Board of Mayor & Aldermen

CITY OF HENDERSONVILLE BOARD OF MAYOR AND ALDERMEN November 25th, 2024, at 7:00 p.m. 101 Maple Drive North, Hendersonville, TN 37075 Pages I. Call to Order by the Mayor II. Acceptance of Agenda III. Presentations IV. Public Hearing V. Minutes A. Approval of the 11/19/2024 Special Called BOMA Meeting minutes 2-6 VI. Citizens’ Comments VII. Ordinances and Resolutions Roberson 1. Reading of Ordinance 2024-22, an ordinance ratifying a settlement 7-19 agreement from the Management Review Committee and amending budget ordinance 2024-08 to appropriate funds for said settlement VIII. Other Agenda Items IX. Reports X. Adjournment Anyone needing accommodations due to disabilities, please contact the ADA Coordinator at 615-822-1016 at least 24 hours prior to the meeting.  CITY OF HENDERSONVILLE BOARD OF MAYOR AND ALDERMEN MINUTES OF SPECIAL CALLED MEETING November 19, 2024, at 7:00 P.M. 101 Maple Drive North, Hendersonville, TN 37075 PRESENT JAMIE CLARY, MAYOR JIM WATERS, ALDERMAN, VICE-MAYOR MARK BURGDORF, ALDERMAN RACHEL COLLINS, ALDERMAN BOB GARZA, ALDERMAN TERRI GOODWIN, ALDERMAN LEE PETERSON, ALDERMAN EDDIE ROBERSON, ALDERMAN JEFF SASSE, ALDERMAN MARK SKIDMORE, ALDERMAN LANCE WRAY, CITY ATTORNEY ANNETTE HUNTER, CITY RECORDER DESIGNEE ABSENT KAREN DIXON, ALDERMAN JANNA GARTON, ALDERMAN MICHAEL MARTIN, ALDERMAN The November 19, 2024, BOMA meeting was opened with prayer led by Alderman Lee Peterson. The Pledge of Allegiance was led by Mayor Clary. AGENDA Waters moved; Skidmore seconded a motion to accept the November 19, 2024, agenda. There was no discussion. The motion to accept the agenda was approved unanimously. Clary declared the agenda approved. PRESENTATIONS None 2 PUBLIC HEARING None. MINUTES None CITIZENS’ COMMENTS None ORDINANCES AND RESOLUTIONS The caption was read for first reading of Ordinance 2024-22, an ordinance ratifying a settlement agreement from the Management Review Committee and amending budget ordinance 2024-08 to appropriate funds for said settlement (Subject to approval by the Board, pursuant to Ordinance 2002-12). Roberson moved; Peterson seconded a motion to waive the two-week rule. There was a unanimous vote to approve the motion. Clary declared the motion carried. Roberson moved; Sasse seconded a motion to approve Ordinance 2024-22. Roberson extended his thanks to the Management Review Committee for their diligence and interest of the City at heart during the 11½-hour meeting. He also thanked the attorneys for putting things together. The ordinance in question contains an Order for clarification for the record to which the settlement agreement that was reached between the Management Review Committee and Chief Bush is attached at the end. The agreement will be signed after passing second reading. The Management Review Committee unanimously approved the Order and the settlement agreement. Clary began by saying he would love to pay all employees more, but since taxpayer money is used, a tax increase would be needed. The City decides how to pay the employees by the budget and Personnel policies. That’s a Board decision, not a mayoral decision. The policies create disparity between employees because the employees are not equal. Employees have different responsibilities, years of service, skills, and education. The positions of Fire Chief and Police Chief and paid differently because of different responsibilities, years of service, education, skills, and experience. Clary feels there is no reason to expect the Fire Chief and Police Chief should be paid the same. Clary asked several questions of different individuals for their responses and clarification. He asked Roberson if the Management Review Committee found any evidence of Chief Bush’s claim of mistreatment by Mayor Clary to which Roberson read #9 of the Order 3 (Exhibit A). The Committee found no evidence to support the claim. Clary asked Administrative Services Director Jason Gallo what Chief Bush’s salary was including supplemental pays and how the salary of a Department Head was determined. Director Gallo explained the steps taken when establishing a salary. Clary inquired who set Chief Bush’s salary. Director Gallo stated his salary was set by Mayor Foster in 2015. Clary stated that a table had been sent to Chief Bush of how his salary has changed since 2015 and asking him if there were any errors. No response was received from Chief Bush. Clary asked COO Eckenroth if there were any staff errors made in the pay. Eckenroth responded that Director Gallo had put together a table going back to 2007. Upon review, Eckenroth found the E-Pay had been done correctly, but he did find two errors in promotional processes; one was when the promotion for Division Chief was awarded, the salary was an underpayment of 2 ½ % for three months estimated to be around $380.00. The second error was when the Interim Fire Chief position was awarded, there was an overpayment of $2,800.00. The net effect of those two situations resulted in an overpayment of $2,500.00. Eckenroth clarified that salaries are not set by the mayor. In 2021, Clary did approve an increase which resulted in a net effect of an additional $10,000.00. Clary asked of City Attorney Lance Wray what inspired the grievance. Attorney Wray stated based on the grievance filed, Assistant Police Chief Jones’ promotion to Chief was the catalyst. Chief Bush noticed a disparity in pay and that Chief Jones was receiving E-Pay which was above what should have been paid. Clary asked Attorney Wray what stops other employees from following this same scenario, were there any findings of mistreatment. Attorney Wray answered there is nothing in this ordinance to prohibit employees from taking this path in the future as well as there was no mistreatment found. Clary asked Attorney Wray what his recommendations were. He responded that Chief Jones was receiving E-Pay above the level of his education and that was recommended to be taken away. Vague ordinances also contributed to the confusion with E-Pay. Clary acted upon Attorney Wray’s recommendation and the E-Pay was taken away from Chief Jones. Because there were no miscalculations found in Chief Bush’s pay, there were no recommendations for Chief Bush. Clary asked Director Gallo if Chief Bush had been allowed to store more vacation pay than others. Director Gallo responded “yes” and if it were to be paid out it would equate to approximately $40,000.00. 4 Salaries are determined by pay studies that compare the City’s compensation to other cities with like positions. Clary stated that Chief Bush asked for equity in his grievance. He was comparing his salary to the Police Chief, when the pay tables compare Fire Chief to Fire Chief; Police Chief to Police Chief. The result of this settlement is $42,000.00 above the current budget and will reduce funds available for City Services. Clary stated that Chief Bush expressed he wanted to be paid equitably. Clary feels this situation has been very unfair to the Chief Jones. In the past there have been inconsistent pay policies that played favorites. Clary and City staff have been working to fix the policies and make them consistent. Clary stated he cannot support this ordinance and the money should be spent on other City services. Roberson shared Clary’s opinion of Chief Jones and read number 10 in the Order (Exhibit A) to summarize. Roberson moved; Peterson seconded a motion to amend Ordinance 2024-22 by adding Exhibit A-1. There was a unanimous vote to amend the motion to add the Exhibit A-1 to Ordinance 2024-22. Clary declared the motion carried. Roberson added that neither the grievant or the City admits any liability or responsibility. Attorney Wray added that both parties and attorneys had exchanged exhibits as referred to in the Order (Exhibit A) and with the addition of Exhibit A-1. There was a nine (9) to one (1) vote to approve Ordinance 2024-22 as amended with voting as follows: Aye: Burgdorf, Collins, Garza, Goodwin, Peterson, Roberson, Sasse, Skidmore, and Waters. Nay: Clary Clary declared the motion carried. Upon motion by Goodwin and second by Garza, there was a unanimous vote for approval to adjourn. 5 Clary declared the meeting adjourned at 7:29 p.m. Approved: Jamie Clary, Mayor Attest: Tamara Ingersoll, City Recorder 6  ORDINANCE 2024-22 Sponsor: Roberson AN ORDINANCE RATIFYING A SETTLEMENT AGREEMENT FROM THE MANAGEMENT REVIEW COMMITTEE AND AMENDING BUDGET ORDINANCE 2024- 08 TO APPROPRIATE FUNDS FOR SAID SETTLEMENT WHEREAS, pursuant to Ordinance 1988-6, a Management Review Committee (MRC) hearing was conducted on October 24, 2024, at the request of a department head, Fire Chief Scotty Bush, to hear his grievance over the application of education attainment pay and the appearance of rules and regulations being applied unfairly to the department head; WHEREAS, at the conclusion of the hearing the MRC recommended a settlement agreement in which neither the City nor the department head admitted to any error, liability or incorrectness in their respective claims and positions; and which now requires ratification from BOMA: NOW, THEREFORE, BE IT ORDAINED by the Board of Mayor and Aldermen of the City of Hendersonville, Tennessee as follows: SECTION 1: That the Management Review Committee’s Order, and the Settlement Agreement and Mutual Release resulting from the October 24, 2024, Management Review Committee, as attached hereto as collective Exhibit A, is hereby ratified. The Mayor is authorized to execute the Settlement Agreement and Mutual Release, and any other necessary documents to effectuate the same. SECTION 2: The City’s Fiscal Year 2025 Budget Ordinance, Ordinance 2024-08, is hereby amended in accordance with the adjustment set forth in the attached Exhibit B relative to the above referenced Management Review Committee settlement. This ordinance shall take effect at the earliest date allowed by law. First Reading: November 19, 2024. Passed. Second Reading: _____________________________ APPROVED: __________________________ JAMIE CLARY, Mayor ATTEST: APPROVED AS TO FORM AND LEGALITY: __________________________________ _____________________________________ TAMARA INGERSOLL, City Recorder LANCE A. WRAY, City Attorney 7  LEGISLATIVE HISTORY Ordinance 2024-22 Sponsor: Roberson Committee: Management Review Committee Date of Committee Meeting: October 27, 2024 Committee Recommendation: Yes. First BOMA Reading: November 19, 2024 Amendment: There was a motion to add Exhibit A-1 to the Ordinance. Vote: Aye: Burgdorf, Collins, Garza, Goodwin, Peterson, Roberson, Sasse, Skidmore, Waters, and Clary. Nay: None. Absent: Dixon, Garton, and Martin. Motion carried. Vote on Motion as Amended: Aye: Burgdorf, Collins, Garza, Goodwin, Peterson, Roberson, Sasse, Skidmore, and Waters. Nay: Clary. Absent: Dixon, Garton, and Martin. Motion carried. Second BOMA Reading: November 19, 2024 8 EXHIBIT A 9 10 11 12 13  SETTLEMENT AGREEMENT AND MUTUAL RELEASE This Settlement Agreement and Mutual Release (“Settlement Agreement”) is made and entered into by and between Jeffrey “Scotty” Bush (the “Grievant”) and the City of Hendersonville, Tennessee (the “City”), all of whom are sometimes collectively referred to as the “Parties.” This Settlement Agreement and Mutual Release is entered as of the Effective Date, which shall be the date the City’s Board of Mayor and Aldermen (“BOMA”) ratifies the settlement agreement between the parties; WHEREAS, Grievant filed a grievance with the City Mayor regarding rules and regulations being applied differently to him in the application of the City’s educational attainment pay policies (the “Grievance”) and appealed the mayor’s decision to the City’s Management Review Committee (“MRC”); and WHEREAS, the MRC held a public hearing on October 24, 2024 (the “Hearing”) to hear testimony and review evidence regarding the Grievant’s claims; and WHEREAS, upon conclusion of the Hearing, and though neither the City nor the Grievant admit to any liability or responsibility for, or the correctness of, any of the claims which were or may have been asserted by the Parties or by any third party, but solely for the purposes of resolving this dispute and avoiding further costs and proceedings, the Committee presented a settlement offer which was then further negotiated by the parties and ultimately presented to the Committee by the Grievant. After further review, and deliberation and approval by the Committee, the parties agreed to enter into a settlement as afforded by the stipulations agreed to by the Parties for the hearing; and WHEREAS, the Parties recognize the uncertainties, time, and expense involved in the dispute evolving further, to pursue and defend claims, and have determined that it is in their best interests to resolve the differences among them by compromise and settlement in accordance with the terms of this Settlement Agreement. The Parties now desire to forever settle and resolve any and all claims having any connection with or arising out of or relating in any way to the Grievance. NOW THEREFORE, for and in consideration of the mutual covenants, agreements, and undertakings set forth below, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties represent they have authority to enter into this Settlement Agreement and in turn, agree as follows: 1. Consideration. City agrees to pay Grievant the following: a. A two and one-half percent (2.5%) increase to Grievant’s December 12, 2023, Payroll Action Form (PAF) retroactive to the date the grievance was filed which is May 22, 2024, which shall be treated as wages for tax purposes; b. A cash payment of $17,500.00 as non-taxable compensatory damages to be paid in four (4) quarterly payments of $4,375.00 beginning on or before December 14  15, 2024, and shall continue quarterly thereafter, and a Form-1099 shall not be issued; i. In the event Grievant’s employment with City terminates for any reason; including but not limited to retirement, quarterly payments shall continue until all damages have been paid in full to Grievant. c. Upon ratification of the settlement agreement by BOMA, the effectuation of the pay increase described above, and payment in full of the $17,500.00, the release of all claims shall become effective and enforceable. 2. Release of Claims. Grievant does hereby RELEASE, ACQUIT, AND FOREVER DISCHARGE City as well as its current representatives, officers, employees, agents, administrators, and executors, from all claims, demands, debts, liabilities, and causes of action related to the Grievance conditioned upon the effectuation of the pay increase detailed in paragraph 1(a) above and receipt in full of the cash payment detailed in paragraph 1(b). Grievant reserves all rights and remedies in the interim, and this release provision does not become full and final until all payment steps under paragraph 1 have been fulfilled. This Settlement Agreement shall not be construed to release any future claims that may arise between the Parties for matters outside of the scope of the Grievance. 3. Attorneys’ Fees. a. Upon ratification of the Settlement Agreement, the City shall pay directly to Shields Construction Law, PLLC a one-time payment of $24,475.00 for Grievant’s attorneys’ fees and costs within thirty (30) days of ratification by BOMA but not later than December 23, 2024; such payment shall be considered non-taxable for purposes of Grievant’s tax returns. b. Further, upon ratification, BOMA shall immediately appropriate the necessary funds to pay the attorneys no later than December 23, 2024, and shall call a special session if necessary to approve the appropriation. c. In the event of a dispute arising out of or related to the enforcement of this Settlement Agreement, the prevailing Party in such dispute shall be entitled to collect its attorney’s fees and costs from the non-prevailing Party in enforcing such Party’s rights hereunder. 4. No Admission of Liability. The Parties to this Settlement Agreement expressly recognize and agree that any agreement or payment made herein is not considered admission of any liability or responsibility for, or the correctness of, any of the claims which were or may have been asserted by the Parties or any third party, but that this Settlement Agreement is made solely for the purposes of resolving this dispute and avoiding further costs and proceedings. 5. Confidentiality. Pursuant to the Tennessee Open Meetings Act, also known as the Sunshine Law, this Settlement Agreement is a matter of public record and shall not be confidential. 15  6. Joint Efforts. The Parties agree that this Settlement Agreement shall be deemed for all purposes prepared through the Parties’ joint efforts and that the language of the Settlement Agreement will be deemed to be language expressing their mutual intent. No rule of strict construction shall be applied against a Party as a result of the preparation, drafting, submittal, or other event of negotiation, drafting, or execution of this Settlement Agreement. 7. Choice of Law and Venue. This Settlement Agreement shall be construed and interpreted in accordance with the laws of the State of Tennessee, without regard to its choice of law or conflict of law provisions. This Settlement Agreement is made and is performable in the State of Tennessee. Any action arising out of this Settlement Agreement shall be brought and deemed to arise in a court of proper venue in Sumner County, Tennessee. 8. Severability. If any portion or portions of this Settlement Agreement may be held by a court of competent jurisdiction to conflict with any federal, state, or local law, and as a result such portion or portions are declared to be invalid and of no force or effect in such jurisdiction, all remaining provisions of this Settlement Agreement shall otherwise remain in full force and effect and be construed as if such invalid portion or portions had not been included herein. 9. Counterparts; Electronic Execution and Delivery. This Settlement Agreement may be executed by facsimile or email, in counterparts, in which case this Settlement Agreement shall include each executed and delivered counterpart, each of which shall be deemed to be part of a single instrument. 10. Entire Agreement. The Parties agree this Settlement Agreement constitutes the entire agreement and obligations of the Parties and supersedes any written or oral proposal or agreement between the Parties and/or their representatives. (Signatures on next page) 16 JEFFREY “SCOTTY” BUSH By: Dated: ____________________________________ THE CITY OF HENDERSONVILLE, TENNESSEE By: Dated: ____________________________________ 17  EXHIBIT B BUDGET AMENDMENT WORKSHEET Requested Requested Expenditure Revenue Use of Fund Account Code Account Name Current Budget Amendment Amendment Balance Adjusted Budget Justification 1 110-000-42200-0043-0000-511100- SALARIES - PERM EMPLOYEE - REG $ 9,350,100.00 $ 4,151.00 $ 3,741.00 $ 9,354,251.00 Settlement Payment to Chief Bush 2 110-000-42200-0043-0000-514300- EMPLOYEE RETIREMENT PLAN (TCRS) $ 1,315,500.00 $ 597.00 $ 597.00 $ 1,316,097.00 Settlement Payment to Chief Bush 3 110-000-42200-0043-0000-515000- SOCIAL SECURITY TAX EXP $ 579,600.00 $ 258.00 $ 258.00 $ 579,858.00 Settlement Payment to Chief Bush 4 110-000-42200-0043-0000-515100- MEDICARE TAX EX $ 135,600.00 $ 61.00 $ 61.00 $ 135,661.00 Settlement Payment to Chief Bush 5 110-000-41620-0013-0000-559610- EMPLOYEE SETTLEMENT $ - $ 13,125.00 $ 13,125.00 $ 13,125.00 Settlement Payment to Chief Bush 6 110-000-41620-0013-0000-525900- OTHER PROFESSIONAL SERVICES $ 29,500.00 $ 24,475.00 $ 24,475.00 $ 53,975.00 Settlement Payment Attorney for Chief Bush $ 42,667.00 $ 410 Current Operating Budget Surplus $ (42,257) Operating Surplus After Amendment 18 DATE: November 25, 2024 ORDINANCE/RESOLUTION # Ordinance 2024-22 For BOMA to ratify MRC Order and Settlement Agreement SPECIFIC REQUEST/ RECOMMENDATION: and amend budget ordinance 2024-08 by appropriating funds in the amount of $42,667 for related expenses. STAFF REPORT REPORT PREPARED BY: Tamara Ingersoll, Finance Director BACKGROUND: 1 On October 24, 2024 the Management Review Committee met to review the employee grievance filed by Chief Bush. DISCUSSION: 2 The Management Review Committee was provided information and testimony from both the City and Chief Bush as well as several other people. The Management Review Committee recommended a settlement amount of $17,500 to be paid quarterly (three quarterly payments will be made in FY2025 totaling $13,125 and one in FY2026 totaling $4,375), a 2.5% increase in pay applied retroactive to May 22, 2024 (the date the grievance was filed) totaling $4,151; the City is required to pay TCRS, Social Security and Medicare on the retroactive pay in the amount of $916. The committee also recommended payment for attorney fees in the amount of $24,475 for a total settlement expense of $47,042 ($42,667 in FY25 and $4,375 in FY26). FISCAL IMPACT: 3 A FY25 budget amendment is needed for $42,667. This amendment will result in depleting the remaining General Fund surplus of $410 and will use General Fund available fund balance in the amount of $42,257. Fiscal Year 2026 (FY26) Budget will be liable for the 4th quarterly payment of $4,375, to be budgeted during the FY26 budget cycle. ATTACHMENTS: 4 Exhibit A – Management Review Committee Order and Settlement Agreement & Mutual Release Exhibit B – Budget Amendment Worksheet 19