City manager's contract to be on council agenda

At the end of a brief and uneventful study session, councilman Al Stephenson asked that the matter of Craig's contract be put on next Thursday's agenda. The council meets at 6 p.m. in the courtroom at the Shelbyville Police Department.

However, nothing else was said about the matter and the council adjourned shortly afterwards.

The issue of Craig's employment arose suddenly on Monday, when the city manager was given a letter from four council members that stated he was fired.

Stephenson said Monday he first asked Craig to resign and, when Craig refused, gave him the termination letter.

The letter was signed by Stephenson, Lee Roy Cunningham, Thomas Landers and Jean Pruitt.

However, city attorney Ginger Shofner told the council a few hours later that the action was invalid since no public meeting was held and no notice given.

The letter to Craig stated that council members have "the responsibility and authority to hire and terminate city managers.

"Since we are vested with that authority, it is our duty to inform you that your services as Shelbyville City Manager are no longer required, effective immediately," the letter said.

Any pay that is owed to Craig "will be reviewed by the Shelbyville City Council members," the letter stated.

Craig has a total salary of $79,955 a year, according to city documents.

The employment agreement with Craig states that he can be terminated for "just cause," defined as the commission of any felonious act, illegal act involving personal gain or "malfeasance, misfeasance, or neglect of duty as set forth in the city charter of the City of Shelbyville."

The contract states that if Craig is terminated, or resigns at the city's request, then the city would agree to pay him his regular salary for six months and to continue payment of retirement benefits, as well as health, life and other insurance benefits.

However, if Craig was fired or resigned for "just cause," then the city would have no obligation to pay the severance or benefits.

According to the contact, which was amended in 2007 after an attempt by Stephenson and Cunningham to not renew Craig's contract, the city shall provide Craig 90 days notice of its intent not to renew the employment agreement.

If the notice is not provided in advance of Craig's employment term, which ends April 1, 2010, then the contract will remain in full force and extended an additional 90 days from the date that written notice is given by the city.