Public Works Head Demands Benefits Back in Yorba Linda

Yorba Linda City Engineer and Public Works Director Roy Stephenson has demanded that the city return about $25,000 in benefits, which the City Council revoked early last month in an action he called “improper.”

But Mayor John M. Gullixson said Friday that the council had never authorized the benefits, which consist of a car allowance, deferred compensation and a life insurance policy. Stephenson is part of the cadre of top officials who, along with former City Manager Arthur C. Simonian, received thousands of dollars in bonuses and other benefits that the council says were never approved.

Stephenson contends, however, that the way the council discussed and took action against his compensation package was a violation of government code, according to a letter sent to the city Thursday by Stephenson’s attorney, Craig Scott. Scott also represents Simonian.

Stephenson said Friday that he hopes to resolve the issue out of court. “I’m giving [the council] the opportunity to correct it,” he said. “If not, then we’ll take the next step.”

Gullixson said there is not much to discuss about the benefits. The council voted Sept. 7 to halt payment for certain benefits, and council members are expected to decide by the end of the year whether to get rid of the controversial bonus program. If bonuses are killed, Stephenson’s total compensation could be cut by an additional $15,000.

“He should expect that if we learn of a misappropriation of public funds, then we will deal with it,” Gullixson said.

The allegedly unauthorized benefits came to the council’s attention as a result of a three-week investigation by a team of special accountants and attorneys into allegations that Simonian had been doling out generous cash bonuses to his top aides for years.

Simonian has denied the council’s accusations and last month filed a wrongful termination lawsuit against the city, alleging that the council violated the Brown Act when it suspended and then fired him.

Henry Kraft, the council’s special attorney, filed court documents Friday defending the council’s actions as in compliance with the government code.

“It is our position that [Simonian’s lawsuit] has absolutely no merit,” Kraft said. “The City Council had the absolute right to terminate Mr. Simonian without cause.”