EDC effort to oust chief is hardly its only problem

By JEFF WEBB

© St. Petersburg Times, published December 15, 2000

In a private meeting Monday, a majority of the board members of the Hernando County Economic Development Commission agreed the time has come for executive director Rick Michael to hit the bricks. They authorized the volunteer president of their group, Don Clifford, to continue negotiations with Michael, with the goal of obtaining his resignation.

Michael allegedly has an employment agreement that requires the EDC to pay him for three months after he resigns. I say allegedly because Michael apparently is the only one who has a copy of the agreement and he refused to share it with the Times, or even County Attorney Garth Coller, claiming it is "confidential."

It also is difficult to calculate how much three months' pay would be for Michael. The EDC doesn't break down individual salaries in the budget it submits to the county; it just lists a lump sum. However, it was reported in 1999 that Michael's salary was $72,100. Based on that figure, the walking money would come to about $6,000 per month, or $18,000 for three months.

If the written agreement exists, and is still valid, that sounds reasonable. By resigning voluntarily, Michael and the EDC can avoid the embarrassment of a messy firing, which is a stigma neither can easily endure.

Now, here's the kicker: 18 Large is not large enough for Michael and some EDC board members, who reportedly are considering giving him an additional bonus of $5,000 on his way out the door.

Alert Pat Sajak and Vanna White: they've been outdone in the category of lovely parting gifts.

To make the situation even more remarkable, we learned in a Times report Thursday that Michael has been receiving an annual bonus of several thousand dollars since he took the job in 1996.

We are told that the bonuses, including the $5,000 on the table now, are paid from the funds contributed by private donors, not from the largest part of the operating budget that comes from our property tax dollars. That is slightly comforting, but nonetheless puzzling.

The consensus is that Michael is being asked to leave because he has become ineffective. At Monday's meeting, only one member of the EDC board supported keeping him on. It would appear that his aloof personality and his professional fumbles finally combined to undo him professionally. In addition, the county administrator and the County Commission have called for reforming the contract with the EDC, which would make it even more difficult for Michael to stay on.

So, if Michael is being asked to leave because he can no longer accomplish what the board expects, why give him a bonus? It's customary to reward a job well done, not the other way around. In addition, why keep him around? Most experienced business people know that when the decision has been made to part ways with an executive, it should not be dragged out. Hand him a box, watch him clean out his desk, brief him on his benefits and hand him his severance pay.

The board should be able to rely on other EDC employees to carry on the day-to-day functions of the organization. In fact, that may become necessary for several months. Here's why:

If Michael gets three months' pay, that will keep him on the payroll through March. The EDC couldn't afford to pay him and his replacement at the same time. Even when Michael is paid off, though, it is not likely the EDC board will be able to hire a new director because he might be out of a job in a few months.

The County Commission recently agreed to hire a University of Florida professor to complete a comprehensive study on Hernando County's economic development potential. The results are due back to the county by June, and depending on what it finds, and which way the political winds are blowing on the commission when budget hearings are held in July, the EDC might cease to exist.

Whether Michael hangs around for a few months, or if he shoves off this afternoon, the EDC is going to be in limbo until the summer. It's just a matter of how much it will cost.

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