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City council, administrator sign separation agreement

A separation agreement was signed with Osceola City Administrator Bill Kelly last week after the city council held a special closed session.

Kelly was placed on administrative paid leave by the council for disorderly conduct after Kelly acted in a disruptive manner during a recent budget meeting.

However, Mayor Fred Diehl said there were other previous actions of Kelly that led to the council’s final decision.

The council voted 5-1 to terminate Kelly’s contract and enter into the separation agreement. Councilmember Glenn Schaff said he was in favor of terminating Kelly, however, he was not in favor of the agreement package the council approved.

“We had just reason to fire him,” he said. “I didn’t feel we should give him a total of eight months of pay. I just couldn’t go along with that.”

Councilmember George Fotiadis voted in favor, “reluctantly.”

Kelly served as city administrator for five years. City Clerk Ty Wheeler will be filling in temporarily as administrator. Diehl said although Wheeler is young he feels it’ll be a good opportunity for him.

“He can do it. He’s got the ability. He’s bright,” said Diehl. The council approved appointing Wheeler as the interim administrator Tuesday night.

The agreement

According to the agreement, the employment contract, entered into with Kelly in November 2007, will be terminated without cause. The city’s 60-day notice of termination was issued, effective Feb. 17, and the date of termination will be Apr. 17.

The agreement states that after the date of termination, “the city shall issue to the employee payment of severance equal to six months salary, six months of insurance benefits, and accrued vacation less any applicable employee insurance contributions.”

In addition, the city agrees to allow Kelly to reside at his home through Oct. 17 under the pre-existing agreement reached in November 2009. However, the city won’t compensate Kelly for the rental value of the residence in the event Kelly moves prior to Oct. 17.

The agreement states the employee agrees to waive any and all legal claims against the city.

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