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ESCANABA -- Escanaba City Manager Patrick Jordan's future with the city could be decided Thursday, as the city council once again discusses replacing his current contract with a new contract that cuts his salary by nearly a third.
At the Oct. 6 city council meeting, the council gave Jordan until Thursday's meeting to indicate if he will accept the new contract, which was drafted by a two-person committee composed of Mayor Mark Ammel and Council Member Ron Beauchamp, with the assistance of Luis Avila, a labor and employment attorney from Varnum, LLP of Grand Rapids. However, the unusual circumstances surrounding the proposed replacement contract has put the city into a stalemate with Jordan over his employment.
"I have no intention of agreeing to any changes in my contract. If you would like to end my contract, follow the contract, adhere to the severance clause in my contract -- you can do that with four votes of this council -- and then we can negotiate a new contract if you'd like to keep me here," Jordan told the council at its last meeting.
Because the council cannot replace Jordan's contract without his consent, if Jordan declines to end his current contract and accept the new contract the city must either continue using his existing contract or fire him. If Jordan's current contract is terminated by the city, he is entitled to the severance package included in the contact.
Depending on how the stalemate ends, its possible the dispute could end up in court. Jordan has already indicated he has an attorney and has raised concerns that the council members' hire of Avila goes against the city charter. He's also contended that Avila may have a conflict of interest, as Varnum, LLP is also representing one of the three developers involved in the redevelopment of the old Delta County Jail site.
Jordan had previously retained an attorney and hinted he might take legal action when he balked at the city's historical practice of releasing his performance review to the media. The review was never made public, but Beauchamp said earlier this month Jordan had not made progress to correct issues the council identified during the review.
Thursday's discussion will, most likely, take place in open session with a full audience both in the city council chambers and on YouTube. While the Michigan Open Meetings Act allows for closed session negotiations for collective bargaining cases, Jordan is not part of a collective bargaining unit and has also stated he does not intend to negotiate the contract.
Also Thursday, the council will hear an update on the jail redevelopment projects, including a new bid from North Shore Marine Terminal & Logistics for a portion of the old jail property located along the shoreline.
North Shore Marine had previously bid $12,000 for the property, which the city has assessed at $165,000. A letter sent to the city on Oct. 12 and included in Thursday's agenda packet says the shipyard is willing to offer the city $65,000 -- the same value the city paid for the property in 1998.
Property values typically increase at a greater rate than inflation, however, inflation alone would bring the value to $115,000 based on the purchase price.
The sale of the property to North Shore Marine affects more than just the shipyard. North Shore Marine has agreed to sell a portion of the property to Terrace Bay Hotel, which is planning a Hilton-branded hotel on the old jail site. The footprint of the new hotel will not fit without the additional land.
In other business, the council is expected to hear a presentation on past and present attempt to apply for water and wastewater treatment plant project grants, vote on whether to approve a $1,055,995 contingency (10% of $9,783,000) for the water treatment plant project, vote whether to approve the purchase of an overhead distribution line pulling system for the electric department for $21,769.65, and go into closed session for a discussion on a demand to bargain from Union 406.