City begins Murphy contract talks

Hobbs City Manger J.J. Murphy has had his annual review and now city commissioners are starting the talks early about renewing his five-year contract, which comes due in August 2017.

“His contract was for five years and he has been here four years in August, we need to start having some discussions about that,” Mayor Sam Cobb said prior to Monday’s (Aug. 1) closed session meeting where Murphy’s contract was to be discussed. “Are we are going to pro- vide him a contract for an additional period of time, if so what would be the most economical, and, if not, what would be the best separation strategy?”

Thursday, Cobb said the commission did not discuss Murphy’s performance or contract in detail because of the absence of Commissioner Garry Buie, who was out because of a family death. “We had a 30,000-foot conversation,” Cobb said. “We didn’t want to get engaged without Gary present. We are going to have a closed session at 5:30 p.m. (today).” Cobb said he doesn’t anticipate an action on Murphy’s contract until next year, but said the commission wants to begin discussions early.

“In fairness to him, we both need to know how we want to proceed,” he said.

He added he believes Murphy has done a good job for the city.

“Based on my understanding of the Mr. Murphy take on and do, I have been pleased with his performance to date,” he said.

Cobb said his preference is the city begin discussions of the contract sooner rather than later.

“I think some cities wait until the last 30 days,” he said. “My personal preference is we have a clear path. It serves no purpose to leave them hanging or for someone to terminate you without warning.”

Cobb said he cannot speak for the rest of the commission, but said he is not concerned about Murphy applying for jobs in multiple communities.

“It is a little unfair,” he said of the attention Murphy’s applications to other communities have garnered, “and people perceive it as a matter of loyalty where it is a situation where if someone merely looks then they get their name in the newspaper. I don’t perceive it as a loyalty issue.”

Cobb said it is not unusual for employees at his company to put their resumés out to see what other jobs are available.

Murphy most recently applied for city manager positions in Las Cruces and Dunedin, Fla. His current salary with the City of Hobbs is listed at $176,835.36, ranking his salary as one of the three highest in New Mexico for a city manager. Murphy received a 2 percent cost of living adjustment along with other city employees last year, but the city did not dole out its 3 percent merit raises because of decreased revenues with the slumping oil economy.

Merit raises may not be offered this year either, however, Murphy could renegotiate his contract with the city for a higher wage. His current benefits package includes — along with health and retirement packages — 20 hours of paid time off accrued each month, a vehicle and fuel provided for official travel and up to $7,000 in bereavement expenses in the event of death or severe illness of an immediate family member.

A clause in Murphy’s contract also stipulates that if the City of Hobbs terminates his employment, he will receive “a minimum severance payment equal to one year salary at the current rate of pay.”

City commissioners said in June they feel Murphy is doing a good job although Commissioner Pat Taylor said she hoped he would give Hobbs his undivided attention.

Murphy said Friday he has been happy working in Hobbs and his family enjoys the community and would like to remain in Hobbs. He added that contract discussions this early are not uncommon in larger municipalities and counties.

“We are discussing various options of moving forward,” he said, adding he does not believe the contract will be for another five years. “I think in this economy, we’re probably looking at a shorter term contract. I am respectful of the fact the contract I was given was under different financial times and I understand the apprehension of this executive compensation package.”

He said he also embraces starting the discussions early in the event an agreement is not reached on the contract.

“If we are not going to move forward with an extension, I want to make sure the community is ready with a transition plan,” he said.

The commission’s closed session meeting will be at 5:30 p.m. today in the commission’s chamber in the City Hall Annex, 200 E. Broadway.

Levi Hill can be reached at 391-5438 or managingeditor@hobbsnews.com .