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By Paul Takahashi (contact) 
Tuesday, Feb. 15, 2011 | 8:32 p.m.
Mary Kay Peck
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Sun archives
- Arbitrator determines Henderson owes ex-city manager seven-figure settlement over firing (10-15-2009)
- Judge dismisses suit filed by former Henderson city manager (10-15-2009)
- Former city manager sues Henderson, City Council over firing (5-18-2009)
- Henderson fires city manager after 18 months (4-15-2009)
- Council discussion on Henderson city manager slated for Tuesday (4-8-2009)
- Henderson city manager says she hopes to return to work (4-3-2009)
- Henderson city manager leaving post after 17 months (3-17-2009)
The Henderson City Council voted Tuesday night to approve an almost $1.3 million settlement with its former city manager, who sued the city after she was fired in 2009.
Mary Kay Peck, who was employed by the city for nearly 14 years, was fired by the council in April 2009 after serving as the city’s first female city manager for 18 months.
Under the arbitration settlement agreed upon by her attorney and the city, Peck will receive $1,287,099 in damages from the city. Councilwoman Kathleen Boutin was the sole dissenting vote against the resolution.
“We have the arbitrator’s decision before us,” Mayor Andy Hafen said. “It’s time to move on.”
“This decision absolutely vindicates her,” said Peck’s attorney, Norman Kirshman. “She is very happy with the decision.”
Peck was fired during a City Council meeting on April 14, 2009. Council members at the time said they dismissed her for not fully disclosing the city’s financial status to them.
“It was a calamity for her,” Kirshman said, likening the meeting to the Salem witch trials. “She was accused of not doing her job and creating a ‘culture of fear’ among city employees. It was done at a public meeting and neither she nor I were given any meaningful opportunity to comment on the allegations.”
Peck filed a lawsuit against the city in May 2009, alleging that the city violated her due process rights.
Although the U.S. District Court dismissed Peck’s lawsuit after determining her due process had not been violated, Peck’s claim that the termination violated her employment contract proceeded to binding arbitration.
In December 2010, arbitrator Gerald McKay determined that the city did not provide sufficient cause to fire Peck under its contract.
Peck received $160,000 in accrued benefits from her $225,000-a-year job when she left. The settlement awarded Tuesday includes attorney and arbitration fees.
Councilwoman Debra March, who was not a member of the City Council when Peck was dismissed, said she would like to see the city re-evaluate fees on third party counsel and arbitrators in the future.
Peck currently lives in Florida and is still searching for a job, Kirshman said.
“She’s feeling a little better now, but only time will tell if new opportunities will open up for her,” he said.
is this frickin wall street???
Unbelievable...but not surprised!
City Council screwed up, which screwed its own citizens. Every person who had a vote to terminate should be immediately removed and sued to recoup some of the money lost to pay this woman.
Even if she was the worst city manager in history, anyone with half a brain knows that you need CAUSE in order to not be held financially liable. These nimwits didn't do that.
Good for you, Mary Kay. I don't know if you were great or terrible at your job, but these idiots should not have terminated you in that fashion.
Have the criminals been captured?
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wow.. thought i pick up a fla paper by mistake.
Andy, I am sure you will be reading these posts since you seem sensitive to this issue.
I was discussing this with a bunch of my neighbors (all business owners that employ highly compensated professionals) and we were disgusted by her pay level and the fact that the public sector felt she needed a contract "that protected her". At that pay level, you can hire far better employees than her and they do not demand a contract.
City councils gross wasting of the tax dollars we are trusting them with, is making us sick.
Get your payroll under control or we will start to take away your revenue sources and force you to get it under control.
Everyone, appeal your personal and business property taxes. You are too late to do it this year, but make sure you file an appeal before Jan 15 next year. Given the corruption and abuse of our money by muni and county governments, it is UNETHICAL and IMMORAL for you to provide these people with more money. Make sure you provide them with the very least money allowable by law.
Mark;
This is a right to work state. I do not need a "reason" to terminate her UNLESS I am stupid enough to give an employee of 19 years a NEW contract.
As long as I do not violate federal law, I could fire Mary Kay from my business and not pay her an extra dime. As soon as she was uncooperative and flippant, any businessperson in this state would have sent her packing and not paid a DIME.
To pay her $90,000 because she did not take sick days is disgusting, but the wrongful dismal is pure stupidity. That was our money they just give away. The settlement makes me sick to my stomach.
I don't think she's too concerned anymore about finding another job..... invest wisely and live off the interest, MaryKay
She will get only $ 1,287,099 from the city of Henderson ????? THE TAXPAPAYERS are the ones that HAVE TO PAY FOR THIS ...IF YOU WORK FOR THE CITY OF HENDERSON ...AND YOU DONT NO WHAT TO DO AS MANAGER...YOU CAN RETIRE IN 2 YEARS AND MOVE TO FLORIDA WITH MILLIONS OF DOLLARS FROM THE TAXPAYERS OF HENDERSON.. I CANT WAIT FOR THE THANK YOU LETTER SHE WILL SEND THE MAYOR !!!!
Unbelieveable.
more fleecing of the taxpayer by public "servants"
my question to everyone, now that the city council messed up and all us taxpayers have to pay Ms. Peck (which i agree with), what is the punishment for this messed up city council? obivious they have no attorneys with any education or understanding that could of stopped in and said "hey we can't do that" aka fire Ms. Peck, "it is wrong thing to do" or "we will get sued", or "you all are nuts"....so what happens now, no leader of a messed up city council "we move on"...you dismiss all these people who clearly had their own agenda to fire Ms. Peck and you replace them with people of intelligence...i doubt this will happen, we will probably move on with the disfuntional council we have, how sad...I can only imagine how much good all the money could of done for the city...nawww,they would of wasted that too...nevermind, going to bed..