Salem council president sought city manager’s resignation

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Salem City Manager Keith Stahley resigned Sunday, saying in a letter he was requested to do so by Salem City Council President Linda Nishioka in an action backed by the majority of councilors.

In a resignation letter obtained by Salem Reporter, Stahley said he met with Nishioka on Friday, Feb. 7 “where she represented that she was the duly authorized representative of the Mayor and a majority of the city council and requested I tender my resignation.”

READ IT: Keith Stahley’s resignation letter

Nishioka declined to answer questions Tuesday about why she approached Stahley or what conversations she had with other councilors and Mayor Julie Hoy leading up to the resignation. 

Councilors had a closed-door discussion Monday night ahead of the public vote to accept his resignation under a section of state law that allows them to meet privately to “consider the dismissal or discipline of an employee.”

“I am unable to comment on discussions that took place in executive session, as those conversations are confidential under state law. I appreciate your understanding,” Nishioka told Salem Reporter via text message. “Our priority remains serving the best interests of our residents, and we will work diligently to restore trust in our processes.”

Stahley will be paid his accrued vacation time and eight months of severance under his contract, a city statement Tuesday said. The payout is worth nearly $256,000, close to a full year of Stahley’s $270,000 salary.

“Every day has been a challenge,” Stahley said in his letter to the mayor and councilors. “We made some real progress, we had some fun and I am proud of the work we have done together.”

His departure comes after a performance audit released last month faulted Stahley’s leadership, saying he often made decisions using unclear criteria without informing or consulting affected city employees and failed to effectively delegate or manage workloads for the people reporting to him. 

The city finance committee, which includes Nishioka and Hoy, was due to discuss the audit in an upcoming meeting.

Hoy cited the audit report ahead of a council vote Monday to accept Stahley’s resignation, and told Salem Reporter following the meeting that she did not approach Stahley about resigning.

Hoy did not respond to a phone call and questions emailed Tuesday seeking more detail on Stahley’s ouster. 

City Councilors Paul Tigan, Micki Varney and Vanessa Nordyke declined to comment, while Councilors Deanna Gwyn and Irvin Brown didn’t respond to emails and phone calls. 

City Councilor Shane Matthews said he and the mayor recently spoke about the city’s leadership structure and audit of the city manager’s office. 

“We talked about it quite a bit, about the audit specifically … I was concerned when we had the audit originally and so we discussed the merits of the audit,” Matthews said. “I remember her specifically saying, ‘I can’t count votes,’ and I remember those being her exact words during our meeting. So, I didn’t get that impression at all. I think that she was, at the time, exploring where everything was looking.” 

Matthews said he did not indicate to her whether he would support Stahley’s resignation. 

“She was really clear that she wasn’t counting votes … I think Councilor Nishioka got the impression, and I don’t know the outcome of how exactly, but I think she got the impression that the council was supportive of a possible action in some way. So, I think she represented the council, she went to Keith and she let him know.”

Under the terms of his 2022 contract, Stahley is eligible for a severance payment if he resigns following a request from a majority of councilors, or because of a reduction in salary or change in duties. He would also receive severance if fired by the council, unless he was fired for misconduct or after being accused of a crime. According to Stahley’s resignation letter, which councilors accepted, he will be on paid administrative leave until March 22. He will then use his accrued vacation time to remain on the city payroll until May 10, and then be paid eight months of severance.

Stahley’s office at City Hall was vacant on Monday with his name plate gone from the door.

A city statement Tuesday said city officials will determine how to replace Stahley and that in the meantime Deputy City Manager Krishna Namburi will act as city manager until the city council appoints an interim manager.

“This was a hard decision,” Hoy said in the city statement. “I’m looking forward to the opportunity for healing and coming together as we find the most effective path forward for our Council and our community.”

Managing Editor Rachel Alexander contributed reporting.

Contact reporter Joe Siess: [email protected] or 503-335-7790. 

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