Fired in December, he will get severance of $9,167 per month for five months

A dispute about whether Washougal’s former finance director was fired with or without cause resulted in an agreement entitling Jeffrey Bivens to five months severance pay.

The Washougal City Council and Bivens came to an agreement Dec. 29 after weeks of severance negotiations. Bivens’ employment contract stated he would receive three months pay if he was fired with cause and six months pay if the termination was without cause. But because the two parties couldn’t agree on the firing or whether Bivens’ original employment contract was voided by his inability to obtain insurance coverage, the city will pay Bivens $9,167 per month for five months, according to the agreement. Bivens’ annual salary is $110,000.

While the payout may be more than what some city council members wanted to hand over, it’s not the worst-case scenario, said Mayor Sean Guard, who was sworn into office Monday.

“I think everybody is just glad it is resolved,” Guard said.

Bivens could not be reached for comment Tuesday.

Bivens was hired as the city’s economic development and finance director in May. In October, the council learned the city’s insurer would not provide Bivens with a fidelity bond, which is required by state law. Bivens obtained $50,000 in coverage from another provider. But on Nov. 16, the city council passed an ordinance requiring Bivens, and all future finance directors, to obtain fidelity bond coverage of $2.5 million per misdeed at an annual rate of no more than $417, plus or minus 5 percent. Bivens was placed on paid leave until the ordinance took effect Dec. 7 or he found a company to provide the coverage.

When Bivens could not obtain that coverage, he was fired for not meeting the requirements of his position.

As part of the severance agreement, Bivens waived his right to file claims or take action against the city because of his termination.

In addition to the five months of pay, Bivens will receive payment for all vacation days accrued while he was employed with the city and will be reimbursed up to $250 for the cost of obtaining the $50,000 bond coverage, according to the agreement. When Bivens was hired, he was immediately given 63 hours of vacation time and accrued additional days pursuant to city policy, according to his employment contract.

Assistant finance director RJ Stevenson has served as interim finance director since Bivens was placed on leave. He will remain in the position until a replacement is hired. Guard said he plans to begin the search for a finance director by the end of this month.

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