The chairman of Memorial Health System’s Board of Trustees signed an agreement on the terms of a $1.15 million severance package with CEO Larry McEvoy four days before presenting it to the City Council.

What was signed and when could be key issues as the council weighs whether to remove the board and attempt to overturn the agreement at a special meeting at 4 p.m. Tuesday.

James Moore, Memorial’s board chairman, said he signed the “terms of the agreement” April 19. Moore said the terms of the agreement are akin to an offer on a home and constitute a legally binding contract – even though the final separation agreement with McEvoy has not yet been signed.

“I have had attorneys tell me that if we do not proceed, that we could be in default of a contract,” Moore said.

Moore and fellow board member Vic Andrews said Monday that council members didn’t raise any concerns when the severance agreement was presented to them during a closed executive session April 23.

“There wasn’t a comment or a question on this,” Andrews said. “There wasn’t a peep.”

However, Councilman Tim Leigh said that he was not aware at the April 23 meeting that some form of agreement had already been signed.

“I’m not sure the councillors were aware that it was de facto (agreed upon) when it was presented to us,” Leigh said. “That’s going to be an interesting question.”

Leigh said Memorial’s board  also didn’t present the details of the contract, such as a total dollar figure, or that McEvoy would get to keep his company car, a 2007 Toyota Camry Hybrid.

“The way it was couched to us was that the industry standard was 2-3 years, but because we the board are billiant it was negotiated down to 18 months,” he said.

But by late last week, when the terms of the agreement were made public, Leigh and Councilwoman Angela Dougan expressed outrage. Mayor Steve Bach called for the board’s ouster if the Memorial board didn’t reverse course.

Despite that pressure, on Monday the board reaffirmed the severance agreement in an 8-1 vote. Dr. Karen Anthony, Memorial’s chief of staff, cast the lone dissenting vote.

Going into Tuesday’s special council meeting, Dougan said the question about when Moore signed the terms of McEvoy’s separation agreement was at the top of her list.

“This is the exact question I was bringing to the meeting today,” she said.

Dougan said the council had previously instructed the board to bring all contracts exceeding $1 million to council first.

“I don’t believe the board followed policy or procedure by signing this term agreement, which bound them to a contract without consulting council first,” she said.

“I hope this gives us the legal leg to be able to stop this contract,” she said. “The citizens and the workers are extremely upset.”

Don’t assume there’s nothing council can do, Leigh said – he’s seen similar deals fall apart.

“When is a deal a deal, is my question,” he said. “I’m glad they have a document they signed – maybe it’s enforceable and maybe it’s not. I would caution anyone to say that it’s a done deal.”

In an interview Monday evening, McEvoy did not say what action he would take if the council tries to overturn the contract.

“Do you reverse a board’s decision simply because some people don’t like the decision?” McEvoy asked. “Are we going to do the right thing for the right reasons, or, if we don’t understand them, are we going to undo them?”

Larry McEvoy Photo by