06:17 PM CST on Monday, March 6, 2006

By Doug Miller / 11 News

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In the aftermath of Houston's city hall payroll scandal, the mayor pro tem announced Monday she is temporarily stepping down.

Carol Alvarado is leaving the pro tem's office pending the outcome of a grand jury investigation.

And now four employees face firing in connection with the City Hall investigation

Over the weekend, Mayor Pro Tem Carol Alvarado thought about Monday's news conference and talked to the mayor many times. Monday she walked out of the mayor's office at the mayor's side and announced she will temporarily leave the pro tem's post.

"I do not want to be the lightning rod for those who wish to take advantage of this situation in order to stimulate divisiveness on the council," said Alvarado.

"I intend to temporarily … step aside from the office of the mayor pro tem pending the outcome of the grand jury investigation," said Alvarado. "I did nothing improper and I've accepted responsibility."

Meanwhile, the mayor publicly confirmed what 11 News broke at noon, that all four of the employees who received those bonuses have now received letters saying the city intends to indefinitely suspend them. In plain English, that means the city wants to fire them.

"Employees in that office improperly used the delegation of signature authority by Mayor Pro Tem Carol Alvarado to obtain improper payments," said Mayor White. "Based on my reading of the 17-page synopsis of the report, I see no involvement with the mayor pro tem in this scheme to take the taxpayers' money."

All four of those employees are scheduled to appear at hearings Tuesday. That's basically a formality required under civil service laws. But those employees can appeal.

It is important to note that Alvarado will continue serving as a city councilmember. It's only the mayor pro tem's job that she's leaving.

"My hope is that she would be able to resume responsibilities in that role," said Mayor White. "I respect the fact she has taken responsibility and imposed consequences on herself. I anticipate there will be changes in taking out some responsibilities from the mayor pro tem's office."

Councilman Michael Berry, the vice mayor pro tem, will take over the mostly ceremonial post while a grand jury investigates.

The 17-page report will be forwarded to the Harris County District Attorney for possible criminal charges. Mayor White said that his hope is "there will be sure justice." The mayor also will issue a summary and overview of changes to procedures for compensation adjustments for city employees.