The Village of Sag Harbor and its police chief, Austin J. McGuire, have signed a separation agreement that allows Mr. McGuire to retire on Friday, March 29, despite his efforts to remain in the post.
Mr. McGuire became the village police chief in June 2017. During a special meeting on Friday, the village board, after spending about 30 minutes behind closed doors in executive session, voted unanimously to approve the agreement that will bring an end to his employment.
Mr. McGuire did not want to retire. "Simply stated, serving the Village is his number one priority," read a verified notice of claim filed by the Gilbert Law Group on his behalf in November.
According to the claim, on July 4 of last year, "Chief McGuire and Mayor Thomas Gardella agreed that Chief McGuire should take time off from work to receive treatment at the Water Gap Wellness Center." But in August, Mayor Gardella visited Mr. McGuire while he was still in treatment, and told him the village board thought he should retire, according to the notice.
"Chief McGuire explained to the mayor that he was not ready to retire yet," reads the claim. "If Chief McGuire retires before turning 55, he will only receive 50 percent of his annual average salary over the final three years of his employment as his pension. Conversely, if Chief McGuire retires after turning 55, he will receive 64 percent of his annual average salary over the final three years of his employment. This is a difference of approximately $36,000 per year for the rest of his life. Chief McGuire has absolutely no reason to retire at this stage of his career." He is 53.
The November claim stated that Mr. McGuire "has still not been given a reason for the village's demand that he retires" and argued that he was being forced out and that the village had defamed and stigmatized him, causing "substantial emotional distress."
However, only two weeks later, the village laid out its reasons, serving Mr. McGuire on Dec. 4 with 32 charges, spanning from late 2020 until July 2023, including misconduct, incompetence, and insubordination. At the time the charges were leveled against him, the village pressed for his termination. He was instead suspended without pay for 30 days. The separation agreement marks an end to the drama; all charges against Mr. McGuire have been dropped.
The number that will be discussed is the $248,094 in retroactive wage increases and other accrued benefits that Mr. McGuire will receive. However, the agreement also granted Mr. McGuire a roughly 8-percent raise for 2021, 2022, and 2023, years he worked without a contract, meaning that as he took sick leave, before he was placed on administrative leave in 2023, he was being paid $269,000 annually. Since last July, minus the month in which he was suspended without pay, he was paid approximately $180,000, which doesn't show in the $248,094, according to Vincent Toomey, the lawyer who negotiated on behalf of the village. (Howard Gilbert represented Mr. McGuire.)
During that time, the village also continued to contribute roughly 30 percent of Mr. McGuire's salary to his pension.
"This was definitely not an easy negotiation between the amount the chief was seeking and the amount the village was willing to provide," said Mr. Toomey. "The village and the chief thought it was a fair outcome."
Under the terms of the agreement, Mr. McGuire can continue to participate in the village's health insurance plan, paying no premiums for the next year. After his first year of retirement, Mr. McGuire will only have to pay 50 percent of premium increases, with the remainder paid by the village. He will also be reimbursed $13,125 for his 2023 health insurance premiums.
"We avoid the public process by having this settlement. I asked multiple attorneys what it would have cost to go through litigation and it was hundreds of thousands of dollars," said Mayor Gardella, who indicated he was not part of the negotiations. "We made the best decision in the interests of the community and the police force." In Mr. McGuire's notice of claim, his lawyers hinted at such. "As the result of the Village's unlawful actions, our client has incurred substantial damages. Should litigation ensue, the potential liability to the Village and involved individuals is enormous."
As part of the agreement, Mr. McGuire also received a standard "good guy" letter of recommendation from the village.
"I served as the Village's Police Commissioner and Chief McGuire was under my direct supervision until June 30, 2023," reads the letter signed by Mayor Gardella. "Chief McGuire was reliable, competent, and hardworking. I was very satisfied with his performance, work habits, and dedication to the Village and its residents."
Mayor Gardella said that as police commissioner during Jim Larocca's term as mayor, he tried to act as an intermediary in the contract negotiations between the village and Mr. McGuire. "It was apparent to me there was no budging," he said last week. After May 31, 2021, when Mr. McGuire continued to work for the village, but without a contract, tensions between him and Mayor Larocca escalated.
After a nearly 20-year stint with the East Hampton Town police, Mr. McGuire took over as police chief when Tom Fabiano retired. His entry into the village was lauded at the time. He lives in Sag Harbor, and his children attended Sag Harbor schools. Indeed, he was a fixture in the village, often seen jogging in the mornings, and at school events. The separation agreement will not prevent him from continuing to volunteer for the village's fire department, where he serves as a captain.
"It has been an honor and a privilege to serve the village and work with the exceptional men and women of the Sag Harbor Police Department," wrote Mr. McGuire in his March 5 letter of resignation. He did not respond to a request for additional comment.
"We can now move on with the police force," said Mayor Gardella. "This is a chapter that is now over. Our next discussion will be talking with Lieutenant Drake about his contract." Lt. Rob Drake has been serving in Mr. McGuire's role since last summer, but before he can be named chief, he must pass the Civil Service police chief's test. "I have tremendous confidence in him."
