Ex-mayor explains no vote for city manager
Panel passed plan to make role permanent
When the Mount Clemens City Commission was presented with a plan recently to make the interim city manager a permanent one, there was little discussion among commissioners.
The plan passed on a 6-1 vote, with Commissioner Barb Dempsey casting the lone vote against naming Gregg Shipman to head City Hall.
Dempsey, the city’s former longtime mayor, didn’t offer an explanation during the meeting about her vote. It turns out she had several reasons to oppose the appointment of Shipman, who also serves as the city’s fire chief.
“In my mind, there were a lot of red flags,” she said last week.
“For one, I don’t think he has the qualifications. He may be a good fireman, but it takes a whole lot (more) experience than that to run a whole city.”
Shipman was named interim city manager in July 2022 following the retirement of former manager Donald Johnson. A 26year veteran of the Mount Clemens Fire Department, Shipman retired and was named fire chief in 2021
Earlier this month, he presented a proposal to have Shipman Enterprise, LLC, a single member to serve as city manager. It included a three-year agreement for manager serves a $110,000 fee for services rendered.
The contract is subject to termination at any time without cause, meaning Shipman can be fired at any time without the city having to list a reason.
It also includes a severance package that calls for the city to pay him six months’ compensation if he is let go in the first year, three months’ pay if he is terminated in the second year, and any unpaid monthly installments that are due in the third year.
And that was another reason Dempsey says she was against the plan. She says no other contractor working in Mount Clemens receives one.
“I’m not comfortable with a contractor receiving a severance
package,” she said. “He was an employee who retired so he’s already receiving his retirement pay. I question the legitimacy of that under our city charter.”
Mayor Laura Kropp says she wishes Dempsey had raised her objections at the commission session so they could have been addressed.
According to Kropp, in a city like Mount Clemens, where nearly 50% of the property is tax exempt, it’s getting tougher to find a true city manager, an administrator who specializes in that field. As a result, more cities are looking at non-traditionally trained employees to become managers, such as police and fire chiefs.
And because Shipman is a retired fire chief, he will receive no benefits in his compensation as city manager. That’s one of the reasons why city commissioners accepted the severance provision.
Kropp said commissioners consulted with their attorney and also looked at other communities who are hiring nontraditional city managers. They were told it wasn’t illegal or unethical to move into that model.
“I feel Gregg is doing a fantastic job,” the mayor said. “He’s helping the city to lead with forward momentum. His experience here is incredibly valuable. I felt it was our move to put the city in a good position to move forward with other issues.”
Kropp notes while Dempsey served as mayor, a number of employees including a DPW superintendent, city clerk and a financial director served as interim managers
Finally, Dempsey said she was concerned because five people have resigned since Shipman became manager, and the former finance director was fired two weeks before the budget was due.
“The finance director was an at-will employee, but apparently Gregg couldn’t work with him,” the former mayor said, adding the finance director is now making “big bucks” with the Plante Moran accounting firm.
City officials say during these days of rapid employee transition, the staff of any organization can see movement in departments. For his part, Shipman said he won’t comment on personnel issues including why the five employees resigned.
“What I can say is that people coming and going from government jobs to ones in private business is not unusual,” he said. “We have a great staff, great department heads and great employees. Without them, I can’t do anything.”
He said there are seven people on the City Commission and six felt he was the person for the job. He said he respects Dempsey’s decision to vote on what she felt was right.
“I am honored to be given this opportunity that the major felt I could do the job. I take it very seriously and plan to work hard,” Shipman said.