Attorney Michael Conger announced that a tentative settlement has been reached between the city and Eric Dargan, the city’s former Chief Operating Officer (COO), which is valued at $146,000.
This proposed amount exceeds the three months’ severance Dargan initially sought after his abrupt dismissal in February.
Conger indicated that Dargan had originally requested about $115,000, which included benefits, and noted that had the city honored the severance outlined in the employment offer letter signed by both Dargan and Mayor Todd Gloria, there would have been no need for a lawsuit.
The City Attorney’s Office has declined to comment on the tentative settlement, citing the ongoing nature of the litigation.
Before this settlement can be finalized, the City Council will need to approve it in an upcoming open session.
The vote is expected to occur a few months after Mayor Gloria’s announcement of Dargan’s departure.
Initially, the mayor characterized the decision to eliminate the COO position as necessary to address a significant $258 million city budget deficit.
However, Dargan subsequently filed a discrimination lawsuit in late March, contending that the mayor had not upheld a pledge to provide him with the severance compensation.
Following this legal action, Gloria’s office changed its narrative; his Chief of Staff, Paola Avila, later claimed that Dargan was terminated for cause.
Dargan’s exit from City Hall had already been the subject of criticism from certain councilmembers and the leader of the city’s largest union, amidst discussions regarding the management of the city’s budget deficit.
There were even rumors regarding Dargan falling asleep during critical meetings.
Despite these claims, Gloria had previously described Dargan as a “good man” and stated that the elimination of the COO position was purely a financial decision.
The subsequent lawsuit filed by Dargan included allegations of discrimination, an aspect further complicating the city’s response to the matter.
Conger highlighted the absence of a formal performance review during Dargan’s tenure, further asserting that the city invented reasons for his termination.
He pointed out that a 2019 city audit had already reported pay disparities impacting Black city employees.
In March, Avila suggested that the justification for Dargan’s termination would be clarified in the city’s response to his legal complaint.
However, as of now, the city has not formally responded to those allegations in legal documents.
In the aftermath of an April 21 closed-door briefing and negotiations involving the City Council, Conger revealed that the City Attorney’s Office had sent a settlement agreement for Dargan’s approval, which he subsequently signed.
This agreement remains contingent upon the City Council’s vote for finalization.
Conger voiced his concern over the inefficiencies and costs incurred during this process, stating, “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.
Another example of the city doing business in a completely inefficient way.”
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