Montrose council will consider nine months of salary and specified benefits for former City Manager Bill Bell, plus interim pay for Ann Morgenthaler. Councilors also face a deadline to fill Dave Frank’s vacant seat. Here’s what the agreements and appointment process involve.
Montrose City Council will consider an agreement Tuesday providing former City Manager Bill Bell with nine months of base salary and specified benefits, alongside a temporary pay increase for interim City Manager Ann Morgenthaler.
The votes follow council’s September 1 decision to accept a mutual separation with Bell after 15 years in the position and appoint Morgenthaler to lead city operations. A separate discussion Monday will address filling the council seat Dave Frank vacated effective September 7.
The agreements on the September 15 agenda describe the proposed compensation arrangements, although Bell’s agreement does not state his base salary or the total dollar value of his separation package.
The agreement provides a lump-sum payment equivalent to nine months of Bell’s base salary, nine months of the city’s 8 percent retirement contribution, and nine months of health, vision and dental premiums calculated at the COBRA rate. It also provides payment for his final two weeks, 100 hours of unused sick leave and accrued vacation.
City Attorney Chris Dowsey’s accompanying memo says Bell’s salary and benefits were included in the 2026 budget. That identifies an existing budget provision but does not establish the package’s total cost or the overall financial effect of the transition.
The agreement includes mutual releases of claims and a nondisparagement provision. It also requires the return of city property, including a vehicle, laptop and phone.
The city has described Bell’s departure as a mutual separation. In his public statement, Bell said he requested the arrangement because he believed it was in the city’s best interest. Council’s statement said it accepted the separation following an executive session he requested.
Tuesday’s action would ratify the separation agreement council accepted September 1 and formalize Morgenthaler’s interim employment agreement.
Dowsey’s memo says the separation agreement was not explicitly noticed on the September 1 agenda and describes ratification as intended to address a purported open-meetings notice violation. His memo concerning the interim appointment similarly notes that it was not an agenda item.
That is the attorney’s stated rationale for bringing the matters back before council. It does not, by itself, establish that a violation occurred or determine the legal effect of ratification.
Both agreements are scheduled to receive public comment before Tuesday’s votes.
Morgenthaler has been serving as interim city manager since September 1. The proposed agreement would add a monthly stipend of $1,479.26 to her existing salary during the assignment.
Dowsey’s memo describes the stipend as a 10 percent increase over her annual base salary of $177,511.24. The additional compensation was not budgeted and would come from the general fund.
The agreement runs until a permanent city manager begins work. It also addresses Morgenthaler’s return to the deputy city manager position if council ends the interim assignment early, including a six-month period of protection from termination without cause under the agreement’s terms. The interim role is at will, and the agreement provides for resignation with 60 days’ notice.
A separate item Tuesday would appoint Morgenthaler executive director of the Montrose Urban Renewal Authority. Council will discuss that proposal at Monday’s work session.
Frank represented District IV beginning in 2020, won reelection in 2024 and served two terms as mayor. His resignation took effect September 7.
In the city’s announcement, Frank cited the personal toll of council service and encouraged residents to consider stepping forward. The announcement also explains the charter’s vacancy procedure: the remaining councilors must choose a qualified replacement by majority vote within 30 days. The appointee serves until a successor is elected at the next applicable special or general municipal election, qualifies and takes office.
Monday’s work session lists the appointment process under general council discussion. Residents interested in applying should watch for eligibility requirements, an application deadline and an interview schedule.
The vacancy discussion is listed separately from the six staff discussion items designated for public comment. Prospective participants should check with the City Clerk about whether comments will be accepted during that portion of the meeting.
The leadership changes come during a period of public disagreement over city governance and four proposed charter amendments headed to voters in November.
In a September 8 joint statement, Mayor Michael Badagliacco and Councilor J. David Reed acknowledged strained relationships and tested public confidence. They said their differences over the amendments remained, while committing to seek a citizens’ charter review commission after the November election.
The two councilors also affirmed the certified April municipal election results. They said an internal review had identified procedural weaknesses and called for clearer election-administration responsibilities, refined agreements, a formal process for selecting election judges and a designated location for candidates to await results.
The statement offers a shared commitment to procedural improvements while leaving the underlying policy disagreements unresolved. Those discussions will continue as council works through the management transition and selects a new member.
Council’s work session begins Monday, September 14, at 10 a.m. The regular meeting begins Tuesday, September 15, at 6 p.m. Both take place at the Elks Civic Building, 107 S. Cascade Avenue.
Tuesday’s leadership items include Bell’s separation agreement, Morgenthaler’s interim agreement and her proposed Montrose Urban Renewal Authority appointment. Each is listed for public comment before council action.
Participation is in person, and meetings are streamed on the city’s YouTube channel. The Montrose Public Meetings Portal provides agendas and supporting documents. Check the current agenda and comment instructions before attending.
