Adams gets $71,000 settlement from Arroyo Grande
January 28, 2015
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.