Kapanicas Claim $110,336.49
Kapanicas Payout 2.0
Alan Kapanicas was contracted as Beaumont City Manager through GGMS from 1993 to 2011 and hired as a City Employee in June, 2011.
On October 6, 2015 Beaumont City Council Approved a payout agreement for former City Manager Alan Kapanicas: http://www.ci.beaumont.ca.us/DocumentCenter/View/26492
On March 7, 2017 Beaumont City Council Closed Session Agenda Item 5: Claim by Alan Kapanicas for $110,336.49. The claim states: “Failure to pay earned employee compensation on November 15, 2016 to end employment per terms of Separation and Settlement Agreement.”
In Kapanicas’ 2015 Settlement Agreement the City paid Kapanicas a total of 1,935.91 hours of benefit time, which equates to every minute of vacation, sick, and holiday time Kapanicas accrued as City Manager. The 48 weeks of full-time pay should have ended in October, 2016, with no additional pay or benefits.
The City of Beaumont’s 2015 Internal Controls Report page 25 Item 2015-19 titled ‘Vacation Cash Outs’ describes Kapanicas’ payout as “may not be in compliance with applicable payroll laws concerning the taxable payouts of accrued vacation earnings”.
Beaumont 2015 Audit page 61 Note #8 PENSION PLANS lists a total of $11 Million in Employee Pension Liability. It is shameful that Kapanicas was paid under the guise of ‘benefits’ when Beaumont’s Employees will only receive pennies on the dollar for pensions they worked 20 or 30 years for.
Did ‘Council Approve’ ?
Declined – as reported in the Riverside Press Enterprise: http://www.pe.com/articles/cit….
The Beaumont City Council didn’t turn on the camera until 6:26 pm and normally 3 to 4 hour-long meeting was already half over. There was no Closed Session Report at 4:00 pm. City Attorney Pinkney gave a report on lawsuits and claims against the City, but it was ‘as of’ February 27, 2017. Kapanicas’ filed his Claim on February 21, 2017, but Pinkney didn’t include Kapanicas’ Claim on the Report nor did Pinkney mention the Claim.
Kapanicas Terms of Settlement dated October 6, 2015:
- Administrative Leave. Kapanicas will remain on administrative leave through November 15, 2015 with full pay and benefits including, without limitation, the accrual of benefit time such as sick, vacation, and holiday time, as well as all PERS contributions per his employment agreement.
- Terminal Leave. From November 16, 2015 Kapanicas received “terminal leave” until all of his benefit time is exhausted. The parties agree that Kapanicas has an accrued balance of 1,935.91 hours of benefit time (sick leave, 509.28 hours; holiday, 408.22 hours; vacation, 1018.14 hours) accrued as of October 2, 2015. While on terminal leave Kapanicas will first use his accrued sick time, then holiday time, then accrued vacation.
- Compensation While on Terminal Leave. While on terminal leave Kapanicas shall not receive deferred compensation and there will be no further accruals of benefit time. Kapanicas will be paid by City based on his usage of his accrued sick, holiday, and vacation time (40 hours per week), computed based on his contractual salary. City will pay Kapanicas from his accrued benefit balance on its regularly scheduled pay dates and will continue to make PERS contributions under the same terms as other City management employees at a rate no less than now in effect. The City will not pay for medical insurance for Kapanicas or his family; however, Kapanicas may arrange to have his premiums paid by payroll deducation.
- Separation From Employment. City and Kapanicas agree that upon the exhaustion of all accrued sick, holiday, and vacation time, the employment agreement will be terminated and Kapanicas will no longer be considered an employee of City. Kapanicas waives all remaining time under the employment agreement as of the date of his separation from his employment by City.
- Waiver of Other Obligations and Severance Pay. Kapanicas hereby waives the $214,100.00 due to him under section 2.5 of the employment agreement and further waives statutory severance pay.
- Waiver of Costs and Attorney’s Fees. Except a otherwise stated herein, it is agreed that all parties to this Agreement will assume and bear their own costs and attorney’s fees incurred as a result of or in connection with the above-described matters, this Agreement and all matters pertaining and relating hereto.
- No Admission of Liability of Non-Liability.
- Release. There parties hereby release and discharge all other adverse parties hereto, and any and all of their employees, agents, servants, owners, shareholders, directors, officers, managers, representatives, officials, attorneys, predecessors, assigns, bla bla bla.
- To the fullest extent permitted by law, Kapanicas on his own behalf and on the behalf of any entities he may own, including but not limited to GGMS, and on behalf of his heirs, successors, and assigns, hereby waives, releases and herby forever discharges the City of Beaumont, the RDA, and Utility Authority, the Finance Authority, and authorities related to past and present councils, elected and appointed officials, administrators, officers, directors, bla bla bla .. from any and all asserted and unasserted claims, demands, liabilities, rights, duties, obligations, causes of action, claims of relief, costs, expenses, consultant and expert witness fees, damages, injuries, rights, claims or obligations of any type or nature whatsoever, whether or not described herein, whether arising in law, equity or otherwise, whether known or unknown bla bla bla …
- Waiver of Civil Code Section 1542. A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her much have materially affected his or her settlement with the debtor.
Kapanicas’ Payout dated 10 06 2015
When Council hired Kapanicas as a government employee in 2011; Kapanicas submitted an Invoice for Development Areas that either were never developed or were developed, but had no bond debt.
From the June, 2011 Agreement:
2.5 Pension. “City agrees to enroll Employee as a member of the Public Employee’s Retirement System (PERS). The City shall purchase five (5) years of pension credit to Employee’s account, with funds presently due and owing Employee’s company GGMS, Inc., for work previously billed but not paid for, in the amount of $214,100.00.”
On October 6, 2015 Beaumont City Council Approved a payout agreement for former City Manager Alan Kapanicas: http://www.ci.beaumont.ca.us/D… The 2015 Agreement referenced the $214,100 three (3) times:
“Section 2.5 of the agreement also addresses the $214,100 owed at the time the agreement was made.”
“My client would also expect prompt payment of the $214,100 referred to hereinabove.”
5. “Waiver of Other Obligations and Severance Pay. Kapanicas hereby waives the $214,100 due to him under section 2.5 of the employment agreement and further waives statutory severance pay.”
Aside from the fact that it is a conflict of interest for Kapanicas to sell bonds in Beaumont while acting City Manager; the bonds specifically state that payment for bond services is contingent upon the sale of the bonds.
Area 1A: Never Developed
Area 4: Never Developed
Area 4A; Never Developed
Area 13: No Bond Debt
Area 15: No Bond Debt
Area 19B: Never Developed
Area 19D: Never Developed
Area 19E: Never Developed
Area 19F: Never Developed
Area 20: Bond Acquired April, 2012
Area 21: Never Developed
Area 22: Never Developed
Area 23: No Bond Debt
Area 24: Never Developed
Area 24 Amended: Never Developed
Development 98-1: Never Developed
Kapanicas was never entitled to be paid for the items on the Invoice. Council has no legal right to gift or trade government benefits. The $241,100 should have never been included in any negotiations. Former City Attorney Aklufi/Wysocki knew or should have known the Invoice was fraudulent. Acting City Attorney Pinkney knew or should have known the Invoice was fraudulent.