A review of the city’s options for a $1.15 million severance package for Memorial Health System’s former CEO will be the subject of a closed legal session Wednesday.

The City Council asked the City Attorney’s Office to review the controversial separation agreement for Dr. Larry McEvoy on May 1 and report back two weeks later.

“The City Attorney’s Office is still reviewing the facts and documents relating to the recent proposed separation agreement between Dr. (Larry) McEvoy and the former Board of Trustees of Memorial,” City Attorney Chris Melcher said Tuesday in an email.

Melcher said he plans to discuss the review and provide attorney client advice to council members during a closed legal session Wednesday after the Utilities Board meeting.

The separation package, which includes $1 million in severance pay, a 2007 Toyota Camry Hybrid and $20,000 to help him find a new job, sparked a firestorm of controversy and led to the removal of the Memorial Board of Trustees.

When a majority of trustees refused to rescind the agreement, the council on May 1 gave them an ultimatum: resign voluntarily or be removed from the board.

Only one of the trustees resigned, prompting the council to remove the others from their volunteer positions May 2. Another trustee resigned two days earlier but didn’t explain why.

The council appointed a new board May 4.

Questions about whether Memorial has to abide by the terms of McEvoy’s separation package linger.

Former Memorial Board Chairman James Moore signed the terms of the agreement with McEvoy on April 19, four days before presenting it to council.

Moore told The Gazette on April 30 that the terms of the agreement are akin to an offer on a home and constitute a legally binding contract – even though the final separation agreement with McEvoy has not yet been signed.

“I have had attorneys tell me that if we do not proceed, that we could be in default of a contract,” Moore said.

IN OTHER MEMORIAL NEWS

City-owned Memorial Health System announced Tuesday that it is eliminating the chief strategy officer position from its executive team.

“This change is a result of the anticipated transition to University of Colorado Health, which is expected to occur later this summer after a public vote,” Memorial said in a statement.

The job is held by Carm Moceri, who was hired by Memorial in July 2009 after working with the hospital on a consulting basis. Moceri makes $375,000 a year.

It’s unclear how much severance pay Moceri is entitled to receive.

If his departure is considered “Employer Termination Upon Notice,” then Moceri is entitled to six months’ severance pay. But if his departure is considered “Change of Control,” then Moceri is entitled to 12 months’ severance pay.

—Contact Daniel Chacón: 476-1623Twitter @danieljchaconFacebook Daniel Chacon

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