Council backs standard caps for severance pay, asks staff to return draft for new hires

Councilmembers discussed a proposed standard schedule for severance pay that, if adopted, would cap severance amounts while preserving negotiating flexibility for contracts.

City Manager Ed presented a recommendation that the city manager receive up to 20 weeks of severance, the assistant city manager up to 16 weeks, department directors up to 12 weeks, and other contract employees up to eight weeks. Ed said severance is rarely used and that the last time the city paid severance was 2018 (to Mr. Watkins).

Councilmembers said they liked a capped schedule because it preserves a negotiating tool while preventing past instances of exceeding limits. Several members agreed that a cap with an “up to” allowance keeps management flexibility for negotiating while standardizing maximum liability for the city. Council asked staff to prepare a draft policy implementing the standardized schedule (to apply to new hires unless otherwise specified) and to return it for formal action at a future meeting.

No roll-call vote occurred during the work session; staff will return a draft for the council to consider.