Medina will pay former City Manager Donna Hanson more than $200,000 as part of a separation agreement. The agreement was effective as of July 13.

As part of the agreement, Hanson will receive $156,754, an amount equal to what she would have earned as a base salary as city manager through Sept. 12, 2014. In addition, she receives an additional $51,401, which included accrued wages, unused vacation and sick leave, and city contributions to her retirement plan.

Hanson agreed to release the city from any future claims.

In the agreement, Hanson agrees to cooperate with Medina in any litigation that arose during her time as city manager, specifically mentioning the case of former police chief Jeffrey Chen, who successfully sued the city and Hanson for firing him based on racial discrimination. If the city appeals that ruling, and Hanson is required to spend time and/or travel to participate, she would be paid ah hourly rate of $64.13, which was her hourly salary at Medina, plus reasonable travel expenses.

A federal court jury ordered Medina to pay Chen $2 million in compensation. Hanson was ordered to personally pay  Chen $25,000 in punitive damages.

Both the city and Hanson agreed to not disparage each other, including officials and employees.