City Manager Departures Cost Orange County Taxpayers Millions
In a troubling trend for taxpayers, several cities in Orange County have engaged in costly severance agreements with city managers, resulting in significant financial burdens. One notable case involves Shohreh Dupuis, who departed as city manager of Laguna Beach two years ago amidst internal disputes and a potential harassment lawsuit. In total, taxpayers paid Dupuis approximately $450,000 to step down, which included nine months’ salary, health insurance, and legal fees.
Since 2020, at least 12 municipalities in Orange County have opted to part ways with top officials before their contracts were fulfilled. The trend reflects a broader pattern of city governments paying severance packages—typically ranging from six months to a year of salary—to executives involved in disputes, often resulting in additional costs for legal settlements related to workplace harassment or toxic conditions.
Political Shifts and Rising Tensions
The recent increase in city manager turnover has raised eyebrows among veteran officials. More than a third of Orange County’s municipalities have either dismissed or negotiated buyouts with their top executives in the last five years, a situation deemed unusual in both frequency and financial impact. The political landscape in the area has shifted from strongly conservative to a more balanced political split, fostering an environment of heightened conflict among elected officials.
According to Shauna Clark, a former city manager and current public administration instructor at Cal State Northridge, newly elected councils often seek to replace existing management with individuals who align more closely with their philosophies. “When a new council is elected, they want to change priorities and hire someone they feel matches their vision,” Clark stated. This desire for change can lead to destabilizing the government structure, diverting attention away from essential community improvements.
While many local governments have publicly disclosed settlement terms, others remain opaque, leaving taxpayers in the dark about how their money is being spent. In Tustin, for instance, officials confirmed a severance agreement with City Manager Matt West, who left his position in late October 2023, but did not disclose specific financial details. This lack of transparency has prompted criticism from residents, such as former Tustin resident Stan Madden, who expressed concern over the use of public funds without adequate public input.
Legal Complaints and Financial Implications
Harassment allegations have become increasingly common in municipal workplaces. Barbara Salvini, the human resources director for Newport Beach, filed a lawsuit in November 2022 that accused the city of fostering a hostile work environment following her whistleblower complaint against City Manager Grace Leung. Although city officials denied the allegations, Leung reached a severance agreement valued at over $370,000, illustrating how such conflicts can lead to costly settlements.
A survey conducted by the National League of Cities in 2024 indicated that approximately three in four city workers have experienced some form of harassment. As younger city managers enter the workforce, perceptions of what constitutes a hostile work environment are evolving, leading to more individuals pursuing legal action. Clark noted that many workers now feel empowered to assert their rights, influencing settlement negotiations and often prompting cities to avoid court hearings in favor of quiet settlements.
In a system where severance packages are often negotiated in private, the implications for taxpayers can be significant. The culture of silence surrounding these agreements can serve to protect the reputations of those involved, rather than prioritizing transparency and accountability. Clark suggested that this practice can hinder the recruitment of talent for city management positions, as many potential candidates are wary of the political instability that can accompany such roles.
As the trend of severance agreements continues, taxpayers in Orange County may find themselves footing the bill for decisions made behind closed doors, raising concerns about the long-term impact on local governance and community resources. The combination of political polarization, high-profile exits, and increasing legal complaints is reshaping the landscape of city management in ways that could affect residents for years to come.
