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Adams to Receive Severance Pay

By Theresa-Marie Wilson

Heated meetings have become a familiar setting in Arroyo Grande City Council Chambers. The majority of the public who spoke during a recent special meeting held by the Arroyo Grande City Council to determine whether or not to negotiate a settlement with former City Manager Steve Adams expressed confusion over the issue.
The lack of clarity surrounded whether Adams resigned following an investigation of questionable conduct with a subordinate in July of last year or whether he was fired. The later would leave taxpayers footing the bill.
Following a special meeting the week prior and a closed session during its regular meeting last Tuesday, an agreement was reached with Adams, who asked for a six-month severance package on Dec. 29. The payout comes to $71,000 for about four months of pay with benefits. Adams had asked for $107,000 based on his annual salary of $157,294 plus benefits.
The council’s decision came just the day before the Jan. 28 deadline Adams’ lawyers had given the city to opt to pay the severance.
Last October 1, Adams said he would resign from the position he had held for 14 years until a replacement city manager was hired, which would take an estimated six months.
In a statement released in early October, Adams said, “My resignation will become effective once my replacement has been hired and starts work. Therefore, I intend to remain in my position throughout the recruitment process in order to ensure a smooth transition and enable me to complete a number of important efforts under way.”
In November, Adams was placed on paid administrative leave until Interim City Manager Bob McFall came on board Jan. 13. An independent investigation did not find Adams guilty of any policy violations.
Adams and his attorney, Roger Frederickson, claimed that the council jumped the gun when accepting his resignation and, in fact, fired him.
“Why you didn’t make sure there was a letter of resignation and a signed one, I don’t know,” Patti Welsh told the council during a special meeting held Jan. 22. “To have an attorney back there, during the meeting, not looking out for the citizens. You are not supposed to look out for the council; you are supposed to be looking out for the citizens. To put us in this position, not appreciated.”
Other speakers called for attorney Tim Carmel’s resignation for not ensuring the resignation was properly handled while others blamed the council—three of whom were on the council during closed session meetings surrounding Adams’ resignation and replacement.
“The responsibility is yours legally,” said resident Otis Page. “You are the executive committee of this city. We know you will do the right thing for the city in this matter.”
At that same meeting, one resident called for an end to what Adams has gone through..
“I can not believe that we have arrived at this particular point,” said Rudy Xavier. “It is extremely distressing. It is incomprehensible to me that we have arrived at this situation. It is primarily because we have forced the issue both from the public and the council. We have taken this man through hell. We have taken everything away from him.”
At the close of that meeting, the council said that they would pursue an agreement with Adams.
“City council has authorized staff to pursue a resolution in the matter of the Steve Adams severance pay request,” McFall said.
During Tuesday’s regular meeting, the council voted unanimously to settle potential litigation with Adams.

“The council heard and considered the comments made throughout the past months from members of the public, and we appreciate that people of various different opinions came and offered their thoughts and concerns,” Hill said. “We took that into closed session and the deliberation process and along with the totality of the circumstances which included previous actions and matters of law that we have to consider, contract requirements and so forth, and Adams previous service to the community. I think we came to a carefully considered solution considering all of these facts, and what we thought was in the best interest of the community, the employees and the city going forward.”

Hill went on to say that “there were lessons to be learned” and that city policies would be reviewed and necessary changes made.

“It is time to move forward with the exciting business of the city,” Hill said.

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