SOUTH BOUND BROOK -- The borough and its former police chief have reached a settlement that will allow the chief to retire following allegations that he drove while under the influence of alcohol, struck a parked car, and left the scene of a hit-and-run accident, according to a settlement agreement.

Former Chief William C. King is also accused of lying about the crash when questioned by one of his officers.

In accordance with the agreement, King will receive nearly $260,000 in sick time, vacation time, personal time, retroactive and compensatory pay and one-year's salary.

After an investigation, no criminal charges were brought against King, said Capt. Jack Bennett of the Somerset County Prosecutor's Office, and the case was referred back to the borough. He said King was issued a motor-vehicle summons.

Calls to borough officials, including Borough Administrator Donald E. Kazar, were not returned on Tuesday.

The settlement, first reported by open public records advocate John Paff, states that King will retire in good standing with the South Bound Brook Police Department and it is agreed that there will be no administrative charges pending at the time of retirement.

According to a police report, South Bound Brook patrolman Richard Meinsen responded to King's residence on April 4, 2015, at approximately 2:25 a.m. on a report of a motor-vehicle accident after receiving information the chief may have been involved.

Meinsen noticed that King's vehicle, which was parked in his driveway, fit the description of the hit-and-run vehicle, the report said. When King came out of his home to speak with the officer, he had alcohol on his breath, the report said. King explained that he had a few drinks while at home.

According to the settlement, King agreed to retire on Dec. 1, 2015, and to "release any and all claims against South Bound Brook without any admission of liability or otherwise related to his employment."

Furthermore, the borough has agreed to defend King against all civil actions brought against him as long as he was acting within the scope of his employment during his employment in South Bound Brook.

Upon retirement, King, 51, will receive his service weapon (Smith & Wesson M&P serial DXK5288), three magazines and holsters.

King will also receive a retired Chief's Badge and identification card and the borough agrees to retain any letters from the Somerset County Prosecutor's Office clearing King of any administrative charges upon effective date of retirement.

In return, the borough agreed to pay King a total of $109,874.81 in three annual installments, which covers King's accrued sick, vacation and personal time as well as retroactive pay and compensatory hours owed.

King's pay will increase to $148,561 retroactive to Jan. 1, 2015, but he waives any rights he has to further health insurance, according to the settlement.

According to Meinsen's police report, a Dodge Dakota had been parked on Main Street when, according to a witness, a black Ford or Chevrolet "type" pickup truck with tinted windows pulled out of the driveway of the borough municipal building.

After turning right onto Main Street, the pickup struck a parked vehicle's driver-side rear corner. The witness didn't get a license plate of the vehicle that struck the Dakota or a description of the driver, Meinsen wrote.

Meinsen wrote that he felt the description of the vehicle matched that of King's. He also wrote that the chief's blue GMC Sierra pickup truck had been in the borough lot around the time of the incident.

Meinsen reported that he went to King's residence in the Somerset section of Franklin Township. There, he found the chief's vehicle backed into his driveway, with damage on the passenger side. He took pictures, then called King on his cell phone to ask him to come out of the house.

The chief said the damage was already there, but didn't say how it occurred, Meinsen wrote. He also noted that he didn't remember seeing any damage on the chief's vehicle when he saw it parked in the lot earlier that evening.

"His breath smelled of alcoholic beverages and he appeared to have been drinking," Meinsen wrote in his report. "He stated to me without my asking that he had a few drinks while at home."

Meinsen wrote that he informed King he was investigating a hit-and-run, and that a witness had described a vehicle similar to his. Meinsen also wrote that he told King he'd remembered seeing King's vehicle in the borough lot "and I was just asking if he could have possibly struck the vehicle and just not realize it."

"He stated that he didn't strike any vehicle and that if he did he would have recalled doing so," Meinsen wrote. "Chief King appeared to be too intoxicated as to attempt to get any further in-depth statement from him."

Meinsen wrote that the damage between the two vehicles was consistent with the collision, and he concluded that the chief's vehicle was involved in the hit-and-run.

According to the report, King was charged with leaving the scene of an accident, and, on May 1, King was additionally charged with failure to report an accident, careless driving and improper turning.

Dave Hutchinson may be reached at dhutchinson@njadvancemedia.com. Follow him on Twitter @DHutch_SL. Find NJ.com on Facebook.