RECORDS SHED LIGHT ON CITY'S SATISFACTION WITH EX-CHIEF

At his annual merit review last year, former Maryville Police Chief Terry
Nichols was instructed to work to end a "siege mentality" and to implement
a "24-hour" rule to avoid reacting with anger.

Those were two of the items discussed when City Manager Gary Hensley
completed a merit review with Nichols on June 25, 2001.

A report of the review was included in Nichols' personnel file accompanied
by positive letters regarding the former chief.

Nichols gave his verbal resignation last week.

A look at Nichols' personnel file shows he started as a dispatcher Aug. 16,
1974, and was subsequently promoted to patrolman, corporal, sergeant,
lieutenant and then chief in 1989.

The file includes a 2-inch thick stack of letters with favorable comments
about the chief, including his creation of the Maryville Police Academy and
kind treatment of children.

It also included the 2001 merit review where the city manager specified
areas where the police chief needed to show improvement.

In Nichols' 2001 merit review, Hensley wrote: "Terry was counseled as to
his need to develop some sort of self-improvement plan which would lead to
improved relations with the fire chief as well as the Steering Team (city
department heads).

"Terry understands that the gaining of trust and maintaining that trust is
paramount to his self-improvement. The building of communication avenues is
a must."

It also states, "He was told to work on ways to dispel the siege mentality
that was present at the department level as well as implementing a personal
'24 hour' rule which is waiting 24 hours before reacting in possible anger
over something."

"He needs to continue to develop relationships with department heads and
put the personal issues quietly behind him," the merit review states.

It compliments Nichols on "keeping the daily operations going well as well
as his delegation of responsibility to his command staff."

Hensley wrote in his report of the merit review that Nichols said "the
department is doing well with the young officers maintaining a high
motivation level as well as the coaching and teaching role played by senior
officers."

According to the review report prepared by the city manager, Nichols
indicated, "His work on gaining a better relationship with the Steering
Team is a personal priority."

Nichols' annual salary was $73,590.40, enhanced approximately 38 percent in
benefits, said Teresa Best, head of the Maryville human resources office.
Benefits include use of an unmarked car, health, life and disability
insurance, vacation, sick time and holiday pay, Best said.

Nichols had topped out at his salary level.

The file also includes the fact that in 1995 he was given three days
suspension without pay over the purchase of lumber charged to the police
department for a personal home improvement project.

Nichols said he meant to go by Cherokee Lumber and pay the bill of $45.72
before it was sent to the city but forgot. In a written report, Assistant
City Manager Roger Campbell wrote he "used poor judgment in charging the
materials to the city in the first place."

Negotiations Continue

Maryville officials are continuing to try to negotiate an official
agreement on the resignation of Nichols, who served as police chief from
July 1, 1989, until he tendered his verbal resignation announced Friday to
Maryville Police Department personnel.

Capt. Greg Cooke is serving as interim chief until a new one is appointed.

According to Hensley, Nichols wants to pursue other career opportunities
but the city is involved in two lawsuits in which Nichols must give
depositions.

One is a federal lawsuit filed by Steve Oliveira alleging violation of his
constitutional rights. The other is a suit alleging false arrest filed by
Avais Hodge against the city of Maryville and two detectives.

"We're going to need a lot of his time in the months ahead," Hensley said.

Nichols announced in October, 2001, he would retire in October this year.
He would have stayed on three months to be available in transition through
Dec. 31, Hensley said.

While Nichols would like to leave immediately, according to city officials,
the city needs him to be available for depositions for the upcoming
lawsuits and, if necessary, the trials. Hensley said he hopes the suits
will be over within a year.

"We are trying to work it out so it is a win-win situation for both
parties," Hensley said.

While Nichols could take another job, he would have to be available for the
suits.

Three Days And Out

The announcement by the city manager to the police department that Nichols
was no longer chief came three days after the May 7 Maryville City Council
meeting. At the meeting, the two men had a public disagreement over the
allocation of city drug fund money.

Nichols said he was out of the loop on a plan suggested by Circuit Court
Judge Kelly Thomas to use city drug funds to finance the drug court, which
serves to help individuals get off drugs and alcohol through treatment.

Nichols said the drug funds could only be administered with the permission
of the chief law enforcement officer. City attorney David Black said the
council is the fiscal agent for the city and has the ultimate authority.

Hensley said he was also out of the loop because Nichols had not brought up
the issue with him. Nichols said one of the assistant city managers was
told of the problem the day before and that Hensley had told him to work
through the assistant.

To this Hensley replied "Oh, really."

Nichols was to work with Mayor Steve West on the issue, but gave his verbal
resignation before that could happen, according to city officials.

The city's drug fund is accumulated by fines and other money collected from
convicted drug offenders.

John Tate, city director of finance, said Tuesday that mandatory city
audits completed by independent auditors have not found any improper use of
the drug fund money.

"There's no indication of any irregularities or funds being spent
improperly," Tate said. "Our external auditors have never led us to believe
there's any type of problems with the drug fund or any other funds."