Theresa Dressler, the school psychologist for six years, faced not having her contract renewed for the next school year because of performance issues, District Administrator Fred Vorlop said.
She chose to resign her position instead of going through a hearing, teachers union President Phil Sanborn said.
The district has agreed to pay her $17,500 and to write her a letter of reference, according to the resignation agreement signed April 22. Dressler has agreed to release the district from any liability, according to the agreement.
The payment is not for unused vacation or sick time but for settlement of the matter, Vorlop said.
"The school board and administration take very seriously their obligation to provide a quality education to the students of the school district. They also take into consideration the impact any employment decision has on the individual teacher … (and) the financial costs of litigation as well as the time and effort that go into preparing for and defending any litigation," he wrote in an e-mail to the Gazette.
"Before making its final decision, the board discussed with its attorney the various options regarding Ms. Dressler's continued employment. The board decided that in lieu of not renewing Ms. Dressler's employment, a settlement agreement was in the overall best interest of the district," he wrote.
The Gazette could not reach Dressler for comment.
Dressler will continue to work until her contract expires Aug. 31, Vorlop said. She will continue to receive her regular salary through the summer, he said.
Ken Church, vocal music teacher, also lost his contract with the school district. The school board voted April 21 to not renew his contract because of performance issues, Vorlop said. The teachers union has filed a grievance with the school district on Church's behalf, he said.
Church still is working and will continue to work until June 11, according to a letter he received from the school district.
Church declined to comment.