Chatham County approves resignation, severance agreement with County Manager Lee Smith

Will Peebles, Savannah Morning News
·4 min read

The Chatham Commission on Friday approved the resignation of now-former County Manager Lee Smith, who has been on administrative leave since July 21, and formally began contract negotiations with Assistant County Manager Michael Kaigler to elevate him to the top post.

Kaigler had been serving as interim manager since Smith was placed on suspension.

Chatham County Chairman Chester Ellis said after a lot of back and forth with Smith's lawyer, Brent Savage of Savannah-based Savage Turner Pinckney Savage & Sprouse, they were finally able to come to an agreement.

Smith, reached by text Friday, said the day was bittersweet.

"I tremendously enjoyed my time as part of Team Chatham and will always consider the entire team as family. I am glad the negotiations were finalized today so myself and Chatham County can move forward. I am pursuing opportunities in a number of places but consider Savannah home. I plan to maintain my home here and possibly return when retirement rolls around," the text read.

Ellis did not divulge details about Smith's severance agreement and told reporters he would rather they "get it in writing" to avoid any inaccuracies, though he also said the contract "will be made public."

Smith's lawyers shared a copy of the severance agreement Friday afternoon.

Here are key details from Smith's severance agreement:

  • Smith will officially resign as county manager, effective Jan. 2, 2023.

  • Smith will remain on county payroll for a full year, receiving bi-weekly installments of $9,931.20, for a total of $258,211.20. The agreement outlines this as "nine months' salary in accordance with his employment contract and additional three months' salary as is stated in the Chatham County Enabling Act."

  • Additionally, the county will continue to make employer pension contributions until Jan. 2.

  • The county will stop paying Smith's annual car allowance of $7,200 per year and will make no further contributions to Smith's retirement plan after Jan. 2.

  • Smith may be eligible to draw benefits as allowed in accordance with the pension and health plan not to exceed 12 months from the agreement.

More: Chatham County manager suspended by chairman. Here's what we know so far

More: Lawyer: County Manager Lee Smith signed severance agreement. Then county reneged.

Still no reason given on why Smith dismissed

Smith said in a November interview with the Savannah Morning News that he believed the reasons for his suspension to be "personal and political." Even after the severance agreement was approved Friday, Ellis refused to say why Smith was suspended, again deferring to the agreement itself.

The agreement does not have information on why Smith was suspended.

In the agreement is a stipulation: "Smith has not engaged in, nor is Smith aware of, any misconduct or wrongdoing on the party of the County of any kind or any regard."

Additionally, the agreement stipulated that Smith will not sue the county "out of or in connection with the employment relationship, previously existing between them, or the termination of that relationship," unless the county violates the agreement in any way.

"Let me just say, I wish Mr. Smith well. I guess some might say I might have been his cheerleader," Ellis said.

More: Chatham County Manager Lee Smith's lawyer: 'He's never been told why he's on suspension'

Smith said in a previous interview that the whole process — uncertainty about why he was suspended, dealing with severance negotiations, watching his team carry on without him — has been rough on him both mentally and emotionally. When people ask him why he was suspended, he doesn't have an answer.

"I tell them: 'I don't know, I must have been in a coma. Because I don't know what I did,'" Smith said. "Nobody's telling me anything. So, all I can say is: it has to be personal and very political."

Since July 21, Lee Smith had been on administrative leave.
Since July 21, Lee Smith had been on administrative leave.

In the time since his suspension, Smith and his lawyer have been negotiating a severance agreement with the county.

Smith and Savage received an initial severance agreement sent by the county on Aug. 25 and a second proposal on Sept. 6. The later agreement included a smaller payout.

Smith told the Savannah Morning News last month that he sought three things from the severance agreement: vestment in the county's pension fund; health insurance in retirement; and the equivalent of nine months' pay.

More: Suspended Chatham Manager Lee Smith says ouster, investigation is 'personal and political'

Chatham County manager suspension: How much will it cost taxpayers if Lee Smith is fired?

This article originally appeared on Savannah Morning News: Commission approves Chatham Manager Lee Smith's severance, resignation