Gorayeb out as Sisters city manager

The question of whether or not Andrew Gorayeb would be returning to his position as city manager was finally answered at last Thursday's Sisters City Council meeting. Council voted 5-0 to accept Gorayeb's resignation effective immediately.

Gorayeb had been on paid administrative leave since February 25, after complaints were made by some City employees regarding conduct that was described only as not financial, physical, or sexual in nature.

Gorayeb will be receiving a severance payment of $92,042.88, equivalent to 12 months' pay, excluding any PERS payments (retirement for public employees). The City will pay the first 12 months of COBRA premiums for Gorayeb's personal and dependent health insurance coverage, which amounts to $21,888. (See page 23 for full accounting of costs.)

The City will provide a neutral letter in response to inquiries from Gorayeb's potential future employers, providing only his date of hire, date of separation, and beginning and ending wage. No other comments about him will be made.

The City will take no position on whether or not Gorayeb should be awarded unemployment compensation.

In exchange, Gorayeb released the City and all its representatives from any further claims, expenses, or compensation and agrees to not pursue litigation of any kind against the City or anyone connected to it.

One further stipulation prohibits City Council members from expressing to anyone any derogatory statements concerning Gorayeb. He, in turn, is prohibited from making derogatory statements about any City Council members.

Approval of the severance package passed on a 4-1 vote, with Councilor David Asson the sole "no" vote. He read a prepared statement to explain his dissent.

He stated that most of Council's deliberation time dealt with "concern for the well-being of a remarkable city staff, concern for the reputation of our city, and excess concern regarding the possibility of reprisal litigation."

He wrote, "In my opinion, the final decision was fashioned more on fear of consequences than on topic. The decision is excessive, harmful to our staff and our city, and just plain wrong.

"The circumstances that created this tremendous waste of resources and time must never be repeated. The payout for two manager transitions (Eileen Stein departed in 2013) could have funded many needy functions," Asson added.

Following that, Asson urged everyone to move on and get back to work on substantial projects on the drawing board.

Mayor Chris Frye read a prepared statement: "Based on the investigation report, the City Council approved and issued a disciplinary letter to former City Manager Gorayeb.

That discipline included a probationary period, periodic evaluations and management training.

Tonight the Council accepted Mr. Gorayeb's resignation and approved the severance and release agreement between the City and Mr. Gorayeb.

After considerable deliberation, the Council concluded this agreement is in the best interest of the city, including city staff, the residents and the business community.

The City Council intends to put this matter behind us, and focus on finding a new city manager and on addressing the many needs within the community without this matter as a further distraction."

Following the filing of the allegations, on the advice of City Attorney Steve Bryant, Frye hired an independent investigator, one of several recommended by CityCounty Insurance Services, the City's insurance provider. Her job was to interview all of the staff regarding the complaints of bullying and harassment by Gorayeb. At the completion of the investigation, a final report, with executive summary, was presented to the Council.

Councilor Andrea Blum on Sunday told The Nugget, that, though the council was not made aware of it until after the investigation, the investigator assured employees "that everything they said would be kept as confidential as possible."

Neither the Council, except for Frye, nor CIS had any contact with the attorney before she began her investigation.

"The findings did not indicate that our policies had been violated, but they were a violation of the encouraged conduct, which is to be courteous," Blum reported.

In Gorayeb's letter of resignation, he said, "I am greatly troubled by the disproportionately harsh discipline you have imposed on me due to your belief that I have acted 'at times' contrary to the city's 'Encouraged Conduct' policy."

The Council's imposed discipline - including a probationary period, management training and regular evaluations - he wrote, was "not a workable solution... Given the unreasonable disciplinary action you have taken... it is clear to me that some of our philosophical differences are simply too much to overcome. I am hereby resigning my employment, effective immediately."

When asked after the meeting why Gorayeb received such a generous severance package when he chose to resign, Frye responded, "We believed it was in the best interests of the City. Looking at all possibilities including possible litigation and associated costs, as well as staff time, we felt this package was the best way to go."

According to his contract, Gorayeb was entitled to one month of salary for each year of employment, which in his case was three years.

Because Council chose to take the disciplinary action, Bryant advised Council that this entire matter would remain a personnel issue, which keeps the results of the investigation private, not part of public record. (See related story, page 1.)

"I think we were influenced toward that conclusion by Bryant, with the help of CIS," said Asson on Sunday.

"We wanted protection of the employees and the report. We were not trying to protect Andrew," Blum explained on Sunday.

On Thursday evening, the mayor thanked the citizens for their patience with the lengthy process, stressing the importance of "handling the process as thoroughly as possible to avoid huge expenses." He said the Council based their decision on what they believed was best for the city.

At the close of the meeting Frye apologized to the public for not holding the special public meeting scheduled for Monday, April 25, after the Council's executive session. He cited a very stressful and upsetting executive session that had caused him to just "blank out on the special meeting."

City staff met last Friday morning with Asson and Council President Nancy Connolly to announce Gorayeb's resignation and read his resignation letter, discuss the intention to hire an interim city manager, and to answer any questions. Staff legally couldn't be notified of the decision prior to formal approval in the public meeting Thursday evening.

A total cost for the entire process is not yet available but it will likely total around $175,000 when the legal costs are added in.

When Frye was asked if Council was concerned about what the citizens' response would be to the severance package paid Gorayeb, he responded affirmatively.

"Yes, we were cognizant that some people might object to it. Our hope is that after explaining we acted in the best interests of Sisters, they will understand." 

The amount of money it has cost the City to settle this issue does in fact seem to be of great concern to some citizens, judging from comments posted on The Nugget Facebook page.

Supervisory staff at City Hall informed Council they would like to see an interim city manager hired as soon as possible. Blum and Asson both indicated they want to show visible support for the staff until the interim is found.

"Council want to take turns being there for the staff (at City Hall) but we need to find out what the staff would want," Blum said.