The Fairview City Commission voted last Thursday to approve a Voluntary Separation Agreement with City Manager Scott Collins.
Mayor Lisa Anderson, Commissioner Brandon Butler and Commissioner Rod Dawson made up the meeting quorum with Commissioner Scott Lucas absent and one vacant seat on the board due to the November 9 resignation of former mayor Debby Rainey.
The board voted to accept a Voluntary Separation Agreement with Collins that includes nine months severance pay, 80 hours vacation time and four days pay for his last week in exchange for his resignation and cooperating for a seamless transition.
Commissioner Brandon Butler opened the discussion stating, “I’m not really sure how we got here. We went from a resignation (effective) in June to amended resignation yesterday for December of next year.” He was referencing a letter from Collins dated October 26 giving notice of his intent to resign June 30, 2023. The city commission took no action on the letter at the November 3 board meeting.
On November 9, the day after the city election, then-mayor Debby Rainey called a special meeting where a resolution was proposed to terminate Collins’ employment. Rainey motioned to approve the resolution. However, without a second, the board took no action. After the meeting, Rainey resigned her seat as mayor.
If the board had approved that resolution, Collins would have been terminated without cause and a clause in his most recent employment contract would have required the city to pay him an 18-month severance.
On November 16, Collins sent an amended letter pushing the effective date of his resignation to December 22, 2023. It also stated he was approached by elected officials about a buy-out option and was open to those “well-intended and reasonable” discussions. However, Collins advised he would not continue those discussions after Thursday’s meeting adjorned. He advised after that point, any dialogue or negotiations would be handled by his attorney talking only to the city attorney.
Collins also clarified that Rainey suggested in August that a special meeting be called the day after the election, if she did not win the mayor’s race, to propose a buy-out option for him.
At last Thursday’s meeting, Butler said, “I was approached about the possibility of a discussion of an immediate termination or immediate leave…or informed that I think both parties were interested. Tonight, we either accept the resignation for next December…or have some discussion into further opportunities.”
City Attorney Tim Potter confirmed Collins’ contract with the city requires he give a 60-day notice of resignation which he has done. “Otherwise, he can be terminated. But if he is terminated without cause, the city has a buy-out obligation to him under his contract – I think currently it’s 18 months,” stated Potter.
To terminate with cause can only be done if Collins had been convicted of a felony or found guilty of malfeasance.
He advised the board, “If Mr. Collins is willing to accept X amount of months severance and leave immediately, that could be done” with a mutual release agreement between the city and Collins. “You have the right to propose something. Mr. Collins will either agree to it or he won’t,” said Potter.
Collins then addressed the three commission members, “I’ll make this easy for you. As I have stated before and as I intimated in an email earlier today, the inclusion of 18 months worth of buy-out in my contract was a precautionary measure for myself and the city. I have not made any effort to negotiate an 18-month buy-out. In fact, the opposite of that has been true…Those conversations have come to me and that’s perfectly normal. I would offer to you… to cut those 18 months in half to nine months.”
Collins said if the board agreed, it could be effective immediately and he had prepared everything internally for the city to be able to facilitate the agreement and continue functioning.
“That would be my proposal – I think cutting it in half is fair,” said Collins.
Mayor Anderson said they were recently informed Tom Daugherty, the city chief finance officer, has been promoted to assistant city manager and it was suggested he could serve as interim city manager. Potter said the board would need to take action to appoint Daugherty as interim city manager.
Prior to the vote, Butler addressed Collins, “I only pursue this or consider pursuing this because I feel I believe it’s what you would prefer. I am very grateful for all the time and effort you have given to Fairview and working so hard for us. I just want to make sure you know that.”
After the vote to approve the Voluntary Separation Agreement, Collins exited the room and the commission approved appointing Daugherty as interim city manager. Anderson said the discussion on starting a search for a new city manager would take place after newly-elected Wayne Hall and Leslie Fischer-Street were sworn in as commissioners.
COLLINS CONTRACTS
• August 2016, Scott Collins was hired as City Manager with no contract and a base annual salary of $90,000.
• September 2017, Collins was given a three-year contract which reduced the penalty payment if he were to voluntarily resign for any reason other than retirement from $25,000 to $15,000.
• February 2018, Collins was given a new contract effective until September 30, 2020 with a base annual salary of $96,316. Other revisions to the contract related to Terms regarding termination with or without cause and resignation. The employee’s required notice of resignation was increased from 30 days to 60 days, no penalty.
• April 2019, Collins was given a new three-year contract effective until February 28, 2022 with a base annual salary of $98,204. Contract revisions included removing the requirement for the city manager to reside in the city limits; the lump sum severance for termination without cause changed from 6 months pay to 9 months pay; the required notice of resignation changed from 60 days to 30 days; and a $1,200 a year vehicle allowance was changed instead to allow Collins use of a city vehicle.
• December 2019, Collins submits notice of resignation effective January 3, 2020 to take a similar position in Nolensville. Collins is also given a contract to serve as Fairview’s part-time interim city manager from January 4, 2020 until March 31, 2020 with a salary of $1,200 per month during the search for his replacement.
• February 2020, the board, consisting of Mayor John Blade, Commissioners Debby Rainey, Scott Lucas, Rod Dawson and Derek Burks, approved allowing the mayor to negotiate and execute a new contract with Collins bringing him back as the full-time city manager. The new contract was open ended with no end date and a salary increase to $110,000. Other contract revisions changed the lump sum severance in the event of termination without cause from 9 months to 18 months of his salary; the notice to resign requirement returned to 60 days; and there remained no requirement for the city manager to live within the city limits.
The next city commission meeting is scheduled for Thursday, December 1 when the newly-elected members of the board are expected to be sworn in, and they can address filling the vacant board seat and starting a search for a new city manager.
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