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Conroe Finalizes $425K Admin Severance Payouts

Conroe, TX – Conroe taxpayers are on the hook for a substantial $425,000 in severance payouts to three former top administrators, following “without cause” terminations earlier this year. The final agreements, approved by the Conroe City Council in recent months, conclude a period of significant leadership change and financial outlay for the growing Texas city.

The latest approvals came during a City Council meeting on May 23, 2024, when agreements were finalized for former City Administrator Paul Virgadamo and former Assistant City Administrator Steven J. Williams. Virgadamo, whose contract was terminated on February 22, 2024, will receive a payout of $205,000. This agreement passed with a 4-1 vote, with Mayor Pro Tem Curt Maddux casting the lone dissenting vote due to stated concerns about Virgadamo not completing certain transition tasks. Williams, also terminated on February 22, 2024, saw his $105,000 payout approved unanimously by a 5-0 vote.

These recent decisions follow a similar severance package approved in March 2024 for another former Assistant City Administrator, Gary Scott, totaling $115,000. All three administrators were let go “without cause,” a provision common in high-level employment contracts that triggers a lump sum payment equivalent to several months of salary and benefits without requiring specific allegations of misconduct.

The collective impact of these decisions means the City of Conroe is now responsible for a total of $425,000 in severance payments stemming from these administrative changes, drawing funds from the city’s general budget. The expenditure has raised questions among some residents regarding fiscal prudence and the cost of leadership transitions.

The initial decision to terminate their contracts unfolded during a special Conroe City Council meeting on February 22, 2024. In a split 3-2 vote, the council moved to remove Virgadamo, Williams, and Scott. Councilmen Harry Hardman, Howard Wood, and Mayor Pro Tem Curt Maddux voted in favor of the terminations, while Councilmen Todd Yancey and Duke Coon opposed the move. Notably, Mayor Sara Countryman was absent from that pivotal meeting, a detail that has drawn discussion among local political observers.

While no specific public reason was given for the “without cause” terminations, council members who voted in favor have generally indicated a desire for new leadership and a different direction for the city’s administration. The contractual provisions, however, ensured the former employees were compensated regardless of the reasons for their departure.

Delving into the specifics of their contracts, Paul Virgadamo’s final agreement, signed on October 25, 2023, was set to run through September 30, 2027. It stipulated that in the event of a “without cause” termination, he would receive 12 months of his base salary and benefits. His base salary at the time was $205,000, aligning directly with his severance payout. Steven J. Williams’ contract, last signed on January 25, 2023, would have been effective until January 31, 2027. His agreement entitled him to 6 months of base salary and benefits if terminated without cause. Williams’ base salary was $190,000, and his payout aligns with this provision. The specifics of Scott’s contract that led to his $115,000 payout were also based on similar “without cause” provisions tied to his salary and tenure.

The city has since appointed Mike Riggens as the new City Administrator. Riggens, who previously served as the city’s Director of Public Works, took the helm after Virgadamo’s departure and is now tasked with navigating the city’s operations and its long-term vision following these significant administrative exits and their associated financial implications for the Montgomery County seat. The substantial payouts underscore the financial commitment involved in changing top-tier leadership in municipal government and highlight the terms outlined in executive employment agreements.

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