Professional Documents
Culture Documents
Lakeway City Manager Julie Oakley Lawsuit
Lakeway City Manager Julie Oakley Lawsuit
Velva L. Price
District Clerk
Travis Count
D-1-GN-22-002721 D-1-GN-22-0027y21
N0_ Ruben Tamez
"City Manager"), along with its present Mayor, THOMAS G. KILGORE, and certain other
Plaintiff, on behalf of himself and other Class Members, seeks entry of a Declaratory
Judgment (or several Declaratory Judgments) that the Defendants have, each and every one,
acting separately and in concert with other Defendants, violated (by ignoring, evading,
deceiving, attempting to eliminate, and accepting Defendant Oakley's "sham" compliance with)
a certain requirement of the Lakeway City Charter (the "Charter"); and that there was a
conspiracy with and among the most recent two Lakeway Mayors and other members and former
I
members of the Lakeway City Council (collectively the "Officeholders") who held their offices
during the relevant time period to violate, evade, conceal, or to allow an ongoing violation of,
mentioned City Manager, Mayors and Councilmembers, which intent and actions
were apparently intended and planned to ignore, evade, or allow continuation of
(2) That Oakley has never been or became a resident of Lakeway (as
that term is legally defined and applied in Texas laws and in Texas courts);
Manager and the Elected Officials either planned themselves how to initiate or
continue Oakley's appointment and employment as City Manager despite the fact
that she has never complied with the Residency Requirement, or were aware of
the coordinated efforts of the Defendants and Elected Officials to do that and
failed to take any effort whatsoever to stop, oppose or expose that unlawful
effort;
City of Lakeway and Julie Oakley for the Position of City Manager" (the
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City Council), and also sigled on that sanle day by Oakley, is void (or voidable)
and unenforceable by any party, due to its failure to require Oakley to become
a resident of the City within a reasonable period of time, and due to Oakley's
(5) That the purported City Manager and the present Mayor and
other Councilmembers violated the Charter and they encouraged, assisted and
approved the Charter violation and the evasion of the Residency Requirement in
the Charter, as described above, so that each Defendant currently holding office
In support of the above-described claims and the resulting causes of action, the Plaintifi
would respectfully show the Court the following:
II. Discovery
Plaintifl' intends to conduct discovery under Level 3 (Discovery Control Plan -
By
Order), as specified in Rule 190.4, Texas Rules of Civil Procedure.
III. Pa_rties
A. PLAINTIFF( S)
I. Individual
in his family's homestead in the City of Lakeway, in Travis County, Texas. Pursuant to Section
30.014, Texas Civil Practices and Remedies Code, the following information is provided: The
last three numbers of the Plaintiff's driver's license number are "XXXXX460"; and the last three
The above-named Plaintifi' files this suit as a representative of All Residents (or,
alternatively, A11 Voters, or A11 Taxpayers, or all of the above) within the City of Lakeway as a
Class Action, pursuant to the applicable provisions of Rule 42, Texas Rules of Civil Procedure,
and subject to the factors and considerations discussed below.
(1) The population of the City of Lakeway, Texas, was counted by the
United States Census Bureau, at 19,189 residents in the 2020 Census. That
number of persons as a class is so numerous that joinder of all members into this
lawsuit is impracticable.
(2) The questions of law and fact raised in this lawsuit are common to
(3) The claims of the representative Plaintifi' named above are typical
of and identical to the claims or potential claims of all members of the class who
care whether their local elected and appointed officials comply with existing
others in the community, is/are interested and concerned about the failure of the
elected and appointed officials of the City of Lakeway to recognize and obey their
obligation and duty to follow applicable existing laws, carry out their legal duties
pursuant to their sworn oaths of office, comply with the clearly stated will of the
voters, and tell the truth and demonstrate leadership and integrity in public forums
and in legally shielded "executive sessions" that preceded all public and recorded
votes by the two Mayors and the various Councilmembers to appoint and hire
Oakley to serve as City Manager, despite her never meeting the Residency
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Requirement in any manner other than a ridiculous and transparent sham and
series of attempts at deception. In pursuing the claims of this lawsuit, the
representative Plaintifi will fairly and adequately protect the identical interests of
the class members offended by the lack of concern by Defendants for the
Residency Requirement, the intentional skirting of the Charter mandate and the
landslide vote of Lakeway voters supporting the Residency Requirement during
the same time period that Defendants were avoiding, skirting and Violating it, and
the elected Mayors (2) and Councilmembers (approximately a dozen) were acting
in an active conspiracy with Defendant Oakley to facilitate violation of the
the above-stated wrongs within the rotten core of Lakeway's local government
culture is unmatched in quality and intensity of effort and cannot be credibly
members not parties to the adjudications or substantially impair or impede their ability to
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(2) the party or parties opposing or expected to oppose the class has
acted or refilsed to act on grounds generally applicable to the class, thereby making
appropriate final injunctive relief or corresponding declaratory relief with respect to the
class as a whole; or
(3) the questions of law or fact common to the members of the class
predominate over any questions afiecting only individual members, and a class action is
superior to other available methods for the fair and efficient adjudication of the
(B) the extent and nature of any litigation concerning the controversy
County, Texas);
(i.e., immediately following answer(s) being filed on behalf of the Defendant parties named
below) of whether the Court will certify this lawsuit as a Class Action, and if so, Plaintiff seeks
entry of an Order, under TRCP 42(b) and 42(c) that this lawsuit is certified as a Class Action,
with definition of the class and definition of the class claims or issues, and appointment of class
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Government Code, and may be lawfillly served with process, according to Sec. 17.024(b), Texas
Civil Practices & Remedies Code, by citation delivered to the City Secretary, JO ANN
TOUCHSTONE, at the Lakeway City Hall, 1102 Lohnnns Crossing Road, Lakeway, Texas
(78734).
2. JULIE J. OAKLEY (hereinafter "Oakley" or "City Manager") is an individual
who -resides in Bumet County, Texas, at 116 Combs Alley, Spicewood, Texas (78669), and may
City of Lakeway (but, due to the rmnagement structure chosen by Lakeway in its Charter,
actually has approximately the same legal duties, authority and responsibilities of every
Councilmember, but as Mayor is designated to preside over meetings of the City Council and
has certain additional ceremonial duties as the City's designated individual representative)
is
an individual who resides in the City of Lakeway, Travis County, Texas, at 925 Electra,
Lakeway, Texas (78734), and may be served with process by citation personally served at that
location.
Pro Tem of the City of Lakeway (but, due to the management structure chosen by Lakeway in its
Charter, actually has approximately the same legal duties, authority and responsibilities of every
Councilmember, but as Mayor Pro Tem is desigiated to perform the above described additional
responsibilities of the Mayor if the Mayor is absent or unable to perforrn those additional
fimctions)
is an individual who resides in the City of Lakeway, Travis County, Texas, at 205 El
Rio Drive, Lakeway, Texas (78734), and may be served with process by citation personally
a present LakewayCouncil-
member
is an individual who resides in the City of Lakeway, Travis County, Texas, at 934
7
Vanguard Street, Lakeway, Texas (78734), and may be served with process by citation
is an
individual who resides in the City of Lakeway, Travis County, Texas, at 313 Camino Arbolago,
Lakeway, Texas (78734), and may be served with process by citation personally served at that
location.
and Councilmembers KELLY BRYNTESON and JENNIFER SZIMANSKI, who won election
to their present positions on the Lakeway City Council in the election conducted on May 2,
2022, are n_ot included as Defendants in this action, and Plaintifi' is not seeking a declaration that
any of those individuals forfeited their position as an elected ofiicial serving the City of
Lakeway, because it does not appear that any of those individuals had any knowledge of or
participated in any way in the unlawfill activities of the City of Lakeway or its City Council or
its City Manager that form the basis of this lawsuit]
lll. Claim for Relief Sought
Pursuant to Rule 47, Texas Rules for Civil Procedure, Plaintiff would show the Court and
the Defendants named above the following:
(a) Plaintiff intends to show the Court by credible evidence that Defendants created a
plan to Violate, and then violated, and continue today to Violate the Second Requirement of
Section 4.01 of the City Charter, which reads, "The City Manager, when chosen, need not be a
resident of the City, but is expected t0 reside within the City within a reasonable period of time
(b) Plaintiff through this lawsuit will seek entry of a Declaratory Judgment (or, more
whose rights, status, or other legal relations are affected by a statute, municipal ordinance,
contract, or franchise may have determined any question of construction or validity arising
under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of
rights, status, or other legal relations thereunder." (emphasis added) Accordingly, except for
the statutory attorney's fees claim described below, Plaintifi seeks through this action only
non-monetary relief.
(c) Plaintiff seeks to have the Court declare that the hiring of Oakley as City Manager
was and remains in Violation of the Charter's Second Requirement (Residency); the Employment
Agreement was void ab initio (fiom its inception), or voidable; the Manager, Mayors and
Councilmembers acted in an unlawfiil conspiracy to violate, ignore, evade, scam, or change the
Residency Requirement; Oakley has never been or became a Lakeway resident, notwithstanding
her deceptive, dishonest and illegal efforts (including registering to vote fiom her "sham"
Lakeway apartment address) to try to shore up her continued claim that she is now a resident of
Lakeway, even though she actually rennins a resident of Spicewood, Bumet County, Texas; and
that all who were knowledgeable of supportive of, and contributed to the violation of the
Residency Requirement have forfeited their elective and appointive ofl'lces held in Lakeway city
(d) Plaintifi seeks recovery of Plaintiff's reasonable and necessary attomey's fees
required for the successfiil prosecution of the legal claims and cause(s) of action stated herein, as
are found equitable and just by the Court, pursuant to Section 37.009, Texas Civil Practices and
Remedies Code.
IV- Venue
Each of the events, acts and practices alleged herein occurred in or were performed or
committed in Travis County, except when indicated otherwise. The local law
the lakeway
City Charter
that is the subject of this lawsuit governs the municipality of the City of Lakeway,
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Texas, that is entirely located within Travis County, Texas. The contract that is the subject of
this lawsuit
City Manager of the City of Lakeway was negotiated and executed in Travis County, and it is
also performable in Travis County. Venue is proper in Travis County, Texas, pursuant to
Sections 15.001, 15.002 and 15.035, Texas Civil Practices and Remedies Code.
V. Jurisdiction
The purpose of this lawsuit is to establish, through entry of a declaratory judgment (or a
series of declaratory judgments), subject to all terms and provisions of the Texas Uniform
Declaratory Judgments Act (Sections 37.001 et seq., Texas Civil Practices & Remedies Code),
that a blatant and intentional Violation (hereinafier the "Violation") of the City Charter of the
City of Lakeway occurred, and that the Violation was the result of an unlawfill conspiracy
among and involving numerous individuals holding the ofiices of Mayor and Councilmember,
all of whom had taken oaths of oflice pledging to uphold the laws (including the specific one
that they violated and conspired to violate, as described below) through actions contemplated,
proposed, approved and taken by the named individuals, acting in their elected or appointed
offices of public trust, to make the Violation occur, and then they conspired to make the
Violation successful.
1. Laws Governing Operation of City of Lakeway. Since the approval by its voters
in 1990 of its present City Charter (hereinafter the "Charter"), and subsequent amendments duly
approved by its voters in following years, the City of Lakeway has existed and operated as a
Home-Rule Municipality, under applicable provisions of the Texas Constitution, the Texas Local
Government Code, the Lakeway City Charter, and various Lakeway City Ordinances assembled
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Municipality [see Sections 1.005(2) and 5.004, Texas Local Government Code], following the
(B) The City of Lakeway elected to operate under the City Manager form of
(C) The business functions of the City of Lakeway are organized and operated
nmch like any comparably-sized private business enterprise. The Lakeway City Manager
fimctions as the Chief Executive Officer (CEO) of the city government, hired and authorized to
do so by the Lakeway City Council, which functions by law as the city's Board of Directors,
elected by the Lakeway voters (its shareholders) to function in that capacity on behalf of the
(D) According to the "City Manager's Ofiice" page of the Official Website of
the City of Lakeway:
"In accordance with the Lakeway City Charter, the City of Lakeway operates as a
council-manager form of government. The mayor and six councilmembers are
elected oflicials and serve as the legislative body of the city. The city manager is
responsible for the proper administration of all City affairs. The city manager
and assistant city manager work closely with the City Council and the department
directors to provide the highest level ofservicefor the residents and businesses of
Lakeway. Julie Oakley is the City Manager for the City of Lakeway. She
oversees all departments and staff members. The City Manager reports directly
to the City Council and administers the day-to-day affairs of the city,
implementing policies established by Council and ensuring the city operates in a
fiscally responsible manner."
[https://www.lakeway-tx.gov/664/City-Managers-Office, last viewed 06/13/2022]
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"
Charter with respect to city employment are satisfied. (emphasis added)
[Second Requirement] "The City Manager, when chosen, need not be a resident
of the City, but is expected to reside within
"
the City within a reasonable period
of time after accepting appointment. (emphasis added)
It is the above quoted Second Requirement (hereinafter called the "Residency Requirement") that
contain any comparable or parallel provision or language like the "qualifications" section above.
That status changed in I990, when its voters approved the present City Charter that changed the
Manager
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B. Accomplishments at the City of Lakeway
(1) "Julie began her career with the City of Lakeway in 2010 as
Finance Director and then took over the role of Assistant City Manager. In late 2019, she
was named Interim City Manager and soon offered the City Manager position. She is a
Certified Public Accountant and member of the Texas Society of Certified Public
Accountants. Julie was appointed by Texas Governor Rick Perry and Governor Greg
Abbott to the Texas Municipal Retirement System Board of Trustees and served in that
"
capacity from 2010 to 2020.
[https://www.lakeway-tx.gov/664/City-Managers-Wfice, last viewed 06/13/2022]
(2) "During her time so far with the City of Lakeway, Julie
implemented the regional household hazardous waste center and developed partnerships
between various local government entities in Western Travis County. She developed the
first Capital Improvement Plan for the City of Lakeway. She also oversaw the
development of the city's first Thoroughfare Plan, and a new Comprehensive Plan
approved in 2020. Additionally, during her tenure as Finance Director, the bond rating
increased, along with the city receiving stellar financial audits."
([https://www.lakeway-tx.gov/664/City-Managers-Oflice, last viewed 06/13/2022]
C. Acting City Manager. On August 19, 2019, Steve Jones resigned as City
Manager of Lakeway. [8/19/2019 CC Minutes at Item 2] Council voted and accepted his
resignation. Id. Councilmember Mastrangelo moved to appoint Julie Oakley as Acting City
Manager and it was passed unanimously. Id. Councilmember Kumar moved to have council
direct the Mayor and the Mayor Pro Tem take any action necessary to find an interim or
permanent City Manager to replace Steve Jones and the motion passed unanimously. Id.
and in executive session a discussion was held regarding appointing an Interim City Manager.
[9/9/2019 CC Minutes at Item 8] The results of that executive session were reported in the
Minutes as follows:
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"The Council reconvened in open session and Councilmember Higginbotham
moved to approve the appointment of Julie Oakley as Interim City Manager.
Councilmember Vance seconded and the motion passed unanimously. Mayor Pro
Tem Higginbotham moved to approve a ten percent stipend to the Interim City
Manager for the duration of her tenure as Acting City Manager and Interim City
Manager. Councilmember Kumar seconded and the motion passed unanimously."
Id.
E. Cig Manager.
(1) Permanent Position Offered. On November 18, 2019, City Council
convened into an Executive Session to deliberate the appointment and duties of the City Manager
position. [11/18/2019 CC Minutes at Item 26] Following the Executive Session, the City Council
unanimously approved a motion made to ofi'er Julie Oakley the position of City Manager and
authorize Mayor Cox to negotiate and execute an employment agreement inside the parameters
convening into and reconvening fiom Executive Session, "Councilmember Kumar moved to
allow Mayor Cox to enter into contract offering Julie Oakley the City Manager position as per
the contract shared with the city council. Mayor Pro Tem Higginbotham seconded and the motion
passed unanimously." [1/21/2020 CC Minutes at item 32] [NOTE2 When Plaintifi' recently
was noted that the effective date of the Employment Agreement approved by the City Council
entitled Employment Agreement Between The City of Lakeway and Julie Oakley for the Position
of City Manager (the "Employment Agreement") was signed by Mayor Sandy Cox on behalf of
the City, and it was also signed by Oakley.
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6. Residency Requirement Not Relevant to Oakley's Prior City Employment, Then
as Finance Director and Assistant City Manager, it was a fact well-known by all of her colleagues
in Lakeway city government
married to Judge James N. Oakley ("Judge Oakley"), the County Judge of Burnet County, and
that the Oakley family (including Julie, James, and a combined family of five children) resided at
II6 Combs Alley, in the town of Spicewood, in Burnet County (the "Oakley Residence"),
satisfying the statutory requirement that Judge Oakley be a resident of Burnet County while
holding the position of County Judge of Burnet County. For those years, there was no question
that every one of Lakeway's leaders and elected officials knew that Julie Oakley did 1g live in
the City of Lakeway, and that fact was understandably of no concern to anyone, because as
Finance Director and Assistant City Manager, there was no legal requirement that Julie Oakley
B. It is assumed by Plaintiff that Oakley did not ever hide or mislead anyone
regarding where she resided, and it is also assumed by Plaintifl' that Oakley did not mislead or
attempt to mislead anyone employed by the City of Lakeway or either of the Mayors or any of the
Councilmembers who served in their positions while Oakley served as Assistant City Manager,
Acting City Manager or Interim City Manager about the fact that Julie Oakley had not resided in
the City of Lakeway, notwithstanding the fact that the Charter contains that Residency
according to all available evidence, sigfificant discussion by and between Oakley and the two
Mayors and the various Councilmembers who held their offices during the employment
transactions described herein (including Mayor Kilgore and Councilmembers who were sworn
15
into their respective offices afier the November 2020 city election) about the outstanding
qualifications, skills and job perforrmnce demonstrated by Oakley during her decade of
employment with the City of Lakeway as Finance Director and Assistant City Manager. There
can be no question whatsoever that the First Requirement (of two) in Section 4.01 of the City
Charter for the position of City Manager was well-explored by those responsible for hiring the
new City Manager following the 2019 resigiation of Steve Jones fiom that position.
D. From the inforrmtion available so far to Plaintiff, at the three City Council
meetings where "hiring decisions" were rmde (to employ Oakley as Acting City Manager, as
Interim City Manager, and to make her hire permanent as the City Manager), no discussion
occurred
Section 4.01 of the City Charter for the City Manager (the "Residency Requirement").
meeting as the Council approved the employment contract with Julie Oakley [on January 21,
2020, see above paragraph 5(E)(2)], the Council appointed a committee to review the City
Charter. Id. at Item 6. Also See Resolution N0. 2020-01-21-01 creating the 2020 Charter Review
Committee. That action was taken as contemplated in the original Charter, as follows:
B. Special Election Set for Proposed Charter Revisions. On July 6, 2020, City
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Council voted, based on the recommendations of the Charter Review Committee, to call a special
election to amend the Charter, and the proposed revisions included "Proposition D" to remove
fiom the Charter the residency requirement for City Manager. [7/6/2020 CC Minutes at Item 6]
Councilmember Kumar moved to approve the ballot propositions discussed and ageed upon, and
the motion passed unanimously. Id. Also See "Proposed Ballot Propositions City of Lakeway
"
Charter Amendment Election November 2020.
Residency Requirement for City Manager. On November 3, 2020, an election was held for the
for Proposition D and 64.1% voting against. See "All But Two Lakeway Ballot Propositions
Pass, Community Impact 11/04/2020. Also See "City of Lakeway Resolution No. 2020-11-18-01
"
at Proposition D.
as City Manager.
A. Residency Requirement
(1) (a) Prior to the November 2020 referendum there was no report
through the City's publicity activities or in any news source that could located by Plaintifl'
of
even one word being uttered in a public meeting or forum about the existing requirement that the
City Manager reside in Lakeway within a "reasonable time" after being named to that position
and her final appointment as City Manager; no statement by the City Council about Oakley's
appointments being "subject to" the Charter residency requirement; no commitment by Oakley to
satisfy that aspect of her appointment requirement; and no process or timetable ever discussed in
the appointment process or in the Employment Agreement for Oakley to comply with the
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Residency Requirement; and not a single acknowledgment by any elected or appointed City
official of the existence of a need for Oakley to (ever) comply with the Residency Requirement.
requirement for the City Manager in the Employment Agreement finalized between the City of
Lakeway and Oakley was this language in its Section 3.05 (Compensation):
"City agrees to pay the City Manager an annual housing allowance of $ 1 5, 000. 00,
payable in 12 equal monthly installments. This housing allowance shall begin on
the first pay period following the execution by the City Manager of a lease on
residential property within the City limits, or upon closing on residential property
within the City limits. If the requirement that the City Manager must reside within
the City limits is revoked or eliminated, the City will cease paying the housing
allowance."
at 5313 Serene Hills Drive, Lakeway, Texas (the "Apartment Residence"). It is further believed
by Plaintifi' that Oakley never actually resided in that Apartment Residence (within the
meanings of that term found in the Texas Election Code and in the Texas Local Government
Code) prior to the filing of this lawsuit, and that the Apartment Residence described above served
as nothing more than a subterfiige
a sham residence
interested party into believing that Oakley had actually moved her residence fiom the Oakley
Residence that she shared with Judge Oakley and their combined five children fiom the time of
2020, to remove the residency requirement for the City Manager, the Violation by Oakley of that
selected by the City Council to serve as Interim City Manager), supported by the votes of that
Mayor (Sandy Cox) and the other members of the City Council then holding office, and
continued support by the votes of the next and present Mayor (Kilgore) and the members of the
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City Council holding office during his term
ignored and intentionally lefi unenforced that second qualification provision in the Charter
paragraph governing and restricting the hiring a new City Manager (the Residency Requirement),
or (even worse!) it appears that all involved parties concocted a plan (that failed) for how to
make the problem presented by the Residency Requirement vanish through the
referendum; however, in that regard, Plaintiff poses to the Court these proper, lawfill and
extremely relevant inquiries to be considered in its deliberations about whether the City Manager
(A) Was any aspect of the above described strategies (i.e., ignore the
way for City of Lakeway and its officials to address the Residency Requirement in
the Charter when making the decision to hire Oakley as City Manager?
(B) Were those strategies (ignore the Residency Requirement in selecting
intentional Charter violation with an intended goal (that failed) to evade or defeat
that person's office" clause of the Charter, are any of those Lakeway officials
involved in the nefarious misdeeds alleged in this petition still legally holding or
qualified to continue to hold their positions, or have all of those persons forfeited
their positions (without the necessity of a separate removal proceeding) under the
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(4) Meanwhile, Oakley continued to serve as Lakeway City Manager
notwithstanding the clear (if not forgotten and definitely not revoked) Residency Requirement.
Oakley continued to draw, prospectively and retroactively, the enhanced salary increases, plus
"Stipend" compensation, plus housing allowance and "local travel" allowance and other benefits
that the City Council approved for her; and there was still no public mention, by anyone involved
in the process whereby Oakley became the City Manager about her moving her residence (with or
without her spouse and/or with or without their five children) to Lakeway to comply with the
it be paid by the City of Lakeway to its new City Manager? For the uninformed, the word
"stipend" can mean one of many possible types of payments. As explained by financial writer
Robin Reshwan in her article entitled "Money: A Guide to Stipends" (U.S. News
July 27,
2020):
"A stipend is a fixed sum of money paid periodically for services or to defray
'
expenses, according to Merriam Webster.
"Indeedcom states that stipends are usually given when the job focuses on
training that primarily benefits the recipient rather than the employer.
Historically, stipends have been used in academia and some religious or nonprofit
organizations as customary ways to help out student researchers, teachers and
clergy with living and other basic expenses when working for little or no money.
You may also be familiar with the business travel stipend as a per diem to cover
meals or other daily expenses on business trips.
"Although stipends continue to be offered for living and travel expenses, their
application has expanded. A more creative range of stipends are used as 'fringe
benefits" or to offiset costs for an employee, intern, trainee, researcher or graduate
student. These perks are on the rise with employers looking to improve culture and
motivate workers during uncertain times.
"There are many ways an employer can use a stipend as a perk, benefit, incentive,
recruiting or retention tool. Stipends can be used to cover the costs of commuting,
meals, home office costs, insurance, wellness, living expenses, travel, cellphone or
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internet services, and training and professional development, according to
"
Haggier, a stipend management platform.
during a period of significant "turnover" in the top ranks of Lakeway stafl' positions. But it was
also sigfificant for the apparent introduction into Lakeway's finances of a new method of
City Manager (in addition to her salary, housing expense payment, a "local travel" monthly car
CPA license).
(3) lt was in Executive Session at that meeting that the City Council
discussed, and then afier reconvening to Open Session voted, appointing Acting City Manager
Julie Oakley to the position of Interim City Manager. "Councilmember Vance seconded and the
motion passed unanimously. Mayor Pro Tem Higginbotham moved to approve a ten percent
stipend to the Interim City Manager for the duration of tenure as Acting City Manager and
Interim City Manager. Councilmember Kumar seconded and the motion passed unanimously."
amendment fiom the Charter, and approximately three months following execution of the
Employment Ageement), the City Council approved a $10,000.00 "Stipend" payment to Oakley:
"Councilmember Kumar moved to approve a 2 percent raise and one time stipend of $10, 000. 00
to the City Manager. Councilmember Howell seconded and the motion passed unanimously"
A. State Law Regarding Residency and Voting: For purposes of voting, the
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"Sec. 1.015. RESIDENCE. (a) In this code, 'residence' means domicile, that is,
one 's home and fixed place of habitation to which one intends to return after
any temporary absence. (emphasis added)
(b) A person may not establish residence for the purpose of influencing the
outcome of a certain election.
(c) A person does not lose the person 's residence by leaving the person 's home to
go to another place for temporary purposes only.
(d) A person does not acquire a residence in a place to which the person has
come for temporary purposes only and without the intention of making that
place the person 's home. (emphasis added)
(e) A person who is an inmate in a penal institution or who is an involuntary
inmate in a hospital or eleemosynary institution does not, while an inmate, acquire
residence at the place where the institution is located.
0) A person may not establish a residence at any place the person has not
inhabited A person may not designate a previous residence as a home and fixed
place of habitation unless the person inhabits the place at the time of designation
and intends to remain." (emphasis added)
B. On May l, 2021, Oakley changed her voter registration fiom the Oakley
Residence in Burnet County to the Apartment Residence in Lakeway referenced above. That
action (change of voting address) occurred over 15 months following execution by the City's
then-Mayor Cox and Oakley of the Employment Agreement, and over 17 months following the
Effective Date of the Employment Agreement (alter the City Council had unanimously voted
afier execution of the Employment Agreement to make its terms retroactive to November 19,
2019, when the City Council voted unanimously to make Oakey the Interim City Manager), and
less than two weeks after the City Council approved the one-time Stipend payment of $10,000.00
to Oakley.
C. Plaintiff's research indicates that Oakley has never actually voted in any
election where she would have been eligible to vote subsequent to her moving her
registration from Burnet County to her purported home in Travis County (the Apartment
Residence in Lakeway).
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D. [ NOTE, however, that the Burnet County voting records Show that Oakley
voted on February 22, 2020
one month after she signed the Employment Agreement
Board of a change of mailing address or telephone number within 3O days of the effective date of
the change.
C. On or before February 28, 2022, Oakley renewed and extended for a period
of one year her CPA license with the TSBPA, continuing to list her address as 116 Combs Alley,
(78669), which is, in fact, the homestead and residence that she has actually occupied and shared
during those years with her husband, Burnet County Judge James N. Oakley, along with their five
children. Oakley has never notified the TSBPA of any change of her address to the Apartment
Address.
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B. [ NOTE: Interestingly, that sum ($6,000.00 annually, or $500.00 monthly)
would pay for a daily commute for Oakley between the Oakley Residence and the Apartment
Therefore, the automobile allowance paid by Lakeway for the City Manager's "local travel"
would almost exactly cover (at a 98% accuracy rate monthly) the calculated cost of Oakley's
daily/weekday commute segments between the Oakley Residence and the Apartment Residence. ]
private investigation service, Oakley drove her daily commute between the Oakley Residence and
the Apartment Residence in an Oakley-owned vehicle bearing Texas "vanity" license plates
labeling it as a vehicle of the Burnet County Judge James N. Oakley (husband of the City
Manager), and for the "local" travel segments of that daily commute (fiom the Apartment
Residence to Lakeway City Hall and back to the Apartment Residence) Oakley drove a different
Oakley-owned Volvo vehicle. That second vehicle retrained parked outside the Apartment
Residence every night observed, while Oakley drove the "County Judge"-tagged vehicle "home"
D. Of the several weekdays observed, Oakley never spent any night at the
Apartment Residence; in fact, Oakley was never observed, between her car-swaps described
above, spending over a few minutes inside the building where the Apartment Residence is
located.
accurately documented by, trained and experienced private investigators employed by a licensed
private investigation agency contracted by Plaintiff's attorney to perform such service, as shown
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12. The Employment Agreement is a Void or Voidable Act under the Doctrine of
Ultra Vires.
"The Latin term 'ultra vires,' in its proper sense, "denotes some act or
transaction on the part of a corporation which, although not unlawful or
contrary to public policy if done or executed by an individual, is yet beyond
the legitimate powers of the corporation as they are defined by the statutes
under which it is formed, or which are applicable to it, or by its charter or
incorporation papers." As to the exact nature of an ultra vires act, the decisions
are conflicting. Some courts regard an ultra Vires act as they would an illegal act,
while others regard it as a mere nullity. Still others regard it as perfectly valid and
binding unless the sovereign state sees fit to interfere. An act is said to be ultra
vires when it is not within the scope of the powers of the corporation to perform it
under any circumstances or for any purpose. An act is also sometimes said to be
ultra Vires with reference to the rights of certain parties, when the corporation is
not authorized to perform it without their consent, or with reference to some
specific purpose, when it is not authorimd to perform it for that purpose, although
fiilly within the scope of the general powers of the corporation, with the consent of
the parties interested or for some other purpose. "The Law on Ultra Vires Acts and
Contracts of Private Corporations," 14 Marq. L. Rev. 212 (1930)
4.01 of Iakeway City Charter for the hiring of a City Manager is:
"The City Manager, when chosen, need not be a resident of the City, but is
expected to reside within the City within a reasonable period of time after
accepting appointment." (emphasis added)
Residence Requirement and containing no requirement that Oakley comply with the Residency
Requirement
was an ultra Vires action by the City Council, purportedly acting under authority
granted to it by the City Charter to hire a City Manager but actually not complying With the terms
of that granted authority, thereby rendering the Employment Agreement either void ab initio or
voidable, depending, explains the Mack law treatise (see above), on the specific circumstances
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13. Forfeiture of Ofl'lce by Mayor and Councilmembers
Another Charter provision most definitely applicable to the present situation outlined in
this petition, and that is the applicability of the "Forfeiture of Office" provision to the actions of
the present Mayor (Kilgore) and all present Councilmembers Who have participated in the
conspiracy to subvert, ignore or nullify the Residence Requirement, and who have not acted to
cause the removal of Oakley as holding the appointed position of City Manager in violation of,
or ignoring that Oakley holds the position While not being in compliance, or avoiding having the
City enforce Oakley's compliance with the Residency Requirement or remove her from office.
Section 3.08 (Forfeiture of Office) of the Charter states:
Any elected official will forfeit office for any of the following reasons.' (a)
Failing to maintain any qualification of this Charter. (b) Violating any
provision of this Charter. (c) Conviction of a crime involving moral turpitude.
(d) Fails to attend one-half of the regularly scheduled Council meetings during
any consecutive six-month period. (emphasis added)
This "forfeiture of office" provision applies only now to Mayor Kilgore and the present
Councilmembers named as Defendants (Vance, Mastrangelo and Kunnr), because Mayor Cox
and the Councilmembers whose terms previously ended without reelection do not hold any office
l. Plaintiff (individually and as representative of the class when this lawsuit has been
certified as a Class Action) seeks entry of a Declaratory Judgment, pursuant to Section 37.004,
2. The specific issues on which Plaintiff will seek entry by the Court of a Declaratory
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Judgment are whether the following actions and activities by the City of Lakeway (acting through
its Mayors and Councilmembers) and its purported City Manager were in compliance with and
support of the Residency Requirement of the Charter, or whether they were instead performed
with the intention of subverting or violating the Residency Requirement of the Charter:
by and
B Did Oakley and the City of Lakeway comply with the Residency
Oakley was appointed by the Mayor and City Council to serve as City
become the City Manager a period of no more than six months (or, in the
date(s)?
D
I Was the Employment Agreement dated January 24, 2020, between the City
any party after that date under the doctrine of ultra vires, because the
without requiring her to comply with the Residency Requirement, and was
that apparent exhibition of hiring authority by the Mayor and City Council
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an improper and illegal act by those parties on behalf of the City, since the
City, and Oakley that she was appointed to or hired into the position of
City Manager without being required (ever) to comply with the Residency
Violation of all of those parties' sworn oaths of office to "uphold the City
Charter"?
F Was the conspiracy between Oakley, the Mayors and the Councilmembers
the City Charter and of the City officials' sworn oaths to uphold the City
Charter?
were the actions by Oakley to establish, and the acceptance and support by
Lakeway fimds to Oakley (in addition to her job salary) to pay rent on
Oakley's sham residence, and for a car allowance that apparently covered
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the expense of Oakley's secret daily commute to and fiom her actual
officials and a lawfiil and proper expenditure of public fiJnds fiom the
and unlawfiilly in Violating or subverting the Residency Requirement, or that the Defendants
entered into and effectuated a civil conspiracy for the Residency Requirement to be violated,
subverted or negated in connection with the selection and hiring of Oakley as Lakeway's City
Manager, then Plaintiff also seeks entry of a Declaratory Judgment that the actions of the present
Mayor (Kilgore) and the present Councilmembers in filrtherance of the prohibited activities
Kilgore and the existing Councilmembers of their elected positions, pursuant to Charter Section
4. Plaintiff seeks entry of judgment against the Defendants, jointly and severally, for
recovery of Plaintiffs reasonable and necessary attorney's fees incurred in investigating and
litigating this lawsuit. If the Court certifies this lawsuit as a Class Action, Plaintifi additionally
seeks recovery fiom Defendants for the sums of money required to properly notify the Class
Members about the litigation of the class matters raised and to pay the attorney's fees of the Class
Counsel appointed by the Court to represent the interests of the Members of the Class.
5. Plaintiff seeks entry ofjudgment for all taxable court costs incurred in this case.
For the reasons stated above, and afier citations are duly served on the Defendants, and the
Court has ruled on Plaintiffs request for certification by the Court of this lawsuit as a Class
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Action (subject to the conditions and requirements of T.R.C.P. 42), and following carefi11
consideration by the Court of the claims and causes of action raised in this lawsuit, and the
Court's determination of any contested factual matters, and the Court's review of the applicable
laws (found in the Texas Local Government Code, the Texas Elections Code, the Texas Civil
Practice & Remedies Code, and the Charter and Ordinances of the City of Lakeway), and the
careful consideration by the Court of the arguments of legal counsel representing the interests and
rights of the parties to this lawsuit, Plainfifi requests entry of a declaratory judgment (or a series
of declaratory judgments) determining all rmtters described in the above section and properly
raised under Section 37.004, Texas Civil Practices and Remedies Code. Plaintiff' also seeks entry
of judgment for recovery of Plaintifi"s reasonable and necessary attomey's fees, and for all
taxable court costs incurred by Plaintifi'. Plaintiff fithher seeks all additional and further relief to
which Plaintiff may be justly due, in law or equity, regarding the matters raised in this lawsuit
Respectfully submitted,
KIM D. BROWN, ATTORNEY, PLLC
P.O. Box 200027
Austin, Texas 78720-0027
(512) 263-7450 telephone
(512) 373-8604 fax
mailbox@brownlawyer.com
Attorney for Plaintifi'
ATTACHMENTS / ENCLOSURES:
PLAINTIFF'S VERIFICATION AFFIDAVIT
ROSTER OF EXHIBITS
KDB/LEVY-LAKEWAYWLEADINGS\
PLAINTIFF'S ORIGINAL PETITION 061422
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