Rolling Meadows pays ex-manager $80,915

Sarah Phillips will receive $80,915 in severance pay, according to the separation agreement the former city manager reached with the city of Rolling Meadows.

Representing seven months of her $138,500 annual salary, the money will be released as regular pay checks, subject to withholdings, through July 7. The city will also pay the premiums for Phillips' health and life insurance for that period.

The Daily Herald got a copy of the agreement Wednesday after filing a Freedom of Information Act request with the city.

The contract Phillips signed with the city in October 2008, called for a total of five months pay if the city council terminated her.

Under the contract, if she quit voluntarily, no severance pay would be forthcoming.

However, she could declare herself terminated with benefits if she resigned after a suggestion by the City Council that she resign, either formal or informal.

Under the agreement signed this week, Phillips also waived her right to sue under the Age and Sex Discrimination in Employment Act.

Another long clause labeled “General Release” says she releases the city and its officers and employees from all claims and liabilities. This clause includes “breach of contract,” “infliction of emotional distress” or “wrongful or retaliatory discharge; hostile work environment.”

The agreement includes a confidentiality clause that says neither side would comment publicly except for making a joint news release.

Also, unless authorized in writing by Phillips, the only information the city will give a prospective employer are the dates she was employed as city manager.

Mayor Ken Nelson refused to comment on the reason for Phillips' leaving, and Phillips could not be reached for comment.

The joint statement issued by the city and Phillips said she resigned as of Dec. 7.

Phillips “served the City of Rolling Meadows with professional skill and integrity during her tenure,” it said, adding Phillips “stated that it has been an honor to serve in Rolling Meadows and to work with community leaders and the City's staff.”

Phillips' salary of $138,500 did not change over her two years of employment, which were financially tough ones for the city. She also did not receive any bonuses.

Under a new state law, a government official's performance evaluations are no longer available to the public.