Derry Town Council Terminates Employment of Administrator

The Town of Derry will sever its relationship with Administrator John Anderson on Oct. 26, to the tune of approximately $45,000.

The Town Council voted 6-1 to terminate its employment agreement with Anderson without cause, pending receipt of a signed separation agreement. Mark Osborne voted no. The resolution also authorizes Acting Town Administrator Larry Budreau to execute any documents involved in the separation and re-appoints Budreau as the sole spokesperson for the town in matters relating to Anderson’s employment.
The vote came after a half-hour consultation with town legal representation and an hour-long nonpublic Council session at the Council’s regularly scheduled meeting Tuesday evening, Oct. 15. Chairman Michael Fairbanks announced the results when the Council returned to the Chambers at 7:30 p.m.
Osborne declined to comment on the reason behind his negative vote, referring all questions to Budreau, who also declined comment.
According to the separation agreement, Anderson’s last day of employment is Oct. 26. Because he has been terminated “without cause,” according to the agreement he is entitled to the following:
• $31,1240.56, or 26 weeks of salary;
• A medical employer contribution of $4,686.96;
• A dental employer contribution of $123.84;
• A COBRA administrative fee of $136.25;
• A short-term disability contribution of $44.10;
• A long-term disability contribution of $120;
• $93.75 in life insurance contribution;
• $480.64 in unused floating holidays;
• $480.64 in unused personal days;
• $4,133.50 in unused personal time;
• $95.10 in “good will” and
• $3,364.65 in ICMA employer contribution.
The total of Anderson’s “settlement” with the town is $45,000.
The agreement states that all subsequent inquiries regarding Anderson will be referred to the Human Resources Director, who will state only as follows: “The Town has decided to honor the agreement with Town Administrator Anderson and terminate his employment without cause.”
The agreement calls for the parties to keep the employment agreement confidential as to the provisions of RSA 91-A.
Another resolution places Anderson on paid administrative leave from Oct. 14 to the day of his termination. His status had been changed to “unpaid administrative leave” following a Town Council non-public meeting Aug. 22.
After the meeting, Budreau declined comment on the resolutions. He said the Council will take up the matter of a new administrator in November.
Budreau said Anderson was not present at either meeting.
Anderson, 50, is facing charges of two counts of indecent exposure following allegations that on July 11, he exposed himself to a door-to-door salesman of DirecTV services. He was placed on paid administrative leave July 12 and Budreau, Human Resources Director and assistant Town Administrator, was appointed Acting Town Administrator at that time.
Anderson is free on $2,000 personal recognizance. He was scheduled for arraignment Oct. 11 but waived arraignment and entered a plea of “not guilty.” No date has been set for his trial.
He is being charged with two counts of indecent exposure and lewdness, a misdemeanor under New Hampshire RSA 645:1. If found guilty, he faces a $1,000 fine and a maximum sentence of 12 months in the Rockingham County House of Correction, Brentwood.

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