Two Crestwood residents addressed the Board of Aldermen last week with concerns regarding former City Administrator Petree Eastman’s settlement agreement.

As first reported by the Call May 10, Eastman will receive seven months’ salary under the terms of a settlement agreement approved by the Board of Aldermen.

Eastman, who worked for the city from Oct. 17 through March 9, also has the option of Crestwood continuing to pay her health insurance benefits for 12 months, or through March 31, 2013, according to the settlement agreement.

Resident Jerome Friedeck, of Fournier Drive, said he would like to know the “total amount which was spent for (Eastman’s) severance,” what the severance includes and how it will be paid.

“We, the taxpayers should be able to know that,” he said.

City Attorney Rob Golterman told Friedeck that Eastman received the seven months’ salary in a lump sum along with the 12 months of health insurance.

Eastman’s salary was $98,000 annually.

“Although, there are some credits to the health insurance portion if the individual becomes insured under another plan,” he said. “The agreement is available to the public. You’re welcome to request a copy from (City Clerk Tina) Flowers, and you can read all about it.”

Golterman said the severance package does not include vacation or sick leave.

Finance Officer Greg Kremer said the money to pay the settlement would come from the general fund. When the city administrator position is filled, it also will be funded through the general fund, according to Mayor Jeff Schlink.

Friedeck asked if funds are available to pay a city administrator salary, to which Schlink said, to his knowledge, there is “money in that fund to pay for that salary.”

Resident and former Ward 3 Alderman Greg Roby, of Buxton Drive, said though the money comes from the general fund, residents foot the bill through the taxes they pay.

“I think that that needs to be looked at. I think we need to be better stewards of that money,” Roby said.

Roby also approached the board with “some very serious concerns” regarding the settlement with Eastman.

“(Eastman’s) departure is not the first departure of a city employee in which we have had to pay monetary funds for the severance,” Roby said.

Former Director of Finance Diana Madrid received a lump-sum settlement in 2006 of $35,486.33 — a figure based on 24 weeks of her regular salary of $70,430 and unused vacation hours. Around the same time, former Police Chief and City Administrator Don Greer received a settlement paying more than $74,500 in accumulated time-off hours, based on his annual salary of $94,790.

However, Roby said one of his concerns, specifically with Eastman’s departure, is there is no indication of who drafted Eastman’s terms of employment with the city.

“Was this document drafted by the city, or was this document provided to us by Petree Eastman as a potential employee?” he asked.

Golterman said the terms of employment were taken from previous city administrator agreements, reviewed by Eastman, then finalized and approved by the board.

“The starting point for the document was a prior document with terms of employment for a city administrator that I drafted,” he said. “It was then reviewed by the candidate. She made some proposed revisions. I made revisions, and ultimately it was finalized and approved by the Board of Aldermen.”

Roby asked if that sort of document would normally be signed by the parties involved, to which Golterman said it never would. Roby then asked how the city can be held to its terms.

“Because it was approved by an ordinance, which is required by the code of ordinances for the city of Crestwood …,” Golterman said. “It’s attached to an ordinance and the ordinance was passed and signed by the mayor.”

Roby said it seems the city has “some issues either with (its) legal process or we have issues with our charter, and maybe both.”

“I question whether future city administrator applicants should be asked to sign a contract,” he said. “I think they should be employed at will. We’ve just had too many instances that have cost us money.”

Schlink said he agrees with Roby’s comments “with regard to the contract.”