Rockville’s $307,093 Question: What Led to City Manager DiSpirito’s Resignation?

The cause of former City Manager Rob DiSpirito’s resignation in August remains a mystery except that we now know that it cost the City of Rockville $307,093.21, including $229,630.98 representing nine months’ salary and benefits and $77,462.23 for unused vacation time. It’s an extraordinary expense for the City of Rockville which so far remains unmentioned by the Mayor and Council and would be equal to:

  • Ten years of the Senior Nutrition Program ($30,070 per year according to the upcoming agreement to be approved by Mayor and Council at Monday’s meeting).
  • Salaries for three to four police officers ($70,036.00 – $105,429.00 annually according to the latest job posting).
  • All computer and communication equipment expenses for the City ($259,880 in the FY 2024 budget)
  • Janitorial services for all City facilities for a year (almost! annual expenses are $364,840 in the FY 2024 budget)
  • Annual property tax for 175 houses (if $600,000 is the average cost of a house in Rockville and tax rate is $0.292 per $100 of assessed value on real property = $1,752.00 per house)

Why would someone who has gone through a Performance Improvement Program and then resign be entitled to a severance package? According to his 2016 contract, “the City shall have no obligation to pay the one-time lump sum cash payment and shall have the right to immediately terminated this Agreement without payment of any further compensation to the City Manager” if he commits “any act which involves moral turpitude.” Obviously, no moral turpitude occurred or he wouldn’t have received a severance payment.

So under what circumstances could the City Manager receive a severance package? His 2016 contract states that the “City may terminate the City Manager at any time for any reason including, but not limited to, a conflict in management style or philosophy” and if the “City Manager is still willing and able to perform the duties under this agreement, then, in that event, the City agrees to pay the City Manager a one-time lump sum cash payment equal to nine (9) months’ aggregate salary.” Hmm. So there’s a reason for his resignation, or should we say termination, but no one has provided an adequate explanation.

Rob DiSpirito has refused to explain why he resigned, but that’s because his 2023 Settlement Agreement requires that he “shall keep the terms of this settlement completely confidential, and that confidentiality is an essential element of the settlement itself” nor can he “directly or indirectly, engage in communication or conduct that disparages the City, its elected officials, officers, employees or agents or make any negative statements about the employment practices of the City.”

The Mayor and Council is not required to keep this confidential, but unfortunately, they’ve insisted on secrecy. Indeed, obtaining copies of the City Manager’s 2016 Employment Agreement and 2023 Settlement Agreement required invoking the Maryland Public Information Act. What is the Mayor and Council hiding that’s worth $307,093? If there’s a “conflict in management style,” let’s discuss it and stop guessing. Mayor and Council, where are you leading the City? Right now you’re being sneaky and opaque—exactly the opposite of good governance. Mayoral candidates Ashton and Pierzchala, will you be able to bring better governance and transparency? What will you do better and differently than Mayor Newton? Or is just more of the same?

October 30, 2023: Response from Mark Pierzchala, Rockville City Councilmember and candidate for Rockville Mayor:

In your October 29 post about Mr. DiSpirito’s departure, I remind you that in May, it was I who wanted to end the drama at that time. The Performance Improvement Plan (PIP) was unwarranted for such a senior manager.

The date of the closed August 17 meeting, concerning Mr. DiSpirito’s status, was chosen because that was after the 3-month ending of the PIP. Note that the August 17 meeting was held during the Mayor and Council summer recess.

I was the one who took the August 17 closed-session minutes. These were typed up immediately after that meeting and sent confidentially to my colleagues before 8 pm on August 17. The length of time it took to officially approve them, over 2 months later, is not appropriate. Indeed, Mayor Newton pulled them off the October 9 consent agenda.

The August 17, 2023 closed-session minutes were approved at the October 23, 2023 meeting, as were the September 11 minutes. Since the August 17 minutes were from a closed session, they are to be included in the September 11 minutes when these are put on the City’s website (the September 11 meeting was the next public meeting of the Mayor and Council). In the August 17 minutes, you will see the motions and results that led to Mr. DiSpirito’s departure. These minutes should soon be posted.

There is no reason for Mayor and Council to hide actions and votes from a closed session. Some of the information presented therein should be kept confidential, but the resulting decisions should be made public in a timely manner. That is what I will achieve as Mayor.