Commission votes to fire county manager

Geneva Hollis, Nye County administrative services director, was named interim county manager last Saturday, after a divided Nye County Commission voted 3-2, June 5, to fire Jerry McKnight.

Commissioners Henry Neth, Cameron McRae and Joni Eastley voted for the motion to terminate McKnight, Commissioners Jeff Taguchi and Dick Carver voted against.

Eastley initially wanted to terminate McKnight without cause, but commissioners passed Neth's motion to terminate him with cause, invoking a section of his contract that allowed the termination with cause without paying his six-month severance pay.

Commissioners met later this week to discuss possible compensation. Hollis was also scheduled to bring various options to search for a new county manager.

McKnight had been county manager since October 1998. He replaced Les Bradshaw, who is now the Nye County director of federal programs and had been county manager two years before that. McKnight had been Washoe County chief financial officer for eight years before being hired by Nye County.

At the start of the June 5 discussion in Tonopah on his performance, McKnight asked that it be held in open session. Nye County Commissioners already met in executive session twice this year to evaluate his performance.

"Approximately two months ago, Jerry was asked to bring to the commissioners a plan to downsize and streamline county government. In this commissioner's opinion he has bucked that at every turn. He had a pretty good idea, at that meeting 60 days ago, we handed him a template we wanted him to use, this is what we wanted to see done. Nothing that even resembles that was ever brought forward," Neth said.

"If we fired him for no cause he gets six months severance, $45,000 or thereabouts. I say if there's no cause, why fire him?" Neth asked.

Neth said there is a misconception among some county employees there will be widespread county layoffs in the streamlining process. He said several "top-heavy positions" will be eliminated, "none of the people that actually do the work in the county."

McKnight questioned Neth's recollection of events in the previous closed sessions.

"Henry made the comment during the performance evaluation about a paper that was handed to me 60 days ago. I questioned him about that because I was never handed a paper. When I questioned it, Cameron remembered there was something written up on the board, he thought it was on writing or on paper. To me that was not on paper when we came out of that meeting."

Nye County Budget Director Gene Etcheverry presented a scenario that would call for eliminating four director positions and two departments, part of 11 full-time layoffs, saving $450,000 annually, a suggestion he said wasn't considered by county commissioners at a final budget hearing May 31, McKnight said. County commissioners talked May 31 about the cost of a human resources department, data information services and emergency management director.

"They told me they wanted county government streamlined so we have given them several proposals to streamline county government," McKnight said.

The county budgeted for a $1.8 million increase in revenues in the fiscal year ending June 30, but $881,000 of that were possessory use taxes from the Nevada Test Site, McKnight said. Almost all the $1 million increase in the county budget this year, $999,600, went to the sheriff's department, McKnight said, adding the sheriff's increase may be needed but has to be looked at when cutting the budget.

McKnight said he'd like to do what's best for the county but he has to think about his family. McKnight said his attorney will make a proposal to the county commission about compensation in the hope to avoid going through a legal battle.

Commissioner Taguchi said McKnight was a team player throughout, describing management as something that's cultivated, not instantaneous. "The flower does not bloom overnight," he said.

Taguchi said he presented his efficiency program "victory-based management" to county staff four months ago, which is based on "valuing the individual" as well as instilling the vision, taking the time and opportunity for investment.

"During the commission meeting, I wanted to point out something significant about management procedures," Taguchi said. "In any large organization with the number of employees we have change is not an immediate factor. It takes times to build up the allegiance of your employees."

Taguchi said the county manager's first two years are traditionally a "honeymoon phase," the third year is the reality phase when the county commission understands the county manager's management style. The fourth year is the attrition phase and the fifth year is where a growth phase begins, he said.

"You've gotten down to your core individuals who have an understanding of how things should work and where things should go," Taguchi said of that growth phase. "We are long-term oriented. The County of Nye is not something that just changes overnight, it's something that has to be moved. You have to move it and orchestrate it in such a manner that will get you where you want to go in a team aspect of it."

The county is "on thin ice" if it terminates based on personality rather than performance, opinion rather than fact, perception rather than truth, he said.

"There were probably seven county managers in the past 12 years. I believe three of them were probably interim, now that leaves four. Now if you divide four into 12, the average stay of a county manager is three years," Taguchi said. "We have not gotten past what we call the reality phase and in that reality phase we're stopping short of any potential growth."

"Numerous employees were absolutely devastated over this because Jerry was a person they considered they could work with," Taguchi said. "The county employees are now in a state of fear. That kind of behavior paralyzes an employee from being creative; paralyzes an employee continually looking over their shoulder for the ax."

Taguchi said commissioners may use a professional firm to search for McKnight's replacement, which may involve a citizens board to further review applicants.

"As far as his integrity was concerned, there was no integrity problem," Taguchi said of McKnight. "I said in the interview process I wanted him never to lie to me and he hasn't."