Separation deal limits what Palmer officials can tell former manager’s future employers

The agreement is similar to one now-former Palmer City Manager Stephen Jellie had with a previous employer.

Separation deal limits what Palmer officials can tell former manager’s future employers
Palmer City Council member Victoria Hudson and city attorney Sarah Heath sit next to now-former City Manager Stephen Jellie during his manager's report at a Oct. 8, 2024 meeting. (Amy Bushatz/Mat-Su Sentinel)

What you need to know:

  • A separation agreement between Palmer and former City Manager Stephen Jellie prevents the city from sharing details about his resignation or tenure with future employers. The city can only say his departure was due to "a difference in management styles."
  • Jellie resigned following concerns that his personnel practices could mire the city in lawsuits and after he placed the police chief on administrative leave for questioning his directives. Jellie will receive a $75,000 severance as part of his exit, a condition of his employment contract. This marks his third similar resignation agreement in less than two years.
  • An interim city manager has not been named. Palmer’s police chief remains on administrative leave and can only be reinstated by a city manager. A meeting to pick an interim manager is scheduled for Tuesday.

PALMER - A separation agreement between Palmer and former City Manager Stephen Jellie blocks officials from sharing with any of his potential future employers details of Jellie's resignation or brief but tumultuous tenure as Palmer's administrative leader.

Jellie resigned last week after the city attorney warned that his personnel practices put Palmer at "imminent risk" of lawsuits. He was hired in August and held the position for 53 days.

Jellie will receive a $75,000 severance payment as required by his employment contract, Palmer Mayor Steve Carrington said last week. Jellie resigned during an emergency city council meeting Wednesday that included a nearly three-hour closed session. His resignation was effective immediately, Carrington said at the meeting. The settlement with Palmer marks Jellie's third such resignation in less than two years.

The agreement prevents Jellie and the city from suing each other for any employment violations or financial losses and limits what Palmer officials can tell Jellie's potential future employers about the circumstances of his departure, according to the draft agreement presented during the closed session.

         
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