A settlement agreement with a former police chief and the hiring of an interim chief are on the agenda of the Minot City Council Monday.

Under the proposed agreement to be considered by the council, former police chief John Klug would submit his notice of retirement, effective March 22, 2026, and would remain eligible for benefits through that time, although he will not be paid a salary.

Klug has earned more than 300 hours of paid time off over his 30 years with the city for which he will be paid, as is the city’s practice with city staff who are terminating employment. Any deductions related to employee contributions, such as pensions or health insurance, will be subtracted from the PTO payments.

Klug would be free to seek other employment, and the city will be seeking interim and permanent replacements.

On Jan. 6, City Manager Harold Steward had recommended separation with the police chief following an investigation of the work environment in the Minot Police Department and Central Dispatch. The investigation that concluded in November found no hostile work environment, inconsistent discipline or retaliation but indicated improvements are needed in the department. Klug had been on administrative leave since Sept. 12.

Stewart also recommended looking outside the department for an interim police chief, unattached to recent and former histories, who could improve the climate, culture and morale of the department.

An offer has been made to Denis Otterness, who retired in 2023 as police chief in West Fargo, according to a memo to the council from Stewart. If the offer is accepted and approved by the council, the agreement would run for six months, starting Feb. 10.

The council’s other options include seeking a different candidate or continuing with the current interim. The council also will consider hiring a national recruitment firm for a permanent replacement.

The council meets at 5:30 p.m. in City Hall.