Council members concerned as former Ypsilanti Housing Commission director receives $58K separation agreement
The former executive director of the Ypsilanti Housing Commission is set to receive a $58,484 separation agreement and some city council members have openly expressed concern.
Walter Norris retired as director Aug.4 amid financial troubles facing the commission.
Walter Norris will receive $58,484.88 as part of a separation agreement.
Tom Perkins | For AnnArbor.com
Prior to his retirement, Norris's contract was set to expire March 6, 2013. Norris had an annual salary of $105,686.88.
Council Member Brian Robb said he believes the agreement is an "embarrassment."
Interim Director Eric Temple acknowledged that many have questioned the circumstances surrounding Norris's retirement and whether he was asked to submit his resignation.
"We're hearing it, too, and I can tell you he retired," Temple said. "There's not anything I can say that he did anything but retire."
Norris will receive the following payments:
- Accrued vacation pay as of Aug. 4: $7,962.52
- Accrued personal leave as of Aug. 4: $2,032.44
- Fifty percent of accrued sick leave as of Aug. 4: $21,323.88
- Payroll continuation in a total amount of: $26,578.04
- Two months health insurance continuation: $588
Of the above items, the first three were paid to Norris through payroll in a lump sum on Sept. 14. The payroll continuation will be paid in equal installments, which began Sept. 14, over a 90 day period. The health insurance continuation was paid in the form of a reimbursement check.
During the Aug. 14 city council meeting, YHC Attorney David Blanchard said the separation amount would include “things Norris was entitled to and not entitled to.”
According to Temple, Norris was not entitled to the $26,578.04.
Temple said Norris was given that amount because as part of the agreement, he agreed that he would not accept medical insurance on a continuation basis. YHC employees are eligible to have half of their medical expenses paid for the rest of their lives upon retirement.
Norris opted out of this and instead asked to receive a payroll continuation, which equates to about three months or 90 days.
Temple said most YHC employees don't have the option to negotiate the terms of a retirement, but since Norris was a contract employee, he was able to negotiate.
"He was the only contract employee of the housing commission," Temple said. "When we retire, we are only eligible for what's on the books."
Temple said if Norris had chosen to continue to receive health care, it would have cost the YHC possibly $75,000 over the course of the rest of his life. The YHC thought this was the best option to move the commission forward, Temple said.
Eric Temple
Courtesy Photo
At a recent meeting, council members questioned the amount of sick and vacation pay Norris received and asked why the YHC has no cap on sick time.
Temple informed council that over a 10 year period, Norris accumulated 800 hours of sick time. Temple said when an individual retires, that person is eligible to receive half of that time in a payment.
"Most people leave getting paid for at least 300 or more hours," Temple said. "I have accumulated hours also. We take our (guidelines) from the city."
Temple said Ypsilanti has similar measures in place for its employees.
In addition to the package, Norris is also eligible to receive a pension for an undetermined amount based of his years of service and annual income, Temple said.
The agreement also states that nothing prevents Norris from working with the YHC on a "consultant basis" at the sole discretion of the YHC. Temple said he doesn't expect this, but depending on the services, Norris could be compensated.
Temple said this part of the agreement is not uncommon and is normally placed in a separation agreement.
"It would be something we would have to negotiate, but I don’t see that happening," he said. "If he just had to sign a document, he wouldn’t be paid but he would for consulting. We have made it clear that there are no plans to at this time at all."
Council Member Mike Bodary wants HUD to look into the amount Norris received.
Jeffrey Smith | AnnArbor.com
Council Member Mike Bodary said he was "shocked" by the agreement and believes HUD should be asking questions.
"I'd like to speak with HUD and Mr. Willie Garret and get his reaction to see if he thinks the United States government should be paying for that," Bodary said.
Temple said the YHC has not received any communication from HUD regarding the agreement.
In an email sent to council members and Mayor Paul Schreiber, Garrett, the HUD director of public housing, said the agreement is under review by the agency.
To see the full separation agreement, click here:
Katrease Stafford covers Ypsilanti for AnnArbor.com.Reach her at katreasestafford@annarbor.com or 734-623-2548 and follow her on twitter.
Comments
greg, too
Thu, Sep 27, 2012 : 8:26 p.m.
How is Temple still interim director? Can't they fire him? A YHC with no one at the helm is still better than one with him there.
snapshot
Thu, Sep 27, 2012 : 4:36 a.m.
These are our public employees and union enfluence who create thiese situations. It's pretty much a get rich scheme on the taxpayers dime. Don't let them snooker you with a "he was a contract" employee.....regular employees get to implement similar perks like adding unused vacation, sick days, etc. etc. to their final retirement perks. Not to mention "spiking" which is a last minute promotion to bump the employee up to the next level of pension benefits.....very common in police and fire departments. when the taxpayers are going to get wise and start demanding change is anyone's guess. Of course all the "secret and confidential" negotiations keep us blind.
Steven Taylor
Thu, Sep 27, 2012 : 12:47 a.m.
Did the city do their duty to actually screen these applicants and their pasts. I would think anybody with a lick of common sense would sit there and say. "Well, hrm seems Mr. Norris and Mr. Temple had some fiduciary misconduct in the Lone Star State, we should hire this guy straight away!" If we have folks in the comments pulling this stuff up by using GOOGLE. You folks at the city have some serious 'splaining to do. When the time comes, I'm voting each and every last one of you folks OUT of office!"
JH5467
Wed, Sep 26, 2012 : 11:59 p.m.
Oh my...and so did the Interim director Temple. Looks like he worked with Norris in Galveston...LOL http://www.annarbor.com/news/ypsilanti/ypsilanti-housing-commission-employee-revealed-to-be-convicted-felon/#.UGOWItuF8zc
greg, too
Thu, Sep 27, 2012 : 8:18 p.m.
Yep, he bombed there and we snatched him right up like he was a hot commodity. And then brought in his accomplice, I mean assistant. And even waited until he got out of prison so he could start working. It would be comical if it wasn't so sad.
JH5467
Wed, Sep 26, 2012 : 11:45 p.m.
Have to wonder how he ever got hired. Did the same crap in Texas. http://www.chron.com/CDA/archives/archive.mpl/1996_1353698/galveston-housing-chief-fired-on-heels-of-critical.html
shepard145
Wed, Sep 26, 2012 : 10:53 p.m.
Now they're concerned!? The time to be concerned was when you hired him!
Momoko
Fri, Sep 28, 2012 : 4:44 p.m.
No, the time to be concerned was before he was hired.
Goober
Wed, Sep 26, 2012 : 9:15 p.m.
I believe the public and voters are apathetic to this type of issue and problem.
RUKiddingMe
Thu, Sep 27, 2012 : 1:15 a.m.
True dat. This and several other recent developments really should have packed the council meetings and had a lot more hell to pay. The big political technique seems to be coasting by successfully with "jsut give 'em a while to forget about it, then back to business." And that's when they get caught, even.
Macabre Sunset
Wed, Sep 26, 2012 : 6:46 p.m.
This is what happens when government gets too big. It bloats itself with cushy administration jobs where you get high pay and high benefits and they have to pay you twice to get you to actually come to work (the payout for unused sick days). Where does the money come from? Ask Greece. They're starting to find out. The cash cow finally left Greece after decades of governmental abuse.
dave french
Wed, Sep 26, 2012 : 4:53 p.m.
Who negotiated this contract? Maybe someone should review any others that are out there, Right now! It's amazing. Department heads retire and get a pension from Ypsi, then move on to another city in the same capacity and draw a siimilar salary and get another pension. All of these people gaming the system should be ashamed of themselves.
greg, too
Thu, Sep 27, 2012 : 8:18 p.m.
Who ever was in charge of the Housing Commission Board of Commissioners at the time, which I believe is the current mayor of Ypsi. A great quote from an April article about Temple and Norris. "Norris and Temple worked together at the Galveston Housing Authority before Norris was terminated from that post in 1996 following a consultant's "highly critical evaluation of his administration," the Galveston Daily News reported." He was a screwup when we ignorantly hired him and continued to be one. And I would assume he walked away with a golden parachute from both. Amazing stuff.
PattyinYpsi
Wed, Sep 26, 2012 : 3:26 p.m.
This is outrageous. In this kind of economy, no one deserves that kind of money for "retiring" from a job he did badly. Thanks to Mike Bodary for asking HUD to look into this.
Steven Taylor
Wed, Sep 26, 2012 : 2:36 p.m.
All I can say, "it sure as hell pays well to get fired from a government job for questionable practices"
Mike
Thu, Sep 27, 2012 : 8:48 p.m.
Chimay - do you really think he would reject that money. Worse part is he will end up landing at another cushy government job and wind up collecting two pensions plus this payout. Work harder America; people like Mr. Norris are counting on you..............
Chimay
Wed, Sep 26, 2012 : 11:30 p.m.
If this guy Norris has an ounce of decency, he would reject these absurd payments in light of the fact that he did a very poor job.
EOS
Wed, Sep 26, 2012 : 1:57 p.m.
I applaud Mayor Schreiber for standing behind the housing commissioners, Mr. Norris, and Mr. Temple. The mayor was on the housing commission when they hired Mr. Norris. And as mayor he continued to appoint commissioners who gave Mr. Norris excessive raises year after year despite most residents having to live in squalor. A true leader supports his people no matter how much it costs. Kudos to you mayor! You put the INCOME in INCOMPETENCE.
Steve McKeen
Wed, Sep 26, 2012 : 2:30 p.m.
There's no income in incompetence. There's pet, ten, comp, and pete, but no income. Maybe you should apply to be on the housing commission.
YpsiVeteran
Wed, Sep 26, 2012 : 1:32 p.m.
The article also fails to establish how long this guy worked for the YHC before being allowed to "retire."
YpsiVeteran
Wed, Sep 26, 2012 : 1:29 p.m.
There are some things missing from this article. Paragraph 5 starts with "Temple acknowledged...," and there's a picture of someone named Eric Temple below that, but the article does not ever say who "Temple" is, or identify his role in the matter. People are not generally referred to by just their last name in a story unless they have first been fully identified. The article also does not establish who is responsible for the payments to Norris, or where the money is coming from. Is this a city pension? A federal one? Is the city on the hook for his accumulated leave payouts, but not his pension?
greg, too
Thu, Sep 27, 2012 : 8:07 p.m.
Don't forget the 30k in raises he accrued during his time as well to get him to 105k. Over his time, he was able to ram through projects that they could not afford...thats really about it.
YpsiVeteran
Wed, Sep 26, 2012 : 4:45 p.m.
Thank you Ms. Stafford. So, after working for the YHC for less than 10 years, this guy qualifies for lifetime partial medical coverage? Lifetime? These criminals can say they are taking their "guidelines" from the city, but no city worker qualifies for that type of benefit. The entire board is noting but a sanctioned opportunity for overt theft. Why did Norris make more than $105K per year? What did he do to earn it? I'd love to see the job description. There is not enough work associated with this function--especially when it's being done improperly, as the financial irregularities and shortfalls of YHC prove that it is--to justify this kind of salary.
Katrease Stafford
Wed, Sep 26, 2012 : 2:18 p.m.
Hi YpsiVeteran, Norris was hired in 2003. The money being paid to Norris through the separation agreement is coming from Ypsilanti Housing Commission funds, not the city. The YHC operates as a separate legal entity from the city. Norris's pension will be through a defined benefit plan with the Michigan Municipal Employees Retirement System. Temple told me his pension will come off of the YHC's payroll.
JRA
Wed, Sep 26, 2012 : 1:27 p.m.
Paying out for unused sick time is just ridiculous!
snapshot
Thu, Sep 27, 2012 : 4:54 a.m.
This is a perk that public employees consider a "right" we need to change that outragous expectation.
aanative
Wed, Sep 26, 2012 : 1:30 p.m.
And how many private employers allow the accrual of 800 hours of sick time???
The Black Stallion3
Wed, Sep 26, 2012 : 1:11 p.m.
I believe it is time for us tax payers to put these cash cows out to pasture...enough is enough !!!!
SEC Fan
Wed, Sep 26, 2012 : 1:10 p.m.
it's only money...don't we have tons of it lying around?
Itchy
Wed, Sep 26, 2012 : 1:29 p.m.
Yes. It's called the Fed printing press.
nekm1
Wed, Sep 26, 2012 : 12:56 p.m.
when it is public money, it is just a "drop in the bucket"....when will this waste of money, I/we work our butts off to make and pay in taxes - 33% fed and 4.33%...mean something to elected or appointed officials. Is everyone a thief? Is there no honor anymore? Elected and Government employees look no better then common criminals here.
glimmertwin
Wed, Sep 26, 2012 : 12:38 p.m.
And that is why government (federal/state/local) is completely out of control.
greg, too
Thu, Sep 27, 2012 : 8:03 p.m.
And why he always has that dopey grin. He ran the department into the ground and walked away with 58k and no criminal charges. And handed the department to a handpicked successor (for a while), who is a felon. Brilliant.
Ryan
Wed, Sep 26, 2012 : 12:15 p.m.
Felons, thieves, and charlatans, come one, come all, Ypsilanti is open for business! Boo to everyone is involved. This highlights a massive problem in America today: the use of public jobs as piggy banks for the corrupt. Administrators are allowed to get these sweetheart retirement deals and pay contracts on the taxpayer dime while ordinary workers get pay cuts and no benefits. "YHC employees are eligible to have half of their medical expenses paid for the rest of their lives upon retirement." For what? Making too much money for a useless middleman job that actually takes money away from the poor people it was intended to serve? I know war veterans who get far less for their contributions to our society than this hustler for his mismanagement and incompetence. Boo to Mayor Schreiber, the YHC, and everyone involved in this fraud! P.S.: "In addition to the package, Norris is also eligible to receive a pension for an undetermined amount based of his years of service and annual income, Temple said": The fraud isn't over yet people! Stay tuned for more corruption coming down the pipe! Boo!
walker101
Wed, Sep 26, 2012 : 11:57 a.m.
Just another failure in local and federal government and we wonder why this country is going to cr**.
Itchy
Wed, Sep 26, 2012 : 1:28 p.m.
Vote for change, like I am, this coming November. Remember - we cannot give up!
Mike
Wed, Sep 26, 2012 : 11:55 a.m.
And we want to re-elect the president who wants to grow government even larger than is is now. Quit complaining unless you are going to do something at the ballot box to change it, and I don't mean hope and change, I mean real change. We'll all be working longer, payibng higher taxes, and unable to collect social security until we're 70 to pay for the benefits of clowns like this who continue to collect severence packages to avoid a messy race lawsuit. When are we going to wake up and dsay enough already??????????
Mike
Thu, Sep 27, 2012 : 8:44 p.m.
Ypsiveteran - you are missing the point. The current administration is just a continuation of the problems with government . You know what they say about doing the same thing over and over agian and expecting different results............insanity
YpsiVeteran
Wed, Sep 26, 2012 : 4:49 p.m.
Itchy, I'm sure you're not going to let a little thing like fact get in the way of blind parroting of baseless rhetoric, but the YHC, and its salaries, contracts, retirement provisions, etc., predate the current president by many years.
Itchy
Wed, Sep 26, 2012 : 1:27 p.m.
I, as well as many others, agree with you. But, this town and most commenters will blast you for this type of comment. You see, they are in denial as to debt and being led towrads socialism. All Ypisilanti did was follow the lead of our President and his team in DC. Ann Arbor is going this route too. The next members of the 1% will be public employees and public employee retirees. The rest of us will be those that need financial help because good paying jobs are gone and all that is left is taking money from the government. I will vote for change this coming November, but we have to face the facts that most voters are in denial, do not read, are not up with current events and/or love the way this country is being led. The same holds true for this decision in Ypsilanti. No one, I mean no one will be held accountable for this theft of tax payer money.
RUKiddingMe
Wed, Sep 26, 2012 : 11:36 a.m.
Disgucting. This is what happens with groups (commissions, task forces, etc.) put in place to distribute tax (or grant, entitlement, etc.) money. The money goes to paying staff salaries, and corruption/mismanagement frequently pays a role. Then they retire in the midst of scandal, but who cares? This guy will be serving on some other board (commission, group, department) next year doing the same thing. He got the money, his friends got their money, now he can move on to the next job. Did everyone see how many staff members are associated with this whole debacle, and how many housing recipients there actually were? LOTS of staff to manage such a small program. This is typical. Same thing happens with Art COMMISSIONS, transporation BOARDS, etc. This is going on right now in like 7 places in A2, just no one's been caught yet.
motorcycleminer
Wed, Sep 26, 2012 : 11:46 a.m.
Hit the nail on the head ..When they say Ann Arbor is " green " it has nothing to do with trees it's about all the $$$ thats slips into the pockets of our " leaders " and anyone else who can get their hand under the table....when they get caught its always after they have milked the cow and moved on to the next barn...
Goober
Wed, Sep 26, 2012 : 11:16 a.m.
All I can say is WOW! Someone must have deep pockets, financially.
missmisery
Wed, Sep 26, 2012 : 11:11 a.m.
Of course he "retired" so he could get all of these benefits he's entitled to from his employer, and to avoid any kind of problems an official resignation would have for himself or they YHC.
HB11
Wed, Sep 26, 2012 : 11:03 a.m.
Is it any wonder why government jobs are so coveted? Unsustainable pension obligations are eroding cities' financial bases.
YpsiVeteran
Wed, Sep 26, 2012 : 4:46 p.m.
As clarified by Ms. Stafford below, this Norris person's money does not, thankfully, come out of the city's budget. Not that it makes the situation any less outrageous.