Wednesday, July 23, 2008

City Manager Steps Down After 1 Year

By Rosalie Rayburn
Journal Staff Writer
      Rio Rancho City Manager Jim Payne is stepping down after barely a year at the helm of New Mexico's third-largest city.
    Payne communicated his decision in a conversation with Mayor Thomas Swisstack on Monday and issued a formal announcement Tuesday morning.
    "I have enjoyed serving the citizens of Rio Rancho; however, I believe it is time for me to pursue new challenges and opportunities," Payne said in a release city spokesman Peter Wells e-mailed to the Journal.
    Wells said Payne was out of the office Tuesday and was not available for comment.
    The e-mail said Payne would remain in his position until Sept. 30 to give the city time to find a replacement. He has negotiated a severance package for 10 months' salary plus benefits and vacation pay, worth more than $100,000. In return, Payne has agreed to release the city from any future legal claims that may arise from his resignation. Payne was hired at an annual salary of $121,000.
    Wells said in e-mails that city councilors have accepted Payne's resignation and will not have to take a vote on the matter. He said City Attorney Jim Babin has agreed to act as interim manager, if necessary, until a new city manager can be hired.
    Babin is no stranger to the job. He has been acting city manager several times, most recently last year after city councilors voted in December 2006 to fire former City Manager Jim Palenick.
    The council picked Payne from a field of more than 45 candidates, after a four-month national search. He became city manager in June 2007.
    Payne's brief tenure in Rio Rancho has been marked by turmoil at City Hall, though not of his own making.
    A month after Payne became city manager, Mayor Kevin Jackson resigned amid allegations of financial improprieties.
    In August 2007, city staff moved to the new City Hall. A month later, the Attorney General's office issued an opinion saying councilors violated the state open meetings act when they fired Payne's predecessor. The former city manager and the city are now embroiled in a lawsuit, with Palenick claiming he was fired illegally, is still city manager and is due more than $120,000 in back pay.
    The city has rejected Palenick's claims that his termination was illegal on the grounds that he accepted a severance package worth more than $92,000.
    Payne, a soft-spoken mid-Westerner who came to Rio Rancho from Waukesha, Wis., has pursued a radically different style from Palenick. Jackson cited Palenick's lack of communication and uncooperative manner as reasons that led to his termination.
    During his administration, Payne has reorganized the chain of command at City Hall, separating information technology and human resources functions into their own departments.
    He supported ensuring budget funds to cover a pay restructuring agreement for unionized city employees. He oversaw efforts to create a long-term strategic planning process and a citizen survey.
    In recent months, Central New Mexico Community College and the University of New Mexico have fleshed out plans to build a campus in Rio Rancho and computer giant Hewlett-Packard has announced plans to build a customer support center in the city's new downtown area.
    Rookie City Councilor Kathy Colley, who was elected in March, said Payne has been very helpful showing her the ropes.
    "I'll be sorry to see him go," Colley said in a phone interview on Tuesday.
    But there have been indications that Payne's hold on his position might not have been secure.
    In early June, Swisstack unveiled his recommendations for creating a long-term strategic plan for the city. The plan included a proposal to revamp the organization chart for city staff, reducing the number of department heads that reported directly to Payne.
    At a work session June 15, Swisstack said he was not married to that proposal.
    Swisstack said Tuesday that Payne's departure had nothing to do with his reorganization proposal.
    "This is an amicable deal," Swisstack said. He plans to discuss with councilors how to proceed with a search to replace Payne.
    Swisstack acknowledged he had heard rumors that Rio Rancho might be trying to woo Gov. Bill Richardson's chief of staff James Jimenez back to his old job.
    Jimenez was Rio Rancho's city administrator from 1999 to 2003 when he left to become secretary of the Department of Finance Administration.
    He recently served on the fiscal/financial transition teamed formed by Swisstack shortly after his election in March. Richardson appointed Jimenez as his chief of staff in 2006. Journal calls to the governor's office and Jimenez's cell phone seeking comment were not immediately returned.
    Swisstack downplayed the speculation about Jimenez in a phone interview.
    "Rumors are just rumors in government," Swisstack said.
   

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