Eric Dargan, the former Chief Operating Officer of the city, has reportedly reached a tentative settlement with city officials that exceeds the severance he initially sought after his abrupt dismissal earlier this year.
Dargan’s attorney, Michael Conger, announced that the proposed settlement amounts to $146,000, representing more than the three months’ severance that Dargan aimed for following his unexpected termination in February.
Initially, Dargan was seeking approximately $115,000, which included benefits. Conger stated that a lawsuit could have been avoided if the city had fulfilled its obligation to pay the severance outlined in the employment offer letter signed by both Dargan and Mayor Todd Gloria.
The City Attorney’s Office has not confirmed the details of the settlement, stating it cannot comment on ongoing litigation. For the settlement to be finalized, the City Council will need to vote to approve it in an upcoming open session.
This vote will occur several months after Mayor Gloria’s initial announcement regarding Dargan’s departure. At that time, he asserted that the decision to eliminate the COO position was primarily to address a significant budget deficit facing the city.
However, subsequent developments took a different turn. Following Dargan’s dismissal, he filed a discrimination lawsuit against the city, claiming that Gloria reneged on his commitment to provide three months’ severance pay. In late March, Gloria’s office changed its narrative, stating that Dargan was “terminated for cause.”
This shift came amidst growing criticism from several city council members and the leader of the city’s largest union regarding the city’s handling of a $258 million budget deficit. Additionally, rumors circulated alleging that Dargan had dozed off during key meetings.
When questioned about the termination in February, Mayor Gloria had described Dargan as “a good man” with whom he enjoyed working, emphasizing that the decision was made for financial reasons.
Weeks later, Dargan filed a lawsuit alleging discrimination. Conger maintains that Dargan never received any formal performance review during his over two years in the role, much less a negative evaluation. He contended that the city invented reasons for Dargan’s termination in the wake of his departure.
Conger stated, “We believe the city is fabricating facts to justify its discrimination,” citing a 2019 city audit that highlighted pay disparities impacting Black employees within the city.
In March, Avila assured that the rationale for Dargan’s termination would be presented in the city’s formal response to his complaint. However, the city has yet to address those claims in any legal filings.
Following a closed-door City Council briefing and negotiations that took place after April 21, Conger reported that the City Attorney’s Office had prepared a settlement agreement, which both Dargan and Conger signed. Yet, without City Council approval, the agreement cannot be finalized.
Conger criticized the process, arguing that it has become unnecessarily complicated and financially burdensome for the city. He remarked, “Dargan wanted to be paid a severance which was preset at three months’ pay. We probably got five months’ pay for the trouble that they put us through.”
Conger concluded that this situation exemplifies the inefficiency prevalent in the city’s operations.
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