Contract renewal terms proposed by city manager

by Benita Fuzzell

While there were only three items listed on the special called session Sept. 26, one item occupied the majority of the hour and a half meeting for South Fulton City Officials.

Mayor David Lamb, Commissioners Billy Williams, Terry Taylor, Beatrice Wilcox and Tommy Pruitt, having previously been provided with a copy of the proposed five-year contract submitted for review by City Manager Jeff Gabbert, ultimately chose to forego action of the contract, instead tabling the matter until the next regular commission meeting Oct. 25. That date is actually a week later than the established regular meeting date of the third Thursday of each month at 5 p.m., with revision made due to the City Manager scheduled to be out of town on Oct. 18.

“I have talked to Jeff about this,” Mayor Lamb said, referencing the proposed five year employment contract Gabbert submitted.

“I told him as long as he does his job, he will have a job. But there are parts of this I don’t agree with,” he said.

The mayor singled out issues relating to Tennessee’s Right To Work law, with allows for dismissal of employees, according to City Attorney Kirk Moore, “for cause, which could mean good cause, bad cause or no cause”. Mayor Lamb also referenced Gabbert’s requested pay increase, noting that he could not support an automatic pay for the city manager, if the city could not offer a raise to other employees because of possible budget restraints.

Gabbert agreed he would withdraw the request for the pay increase, which would have placed his salary at $60,000, and further agreed he would not expect or request a pay raise if the same could not be offered to other city employees.

“As far as the five year contract, I am still employed ‘at will’ by the commission. I would just want to make sure my employment would continue, based on the work I have done,” Gabbert said, adding he would understand should an incident arise in direct violation of what is spelled out in the employee handbook, but would object to termination based on “political” issues which could arise from possible changes in expectations from the current commission or possible differences which could arise in expectations from future elected officials.

“We have always just taken the contract year by year,” said Commissioner Wilcox. She also cited concerns as to the city’s budget and a possible difficulty in being able to locate funds for a raise such as the approximate $10,000 raise Gabbert is requesting. She pointed out that the suggested pay increase had not been included in the city’s budget, however Gabbert stated a budget amendment could be drafted to accommodate the item.

Commissioner Billy Williams indicated he did not want to “tie our hands” as to the proposed five year term of the contract.

“I don’t blame you for wanting security,” Commissioner Williams said, to Gabbert, adding he saw “$60,000 as a little much for our city. The previous city manager was making approximately $54,000+ after six years. I have no problem with a pay increase, but we also have to review, as to some kind of pay increase for other employees.”

Commissioner Williams also mentioned, within the contract, language applying to a proposed severance package, as another concern.

“I can be terminated at the will of the commission...no one else (within the city staff) runs the political risk of losing their job,” Gabbert said.

Commissioner Williams suggested a possible pay increase for Gabbert at $2,500 annually.

“I do believe you deserve something,” he said, adding that he was satisfied with Gabbert’s work performance as city manager, but in “dealing with the taxpayers’ money, we just have to consider a lot of things.”

On a motion by Williams, seconded by Wilcox, the commission approved a pay increase for Gabbert, to $52,500 annually, from the $50,000 he was initially contracted to earn within his first year of employment. The one-year agreement runs through Oct. 23, 2018.

As to the requested severance package proposed by Gabbert, the city manager reiterated he wanted some degree of assurance in the event he was terminated for something except by cause, as outlined in the employee handbook, with his severance request to equate to nine months salary.

Discussion then took place by the commission, with concerns voiced by the officials regarding the difficulty which could be placed on the city’s budget if it was agreed to provide a nine month salary severance package to Gabbert, while also being required to pay the salary of his replacement simultaneously.

“In the employee handbook, does it list what you can, and can not be fire for?” Commissioner Williams asked.

City Attorney Kirk Moore provided a copy of the handbook to the officials for their review, with Gabbert explaining he wanted to be treated as all other employees were to be treated, per the handbook and the process designated for which termination may be exercised.

“A few city employees have already been fired without reason. We can not speak for future commission members. I just have a problem wit the nine months’ severance,” Williams said.

Commissioner Wilcox stated no severance was offered to the previous city manager, following her request to provide it.

Commissioner Pruitt said “She had a pretty good check when she left...about $11,000.”

“But she had worked for that. She had earned that. That was her earned vacation pay,” Wilcox said.

City Attorney Kirk Moore told the commission in the event they chose to alter the “at will” designation, through the execution of a contract with an employee, depends on the circumstances.

“For cause or not for cause, you would have to make a determination, as to why and if it applies. And you would have to decide who makes the determination. The way it’s written, it would be determined by the board... and you would need to define what is the cause...” Moore said.

“I need that nine months’ severance,” Gabbert said.

“Well, then we have got a problem,” said Commissioner Taylor.

No action was taken as to the severance package issue, with the commission in agreement to readdress the matter at the Oct. 25 meeting.

As to another item listed on the agenda, the consideration of the city returning to the Tennessee Consolidated Retirement System, TCRS, following a presentation at their Sept. 21 meeting, the matter was voted down, with Commissioners Billy Williams, Beatrice Wilcox and Terry Taylor voting against the retirement system’s adoption, and Commissioner Tommy Pruitt and Mayor David Lamb voting for the system.

The second reading of the city’s budget ordinance for 2018-05, was heard, for the final reading.

Regarding discussion of the proposed retirement system plan for city employees, Commissioner Williams asked about the percentage of the contribution to be implemented to the employees’ retirement, from the city, as it was understood from the previous presentation about the program that the percentage could fluctuate.

He questioned if information was available as to the highest the percentage had been in years past, as reportedly there is no cap on the city’s side of the percentage contributed.

Gabbert offered to contact Tim Joyce or Allan Landstreet, representing TCRS, to determine the percentages over the past few years.

A motion was made by Commissioner Tommy Pruitt to have the city and city employees participate in the TCRS, Tier 3, with Mayor Lamb seconding the motion. On a roll call vote, Pruitt and Lamb voted yes and Williams, Taylor and Wilcox voted no.