Details of Rolling Meadows' manager contract revealed

The severance clause in Sarah Phillips' contract as Rolling Meadows city manager calls for 90 days pay plus benefits after a 60-day notice of termination -- about five months' of severance.

The actual separation agreement with Phillips approved Tuesday by the City Council has not been made public, but the council's motion called for severance pay and benefits.

The Daily Herald received a copy of Phillips' contract after filing a Freedom of Information Act request with the city. Phillips resigned as city manager after about two years in the job, and neither she or city officials are explaining why the parties agreed to separate.

Her contract, however, sheds some light on her working conditions. It was signed in October 2008 without an expiration date, although it called for an annual salary and benefit review.

The contract states the manager can declare herself terminated if “Manager resigns following a suggestion, whether formal or informal, by the City Council that she resign.”

This would also be in effect if the council reduced the manager's pay or benefits in a greater percentage than across-the-board reduction or “refuses, following written notice, to comply with any other provision benefiting the Manager.”

Voluntary resignation would require 30 days notice and would not require severance pay, according to the contract.

Mayor Kenneth Nelson has refused to comment on the circumstances surrounding Phillips' leaving, and the former city manager has not been reached for comment.

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 the annual performance reviews specified in the contract are no longer available to the public.

The contract also provided up to $7,500 for actual moving expenses from Johnstown, Ohio, where Phillips was manager, and up to $1,500 a month for three months until she could sell or lease her home in Ohio.

The city provided her with a cellular phone and mileage payments for city business; vacation commensurate with employees with 15 years of service and 12 days of sick leave. She was given three immediate floating holidays; and the city agreed to pay professional dues and subscriptions and professional travel as approved by the mayor.