Gary Nytes On special assignment until July 1, 2011, former National Joint Powers Alliance executive director Gary Nytes is still qualifying for both his salary and for a severance package.

The total combination of salary and severance pay, accord- ing to his employ- ment contract, could amount to over $400,000 in his final year.

Nytes is in line for up to a $225,000 severance benefi t. In addition, his salary, according to the three year contract agreement between Nytes and the NJPA, calls for a $179,111.25 salary for the final year of his contract, while he is on his special assignment.

No one at NJPA is willing to talk about the departure of Nytes, instead turning all inquiries over to their attorney. NJPA board member Lane Waldahl told the Staples World that he was told to refer all questions regarding Nytes to Kristi Hastings, attorney with Pemberton, Sorlie, Rufer & Kershner law firm of Fergus Falls. When asked, he said that message was given to all the NJPA board members. In addition, all staff members at the NJPA offices in Staples have been told to not discuss the situation and to refer any questions to the NJPA’s attorney.

Hastings simply referred to a printed news release stating Nytes was being placed on special assignment and that Staples Motley School District Superintendent Mark Schmitz was being appointed interim executive director.

Minutes of the NJPA’s board meetings reveal little of the details behind the rather abrupt departure of Nytes, who has been the NJPA’s executive for right at 25 years.

In contrast, and not surprisingly, Nytes is more than willing to talk. In a rambling nearly hour long conversation, he related how over the years, first with Educational Cooperative Service Unit- 5 (ECSU-5), North Central Service Coop (NCSU) and eventually NJPA, he negotiated several employment contracts, until the current version which he said was very much the standard contract for school superintendents.

Nytes said he first qualified for retirement under the Teachers Retirement Association (Rule of 90) in November, 2007, but agreed to stay on at NJPA when the board asked him to do so. “They talked me into staying, but I said only until June 30, 2011,” when he will be 62 years old.

Nytes and the NJPA signed a three-year employment contract effective July 1, 2008. That agreement states Nytes was to be paid at a daily rate for 261 days each year. His daily rate for the 2008-09 year was $637.18 or $166,303.90 annually; for the 2009- 2010 year the daily rate was $664.13, or $173,337 annually; and for 2010-2011 the daily rate is $686.25 or $179,111.25 annually.

From this amount, NJPA deducts income taxes withholding, Social Security, insurance, retirement and other deductions.

The six page employment agreement lists numerous other duties and benefits, including health insurance, life insurance and a number of other forms of compensation.

One of those is severance pay, which is based on his current daily rate of pay and includes 5.68 days of pay for each year of employment with NJPA, up to a maximum of 130.5 days; any unused vacations, up to a max of 77.5 days; and any unused sick leave days, up to a max of 120 days. Using his salary for the 2010- 2011 NJPA fiscal year and assuming Nytes is eligible for his maximum severance payment, he would be able to receive $225,090 in severance payments.

Nytes stated in the phone conversation he is at or near the maximum number of days in all three categories. His contract calls for severance pay to be paid in two payments over two fiscal years.

According to Nytes, shortly after he signed this three year contract, he began urging the board to hire his replacement so that person could be trained in. Board members listened but until this past month took no action, he said. Finally, according to Nytes, he told Board Chair Wayne Wolden in late February that with his combination of sick leave and severance, he could leave now and NJPA would have to hire someone else. Faced with that reality, Nytes said, he and the board worked out a settlement agreement on March 4.

Also at that time the board took up Nytes’ recommendation to ask Mark Schmitz and the Staples Motley School Board to have Schmitz replace him as an interim executive director. Schmitz is one of three area superintendents who have been serving as ex officio advisors to the NJPA board.

In addition to his special assignment, Nytes expects to provide any help he can to whoever is hired to replace him. “I will be around until June 30, 2011. I want to help my successor and I want to fulfill my dream of NJPA. I’m on call, whenever they are ready, I’m back in to help.”

Nytes said the only thing he asked for other than in his contract was for the NJPA to pay for his family health insurance premiums until he and his wife qualify for Medicare, which is currently at age 65.

Nytes said the board members were the ones who wanted to have their attorney draw up the six page settlement agreement. This was essentially worked out at a March 4 session just after he returned from a business trip to San Diego. It was then okayed by the full board at a special board meeting March 11.

That settlement agreement includes a non-disparagement clause, stating both parties agree to not make statements that disparage or malign the reputation or abilities of the other.

Contrary to one rumor, Nytes said, he was not escorted out of the NJPA offices by Wolden. “Wayne and I met Saturday morning, we visited for half a day and reminisced about NJPA.”

NJPA has grown under Nytes’s leadership. Initially an educational service co-op of school districts providing services to member schools, Nytes transformed the organization in both name and purpose. He guided it into a purchasing co-op serving various governments from schools, cities, counties and now even eight states and several federal agencies. “We’re a service co-op on steroids,” Nytes likes to say.

Today, Nytes said, NJPA has over 30,000 memberships nationwide. It had annual revenue amounting to $38 million in 2009 and he expects it will triple in size by June 30, 2011. Caterpillar sales through the co-op alone could amount to $300 million by that time, he said. NJPA takes about one percent of sales to cover its costs and salaries.

The NJPA’s 2009 audit report states it had a combined net assets of $9,911,478 as of June 30, 2009,.

The minutes of the NJPA board meetings reflect Nytes’ statements. All board members are elected officials from schools, cities or counties in north central Minnesota.

The Feb. 18 board meeting records note that Mike Wilson, a board member from the Pierz school district, was appointed to chair this year’s executive director evaluation committee. “The evaluation instrument was adopted and distributed to board members and is due back to Mr. Wilson by March 11, 2010,” according to the February board minutes.

The board met for a special board session on March 10 at the NJPA offices in Staples. Chairman Wayne Wolden (mayor of Wadena) called the meeting to order at 5 p.m., with five board members and nine staff members present.

After Attorney Hastings reviewed and discussed a settlement agreement with Nytes, the board voted to approve the settlement agreement and a release of all claims with Gary Nytes.

Wolden and Hastings then reported on the request from Nytes to be placed on Special Assignment. The minutes state the board okayed placing Nytes on special assignment to write the history of NJPA and its programs..