ELLY GRIMM
• Leader & Times
The search for a new city manager for Liberal took a step forward Tuesday evening thanks to discussions among the Liberal City Commission.
As one of the last items of new business, the commission began discussion of how to begin the search for a replacement for Rusty Varnado, who was terminated from his position last month.
“I’ve reached out to some firms, and I’ve also gotten some help from Angelica [Arroyo], and there were two firms that responded on such short notice,” Liberal Mayor Jose Lara said. “The first was the League of Kansas Municipalities, which we used for our last city manager search, and their proposal is a little less than $16,000, and their time frame is one to 16 weeks, and they’re pretty thorough. Like I said, we’ve used them and gone through their process before. We also received a proposal from SGR, which also has a one to 12-week timeline they prefer, and their proposal is not to exceed $28,900. I’ve spoke with John Deardoff and Marsha Reed, and I think both would be great choices. I spoke with Watkins Public Strategies as well, and a few other cities, and they recommend SGR but also praised the League of Kansas Municipalities. So as far as those recommendations, they’re right there hand-in-hand. I feel like the League focuses more though on a Kansas-based search while SGR will do more of a national search, which is reflected in their proposal price.”
“I’ve visited with someone who’s worked with both of these entities in the capacity of being a candidate, and he told me his preference was SGR due to the way they went about doing everything,” Liberal Vice Mayor Jeff Parsons said. “He felt SGR was much more thorough in their background checks and things like that. He didn’t dislike working with the League, he just felt SGR was better at least in that respect.”
“I’m very familiar with the Kansas League of Municipalities. I think they’re great and do a really good job of keeping in contact with several elected officials throughout the state, and I feel like they would be very familiar with our candidates because they have that constant communication,” commissioner Janeth Vazquez said. “As far as actually deciding on anything, however, I would like some more time to look at the proposals more thoroughly since we did just receive these a few hours before the meeting.”
No action was taken during Tuesday’s meeting, and the matter will come up again in the future for the commission to take action on.
To conclude the meeting’s new business, the commission discussed the separation agreement with former city manager Rusty Varnado.
“As you’re all aware, Mr. Varnado previously served as City Manager on behalf of the City from April 12, 2022 through Sept. 27, 2024. During his employment, multiple contracts were entered into between the parties regarding work duties, compensation, benefits, termination, and severance packages” City Attorney Lynn Koehn said. “This agreement in front of the commission, Mr. Varnado has agreed to its terms and conditions and to forever waive any type of claim against the city, and the terms are all pretty clear.”
The agreement begins be talking about Hold Harmless/Release of Claims.
“Mr. Varnado, in consideration of the terms contained herein and acknowledging sufficiency of the same, hereby waives any and all claims for any and all liability, actions, claims, demands, or lawsuits in law or in equity which he may have had and presently has, including but not limited to claims in connection with or arising out of his employment with City and the ending of that employment against the City and any person/entity affiliated with City which arise/arose out of the course of his employment with the City up to the date of execution of the agreement,” the agreement noted. “Such persons/entities shall include but not be limited to the following related to the City: commissioners, officers, insurers, attorneys, fiduciaries, current and former employees, agents, successors, assigns, and all other entities affiliated with or related to City without limitation. Such released and waived claims include, but are not limited to the following: any contractual provisions contained in Contracts on behalf of City, wrongful termination claims, discriminatory claims, negligence claims, and all civil tort claims such as defamation or slander.”
Compensation to Varnado is also in the agreement.
“The following consideration is made to Varnado for his past employment with the City: a.) A one-time gross payment amount of $40,000 to be taxed as ordinary income and to be paid as directed by Varnado prior to the calendar year ending 2025; b.) 2023 GMC Sierra AT4: Said vehicle was purchased by the City and part of compensation to Varnado that was to be taxed as such. To date, Varnado has made 12 pay period payments totaling $5,538.48 towards the purchase price of $60,000 for the vehicle from Integrity Motorsports, LLC. Said vehicle shall remain the possession of Varnado and in his ownership. Varnado shall be responsible for the remaining difference in compensation in the amount of $54,461.52 for income tax purposes. Such associated tax shall be withheld from the $40,000 paid; c.) Payment made by City for any type of inpatient treatment and costs associated with the same already paid for by the City for Varnado's benefit is not to be treated as compensation to Varnado; d.) Vacation Hours: Vacation hours accrued by Varnado in the amount of 50.86 hours shall be paid per policy of the City and taxed accordingly upon execution of this agreement by both parties; e.) Personal Belongings: The parties shall work together to allow for Varnado to obtain his personal belongings from Liberal City Hall. City staff will accompany Varnado to ensure that all privately owned items of Varnado are provided. In the event electronic documents owned by Varnado are on the City computer, then city staff shall facilitate a duplicate digital copy to be provided to Varnado.”
Other portions of the agreement include an agreement to complete all paperwork required, if any, by the City to effectuate Varnado's separation from employment and to cooperate with the City as necessary relating to any legal matter involving City involving any matter that arose during the employment of Varnado with the City.
“Varnado acknowledges he has read this agreement, understands its terms, and signs voluntarily of his own free will, without coercion or duress, and with full understanding of the significance and binding effect of the Agreement. Varnado acknowledges he has had an opportunity to consult with an attorney, if he so desired, before signing the Agreement,” the agreement noted. “Varnado expressly acknowledges that no oral or written representation of fact or opinion was made to him by City regarding the tax treatment or consequences of any payment made under this Agreement. It is expressly understood that to the extent any additional liability or responsibility exists for Varnado's federal, state, or local income or other taxes, such liability or responsibility rests solely with Varnado. Varnado further agrees to indemnify and hold harmless City in connection with any additional liability incurred by City in connection with any tax or taxes for which Varnado is responsible. Notwithstanding the foregoing, liability for the employer portion of any federal, state, and local taxes shall remain with City.”
After voting 3-2 (with Vazquez and Matt Landry voting no) to approve the agreement, the commissioners had the chance to give statements about its passing.
"Rusty Varnado and the city have reached a mutually beneficial separation agreement,” Lara said. “It is unfortunate that we had to end our relationship with Mr Varnado, but both parties agreed that it was time for a change. Without his transformational leadership we would not have the bright future that lies ahead. We wish him well in his future endeavors.”
“I want to express my strong opposition to the separation agreement passed by the commission tonight regarding our former city manager,” Vazquez said. “It is vital for our community to uphold the highest standards of integrity and accountability in all of our leadership positions. For this reason, I voted against the agreement. We must ensure our actions reflect our commitment to ethical governance. Allowing this agreement to stand does not align with those values, and it is essential we hold ourselves accountable to the residents we serve.”
