Adams gets $71,000 settlement from Arroyo Grande

January 28, 2015
Steve Adams

Steve Adams

Threatened by a potential lawsuit, the Arroyo Grand City Council agreed to issue ousted city manager Steve Adams a settlement of more than $71,000, but the council did not meet all of his demands.

Late last year, Adams’s attorney sent a letter to the city demanding that the council award his client six months in severance pay, including salary and benefits. The demand amounted to about $107,000, and Adams’s attorney gave the city until Wednesday to respond.

On Tuesday night, the council met in closed session to discuss the matter. After the hearing, the city disclosed that it had reached a $71,073 cash settlement with Adams.

The settlement equates to about four months of total compensation for Adams, but it does not include any of the benefits he requested. In the December letter, Adams’s attorney asked the city to compensate his client with a benefits package that included the equivalent of six months of pension contributions.

Adams announced his resignation from Arroyo Grande on Oct. 1, after being the focal point of a summer-long sex scandal. In his letter of resignation, Adams stated that his departure from the city would take effect when his replacement began work.

The council placed Adams on administrative leave in November, and he received pay and benefits until the interim city manager took over on Jan. 14. While Adams was on paid leave, though, he claimed the council fired him.

Adams’s contract allowed him to receive severance pay if the council fired him without cause. But, he was not eligible for the severance if he chose to resign.



  1. AGDUDE says:

    AG IS Paying this 71 K Because of KB, Arlow Guthrie,& Browny Button..

    Red Clowns Noses All Around Better clean house .. then the people will be free of stupidity!

    The Point Of this is Check Peoples Background.. the type of job they have has a direct connection to the quality of the person… or by all means pick a house wife , or what ever …

    better yet Maybe all the city seats filled with Ladies Come to think of it … ”

    US” Men have made a Mess of things!!!!!! …in the city of AG … just … Quality people for God’s sake ..

    (0) 0 Total Votes - 0 up - 0 down
  2. AGDUDE says:

    Myself I think I would of late Adam’s sue so that he could relive his stupidity all over again ..

    I’m guessing he will need that added income , when he leaves the area , you know Dog catchers do not make allot coin man..

    I do think KB is the #2 Dummy In the City.. who is buying her tickets for the jerry “Curl” aka , browny fund raiser you know she is moving on up.. say does anyone know if she brought Lenny the cake with the saw in it yet?? ..

    Wow AG has Some really Smart People Running the Show..

    (0) 0 Total Votes - 0 up - 0 down
  3. LameCommenter says:

    While this payout is very distasteful and repugnant, it beats out two things that could have come from a protracted fight…..a Lisa Chitty quarter-mil sized court victory, and more importantly, beats out PAYING MORE MONEY TO CARMEL FOR THE FIGHT.

    The U.S. Poison Control Center gives two methods to rid your stomach of accidental poisoning, 1): place a finger in back of throat, and, 2): read Carmel’s city legal affairs billings in detail.

    (8) 10 Total Votes - 9 up - 1 down
    • agag1 says:

      Without a doubt, Carmel needs to go.
      Without Ferrara and Adams things are better,
      but Carmel is toxic having been associated with the others for far too long.

      (2) 4 Total Votes - 3 up - 1 down
  4. achillesheal says:

    Government isn’t even competent enough to sever ties to an employee who “resigns” amidst scandal without having to pay him the equivalent of one-year’s wage for many households as a parting gift.

    Remember this the next time we are asked to voluntarily raise our own taxes.

    (5) 11 Total Votes - 8 up - 3 down
    • agag1 says:

      Remember this the next time you vote!

      Sure hope you’re reading this KB & Guthrie.

      (6) 12 Total Votes - 9 up - 3 down
  5. agag1 says:

    A good name is more desirable than great riches;
    to be esteemed is better than silver or gold.

    – Proverbs 22:1 (NIV)

    (12) 16 Total Votes - 14 up - 2 down
    • bischbubba says:

      Who in the world would give that a thumbs down?

      (-1) 1 Total Votes - 0 up - 1 down
  6. ccmom says:

    I commented on another site that I found this payout disgraceful and a wasteful way to reward bad behavior. There are still people out there that fail to see the wrong doings of S.A. I don’t care what he does in his personal life.. And I get it that the city didn’t find that he did anything LEGALLY wrong, but ethically and morally he is certainly in the wrong. Anyone who cannot see that must have the same set of despicable, dishonest values,

    (12) 18 Total Votes - 15 up - 3 down
  7. JB Bronson says:

    What a prick. Right in the middle of Hill, Gibson, Ferrara, App, Blank, Edge…

    (30) 42 Total Votes - 36 up - 6 down
  8. TaxMeAgain says:

    Well, here’s another example of a guy doing the wrong thing with the wrong people’s money.


    (24) 30 Total Votes - 27 up - 3 down
  9. Pelican1 says:

    $71,000.00 up in smoke….poof!
    What exactly was this for? Pain and suffering?
    Seems to me the spouses and the citizens suffered the most pain and suffering.
    Breach of contract? Seems to me that Steve first violated his contract by using City Hall to have an Illicit affair.
    What about the cost of the investigation? WHO paid for that? Who orchestrated the cover-up?
    Why was he REWARDED for moral turpitude????? Why must we pay for these morally bankrupt public officials to just “go away?” It happens time and time again.
    Lets stop!

    (46) 54 Total Votes - 50 up - 4 down
    • agag1 says:

      The next council election is a mere two years away.

      KB and Guthrie will suffer at the ballot box based on their decisions regarding Adams.

      Until then we should support Hill and Harmon, as they have been elected to a council with an approval rating of next to nothing.

      (21) 29 Total Votes - 25 up - 4 down
      • MaryMalone says:

        KB will likely go the way of the other blond, scandal-laden, bobble-head, knee-pad tottin’, wannabe, low-level polliticians in our county…she will run for County Supervisor, backed by Adam Hill.

        (5) 13 Total Votes - 9 up - 4 down
        • MajorityFan says:

          I didn’t hear about Lynn Compton stepping down! I thought she would make it at last 6 months before she realized she was in over her head.

          (-6) 12 Total Votes - 3 up - 9 down
          • kayaknut says:

            Oh gee a joke, hahahaha, watch out Laugh Factory, we have your next headliner….

            (7) 9 Total Votes - 8 up - 1 down

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