Mon
Aug 30 2010
02:29 pm

KNS: Three Knox employees who resigned to collect $112K in severance.

County Commissioner R. Larry Smith is not a happy camper.

Library director Larry Frank appears to be a loss for Knox County. The other two...

In related news, Larry Van Guilder runs down the challenges facing incoming County Mayor Tim Burchett when he arrives at his office Wednesday morning.

Bad form or broken law?'s picture

From the KNS comments: “The

From the KNS comments: “The county does not have employment contracts. No county employee has a contract, not matter how high their position.”

That was the first thing I thought of when reading the story. How hard would it have been for the reporter to have asked? If you are handed a story about somebody receiving questionable payment, it should dawn on somebody to ask whether it’s legal or not.

It is either bad form or a legal problem. KNS should help readers determine.

RigsbyWerner's picture

Probably hush money on non-bid contracts/buried bodies

in my opinion, this was a nice parting gift to ensure additional silence and no comments associated with the disparaging nature of the Ragsdale administration. What started as a tremendous opportunity to an abundance of optimism is buried in scandal, divorce, empty rainy day fund, underfunded pension, economic stagnation, underfunded school systems, and an abundance of form over substance. We all thought Bill Haslam was going to have a tough time as mayor of Knoxville, but in reality, he'll be the next governor of Tennessee and Mike Ragsdale will have to lean on longtime associates in the electrical contracting business for a job, health insurance, possibly a car, and football tickets to see a team as mired in mediocrity and irrelevance as Mike Ragsdale is now. How can he show his face in this town is beyond me.

smalc's picture

I would classify Dupes as a

I would classify Dupes as a political appointee, but would have thought Frank and Wuethrich are civil servants.
Do they "serve at the pleasure of the mayor" as well?

knoxvegas99's picture

Resigned?

Frank, Wuethrich and Dupes were fired - "resigning" employees don't get severance. All three were on Mayor-elect Burchett's Those I Can Do Without list for assorted reasons. Ragsdale did the incoming mayor a favor.

LVG

Hoyt Conner's picture

"Ragsdale did the incoming

"Ragsdale did the incoming mayor a favor."

How so Larry? It would seem to me just the opposite.

R. Neal's picture

Frank, Wuethrich and Dupes

Frank, Wuethrich and Dupes were fired

That was my guess, as far as how it would show up on county records. Whether it was voluntary or not, whatever.

vernon's picture

They were all notified by

They were all notified by lobster-gram.

vernon's picture

and you re from virginia, go

and you re from virginia, go figure

vernon's picture

tool

my feelings are really hurt,maybe a recycled man bag would cheer me up if you feel bad.

knoxvegas99's picture

How so Larry? It would seem

How so Larry? It would seem to me just the opposite.

Ragsdale spared Burchett an unpleasant task.

LVG

Hoyt Conner's picture

"Ragsdale spared Burchett an

"Ragsdale spared Burchett an unpleasant task."

That doesn't make sense. Are you defending Ragsdale?

Rachel's picture

Burchett would have had to

Burchett would have had to fire these people. Firing people is unpleasant (take it from someone who has done it).

By allowing them to resign before Burchett took over, Ragsdale did Burchett a favor.

Hoyt Conner's picture

"Burchett would have had to

"Burchett would have had to fire these people. Firing people is unpleasant (take it from someone who has done it).

By allowing them to resign before Burchett took over, Ragsdale did Burchett a favor."

Again, that makes no sense. Ragsdale raided Burchett's budget to pay for the severance. And made Burchett look weak. Other than rumors and hearsay there is no proof that Burchett planed to fire these people except for Dupes.

Also, I asked LVG. Let him answer.

Rachel's picture

Ragsdale raided Burchett's

Ragsdale raided Burchett's budget to pay for the severance.

The KNS reported that the severance had no effect on the budget because the $$$ came from funds allocated to positions not filled.

And I'll speak when I want to, thanks. Don't need your permission.

R. Neal's picture

What's the deal with Frank? I

What's the deal with Frank? I seem to recall that he wasn't happy about Burchett's remarks that there would not be a new downtown library on his watch, or something like that. Is that it? By all accounts he is highly qualified and was doing a pretty good job.

Rachel's picture

I think Frank/Burchett is a

I think Frank/Burchett is a clash of differing philosophies wrt libraries. And I very much fear that Burchett plans to privatize library management.

I hope it's just a fear, but he HAS talked about privatizing some functions, so I wonder....

Rachel's picture

Let me emphasize that I have

Let me emphasize that I have absolutely no evidence that Burchett is planning to do this. I'm only speculating based on Frank's departure and what Burchett has said about privatizing some functions.

I may well be 100% wrong, do don't anybody go quoting me as an authority on this.

Rachel's picture

I'm hearing through the

I'm hearing through the grapevine now that Burchett has said he wasn't going to privatize library management.

So my speculative powers seem to be all wet.

Just Bad Form's picture

From today’s more thorough

From today’s more thorough article, it appears no policy was broken.

Not because that which was done was within policy guidelines, it’s because there is no policy.

If Smith wants to do something besides make hay, he should write one.

knoxvegas99's picture

Hoyt

Burchett didn't want to do the deed. Ragsdale did him a favor. You'd have to ask Ragsdale what his motives were.

LVG

Hoyt Conner's picture

"You'd have to ask Ragsdale

"You'd have to ask Ragsdale what his motives were."

I'd doubt that would be possible for a civilian. Ragsdale doesn't return calls. Do you in the press plan to ask Ragsdale that question? You would stand a better chance getting an answer. People would like an answer.

michael kaplan's picture

it's true, there are several

it's true, there are several members on this list from the press, and that question would be a logical one to ask - directly.

Barker's picture

questions

As Mike Donila noted in his article, members of the Ragsdale administration aren't returning calls from the press either.

Scott Barker
KNS

R. Neal's picture

Metro Pulse: Will Burchett

Sandra Clark's picture

This is nuts

How does one privatize the free circulation of books? I think Burchett will calm down the library system ... emphasizing materials and access rather than monuments and fancy staff.

Good move to replace Larry Frank.

Tim's dad volunteered considerable time as a member of the library board. I think it's time for Knox County to revert to the state model, but with more oversight (and term limits) toward board members. -- s.

Rachel's picture

I dunno. The board members

I dunno. The board members are appointed by Commission. Many of the picks in the past have been, to put it charitably, god-awful (although there have been some good ones as well). I need to be convinced that Commission can make decent appts.

Just curious - who are the "fancy staff" you speak of? I'm suppposing you include Larry, but who else? When I worked for FOL I didn't see much in the way of "fancy", but I've been gone for 3 years so maybe things have changed.

Sandra Clark's picture

oops

Mistyped. Meant fancy buildings .... not fancy staff.

Rachel's picture

Ok - THAT makes sense.

Ok - THAT makes sense. Thanks.

michael kaplan's picture

i've never thought of the

i've never thought of the local library buildings as being fancy. they're pretty simple. if you want fancy, check out the neo-classical nashville central library. it defines pretentiousness.

rikki's picture

Now the Law Director is

Now the Law Director is saying Ragsdale had no authority to negotiate these severance packages.

Two things concern me about this:

  • How can these three be treated the same? Weuthrich in particular has been working for Knox Co almost 30 years
  • Does it matter whether you resigned or got fired when it comes to collecting unemployment?

It's fairly obvious this was a resign-or-get-fired situation, at least for Dupes and Frank. If resigning made them ineligible for unemployment compensation, they just got doubly screwed.

Rachel's picture

Here's another: there have

Here's another: there have been numerous employees who received severence packages over the last few years. Is the county going to make them repay the $$$ since granting severence is illegal? If not, why not? Is it fair to penalize these 3 people and not the others?

I smell potential court cases and a great big mess. Pay the guys their $87k and get on with it.

rikki's picture

there have been numerous

there have been numerous employees who received severence packages over the last few years

Good grief. I was going to ask that too, whether this situation is actually novel. Since the LD mentioned an absence of precedent, I gave him the benefit of the doubt that he had at least checked whether previous county executives had done the same thing.

Another missing piece to the legal argument is why severance should be considered separately from the general hiring and firing authority the county mayor holds. The mayor is at liberty to create or eliminate jobs and to negotiate salaries. Can you really tease out severance pay as a distinct power?

Rachel's picture

I'm not sure whether the

I'm not sure whether the other employees given severance pay were in the Mayor's office or other offices. I know some were in the Trustee's office.

However, I don't see why the Trustee would have the authority to give severance and the Mayor wouldn't. But then the legalities of the Constitutional offices are something of a mystery to me.

Your last paragraph makes some sense to me. I may be completely wrong, but it kind of looks like the county is playing "chicken" with the employees, daring them to go through the pain and expense of a lawsuit.

At any rate, it's clear that there needs to be a policy going forward on this.

rikki's picture

At any rate, it's clear that

At any rate, it's clear that there needs to be a policy going forward on this.

I'm not sure I agree with that. There may already be a policy, one that simply grants the mayor the routine powers of staffing an organization. Reactionary policy-making often does more harm than good. This looks like the Rags raggers realizing they have one last chance to make hay before their whipping boy vanishes.

Tamara Shepherd's picture

*

Rachel: "...there have been numerous employees who received severence packages over the last few years..."

Rikki: "I was going to ask that too, whether this situation is actually novel. Since the LD mentioned an absence of precedent, I gave him the benefit of the doubt that he had at least checked whether previous county executives had done the same thing."

One of Mike Donila's previous KNS stories said only that 17 former county employees had received severence pay during Ragsdale's tenure, but Mike didn't comment on the practices of Ragsdale's predecessors. I therefore asked him in today's comment thread whether he might look into that for readers.

Rikki: "Another missing piece to the legal argument is why severance should be considered separately from the general hiring and firing authority the county mayor holds. The mayor is at liberty to create or eliminate jobs and to negotiate salaries. Can you really tease out severance pay as a distinct power?"

Jarret includes in his memo a reference to the Supreme Court of Tennessee consistently ruling that "public officers can receive no fees or costs except as expressly authorized by law," that "fundamental in TN law is the maxim that local governments may exercise only those express or necessarily implied powers delegated to them...in their charters...," and that the Court further ruled "when a local government fails to act within its charter...the action is ultra vires (in excess of legal power or authority) and as such, void or voidable by operation of law, thus subjecting the county to litigation."

Does the one side suggest that the three employees could sue if they DON'T get severence pay, while Jarret suggests that someone (who?) could sue if they DO get it?

And if the three should sue, how vigorously may we expect Mrs. Bruce Weutrich, employed by the law department, to fight her husband's receiving this pay?

Or would the county again hire Dean Farmer or some such outside counsel--for $100K--to spare the county this $78K expense?

In any event, I suppose potential plaintiffs would assert three seperate "oral contracts," each under $50K, allowed under Article III, Section 3.03, Item M (mayor's duties), as follows:

Have the sole power and authority to enter into contracts on behalf of Knox County, except as otherwise provided in this Charter. Contracts and purchases on behalf of the County shall be entered into by the Mayor or the Mayor's designee. On all contracts in an amount greater than $50,000, or such greater amount as established in advance by the Commission, the Mayor shall obtain the approval of the Commission by resolution prior to execution.

I certainly wish Burchett a strong start and I have absolutely no complaints with Jarret to date, but my thought thus far is that the new administration should probably honor the old administration's "oral contracts," THEN turn its attention to establishing in the charter and/or county employees' handbook more specific policy on the question.

rikki's picture

Jarret's invocation of

Jarret's invocation of Dillon's Rule does not establish that a severance agreement is adequately distinct from the employment contract it severs, it merely argues that an unenumerated power resides with the state rather than the local executive.

First of all, our federal Constitution proffers a contrary philosophy: the central government only holds enumerated powers, all else reverts to the states. Dillon's Rule is the inverse. It says local governments only hold enumerated powers, all else reverts to the central authority. Screw this Dillon creep and his unconstitutional notions.

Beyond that, it's possible to break down the mayor's duties into a million pieces and give them a million names, then say none of those million bits of duty are specifically referenced in the law, so the mayor has no authority to do anything. That's what's going on here. We are arbitrarily declaring severance a unique and separate power from general hiring and firing, then saying this unique power we've just defined was never granted.

Why not just point out that nowhere in state law nor county charter is there language which explicitly declares the mayor can cross the threshold of his office, therefore, he has no legal authority to show up for work? I guarantee you none of those fancy documents authorize him to walk into a room. Show me where the code even says the mayor can breathe.

Quick, we need a policy before he suffocates!

Tamara Shepherd's picture

*

All that, too, Rikki, but even more to the point:

Dillon's Rule declares that the state retains a given power when there is some question as to whether that power, not enumerated in state law as a local power, may be exercised by a local authority.

However, in our local issue, the question isn't whether the power to exercise control over local personnel lies with us locals. Of course it does!

Our only question is which local authority, if any, has that power when no specific local personnel policy exists to guide?

Dillon's Rule isn't just contrary to Constutional law, it's altogether superfluous to our present local question.

michael kaplan's picture

my thought thus far is that

my thought thus far is that the new administration should probably honor the old administration's "oral contracts," THEN turn its attention to establishing in the charter and/or county employees' handbook more specific policy on the question.

that sounds completely logical. tamara, why don't you run for public office?

R. Neal's picture

I'm confused, too. If there's

I'm confused, too. If there's nothing that says Ragsdale couldn't do it and it's not prohibited by any statute how can they reverse him?

According to the law director's memo courtesy of WATE, he is basing his recommendation on something called the Dillon Rule, which says that absent any specific granting of a power to a local government the local government is not considered to have that power and that Tennessee courts have historically ruled this way. He also cites an IRS rule saying severance pay has to be spelled out in the county charter.

(link...)

R. Neal's picture

Odd headline

Law director: Ex-Knox employees must sue if they want payout » Knoxville News Sentinel:

KNOXVILLE - Three former top ranking Knox County employees who resigned last week but received a combined $78,000 in severance packages will have to sue if they want the money.

I don't see the basis for that in the article or in the law director's memo. I suppose that could be a logical conclusion.

Tamara Shepherd's picture

*

I said: "One of Mike Donila's previous KNS stories said only that 17 former county employees had received severence pay during Ragsdale's tenure, but Mike didn't comment on the practices of Ragsdale's predecessors. I therefore asked him in today's comment thread whether he might look into that for readers."

Oh...and I asked Mike what practice other municipalities follow WRT severence pay, too.

Tamara Shepherd's picture

Wiki on Dillon's Rule

The Wiki entry on "Dillon's Rule," cited by Jarret as the primary basis for his opinion, leaves me confused as to its applicablity in determining our county mayor's authority--or lack thereof--to grant an employee severance pay.

Wiki seems to suggest that the 1868 Missouri ruling spoke more directly to the extent of state power over municipalities, not to the extent to which a municipality's officers are imbued with powers over matters that are clearly local in nature (and to which the state legislature presumably would not speak, anyway).

So I'm not grasping how Dillon's Rule has any connection whatsoever to this local question at hand? Has someone, somewhere, suggested that only the governor should have the authority to grant a Knox County employee's severance pay?!

See what you think, fellow laypersons...

Dillon's Rule

The theory of state preeminence over local governments was expressed as Dillon’s Rule in an 1868 case: "Municipal corporations owe their origin to, and derive their powers and rights wholly from, the legislature. It breathes into them the breath of life, without which they cannot exist. As it creates, so may it destroy. If it may destroy, it may abridge and control. Clinton v Cedar Rapids and the Missouri River Railroad,(24 Iowa 455; 1868). As opposed to Dillon's Rule, the Cooley Doctrine expressed the theory of an inherent right to local self determination. In a concurring opinion, Michigan Supreme Court Judge Thomas M. Cooley in 1871 stated: “[L]ocal government is a matter of absolute right; and the state cannot take it away.” People v. Hurlbut, (24 Mich 44, 95; 1871).

In Municipal Corporations (1872), Dillon explained that in contrast to the powers of states, which are unlimited but for express restrictions under the state or federal constitution, municipalities only have the powers that are expressly granted to them.[2] This formulation of the scope of municipal power came to be known as the "Dillon Rule," which states that municipal governments only have the powers that are expressly granted to them by the state legislature, those that are necessarily implied from that grant of power, and those that are essential and indispensable to the municipality's existence and functioning. Any ambiguities in the legislative grant of power should be resolved against the municipality so that its powers are narrowly construed. However, when the state has not specifically directed the method by which the municipality may implement its granted power, the municipality has the discretion to choose the method so long as its choice is reasonable.

Hundreds of U.S. court decisions to the present day have employed the Dillon Rule to determine the scope of municipal powers and rights. Critics of the Rule have argued that it imposes unreasonable constraints on the ability of communities to govern themselves and so undermines democracy, and even that local self-government is a matter of natural right that does not need to be conferred by higher political structures. It has also been suggested that Dillon's approach derived from the contemporary view that cities were inherently corrupt political organs. This was perhaps an often well-deserved judgment during his time, especially considering the extensive business ties and even investments of numerous cities and their leaders in the late 19th century. Deviations from the Dillon Rule remain in the minority, however, despite the significant decrease in the public perception of municipal corruption.

The Supreme Court of the United States cited Municipal Corporations and fully adopted Dillon's emphasis on state power over municipalities in Merrill v. Monticello, 138 U.S. 673 (1891), reaff'd. Hunter v. Pittsburgh, 207 U.S. 161 (1907), which upheld the power of Pennsylvania to consolidate two cities against the wishes of the majority of the residents in one. The Court's ruling that states could alter or abolish at will the charters of municipal corporations without infringing upon contract rights heavily relied upon Dillon's separation of public, municipal corporations from private ones.

Pittsburgh Regionalist David Y. Miller argues that Dillon hit upon a central paradox defining American cities: having great political authority while having little legal legitimacy. He quotes Dillon as calling municipalities "mere tenants at will of their respective state legislatures" which could be "eliminated by the legislature with a stroke of the pen." And yet, Dillon also said that eliminating local government would be "so great a folly, and so great a wrong."

(link...)

Hoyt Conner's picture

This place has a lot of

This place has a lot of people with a lot of time on their hands. Are any of you lawyers? Or do you just pretend to be on blogs? Jarrett is a lawyer. And apparently a good one.

rikki's picture

All you've got is a limp

All you've got is a limp insult and an appeal to authority? You're not even going to try to explain why a severance agreement is not an inherent part of the mayor's ability to hire and fire?

If lawyers are always right, what are judges for?

Sandra Clark's picture

Library Architecture

Don't think we've built monuments? Check out Fountain City, Halls and Powell. They've got a couple of things in common -- no drive-up access for book return and a front door nowhere near the parking lot.

Larry Frank only had a hand in Powell, I believe, and it's the best of the three.

The community rooms at Fountain City and Halls are so small that it's unclear why they even bothered. -- s.

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