Shenandoah residents came out in full force at the council’s regular workshop meeting Wednesday night to express concerns regarding the city administrator’s employment contract and a pre-existing city ordinance, of which the contract was previously in violation. The council discovered over the past month that Shenandoah had an ordinance in place from 1995, which prohibited the city from entering into employment agreements or contracts with the city administrator. However, during a special meeting Feb. 1, Shenandoah City Council entered into a contract with City Administrator Greg Smith in a 3-2 vote during executive session. The contract voted on in early February stipulates that if Smith were to be terminated for reasons other than cause, he would receive his normal salary and benefits until he starts a new city administrator or manager job or for up to two years, whichever comes first. Smith, who began working for the city of Shenandoah in November 2009, has an annual salary of $156,472.80 with a monthly car allowance of $1,200 and a monthly cell phone allowance of $120, according to details provided through an open records request. Twenty-two residents voiced their opinions on both sides of the matter during the citizen's forum which lasted roughly an hour. Among these concerned citizens were Position 2 candidate Charlie Bradt, Randy Smith, husband of Position 3 Candidate Nancy Smith, and former Shenandoah Mayor Gary Watts. “Apparently, this agreement was voted on in February of this year in direct violation of the city of Shenandoah’s own ordinances,” resident Esther Lum said. “So, from my understanding, what’s happening tonight and what’s generated this intense interest is that there is a item on the agenda to sort of fix something that was done in violation of city ordinances—that’s very troubling to me. For me, this is just the last straw, the icing on the cake … this does not make Shenandoah look good.” However, several council members asserted that previous Shenandoah city councils had likewise entered into employment contracts with previous city administrators in spite of the ordinance. “I support the city administrator having a contract—both current and future other contracts—not just this man here tonight,” Council Member Jean Teague said. “This is in the best interest of the city and it is apparent that the majority of our previous City Council members of the past also have supported this because they have voted in favor of contracts for current and previous city administrators since 1998. I support this ordinance being repealed and changed.” Council Member Darrell Frazier said he requested information from 14 cities across the state of Texas, all of which had employment agreements with their respective city administrator or city manager. “This should be sufficient evidence that written agreements are a normal practice,” Frazier said. “This portion of the ordinance is not in the best interest of the city of Shenandoah because it promotes greater instability for the city because an administrator without a contract is an administrator who is looking for a more secure position with a contract.” Council Member John Houston said he consulted with the Texas Municipal League on the issue as well and found that the only time there is an issue with having an employment contract between the city and city administrator is if the city administrator is an elected position—which is not the case in Shenandoah. In a 4-1 vote, the council repealed the ordinance with Council Member Ron Raymaker in opposition. “The existing rule prevents the City Council from abusing tax payers rights and dollars,” Raymaker said. “By taking this rule off the book, it gives us the opportunity to do something that maybe we probably shouldn’t be doing.”

Ratifying the contract

Since the ordinance was repealed, the council also had to determine whether they would ratify the previously agreed upon contract between the city and Smith. “This is not a golden parachute; it’s a provision designed to provide the city administrator with enough financial stability to focus on his job and not on future employment,” Frazier said. “Someone of his caliber is a desirable candidate for many larger municipalities and we should focus on retaining his services.” Although the contract was not up for re-negotiation during the council meeting, Raymaker urged the council to cut back on the severance package. Council Member Michael McLeod also asserted that the contracts between other cities and their city administrators or city managers look significantly different from the one in Shenandoah and should be looked to for guidance. Mayor Ritch Wheeler called for a change in the previously practiced committee process for future major decisions made to include the entire council. “I don’t like the process and I think the process is what got us here,” Mayor Ritch Wheeler said. “As mayor, I have a hard time signing my name to the bottom of a contract that I didn’t get any input on and was basically told, ‘You don’t have enough experience to be on the committee so we’re going to take you off.’ I think that was a bad format and, in the future, with contracts of this magnitude, I think all six of us need to be in a room. If it takes us eight hours to figure it out, by God that’s what we signed up for.” In a 3-2 vote, the council ratified the city administrator’s employment contract, with Council Members Raymaker and Mike McLeod in opposition. To view the full April 11 agenda, visit www.shenandoahtx.us