Following a Freedom of Information request filed by the Herald-Banner, the Attorney General of the State of Texas ordered that the settlement agreement between the City of Royse City and former City Manager Karen Philippi be released to the local news media.
The Herald-Banner also obtained a copy of the original employment contract as well as the salary information of the former city manager, both of which are public information.
Under the terms of Philippi's employment contract which was negotiated prior to her being hired, the former city manager was entitled to six month's worth of her annual salary and benefits in the event that she was terminated by the city. She was also entitled to six month's value of her car allowance.
At the time of her termination, which was noted as Aug. 12 in the settlement agreement, Philippi was receiving an annual salary of $96,304.90.
The total face value of her benefits package was not fully calculated as of press time. Philippi also received an additional $4,800 annually as a car allowance, which was paid in monthly installments.
The total monetary amount paid to Philippi equalled $101,104.90, not including the value of the city manager's benefits package.
Under the contract in which Philippi was hired, she would have been entitled to $50,552.45 plus half the dollar value of her benefits package in the event that she was terminated from her position. An estimation of the total value of such a settlement would have ranged from $60,000 to $70,000 based on average benefits costs and contributions to the Texas Municipal Retirement System.
There was a termination “with cause” clause in the contract that would have absolved the city’s obligation to pay a settlement at all, but the attached terms of that clause defined “cause” as various acts of fraud, legal and moral violations or insubordination, for which Philippi was never accused.
The reason for the shortfall has been defined as “error;” which though potentially devastating, is not defined as “cause” under the terms of the contract.
Philippi settled with the city on Feb. 17 for a lump sum payment of $41,500. In addition to the lump sum severance payment, Philippi was also paid a $1,500 retainer for which she agreed that she would make herself available to the city to provide background information in any matters that involved her tenure with the city or to cooperate with the city in any legal proceedings that might arise out of actions taken by the city or its employees during the time in which she served as city manager.
That makes the total amount of compensation to Philippi an even $43,000.
For that sum, the former city manager agreed to waive any rights to any claim based on employment, any right to file legal action against the city and any additional claim for legal fees.
Philippi also agreed to a non-disclosure agreement pertaining to any confidential information regarding city business. The city likewise agreed not to make any remarks regarding Philippi's termination “except as required by law.”
The document was signed by both Philippi and city attorney Jason Day. Day has stated that he cannot comment on the matter to explain the reasoning why the former city manager accepted only 61 to 70 percent of her contract’s severance value.
Local News
AG orders release of former city manager’s settlement with Royse City
Philippi accepts less than amount stipulated in employment contract
- Local News
-
-
Commissioners look at possible library charge
The commissioners met in a workshop session this week to discuss topics ranging from the library to the impending Regional Healthcare Partnership.
-
New officials take command of Heath council
With the municipal elections passed and the final votes tallied, the Heath City Council used the meeting before the new mayor and council member sworn in May 15 to hear from the proposed Heath Golf and Yacht club developers and pass legislation that will move that project forward.
-
County debates feature multiple candidates
The County debates featured over a dozen candidates discussing topics ranging from integrity to experience May 14 at Utley Freshman Center.
-
Car-motorcycle wreck claims life of Rockwall man
A 54-year-old Rockwall man died Monday night after his small motorcycle collided with a car on an Interstate 30 service road in Royse City.
-
Heath citizen questions May 12 election legitimacy
A citizen of Heath has filed a complaint with the Secretary of State over the conduct of one of the city council candidate’s actions on election day and confusion over ballots.
-
Rockwall EDC brings Bimbo Bakeries to Technology Park
The Rockwall Economic Development Corporation has brought another great deal to Rockwall with Bimbo Bakeries USA, the largest bakery company in the USA. Bimbo will build a 300,000-square-foot bakery facility in the Rockwall Technology Park. The facility will be located between Discovery Boulevard, Data Drive and Springer Road in Phase II of the Rockwall Technology Park, located just south of Interstate 30 in Rockwall. The bakery is the largest new industrial build-to-suit project in the history of Rockwall.
-
Branding Royse City is topic of city council presentation
City officials have taken a first step that could lead to branding Royse City.
That first step involved city council members listening to a presentation by Larry Lott, executive director of the Royse City Economic Development Corporation, during a May 8 city council meeting. -
Tornado cleanup could continue with ‘day of volunteering’
Organizers who still are involved in tornado relief efforts in the Royse City area soon may issue a plea for volunteers to help pick up debris that covers a large area.
-
County election debates to be held May 14
The second of two GOP debates will begin at 6:30 p.m. in the Rockwall High School cafeteria May 14.
-
VIDEO: ELECTION RESULTS
This video will give you comprehensive coverage on the details of the May 12 elections.
- More Local News Headlines
-
Commissioners look at possible library charge
Raw Video: Deadly Bombing at Yemen Parade Preps
Professor: Chinese Activist's 'Spirit Is Good'
Ring of Fire Eclipse Seen in U.S., Asia
Golden Gate Bridge Celebrates 75 Years
G-8 Seeks Unity on Euro-debt Crisis, Iran
Prosecutors: Trio Planned to Attack Obama's HQ
Obama: G8 Unified in Stance on Iran, Syria
