Lakewood – Behind closed doors, the City Council discussed “a personnel matter pertaining to the city manager” at a hastily called meeting that stretched late into Thursday night.
City Manager Mike Rock’s benefits and expenses recently have been questioned as the city prepares to slice $11.5 million from the next two years’ budgets and possibly ask voters to increase the sales tax from 2 percent to 3 percent.
After five hours, Mayor Steve Burkholder said the meeting had adjourned without a resolution but added he expected a decision in the near future after another executive session.
Several residents have been vocal in their irritation about the budget woes, which they blame on Rock and elected officials.
“We have an arrogant, irresponsible city manager,” said former councilwoman Dorothy Wisecarver. “The council is irresponsible. The tail wags the dog, and Mr. Rock needs to go.”
Council President Carol Kesselman said she, Burkholder and Councilwoman Debbie Koop requested the meeting. Since the topic involved a personnel issue, Kesselman said she couldn’t talk about what was going to be discussed.
City Attorney Roger Noonan asked that the meeting be closed so the council could discuss personnel matters and he could advise the city as their attorney.
Noonan said he told Rock and his attorney about the nature of the executive session.
Rock, 57, has been city manager since December 1992 and earns $196,102 annually, plus use of a city vehicle and other benefits.
He would receive one year’s salary plus benefits as severance if he is fired with cause.
“Cause” includes conduct that is fraudulent or dishonest, conviction of a felony involving moral turpitude, or failure to fulfill his obligations.
The city would give Rock written notice of the obligation failure and give him “reasonable” time to cure the problem.
Under the contract, Rock can question the notice. If the issue can’t be resolved, the matter would then go to binding arbitration.
In 2000, the City Council approved a 10-year contract that provides a 4.5 percent per-year salary increase and changed Rock’s “golden parachute” if he is fired without cause.
The city made a one-time contribution of $767,000 to a pension fund for Rock, and Rock contributed $300,000 of his own money.
If Rock is fired without a reason before 2010, he will control the fund, which is expected to pay 60 percent of his salary until he is 80.
If Rock leaves before the contract expires, he will have to pay the city $150,000 and wouldn’t be entitled to severance. He would forfeit his retirement benefits except for his $300,000 contribution and whatever interest that has earned.
Staff writer Ann Schrader can be reached at 303-278-3217 or aschrader@denverpost.com.