Smoke and Mirrors

Part One: What is the City of Elkhart Hiding?

By Will Johnson
Messenger Reporter

ELKHART – Over the course of the last several months, the city of Elkhart has raised a few eyebrows with its actions. A termination for no stated reason, a nearly 100 % turnover at City Hall, questionable comments from city officials, a blatant disregard of a contract, outright deception and a city council meeting roped off by caution tape are but a few of the peculiar events/actions swirling through the city of Elkhart.

As a result, The Messenger Newspaper has filed several Freedom of Information requests with the city of Elkhart in an attempt to get answers to several questions.

The first item of interest concerns the termination of City Secretary Carla Sheridan.

To provide a brief background, on Aug. 22, 2017, the city council of Elkhart met in a regularly scheduled meeting. Agenda item two stated the council would convene in executive session to discuss employment contracts for the supervisory positions of the Outside Supervisor (BJ Perry) and City Secretary (Carla Sheridan).

The mayor in August of 2017 was Mike Gordon who decided the discussion should be held in open session. Both contracts contained severance clauses in the amount of $100,000.

According to the Aug. 22, 2017 minutes, “Mayor Gordon reported the item would be held in open session. The council did not convene into closed session on the item. Councilman (and Mayor Pro Tem) Billy Jack Wright spoke concerning contracts being constructed by city attorney and would have to be approved by council. Mr. Wright mentioned the contracts being in the interest of both parties, the employee and the city. Council wanted to add to the contract that the mayor needed to be aware of disciplinary action.”

The Aug. 22, 2017 minutes further stated, “Councilman Billy Jack Wright made the motion that the contract be given to City Secretary Carla Sheridan with the notation to amend the contract by saying any disciplinary action will be discussed with current mayor if that situation does arise. Council Lady Beverly Anderson seconded the motion. All voted ‘Aye,’ the motion carries.”

The minutes of the Aug. 22 meeting were approved on Jan. 26, 2018.

The contract was made and entered into on Aug. 22, 2017 for a term of 10 years.

Time rolled by and on the June 3 city council agenda, item 13 stated, “Discuss and take action, if any, sending Carla Sheridan to the TRWA Office Professionals Conference in San Marcos June 5th through June 7, 2019.”

Something appeared to change in a short matter of time, however, as Sheridan was terminated from her position on June 4 during a called meeting of the Elkhart City Council.

One of the Freedom of Information requests filed by The Messenger on June 26 requested “… copies of any disciplinary records pertaining to former City Secretary Carla Sheridan, a copy of her severance contract and the specific(s) of her termination.”

On July 1, the city of Elkhart responded via certified mail. The response stated: “A diligent search of city records has produced the attached copy of the alleged contract signed by Ms. Sheridan and former Mayor Mike Gordon. We are unable to locate any other records responsive to your request at this time. Therefore, this request will be considered resolved in full.”

In Section 7, under the heading of “Termination and Severance,” Subsection 7.1 of Sheridan’s Employment Agreement states, “In the event the Council, by a majority of the full City Council, with no less than five (5) members present, during the Term of this Agreement terminates the Secretary, and Secretary is willing to continue to perform the duties of the City Secretary under this Agreement, then, in that event, the City agrees to provide the following:

  1. A severance payment of One Hundred Thousand Dollars ($100,000).
  2. Secretary shall also be paid for all unused and accrued vacation and sick leave.
  3. This severance shall be paid in a lump sum within thirty (30) days of termination.

Shortly after Sheridan was terminated, Elkhart Mayor Jennifer McCoy was contacted concerning the matter.

“The council members and Sheridan disagreed over the city secretary’s role. The council felt like it would be in the best interest of the city and for the city to grow and move forward, the council believed it would be best to terminate Mrs. Sheridan,” the mayor said.

Asked specifically if the city council was aware of the $100,000 termination clause, McCoy said yes.

“It is very unfortunate that previous councils had locked future city councils and taxpayers into such a contract like that,” she said.

McCoy further indicated Public Works Director BJ Perry had also received a contract similar to Sheridan’s with the same type of severance package.

“It basically ties the future of the city to a 10-year contract,” she added. “Personally, I had no problem with Mrs. Sheridan. We got along just fine. However, I do understand the city council’s position.”

Following The Messenger’s publication of an article entitled “Red Flags Rising in Elkhart,” an interview with City Administrator Judith Cantrell was held on Wednesday, June 26. During the course of the interview, she was asked specifically if Sheridan would receive her severance package.

“During the last meeting, they (the city council) agreed to pay her severance.”

Asked again if the city planned to pay, Cantrell replied, “As far as I know. With the agenda and the minutes that we have, they have agreed to do that. Now the council – you know- it’s really dependent on what she does. She’s the one who hired the attorney.”

Questioned if Sheridan had filed suit against the city, the city administrator replied, “We have received correspondence from an attorney that would lead the city to believe that there is threatened litigation.”

Cantrell was asked again if a suit had been filed against the city. She replied, “I can’t answer that. I don’t know.”

Questioned as to why Sheridan would sue the city of Elkhart if they had agreed to pay the money, the city secretary replied, “It is very odd.”

During a city council meeting held on July 1, however, a motion was made, seconded and unanimously approved to “…to rescind the action taken at the Elkhart City Council meeting of June 4, 2019 only with regard to the council’s agreement to honor former city secretary’s alleged severance clause in section 7.1 including A, B, and C of the alleged employment agreement between the city of Elkhart and Carla Sheridan and instead move that the alleged severance clause in the alleged employment agreement between the City of Elkhart and Carla Sheridan not to be honored and that no severance be payed to Mrs. Sheridan. I further move that the City Council’s action on June 4, 2019 terminating Carla Sheridan’s is not affected by this motion made with regard only to the change in status to the alleged severance clause and Mrs. Sheridan remains terminated, effective June 4, 2019.”

After the July 1 meeting, McCoy was questioned about Cantrell’s statement on June 26.

“She had no knowledge until we were in executive session on the phone with the attorney that we hired at our last special, called meeting … Bettye Lynn from Fort Worth. She was able to review all the information and review the contract and give her findings this evening and the council decided to go on with their decision,” McCoy said.

It should be noted Cantrell previously worked for Lynn Law, PLLC in Fort Worth.

As of press time on July 26, a specific reason has not been given for Sheridan’s termination. Part two of this article will address why the city of Elkhart has refused to produce video tapes of the time period from May 31 until June 6. It will also delve into some of the history between McCoy and Sheridan.

Will Johnson may be contacted via e-mail at [email protected].

 

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