Lolli gets payout in retirement deal from Middletown city manager post

In a six-month evaluation of Lolli during the period of Jan. 1, 2023 to July 20, 2023, Ferrell found fault with Lolli’s communication skills including communication with council, teamwork with co-workers and supervisors and cited a need for him to apologize to a council member. It is not clear in the hand written document as to why.

Lolli will receive a payment for six months salary of $81,370.00, six months insurance benefits premiums totalling $11,344.64 and $43,266.94 accrued paid time off of 553 hours.

“Lolli and council wish to fully and finally resolve their differences amicably and without expenditure of unnecessary time and resources by either party,” according to the agreement signed by Lolli on July 15, a day before his retirement was announced after an executive session at the July 16 council meeting.

As part of the retirement agreement, council members agreed to provide neutral references for Lolli and “shall not disparage or direct others to disparage Lolli through publications, statements, and/or remarks.”

Lolli, a Middletown native, declined an interview stating only, “Simply it’s time to start the next chapter.”

Mayor Elizabeth Slamka and Councilman Steve West II said last week that Lolli’s service to the city is to be celebrated.

And councilwoman Jennifer Carter said, “Change is good, it brings about hope,” she said.

Councilmen Paul Horn and Ferrell did not respond.

Lolli’s departure comes seven months after former Police Chief David Birk, another longtime city employee, was placed on administrative leave last December and ultimately signed a separation agreement to retire in February. Birk also received a lump sum payment of a year’s salary and benefits as part of that agreement.

The city and Birk issued a statement when the agreement was finalized stating, “In light of the fact that Chief Birk has been on paid administrative leave in December, it should be noted that the city has not found the chief guilty of any wrongdoing, and he is not being asked or forced to resign from his position.”

In March 2022, Jim Palenick, who served as city manager for less than two years, and council signed a mutual separation agreement ending his tenure as the city’s leader and setting the stage for Lolli to take the reigns.

Palenick was paid $165,000 annually as city manager. The city agreed to pay him a gross sum of $128,764 for six months salary, benefits and accrued time off, according to the separation agreement.

Assistant City Manager Nathan Cahall will be the interim city manager on Aug. 1 while Middletown council launches search for a replacement for Lolli.

Lolli led the city as it progressed in its revitalization efforts, including overseeing major projects such as the Cliffs Hydrogen Ready Direct Reduced Iron Plant, park improvements, the Renaissance Pointe project, the Paperboard Remediation Project, the Home Improvement Repair Program, focused efforts on code enforcement, a new levy and the purchase of the former Central Connections building.