Jun 25, 2008

Former EPA manager nets $375,000

City exonerated in suit

By Banks Albach / Daily News Staff Writer

East Palo Alto's former planning manager Maria Banico accepted a $375,000 settlement from the city last week after 15 months of negotiations and litigation.

Banico was fired in March 2007 after she refused to sign an approval slip for a 29-unit project at 104 Maple Lane that she claims had a faulty building permit and was never inspected. Former Associate Planner Rebecca Shapiro also refused to sign the slip and received a written warning.

Banico filed a claim with the city and, later, a wrongful termination lawsuit in San Mateo County Superior Court. She was also alleging gender discrimination and was requesting compensation on several points. She did not sue for a specific amount and was waiting for a possible jury trial.

The settlement comes after one court mandated settlement conference and exonerates the city from all of Banico's claims. It also represents about three years of her former salary, Banico said Tuesday.

"Basically, I'm just glad it's behind me," she said. "This was never about money, it was about doing what's right."

In Banico's termination letter, however, City Manager Alvin James disagreed with her allegations and said her behavior was jeopardizing the city.

"I believe that recent conduct on your part compromises city council adopted polices," James wrote. "I have concluded that ... your conduct not only adversely affected your performance, but also appears to have influenced other staff members."

Assistant City Attorney Rafael Alvarado said the city council adopted a settlement agreement last Tuesday in closed session in order to avoid expensive litigation and mounting legal fees for the city's outside counsel. Besides the settlement, which must be payed within 60 days, neither Alvarado or James could recollect how much the city had spent so far on Banico's suit.

The agreement came just days before the city council was poised to adopt its 2008-2009 budget with a projected $1.5 million windfall that will go straight into a city reserve fund, the first of its kind since East Palo Alto was incorporated in 1983. The payout, James said, will not affect the budget because city staff had already set aside funds in a "nondepartmental" account especially for settlements and legal fees.

Since Banico's termination, former Senior Planner Brad Tarr has stepped in as acting planning manager. The city has yet to hire a replacement and is still considering whether to fill Tarr's former position or recruit a new manager.



E-mail Banks Albach at balbach@dailynewsgroup.com.