$231,000 City Settlement Ends Yorba Linda’s Simonian Saga

The Yorba Linda City Council voted 3 to 2 Tuesday to pay a $231,000 settlement to City Manager Arthur C. Simonian, putting an end to the lawsuits each side has filed and ending the longtime chief executive’s employment.

The city had sued Simonian to recover as much as $500,000 in bonuses he allegedly paid himself without proper authorization. Simonian has denied wrongdoing and was suing to get his job back.

According to the settlement, Simonian will waive sick days and vacation he has accumulated since September, when he was placed on paid administrative leave. He will also resign from his post as city manager.

The settlement requires both parties to drop their lawsuits against each other. Simonian will also withdraw his lawsuit against Councilman John M. Gullixson that alleged the councilman violated his right to privacy by giving reporters documents related to the city’s investigation of the city manager.

Reaching a settlement was a “brutal process,” but it was the only way to save the city money, said Mayor Ken Ryan, who was elected to the council in March to fill the seat left vacant with Gene Wisner’s resignation in September.

“This has not been easy,” Ryan said. “One side of the council thinks this is a raw deal and another thinks it’s a sweetheart deal. I think the truth is somewhere in the middle.”

Before Ryan’s arrival, the four-member council was evenly divided on the Simonian issue, with Councilmen Mark Schwing and Henry W. Wedaa supporting a settlement. Gullixson and Councilwoman Barbara W. Kiley opposed a settlement and urged the city to pursue the legal battle for justice’s sake.

“The decision does not make business sense,” Gullixson said after Tuesday night’s vote. “I’m not satisfied with this agreement because I feel responsible for public funds.”

Kiley said she still believes that the city could have won in court, “and now we have no hope of recovering any money.”

Craig Scott, Simonian’s lawyer, said that, while both sides had to give up something, “ultimately we have a deal that’s good for Mr. Simonian, the city and the citizens.”