City Manager Jeff Mihelich ended his term March 5 with eight months severance
EBS STAFF
The Bozeman City Commission has been considering a severance agreement with City Manager Jeff Mihelich, and according to reporting by the Bozeman Daily Chronicle, the proposal was approved Tuesday.
The commission asked Mihelich to resign after a recent video surfaced online showing an internal conversation between Mihelich and another city employee. He agreed to resign on the condition he be provided full severance as stated in his contract.
“At this time, the City Commission is not inclined to accept resignation with full severance,” according to a Feb. 15 statement from the City of Bozeman.
Instead, the Bozeman City Commission proposed—and approved—a severance package including eight months of salary and eight months of retirement calculated at 18% of Mihelich’s monthly salary.
In his original contract, termination results in a 12-month salary payout plus 12 months of retirement calculated at 18% of the monthly salary. This proposal reduced both terms to eight months.
“The cost associated with any severance has been a major factor in the commission’s consideration of this topic,” Mayor Terry Cunningham stated in a Feb. 29 press release about the proposal. “We are weighing the severance terms against the costs, the burden on city staff, and the overall distraction associated with what likely would have been a protracted, contentious and resource-consuming process.
“This incident has hurt our community, and this may be an opportunity for the City and our community to move on and focus on other important work.”
With the council’s approval, Mihelich’s term ended on Tuesday, March 5.
He will earn the reduced severance, and according to the release the Commission will not file an ethics complaint—which could have voided Mihelich’s severance.
