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.
Unexpected Resignation: Rockville City Manager Rob DiSpirito Departs Post
Rockville City Manager Rob DiSpirito resigned yesterday on Thursday, August 17, effective at 5:00 pm. The Mayor and Council accepted his resignation and appointed Deputy City Manager Barack Matite as acting city manager, effective immediately. DiSpirito had served as Rockville’s city manager since January 2017. DiSpirito was interim senior manager of the Sarasota County (Florida) Planning and Development Department when appointed in December 2016 and previously served as the city manager of Dunedin, Florida for nine years and city manager of Oberlin, Ohio for 11 years. Barack Matite was previously City Manager of Eudora, Kansas (population 6,449) and holds a master’s in public administration from the University of Kansas.
It’s unclear what prompted the resignation, but we can assume it’s related to the Mayor and Council Closed Session meeting yesterday, which was to conclude the Performance Improvement Plan that the Mayor and Council instituted 90 days ago. Unfortunately, once again the Mayor and Council is unable to follow Maryland Open Meetings Act and failed to post the adjournment of the meeting, which was held exclusively on WebEx. In Maryland, “After a public body has met in a session closed under § 3-305, it must include a summary of the session in the minutes of its next public meeting. Public bodies may instead include the summary in the minutes of the public meeting held that day—that way, the public will see the summary sooner—but should follow a consistent practice or include a cross-reference in the later set of minutes so that the public knows where to look” (Chapter 6, OMA). I strongly recommend the latter approach to provide greater transparency to government, but so far, the Mayor and Council has been reluctant to go down this path. What are they trying to hide? Perhaps this an issue for the upcoming election.
The City Manager is the “executive officer and head of the administrative branch of the City” and one of three employees that report directly to the Mayor and Council (Chapter 2, Rockville City Code). City Manager Rob DiSpirito served six years. The previous City Manager, Barbara B. Matthews, served almost four years, when she was fired by the Mayor and Council in a contentious 3-2 vote (Mayor Bridget Newton and Councilmembers Beryl Feinberg and Virginia Onley voted to terminate her employment; Councilmembers Mark Pierzchala and Julie Palakovich Carr voted against). City Manager Scott Ullery retired in December 2011 after seven years following conflicts with Mayor Phyllis Marcuccio over the management of the City. Notice a pattern? Ironically, most of the current city council members have NO experience supervising employees at a management or executive level, yet make crucial decisions about hiring, supervising, and terminating these types of employees. Are management skills an increasingly important qualification for Mayor and Council?
Follow-up: On August 19, 2023, Barry Jackson, candidate for Rockville City Council, insisted that current Mayor and Council should not begin the search for the new City Manager but instead that the “newly elected Mayor and City Council hire a City Manager through a transparent and thorough process.”
Rockville City Manager Faces Performance Improvement Plan in Surprise Session
In an extraordinary last-minute Closed Session held on Thursday morning, May 11, 2023, the Rockville City Council put the City Manager Rob DiSpirito into a three-month Performance Improvement Plan (PIP) for reasons unknown. Improvement Plan (PIP) is a formal, structured process designed to help underperforming employees identify and overcome performance issues. It outlines specific goals, expectations, and timelines for improvement, along with support, resources, and regular progress evaluations to facilitate success and growth.
When the Council came out of Closed Session, Councilmember Monique Ashton quickly moved for the PIP and was supported by Councilmember Beryl Feinberg. Mayor Bridget Newtown rushed for a vote without a discussion, but was interrupted by Councilmember Mark Pierzchala to note that, “I don’t know how the sequence of events unrolled but I’m not going to vote for it. I think things have moved past the point where a performance improvement plan is going to be effective. So I’m gonna vote against it. I had asked to make the first motion but that was not allowed, apparently. I’m not sure where that came from. Thank you.” The motion passed 4-1 with Councilmember Pierzchala voting against. A brief three-minute video is available at https://youtu.be/fIu7e9cHhoo, but of course, the closed session portion is held in secret and it’s unclear how long they debated the issue.
I typically discourage Closed Sessions because they are secret and prevent voters from knowing what’s happening—and Closed Sessions usually deal with major issues. Fortunately, Maryland has an Open Meetings Act to keep council and board meetings available to the public so they can be “in the room where it happens.” A quick introduction is available as FAQs, but here are a fundamentals:
- The Maryland Open Meeting Act lists 15 topics that the City Counci) may choose to discuss behind closed doors under specific conditions. These topics or “exceptions,” include personnel discussions about particular individuals, the receipt of legal advice from the public body’s attorney, and subjects that must be kept confidential under other laws. A discussion on “the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation, or performance evaluation of an employee over whom the Mayor and Council has jurisdiction” is an appropriate reason for the Closed Session on May 11.
- Public bodies must make an agenda available before each meeting, either when notice is posted, if the items of business are known then, or as soon as practicable, but no later than 24 hours before the meeting. There is an exception for meetings held in response to emergencies. This Closed Session was not publicized as an emergency and the the agenda was posted on the city website on May 10 at 5:20 pm, that’s less than 18 hours in advance, so is in violation of the Act. Furthermore, it was not sent out as an email to those who subscribe to the City Council’s agendas (thanks to a blog reader who alerted me to this meeting).
- This meeting was not publicized an emergency, so why the rush? Two councilmembers had difficulties attending in person. Councilmember Myles was absent at the start of the meeting and showed up virtually later. Councilmember Ashton started the meeting virtually and joined in-person by the end. How much of the Closed Session discussion did they miss? Councilmember Ashton didn’t even notice that the vote to go into Closed Session occurred.
Most management leaders will emphasize that employees are the organization’s most important assets so how well are these assets being managed in the City of Rockville? Most of the current councilmembers lack significant experience in supervising employees and the City Council has a poor record of managing its most senior staff. The City Manager, City Attorney, and City Clerk have each been dismissed during Mayor Newton’s tenure. After a while, the only common denominator to these problems is the City Council.
The City Council needs to provide a better explanation for this decision and how they handle Closed Sessions. Or it’s time to rethink their privilege to serve.
May 21, 2023: This post was corrected to show a vote of 4-1 in the caption of the photo.
Max for Rockville 