Tuesday, March 10, 2009

Settlement Agreement Indicates Schulte Was Pushed Out




Pursuant to a Sunshine Law request The O'Fallon Observer has obtained a copy of the settlement agreement entered into between ex Chief Jerry Schulte and O'Fallon. Mayor Donna Morrow and CA Bob Lowery have claimed that Schulte left the city on his own while Schulte indicated he was pushed out. Those who want to review the entire document can do so by clicking here. The document itself lends further support to Schulte's statements that he was asked to leave and brings into question once again the credibility of Lowery and Morrow. Here are some of our observations;



  • Employees who retire or quit of their own free will do not enter into settlement agreements. Generally, these types of agreements are reserved for employees who are "offered" an early retirement package or workers who were fired and assert a wrongful termination claim.

  • The settlement agreement includes language that Schulte is releasing various claims he may have against the city including a claim for wrongful termination. If Schulte truly retired he would not have any claim against the city and there would be no need for this agreement much less a release of claims clause.

  • It is probably inaccurate to say that Schulte was "forced" out because neither Morrow or Lowery has this power. Morrow would need the support of at least four councilmen and Lowery simply does not have the power to fire the Chief. However, Lowery and Morrow do have the ability to make life miserable for a Chief they want out and if they approached Schulte about leaving, as Schulte has claimed, his options were to stay, fight and risk getting nothing or work in a hostile envirnment. Working in such a hostile envirnment is something we understand the employees at city hall know all to well. Thus, while Schulte was not "forced" out the door by the Mayor and Lowery you can bet they pushed him as close as they could get him.

  • Why is Schulte still being paid? Again, if he really retired there would be no reason to pay him so this is another indication he was pushed out. However, since Morrow and Lowery had no right to fire the Chief what right do they have in using taxpayer dollars to buy something they could not do legally? This is a clear abuse of power on their part and the council should be demanding answers.

Finally, the settlement agreement is silent on one important aspect, how much money is the city paying Schulte. As part of our Sunshine Law request we asked for this number and we're told by City Clerk Pam Clement that "Vicki Boschert will provide the total amount you requested." Vicki Boschert sent us the following in an email;

    • The City does not have a document, to my knowledge, that compiles the total cost of the severance agreement provided to Jerry Schulte . Pam and I discussed this earlier today and I am providing you with information in which you may be able to utilize to calculate the costs. This is the best document that I have to provide you with the information you are looking for. This is a copy of the wage budget that was utilized to estimate what the total maximum costs for this position would be. The only benefit item not listed on this document is the health insurance and the reason for this is because the City is self-insured and we pay actual claims.

I guess when you're spending other people's money you don't need to worry how much.

2 comments:

  1. I feel that this statement is slightly inaccurate.
    "It is probably inaccurate to say that Schulte was "forced" out because neither Morrow or Lowery has this power."

    ARTICLE III. CITY ADMINISTRATOR SECTION 115.080: DUTIES Para E, Last sentence: "The City Administrator shall have the power to appoint and remove (in accordance with Personnel System Regulations approved by the City Council) all subordinate employees of the City of O'Fallon

    The only reason that they didn't go this way is the requirement of an open hearing, if requested.

    In the Charter, it would require the Council to be pre-notified, with documentation

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  2. It would seem Jim Blechle is playing bothsides against the middle.

    ReplyDelete