Eric Lacy

Lansing State Journal

LANSING - Confusion erupted Monday night at Lansing City Hall when City Council and a member of Mayor Virg Bernero's administration went back and forth about the controversial $160,000 payout to former City Attorney Janene McIntyre.

The result, after nearly 90 minutes of discussion, created more questions than answers. One major concern among City Council: How are all contracts for Bernero-appointed department heads crafted and filed?

Council members drilled Randy Hannan, Bernero's executive assistant, and left with only a few answers about a deal negotiated by an outside law firm hired to represent the city in talks with McIntyre, who was represented by the Okemos-based White Law Firm.

"We still don't know what's going on," First Ward Council Member Jody Washington said in a remark directed at Hannan. "I'll ask the question everybody is asking: 'What are you hiding?' We can't allow this to continue." Washington noted that she and other council members had no role in negotiating the McIntyre agreement.

Bernero, who signed the agreement, was not at the meeting. Hannan said he couldn't disclose the reason or reasons why McIntyre received the payout, but confirmed the city hired the Dykema Gossett law firm in "mid-January" to represent the city in negotiations. Hannan added the city received an invoice of $9,553 for the firm's services.

"Mayor Bernero believes the separation agreement was in the best interest of the city," Hannan said.

Several council members, including Council President Judi Brown Clarke, appeared stunned when Hannan and Mary Riley, the city's recently hired human resources director, appeared to lack answers to their questions.

And nothing appeared to draw passionate reactions more than when Hannan disclosed that Bernero's administration doesn't know where at least some updated contracts with department heads are filed — including the most recent amendment to McIntyre's contract.

The City Council's concerns inspired several members to consider the idea of hiring outside legal counsel to dig for details about McIntyre's separation agreement, her leave and compensation.

At-Large Council Member Patricia Spitzley raised questions about McIntyre's payout, but expressed concern about potentially using taxpayer money in an attempt to seek answers about the separation agreement.

"I think it's throwing good money after bad," Spitzley said. "It's done, I don't like it, but I don't think those questions (about McIntyre's leave and separation agreement) are going to be answered by hiring outside counsel."

Second Ward Council Member Tina Houghton, who was silent most of the discussion, said after about 90 meetings of questioning, the issues pertaining McIntyre leave appear "a convoluted mess."

Houghton is also concerned that the hiring of outside legal counsel could end up a waste of money.

"I'm not sure where to go from here," Houghton said.

Council members did agree Monday night to have Deputy City Attorney F. Joseph Abood look into the city's legal options and report back to the body within the next three weeks. Council members intend to hold individual meetings to get more information.

Concern about the way department heads' contracts are filed were brought up when At-Large Council Member Carol Wood asked where McIntyre's renewed contract as city attorney is filed.

City Clerk Chris Swope said his office hasn't received at least two updated department head contracts that he believes were signed in 2015.

"We place on file the contracts that are brought to us," Swope said.

Hannan said Bernero's office has a draft of McIntyre's most recent contract renewal and described the missing contracts as part of "paper chase issues" that happen "from time to time." Hannan said the city is in the process of filing all contracts digitally.

McIntyre used the federal Family Medical Leave Act to take time off from her job before she left it permanently earlier this month with the payout of over $160,000.

Before McIntyre left her job on March 4, city documents the State Journal obtained through the Freedom of Information Act show that she requested, in a Jan. 7 email to human resources staffers, information on the city's Family Medical Leave Act policies. She received information that day and then was notified she had "provisional approval."

The Family Medical Leave Act allows employees to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage, according to the U.S. Department of Labor's website. Eligible employees are entitled to 12 work weeks of leave in a 12-month period.

McIntyre and Bernero signed her "separation agreement and general release" on Feb. 25. The agreement took effect on March 4 — the day Bernero's office issued another press release that said McIntyre was leaving to "pursue other opportunities."

The city's separation agreement with McIntyre signed Feb. 25 states that it isn't intended to be construed as "an admission by employee, the employer or any of the employer released parties that any of them violated any law, interfered with any right, breached any obligation, or otherwise engaged in any improper or illegal conduct with respect to employee, employer or employer released parties or otherwise."

Clause No. 14 of the agreement says the mayor and other city leaders will not make any verbal, written or other communication that "disparages, damages or could disparage or damage the reputation, goodwill, business or standing in the community" of McIntyre and she agreed to the same about the mayor and his top officials. There is a $10,000 penalty for violations.

Washington. the First Ward Council member, expressed frustration Monday night about what she called "litigation in secret" and said she's "almost willing to put up that $10,000 to find out what happened.

"I can only imagine where everybody's imagination is going with this," Washington said. "This (McIntyre separation agreement) isn't chump change, this is a lot of money."

Documents the State Journal obtained last week through FOIA showed the city cut checks dated March 4 to McIntyre for $127,567.10 and $33,095.69. The second check included a $28,993.24 buyout of her vacation time, $2,942.75 in sick leave and $1,159.70 in personal leave.

Mary Riley, the city's human resources director, said in the meeting should couldn't explain details about McIntyre's FMLA leave. Riley, however, did say FMLA leave for city employees "can be" unpaid.

"I would have no knowledge of what she took before that time," said Riley, who was appointed by Bernero on Jan. 8.

Third Ward Council Member Adam Hussain said during the meeting it's important to study and evaluate the McIntyre leave and payout because the city's legal options appear confusing.

"I'm in a tough place because I don't know what we can and can't talk about," Hussain said.

McIntyre was appointed by Bernero and had served as city attorney since March 2013. She was appointed interim HR director on Sept. 25, 2014 and received about $40,000 in additional pay. The dual role ended when Riley was hired in January of this year.

McIntyre took about a $40,000 pay cut after Riley was hired. She earned $133,000 her first year as city attorney, according to Bernero's administration. Her starting salary as city attorney was $140,000, but it was reduced by 5 percent, or $7,000, as part of a salary giveback for members of Bernero's cabinet.

Eric Lacy is a reporter for the Lansing State Journal. Contact him at 517-377-1206 or elacy@lsj.com. Follow him on Twitter @EricLacy