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Hidden Springs council discloses settlements after undisclosed staff contracts surfaced
Summary
The council said it settled with two former employees after discovering prior councils had signed employment contracts that conflicted with the association's at-will handbook; settlements totaled $55,000 and council pledged bylaw revisions to prevent recurrence.
The Hidden Springs Town Association (HSTA) council disclosed April 22 that it reached settlements with two former employees after discovering previously undisclosed employment contracts that included six-month severance clauses. Paul Powell read a council statement saying the employees' employment ended Feb. 24, 2025, citing performance concerns including missed vendor payments and insurance lapses.
Abbey Germaine, outside counsel with Elam/Burke, told the meeting the contracts required a disciplinary procedure that, if not followed, triggered six-month severance obligations; the council negotiated settlements rather than litigating the contracts' validity. "Yes, that is correct," Germaine said when asked whether the contracts created severance obligations. The council disclosed settlement amounts of $39,000 to Shelia Southern and $16,000 to Alex Schnuerle, both less than the contracted six months.
Residents pressed for how the contracts were executed and disclosed. Jamie Matzdorff, representing the prior council's process, defended the contracts as efforts to provide office stability and said legal counsel had redrafted them. Attorney Kahle Becker criticized the payments as "fiscally irresponsible," and resident Denise Delaney described operational failures (missed inspections and unanswered calls) that she said supported the council's decision.
The council said it will report final legal costs at a future meeting and has asked its insurer to re-evaluate coverage for the claims. Council members also said a bylaw revision process will include measures intended to prevent similar undisclosed contracts in the future.
