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Kyle council authorizes mediation in former city manager pay dispute
Summary
After briefing from outside counsel, the council voted unanimously to authorize mediation in a dispute over a former city manager’s pay and benefits and to send the interim city manager and a council representative to negotiate.
The Kyle City Council on July 21 authorized mediation in a dispute with the city’s former manager over whether certain credited leave and deferred-compensation amounts are owed.
Interim City Manager Perez Mohit and outside counsel Frank Garza briefed council on a July 6 demand from the former manager’s attorney asserting the city owed payment for credited vacation and sick leave and additional 401(a)/457 contributions. Garza said the dispute turns on contract language in amendments adopted in 2025 and recommended mediation to avoid costlier litigation.
"It is my recommendation that we go through mediation," Garza said, advising the council that mediation would preserve the city’s options while limiting legal expense. He described potential exposure in the “$200,000 range” if the full credited hours and related claims were accepted by a tribunal.
Mayor Cowley moved to authorize the interim city manager and Councilmember Goza to attend mediation, a motion seconded by Mayor Pro Tem Tobias. The council voted 7-0 in favor.
Councilmembers asked Garza and Mohit to return with a proposed mediator and schedule; Garza said staff would contact the mediator once selected. Mohit advised that any settlement would come back to council for final approval.
The mediation authorization does not itself concede liability; it directs staff to negotiate and report back. The council also placed related matters in the meeting record for future committee or full-council consideration as required by governance rules.
No date for the mediation was announced at the meeting. The council recessed to executive session later in the agenda and reconvened to adjourn.
