ROGERS -- Aldermen offered City Attorney Ben Lipscomb $390,000 Tuesday night to resign, hoping to end a months-long dispute and settle a federal lawsuit.
Lipscomb agreed to resign upon receiving payment, said John Wilkerson, legal defense for the city through the Arkansas Municipal League. He said this could happen as early as today.
Lipscomb's position will not be vacated until the City Council can approve the resignation during its next regular meeting Feb. 10, said Mayor Greg Hines. He said the position will be filled by appointment until it's up for election in 2016.
"The fact is we either continue down the path we are on or pay today and heal tomorrow," Hines said. "We are dealing with someone who was elected and there is no solution other than this person voluntarily leaving their position."
Lipscomb said he was "pleased" with the settlement.
"I am glad for the chance to put this chapter of my life behind me and begin the next chapter," Lipscomb said.
Lipscomb filed a civil rights lawsuit against the mayor and council in federal court in November. He claimed the council violated his constitutional rights when it transferred most of his duties to a staff attorney who answers to the mayor. Those duties include acting as the city's attorney in all civil litigation along with providing services to the council and mayor.
Three Rogers alderman signed affidavits saying Lipscomb suggested the changes to his job duties. Hines also previously said Lipscomb recommended the changes.
It would have cost the city $365,000 to continue employing Lipscomb through the rest of his term, Wilkerson said. He said this cost includes salary, benefits and other expenses. Lipscomb's term ends November 2016.
"From our prospective, his duties were limited," Wilkerson said.
The county prosecutor also refused to commission Lipscomb to prosecute misdemeanor cases in Rogers District Court. The city's water and sewer board also stopped using Lipscomb's services. He remained responsible for prosecuting city code violations.
Hines said Lipscomb had less than 20 city code violations a month.
Wilkerson said it was important for the city to settle the lawsuit.
"This helps us save the trouble of litigating a case all the way through," he said. "I was up here once a week for eight weeks. I have already spent 100 hours on this case. That would have continued on."
The cost of litigation is more than financial, Wilkerson said. He said it also takes employees away from their duties.
Hines said he will propose making the position ceremonial going forward. The person filling the position would have limited duties and receive a small annual stipend, Hines said.
City council members and Hines discussed the case Friday during a closed-door settlement conference with U.S. Magistrate Judge Erin Setser. Wilkerson said Lipscomb agreed to the settlement during the meeting.
The Northwest Arkansas Democrat-Gazette objected to the meeting being closed based on the open meetings requirement of the Arkansas Freedom of Information Act. Sester said neither federal nor state law required the meeting to be open. Sester said only discussions could occur during a closed-door settlement conference. She said all actions would be made during open council meetings.
Brian Ferguson and Ellen Turner filed to intervene in the case Dec. 29. The Rogers residents said Lipscomb isn't qualified to hold office since he doesn't live in Rogers. The residents amended their complaint last week asking the judge to vacate the office.
The complaint stated Lipscomb voted in city elections by using an address of a house he owns in the city but doesn't live in. Turner emailed a statement for both residents Tuesday night.
"We are pleased that Rogers City Attorney Ben Lipscomb has agreed to resign," the email states. "While it is disappointing that he will receive a financial settlement, we also understand the financial and administrative toll that a costly lawsuit would entail."
Several issues led to the transfer of job responsibilities to the staff attorney, and reducing Lipscomb's staff.
Lipscomb acknowledged advice he gave Hines led to former finance director Jerry Hudlow being fired. Hudlow sued in U.S. District Court and was returned to his job and awarded $630,000.
"I know the mayor had to put some distance between us for political reasons after the Hudlow case was settled," Lipscomb said.
Lipscomb was the focus of an investigation into a complaint he used his city ID to enter the VIP tent during a concert at the Walmart Arkansas Music Pavilion.
A Springdale officer working security said Lipscomb showed a badge, and she believed he was a law enforcement officer. Marc McCune of Crawford County, serving as special prosecutor, determined there was no reason to file a complaint against Lipscomb for impersonating a law enforcement officer.
A two-year-old police report, discovered through a Freedom of Information request, revealed a former city employee said Lipscomb offered Xanax to him. The statement was investigated, but no complaint was filed by police.
William Horton, an attorney, filed a complaint against Lipscomb for sending him harassing email about a District Court case. No action was taken.
Hines, in a September news conference, said if he had authority over an elected official, he would have fired Lipscomb after the incident at the music pavilion.
Teresa Moss can be reached by email at tmoss@nwadg.com or on Twitter@NWATeresaM.
NW News on 01/28/2015