not the
employer knew or should have known of their occurrence.
The City recognizes that as an employer it is responsible ,
for the education and training of its employees and the establish-
ment of a policy that effectively causes a thorough investigation
of complaints to take place and prevents the reoccurrence of the
alleged conduct. It is vital that a complainant in a harassment
case be comfortable in knowing their job security and future are
not threatened by their reporting the conduct to their employer.
Blees ' supervisors followed the procedures set forth in the '
City' s sexual harassment policy in their investigation of the
matter. In retrospect it is possible that expanded communications
with Ms. Tedesco concerning Mr. Blees ' role as the Budget Director
, in approving her transfer and informing her of the City' s ini,tial
action on the complaint might have diminished Ms. Tedesco ' s
emotional stress and fears concerning her job security. The
City' s policy is presently being redrafted to clarify the procedures
a supervisor shall follow in future complaints.
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SETTLEMENT AGREEMENT AND RFLEASE
WHEREAS, this setdement agreement is made and entered into this day of
. , 1987 by and between Elizabeth L. Tedesco (hereinafter referred to as "Ms.
. Tedesco") and the City of St. Paul (hereinafter referred to as the "City") and
� Gregory N. Blees ( hereinafter referred to as "Mr. Blees") for the purpose of fully
resolving all issues and claims derived from a personnel complaint made by Ms
Tedesco against Mr. Blees and the City; and
WHEREAS, all parties understand and agree that the following terms and
conditions of settlement have been entered into to compromise a disputed claim and �
the payment of any monies is not to be construed as an admission of liability by Mr.
Blees or the City, it is the acknowledged purpose of this settlement to avoid the
uncertainties of litigtion and its associated costs and delays; and
WHEREAS, the City and Mr. Blees acknowledge that Ms Tedesco was a
permanent non-provisional employee prior to her transfer out of the Budget
Division in October 1986; and
WHEREAS, Ms Tedes.co, the City and Mr. Blees agree to the following: �
1. The City agrees to continue Tedesco in her employment as a provisional
Systems Analyst II in the accounting division of the Department of Finance and
Management Services until the results of the next examination for that position are
posted. Ms Tedesco shall take the next examination for a Systems Analyst II, and if
she qualifies as one of the top three on the eligibles list as a result of the examination,
she will be certi�ed and selected for that position as a full time non-provisional � �
employee subject to all applicable provisions of the St. Paul Civil Service Rules.
As part of the settlement negotiations, the City had offered Ms Tedesco, via court
order, appointment as Systems Analyst II without an examination. Ms Tedesco has
chosen to take the examination and agrees to waive any claims she may have against
the City due to the procedures, preparation and development of the examination, the
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grading of the examination, the examination itself, or any possible related action as a
result of her inability to qualify as one of the top three on the eligibles list for this
position. If Ms Tedesco fails to place as one of the top three on the eligibles list, she
� understands and agrees that the City has no obligation to continue her employment.
Any continuation of Ms Tedesco's employment shall be subject to reasonable
. performance expectations of the City based on objective performance standards set
forth in writing and mutually agreed upon in her accountability statement with the
Department of Finance and Management Services, subject to the provisions set forth
in Paragraph Number 2.
2. The City agrees to take all appropriate action to prevent any retaliation
against Ms Tedesco or any other City employee who participated in the investigation
of this matter.
For a period of one year after the effective date of this Agreement, and
except as othervvise provided in Paragraph Number 1, Ms Tedesco and any other
person who was interviewed during the City's investigation of this personnel
complaint shall be granted an optional review step in addition to those grievance
proceriures established in Rule 26 of the St. Paul Civil Service Rules.
Under certain time limitaiions established in this Paragraph, those persons
shall have the right to file a written petition with the director of their department
requesting that the City Attomey assign an assistant city attorney to investigate any
aliegation of retaliation against that employee due to his/her participation in this
investigation. The assistant city attorney shall interview a�l witnesses relevant to the
. retaliation issue and within thirty (30) days provide the Mayor, the appellant and the
. department director with a proposed findings concerning the retaliation issue. The �
director of the department shall abide by the findings of this review. If the
appellantlemployee is dissatisfied with the findings, he/she has the right to proceed
with the grievance process under Rule 26 and appeal the action to the Civil Service
Commission. This right to an additional review applies to performance appraisals,
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disciplinary actions, formal or informal, and budget decisions affecting Ms Tedesco
and other persons who were interviewed as a result of the investigation of this matter.
In those cases where the action taken is claimed to be a violation of the Civil
� Service Rules, this review shall be an optional additional grievance step if a written
. request to the director of the department is filed within five (5) days of the completion
of Step 2 of Rule 26 (n. When the action pertains to a discharge, reduction or
suspension, the review shall be an optional additional grievance step if a written
request is filed within five (5) days of the employee's notice of action taken. If the
action pertains to an examination, classification, or the adminstration of wages, the
written request for a review must be filed within fifteen (15) days of completing Step
A-1 of Rule 26 (III) or if appropriate, within ten (10) days of the Personnel
Director's decision referred to in Step B-2 (b) of Rule 26 (III). All other times for
filing and procedures shall be as set forth in Rule 26. These provisions take effect
after the effective date of this Settlement Agreement.
3. The City further agrees that in its pending redraft of the City's sexual
harassment policy there will be specifie provisions including the following:
a. ) clarification of the procedures for complaints by employees
when the alleged harassment involves a supervisor, including a
provision allowing the employee to contact and make the initial
complaint to the City Attomey's O�ce; and
�.) upon receipt of the initial complaint, the requirement that any
person designated as the coordinator for any investigation of a
complaint of sexual harassment shall contact and use the City
Attomey's Office as an ongoing resource throughout the entire
review process; and �
c.) identify specific examples of sexual harassment and notify all
employees that discipline for sexual harassment shall be progressive
and that continuance of such conduct after an inidal warning shall
' result in suspension �r discharge; and
d.) that once a year the City shall remind all employees�of the
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existence of the sexual harassment policy and that copies thereof
will be provided upon request.
4. In exchange for the commitments set forth in this Agreement, and the sum
. of$28,000 which shall include all medical costs, attorney's fees and costs and
compensatory damages, Ms Tedesco agrees to release the City and Mr. Blees from all
claims as provided in this agreement Of this amount, $5,000 shall be withheld for
three months from the effective date of this Settlement Agreement pursuant to
Paragraph S. ,
5. All parties recognize that because of this settlement there will never be
complete adjudication of all claims and allegations. Publicity of specific allegations
without such adjudication may cause irreparable hann to the individuals involved in
this case. Therefore, to avoid further injury to these persons, all parties agree to
restrict their comments and to limit the release of documentation to that required by
court order or law, or to those explanations or documents required by the St. Paul
City Council during the public hearing concerning the acceptance of this settlement by
the City.
If it is proven that there is or has been a violation of this confidentiality
provision by Ms Tedesco or her agents, or if it is proved that Ms Tedesco is
responsible for supplying the information to someone who, in turn, violates this
confidentiality provision, it is agreed by the parties that the liquidated damages shall
be $5,000 paid to the City.
6. Ms Tedesco, for and on behalf of herself, her representatives, �eirs,
� executors, administrators, successors and assigns, agrees to and hereby does release, �
acquit and forever discharge the City and Gregory N. Blees, their insurers,
successors, assigns, present and former employees, officers, agents and
representatives and each and all of them from any and all manner of action or actions,
grievances, complaints, administrative actions, suits, claims, damages,judgments,
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levies and executions, known or unknown, whether liquidated or unliquidated, fixed,
. direct or indirect, which Ms Tedesco and her representatives, heirs, executors,
administrators, successors and assigns ever had, have now or will have against the
� City and Gregory N. Blees, their successors, assigns, present or former employees,
. officers, agents and representatives for, upon or by reason of any matter, act or thing
' prior to the effective date of this Settlement Agreement; and as referenced in
Paragraph Number 1 for, upon or by reason of any matter, act or thing relating to the
procedures, preparation and development of the examination, the grading of the
examination, the examination itself or any possible related action as a result of Ms
Tedesco's failure to place as one of the top three in the eligibles list for her present
position. This includes, without limiting the generality of the foregoing, any and all
claims which have been or could have been asserted including known and unknown
claims from or relating to Ms Tedesco's employment with the City.
7. Steve G. Heikens, Ms Tedesco's attorney, hereby releases and forever
discharges the City and Gregory N. B lees, their assigns, present and future,
employees, of�cers, agents and repres�ntatives of and from any and all cl�ims for �
attorney's fees and costs related in any manner to the dispute between Ms Tedesco and
the City and Mr. Blees. It is understood that the attorney's fees and costs shall be
included as part of the financial settlement set forth in Paragraph Number 4 and shall
be considered paid in full upon receipt of the first $23,000.
8. Except as otherwise provided in this Agreement, for and in consideration of
the covenants and representations set forth in this agreement, the City and Gregory N.
Blees release, acquit and forever discharge Ms Tedesco, her insurers, successors,
assigns or heirs, of and from any and all manner of action or actions, grievances,
complaints, suits, claims, damages,judgments, levies and executions, known or
�known, whether liquidated or unliquidated, fixed, direct or indirect, which the City
and Gregory N. Blees ever had, have now or will�have against Ms Tedesco,her
representatives, su�cessors, assigns or heirs for, upon or by reason of any matter, act
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or thing prior to the date of this release.
9. It is further understood and agreed that the payments and acceptance of the
. consideration mentioned above is in full, final and complete compromise, settlement
and sadsfaction of Tedesco's claims, which are disputed by the City and Gregory N.
� B lees. Nothing contained in this agreement constitutes, and shall not be construed as
any admission of liability or fault whatsoever by the City and Gregory N. Blees, and
this agreement and the amount and nature of the consideration paid pursuant to this
agreement and settlement do not constitute an admission regarding the City's and
Gregory N. Blees' responsibility for this type of damage or remedy in this or any
other case.
10 This settlement and release constitute a contract enforceable against any
party, to be construed and enforced in accord with the laws of the State of Minnesota.
11. Each of the parties certifies that he/she has read the terms of this Settlement
Agreement and has discussed it with his/her attorney and that he/she understands its
terms and fully agrees to each and every provision, hereby acknowledging receipt of
a copy of the settlement agreement and release.
City of S� Paul
Date: �„t�� 2� 1�J$� By: C
Its: pss�j G 1T`� AzraQN�`c
. . ��
Date• /9
iz eth Tedesco
.
Date• 2� I°I�7
Gregory s
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Approved as to form: Approved as to form and as to the pmvisions
- of Paragraph Number 7:
.
. By � By ,
�
t� John McCormick Ste e G. Heikens, Atty. No. 124394
Assistant City Attorney Attorney for Plaintiff
City Attomey's Office 4644 IDS Tower
S� Paul, Minnesota 55101 Minneapolis, Minnesota 55402
612/540-3256 612J338-4555
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M� �*¢ - c�rr CIEMK
PINK � FINANCE CO�ltIC1I . C� / �
CANAqr - OEPI�RTMENT GI�Y OF SAINT PAUL File NO. � �`�
9LVE -MAYOR
�
Council Resolution �
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, That based upon the attached Settlement Agreement
and Release which is in a form approved by the City Attorney,
the proper City officers are hereby authorized and directed �
to pay out of the Tort Liability Fund 09070-511-000, to �
Elizabeth L. Tedesco, the sum of $28, 000, which is in full
settlement of any and all claims she has or may have as set
forth in the attached Settlement Agreement.
. ' �t�„
Or1 � The City Attorney' s Office has informed the City Council that
all of the parties involved in this personnel complaint have
� agreed that no monies be withheld pursuant to Paragraphs Number
� � Four and r^ive of the Agreement and that any reference to such
liquidated damages be considered stricken from the Agreement.
�
�OUNC[Lh9EN •
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• _ In Favor
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`"�� `} ` '` Approved by Mayor for Submission to Council
f�p� oved by Vlavor. Date
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