Leadership overhaul costs city nearly $770K
LOVELAND>> The new majority on the City Council has made no secret that it wants a change in city leadership and, with the recent resignations of City Manager Steve Adams, City Attorney Moses Garcia and Municipal Judge Geri Joneson, is poised to get it.
But, as Garcia said last week during deliberations over his separation agreement, that change comes with a cost.
To end the contracts with all three soon-to-be former employees, the City Council agreed to pay nearly $770,000 in salary, entitlements and benefits as severance.
“This is the change that Loveland voters asked for in November,” Mayor Jacki Marsh said about the payouts.
“Is it kind of rocky and ugly now? Absolutely, that’s to be anticipated. But I think down the road, when we have a new leadership team, people will be happy with the changes that were made.”
In terms of impact to the 2024 city budget, a large share of the $770,000 has been accounted for, at least on paper.
If none of the three had resigned, a full year of salary, retirement and benefits for each would have totaled about $690,000, amounts appropriated from the city’s general fund.
Adams’ and Garcia’s resignations came after several clashes with the council in the weeks after the election, a failed motion for their termination during their December performance reviews and a not-so-subtle hint from Marsh, who told both directly that she would entertain conversations about separation agreements.
Both took her up on the offer but didn’t go cheaply.
Adams tendered his resignation in early January and asked for a full year of pay and benefits ($257,030.70), plus an additional $104,547.99 in entitled payments, including unused vacation hours and floating holiday pay, for a total of $361,578.78.
After an uncomfortable discussion with the City Council over the proposed package on Jan. 16, Adams eventually agreed to nine months salary and benefits, lowering his buyout to less than $300,000.
If the motion to terminate Adams’
employment had received a supermajority of votes, or six of the nine, he would have been entitled to six months of salary and benefits, plus the entitled payments, totaling $215,099.88
There were no such negotiations with the council in the case of Garcia, who hashed out his separation terms with Marsh and Mayor pro tem Jon Mallo before going public with his proposal, in hopes of avoiding Adams’ fate.
Garcia asked for, and grudgingly received, a package worth $341,032.09 that included 12 months of salary benefits, 880 hours of unused vacation time, unused holiday time and an 8% lump-sum payment as an equivalent retirement contribution.
Joneson’s payout is more modest comparatively, at just $130,623.98, which includes six months of salary and benefits at $105,600.37 and entitlement payments of $25,023.61. The judge also got a much warmer sendoff from the City Council, with many members expressing sorrow as they voted to approve her agreement.
For City Councilor Steve Olson, the monetary cost to the city for the buyouts is minimal compared with the loss of talent in Adams, Garcia and Joneson and the potential negative impact to Loveland.
“The new council majority has driven three highly experienced, highly qualified individuals out of this city,” said Olson, one of the no votes on Garcia’s agreement.
“It’s wholly unnecessary and devastating to the city.”
The buyouts aren’t the only costs related to the resignations.
Last month, the City Council approved a $55,000 appropriation for the costs of a nationwide executive search for a new city manager, which is expected to take most of the year.
The city also is giving 5% raises temporarily to acting City Manager Rod Wensing and acting Deputy City Manager Mark Jackson, until a permanent replacement for Adams is found.
The City Council has not yet discussed finding a replacement for the city attorney or municipal judge. Deputy City Attorney Vince Junglas has agreed to assume the role of city attorney on an acting basis, pending City Council approval.