NEW ULM — The City Council is expected to formally approve the terms of Brian Gramentz’ separation from the city manager position, tonight.

The Separation Agreement and Release of Claims regarding the terms of severance of the employment of City Manager Brian Gramentz will be presented before the council. The city has been in closed-session negotiations with Gramentz for the last month over the terms of this agreement.

During the Aug. 21 city council meeting, Gramentz announced his decision to sever his employment with the City of New Ulm before the end of the year.

The announcement came as a surprise to many. An annual closed-session evaluation of Gramentz’ performance over the last year was planned for the Aug. 21 meeting, but it was cancelled and the council was instead presented with a severance agreement.

No letter of resignation was submitted by Gramentz as he was not technically resigning, but negotiating with the city to end his employment. Gramentz has given no reason for his sudden decision to leave the city manager position after 17 years.

The city only hired Chris Dalton as assistant city manager in April. Now, less than a year after filling the long vacant assistant city manager position, the city would need to fill the manager position.

The current terms in the severance agreement would grant Gramentz six months of his regular salary, which would total $65,343. Under city policies he would be entitled to transfer 25 percent of his sick pay (up to 960 hours) and 100 percent of his vacation pay to his health care savings account. His hourly rate is $62.83. This would total an additional $15,079 for sick pay and $9,271 for vacation pay.

Gramentz would also be eligible for up to 12 months of continued insurance coverage. In the event that insurance is available through a new employer, the obligation would end. If the coverage runs for the entire 12-month period, the current employee premium is $1,780.77 per month and in 2019 it will be $1,697.97 per month, for a total of $20,459 over the full 12 months.

The agreement also includes a clause preventing either the city or Gramentz from engaging in disparaging remarks that would impair the reputation, good will or commercial interests of the other party.

The maximum cost of the severance agreement would be $110,152.

Gramentz’ termination date is scheduled as Nov. 15.

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In other news, the council will be asked to authorize a series of applications to the Safe Routes to School infrastructure program to fund various traffic safety projects.

The first application is seeking funds for a Rectangular Rapid Flashing Beacon (RRFB) on Broadway at 4th South Street.

The Safety Commission recommended the application at their last meeting. Last year the council tabled authorizing a Transportation Alternatives application in favor of waiting for a Safe Routes to School funding solicitation.

A total of $6.5 million is available in federal funding through the Transportation Alternatives program in Greater Minnesota, but it requires a 20-percent local match. The Safe Routes to School State infrastructure program provides $2 million in state bond funds statewide and does not require a local match.

The estimated cost to install a RRFB at 4th South Street is $125,000. With the state grant, 100 percent of the cost would be funded. The city would have to fund the preliminary and construction engineering estimated to be $20,000 which is considered a non-eligible project cost.

The second application to Safe Routes to School is for the installation of a roundabout at North Highland Avenue and Oak Street. Since the new high school opened the vehicle traffic has increased at this intersection. An engineering study recommended a roundabout. The preliminary cost estimate for the roundabout is $300,000 for construction and $40,000 for design engineering.

A public hearing will be held ahead of a vote authorizing a loan with conditions to Windings, Inc., in the amount of $250,000 from the city’s Revolving Loan Fund.

Windings is looking to make a substantial capital investment in building additions, machinery and equipment at 15 Somsen St. in the site previously occupied by ELKAY.

The council will also consider a resolution approving the acceptance of a $325,000 Minnesota Investment Fund grant from the Department of Employment and Economic Development (DEED) on behalf of Windings.